mattress firm & five guys · accessories (bed frames, mattress pads, pillows) . The stores carry a...

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New Construction Net Leased Asset located on Major Retail Corridor in one of Maine’s Fastest Growing Commercial Centers 574 Alfred St, Biddeford, ME 04005 mattress firm & five guys portland msa Click for Map [ www.CapitalPacific.com ] offered as part of a portfolio: click here for adjacent property

Transcript of mattress firm & five guys · accessories (bed frames, mattress pads, pillows) . The stores carry a...

Page 1: mattress firm & five guys · accessories (bed frames, mattress pads, pillows) . The stores carry a broad assortment of national mattress brands and exclusive brands . In 2011, Mattress

New Construction Net Leased Asset located on Major Retail Corridor in one of Maine’s Fastest Growing Commercial Centers574 Alfred St, Biddeford, ME 04005

mattress firm & five guysportland msa

Click for Map

[ www.CapitalPacific.com ]

offered as part of a portfolio: click here for adjacent property

Page 2: mattress firm & five guys · accessories (bed frames, mattress pads, pillows) . The stores carry a broad assortment of national mattress brands and exclusive brands . In 2011, Mattress

RENTABLE SF . . . . . . . . . . . 6,500 SFCURRENT RENT . . . . . . . . $35 .08/SFYEAR BUILT . . . . . . . . . . . 2016

PRICE: $3,353,000CAP: 6.85%

NEW CONSTRUCTION TWO TENANT RETAIL ASSET FEATURING FIVE GUY’S BURGER & FRIES AND CORPORATE MATTRESS FIRM. THE PROPERTY IS IDEALLY SITUATED ACROSS THE STREET FROM A TARGET-ANCHORED CENTER.

The subject property is a newly constructed net leased two tenant asset that is part of a fully leased shopping center in Biddeford, ME, an affluent and quickly growing commercial submarket within the Portland metropolitan area .

Situated across the street from a Super Target anchored center, Biddeford Shoppes is ideally located within the primary retail trade area of Biddeford . The center benefits from excellent visibility along Route 111 with strong daily traffic counts of nearly 25,000 vehicles per day .

The offering is for a condominium interest in the larger center . The adjacent strip center is also available for sale . Please click HERE for the adjacent properties offering memorandum .

investment highlights

Listing Team Contact Info

Capital Pacific collaborates . Click Here to meet the rest of our San Francisco team .

chris kostaneckick@capitalpacific .com | (415) 274-2701CA BRE# 01002010

zeb ripplezripple@capitalpacific .com | (415) 274-2702CA BRE# 01242540

chris peterscpeters@capitalpacific .com | (415) 274-2703CA BRE# 01339983

jack navarrajnavarra@capitalpacific .com | (415) 274-2705CA BRE# 01909630

Listed in conjunction with ME Licensed Broker:Bill Sullivan | bill@sullivanmulti .comKW Commercial | 207-771-5556

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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Page 3: mattress firm & five guys · accessories (bed frames, mattress pads, pillows) . The stores carry a broad assortment of national mattress brands and exclusive brands . In 2011, Mattress

core characteristics

Capital Pacific is pleased to offer for sale a newly constructed net leased asset that is part of a larger, fully occupied strip center located in the primary retail trade area of Biddeford, ME . The subject property is a two tenant freestanding building featuring a 10-year Five Guys Burger & Fries and a 10-year corporate Mattress Firm . The ownership of this asset will be mostly passive as the management of the common area will be the responsibility of the owner of the adjacent building . For more information on the offering of the adjacent building please click HERE .

LEASE HIGHLIGHTS• Both tenants feature new 10-year leases• 10% increases every 5 years in the primary term and options• Corporate lease signed by Mattress Firm, Inc .

STRONG TRAFFIC COUNTS & HIGH IDENTITY LOCATIONThe subject property’s rare layout enhances the center’s visibility . The building is situated along Route 111, with the parking located to the back of the property rather than between the store fronts and the roadway, giving the center great visibility and high-identity curb appeal . Located near the confluence of Route 111 and Interstate 95 the site benefits from average daily traffic counts of nearly 25,000 cars per day .

EXCELLENT RETAIL TRADE AREAThe subject property is situated in the center of Biddeford’s primary retail trade area . Immediately to the south of Biddeford Shoppes is Biddeford Crossing, a Target, TJ Maxx, Market Basket, and Staples anchored center . Other major national retailers in the immediate area include a Walmart Supercenter, The Home Depot, and Kohl’s . The subject property benefits from the draw to the area provided by these strong national retailers .

STRONG DEMOGRAPHICS & LOCAL ECONOMYBiddeford is one of Maine’s fastest growing commercial centers due to its close proximity to the Seacoast Region of New Hampshire and northern Massachusetts . The average household income within a seven minute drive of the property is nearly $70,000 per year . The center also benefits from an attractive density in the surrounding area: there are more than 43,000 people living within 15-minute drive of the property .

100% occupied STRIP CENTER in the primary retail trade area of Biddeford, ME

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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Page 4: mattress firm & five guys · accessories (bed frames, mattress pads, pillows) . The stores carry a broad assortment of national mattress brands and exclusive brands . In 2011, Mattress

aerialBiddeford Connector

Mountain Road

Alfred Street

Alfred Street

111

111

111

95

95

95

THE SHOPS AT

BIDDEFORD CROSSING

PORTLAND

24,880 DAILY

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

SITUATED AMIDST A DENSE CLUSTER OF NATIONAL RETAILERS

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24,8

00 D

AIL

Y

condo mapAl

fred

Stre

et

SIGN

111

SITE PLAN KEYPARCEL OUTLINE:

CONDO OUTLINE:

COMMON AREA:

LAND AREA: 4 .8 AC

BUILDING AREA: 6,500 SF

INGRESS/EGRESS:

The owner of the adjacent building will be responsible for the management of the center’s common area . This will eliminate the need for a property manager for the owner of the subject property .

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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income & expense

CurrentPrice: $3,353,000

Capitalization Rate: 6.85%

Price Per Square Foot: $515.85Total Leased (SF): 100 .00% 6,500

Total Vacant (SF): 0 .00% 0 Total Rentable Area (SF): 100 .00% 6,500

INCOME Per Square FootScheduled Rent $35 .08 $228,000Expense Reimbursement $6 .54 $42,513

EFFECTIVE GROSS INCOME $270,513

EXPENSEReal Estate Tax ($2 .49) ($16,365)Insurance ($0 .78) ($5,087)CAM ($2 .79) ($18,396)Management Fee* ($0 .06) ($368)CapEx Reserve ($0 .10) ($650)

TOTAL OPERATING EXPENSES ($6.29) ($40,866)

NET OPERATING INCOME $229,647*Management fee paid to owner of Building 2 for CAM only

This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. MATTRESS FIRM & FIVE GUYS | 6

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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

rent roll

TENANT INFO LEASE TERMS RENT SUMMARY

Tenant Sq. Ft. Percent of GLA Term Monthly Rent

Annual Rent Rent/FT

Mattress Firm 4,000 61 .54% 08/05/16 08/31/21 $12,333 $148,000 $37 .00

09/01/21 08/31/26 $13,567 $162,800 $40 .70Option 1 09/01/26 08/31/31 $14,923 $179,080 $44 .77Option 2 09/01/31 08/31/36 $16,416 $196,988 $49 .25Option 3 09/01/36 08/31/41 $18,057 $216,686 $54 .17

Five Guys 2,500 38 .46% *08/8/17 08/31/22 $6,667 $80,000 $32 .00

* Rent commences in May-18 09/01/22 08/31/27 $7,333 $88,000 $35 .20

Option 1 09/01/27 08/31/32 $8,067 $96,800 $38 .72

Option 2 09/01/32 08/31/37 $8,873 $106,480 $42 .59

Occupied 6,500 100.00% $19,000 $228,000 $35.08

Vacant 0 0.00%

Current Totals: 6,500 100.00%

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FULLY LEASED TO NATIONALLY

RECOGNIZED TENANTS

subject property

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Page 9: mattress firm & five guys · accessories (bed frames, mattress pads, pillows) . The stores carry a broad assortment of national mattress brands and exclusive brands . In 2011, Mattress

tenants

Mattress Firm (NASDAQ: MFRM) currently operates over 3,546 locations across 48 states nationwide, making it the largest bedding retailer in the country, with estimated fiscal 2016 sales of approximately $4 billion . Mattress Firm offers conventional mattresses, specialty mattresses, including viscoleastic foam mattresses and YuMe sleep system (a revolutionary sleep system made of foam produced from coconut oil), and bedding related accessories (bed frames, mattress pads, pillows) . The stores carry a broad assortment of national mattress brands and exclusive brands . In 2011, Mattress Firm Holding Corp went public and has shown very strong sales and profit growth since .

MATTRESS FIRMTwenty years after opening, Five Guys has over 1,000 locations in 47 states and 6 Canadian provinces and over 1,500 in development . The overwhelming success of franchising a local restaurant made national news with articles in many trade publications including Nation’s Restaurant News, Restaurant Business Magazine, and the Franchise Times . Five Guys is a privately owned company . Their menu offers a variety of hamburgers, hot dogs, and sandwiches in addition to fries, milkshakes, and soft drinks .

FIVE GUYS

This location features a corporate lease.

This location is operated by a multi-unit franchisee.

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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Page 10: mattress firm & five guys · accessories (bed frames, mattress pads, pillows) . The stores carry a broad assortment of national mattress brands and exclusive brands . In 2011, Mattress

SUBJECT PROPERTY IS SURROUNDED

BY MAJOR NATIONAL RETAILERS

surrounding retail

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2017 HOUSEHOLD INCOMES

POPULATION

TOP EMPLOYERS IN YORK COUNTY, ME

demographics & map

Webber Hospital AssociationPratt & Whitney Aircraft GroupHannaford Bros CoYork HospitalUniversity of New EnglandShaws Supermarkets IncWalmart / Sam’s ClubCamp WabanPremier Group-Poland Spring

BIDDEFORD

27 MIN19 MILES

MATTRESS FIRM & FIVE GUYS LOCATION

REGIONAL MAP

MATTRESS FIRM & FIVE GUYS

24,880 DAILY

PORTLAND

7-Min 10-Min 15-Min

2010 3,040 15,287 42,2022017 3,098 15,695 43,3592021 3,170 16,047 44,530

7-Min 10-Min 15-Min

Average $69,219 $57,045 $64,821Median $56,212 $43,132 $50,042

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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Page 12: mattress firm & five guys · accessories (bed frames, mattress pads, pillows) . The stores carry a broad assortment of national mattress brands and exclusive brands . In 2011, Mattress

biddeford, me

Biddeford is the principal commercial center of York County, and with an estimated 2017 population of over 21,000, it is a principal population center of the Portland-South Portland-Biddeford metropolitan statistical area . The city includes the resort communities of Biddeford Pool, Fortunes Rocks, and Granite Point . Biddeford is also the site of the 540-acre University of New England, which has over 12,000 students and includes Maine’s only medical school, the University of New England College of Ostepathic Medicine .

Biddeford is located less than 20 miles southwest of Portland, Maine’s largest city, which accounts for more than one-third of Maine’s total population . Due to its large population, possession of Maine’s largest port, and close proximity to Boston, Portland has become Maine’s economic capital . The local economy is largely service-based, with most national financial services organizations such as Bank of America and Key Bank operating there . Other notable companies with headquarters in Portland include Unum, Magellan Petroleum, Maine Bank & Trust, ImmuCell Corp, and Pioneer Telephone .

PORTLAND, MAINE:OVERVIEW:

Biddeford is one of Maine’s fastest growing commercial centers due to its close proximity to the Seacoast Region of New Hampshire and to northern Massachusetts . Recent interest in revitalizing the downtown area has brought new life to old mills including the North Dam Mill, which has been transformed to include retail stores, art studios, cultural events, and upscale housing . Anchoring Biddeford’s historic downtown are McArthur Public Library and Biddeford’s City Theater, a restored Victorian opera house that hosts theater, dance, and music performances year-round . The Lofts at Saco Falls, a redevelopment of a portion of the Riverdam Mill, celebrated its grand opening in September of 2016 . The redevelopment consists of nearly 150 new units, 82% of which are already leased to households new to Biddeford . A new influx of residents will add vibrancy to the exciting development that has recently taken place in the Mill District as well as be a boon to downtown businesses .

ECONOMY:

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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A unique HUMANRESULTS-DRIVEN client experience

THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS

[ www.CapitalPacific.com ]

[ Copyright © 2017 Capital Pacific ]

JOHN ANDREINI

JOE CACCAMO

ZANDY SMITH

DAVE LUCAS

RICK SANNER

AARON SUSMAN

Capital Pacific collaborates . Click Here to meet the rest of our San Francisco team .

CHRIS KOSTANECKIck@capitalpacific .com | (415) 274-2701CA BRE# 01002010

ZEB RIPPLEzripple@capitalpacific .com | (415) 274-2702CA BRE# 01242540

CHRIS PETERScpeters@capitalpacific .com | (415) 274-2703CA BRE# 01339983

JACK NAVARRAjnavarra@capitalpacific .com | (415) 274-2705CA BRE# 01909630

Listed in conjunction with ME Licensed Broker:Bill Sullivan | bill@sullivanmulti .com | KW Commercial | 207-771-5556