Representative Photo. Offering Memorandum R E T A I L A D V I S O R S

Transcription

1 Representative Photo Pep Boys 2408 Northpark Dr, Kingwood TX Offering Memorandum R E T A I L A D V I S O R S

2 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Pep Boys located at 2408 Northpark Dr, Kingwood TX ( Property ). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Matthews Retail Advisors

3 Table of Contents Pricing & Financial Analysis Investment Overview...2 Investments Highlights...2 Executive Summary...3 Property Description Physical Description...7 Aerial Map...8 Regional Map...9 Birds Eye Demographics City Overview Kingwood, TX Demographics Report EXCLUSIVELY LISTED BY: Braden Crockett Senior Associate direct MOBILE License No Mark Cohen Broker of Record License No

4 Matthews Retail Advisors REPRESENTATIVE PHOTO

5 Pricing & Financial Analysis

6 INVESTMENT OVERVIEW Investments Highlights Purchase price of only $1,168,000 or an attractive 6.50% cap rate Absolute NNN lease No Landlord Responsibilities. Newer Business Model Service Only Location Strong Demographics over $100,000 Average incomes in the 3 and 5 Mile radii. Explosive Growth in Population Strong Traffic Counts Almost 30,000 cars per day National Retailers in the vicinity include McDonalds, Walgreens, Gold s Gym, Walmart Neighborhood Center, and Starbucks. Down the Street from Kingwood Park High School Renovated in 2011 when acquired by Pep Boys Rent is flat for the initial 10 year term - suggests under market rent at renewal. Attractive Financing Available Over 100,000 people in a 5-mile radius P. 2 Matthews Retail Advisors REPRESENTATIVE PHOTO OFFERING MEMORANDUM Pep Boys

7 PRICING ANALYSIS EXECUTIVE SUMMARY Pep Boys 2408 Northpark Dr Kingwood TX List Price... $1,167,692 CAP Rate - Current % Gross Leasable Area... 3,950 SF Lot Size Acres ( 31,711 SF) Year Built Annualized Operating Data Monthly Rent Annual Rent Rent/SF CAP Rate Current - 8/31/2021 $6, $75, $ % Option 1-8/31/2026 $6, $83, $ % Option 2-8/31/2031 $7, $91, $ % Option 3-8/31/2036 $8, $101, $ % Tenant Summary Tenant Trade Name Pep Boys Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 10 Years Lease Commencement Date 9/1/2011 Rent Commencement Date 9/1/2011 Lease Expiration Date 8/31/2021 Term Remaining on Lease +/- 5.5 Years Increases 10 % in the Options Options 3,5 Year Options Pep Boys OFFERING MEMORANDUM Matthews Retail Advisors P. 3

8 COMPANY OVERVIEW Property Name Pep Boys Gross Leasable Area 3,950 SF Property Type Net Leased Auto Parts Service Parent Company Trade Name Pep Boys Inc. Ownership Public Credit Rating B Rating Agency Standard & Poor s Revenue $2.09 Billion Net Income $13.16 Million Stock Symbol PBY Board NYSE No. of Locations ±800 No. of Employees ±18,000 Headquartered Philadelphia, PA Web Site Year Founded 1921 The Pep Boys: Manny, Moe & Jack, (branded as and commonly abbreviated as Pep Boys) is a full-service and tire automotive aftermarket chain.the first store, originally named Pep Auto Supplies, was founded in Philadelphia, Pennsylvania in 1921 by Emanuel (Manny) Rosenfeld, Maurice L. (Moe) Strauss, W. Graham (Jack) Jackson, and Moe Radavitz. Currently headquartered in the Allegheny West section of Philadelphia, Pep Boys operates more than 800 stores and approximately 7,000 service bays in 35 states and Puerto Rico. Along with its full-service vehicle maintenance and repair capabilities, the company also serves the commercial auto parts delivery market. It is one of the leading sellers of replacement tires in the United States, and in 2005 was named one of the 500 fastest-growing U.S. companies. It operates service locations that offer a range of automotive maintenance and repair services; and install tires, parts, and accessories. The company sells new and remanufactured parts for vehicles; chemicals and maintenance items; fashion, electronic, and performance accessories; and nonautomotive merchandise. P. 4 Matthews Retail Advisors OFFERING MEMORANDUM Pep Boys

9 PROPERTY DESCRIPTION

10 P. 6 Matthews Retail Advisors OFFERING Actual MEMORANDUM Property Pep Boys

11 PROPERTY PHYSICAL DESCRIPTION THE OFFERING Property Name...Pep Boys Property Address Northpark Dr Kingwood TX Assessor s Parcel Number SITE DESCRIPTION Number of Stories...One Year Built Gross Leasable Area (GLA)... 3,950 SF Lot Size Acres (31,711 SF) Type of Ownership... Fee Simple Parking Surface Spaces Parking Ratio : 1,000 SF Landscaping...Professional Topography... Generally Level CONSTRUCTION Foundation... Concrete Slab Framing... Wood Exterior... Brick Parking Surface...Concrete Roof...Pitched Pep Boys OFFERING MEMORANDUM Matthews Retail Advisors P. 7

12 BIRDS EYE CPD: 28,000 P. 8 Matthews Retail Advisors OFFERING MEMORANDUM Pep Boys

13 PROPERTY REGIONAL DESCRIPTION MAP Pep Boys OFFERING MEMORANDUM Matthews Retail Advisors P. 9

14 TENANT MAP P. 10 Matthews Retail Advisors OFFERING MEMORANDUM Pep Boys

15 DEMOGRAPHICS

16 DEMOGRAPHIC ANALYSIS CITY OVERVIEW Kingwood, TX Kingwood, also know as the Livable Forest, was created by the Friendswood Development Company in 1971 and has grown rapidly since. The new community was named Kingwood after King Ranch, one of the original developers before being bought by the Friendswood Development Company. Kingwood is best known for being a community that exists in harmony with nature. Kingwood s heavily wooded acreage is canopied with tall pines and magnolias, along with 20 other types of shade trees. The community is also host to a variety of wildlife including deer, fish, birds, and more, that can be found in the 500+ acres of private nature preserves and parks. Over 75 miles of hike and bike trails, known as the greenbelt, run through Kingwood s naturally beautiful woods and lakes. Kingwood is also a thriving commercial center. Big name retail, shopping, and dining venues call Kingwood home, and can be found throughout the area, mostly near the front of Kingwood Drive and in Kingwood s Town Center off of Lake Houston Parkway. In addition, Kingwood is only three miles North of Deerbrook Mall and Humble, Texas commerical centers. Kingwood is generally considered to have good commute times relative to surrounding Houston communities. And there s always something entertaining to do in Kingwood, which boasts of over 100 different clubs and organizations, a myriad of parks, and two private clubs--deerwood Club and the Kingwood Country Club, which provide challenging and beautiful golf courses. P. 12 Matthews Retail Advisors OFFERING MEMORANDUM Pep Boys

17 DEMOGRAPHICS ANALYSIS REPORT Population 3-Mile 5-Mile 7-Mile 2020 Projection 71, , , Estimate 67, , , Census 62, , , Census 52,338 80, ,767 Growth % 24.23% 46.13% Growth % 9.59% 12.10% Growth % 7.95% 9.53% Households 2020 Projection 27,992 44,240 79, Estimate 25,969 40,722 72, Census 23,706 36,776 65, Census 18,597 27,920 43,593 Growth % 31.72% 49.19% Growth % 10.73% 11.35% Growth % 8.64% 9.45% Income $0 - $15, % 6.27% 6.45% $15,000 - $24, % 7.41% 7.26% $25,000 - $34, % 7.01% 7.41% $35,000 - $49, % 11.48% 12.25% $50,000 - $74, % 15.48% 17.78% $75,000 - $99, % 13.96% 14.15% $100,000 - $124, % 9.86% 10.43% $125,000 - $149, % 7.80% 7.52% $150,000 - $199, % 9.66% 8.28% $200,000 - $249, % 3.91% 3.14% $250,000 - $499, % 5.26% 4.00% $500, % 1.90% 1.33% 2015 Est. Average Household Income $101,732 $105,456 $96, Est. Median Household Income $76,692 $79,198 $73,385 Pep Boys OFFERING MEMORANDUM Matthews Retail Advisors P. 13

18 Pep Boys 2408 Northpark Dr Kingwood TX OFFERING MEMORANDUM Braden Crockett Senior Associate direct MOBILE License No Mark Cohen Broker of Record License No Matthews Retail Advisors 841 Apollo Street, Suite 150 El Segundo, CA