STARBUCKS & VERIZON · 2020-03-04 · Rent Roll Lessee Information as of February 2020 SUITE TENANT...

OFFERING MEMORANDUM

STARBUCKS & VERIZON2200 W NINE MILE ROAD, PENSACOLA, FL 32534

The information in this package 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus Millichap. ACT ID Z0070501

SUBJECT PROPERTY

10

CORPORATE CAMPUS

29

MCDONALD'SMCDONALD'S

12,850 STUDENTS

TATE HIGH SCHOOL(2,180 STUDENTS)

MARCUS & MILLICHAP 2 // Starbucks & Verizon

Rent RollLessee Information as of February 2020

SUITE TENANT NAMEAPPROX.

RENTABLE SFPERCENT

OCCUPANCYEST. LEASE

COMMENCEMENTEST. LEASE EXPIRATION

APPROX.RENT PSF

BASE RENT PER MONTH

ANNUAL RENT

LEASE TYPE

RENTAL INCREASES

RENEWAL OPTIONS

A Starbucks 1,850 46.8% 6-21-07 6-30-28 $68.75 $10,599.44 $127,193.29 NNN 10% In Each Option2, 5 Year Options

B Verizon (GoWireless, Inc)

2,100 53.2% 2-1-15 10-31-25 $27.03 $4,730.76 $56,769.12 NNN $0.50/SF Annually1, 5 Year Option

Total SF 3,950 100% Monthly Income $15,330

Occupied SF 3,950 100% Annual Income $183,962

Available SF 0 0% Average $46.57


Total Square Feet Per Leases 3,950

Lot Size 1.24 Acres

Year Built 2008

Occupancy as of February 2020 100%

INCOME

Scheduled Base Rent $183,962

Estimated Total Potential Base Rent $183,962

Plus Expense Reimbursements $56,019

EFFECTIVE GROSS INCOME $239,981

ESTIMATED OPERATING EXPENSES

CAM Expense $38,339 $9.71

Insurance $4,642 $1.18

Property Taxes $13,038 $3.30

TOTAL OPERATING EXPENSES $56,019 $14.18

NET OPERATING INCOME $183,962

OFFERING PRICE $3,300,000

CAPITALIZATION RATE 5.60%

PRICE PER SF $835.44

Income & Expense Summary


25,500 CPDW NINE MILE RD

26,000 CPDPINE FOREST RD

SUBJECT PROPERTY

Walgreens


SUBJECT PROPERTY


26,000 CPDPINE FOREST RD


SUBJECT PROPERTY

CORPORATE CAMPUS


*SEE PAGE 10


Population

2024 Projection 3,918 31,210 83,192

2019 Estimate 3,705 29,660 79,163

Growth 2019 – 2024 5.75% 5.23% 5.09%

Households

2024 Projection 1,736 12,285 32,182

2019 Estimate 1,613 11,577 30,452

Growth 2019 – 2024 7.62% 6.12% 5.68%

Income

2019 Est. Average Household Income

$70,038 $73,265 $70,316

2019 Est. MedianHousehold Income

$54,164 $58,078 $55,247

2019 Est. Per Capita Income

$30,517 $28,705 $27,131

DEMOGRAPHICS 1-mile 3-miles 5-miles

INVESTMENT HIGHLIGHTS

» 100% Leased to Starbucks and Verizon

» Triple-Net (NNN) Leases with New 5 & 10 Year Extensions

» 79,163 Residents in Growing Pensacola Trade Area

» Starbucks Underwent a Full Renovation (Interior and Exterior) in 2019

» Only Drive-Thru Starbucks within a 5-Mile Radius, Serving 63,000+ Employees

» GoWireless, Inc. has Over 700 Stores Coast to Coast

» Signalized Hard Corner Location, Visible to Nearly 52,000 Cars/Day

» Average Household Income Exceeds $73K within a 3-Mile Radius

» Less Than 3 Miles from Navy Federal Credit Union's Corporate Campus - 8,441

Employees (See Page 9)

» Surrounded by National Retailers - Publix, Walmart Neighborhood Market, Walgreens,

O'Reilly Auto Parts, Wendy's, and More

Property Description


Navy Federal Credit UnionCorporate Campus

NAVY FEDERAL OVERVIEW

Navy Federal Credit Union is the largest natural member (or retail) credit union in the

United States, both in asset size and in membership. As of Q3 2019, Navy Federal has

over $110.2 billion USD in assets and 8.85 million members. Headquartered in Vien-

na, Virginia, Navy Federal has operations at two other campuses in Winchester, Virgin-

ia and Pensacola, Florida. "Right now, Pensacola is our largest operation," said Debbie

Calder, Navy Federal's executive vice president of Greater Pensacola operations. "This

is where the majority of our growth will be for the forseeable future."

EXPANSION PHASES I AND II

The first phase of Navy Federal's expansion project opened in 2016, providing more

than 400,000 square feet of space and capacity for 2,000 additional employees. Phase

II of the expansion includes a 242-acre site adjacent to the existing Navy Federal Credit

Union campus. The scope of the work includes two office buildings, an amenities

building, two parking decks, equipment additions to the existing Central Energy Plant,

and associated connecting bridges, roads, walking paths, stormwater retention, and

infrastructure.

CAMPUS BUILD OUT PLAN

The entire expansion plan was completed in September 2019 with a total of $1 billion in

capital investment, 2 million square feet of space, and capacity for 10,000 employees.

Currently, there is an estimated 8,441 people employed by Navy Federal Credit Union

in the Greater Pensacola area. The company is estimated to reach the 10,000-employ-

ee mark by late 2022 or early 2023, ahead of their previous goal of 2026.


Starbucks is the premier roaster, marketer and retailer of specialty coffee

in the world, operating in 69 countries. Formed in 1985, Starbucks Corpo-

ration’s common stock trades on the NASDAQ Global Select Market (“NAS-

DAQ”) under the symbol “SBUX.” The company purchases and roasts

high-quality coffees that they sell, along with handcrafted coffee, tea and

other beverages and a variety of fresh food items, through company-operated

stores. Starbucks also sells a variety of coffee and tea products and license

their trademarks through other channels such as licensed stores, grocery and

national food service accounts. In addition to their flagship Starbucks Coffee

brand, Starbucks also offers goods and services under the following brands:

Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, Ethos and

Torrefazione Italia Coffee.

Verizon is the largest wireless telecommunications provider in the United

States. The company offers the largest 4G LTE network in America and the

nation’s largest high-speed 3G network. For residential customers, Verizon

FiOS is America’s largest 100% fiber-optic network to the home, providing the

nation’s fastest, most consistent and most reliable Internet service, as well as

TV with the best picture quality. For large businesses, Verizon is a global IP

leader, operating one of the worlds’ most connected public Internet backbone

networks, delivering solutions that let customers securely connect, communi-

cate and collaborate around the globe.

Founded in Southern California in 1995, GoWireless is a Verizon Authorized

Retailer with over 700 stores across the country. Because of their partnership

with Verizon, GoWireless is able to offer customers quality products and ser-

vices on the nation’s largest 4G LTE network and the largest, most reliable 3G

network.

Tenant Overviews

Seattle, Washington NASDAQ: SBUX 1985 22,500+ www.starbucks.com

Headquarters Stock Symbol Founded Locations Website

Basking Ridge, New Jersey NASDAQ: VZ 2000 2,330+ www.verizonwireless.com

Headquarters Stock Symbol Founded Locations Website


Located in Florida’s panhandle, Pensacola is surrounded by 50-plus miles of

coastline which includes the emerald-green Gulf of Mexico waters and crystal

clear bay areas. This makes Pensacola the perfect combination of a relaxed beach

town and a bustling metropolitan center. The city sits just east of the Alabama bor-

der and serves as the county seat of Florida’s Escambia County and the principal

city of the Pensacola metropolitan area.

Pensacola has a proud military heritage, thanks to the city’s Naval Air Station. In

addition to being the “Cradle of Naval Aviation,” the Pensacola Bay Area is proud

to call itself home to the renowned Blue Angels, officially known as the U.S. Navy

Flight Demonstration Squadron. The local Pensacola International Airport offers

nonstop air service to nine major U.S. cities, over 1,300 domestic flights and 21

international flights via six major airlines.

The Pensacola metro boasts one of the best business climates in the Southeast

due to its trade and commerce significance. Major industries, such as aerospace

and defense, cyber security, advanced manufacturing and professional services,

benefit from the stable economy and low cost of doing business in the Pensacola

Bay Area. The region is home to over 500 companies, a strong manufacturing

workforce and experienced entrepreneurs.

There is no shortage of entertainment, and Pensacola prides itself on its diverse

and emerging cultures. Annual festivals, events and performances display the re-

gion’s greatest musicians, food, artists, shows and vendors that embody the heart

and history of the area.

3 Milesto Navy Federal Credit

Union Campus

7 Milesto University of West

Florida

12 Milesto Downtown

Pensacola

18 Milesto NAS Pensacola/

Forrest Sherman Field

Location OverviewSUBJECT

PROPERTY


NET LEASED DISCLAIMERMarcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

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.

CONFIDENTIALITY AGREEMENTThe information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical 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, PCBs or asbestos, the compliance with local, 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 offering memorandum 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

[ exclusively listed by ]Jamie A. MedressSenior Managing Director602 687 [email protected]

Chris N. LindFirst Vice President 602 687 [email protected]

Zack HouseAssociate Advisor 602 687 [email protected]

Mark J. RubleSenior Managing Director602 687 [email protected]

Offices Nationwidewww.marcusmillichap.com

Ryan NeeBroker of RecordLicense #: BK3154667

STARBUCKS & VERIZON · 2020-03-04 · Rent Roll Lessee Information as of February 2020 SUITE TENANT...

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