Ground Lease - nnnpro.com

OFFERING MEMORANDUM 2240 Marietta Blvd NWAtlanta, GA 30318

Atlanta, GAGround Lease

Actual Site

Marcus & Millichap hereby advises all prospective purchasers ofNet Leased property as follows:

The information contained in this Marketing Brochure has beenobtained from sources we believe to be reliable. However,Marcus & Millichap has not and will not verify any of thisinformation, nor has Marcus & Millichap conducted anyinvestigation regarding these matters. Marcus & Millichap makesno guarantee, warranty or representation whatsoever about theaccuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’sresponsibility to independently confirm the accuracy andcompleteness of all material information before completing anypurchase. This Marketing Brochure is not a substitute for yourthorough due diligence investigation of this investmentopportunity. Marcus & Millichap expressly denies any obligationto conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in thisMarketing Brochure are for example only and do not representthe current or future performance of this property. The value of anet leased property to you depends on factors that should beevaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisorsshould conduct a careful, independent investigation of any netleased property to determine to your satisfaction with thesuitability of the property for your needs.

Like all real estate investments, this investment carries significantrisks. Buyer and Buyer’s legal and financial advisors must requestand carefully review all legal and financial documents related tothe property and tenant. While the tenant’s past performance atthis or other locations is an important consideration, it is not aguarantee of future success. Similarly, the lease rate for some

properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projectedsales with little or no record of actual performance, orcomparable rents for the area. Returns are not guaranteed; thetenant and any guarantors may fail to pay the lease rent orproperty taxes, or may fail to comply with other material terms ofthe lease; cash flow may be interrupted in part or in whole due tomarket, economic, environmental or other conditions. Regardlessof tenant history and lease guarantees, Buyer is responsible forconducting his/her own investigation of all matters affecting theintrinsic value of the property and the value of any long-termlease, including the likelihood of locating a replacement tenant ifthe current tenant should default or abandon the property, andthe lease terms that Buyer may be able to negotiate with apotential replacement tenant considering the location of theproperty, and Buyer’s legal ability to make alternate use of theproperty.By accepting this Marketing Brochure you agree to releaseMarcus & Millichap Real Estate Investment Services and hold itharmless from any kind of claim, cost, expense, or liability arisingout of your investigation and/or purchase of this net leasedproperty.

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure isproprietary and strictly confidential. It is intended to be reviewedonly by the party receiving it from Marcus & Millichap and shouldnot be made available to any other person or entity without thewritten consent of Marcus & Millichap. This Marketing Brochurehas been prepared to provide summary, unverified informationto prospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The informationcontained herein is not a substitute for a thorough due diligenceinvestigation. Marcus & Millichap has not made any investigation,and makes no warranty or representation, with respect to the

income or expenses for the subject property, the future projectedfinancial performance of the property, the size and squarefootage of the property and improvements, the presence orabsence of contaminating substances, PCB’s or asbestos, thecompliance with State and Federal regulations, the physicalcondition of the improvements thereon, or the financialcondition or business prospects of any tenant, or any tenant’splans or intentions to continue its occupancy of the subjectproperty. The information contained in this Marketing Brochurehas been obtained from sources we believe to be reliable;however, Marcus & Millichap has not verified, and will not verify,any of the information contained herein, nor has Marcus &Millichap conducted any investigation regarding these mattersand makes no warranty or representation whatsoever regardingthe accuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verify all ofthe information set forth herein.

NON-ENDORSEMENT NOTICE

Marcus & Millichap Real Estate Investment Services, Inc.(“M&M”) is not affiliated with, sponsored by, or endorsed by anycommercial tenant or lessee identified in this marketing package.The presence of any corporation’s logo or name is not intendedto indicate or imply affiliation with, or sponsorship orendorsement by, said corporation of M&M, its affiliates orsubsidiaries, or any agent, product, service, or commercial listingof M&M, and is solely included for the purpose of providingtenant lessee information about this listing to prospectivecustomers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASECONSULT YOUR MARCUS & MILLICHAP AGENT FOR MOREDETAILS.

Confidentiality and Disclaimer

Table of ContentsInvestment Highlights 4

Financial Analysis 5

Tenant Overview 6

Property Photos 7-10

Surrounding Area 11-12

Location Overview 13

Maps 14-15

Demographics 16Market Overview 17

Investment Highlights

About the Investment Absolute 20 Year Triple-Net (NNN) Ground Lease Brand New 2020 Construction 10% Increases Every Five Years Including Through Option Periods Four (4), Five (5)-Year Tenant Renewal Options Corporate Guarantee (NYSE: JPM) | S&P: A+

About the Location Dense Retail Corridor | Outparcel to the New Upper Westside Atlanta

Development | 90,000 SF Restaurants, Retail, and Office | 20 Townhomes Robust Demographics | Population Exceeds 239,547 Individuals Within a Five-

Mile Radius Exceptional Real Estate Fundamentals | 6 Miles from Downtown Atlanta | 3 Miles

from Microsoft’s New Quarry Yards 90 Acre Campus Development Strong Traffic Counts | Marietta Blvd | Average 26,400 Vehicles Per Day

About the Tenant/Brand JP Morgan Chase currently sits as the largest financial institution in the United

States with approximately $3.386 trillion in assets. It is one of America's Big Four banks, along with Bank of America, Citigroup, and

Wells Fargo Investment and corporate bank arm holds US$31 trillion in assets under custody 4,700+ Bank Branches S&P A+ Credit Rating

4Atlanta, GA

PRICE: $4,750,000| CAP: 4.00% | RENT: $190,000

Representative Photo

Actual Site

Property DescriptionProperty Chase Bank Ground LeaseProperty Address 2240 Marietta Blvd NWCity, State, ZIP Atlanta, GA 30318 Year Built / Renovated 2020Building Size 2,848 SFLot Size 0.86 AcresType of Ownership NNN Ground Lease

The OfferingAnnual Rent $190,000CAP Rate 4.00%Purchase Price $4,750,000

Lease SummaryProperty Type Net Leased BankTenant / Guarantor JP Morgan ChaseOwnership Type Public (NYSE: JPM)Original Lease Term 20 YearsRent Commencement June 1, 2020Lease Expiration May 31, 2040Tenant Termination Right One-Time After Expiration of 15th Lease YearLease Term Remaining 19+ YearsLease Type Absolute Triple-Net (NNN) Ground LeaseRoof & Structure Tenant ResponsibleRental Increases 10% Every Five YearsOptions to Renew Four (4), Five (5)-Year Options

Financial Analysis

5

Rent ScheduleLease Year(s) Annual Rent Monthly Rent Rent Escalation (%)

Year 1 $190,000 $15,833 -Year 2 $190,000 $15,833 -Year 3 $190,000 $15,833 -Year 4 $190,000 $15,833 -Year 5 $190,000 $15,833 -Year 6 $209,000 $17,417 10.00%Year 7 $209,000 $17,417 -Year 8 $209,000 $17,417 -Year 9 $209,000 $17,417 -

Year 10 $209,000 $17,417 -Year 11 $229,900 $19,158 10.00%Year 12 $229,900 $19,158 -Year 13 $229,900 $19,158 -Year 14 $229,900 $19,158 -Year 15 $229,900 $19,158 -Year 16 $252,890 $21,074 10.00%Year 17 $252,890 $21,074 -Year 18 $252,890 $21,074 -Year 19 $252,890 $21,074 -Year 20 $252,890 $21,074 -

Atlanta, GA

PRICE: $4,750,000| CAP: 4.00% | RENT: $190,000

INVESTMENT SUMMARYMarcus & Millichap is pleased to present the exclusive listing for a brand-newChase Bank located at 2240 Marietta Blvd NW in Atlanta, GA. The newlyconstructed site consists of roughly 3,028 rentable square feet of building spaceon estimated 0.86-acre parcel of land, and features a drive thru. The investmentproperty is subject to a brand new 20-year triple-net (NNN) ground lease with 4,5-year tenant renewal options.

TENANT OVERVIEW

6Atlanta, GA

J.P. Morgan Chase Bank, N.A., doing business as Chase Bank, is anational bank headquartered in Manhattan, New York City, thatconstitutes the consumer and commercial banking subsidiary of the U.S.multinational banking and financial services holding company, JPMorganChase & Co. The bank was known as Chase Manhattan Bank until itmerged with J.P. Morgan & Co. in 2000. Chase Manhattan Bank wasformed by the merger of the Chase National Bank and The ManhattanCompany in 1955. The bank has been headquartered in Columbus, Ohiosince its merger with Bank One Corporation in 2004. The bank acquiredthe deposits and most assets of The Washington Mutual.

Chase offers more than 4,700 branches and 16,000 ATMs nationwide.JPMorgan Chase & Co. has 250,000+ employees and operates in morethan 100 countries. JP Morgan Chase currently sits as the largestfinancial institution in the United States with approximately $3.386trillion in assets.

JPMorgan Chase, through its Chase subsidiary, is one of the Big Fourbanks of the United States.

Corporate InformationHeadquarters New York, NY

Ticker NYSE: JPM

Number of Locations 4,700+ Branches

Total Assets $3.386 Trillion

Property Photos

7

Property Address: 2240 Marietta Blvd NW, Atlanta, GA 30318

Atlanta, GA

Property Photos

8


Atlanta, GA

The WOODALL

Property Photos

9


Atlanta, GA

Property Photos

10


Atlanta, GA

DOWNTOWN ATLANTA6 Miles from Subject Property

Quarry Yards Development 3 Miles from Subject Property

Surrounding Area

11


Atlanta, GA

Wests id e Vil lag e

WALKABILITY

Walkable f r o m 1700+ New H o m e s

D u p o n t C o m m o n s 350 H o m e s

J o h n W i e l a n d 220 T o w n h o m e s

Publix + 345 A p a r t m en t s

50C o n d o s

67APTS

Ash f o r d 300 APTS

300APTS

345APTS

Adams C r o s s i n g 250 H o m e s

PATH P r o j e c t

W a l k i n g P a t h s

C i ty PATHS

P r o p o s e d

New & U n d e r C o n s t r u c t i o n

R e c e n t l y R e n o v a t e d

220 Townhomes, 314 Apartments& C o m m e r c i a l U N D E R

C O N S T R U C T I O N

0 .50.25

miles

Surrounding Area

12


Atlanta, GA

Bolton Town CenterMixed Use Development

The subject investment property is situated on Marietta Blvd, which boastsaverage daily traffic counts of 26,400 vehicles. This Chase bank benefits fromits close proximity to downtown Atlanta. There are 58,411 individualsresiding within a three-mile radius of the property and 239,547 individualswithin a five-mile radius of the property.

The subject property benefits from being well-positioned across the streetfrom the new Westside Village Development. Westside Village @ MooresMill is a new development focused on making life easier for the busy city-dwelling family looking for convenience in one destination. An urbanitesideal lifestyle center designed with family, wellness and proximity in mind.Providing fine amenities like Fitness, Yoga, Juice Bar, Coffee/Café, Salon,Medical/Dental, Daycare/Early Learning Academy, Co-working space,Family-friendly Chef-driven Restaurants, and specialty grocery.

The City of Atlanta shows a strong commitment to improving infrastructureto accommodate increasing traffic and the imminently burgeoning retaildistrict. Their recent investments include the Moores Mill Extension acrossMarietta Boulevard and new roadway from the over 800 Brock Built homesjust south of our project – connecting the neighborhood directly into theretail core at Marietta Blvd, Moores Mill and Coronet Way. Additionally, thePATH Foundation has invested in significant improvements in the immediatearea – connecting the neighborhoods directly into the commercial corridors,including the recently announced Silver Comet-to-Beltline connection. Thearea serves as an economic hub for the Southeast. Many of the country’slargest corporations have selected the Atlanta metro for their headquarters.Atlanta is favored by businesses for its low corporate taxes, pro-businessclimate, and access to national and global markets. Among the numerouscorporate headquarters are Home Depot, Aflac and Turner Broadcast Co.Other major firms include NCR, Mercedes-Benz, Porsche and State Farm.

13

Location Overview

ADTC: 197,032


ADTC: 26,400

Atlanta, GA

14

Property Address: 2240 Marietta Blvd NW, Atlanta, GA 30318Local Map

Atlanta, GA

15

Property Address: 2240 Marietta Blvd NW, Atlanta, GA 30318Regional Map

GEORGIA

Atlanta, GA

Demographics

16


Atlanta, GA

Atlanta metro encompasses 29 counties in northwestern Georgia. With fewnatural barriers to limit development, tremendous population growth over the past decadeexpanded the metro’s borders and the region now has a population of roughly 5.9 millionpeople. Over the next five years the region is expected to add approximately 524,000residents. Meanwhile, Mercedes-Benz Stadium has been a catalyst for redevelopment inthe urban core of Atlanta. New projects in the downtown and midtown sections of the citypresent a vast array of housing, entertainment and retail opportunities that are enticingresidents back into the city and providing options for people moving to the metro.

The metro features a surging business environment and modern infrastructure whileproviding entertainment and attractions. Affordable housing in the outer perimeters haslowered the average cost of living. The metro has several acclaimed cultural institutions,including Zoo Atlanta and the High Museum of Art. More than 30 institutions of higherlearning call Atlanta home, including Emory University, Georgia Institute of Technology andSpelman College. Outdoor and sports enthusiasts will find plenty to enjoy. Mild weatheryear-round allows residents to hike, paddle and bike on the many trails in and aroundAtlanta. Atlanta is home to professional sports franchises in the NFL, MLB, NBA and WNBA.

The area serves as an economic hub for the Southeast. Many of the country’s largestcorporations have selected the Atlanta metro for their headquarters. Atlanta is favored bybusinesses for its low corporate taxes, pro-business climate, and access to national andglobal markets. Among the numerous corporate headquarters are Home Depot, Aflac andTurner Broadcast Co. Other major firms include NCR, Mercedes-Benz, Porsche and StateFarm.

Employer Estimated # of EmployeesCentral Valley Gas Storage LLC 26,730Cnn 8,945COCA-COLA 8,044Home Depot The 6,612Cumulus Media Holdings Inc 4,200Arcapita Inc 3,609NCR 3,471AT&T 3,447Coca-Cola 2,936Adult Swim Games 2,750Norfolk Southern Corporation 2,590EMORY UNIVERSITY 2,500

Major Employers

Market OverviewCity: Atlanta | County: Fulton | State: Georgia

17

Atlanta, GA

Atlanta, GA

John LeonardBroker of Record1100 Abernathy Rd., N.E. Bldg. 500, Ste. 600Atlanta, GA 30328P: (678) 808-2700Lic #: 252904

EXCLUSIVE NET LEASE OFFERING

2240 Marietta Blvd NW, Atlanta, GA 30318

Ground Lease - nnnpro.com

Documents

Transcript of Ground Lease - nnnpro.com