16-18 Mall Road - BARBOURSVILLE, WEST VIRGINIA 25504
CHIPOTLE | MATTRESS F IRMO F F E R I N G M E M O R A N D U M
ACTUAL 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0331912 1
16-18 Mall Road - BARBOURSVILLE, WEST VIRGINIA 25504
Financia l Overv iew
PRICE: $4,206,479
CAP RATE: 6.05%
NOI: $254,492
PRICE PER SQUARE FOOT: $562.36
RENT PER SQUARE FOOT: $32.05
YEAR BUILT: 2013
APPROXIMATE LOT SIZE: 0.88 Acres
GROSS LEASEABLE AREA: 7,480 SF
TYPE OF OWNERSHIP: Fee Simple
OFFERING SUMMARY
Tenant Guarantor GLA % of GLALease
Commencement
Lease
Expiration
Term
RemainingAnnual Rent Rent (PSF) Increases
Lease
TypeOptions
Mattress FirmMattress Firm,
Incorporated5,100 68.18% 8/1/2013 7/31/2023 6 Years $168,300 $33.00 10% Every 5 NN 4, 5-Year
Chipotle
Chipotle Mexican Grill
of Colorado, Limited
Liability Company
2,380 31.82% 2/1/2014 1/31/2024 6.5 Years $71,400 $30.00 10% Every 5 NN 4, 5-Year
Total 7,480 100% $239,700
BASE RENT $256,530*EXPENSE REIMBURSEMENTS
REAL ESTATE TAXES $17,332INSURANCE $7,546CAM $13,666TRASH REMOVAL REIMBURSEMENT $1,093
TOTAL EXPENSE REIMBURSEMENTS $39,636EFFECTIVE GROSS INCOME $296,166EXPENSES
REAL ESTATE TAXES $17,332INSURANCE $7,546CAM
ELECTRIC $3,688LANDSCAPING $4,770SNOW REMOVAL $2,226REPAIRS & MAINTENANCE $318TRASH REMOVAL $5,002
TOTAL CAM $16,004MANAGEMENT FEE (2% OF EGI) $793TOTAL EXPENSES $41,674
NET OPERATING INCOME $254,492*Reflects Mattress Firm 8/1/2018 Rent Increase
TENANT SUMMARYACTUAL 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0331912 2
16-18 Mall Road - BARBOURSVILLE, WEST VIRGINIA 25504
Investment Overv iew
• Two-Tenant Pad Site to Huntington Mall in Barboursville, West Virginia | 14 Miles East of Huntington | The Second Largest City in West Virginia
• Chipotle and Mattress Firm Signed 10-Year Leases Beginning in 2014 and 2013 Respectively | Each Lease Features a 10 Percent Increase in Year Six and in Each Option | Four, Five-Year Options
• Double-Net (NN) Leases | Limited Landlord Responsibilities | Tenants are Reimbursing for Common Area Maintenance, Real Estate Taxes, and Insurance
• Huntington Mall | Power Center Regional Mall with More Than 1.9 million Square Feet of Retail | The Largest Mall in West Virginia | Anchored by National Credits | More Than 960,000 Additional Square Feet of Retail within Five Miles of this Asset
• Tanyard Station | $86 Million Redevelopment Project Less Than Five Miles from Subject Asset | 200,000 Square Feet of Retail, Restaurants, a Bank, a Hotel, and a Gas Stations
• Ideally Located at the Signalized, Hard Corner of East Mall Road and Interstate-64 Exit Ramp | Interstate-64 Sees More Than 40,000 Vehicles Per Day
• Pad Site to 192,000-Square Foot Walmart Super Center | Major Co-Tenancies Feature Hobby Lobby and Ashley Furniture HomeStore
Marcus & Millichap is pleased to present this two-tenant pad site to the Huntington Mall in Barboursville, West Virginia, which is 14 miles east of Huntington, the second largest city in the state. Chipotle and Mattress Firm are operating under net leases reimbursing for common area maintenance, real estate taxes, and insurance. Chipotle and Mattress Firm signed 10-year leases with 10 percent rent increases every five years. Mattress Firm has more than 3,500 locations across the United States. Chipotle is a fast casual restaurant chain that operates 2,198 locations. Chipotle registered $3.9 billion in revenue in 2016 and came in at number 599 in the Fortune 1000 (2017).
The subject property benefits from its proximity to the Huntington Mall, which is a 1.9 million square foot super regional mall, with more than 150 retailers, making it the largest mall in the state. In the past year Dick’s Sporting Goods, Field & Stream, TJ Maxx, and HomeGoods were added to the mall, the two projects totaled $5 million. Additionally, within five miles of this asset there is more than 960,000 square feet of retail space.
Chipotle and Mattress Firm also directly benefit from being on the signalized, hard corner of East Mall Road and the Interstate-64 exit ramp; Interstate-64 sees more than 40,000 vehicles per day. This major interstate connects the St. Louis, Louisville, and Richmond metropolitan areas. Less than five miles away is the $86 million Tanyard Station redevelopment project. This 51.73-acre development site will feature 200,000 square feet of retail, restaurants, a bank, a hotel, and a gas station.
Other Retailers in the immediate trade area include: Lowe’s, Walmart Supercenter, Ashley HomeStore, Hobby Lobby, Chick-fil-A, Burger King, McDonald’s, Wendy’s, La-Z-Boy, Planet Fitness, Bob Evans, IHOP, Kohl’s, Sheetz, The Home Depot, Target, Starbucks, Kroger, and many more.
ACTUAL 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0331912 3
16-18 Mall Road - BARBOURSVILLE, WEST VIRGINIA 25504
Tenant Overv iew - CHIPOTLE
Chipotle Mexican Grill, Incorporated (Inc) operates Chipotle Mexican Grill restaurants, which serve a focused menu of burritos, tacos, burrito bowls and salads, made using fresh ingredients. As of December 31, 2016, the company operated 2,198 Chipotle restaurants throughout the United States, as well as 29 international Chipotle restaurants, and had 23 restaurants in operation in other non-Chipotle concepts. Chipotle focuses on finding the highest quality
ingredients to make great tasting food and building strong community culture in an operationally efficient and aesthetically pleasing manner. Chipotle has grown substantially over the past five years, and expects to open between 195 and 210
additional restaurants in 2017.
TENANT PROFILE
TENANT TRADE NAME Chipotle Mexican Grill, Inc.
OWNERSHIP Public
TENANT Chipotle
LEASE GUARANTOR Corporate
NUMBER OF LOCATIONS 2,250
HEADQUARTERED Denver, Colorado
WEB SITE https://www.chipotle.com/
SALES VOLUME $3.9 Billion (2016)
NET WORTH $1.4 Billion (2016)
STOCK SYMBOL CMG
BOARD New York Stock Exchange (NYSE)
RANK Number 599 in Fortune 1000 (June 2017)
ACTUAL 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0331912 4
16-18 Mall Road - BARBOURSVILLE, WEST VIRGINIA 25504
Tenant Overv iew - Mattress F i rm
With more than 3,600 company-operated and franchised stores across 49 states, Mattress Firm has the largest geographic footprint in the United States among
multi-brand mattress retailers. Founded in 1986, Houston-based Mattress Firm is the nation’s leading specialty bedding retailer with over $3.5 billion sales in 2015. In September 2016, the company was acquired by Steinhoff International for $3.8
billion, and Mattress Firm now operates as a subsidiary of Steinhoff.
The company, through its brands including Mattress Firm, Sleepy’s and Sleep Train, offers a broad selection of both traditional and specialty mattresses, bedding
accessories and other related products from leading manufacturers, including Serta, Simmons and Hampton & Rhodes.
TENANT PROFILE
TENANT TRADE NAME Mattress Firm
OWNERSHIP Private
TENANT Mattress Firm, Incorporated
LEASE GUARANTOR Mattress Firm, Incorporated
NUMBER OF LOCATIONS 3,500
HEADQUARTERED Houston, Texas
WEB SITE www.mattressfirm.com
ACTUAL PROPERTYThis 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0331912 5
16-18 Mall Road - BARBOURSVILLE, WEST VIRGINIA 25504
Aer ia l Overv iew
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0331912 6
16-18 Mall Road - BARBOURSVILLE, WEST VIRGINIA 25504
10 MILE RADIUS
5 MILE RADIUS
3 MILE
SITE
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60
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52
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966
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Aid
Poca
Wayne
Nitro
Summit
Hamlin
Kenova
Milton
Russell
Ashland
Ironville
Meads
Ironton Eleanor
Glenwood
Lesage
Prichard
BurnaughCenterville
Ardel
Winslow
Melissa
Ona
Yates Crossing
Wilson Culloden
Red House
Bancroft
Lavalette Salt Rock
Hurricane
Branchland
Willow Wood
Rock Camp
Sunrise
Scottown
Coal Grove
Crown City
ChesapeakeHuntington
Alum Creek
Tornado
Teays ValleyScare
Cannonsburg
South Point
West Hamlin
Cross Lanes
Proctorville
Saint Albans
Barboursville
GriffithsvilleYawkey
Sod
Ohio
Kentucky
Ohi
oW
est
Vir
gini
a
KentuckyW
est Virginia
Area Overview & Demographics
3-Mile 5-Mile 10-Mile
P o p u l a t i o n2000 Population 12,452 28,402 92,406
2010 Population 13,915 30,040 93,107
2016 Population 13,889 30,496 93,767
2021 Population 13,865 30,521 93,654
3-Mile 5-Mile 10-Mile
H o u s e h o l d s
3-Mile 5-Mile 10-Mile
H o u s e h o l d ( H H ) I n c o m e s2000 Households 5,095 11,587 38,427
2010 Households 5,849 12,594 39,037
2016 Households 5,843 12,823 39,384
2021 Households 5,832 12,840 39,349
2016 Average HH Income $64,790 $66,678 $56,336 2016 Median HH Income $51,328 $52,682 $42,023 2016 Per Capita Income $27,257 $28,037 $23,662
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0331912 7
16-18 Mall Road - BARBOURSVILLE, WEST VIRGINIA 25504
Market Overview - Barboursvi l le, WV
Barboursville is a village in Cabell County, West Virginia, United States. It is located near the second largest city in the state,
Huntington, making it a strong and growing retail environment. Barboursville is a part of the Huntington Metropolitan Statistical
Area, the largest in West Virginia.
A historic and bustling city of commerce and heavy industry, Huntington has long-flourished due to its ideal location on the
Ohio River at the mouth of the Guyandotte River. It is home to the Port of Huntington Tri-state, the busiest inland port in the United States. Surrounded by extensive natural resources, the industrial
sector is based in coal, oil, chemicals and steel all of which support Huntington’s diversified economy. The city is a vital rail-to-river transfer point for the marine transportation industry. The railroad founded Huntington as one of the nation’s first planned communities to facilitate the railroad and other transportation
related industries at the railways western terminus.
The city is the home of Marshall University as well as the Huntington Museum of Art; the Big Sandy Superstore Arena; the United States Army Corps of Engineers; the Collis P. Huntington Historical Society and Railroad Museum; Camden Park, one of the world’s oldest amusement parks; the headquarters of the CSX Transportation-Huntington Division, the largest division in the CSX network; and the Port of Huntington Tri-State, the
largest river port in the United States.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0331912 8
Marcus & Mi l l ichap hereby advises al l prospect ive purchasers of Net Leased property as fol lows:
The i n f o rma t i on con t a i ned i n t h i s Ma r ke t i ng B rochu re has been ob t a i ned f r om sou rces we be l i e ve t o be r e l i ab l e. Howeve r, Ma rcus & M i l l i c hap has no t and w i l l no t ve r i f y an y o f t h i s i n f o rma t i on , no r has Ma rcus & M i l l i c hap conduc ted any i n ves t i ga t i on r ega rd i ng t hese ma t t e r s . Ma rcus & M i l l i c hap makes no gua ran t ee, wa r r an t y o r r ep resen t a t i on wha t soeve r abou t t he accu racy o r comp le t eness o f an y i n f o rma t i on p ro v i ded .
As t he Buye r o f a ne t l e a sed p rope r t y, i t i s t he Buye r ’s r e spons i b i l i t y t o i ndependen t l y con f i rm t he accu racy and comp le t eness o f a l l ma te r i a l i n f o rma t i on be fo re comp le t i ng any pu r chase. Th i s Ma rke t i ng B rochu re i s no t a subs t i t u t e f o r you r t ho rough due d i l i gence i n ves t i ga t i on o f t h i s i n ves tmen t oppo r t un i t y. Ma rcus & M i l l i c hap e xp ress l y den i e s any ob l i ga t i on t o conduc t a due d i l i gence e xam ina t i on o f t h i s P rope r t y f o r Buye r.
Any p ro j ec t i ons , op i n i ons , a s sump t i ons o r e s t ima tes used i n t h i s Ma r ke t i ng B rochu re a r e f o r e xamp le on l y and do no t r ep resen t t he cu r r en t o r f u t u r e pe r f o rmance o f t h i s p rope r t y. The va l ue o f a ne t l e a sed p rope r t y t o you depends on f ac to r s t ha t shou l d be e va l ua t ed by you and you r t a x , f i n anc i a l and l ega l adv i so r s .
Buye r and Buye r ’s t a x , f i n anc i a l , l ega l , and cons t r uc t i on adv i so r s shou l d conduc t a ca re f u l , i ndependen t i n ves t i ga t i on o f an y ne t l e a sed p rope r t y t o de t e rm ine t o you r sa t i s f ac t i on w i t h t he su i t ab i l i t y o f t he p rope r t y f o r you r needs .
L i ke a l l r ea l e s t a t e i n ves tmen t s , t h i s i n ves tmen t ca r r i e s s i gn i f i c an t r i s k s . Buye r and Buye r ’s l ega l and f i n anc i a l adv i so r s mus t r eques t and ca re f u l l y r e v i ew a l l l ega l and f i n anc i a l documen t s r e l a t ed t o t he p rope r t y and t enan t . Wh i l e t he t enan t ’s pas t pe r f o rmance a t t h i s o r o t he r l oca t i ons i s an impo r t an t cons i de r a t i on , i t i s no t a gua r an t ee o f f u t u r e success . S im i l a r l y, t he l ease r a t e f o r some p rope r t i e s , i n c l ud i ng new l y -cons t r uc t ed f ac i l i t i e s o r new l y - acqu i r ed l oca t i ons , may be se t based on a t enan t ’s p ro j ec t ed sa l e s w i t h l i t t l e o r no r eco rd o f ac t ua l pe r f o rmance, o r compa rab l e r en t s f o r t he a r ea . Re tu r ns a r e no t gua r an t eed ; t he t enan t and any gua r an to r s may f a i l t o pay t he l ease r en t o r p rope r t y t a xes , o r may f a i l t o comp l y w i t h o t he r ma te r i a l t e rms o f t he l ease ; cash f l ow may be i n t e r r up t ed i n pa r t o r i n who l e due t o ma rke t , econom ic, env i r onmen ta l o r o t he r cond i t i ons . Rega rd l e s s o f t enan t h i s t o r y and l ease gua r an t ees , Buye r i s r e spons i b l e f o r conduc t i ng h i s /he r own i n ves t i ga t i on o f a l l ma t t e r s a f f ec t i ng t he i n t r i n s i c v a l ue o f t he p rope r t y and t he va l ue o f an y l ong- t e rm l ease, i n c l ud i ng t he l i k e l i hood o f l oca t i ng a r ep l acemen t t enan t i f t he cu r r en t t enan t shou l d de f au l t o r abandon t he p rope r t y, and t he l ease t e rms t ha t Buye r may be ab l e t o nego t i a t e w i t h a po ten t i a l r ep l acemen t t enan t cons i de r i ng t he l oca t i on o f t he p rope r t y, and Buye r ’s l ega l ab i l i t y t o make a l t e r na t e use o f t he p rope r t y.
By accep t i ng t h i s Ma r ke t i ng B rochu re you ag ree t o r e l ease Ma rcus & M i l l i c hap Rea l E s t a t e I n ves tmen t Se r v i ces and ho l d i t ha rm less f r om any k i nd o f c l a im , cos t , e xpense, o r l i ab i l i t y a r i s i ng ou t o f you r i n ves t i ga t i on and /o r pu r chase o f t h i s ne t l e a sed p rope r t y.
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