1031 Exchange Opportunity

Transcription

1 Northeast Plaza Shopping Center Greenwell Springs Road, Greenwell Springs (Baton Rouge), LA Investment Summary: Northeast Plaza is is an 89,224 square foot grocery anchored shopping center. National tenants make up 66% of the rent roll and include Super Fresh/Save-A-Center, Inc. a subsidiary of the Great Atlantic Pacific Tea Company (NYSE: GAJ / S&P: B-), Dollar General, and Edward Jones Investments. Built in 1982, the project consists of a 42,130 square free standing Sav-A-Center Food Market ("A&P"); as well as Family Dollar, Edward Jones Investments and Dollar General; and 30,220 square feet of Shop Retail Space consisting of national and regional tenants. Northeast Plaza is is strategically located at the intersection of Greenwell Springs Road and Sullivan Road, a major intersection in north central Baton Rouge. Available retail sites in the central portion of the Parish are limited due to large flood plain areas and a lack of developable entitled land. With current traffic counts of 16,031 cars per day at Greenwell Springs Road, the site draws from a 5-7 mile trade area. Plans for a new "Central Thruway" connecting Sullivan Road to Hwy. 190 have been approved by the City of Baton Rouge. This major traffic artery will run north/south and intersect with Sullivan Road just yards from the property's northeastern boundary. This will significantly increasing traffic and should allow the new landlord to increase occupancy and rents. Central Thruway will provide Northeast Plaza with unmatched visibility and access from any location in the surrounding area. Construction on the Central Thruway has commenced and is is expected to be completed by 2005 to A Wal-Mart Super Center opened approximately 4 miles north of the property in As a result, Super Fresh s sales declined from $11.2 million in 2002 to $8.4 million in 2003 and have stabilized at $8.3 million in 2004 and At the current sales volume of $8.3 million, Super fresh has very low economic occupancy of 4.07% (rent divided by sales). As a result of the low rent factor of 4.07% we anticipate that Super Fresh will exercise its renewal option in May Price and Cap: We offer this property at $6,895,000 which is is a 9% CAP based on NOI of $619,638. Property can be acquired with or without the existing debt. With the debt the cash on cash is is 11.41% and 13.96% after principal reduction in Equity required is is $3,162,000 (45%). Loan can be assumed for 1% assumption fee. Loan Summary: Original Amount: $3,860,000 Interest Rate: 5.36% Current balance: $3,733,000 as or 11/1/05 P & I Payment: $258,445 principal reduction in 2006 is is $80,386 Cash Flow: $361,193 Cash On Cash: 11.42% - Cash on cash after principal reduction is is 13.97% Matures: 5/1/08 Lender Escrow: Lender holds $0.15 sf for capital expenditures Defeasance: Yield maintenance to US Treasuries. Current defeasance premium is is $68,184 as of Seller and buyer to split defeasance premium costs 50/50.

2 Major Tenants: Sav-A-Center/Super Fresh: Serving the very best to shoppers in the deep south is what Sav-A-Center Food Markets are all about. From Greater New Orleans to the Mississippi Gulf Coast, Sav-A-Center is truly the place for one-stop-shopping for today's busy consumer. Sav-A-Center continued its growth with the opening of new stores in Chalmette, Uptown, Lakefront, New Orleans East, Metarie, and Westbank, and the enlargement of the Kenner store. Sav-A-Center, now more than ever, is becoming the supermarket of choice for the discriminating shopper. Sav-A-Center is a division of Great Atlantic & Pacific Tea Company (NYSE: GAJ). Dollar General: Dollar General Corporation operates as a discount retailer of general merchandise in the United States. The company, through its retail stores, offers a range of consumable basic merchandise, including health and beauty aids, packaged food products, home cleaning supplies, houseware, stationery, seasonal goods, basic clothing, and domestics primarily to low, middle, and fixed-income families. As of May 10, 2005, Dollar General operated approximately 7,500 stores in 30 states, primarily in the southern, eastern, and midwestern United States. Revenues for the 52 weeks ending January 28th 2005 totaled, $7.66 billion with net income of $344 million. Family Dollar: Family Dollar Stores, Inc., incorporated in 1969, operates a chain of self-service retail discount stores. As of October 1, 2004, there were 5,481 stores in 44 states and the District of Columbia. For the last 12 months ending 8/04 total sales were $5.281 Billion, EBITDA - $512 Million, Total Net Income - $262 Million and Total Assets were $2.167 Billion.

3 Tenant Name RSF Start Lease Experiation Total Annual Rent Rent PSF CAM Recovery Super Fresh 42,130 6/1/2002 5/31/2007 $301,224 $7.15 $10,533 *Family Dollar 8,640 5/1/2006 5/30/2011 $62,640 $7.25 $4,760 Dollar Store 8,234 5/1/2001 4/24/2011 $32,000 $3.89 $0 Video USA 6,011 9/1/1995 8/31/2013 $48,346 $8.04 $13,089 Nine Dragon 3,320 1/28/2005 1/27/2010 $27,100 $8.16 $10,821 Silver Moon Café 3,150 2/1/1992 2/1/1992 $16,538 $5.25 $10,267 See Unit 20 Nine Dragon 2,100 11/1/1999 1/27/2010 $0 $6,845 St Vincent DePaul 2,100 2/1/2003 4/30/2006 $14,700 $7.00 $3,898 Techni-Sun 2,100 9/1/ /30/2009 $20,038 $9.54 $6,845 Cingular Wireless 1,750 11/1/ /31/2008 $17,500 $10.00 $8,352 Ann's Nails 1,425 11/1/2003 9/30/2006 $10,585 $7.43 $4,645 VACANT 1,400 $0 $0.00 $0 US Agencies 1,254 12/1/ /30/2008 $11,396 $9.09 $4,087 Beau Ideal Salon 1,254 10/1/2004 9/30/2007 $11,286 $9.00 $4,087 Kean's Dry Cleaners 1,140 8/1/1999 7/31/2009 $15,390 $13.50 $2,116 VACANT 1,083 $0 Edward Jones 1,083 12/1/ /30/2006 $8,837 $8.16 $3,530 Domino's 1,050 7/1/2003 6/30/2006 $10,800 $10.29 $3,422 See Unit 160 Video USA 0 3/1/2004 8/31/2013 $0 $3,716 See Unit 160 Video USA 0 3/1/2004 8/31/2013 $0 $2,787 Total Base Rent $608,380 Percentage Rent $41,000 TOTAL 89,224 $649,380 $7.28 $103,798 Expense Recoveries (05 Budget) CAM 103,798 including insurance Tax 63,695 Insurance in CAM number Other Income none Recovered Expenses 167, % Percent of Expense Recovery Effective Gross Income 816,873 Operating Expenses (05 Budget) CAM 49,837 includes $660 administrative expense Tax 71,225 Insurance 58,169 Management Fee 18, % percent of base rent Total Operating Expense 197,235 29,742 Non Recovered Expenses 15.1% Net Operating Income 619,638 *Eckerd Drug will occupy this space through approximately 5/1/06 but is obligated to pay rent through 6/30/07. Family Dollar is finalizing lease negotiations for the space as of 1/14/06/

4 Pending Family Dollar store

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6 Pending Family Dollar store

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8 MCHUGH RD ker 2004 Average Income By Block Group $75,000 or more $60,000 to $75,000 $45, to $60,000 $30,000 to $45,000 Less than $30,000 DYER RD PETTIT RD Greenwell Springs, LA CAREY RD BLACKWATER BLACKWATER BLACKWATER BLACKWATER BLACKWATER BLACKWATER BLACKWATER BLACKWATER BLACKWATER RD RD RD RD RD RD RD RD RD TATE TATE TATE TATE TATE TATE TATE TATE TATE ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE JOOR RD GURNEY RD UTE UTE UTE UTE UTE UTE TE Miles 5.00 Miles 3.00 Miles STATE STATE Pride GREENWELL SPRINGS RD DENHAM RD 408 BEND BEND BEND BEND BEND BEND BEND BEND BEND RD Watson HUNSTOCK RD FORE FORE FORE FORE FORE FORE FORE FORE FORE WAY WAY WAY WAY WAY WAY WAY WAY WAY RD RD RD RD RD RD RD RD RD 1024 SP CANE M DDD D RD AVE OD ST Brownfields ANGELINE ST N ST MICKENS MICKENS MICKENS MICKENS MICKENS MICKENS MICKENS MICKENS MICKENS RD RD RD RD RD RD RD RD RD 408 Merrydale 946 LOVETT RD JOOR JOOR JOOR JOOR JOOR JOOR JOOR JOOR JOOR DR DR FLANNERY RD n Monticello Greenwell Springs 37 FRENCHTOWN RD MORGAN MORGAN MORGAN MORGAN MORGAN MORGAN MORGAN MORGAN MORGAN RD RD RD RD RD RD RD RD RD COCKERHAM RD CENTERVILLE LINDER LINDER LINDER LINDER LINDER LINDER LINDER LINDER LINDER RD RD RD RD RD RD RD RD RD ARNOLD R BURGESS BURGESS BURGESS BURGESS BURGESS BURGESS BURGESS BURGESS BURGESS RD BURGE A ST ST ENT ST ARD ST BANKERS AVE LEE DR ARDENWOOD ARDENWOOD ARDENWOOD ARDENWOOD ARDENWOOD ARDENWOOD ARDENWOOD ARDENWOOD ARDENWOOD DR DR DR DR DR DR DR DR DR AIRLINE AIRLINE AIRLINE AIRLINE AIRLINE AIRLINE AIRLINE AIRLINE AIRLINE HWY HWY HWY HWY HWY HWY HWY HWY HWY LOBDELL AVE AIRPORT AIRPORT AIRPORT AIRPORT AIRPORT AIRPORT AIRPORT AIRPORT AIRPORT AVE AVE AVE AVE AVE AVE AVE AVE AVE MONTERREY BLVD DRUSILLA DRUSILLA DRUSILLA DRUSILLA DRUSILLA DRUSILLA DRUSILLA DRUSILLA DRUSILLA LN CEDARCREST AVE CEDARCREST AVE Westminster Demographics SHERWOOD FOREST BLVD SHERWOOD FOREST BLVD 190 CHOCTAW DR MILLERVILLE RD COURSEY BLVD STRAIN RD O O O O O O O O O NEAL NEAL NEAL NEAL NEAL NEAL NEAL NEAL NEAL LN LN LN LN LN LN LN LN LN Shenandoah Denham Springs 12 MONITOR AVE 4-H 4-H 4-H 4-H 4-H 4-H 4-H 4-H 4-H CLUB CLUB CLUB CLUB CLUB CLUB CLUB CLUB CLUB RD RD RD RD RD RD RD RD RD 16 HARRIS HARRIS HARRIS HARRIS HARRIS HARRIS HARRIS HARRIS HARRIS RD RD RD RD RD RD RD RD RD STATE STATE STATE STATE STATE STATE STATE STATE STATE ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE Greenwell Springs Road Greenwell Springs, LA Estimates 3 Mile 5 Mile 7 Mile Total Population: 18,863 80, ,439 Total Households: 6,596 29,568 66,866 Avg. HH Income: $61,868 $55,803 $52,702 Med. HH Income: $54,355 $47,979 $44,281 Updates of 2000 Census Data by Claritas. JUBAN JUBAN JUBAN JUBAN JUBAN JUBAN JUBAN JUBAN JUBAN RD D D D D D D D D D K K K K K K K K K HARRIS HARRIS HARRIS HARRIS HARRIS HARRIS HARRIS HARRIS HARRIS