5137 NC Highway 55, Durham, NC

Transcription

1 (ADT: 91,000 Cars) Lowe s Grove Middle School Research Triangle Park 7,000 Acre Research Center 45,000 Employees NC Hwy 54 (ADT: 36,000 Cars) Kestrel Heights Charter School July 2011 Scheduled Opening Bridgestone Retail Operations, LLC dba Firestone Complete Auto Care 5137 NC Highway 55, Durham, NC EXCLUSIVE LISTING AGENT: Joe Caputo joe@exp1031.com In association with North Carolina Broker of Record: Marc Liles License #: Brand New, Absolute NNN, 15-Year, Corporate Lease w/ 6.5% Rent Increases Every 5-Years Bridgestone Retail Operations, LLC (Lessee) Operates 2,200+ Stores w/ 20,000+ Employees Lessee is a Subsidiary of Bridgestone Corporation, the World s Largest Tire Maker, S&P Rated: BBB+ Located Along NC Hwy 55 (ADT: 31,000 Cars) Off I-70 (ADT: 91,000 Cars) Nearby Retailers Include Target, Best Buy, Food Lion, Sears, Kroger, Starbucks, Subway, McDonald s 4 Miles from Streets of Southpoint Shopping Center 1.3 Million Square Feet of Retail Space 10 Miles South of Downtown Durham Population: 229, Census Adjacent to Research Triangle Park a 7,000 Acre Technology Research Center w/ 45,000+ Employees) Also Near Duke University (13,000 Students) - $3.4 Billion Impact on the City of Durham Durham is the 5 th Largest City in the State and Core of the 4 County Durham MSA 501,226 Residents

2 TABLE OF CONTENTS PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGES 5-8: PAGE 9: PAGE 10: COVER TABLE OF CONTENTS - DISCLAIMER INVESTMENT OVERVIEW - LEASE OVERVIEW - TENANT OVERVIEW SITE PLAN AERIAL PHOTOGRAPHS MARKET OVERVIEW LOCATION MAPS & DEMOGRAPHICS Representative Photo CONFIDENTIAL MEMORANDUM & DISCLAIMER EXP Realty Advisors, Inc. ( Agent ) has been engaged as the exclusive agent for the sale of the building located at 5137 NC Highway 55 in Durham, North Carolina, leased to Bridgestone Retail Operations dba Firestone Complete Auto Care (the Property ), by the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent. TABLE OF CONTENTS - DISCLAIMER 2

3 PRICE: $2,631,000 CAP RATE: 7.25% BUILDING AREA: 7,654+/- Square Feet LAND AREA: 1.12+/- Acres OCCUPANCY: 100% Single Tenant YEAR BUILT: 2011 OWNERSHIP: Fee Simple Interest ADDRESS: 5137 NC Highway 55, Durham, NC Initial Lease Term: Fifteen (15) years Projected Start Date (Occupancy): July 2011 LEASE OVERVIEW Tenant: Bridgestone Retail Operations, LLC dba Firestone Complete Auto Care Leasable Area: An approximately 7,654 SF building on approximately 48,907 SF of land Options to Renew: Four (4), five (5) year options Lease Type: Absolute NNN Roof & structure is the tenant s responsibility after year one (1) Rent Increases: 6.5% every five (5) years Year 1-5 Annual Rent: $190, Year 6-10 Annual Rent: $203, Year Annual Rent: $216, Year Annual Rent (Option 1): $230, Year Annual Rent (Option 2): $245, Year Annual Rent (Option 3): $261, Year Annual Rent (Option 4): $278, BRIDGESTONE RETAIL OPERATIONS, LLC ( BSRO ) World s Largest Chain of Company Owned Auto Care Centers 2,200 Firestone Auto Care, Wheel Works, Tires Plus, Expert Tire - Operate Under BSRO HQ in Bloomington, IL Employees Nearly 22,000 People Subsidiary of Bridgestone Corporation - S&P Rating: BBB+ Automotive service is the largest part of Bridgestone Retail Operations, LLC's business, accounting for approximately 50 percent of sales with tire and financial services making up the rest. Bridgestone Firestone North American Tire manufactures Bridgestone, Firestone, and Dayton truck tires along with tires for virtually every wheeled vehicle made. Harvey S. Firestone ( ) founded The Firestone Tire & Rubber Company in Akron, Ohio, in August 1900, and started marketing solid rubber tires for carriage wheels. Firestone joined the retail store arena offering basic car service and tire sales in the mid-1920s when the original Firestone Service Centers were opened. The 1940s saw the emergence of the Firestone Home & Auto Store - a store concept of a one-stop retailer offering everything from automotive services and tires to large household appliances, televisions, toys, bicycles, lawnmowers and even outboard motors with the Firestone name brand affixed. The evolution of the retail stores continued with the complete Tire & Service Center opening in the 1960s offering expanded diagnostic under-car and under-hood service. In the late 1970s the company, in an effort to re-focus its business solely on automotive service and tire sales, began to phase out the sale of all non-auto related merchandise. Shortly thereafter, in 1981, the Firestone MasterCare Car Service concept was introduced and established as a premier brand of quality service being delivered to customers in a consistent and distinctive manner. Bridgestone Corporation, founded in 1931 in Kurume, Japan, purchased Firestone in 1988, transforming the company into the world's largest manufacturer of tires and other rubber products. Bridgestone and Firestone operations in the Americas were consolidated in 1990as Bridgestone/Firestone, Inc. Bridgestone/Firestone, Inc. initiated a series of changes to its corporate structure in December 2001, reorganizing its operations in the Americas under a holding company, Bridgestone Americas Holding, Inc., and several operating subsidiaries. The largest of these operating subsidiary companies is Bridgestone Retail Operations, LLC. In 2001 Bridgestone/Firestone also announced its majority ownership stake in Morgan Tire & Auto, Inc. (MTA), then the nation's second largest independent retailer of tires. Responsibility for MTA was shifted to Bridgestone Retail Operations, LLC following the reorganization of Bridgestone/Firestone. Today, Bridgestone Retail Operations, LLC and its subsidiaries employ approximately 22,000 teammates in North America. Bridgestone Retail Operations, LLC consists of more than 2,200 company-owned consumer and commercial stores in the United States as well as the company's own credit card operations. The store channels include Firestone Complete Auto Care, Morgan Tire / Tires Plus, Expert Tire, Commercial & Farm, and Mark Morris. Today Bridgestone Retail Operations, LLC operates the largest number of company-owned fullline automotive retail generalist stores in the world. The above information is from INVESTMENT OVERVIEW - LEASE OVERVIEW - TENANT OVERVIEW 3

4 SITE PLAN 4

5 (ADT: 91,000 Cars) NC Hwy 54 (ADT: 36,000 Cars) Lowe s Grove Middle School Research Triangle Park 7,000 Acre Research Center 45,000 Employees Kestrel Heights Charter School LABELED AERIAL 5

6 Lowe s Grove Middle School Kestrel Heights Charter School LABELED AERIAL 6

7 Research Triangle Parks Technology Research Center 7,000 Acres 45,000 Employees Lowe s Grove Middle School Kestrel Heights Charter School LABELED AERIAL 7

8 LABELED AERIAL 8

9 IMMEDIATE TRADE AREA The subject property is located within Durham, North Carolina, approximately 10 miles south of downtown Durham on NC Highway 55 (Traffic: 31,000 cars / day). The property is 1.5 miles south of Interstate-70 (Traffic: 91,000 cars / day) and 4 miles from The Streets at Southpoint shopping center, which is anchored by Macy s and Nordstrom. Neighboring tenants include Food Lion, Big Lots, CVS, Starbucks, Subway, and Taco Bell. Other retailers located within the trade area include Target, Best Buy, Barnes & Noble, Kroger, and Sears. The property is near Kestrel Heights Charter School, Lowe s Grove Middle School, and Research Triangle Park, which employs 39,000+ people. The population within 5 miles is 80,859 and the average household income is $84,003. DURHAM, NORTH CAROLINA With a 2009 population of 229,174, Durham is the fifth largest city in North Carolina and the 85th largest city in the U.S. Durham has a total area of 94.9 square miles, is the county seat of Durham County, and is the home to Duke University and North Carolina Central University. Durham is also one of the vertices of the Research Triangle area (home of the Research Triangle Park). Major employers in Durham are Duke University (39,000 employees, 13,000 students), about 2 miles west of the downtown area, and companies in the Research Triangle Park, about 10 miles southeast. Durham's most famous professional sports team is the Durham Bulls International League baseball team. The Bulls play in the Durham Bulls Athletic Park, on the southern end of downtown, constructed in The stadium has 10,000 seats. Now with one of the newest and most impressive stadiums in the minor leagues, the Bulls usually generate an annual attendance of around 500,000. Duke University offers 26 NCAA Division I sporting teams and competes in the ACC. Duke has won 4 NCAA Division I Men's Basketball Championships, and is third in NCAA Final Four appearances in Men's Basketball with 14. Research Triangle Park Local events include jazz festivals, blues festivals, symphony concerts, art exhibitions, and a multitude of cultural expositions. A center of Durham's culture is its Carolina Theater, which shows both live performances and films, primarily independent releases. The Nasher Museum of Art opened in October 2005 and has produced nationally-recognized traveling exhibitions of leading-edge global, contemporary art. RALEIGH-DURHAM-CARY MSA Duke Chapel at Duke University The Raleigh-Durham-Cary Combined Statistical Area has a population of 1,740,000+ and is often referred to as the Research Triangle, or simple The Triangle. The region is anchored by the research universities of North Carolina State University, Duke University, University of North Carolina at Chapel Hill, and the cities of Raleigh, Durham, and Chapel Hill. Local universities include Duke University, North Carolina Central University, North Carolina State University, Pfeiffer University, and University of North Carolina at Chapel Hill. With the significant number of universities and colleges in the area and the relative absence of major league professional sports, NCAA sports are very popular, particularly those sports in which the Atlantic Coast Conference excels. The University of North Carolina at Chapel Hill Tar Heels in Chapel Hill, North Carolina State University Wolfpack in Raleigh, and the Duke University Blue Devils in Durham are all members of the ACC. The region has only one professional team, the Carolina Hurricanes of the NHL, based in Raleigh. Since moving to the Research Triangle region from Hartford, Connecticut, they have enjoyed great success, including winning a Stanley Cup and advancing to the Eastern Conference Finals. The region's growing high-technology community includes such companies as IBM, SAS Institute, Cisco Systems, NetApp and Credit Suisse First Boston. In addition to high-tech, the region is consistently ranked in the top three in the U.S. with concentration in life science companies. Some of these companies include GlaxoSmithKline, Biogen Idec, BASF, Merck & Co., Novo Nordisk, Novozymes, and Wyeth. Other major employers include American Airlines, Fidelity Investments, General Electric, Sony Ericsson, and Verizon. MARKET OVERVIEW 9

10 2010 DEMOGRAPHIC SNAPSHOT 1 Mile 3 Miles 5 Miles Population Total Population 4,839 33,180 80,859 Male Population 51.8% 48.9% 48.8% Female Population 48.3% 51.1% 51.2% Median Age Population Density (per sq. mi.) 1, , ,028.2 Employees 4,666 22,541 56,734 Establishments 250 1,375 3,341 Income Median HH Income $57,499 $67,015 $66,662 Per Capita Income $33,466 $33,186 $34,444 Average HH Income $72,050 $77,892 $84,003 Households Total Households 2,143 13,968 33,285 Average Household Size Household Growth % 46.9% 55.9% Housing Owner Occupied Housing Units 41.4% 50.6% 55.5% Renter Occupied Housing Units 46.8% 38.6% 33.5% Vacant Housing Units 11.9% 10.9% 11.0% LOCATION MAPS DEMOGRAPHICS 10