HERMITAGE PLAZA - HERMITAGE, TN JAMES CAPITAL …...The site is located in Hermitage, a neighborhood...

JAMES CAPITAL ADVISORS, INC.HERMITAGE PLAZA - HERMITAGE, TN

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JAMES CAPITAL ADVISORS

MARKETING PACKAGE

CONTENTS

CONTACT INFORMATION

PAGE

Investment Summary

Expense & Reimbursements

Rent Schedule

Investment Highlights

Retail Aerial

Site Plan

About the Brands

Location Overview

Amazon & Nashville

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3436 Lebanon PikeHermitage, TN 37076

Hermitage Plaza

joel cukierSenior Associate(424) 325-2618

3436 LEBANON PIKE, HERMITAGE, TN 3707603

HERMITAGE PLAZA - HERMITAGE, TN

INVESTMENT SUMMARY

Street Address

City

State

Zip

Cumulative GLA

Lot Size

Year Built/Remodeled*

* A brand new roof was installed in 2018 with a 20-year warranty & the parking lot was completely redone. Please refer to page 7.

$10M7.92%$831K

Price / SF $70.41

3436 Lebanon Pike

Hermitage

TN

37076

149,064 SF

12.64 AC

1990/2019

$10,495,000PURCHASE PRICE

7.92%CAP RATE

$831,481OPERATING INCOME

Base Rental Income

Expense Reimbursements

Effective Gross Income

Property Expenses

Vacancy (3.00%)

Reserves ($0.10)

Net Operating Income

$878,963.56

$187,270.46

$1,066,234.02

$189,762.95

$31,987.02

$13,003.00

$831,481.00



Expense & Reimbursements

ANNUAL

EXPENSE

Electric

Gas

Water

Trash

Landscaping

Sweeping

Snow and Ice

Security

Buidling Maintenance

Parking Lot Maintenance

Mileage

Postage

Management Fee

Insurance

Property Tax

TOTAL

TOTAL OP

EXPENSES

$12,290.79

$937.57

$7,800.00

$1,225.00

$9,818.67

$11,004.07

$1,710.00

$12,127.25

$1,825.34

$12,251.18

$448.69

$235.20

$21,173.42

$34,167.89

$62,747.88

$189,762.95

TENANT

REIMBURSEMENTS

Nashvegas Bar

Vacant

Vacant

Achieve Wellness

Altitude

Planet Fitness

Strike and Spare

Storage (Vacant)

TOTAL

PERCENTAGE

3.76%

1.84%

0.92%

1.54%

30.19%

13.42%

30.54%

17.80%

100%

TOTAL

$8,855.67

($4,329.79)

($2,164.89)

$3,626.08

$71,161.60

$31,627.38

$71,999.73

($11,860.27)

$187,270.46



RENT SCHEDULE

LEASE COMMENCEMENT

5/20/2018

6/1/2018

-

-

5/15/2014

8/19/2019

7/1/2019

-

INCREASES

3% Annually in Base Term, FMV in Option

None

-

-

$1,000 Monthly within Each Option

5.4% in 2021, 2.5% in 2024, 2.5% in 2027, 1.5% Annually in Options

$2,000 Per Month in Option

-

LEASE EXPIRATION

8/31/2023

5/31/2021

-

-

5/14/2024

8/31/2029

6/30/2024

-

TENANT

Achieve Wellness

Nash Vegas Bar & Grill

Vacant

Vacant

Planet Fitness

Altitude Trampoline Park

Strike and Spare

Storage**5,000 Sq Ft. Commited to Altitude Trampoline Park Storage.

TENANT

Achieve Wellness

Nash Vegas Bar & Grill

Vacant

Vacant

Planet Fitness


Strike and Spare

Storage

LEASE TYPE

Triple-Net (NNN)

Triple-Net (NNN)

-

-

Triple-Net (NNN)

Triple-Net (NNN)

Triple-Net (NNN)

-

ANNUAL RENT

$44,714

$112,000

-

-

$162,000

$416,250

$144,000

-

OPTIONS

One (1), 3-Year

N/A

-

-

Two (2), 5-Year

Two (2), 5-Year

One (1), 5-Year

-

GLA

2,293 SF

5,600 SF

3,200 SF

907 SF

20,000 SF

45,000 SF

45,530 SF

26,534 SF



Excellent Entertainment Tenant MixThe center is anchored by Taymax Group LP an experienced 95-unit Planet Fitness operator, Strike & Spare Bowling Alley (14-Unit Bowling Alley Chain) and Altitude Trampoline park, the fastest growing trampoline park company in the world.

Triple-Net (NNN) Leases - Minimal Out of Pocket ExpensesAll the tenants are operating on Triple-Net (NNN) leases and reimburse the landlord for all their CAM, taxes, insurance and management fees.

Five miles from Nashville International AirportNashville International Airport is served by 12 airlines and three cargo carriers. With more than 14.1 million passengers visiting each year, BNA serves 450 flights daily to more than 50 non-stop markets. The Robert C. H. Mathews Jr. Terminal accommodates visitors with 888,000 sq. ft. of space.

Located in Nashville MSAThe site is located in Hermitage, a neighborhood in Metropolitan Nashville and located less than 10 miles from downtown. The site benefits from the rapid growth of Nashville’s market which is ranked among the fastest growing cities in the nation and best places to live based on education, employment, economy, crime, parks, recreation and housing.

Additional Rental Upside Opportunity - Value AddThe property currently has two vacancies totaling 4,107 sq. ft. and an additional 26,534 sq. ft. of covered vacant light industrial storage, allowing the owner to dramatically increase the NOI of the property by leasing up the vacancies in this prime Nashville shopping center.

Excellent DemographicsOver 110,000 people with an average household income of $65,000 reside in the immediate five mile radius.

INVESTMENT HIGHLIGHTS



Located on Main Retail DragSurrounding retailers in the immediate area include Home Depot, Target, Marshalls, Hobby Lobby, Kohl’s, Lowe’s, Wendy’s, Sherwin Williams and McDonald’s.

Recent Improvements - Brand New Roof and Parking LotA brand new TPO roof was installed on 10/1/2018 with a 20-year warranty. The parking lot wascompletely repaved and new LED lighting, cameras were installed in 2019.

Ample Parking SpacesThe site contains 687 free surface spaces; with a ratio of 4.73/1,000 SF

Strategic Location with High Traffic CountsWell positioned on Lebanon Pike, the main retail corridor of Hermitage, and is located directly on U.S. Route 70 that leads directly into downtown Nashville with over 38,000 vehicles passing per day.

High Occupancy with Internet Proof RetailersThe 149,064 sq. ft. shopping center is 95% occupied with retailers that cater to experiences and fitness.

Amazon’s HQ in Nashville and Distribution FacilityOnline retailer Amazon keeps investing in Nashville as Amazon announced in November that it would open 230 million “Operations Center of Excellence” with 5,000 workers paid an average of $150,000 at the sprawling development under construction in Nashville Yards. In addition Amazon recently received approvals to build a massive cutting edge, 3.6 million sq. ft. distribution facility located less than 10 miles from Hermitage Plaza. The new distribution center is expected to provide anywhere from 1,000 to 2,000 jobs. (For further information visit page 16.)

INVESTMENT HIGHLIGHTS



RETAIL AERIAL



SITE PLAN

*Vacant



ABOUT THE BRANDs

Taymax Group, LP

Taymax Group, LP (“Taymax”) is a multi-unit franchisee of Planet Fitness health clubs located through-out North America. Taymax owns and operates over 90 Planet Fitness clubs in the greater San Anto-nio, Corpus Christi, Nashville, Huntsville, Jacksonville, Pittsburgh, Sacramento, Toronto, and Ottawa regions. Taymax is one of the largest and fastest-growing franchisees within the Planet Fitness sys-tem. Taymax is backed by Trilantic North America, a private equity firm with aggregate capital com-mitments of $9.6 billion and a primary focus in the business services, consumer, and energy sectors.

Taymax is the recent recipient of several prestigious awards given by Planet Fitness at its annual franchisee convention. Taymax is the back-to-back-to-back winner of Developer of the Year (2016, 2018, 2019), awarded to the franchisee that opens the most new clubs, and a recent winner of Fran-chisee of the Year (2018), Planet Fitness’ flagship award for outstanding contributions to the system.

Planet FitnessPlanet Fitness is an American operator of fitness centers based in Hampton, New Hampshire. As of 2019, Planet Fitness has a total fo 1,859 clubs, making it one of the largest fitness club franchises by number of members and locations. Planet Fitness prides itself as a “Judgment Free Zone” that caters to novice and casual gym users and is reported to be the nation’s fastest growing fitness center franchise. Founded in 1992, this club has spread it’s origins from the United States into Canada, Dominican Republic, Panama, Mexico & Australia.

Planet Fitness believes their product is a tool, a means to an end; not a brand name or a mold-maker, but a tool that can be used by anyone. In the end, it’s all about seeing results. Planet Fitness seeks to perfect this safe, energetic environment, where everyone feels accepted and respected. Their business model believes that anyone should have access to a gym to make get the body they so well deserve. For this reason, Planet Fitness has made it their mission to create packages as low as $10 a month so everyone can afford a membership at any one of their locations.



ABOUT THE BRANDs

Strike & Spare Bowling Alley

Strike & Spare Family Entertainment is a growing national network of family entertainment com-plexes. Strike & Spare combines the best of bowling, games, food, drink and entertainment into the ideal destination for family fun. Their mission is to provide a clean, professional family enviroment for wholesome entertainment and family fun while maintaining high standards of cleanliness, modern equipment, high food quality and impeccable services to any person that walks through their doors looking for a fun time with their family.

Owned and operated by a group of investors and sports enthusiast, the company is operated by managing partner Larry Schmittou, a nationally known sports figure who achieved his reputation in professional baseball. Each Strike & Spare Entertainment Center is managed by professionals com-mitted to the corporate mission, the success of the enterprise, the satisfaction of the customer, and the well-being and achievement of it’s team members.


Founded in 2012, Altitude Trampoline Park is the fastest growing trampoline park company in the world. With parks opening on three separate continents and cities around the globe, ATP has be-come the industry leader in both experience for the visitor and potential park owners. Altitude Tram-poline Parks are the world’s premier trampoline facilities that offer fun and exercise for people of all ages.

With brand new facilities and custom-designed parks, it’s hard to find an experience anywhere like one that Altitude brings. Most parks include trampolines, foam pits, rock climbing walls & more. With facilities including over 35,000 square feet of indoor jumping space, Altitude Trampoline Park can accommodate all ages and group sizes and offer activities that range from regular jumping to dodgeball, fitness classes to competitive jumping, and parties for birthdays, group events, or just about any other type of event imaginable.



1. The Nashville Parthenon2500 West End Ave, Nashville, TN 37203

12 MILES FROM SUBJECT PROPERTY

2. Andrew Jackon’s Hermitage4580 Rachels Ln, Hermitage, TN 37076

2.5 MILES FROM SUBJECT PROPERTY

3. The Grand Ole Opry2804 Opryland Dr, Nashville, TN 37214

6.5 MILES FROM SUBJECT PROPERTY

4. Country Music Hall of Fame222 5th Ave S, Nashville, TN 37203


5. Nissan Stadium1 Titans Way, Nashville, TN 37213


6. Nashville Zoo3777 Nolensville Pike, Nashville, TN 37211


LOCATION OVERVIEW



LOCATION OVERVIEW

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The Nashville ParthenonThe Parthenon in Centennial Park, in Nashville, is a full-scale replica of the original Parthenon in Athens.

Country Music Hall of FameThe Country Music Hall of Fame is one of the world’s largest museums & research centers dedicated to Country Music.

Andrew Jackson’s HermitageThe Hermitage is a historical plantation and museum owned by Andrew Jackson, the seventh President of the U.S.

Nissan StadiumNissan Stadium is a multi-purpose stadium primarily used for football and is the home field of the Tennessee Titans.

The Grand Ole OpryThe Grand Ole Opry is an American country music stage concert in Nashville founded on November 28, 1925.

Nashville ZooThe Nashville Zoo contains 6,230 individual animals, encompassing 339 species with 188 acres of space.



Nashville, TNNashville is the capital and most populous city of the U.S. state of Tennessee. The city is the county seat of Davidson County and is located on the Cumberland River. The city’s population ranks 24th in the U.S. Nashville’s downtown area features a diverse assortment of entertainment, dining, cultural and architectural attractions. The Broadway and 2nd Avenue areas feature entertainment venues, night clubs and an assortment of restaurants. North of Broadway lie Nashville’s central business district, Legislative Plaza, Capitol Hill and the Tennessee Bicentennial Mall. Cultural and architectural attractions can be found throughout the city.

Nashville has a vibrant music and entertainment scene spanning a variety of genres. With a long history in the music scene it is no surprise that city was nicknamed ‘Music City.’ The Tennessee Performing Arts Center is the major performing arts center of the city. It is the home of the Nashville Repertory Theatre, the Nashville Opera, the Music City Drum and Bugle Corps, and the Nashville Ballet.

LOCATION OVERVIEW

Hermitage, TNHermitage, Tennessee, is a neighborhood in Metropolitan Nashville, Tennessee, located in eastern Davidson County. The Hermitage neighborhood is named for its main landmark, the 1,100-acre plantation where President Andrew Jackson lived from 1804-1845. The Hermitage is a historical plantation and museum. It was owned by President Jackson from 1804 until his death at the Hermitage in 1845. The plantation, filled with rich and important history, has become a must-see venue when visiting Hermitage.

Although the area is incorporated as part of the Metropolitan Government of Nashville and Davidson County, it maintains its own identity as a residential and commercial suburban area. Once a rural area, Hermitage is now a thriving district with a highly developed network of retail stores and typical suburban tract houses, ranging from starter homes to the executive style residences. Fishing and canoeing draw locals to Long Hunter State Park, which also features 20 miles of hiking trails.

Hermitage Mansion

Nashville, TN



DEMOGRAPHICS

POPULATION

2024 Projection

2019 Estimate

2010 Census

Growth ‘19 - ‘24

Growth ‘10 - ‘19

HOUSEHOLDS

2024 Projection

2019 Estimate

2010 Census

Growth ‘19 - ‘24

Growth ‘10 - ‘19

Average Income

Median Income

3-Mile

49,627

47,608

42,611

4.24%

11.73%

3-Mile

21,814

20,953

18,971

4.11%

10.45%

$70,744

$59,648

1-Mile

6,328

5,861

4,003

7.97%

46.42%

1-Mile

2,433

2,259

1,579

7.70%

43.07%

$83,330

$59,914

5-Mile

115,983

110,543

102,156

4.92%

8.21%

5-Mile

48,748

46,625

43,642

4.55%

6.84%

$76,206

$64,115

Nashville, TN



AMAZON & Nashville

Operations Center of Excellence Amazon recently announced that it has selected Nashville as one of the new homes for its Operations business, which is responsible for the company’s customer fulfillment, transportation, supply chain, and other similar activities.

In recent years, Nashville has become a popular destination for transplants in search of a better and more affordable quality of life. Last year, over 30,000 people moved to the region, making it one of the fastest-growing large metro areas with a population of 1,930,000. No doubt many were attracted to the city’s vibrant food scene, bustling nightlife, cultural diversity and thriving creative community that now includes so much more than the country music industry. Nashville also happens to be located in one of the few states that doesn’t collect an income tax.

Amazon Nashville will be located downtown at the future site of Nashville Yards and will create 5,000 jobs. These new jobs will include a mix of technical roles such as Software Development Engineers and non-technical roles for candidates at all skill and education levels. In addition to direct jobs at Amazon, they expect their $230 million investment will create thousands more jobs in areas like construction, building services, hospitality and retail.

In late 2019, Amazon filed a permit with the city to add another fulfillment center to their fleet. The permit was for a 100,000 square foot space at the old Dell building near the airport. This would be in addition to their Antioch, Lebanon and Murfreesboro locations.

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The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. & Kevin Fulton (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no repre-sentations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto. The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or com-parable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITYThis Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASEThis Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENTBroker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

JAMES CAPITAL ADVISORS, INC.

DISCLAIMER

joel cukierSenior Associate

(424) [email protected] RE Lic. 02005095

Kevin FultonBroker of Record

(615) [email protected] RE Lic #: 313966Market Retail PartnersBrentwood, TNCORP. Lic #: 262103

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HERMITAGE PLAZA - HERMITAGE, TN JAMES CAPITAL …...The site is located in Hermitage, a neighborhood...

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