HARBOR FREIGHT TOOLS - DOTHAN - LoopNet · Apac-Southeast Inc 550 G A M Inc 500 Walmart 500 General...

Offering Memorandum

HARBOR FREIGHT TOOLS - DOTHAN2821 Reeves St • Dothan, AL 36303

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Michael J. FasanoRegional Manager

1100 Abernathy Rd, NE, Suite 600

Atlanta, GA 30328

Tel: (678) 808-2700

[email protected]

AL License Number: AL-000101226

A L A B A M A B R O K E R O F R E C O R D :

Ethan Armentrout, PE, CCIMAssociate

Member, National Retail Group

Tel: (678) 808-2814

Mob: (404) 518-2470

[email protected]

License Number: GA 353676

P R E S E N T E D B Y :

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the

party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus &

Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish

only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence

investigation. 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 projected financial performance of the property, the size and square footage of the property and

improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the

physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions

to continue its occupancy of the subject property. The information contained in this Marketing Brochure has 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 matters and makes no warranty or representation whatsoever regarding the accuracy or

completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement Notice

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The

presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said

corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is

solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

HARBOR FREIGHT - DOTHAN

Dothan, AL

ACT ID Z0230529

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N E T L E A S E D D I S C L A I M E R

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

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not

verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty

or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before

completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus &

Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of

this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to

your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal

and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a

guarantee 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 projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors

may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to

market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own

investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant

if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant

considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost,

expense, or liability arising out of your investigation and/or purchase of this net leased property.

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TABLE OF CONTENTS

SECTION

FINANCIAL ANALYSIS 01Offering Summary

Acquisition Financing

INVESTMENT OVERVIEW 02Location Overview

Aerial Photo

MARKET OVERVIEW 03Demographic Analysis


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Atlanta, GA 30328

Tel: (678) 808-2700

[email protected]




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FINANCIAL

ANALYSIS

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PROPERTY SUMMARYOFFERING SUMMARY

#

NOTES

Based on 2017 and 2018 YTD P&Ls as provided by Owner.


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OFFERING SUMMARY


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INVESTMENT

OVERVIEW

OFFERING SUMMARY

Price $1,355,000

Net Operating Income $105,000

Capitalization Rate – Current 7.75%

Price / SF $100.37

Rent / SF $8.80

Lease Type Modified Gross

Gross Leasable Area 13,500 SF

Year Built / Renovated 2009

Lot Size 1.72 acre(s)

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EXECUTIVE SUMMARY

OFFERING SUMMARY

#

FINANCING

Loan Amount $948,500

Loan Type Financed - New Loan

Loan to Value 70.00%

Interest Rate / Amortization 5.25% / 25 Years

Annual Loan Payment $68,206

Net Cash Flow After Debt Service 9.05% / $36,794

Cash on Cash Return 9.05%

Total Return 13.69% / $55,654


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OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER# OF EMPLOYEES

*SOUTHEAST ALABAMA MEDICAL CENT

2,300

Dothan City Schools 1,100

Dothan City Board Education 802

St Columba Pre-School 721

Houston County Board Education 653

Apac-Southeast Inc 550

G A M Inc 500

Walmart 500

General Cigar Co Inc 400

ACT 375

Police Department 359

Nutcracker Brands Inc 320

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 550 18,947 51,621

2010 Census Pop 536 18,510 50,158

2017 Estimate HH 235 7,728 20,954

2010 Census HH 230 7,583 20,450

Median HH Income

$28,148 $29,504 $37,472

Per Capita Income $20,292 $19,247 $23,990

Average HH Income

$47,478 $46,384 $58,480

* # of Employees based on 5 mile radius

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TENANT PROFILE


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Harbor Freight Tools

Harbor Freight Tools was founded in 1977 in Calabasas,

California. The company is privately held and operates

close to 900 retail locations in 47 states in addition to its

retail website. The company sells discount tools.

Products include hand tools, automotive tools, power

tools, as well as shop equipment. A lifetime guarantee

comes with the purchase of all of the company’s hand

tools. Moody’s Investor Service rates the credit of

Harbor Freight at Ba3.

General Information

Tenant Name Harbor Freight Tools

Website www.harborfreight.com

Headquartered Calabasas, California

Percentage of RBA 100.00%

Lease Commencement 4/1/2009

Lease Expiration 3/31/2024

No. of Locations 900

#

CLOSE PROXIMITY TO:

2821 Reeves St, Dothan, AL 36303

▪ National Credit Tenant - Ba3 (Moody’s)

▪ Corporate Backed Single Tenant Lease Shows

Strong Commitment to Site with Early Exercising

of 2nd Option.

▪ Escalations of 5% in Each of 4 Remaining 5-Year

Options.

▪ Harbor Freight Operates 900 Stores in 47 States.

▪ Regional Hub - Daytime Population Increases

89% in 3 Mile Radius.

▪ Dothan is County Seat of Houston County.

▪ Traffic Counts of 19,230 AADT on US 431, a

Major Regional Artery and Thoroughfare.

Marcus & Millichap is pleased to exclusively

offer For Sale this Harbor Freight Tools,

located along US 431 in Dothan, AL. The

store opened in 2009 and Harbor Freight

has recently chosen to exercise their

second option early, demonstrating a strong

commitment to this site.

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEHARBOR FREIGHT - DOTHAN

PRICING AND VALUATION MATRIX


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LOCATION OVERVIEW

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2821 Reeves St, Dothan, AL 36303





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REGIONAL AND LOCAL MAP

TRAFFIC COUNTS, PER ALDOT


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SITE LAYOUT


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AERIAL PHOTO


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AERIAL PHOTO


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PROPERTY PHOTO


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PROPERTY PHOTO


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PROPERTY PHOTO


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MARKET

OVERVIEW

#

Dothan, Alabama





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MARKET OVERVIEW

Harbor Freight Tools is located along US Hwy 431, on the northern side of Dothan, Alabama. Dothan is the county seat ofHouston County, Alabama and has a population of 65,496, per the 2010 census. US Hwy 431, intersects several other State andUS Highways in and around Dothan, where the community has evolved to become the business and cultural center of theregion. The city boasts the regional hospital in the Southeast Alabama Medical Center, which is the top area employer,employing 2,500. The City is Nicknamed “The Peanut Capitol of the World” because nearly a quarter of the US peanut crop isproduced in the region, which includes Southeast Alabama, Southwest Georgia, and portions of the Florida panhandle. EachNovember the city hosts the National Peanut Festival. The route is a major thoroughfare for travelers vacationing in the Floridapanhandle. Other attractions include the Highland Oaks Golf Course, which is part of the Robert Trent Jones Golf Trail. FortRucker and the US Army Aviation Museum are also nearby and house one of the largest helicopter collections in the world.

DEMOGRAPHIC AREA: 1-3-5 MILE RADII


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PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2017 Experian

Created on October 2018

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Population 505 19,180 52,489

▪ 2017 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Current Daytime Population

2017 Estimate 1,441 35,913 81,273

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Households 216 7,890 21,478

▪ 2017 Estimate


Average (Mean) Household Size 2.45 2.37 2.40

▪ 2010 Census


▪ 2000 Census


▪ Occupied Units

2022 Projection 216 7,890 21,478

2017 Estimate 245 8,751 22,916

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2017 Estimate

$150,000 or More 3.75% 3.56% 6.01%

$100,000 - $149,000 8.54% 5.91% 8.11%

$75,000 - $99,999 7.47% 6.66% 8.55%

$50,000 - $74,999 10.90% 14.00% 15.48%

$35,000 - $49,999 10.42% 12.77% 14.50%

Under $35,000 58.91% 57.10% 47.38%

Average Household Income $47,478 $46,384 $58,480

Median Household Income $28,148 $29,504 $37,472

Per Capita Income $20,292 $19,247 $23,990

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure

$49,731 $46,261 $53,734

▪ Consumer Expenditure Top 10 Categories

Housing $12,507 $11,921 $13,622

Transportation $8,094 $8,177 $9,656

Shelter $6,397 $6,159 $6,994

Food $4,799 $4,726 $5,495

Health Care $3,644 $3,201 $3,822

Utilities $3,419 $3,207 $3,561

Personal Insurance and Pensions $3,276 $3,307 $4,264

Entertainment $2,770 $2,425 $3,002

Cash Contributions $2,119 $1,611 $2,000

Apparel $1,441 $1,099 $1,218

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2017 Estimate Total Population 550 18,947 51,621

Under 20 21.23% 26.63% 26.12%

20 to 34 Years 15.96% 22.30% 20.31%

35 to 39 Years 6.19% 6.15% 6.06%

40 to 49 Years 9.20% 11.53% 11.93%

50 to 64 Years 26.73% 18.65% 19.28%

Age 65+ 20.67% 14.77% 16.30%

Median Age 47.22 35.84 37.93

▪ Population 25+ by Education Level

2017 Estimate Population Age 25+ 406 12,534 34,813

Elementary (0-8) 5.69% 4.82% 3.87%

Some High School (9-11) 13.53% 14.42% 11.48%

High School Graduate (12) 35.91% 31.88% 30.80%

Some College (13-15) 16.83% 21.73% 23.04%

Associate Degree Only 10.99% 7.99% 8.42%

Bachelors Degree Only 7.77% 9.57% 12.86%

Graduate Degree 7.24% 6.78% 7.90%

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Income

In 2017, the median household income for your selected geography is

$37,472, compare this to the US average which is currently $56,286.

The median household income for your area has changed by 17.73%

since 2000. It is estimated that the median household income in your

area will be $45,168 five years from now, which represents a change

of 20.54% from the current year.

The current year per capita income in your area is $23,990, compare

this to the US average, which is $30,982. The current year average

household income in your area is $58,480, compare this to the US

average which is $81,217.

Population

In 2017, the population in your selected geography is 51,621. The

population has changed by 9.76% since 2000. It is estimated that the

population in your area will be 52,489.00 five years from now, which

represents a change of 1.68% from the current year. The current

population is 47.00% male and 53.00% female. The median age of the

population in your area is 37.93, compare this to the US average

which is 37.83. The population density in your area is 657.55 people

per square mile.

Households

There are currently 20,954 households in your selected geography.

The number of households has changed by 8.82% since 2000. It is

estimated that the number of households in your area will be 21,478

five years from now, which represents a change of 2.50% from the

current year. The average household size in your area is 2.40

persons.

Employment

In 2017, there are 38,600 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

56.67% of employees are employed in white-collar occupations in this

geography, and 43.15% are employed in blue-collar occupations. In

2017, unemployment in this area is 7.27%. In 2000, the average time

traveled to work was 19.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

53.45% White, 41.44% Black, 0.08% Native American and 1.04%

Asian/Pacific Islander. Compare these to US averages which are:

70.42% White, 12.85% Black, 0.19% Native American and 5.53%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 3.37% of the current year

population in your selected area. Compare this to the US average of

17.88%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $125,051 in 2017,

compare this to the US average of $193,953. In 2000, there were

12,033 owner occupied housing units in your area and there were

7,222 renter occupied housing units in your area. The median rent at

the time was $317.

Source: © 2017 Experian

DEMOGRAPHICS

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Atlanta, GA 30328

Tel: (678) 808-2700

[email protected]



Ethan Armentrout, PE, CCIMAssociate

Member, National Retail Group

Tel: (678) 808-2814

Mob: (404) 518-2470

[email protected]

License Number: GA 353676

P R E S E N T E D B Y :

HARBOR FREIGHT TOOLS - DOTHAN - LoopNet · Apac-Southeast Inc 550 G A M Inc 500 Walmart 500 General...

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