Investment Property Offering PEP BOYS $1,472,000 535 Skyland Blvd East, Tuscaloosa, AL 35405 Presented By: Kase Abusharkh DRE#01311211 252 Abigail Circle Danville, CA 94506 (925)348-1844 kase@svn.com Offering Highlights Pep Boys (NYSE: PBY) Guarantee Long Term Net Lease 10% Increases in Rent Every 5 Years Well Located, Hard Corner Location 02/29/2012 All Sperry Van Ness Offices Independently Owned and Operated.
Table of Contents 1 Financial Analysis Executive Summary Investment Information Rent Roll Summary 2 Additional Information
All Sperry Van Ness Offices Independently Owned and Operated. 1. Financial Analysis
PEP BOYS Executive Summary 535 Skyland Blvd East Tuscaloosa, AL 35405 List Price $1,472,000 Price per S.F. $257.30 CAP 7.75 % Building S.F. 5,721 Percent Occupied 100.00 % Land Acres 1.88 Net Leased Pep Boys Cross Street McFarland Boulevard E. Market Alabama Sub Market Tuscaloosa Year Built 2008 Building Class A Location Class A No. of Buildings 1 HVAC Yes No.Tenants 1 No. Stories 1 Property Descriptions Construction New construction was completed in 2008. Parking The asset is adequately parked. Ingress/Egress The property provides excellent ingress and egress. Major Tenants The Pep Boys - Manny, Moe & Jack (NYSE: PBY) is a leading automotive parts and accessories retailer and automotive maintenance and service provider. Since 1921, Pep Boys has become known as the broadest provider of customer satisfaction in the automotive aftermarket, focusing on each customer as if the company had only one store. Pep Boys serve-all approach divides the automotive aftermarket in four segments: do-it-yourself, do-it-for-me (service), buy-for-resale (sales to professional garages) and tire sales. Pep Boys currently has 621 stores and over 6,000 service bays in 36 states of the US and Puerto Rico. Along with its vehicle repair and maintenance capabilities, the company also serves the commercial auto parts delivery market and is one of the leading sellers of replacement tires in the United States. Pep Boys has an S&P credit rating of B/Stable.
Area Tuscaloosa is a city in and the seat of Tuscaloosa County in west central Alabama. Located on the Black Warrior River, it is the fifth-largest city in Alabama, with an estimated population of 93,215 in 2009. It is the principal city of the Tuscaloosa Metropolitan Statistical Area, which includes Tuscaloosa, Greene, and Hale counties and with a 2009 estimated metro population of 210,839. Tuscaloosa is the regional center of industry, commerce, healthcare, and education for the area of west central Alabama known as West Alabama. Tuscaloosa is also the home of the University of Alabama. While the city attracted international attention when Mercedes-Benz announced it would build its first automotive assembly plant in North America in Tuscaloosa County, the university remains the dominant economic and cultural engine in the city. Property The property is 100% leased to Pep Boys under a net lease. The lease calls for 10% increases in rent every five years. The lease is net allowing for minimal landlord obligations (roof and structure). Retailers in the area include Lowe's, Walmart, Kmart, Sears, Office Depot, TJ Maxx, O'Reilly Auto Parts, Ashley Furniture, Academy Sports, Auto Dealers, restaurants and many more.
PEP BOYS 535 Skyland Blvd East Tuscaloosa, AL 35405 Investment Information Listing Price $1,472,000 2013 CAP 7.75 % 2018 CAP 8.53 % Price Per S.F. $257.30 Building S.F. 5,721 Percent Occupied 100.00 % Land Acres 1.88 2013 2018 2023 2028 (Option 1) Net Operating Income $114,140 $125,554 $138,109 $151,920 Highlights Pep Boys (NYSE: PBY) Guarantee Long Term Net Lease 10% Increases in Rent Every 5 Years Well Located, Hard Corner Location
www.svn.com Rent Roll Summary Tenant Name Start Date End Date Occupied S.F. Annual Rent S.F. Occupied Rent % of Total Escalations / Options / Comments Pep Boys 12/16/2008 12/31/2028 5,721 $19.95 $114,140 100.0 % 10% Increase in rent every 5 years. Tenant has three 5 year options to renew. Rent As of December 2013 Total 5,721 $114,140 100.0 % All Sperry Van Ness Offices Independently Owned and Operated.
2. Additional Information All Sperry Van Ness Offices Independently Owned and Operated.
Tenant Overview Pep Boys Manny Moe & Jack (NYSE: PBY) is a full-service automotive aftermarket chain. In 1921, Emanuel (Manny) Rosenfeld, Maurice L. (Moe) Strauss, and W. Graham (Jack) Jackson opened the first "Pep Auto Supplies" store in Philadelphia, Pennsylvania. They took the original name from a product carried in the store, called "Pep Valve Grinding Compound." A neighborhood cop may have led to the name change "Pep Boys." As the story goes, every time he stopped a car that didn't have an oil wick burning, he would tell the driver to go see "the boys down at Pep." The "Manny, Moe and Jack" portion of the name was added after Manny and Moe visited California and saw a dress shop called "Minnie, Maude and Mabel's." Manny and Moe's visit to California also started a new market for the company. Manny's brother Murray Rosenfeld opened the West Coast operation in 1933 and Pep Boys began to grow on both sides of the country. The company reached about 159 stores around 1986. Pep Boys currently has 621 stores and over 6,000 service bays in 36 states of the US and Puerto Rico. Along with its vehicle repair and maintenance capabilities, the company also serves the commercial auto parts delivery market and is one of the leading sellers of replacement tires in the United States. Pep Boys is America's leading automotive aftermarket retail and service chain, with billions of dollars in aftermarket sales. To support this demand, Pep Boys currently has five DCs (Distribution Centers) located throughout the U.S. These DCs are located in: Bensalem, PA; New York; Atlanta, Georgia; Dallas, Texas; Indianapolis, Indiana; and San Bernardino, California. Pep Boys operating unit is its Supercenter format (averaging 20,600 square feet), which serves both do-it-for-me (DIFM, which includes service labor, installed merchandise and tires) and retail (which includes do-it-yourself (DIY), and commercial) customers with the service offerings and merchandise. Its Supercenters have a commercial sales program, which provides commercial credit and prompt delivery of tires, parts and other products to local, regional and national repair shops and dealers. During the fiscal year ended January 29, 2011(fiscal 2010), it introduced new format (14,000 square feet) Supercenters. The Supercenters are designed to provide its customers with offering of automotive service, tires, parts and accessories. Pep Boys has an S&P credit rating of B/Stable. For more information on Pep Boys, please visit www.pepboys.com.
www.svn.com Aerial Photo All Sperry Van Ness Offices Independently Owned and Operated.
www.svn.com Location Map All Sperry Van Ness Offices Independently Owned and Operated.
535 Skyland Blvd East,Tuscaloosa, AL 35405 Demographics Report 1.00 Mile(s) Ring 3.00 Mile(s) Ring 5.00 Mile(s) Ring POPULATION BY YEAR Population (4/1/1990) 7,703 37,394 88,550 Population (4/1/2000) 6,465 38,830 88,653 Population (4/1/2010) 7,142 43,513 102,023 Population (1/1/2011) 7,111 43,834 102,933 Population (1/1/2016) 7,662 47,017 109,747 Percent Growth (2011/2010) -0.43 0.74 0.89 Percent Forecast (2016/2011) 7.75 7.26 6.62 HOUSEHOLDS BY YEAR Households (4/1/1990) 3,078 16,034 33,216 Households (4/1/2000) 2,787 16,897 35,611 Households (4/1/2010) 3,115 19,522 40,772 Households (1/1/2011) 3,088 19,598 41,004 Households (1/1/2016) 3,371 21,390 44,755 Percent Growth (2011/2010) -0.87 0.39 0.57 Percent Forecast (2016/2011) 9.16 9.14 9.15 GENERAL POPULATION CHARACTERISTICS Median Age 30.0 28.4 28.7 Male 3,314 20,853 49,351 Female 3,797 22,981 53,582 Density 2,066.1 1,639.7 1,339.7
Urban 7,111 43,376 100,770 Rural 0 458 2,163 GENERAL HOUSEHOLD CHARACTERISTICS Households (1/1/2011) 3,088 19,598 41,004 Families 1,752 9,616 21,746 Non-Family Households 1,336 9,982 19,258 Average Size of Household 2.30 2.13 2.25 Median Age of Householder 47.6 38.4 42.3 Median Value Owner Occupied ($) 118,153 128,213 137,657 Median Rent ($) 531 547 525 Median Vehicles Per Household 2.0 2.0 2.1 GENERAL HOUSING CHARACTERISTICS Housing, Units 3,698 22,433 46,242 Housing, Owner Occupied 1,708 7,807 19,596 Housing, Renter Occupied 1,380 11,791 21,408 Housing, Vacant 610 2,835 5,238 POPULATION BY RACE White Alone 1,969 21,972 54,263 Black Alone 4,789 19,829 43,802 Asian Alone 45 521 1,592 American Indian and Alaska Native Alone 16 102 241 Other Race Alone 202 865 1,830 Two or More Races 90 545 1,205 POPULATION BY ETHNICITY Hispanic 287 1,545 3,529 White Non-Hispanic 1,926 21,408 52,853 GENERAL INCOME CHARACTERISTICS Total Household Income ($) 133,063,131 843,512,390 2,063,999,430 Median Household Income ($) 34,647 32,217 34,710 Average Household Income ($) 43,090 43,041 50,337 Per Capita Income ($) 18,712 19,243 20,052
RETAIL SALES Total Retail Sales (including Food Services) ($) 83,220 614,987 1,719,109 CONSUMER EXPENDITURES Total Consumer Expenditures ($000) 112,919.7 744,148.4 1,668,637.5 EMPLOYMENT BY PLACE OF BUSINESS Employees, Total (by Place of Work) 836 10,284 47,556 Establishments, Total (by Place of Work) 61 731 2,584 EASI QUALITY OF LIFE EASI Quality of Life Index (US Avg=100) 112 115 117 EASI Total Crime Index (US Avg=100; A=High) 167 154 144 EASI Weather Index (US Avg=100) 129 129 129 BLOCK GROUP COUNT 4 29 63