TRACTOR SUPPLY ANCHORED SHOPPING CENTER … · gels flight demonstration team and the National...

TRACTOR SUPPLY ANCHORED SHOPPING CENTER Exclusive Investment Property

3 W. Nine Mile Road Pensacola, Florida 32534

EXCLUSIVE OFFERING MEMORANDUM PRESENTED BY: Michael Jaworski Doug Passon Robert Bender D: 248.419.3807 D: 248.254.3407 D: 248.254.3406 [email protected] [email protected] [email protected] Senior Associate Managing Partner Managing Partner

mailto:[email protected]?subject=Plaza%20North%20-%20Tractor%20Supply%20Center

TRACTOR SUPPLY ANCHORED SHOPPING CENTER Exclusive Investment Property - Value Add



DISCLOSURE :

All materials and information received or derived from Fortis Net Lease (hereinafter collectively referred to as “FNL”), its directors, officers, agents, advisors,

affiliates and/or any third party sources are provided without representation or warranty by FNL its directors, officers, agents, advisors, or affiliates as to com-

pleteness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, suitability, financial

performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.

Neither FNL its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the

any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for

review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. FNL will not

investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

ALL PARTIES SHALL CONDUCT THEIR OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE:

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investiga-

tions including through appropriate third party independent professionals selected by such party.

All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent

professionals. FNL makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. FNL

does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that

used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided

to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental

limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property.

Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax at-

torney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the prop-

erty complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consult-

ants and governmental agencies. All properties and services are marketed by FNL in compliance with all applicable fair housing and equal opportunity laws.

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INVESTMENT SUMMARY

Price: $TBD

Price/RSF: $TBD

Rentable SF: 77,751

Building SF (used for CAM): 81,848

Price/Total SF: $TBD

Occupancy: 76%

Land Size: 8.05 Acres

NOI In-Place: $403,000 +/-

Going-In Cap Rate: TBD

Pro-Forma Cap Rate: 11.8%

Levered IRR: 22.36% (Inclusive of Deferred Maintenance)

Debt: Delivered Free and Clear. Debt quotes have been received. Estimate

70% LTV, 5.0%, 25-Year Amort.

CLICK HERE FOR GOOGLE MAP VIEW OF SUBJECT PROPERTY

CLICK HERE TO EMAIL ME REGARDING SUMBITTING AN OFFER

INVESTMENT HIGHLIGHTS

100,000 AADT (From multiple directions)

Hard Corner, lighted intersection

Perfect Tenant Mix: Tractor Supply, CitiTrends, Hibbett Sports, Buddy’s

Home Furnishing, others

Upside as market rebounds and vacancies are filled

LOCATION HIGHLIGHTS

Hard Corner, lighted intersection

Directly off of Pensacola Boulevard and West 9 Mile Road

Major retail corridor, WalMart, Home Depot, Lowes, Office Depot, KFC, etc.

all in immediate area

Average Household income over $58,000

Please Contact Broker for CA to receive full Rent Roll and Financials


https://www.google.com/maps/place/3+W+9+Mile+Rd,+Pensacola,+FL+32534/@30.5316463,-87.2739681,17z/data=!3m1!4b1!4m2!3m1!1s0x889095ba577c3523:0x240a224134388392

mailto:%[email protected]?subject=Plaza%20North%20-%20Pensacola,%20FL

mailto:[email protected]?subject=Plaza%20North




Year Ending May 2016 May 2017 May 2018 May 2019 May 2020

Net Operating Income $ 403,489 $ 531,536 $ 589,607 $ 588,154 $ 591,373

Debt Service $ 245,528 $ 245,528 $ 245,528 $ 245,528 $ 245,528

Tenant Improvements & Leasing Commissions & Capital Improvements $ 181,606 $ 159,277 $ 16,497 $ 34,997 $ 17,502

Net Cash Flow $ -23,645 $ 126,731 $ 327,582 $ 307,629 $ 328,343

Cash-on-Cash -1.58% 8.45% 21.84% 20.51% 21.89%

Average Cash-on-Cash 14.22% **

Unlevered IRR 12.65%

Levered IRR 22.36%

**This includes Tenant Improvements/Commissions and rollover.

The pro-forma is based on historical financials and lease abstracts

Argus file is available

Debt: Delivered Free and Clear. Debt quotes have been received. Estimate 70%

LTV, 5.0%, 25-Year Amortization





INVESTMENT OVERVIEW

Fortis Net Lease is pleased to present this multi tenant investment property. Plaza North is a Tractor Supply anchored neighborhood shopping center in the

Ensley submarket of Pensacola. The property sits on the hard corner and lighted intersection of West 9 Mile Road and Palafox Drive. It is also at the exit/

entrance ramp of Pensacola Boulevard, a major north/south road through the region. A significant retail presence surrounds the property including

Walgreens, Walmart, Lowe’s, Office Depot, to name a few.

The property currently has 77,751 rentable square foot with about 4,000 grey box square footage between Tractor Supply and Citi Trends that can be con-

verted into additional rentable square footage. Citi Trends has just renewed for 5 years with a 10% rental increase. Most of the larger tenants are leased into

2020 and beyond.

Using Market Leasing Rates, the property should yield cash-on-cash and IRR yields approaching 20% upon stabilization. SEE ARGUS

Tractor Supply Company is the largest operator of rural lifestyle retail stores in the United States. The company operates over 1,400 retail stores

in 49 states, employs more than 21,000 team members and is headquartered in Brentwood, Tenn. Its stock is traded on the NASDAQ exchange

under the symbol "TSCO". The company was founded in 1938 as a mail order catalog business offering tractor parts to America's family farmers.

Today Tractor Supply is a leading edge retailer with annual revenues of approximately $5.7 billion.

Citi Trends is a value-priced retailer of urban fashion apparel, shoes, accessories and home décor for the entire family. Our merchandise

offerings are designed to appeal to the preferences of fashion & value conscious consumers. Our goal is to provide nationally recognized

branded merchandise at discounts off department and specialty stores’ regular prices of 20% to 70%. Citi Trends buyers source merchandise

from over 1600 vendors to deliver quality fashion product at outstanding value for our customers. In May 2005, Citi Trends became a publicly

traded company on the Nasdaq exchange with the symbol CTRN. Citi Trends' headquarters are located in Savannah, Georgia. In addition to

the corporate office in Savannah, we have one distribution center in Darlington, South Carolina and another in Roland, Oklahoma. We have buying offices in New York

City and Los Angeles. We operate 515 stores in 31 states and employ approximately 4500 people.

Hibbett Sports is one of the fastest growing retailers in the country. We have over 1,000 stores in 31 states, with each location specifically de-

signed to serve its community and its customers. With names like Nike, Under Armour, Adidas, The North Face, Jordan and Costa, we bring

fashion and footwear together for you and your game. Whether you’re shopping for yourself or the whole team, we have you covered from head

to toe.





LOCATION OVERVIEW

Pensacola is the westernmost city in the Florida Panhandle and the county seat of Escambia County, Florida, United States. Pensacola is the principal city of the Pensacola metro-

politan area, which had an estimated 461,227 residents in 2012.

Pensacola is a sea port on Pensacola Bay, which is protect-

ed by the barrier island of Santa Rosa and connects to

the Gulf of Mexico. A large United States Naval Air Station,

the first in the United States, is located southwest of Pen-

sacola (near Warrington); it is the base of the Blue An-

gels flight demonstration team and the National Naval Avi-

ation Museum. The main campus of the University of West

Florida is situated north of the city center and a few miles

east of the subject property. There are a number of annual

festivals, events, historic tours, and landmarks. The Pen-

sacola Seafood Festival and The Pensacola Crawfish Festi-

val held in the heart of historic Downtown has been held

for nearly 30 years with live music acts. The Great

Gulfcoast Arts Festival is held annually in November

in Seville Square often drawing more than 200 regional

and international artists as well as The Children's Art Festival which is held in the same park featuring art by children from local area schools.





SUBJECT PICTURES





DEMOGRAPHICS

Population 1 Mile 3 Mile 5 Mile

2014 Total Population: 4,691 41,686 98,441

2019 Population: 4,850 42,826 100,873

Pop Growth 2014-2019: 3.39% 2.73% 2.47%

Average Age: 38.7 39.7 38.5

Households

2014 Total Households: 1,911 16,751 38,180

HH Growth 2014-2019: 3.3% 2.76% 2.47%

Avg. Household Size: 2.4 2.4 2.4

2014 Avg. HH Vehicles: 2.0 2.0 2.0

Population: 1 Mile 3 Mile 5 Mile

2014 Estimate 4,691 41,686 98,441

2010 Census 4,558 41,323 98,205

Growth 2014-2019 3.39% 2.73% 2.47%

2014 Population by Race:

White 3,284 29,674 71,371

Black 1,126 9,451 20,262

Am. Indian & Alaskan 69 410 880

Asian 59 998 3,010

Hawaiian & Pacific Island 4 21 119

Other 150 1,132 2,800

Households:

2019 Projection 1,974 17,213 39,123

2010 Census 1,869 16,656 38,310

Growth 2014- 2019 3.3$ 2.76% 2.47%

Owner Occupied 1,223 11,576 24,892

Renter Occupied 688 5,174 13,288

2014 Avg. Household Income $58,202 $58,095 $60,039

2014 Households by Household Income:

<$25,000 571 4,387 10,220

$25,000 - $50,000 465 4,347 8,592

$50,000 - $75,000 516 3,679 8,592

$75,000 - $100,000 231 2,315 4,952

$100,000 - $125,000 39 1,080 2,371

$125,000 - $150,000 26 318 852

$150,000 - $200,000 50 501 983

$200,000+ 14 125 330


MORE THAN $3.4 BILLION IN SALES Fortis Net Lease is a national investment real estate brokerage firm specializing in the acquisition and disposition of investment real estate. We

help developers, franchisees, private investors and institutional funds accomplish their short and long term investment goals. The principals of

Fortis Net Lease have successfully sold hundreds of properties in over three dozen states with a total transaction volume topping $3.4 billion.

Fortis Net Lease specializes in the acquisition and disposition of the following:

Net leased single tenant properties (Pharmacies, Auto Parts, Dollar Stores, Banks, QSR, Office/Industrial, Medical, Junior/Big Box, etc.)

Portfolios & Corporate Sale-Leaseback Transactions (Burger King, Arby’s, Tutor Time, Taco Bell, Wendy’s, etc.)

Multi-Tenant Retail Centers & Medical Office (Anchored or Unanchored - 5,000 - 1,000,000 SF)

The advisors at Fortis Net Lease create long term relationships with our investors by delivering superior services and unparalleled results. When

you hire Fortis Net Lease as your exclusive representative you will experience the individual attention and professionalism that you will not re-

ceive at other large brokerage firms.

OUR TEAM

DOUG PASSON ROB BENDER RICHARD LUDWIG BRYAN BENDER DENO BISTOLARIDES MARVIN DELAURA

Managing Partner Managing Partner Senior Director Senior Director Senior Director Senior Associate

(248)254.3407 (248) 254.3406 (248) 254.3410 (248) 254-3410 (248) 254.3410 (248) 254.3410

MIKE CARTER PAT HAMMOND MIKE JAWORSKI DANTE HARGIS MATT WEBER FRANK ROGERS

Senior Associate Senior Associate Senior Associate Senior Associate Senior Associate Associate

(248) 254-3410 (248) 254.3410 (248) 254.3410 (248) 254.3410 (248) 254.3410 (248) 254.3410

BEN SCHULTZ KYLE CARSON TRACY RISCH FORTIS NET LEASE

Business Development Business Development Coordinator 30445 Northwestern Highway, Suite 345

(248) 254-3410 (248) 254.3410 (248) 254.3410 Farmington Hills, MI 48334

This information is deemed confidential and privileged and may contain inside information. If you are not the intended receiver do not read, copy or distribute this offering memorandum, instead delete or destroy it and contact one of our representatives. This

information is believe to be accurate but is not represented or warranted by Fortis Net Lease or any of our agents or contractors.

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