OFFERING MEMORANDUM CBRE CAPITAL MARKETS AT&T · 2018-07-25 · and services, including DIRECTV...

OFFER ING MEMORANDUM

2401 W WALNUT STREET | ROGERS, AR 72756

AT & TC B R E C A P I TA L M A R K E T S


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AT&T

JARED AUBREYSENIOR V ICE PRES IDENT+1 214 252 1031ja red .aub rey@cbre . com

M ICHAEL AUSTRYVICE PRES IDENT+1 214 252 1115michae l .aus t r y@cbre . com

OFFERING SUMMARY

EXCLUSIVE MARKETING ADVISORS: CL INTON BENNETTBROKER OF RECORDL IC . AB0058021

NET OPERATING INCOME $83,196

YEAR BUILT 2017

GROSS LEASABLE AREA 2,340 SF

LAND AREA .68 ACRES

LEASE TERM 7 YEARS

LEASE COMMENCEMENT JANUARY 2018

LEASE EXPIRATION JANUARY 2025

REMAINING TERM 6.5 YEARS

LEASE TYPE NN

ROOF & STRUCTURE LANDLORD

INCREASES YES

OPTION YES

OPTIONS TO PURCHASE NO

GUARANTOR CORPORATE

$Offering Price:$1,251,100

%Cap Rate:

6.65%

YEARS COMMENCEMENT ANNUAL RENT INCREASE

1-7 JANUARY 2018 $83,196 -

OPTION 1 (8-12) JANUARY 2025 $95,675 15%

OPTION 2 (13-17) JANUARY 2030 TBD MARKET

NET OPERATING INCOME $83,196


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AT&T

INVESTMENT HIGHLIGHTS

+ New 2017 Construction

+ Small Price-Point Asset, Significantly Less Than Most On-Market AT&T Offerings – Allows investor to purchase an asset with strong real estate fundamentals that isn’t artificially inflated due to a lease with tenant improvements

+ Strong Guarantor – The Franchisee operates over 1,400 AT&T mobility stores across the US. Subsidiary of publicly traded GameStop Corp. (NYSEL GME). GameStop operates over 7,000 locations across 14 countries

+ Rare 15% Rental Increase in Option - Strong Hedge Against Inflation

+ High Visibility, Easy Ingress/Egress & Strong Traffic Counts – Over 24,000 Vehicles Per Day on W Walnut Street

+ Major Retail Corridor - Surrounding Retailers Include Wal-Mart, Hobby Lobby, Family Dollar, O’Reilly Auto Parts, Dollar General, Aldi, Walgreens, CVS, Papa Johns, Popeyes, Harbor Freight Tools, and more


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AT&T

TENANT OVERVIEW

AT&T is a telecommunications company providing cell phones, data plans, and tablets. As a global leader in the Telecommunications, Media, and Technology industry, AT&T delivers advanced mobile services, next generation TV, high speed internet, and smart solutions for people and businesses.

TYPE Telecommunications

YEARS IN BUSINESS 132

NO. OF LOCATIONS 16,000

HEADQUARTERS Dallas, TX

WEBSITE www.att.com

GameStop Corp.(NYSE: GME), a Fortune 500 company headquartered in Grapevine, Texas, is a global, omnichannel video game, consumer electronics and wireless services retailer. GameStop operates more than 7,000 stores across 14 countries. The company’s consumer product network also includes www.gamestop.com; www.Kongregate.com, a leading browser-based game site; Game Informer® magazine, the world’s leading print and digital video game publication; and ThinkGeek, www.thinkgeek.com, the premier retailer for the global geek community featuring exclusive and unique video game and pop culture products. In addition, our Technology Brands segment includes Simply Mac and Spring Mobile stores. Simply Mac, www.simplymac.com, operates 74 stores, selling the full line of Apple products, including laptops, tablets, and smartphones and offering Apple certified warranty and repair services. Spring Mobile, www.springmobile.com, sells all of AT&T’s products and services, including DIRECTV through its 1,421 AT&T branded stores and offers pre-paid wireless services, devices and related accessories through its 70 Cricket branded stores in select markets in the U.S.

TYPE Retail

YEARS IN BUSINESS 34

NO. OF LOCATIONS 7,276

HEADQUARTERS Grapevine, TX

WEBSITE www.gamestop.com


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AT&T

PROPERTY AERIAL


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AT&T

PROPERTY AERIAL | 1 MILE VIEW


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AT&T

SITE DEMOGRAPHICS

7 MI

3 MI

1 MI

5 MI

20,000 10,000 030,000

POPULATION

144,981 52,440

24,440

37,768

20,293

4,257

$61,958

$71,054

$84,717

$88,017

105,042

53,791

11,208

35,000 15,00070,000 30,000105,000 45,000

60,000

140,000 60,0000 0

0

HOUSEHOLDS

AVERAGE HOUSEHOLD INCOME TRAFFIC COUNTS (2017)

W WALNUT STREET

7 MI

3 MI

1 MI

5 MI

7 MI

3 MI

1 MI

5 MI

30,000 90,000


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AT&T

WHY ROGERS?

Rogers was founded in 1881 and was named for Capt. C.W. Rogers, general manager for the St. Louis and San Fran-cisco (Frisco) Railroad. Rogers’ founding date, May 10, is based on the day that the Frisco first came through the area.

Rogers is a larger medium-sized city located in the state of Arkansas. Residents of the city have the good fortune of hav-ing one of the shortest daily commutes compared to the rest of the country. On average, they spend only 18.51 minutes getting to work every day.

The Downtown Rogers District is a magical blend of sights, sounds, aromas, tastes, textures, generations and cultures. It is a melting pot where business, dining, creativity, shopping, art, music, commerce, history, professional services, and theater all come together to form a vibrant community. Downtown Rogers is the envy of communities across Arkansas with charming brick streets leading to historic buildings lovingly restored to house distinctive stores and professional services. Explore chic boutiques, unique stores and galleries for gifts and specialties. Discover objects and stories from Rogers’ past at the Rogers Historical Museum and Daisy Airgun Museum, enjoy live theater at Arkansas Public Theatre at the Victory or relax and play in pretty parks that dot the district.

Downtown offers tempting restaurants and night spots to enjoy food and drinks, music and entertainment with friends and family. Latino cuisine, pizza, sandwiches, salads, burgers and fries, fresh bread and cupcakes, a variety of cuisines and dining styles can be found in the district to suit nearly every taste.

Activities also abound in the Downtown Rogers District. Take in Main Street Rogers-sponsored family-friendly events all year-round, including the Frisco Festival, Pickin’ in the Park, the Farm-ers’ Market, live music on the Frisco stage, the Goblin Parade, and the Christmas Parade. Many other events are held on the brick streets downtown, including car shows and 5K run/walks, bringing thousands of people to have fun in the extraordinary downtown atmosphere each year.

SOURCE: ROGERS-LOWELL AREA CHAMBER OF COMMERCE


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AT&T

WHY ROGERS?

MAJOR EMPLOYERSCompany Products/Services Employees

Rogers Public Schools Education 2,100

Mercy Health System of NWA Medical 1,800

Serco-NA Back Office Operations 1,600

Tyson Chick-N-Quick Plant Poultry and food products 1,200

Crossland Construction General Contractor/Construction 975

Wal-Mart Claims Center Insurance Claims Administration 850

Northwest Arkansas Community College Higher Education 850

Ozark Mountain Poultry Poultry Processing & Packaging 650

Glad Manufacturing Glad Plastic Bags, Plastic Cling Wrap 600

Wal-Mart Store #1 Retail 500

Wal-Mart Store #5260 Retail 500

Southeast Poultry Poultry Processing 500

Consumer Testing Laboratories Consumer Product Evaluation 495

City of Rogers Government 440

Kennametal Cutting Tools 430

Arvest Benton County Consumer and Commercial Banking 370

Tyson Plant Poultry Processing 360

Bekaert Corporation Steel Tire Cord Manufacturing 325

Nabholz Construction General Contractor/Construction 380

Bekaert Corporation Steel Tire Cord Manufacturing 325

Tyson’s Distribution Center Distribution Center 320

Preformed Line Products Co. Telephone/Communications Equipment 300

Nabholz Construction General Contractor/Construction 280

Crafton Tull Engineering/Architecture 250

BESTPLACE TO LIVEIN 20175th

- U.S. NEWS WORLD & REPORT -

BEST AFFORDABLEPLACE TO LIVEIN 20161st


MID-SIZED CITYFOR JOBSIN 20162nd


BEST CITY OVERALL FOR JOB GROWTHIN 20166th

- NEW GEOGRAPHY -

MOST ECONOMICGROWTH IN 20167th

- BLOOMBERG -

BESTPERFORMINGCITIES IN 201524th

- MILKEN INSTITUTE - SOURCE: ROGERS-LOWELL AREA CHAMBER OF COMMERCE


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AT&T

WHY NORTHWEST ARKANSAS?

SUCCESS WITHOUT COMPROMISE

Northwest Arkansas is a metropolitan area with a rapidly growing population of over 500,000 residents in the principal municipalities of Fayetteville, Spring-dale, Rogers, Bentonville, and Siloam Springs.

A GLOBAL CENTER OF EXCELLENCE IN RETAIL, FOOD, AND LOGISTICS

Home to the headquarters of three Fortune 500 companies (Walmart, Tyson Foods, and JB Hunt), Simmons Foods, America’s Car Mart, PAM Transport, and over 1,450 corporate subsidiary offices and well-known consumer brands, Northwest Arkansas has built a world-class infrastructure of professional and tech-nical services to support its flagship industries.

TALENT TO DRIVE YOUR ENTERPRISE

Northwest Arkansas has a remarkable record of attracting, growing, and retaining world-class talent. The population has doubled over the past 25 years, with most of that growth coming from in-migration. Local secondary and post-secondary schools have created nationally recognized programs to serve the growing needs of the regional economy.

ACCESS TO CUSTOMERS AND SUPPLIERS

Located near the center of the US population, Northwest Arkansas is, quite simply, in the middle of everywhere. There are several Midwestern markets within a half-day’s drive, including Kansas City, St. Louis, Dallas-Fort Worth, Little Rock, Tulsa, and Oklahoma City. Access to suppliers and customers is available via 14 nonstop destinations from the Northwest Arkansas Regional Airport (XNA).

SOURCE: Northwest Arkansas Info


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AT&T

CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Af-filiates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the success-ful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a man-ner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the own-er of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, mar-ket conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qual-ified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not

purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affil-iates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Mem-orandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discus-sions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obli-gation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

DISCLAIMERS

EXCLUSIVE MARKETING ADVISORS

OFFER ING MEMORANDUM

C B R E C A P I TA L M A R K E T SJARED AUBREYSENIOR V ICE PRES IDENT+1 214 252 1031JARED.AUBREY@CBRE .COM

M ICHAEL AUSTRYVICE PRES IDENT+1 214 252 1115MICHAEL .AUSTRY@CBRE .COM

CL INTON BENNETTBROKER OF RECORDL IC . AB00058021


AT & T

OFFERING MEMORANDUM CBRE CAPITAL MARKETS AT&T · 2018-07-25 · and services, including DIRECTV...

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