PHILADELPHIA NEIGHBORHOOD CENTER€¦ · This Marketing Brochure has been prepared to provide...
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PHILADELPHIA NEIGHBORHOOD CENTER 5800 Rising Sun Ave. Philadelphia, PA OFFERING MEMORANDUM
Transcript of PHILADELPHIA NEIGHBORHOOD CENTER€¦ · This Marketing Brochure has been prepared to provide...
PHILADELPHIA NEIGHBORHOOD CENTER5800 Ris ing Sun Ave . Ph i lade lph ia , PA
OFFERING MEMORANDUM
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TABLE OF CONTENTSSection 1: Investment SummaryProperty Overview......................................................5Rent Roll....................................................................6Income and Expenses.................................................7Investment Highlights..................................................8
Section 2: Tenant Overview7-Eleven..................................................................10Section 3: Market OverviewRegional Maps........................................................12Aerial Map.............................................................13Location Overview..............................................14-15
OFFERED EXCLUSIVELY BY
Derrick DoughertyFirst Vice PresidentPhiladelphia, PAOffice: 215.531.7026Email: [email protected] License: PA RS305854
Scott WoodardNational Retail GroupPhiladelphia, PALicense: PA RS329242
Marcus & Millichap2005 Market Street #1510
Philadelphia, PA 19103
P: 215.531.7000
www.marcusmillichap.com
NON-ENDORSEMENT AND DISCLAIMER NOTICENON-ENDORSEMENTSMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The
presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of
Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for
the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the
party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus &
Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only
a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation.
Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject
property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or
absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improve-
ments thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the
subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus
& Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation
regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.
All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus
& Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.
Marcus & Millichap Real Estate Investment Services of Seattle, Inc. License: RB062197C
Broker of Record: Anthony Palumbo LIC: PA RM423958
Steven GarthwaiteNational Retail Group Philadelphia, PA License: PA RS332182
Mark KrantzNational Retail GroupPhiladelphia, PA License: PA RS336064 | NJ 1537786
Scott WoodardNational Retail Group Philadelphia, PACell: 215.595.6214Office: 215.531.7058Email: [email protected] License: PA RS329242
Rising Sun Plaza Shopping Center
Benjamin Franklin School of Philadelphia(1,000+/- Total Enrolled)
RISI
NG
SU
N A
VE
(20,
419
VPD
)
PROPERTY ANALYSIS
RISING SUN AVE
(20,419 VPD)
CHELTENHAM AVE
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PHILADELPHIA, PA 1 MILE 3 MILES 5 MILES
Population 49,478 336,462 711,732
Households 18,261 123,899 260,076
Household Income $59,069 $60,110 $60,251
Traffic Counts 20,419 VPD
PROPERTY OVERVIEW
Full Address 5800 Rising Sun Ave, Philadelphia, PA 19120
Square Footage 9,405
Lot Size .71 Acres
Year Built 1950
Occupancy 100%
Zoning CMX2
Parking 25 Spaces
PROPERTY OVERVIEW:
PRICE CAP RATE
7.00%$2,201,226NET OPERATING INCOME
$154,650
MAJOR TENANTS GLA LEASE EXP LEASE TYPE
Crown Chicken 975 1/1/2027 Gross
Pho Taao Restaurant 1,262 2/1/2023 Gross
7-Eleven 3,276 12/1/2022 NNN
Grocery Store 1,316 8/20/2020 Gross
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RENT ROLL:TENANT
SQUARE FOOTAGE
GLA %LEASE START
LEASE EX-PIRE
BASE RENT
RENT/SF U&O & RE
TAX PAYMENT OPTIONS DATE
RENT ANNUALLY
RECOVERIES
7-Eleven 3,276 34.83% Apr-87 Dec-22 $61,200 $18.68 $12,000.00 2(5)year Options
Jan-23
Jan -28
$67,329
$74,062Net
Pho Taao Restaurant 1,262 13.42% Feb-18 Feb-23 $19,200 $15.21 $3,600.00 1(5)year
Options Feb-23 Gross
Iquality Connection
(Electronic) 640 6.80% May-15 Jun-19 $11,400 $17.81 $1,897.32 Gross
Noirnative Dance Studio &
Supplements 648 6.89% Mar-18 May-19 $11,400 $17.59 $1,800.00
2(1)year Options
May-19
May-20Gross
Grocery Store 1,316 13.99% Sept-18 Aug-18 $24,000 $18.24 $3,848.40 1(5)year
Options 20-Sep Gross
L&T Nail Salon 648 6.89% Aug-15 Aug-19 $11,340 $17.50 $1,906.92 Gross
Rosa's Dominican Beauty
Salon 640 6.80% Aug-16 Sept-18 $12,000 $18.75 $1,896.00 Gross
Crown Chicken 975 10.37% Sept-13 Jan-27 $21,540 $22.09 $3,960.00 2(5)year Options
Jan-27
Jan- 32Gross
9,405 $172,080 $30,908.64
1) Pho Taao Resturnant base term increase a $100 each year.2) Crown Fried Chicken base term increases 5% annually
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SCHEDULE OF PROSPECTIVE CASH FLOWScheduled Base Rental Revenue $172,080
Expense Reimbursement (U&O and Real Estate Tax)1 $28,346
Gross Income $200,426
Vacancy2 $2,750
Effective Gross Revenue $197,676
Operating Expenses3
Real Estate Taxes $19,346
U&O Tax $9,000
Insurance $7,500
CAM $2,000
Management Fee4 $3,954
Total Operating Expenses $41,800
Capital Reserves5 $1,225
Net Operating Income $154,650
Notes:1) Expense Reimbursements are based on 2017/2018 actual numbers 2) Vacancy is based on 3% of the base rent minus 7-Eleven's rent 3) Operating Expenses are based on 2017/2018 actual expenses 4) Management Fee is based on 2% of EGR5) Capital Reserves are based on $.20/psf6) Utilities are payed directly by Tenants
INCOME & EXPENSES:
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INVESTMENT HIGHLIGHTS:
100% OCCUPIED NEIGHBORHOOD CENTER • 5800 Rising Sun Ave is a 9,405 Square Foot Retail Strip Center Anchored by 7-Eleven
ANCHORED BY 7-ELEVEN• Rated “AA-” by Standard & Poor’s and publicly traded on the New York Stock Exchange• 60,000 Plus locations
INTERNET-RESISTANT TENANCY • Center Is Occupied By Serviced Based Tenant Roster That Allows It To Be E-Commerce Resistant
LIGHT VALUE ADD OPPORTUNITY• 65% of the Occupied GLA Operates Under Gross Leases
SIGNALIZED INTERSECTION OF RISING SUN AVE. AND CHELTENHAM AVE. • Traffic Counts of 20,419 VPD • Located Across the Street Ben Franklin School of Philadelphia
URBAN INFILL LOCATION WITH HIGH BARRIER TO ENTRY IN THE NORTH-EAST SECTION OF PHILADELPHIA• Mature Northeast Section of Philadelphia Location • Over 330,000 People Within 3-Miles of the Site
TENANT OVERVIEW
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The North American subsidiary of Seven-Eleven Japan, 7-Eleven operates more
than 10,000 company-owned or franchised stores in the US and Canada un-
der the 7-Eleven name. Globally, 7-Eleven licenses more than 51,000 stores
in about 15 countries, mostly in the Asia Pacific and Nordic regions. Its stores
range from 2,400 to 3,000 sq. ft. and sell about 2,500 items. The world’s
leading convenience store company is owned by the Japanese retail conglomer-
ate Seven & i Holdings, which is the holding company for Seven-Eleven Japan,
Ito-Yokado, Denny’s restaurants, and other businesses.
In addition to retails stores across North America, 7-Eleven grants area licens-
es to overseas operators of 7-Eleven stores (except in Japan). Royalty fees paid
by licensees are included in the company’s revenues from operations.
Across North America, 7-Eleven is cultivating denser store networks through
aggressive store openings and acquisitions. It’s focusing on opening locations
with gas stations, as gas accounts for nearly half of total store sales. Like its
Japanese parent, 7-Eleven employs a market concentration strategy to ensure
effective merchandising and infrastructure usage
OWNERSHIP:Seven & I HoldIngS Co.
NO. OF LOCATIONS64,319 +/-
WEBSITE:www.7-eleven.com
TENANT OVERVIEW
Tenant Name 7 Eleven
No. Of Locations 60,000 +/-
Credit Rating AA- (Standard and Poor’s)
Headquartered Irving, TX
Web Site www.7-eleven.com
TENANT OVERVIEW:
MARKET OVERVIEW
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REGIONAL MAP:
B
altimore
N
ew York
A
tlantic City
SUBJECT PROPERTY
90 Miles to New York
60 Miles to Atlantic City
110 Miles to Baltimore
PHILADELPHIA, PA 1 MILE 3 MILES 5 MILES
Population 49,478 336,462 711,732
Households 18,261 123,899 260,076
Household Income $59,069 $60,110 $60,251
Traffic Counts 20,419 VPD
Benjamin Franklin School of Philadelphia(1,000+/- Total Enrolled)
Adams Run Plaza
Melrose Center
CHELTEN
HA
M AV
E
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The Philadelphia MSA encompasses 11 counties in four states:Philadelphia, Delaware, Bucks, Chester and Montgomery in Philadelphia;Gloucester, Burlington, Camden and Salem counties in New Jersey;New Castle in Delaware; and Cecil in Maryland. The DelawareRiver bisects the metropolis from northeast to southwest and serves as the borderbetween Pennsylvania and New Jersey. The Schuylkill River passes through the heart ofPhiladelphia, separating West Philadelphia from Center City. The Philadelphia MSA containsapproximately 6.1 million residents. Although it has more than 360 municipalities, few havemore than 25,000 citizens, while Philadelphia is the largest city with approximately 1.6 million residents.
METRO
ECONOMY
� Drivers of the region’s economy include pharmaceuticals, biotechnology, financial services, education, transportation logistics, advanced manufacturing and telecommunications.
� The Philadelphia area is home to 12 Fortune 500 companies that operate across a broad spectrum of industries. � Philadelphia is headquarters of the Federal Reserve’s Third District, which, along with the U.S. Mint, the Philadelphia
Stock Exchange and companies such as Lincoln Financial Group and Vanguard, helps shape a formidable financial sector.
SHARE OF 2017 TOTAL EMPLOYMENT
LOCATION OVERVIEW:
SHARE OF 2017 TOTAL EMPLOYMENT
MANUFACTURING6%
GOVERNMENT
HEALTH SERVICESEDUCATION AND
+OTHER SERVICES
4%
LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES
18%AND UTILITIES
TRADE, TRANSPORTATION CONSTRUCTION
PROFESSIONAL ANDBUSINESS SERVICES
2%INFORMATION
16%
4%
11% 9% 7%
22%
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DEMOGRAPHICS
Philadelphia offers its residents an attractive combination of economic, educational, cultural and recreational advantages. Its transformation from a manufacturing-based economy to one more reliant on information will continue to provide greater economic opportunities. In addition, the cost of living in Philadelphia is much less than in other major East Coast markets. Philadelphia provides both visitors and residents with a wide array of destinations: Art and science museums are plentiful and the restaurant and night life scene is always alive in Center City. The MSA houses several major professional sports teams, including the Eagles (NFL), 76ers (NBA), Phillies (MLB), Flyers (NHL) and Union (MLS) in addition to numerous golf courses, bike paths.
* Forecasted Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
QUALITY OF LIFE
� The MSA is expected grow by nearly 130,000 people through 2021, which will result in nearly 60,000 additional households.
� A median home price below the national average has allowed 67 percent of house-holds to afford to own their homes, compared with 64 percent for the nation.
� Roughly 34 percent of people age 25 and older hold a bachelor’s degree; among those residents, 13 percent also have earned a graduate or professional degree.
SPORTS
EDUCATION
ARTS & ENTERTAINMENT
SPORTS
EDUCATION
ARTS & ENTERTAINMENT
SPORTS
EDUCATION
ARTS & ENTERTAINMENT
LOCATION OVERVIEW:
38.62017
MEDIAN AGE:
U.S. Median:
37.8
$65,200 2017 MEDIAN
HOUSEHOLD INCOME:
U.S. Median:
$56,300
6.1M2017
POPULATION:
Growth2017-2022*:
2%
2.3M2017
HOUSEHOLDS:
3.1%
Growth2017-2022*:
OFFERING MEMORANDUM
PHILADELPHIA NEIGHBORHOOD CENTER5800 Ris ing Sun Ave . Ph i lade lph ia , PA
