LIFETOUCH NATIONAL SCHOOL STUDIOS W. O. S. OF …€¦ · LIFETOUCH NATIONAL SCHOOL STUDIOS - W. O....

Offering Memorandum

LIFETOUCH NATIONAL SCHOOL STUDIOS

W. O. S. OF SHUTTERFLY, INC.2 Pumphouse Rd • Vestal, NY 13850

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 DisclaimerThe 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 NoticeMarcus & 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.

LIFETOUCH NATIONAL SCHOOL STUDIOS - W. O. S. OF SHUTTERFLY, INC.

Vestal, NY

ACT ID ZAA0070320

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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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OFFERING SUMMARY

Price $450,000

Net Operating Income $47,802

Capitalization Rate – Current 10.62%

Price / SF $75.00

Rent / SF $7.97

Lease Type NN

Gross Leasable Area 6,000 SF

Year Built / Renovated 1900 / 1980 / 2012

Lot Size 1.15 acre(s)

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EXECUTIVE SUMMARY

OFFERING SUMMARY

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FINANCING

Down Payment All Cash

Net Cash Flow 10.62% / $47,802

Cash on Cash Return 10.62%

Total Return 10.62% / $47,802


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OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER# OF EMPLOYEES

*

IBM 2,028

Pella Window Door 1,580

Bae Systems Controls Inc 1,400

Red Robin Gourmet Burgers Inc 1,240

Waters of Endicott 805

Wegmans 73 613

Ei 600

Walmart 500

Willow Point Nursing Facility 500

Carrier Corporation 311

Ensco Inc 297

Broom-Toga Bd Coop Eductl Svcs 282

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 9,091 42,584 73,891

2010 Census Pop 9,291 43,782 75,643

2018 Estimate HH 4,104 18,980 28,862

2010 Census HH 4,205 19,494 29,727

Median HH Income $39,801 $50,993 $56,969

Per Capita Income $24,576 $30,303 $31,244

Average HH Income $53,714 $67,525 $76,432

* # of Employees based on 5 mile radius


OFFERING SUMMARY

10.62% Cap Rate on Rent from the Largest School Portrait Vendor in the Country

Long Term Historical Occupancy

Tenant Recently Acquired by Shutterfly, Inc.

Below Market Rent

9,000 People with an Average Income of $53,000+ in a One-Mile Radius

NN Lease - Landlord Responsible only for Cap Ex > 5k, Roof and Structure

INVESTMENT HIGHLIGHTS

The subject property is leased to Lifetouch National School Studios, which was recently acquired by and is now a subsidiary of Shutterfly, Inc. The lease goes through

February of 2021 and provides for one three-year option with a 3% increase. Asking rents for single tenant buildings in the Binghamton-Endicott-Vestal area are

substantially higher than the subjects rent and are in the $20-30 psf range, which will provide for future upside.

Vestal, NY

Vestal, a part of the Greater Binghamton area, is located in the south western corner of Broome County. Approximately 52.5 square miles in size, Vestal's population has

grown from the 2010 census total of 28,043.

Vestal prides itself on being a "Full Service Town" with a police department, volunteer fire department, highway department, public library, museum and school system.

The award-winning Vestal Central School District offers a K-12 education to more than 4,000 students.

The Town of Vestal is home to the nationally recognized Binghamton University, a part of the State University of New York. Numerous malls and plazas offer excellent

shopping while Vestal's twenty parks and Rail Trail offer many recreational opportunities. Vestal is close to ski slopes for winter fun and New York's finger lakes for

summer recreation.

INVESTMENT OVERVIEW

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TENANT PROFILES


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Lifetouch National School Studios

Location count is an estimate based on at least 550+ locations within JCPenney as well as

multiple locations in each stateGeneral Information

Tenant Name Lifetouch National School Studios

Website www.lifetouch.com

Parent Company Shutterfly, Inc.

Headquartered Eden Prairie, MN

Rentable Square Feet 6,000 SF

Percentage of RBA 100%

Lease Commencement 3/1/2012

Lease Expiration 2/28/2021

No. of Locations 550+

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CLOSE PROXIMITY TO:

2 Pumphouse Rd, Vestal, NY 13850

9.56% Cap Rate

Excellent Tenant

1.5 Years Remaining on NN Lease

Below Market Rent

Strong Demographics

Insulated SUNY Binghamton Market

The subject property consists of a 6,000 square

foot building situated on 1.15 acres with

frontage on Bridge Street. Bridge is the main

connection between Vestal and Endicott.

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMELIFETOUCH NATIONAL SCHOOL STUDIOS - W. O. S. OF SHUTTERFLY, INC.

PRICING AND VALUATION MATRIX


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LOCATION OVERVIEW

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2 Pumphouse Rd, Vestal, NY 13850





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REGIONAL AND LOCAL MAP

AERIAL PHOTO


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PROPERTY SUMMARY

OFFERING SUMMARY

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OFFERING SUMMARY

NOTES: Cancellation Option Exists, but is removed upon sale

MARKETING TEAM

Source: © 2015 Experian

PROPERTY NAME

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CREATED ON JULY 15, 2019





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DEMOGRAPHICS

1 Miles 3 Miles 5 Miles

POPULATION

2023 Projection 9,089 42,440 73,873

2018 Estimate 9,091 42,584 73,891

2010 Census 9,291 43,782 75,643

2000 Census 9,157 44,091 74,954

INCOME

Average $53,714 $67,525 $76,432

Median $39,801 $50,993 $56,969

Per Capita $24,576 $30,303 $31,244

HOUSEHOLDS

2023 Projection 4,127 19,092 29,111

2018 Estimate 4,104 18,980 28,862

2010 Census 4,205 19,494 29,727

2000 Census 4,162 19,206 29,125

HOUSING

2018 $103,177 $114,965 $125,283

EMPLOYMENT2018 Daytime Population

15,809 45,949 86,674

2018 Unemployment

6.00% 4.87% 5.59%

2018 Median Time Traveled

19 19 19

RACE & ETHNICITY

White 85.90% 88.17% 85.87%

Native American 0.20% 0.13% 0.10%

African American 7.24% 4.35% 4.20%

Asian/Pacific Islander

2.45% 3.99% 6.27%

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