300 Beaver Valley Mall Blvd. | Monaca (Pittsburgh MSA), PA ... · The $6 billion dollar ethane...

300 Beaver Valley Mall Blvd. | Monaca (Pittsburgh MSA), PAOffering Memorandum

ACTUAL LOCATION

SINGLE TENANT RURAL KING | NEW TEN-YEAR LEASE | BELOW REPLACEMENT COST

MARKETING ADVISOR DEBT ADVISORMARC MANDEL CLAUDIA STEEB

Managing Director Managing Director

484.532.4212 412.222.2053

[email protected] [email protected]

Investment Summary 04

Tenant 06

Financial Analysis 08

Location 10

Market 13

Contacts 15

Jones Lang LaSalle Americas, Inc. or its state-licensed affiliate (“JLL”) has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than JLL, and neither Owner nor JLL, nor their respective equity holders, officers, directors, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and JLL, its officers, directors, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.

CLICK TO VIEW

PROPERTY VIDEO

mailto:[email protected]


https://vimeo.com/389995576




© 2019 Jones Lang LaSalle IP, Inc. All rights reserved.

Rural King | Monaca, PA

Investment Summary


© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. 4

JLL is pleased to exclusively offer the opportunity to acquire the fee simple interest in a single tenant, net leased property leased to Rural King (the “Property”) in Monaca, PA. Rural King executed a ten (10) year deal in 2017, along with eight (8), five (5) year options. All options have roughly ten percent (10%) increases in the beginning of each period. Rural King is currently paying an attractive low rent per square foot, creating long term upside on future rents. The Property is situated along Pennsylvania Route 18, making it easily accessible and a retail destination to the growing working population of Monaca.

Just over two miles from the Rural King, is the Shell Cracker Plant, which is well under construction. As the Shell cracker plant nears ‘peak construction’, more than 6,000 workers converge to the site, bringing additional consumers to the nearby Property. According to Kenneth Humphreys, a senior advisor at the U.S. Department of Energy’s Office of Fossil Energy, the site will be monumental in creating jobs in the area. He’s quoted as saying “Over the coming decade, it’s very possible to realize 100,00 plus jobs.”

Rural King benefits from the strong retailers in the Beaver Valley Mall and those that surround the Property. The Beaver Valley Mall features anchor tenants such as Boscov’s, Dick’s Sporting Goods, Planet Fitness and JCPenney. In addition, other surrounding national retailers such as Burger King, Arby’s, Wendy’s, ALDI, Target, Marshalls, Ross Dress for Less, Panera and Books-A-Million are able to attract customers from an expansive trade area. With nearly 75 stores, coupled with its immediate access to Route 18, the Property is able to benefit from more than 69,000 residents within a 5-mile radius who earn average household incomes of over $72,000.

Rural King, headquartered in, Mattoon, Illinois, is a farm supply store that currently operates 116 stores in thirteen states. The stores sell a robust selection of items work clothing and work boots, equine and pet supplies, hunting equipment, supplies, firearms, tractor/trailers as well as their parts and accessories, lawn and garden supplies, sprinkler/irrigation parts, power tools, fencing, welding and pump supplies.

PROPERTY SUMMARY

Address 300 Beaver Valley Mall Boulevard, Monaca, PA 15061

Price $3,695,000

Cap Rate 8.00%

NOI $295,677

Lease Type Fee Simple: NN

Building Size 190,759 SF

Parcel Size 7.04 Acres

Year Built 1991

Tenant RK Holdings, LLP

Remaining Term 7.5+ Years (Expiration 10/31/2027)Renewal Options Eight (8), Five (5) Year Options

5

The Shell Cracker Plant, a plastic-producing factory located just 2 miles away on a 386-acre property, is scheduled to open in the early part of 2020 and provide more than 600 permanent jobs

The Beaver Valley Mall, which is home to roughly 70 stores, is situated along Route 18 in the dominant retail trade area in Monaca, PA – there is more than 17,000 vehicles that pass the shopping mall daily

There are over 4,400 college students within 12 miles of Monaca. Penn State Beaver is located just 2 miles from the Beaver Valley Mall on a beautiful 105-acre campus; the current enrollment is nearly 700 students

A surplus of shopping destinations surrounds the Beaver Valley Mall – Township Marketplace and Stone Quarry Commons are just minutes away and are home to nationally recognized retailers such as Lowe’s, Target, Kohl’s, Marshalls, and ROSS Dress For Less

Monaca, PA is just 30 miles from Pittsburgh, PA – a city that contains an MSA of more than 2.3 million people and was ranked #114 in the 2019 Forbes list: Best Places for Business and Careers

Rural King is currently paying $1.55 per square foot, which allows the 190,000 SF building to be offered well below $4 million, creating flexibility and rental upside to the new owner



Tenant



Tenant Overview

Rural King, headquartered in Mattoon, Illinois, is a farm supply store that currently operates 116 stores in thirteen states. The original owners, Kermit Speer and Keith Beaird, started in a 7,200 square foot building in 1960. Three years later an addition was made then, a warehouse was built and then a second addition was added. Rural King continued to grow to 210,000 square feet in 1999. Then in 2003-2010 three warehouse additions added close to 100,000 square feet each time.

The stores sell a robust selection of items work clothing and work boots, equine and pet supplies, hunting equipment, supplies, firearms, tractor/trailers as well as their parts and accessories, lawn and garden supplies, sprinkler/irrigation parts, power tools, fencing, welding and pump supplies. During the holiday season specifically, Rural King sells toys and small gifts.

In 2015, Rural King announced that they had reached, for the first time, over $1 billion in total sales. Rural King, in November of 2017, bought the Cross County Mall and recently relocated their headquarters to a portion of the 338,000 square foot, Mattoon, Illinois mall. The former headquarters will continue to serve as a distribution center.

Company Overview

Ownership: Private

# of Locations: 116

Founded: 1960

Headquarters: Mattoon, IL

Company Website: ruralking.com



Financial Analysis



LEASE DETAILAddress 300 Beaver Valley Mall Blvd. Monaca, PA 15061

Tenant RK Holdings, LLPParcel Size 7.04 Acres

Building Size 190,759 SFYear Built 1991

Annual Rent $295,677Rent / SF $1.55

Lease Type Fee Simple: NNRoof & Structure Landlord Responsibility

Rent Commencement 11/1/2017Lease Expiration 10/31/2027

Lease Term Remaining 7.5+ YearsRemaining Options Eight (8), Five (5) Year Options

RENT SCHEDULE

Lease Abstract

Maintenance & Repairs

Tenant shall maintain the area described as "Tenant Maintenance Area" in the Lease; as well keep the Demised Premises in good condition and repair

InsuranceTenant agrees to carry public liability insurance covering the Demised Premises, naming Landlord as insured, subject to an amount specified in the Lease

TaxesIf the Demised Premises is located on any such Outlot and such Outlot is separately assessed for tax purposes, then Tenant shall pay, if it solely occupies the Outlot, all the Real Estate Taxes assessed.

Utilities

Tenant shall pay for all utilities provided to the Demised Premises, including but not limited to water, sewer, gas, electricity, fuel, light, heat, power, telephone, cable, trash and garbage removal, as well as the cost of maintaining the utility lines serving the Demised Premises.

TENANT RESPONSIBILITY DETAIL

$3,695,000Asking Price

8.00%Cap Rate

Description Dates Annual Rent % Increase

Current Term (Years 1-10) 11/1/2017 - 10/31/2027 $295,677 Option Term 1 (Years 11-15) 11/1/2027 - 10/31/2032 $326,198 10.32%Option Term 2 (Years 16-20) 11/1/2032 - 10/31/2037 $358,627 9.94%Option Term 3 (Years 21-25) 11/1/2037 - 10/31/2042 $394,871 10.11%

Option Term 4 (Years 26-30) 11/1/2042 - 10/31/2047 $434,931 10.14%

Option Term 5 (Years 31-35) 11/1/2047 - 10/31/2052 $478,805 10.09%Option Term 6 (Years 36-40) 11/1/2052 - 10/31/2057 $526,495 9.96%Option Term 7 (Years 41-45) 11/1/2057 - 10/31/2062 $579,907 10.14%Option Term 8 (Years 46-50) 11/1/2062 - 10/31/2067 $637,135 9.87%

LANDLORD RESPONSIBILITY DETAIL

Maintenance & Repairs

Landlord shall be responsible for the maintenance and repair of all structural, roof, and exterior building portions of the Demised Premises



Location

Rural King | Monaca, PALocation Overview – Surrounding Retail & Amenities

11


12

Location Overview

12



Market



Market Overview

Monaca, PennsylvaniaLocated approximately 28 miles from downtown Pittsburgh, Monaca enjoys superior access to major highways such as I-376, The Pennsylvania Turnpike, and I-79, which connects the immediate area to Pittsburgh and the surrounding states of Ohio and West Virginia and is within 23 miles of the Pittsburgh International Airport.

Multiple colleges surround Monaca, helping bring more consumers to the area. There are over 4,400 college students within 12 miles of Monaca. Penn State Beaver, just over two miles away with a 100-acre campus located in Center Township, has a current campus enrollment of approximately 675 students. The campus has housing for more than 200 students. Geneva College, a private college close to 20 minutes away, has over 1,305 students enrolled. The Community College of Beaver County boasts another 2,370 students in the Beaver County area.

Monaca is about to become home to Shell Oil’s newest domestic project, the Shell Cracker Plant, a plastic-producing factory located just 2 miles away on a 386-acre property. The $6 billion dollar ethane cracker plant, scheduled to open in the beginning of 2020, produced 6,000 construction jobs on the site and will produce 600 permanent jobs in the short term, while having the capability to create close to 100,000 jobs over the next decade according to the U.S. Department of Energy’s Office of Fossil Energy. This will be the first cracker plant in the U.S. since 2000 and will be the first ever built outside of the Gulf Region.

More recent development includes Columbia Gas operations and training center, 80 townhomes and 182 apartment units under construction, as well as a 32,000 square foot Allegheny Health Network and 59,000 square foot Heritage Valley Health System facility, both constructed in 2019.

Demographics

(Environics Analytics)

3-mile radius

5-mile Radius

10-mile radius

POPULATION2010 Census 30,867 65,031 171,7842020 Estimate 29,606 62,244 167,5872025 Projection 29,108 61,177 165,848ESTIMATED HH INCOMEAverage HH Income $75,260 $72,189 $80,730Median HH Income $57,769 $56,352 $62,158HOUSEHOLDS2010 Census 13,224 27,497 71,5142020 Estimate 12,967 26,927 71,2502025 Projection 12,841 26,663 70,981

https://www.post-gazette.com/business/powersource/2019/06/20/petrochemical-Appalachian-Shell-cracker-promoter-Washington-jobs-DOE-Ohio/stories/201906200133

Rural King | Monaca, PAACTUAL LOCATION

MARKETING ADVISOR

300 Beaver Valley Mall Blvd.Monaca, PA

DEBT ADVISOR

MARC MANDEL CLAUDIA STEEB

Managing Director Managing Director

484.532.4212 412.222.2053

[email protected] [email protected]



300 Beaver Valley Mall Blvd. | Monaca (Pittsburgh MSA), PA ... · The $6 billion dollar ethane...

Documents

Transcript of 300 Beaver Valley Mall Blvd. | Monaca (Pittsburgh MSA), PA ... · The $6 billion dollar ethane...