265 LINCOLN CIRCLE - LoopNet€¦ · 265 LINCOLN CIRCLE/GAHANNA, OH 43230 RETAIL PROPERTY/FOR SALE 2 ... INCOME SUMMARY 2014 2015 2016 PRO FORMA Base Revenue Rental $73,930 $77,906

265 LINCOLN CIRCLEGahanna, OH 43230

SEPTEMBER 18, 2017 / CONFIDENTIAL OFFERING MEMORANDUM

CARLTON DARGUSCH [email protected]

265 LINCOLN CIRCLE / GAHANNA, OH 43230RETAIL PROPERTY / FOR SALE

2

The Gilbert Group / 209 East Broad Street Columbus, OH 43215 / 614.228.2222 / gilbertgrouprealestate.com

PROPERTY INFORMATION 3

LOCATION INFORMATION 6

FINANCIAL ANALYSIS 13

DEMOGRAPHICS 17

MARKET OVERVIEW 19

ADVISOR BIOS 23

CUSTOM SECTION 25

Confidentiality & Disclaimer ContentsAll materials and information received or derived from The Gilbert Group Retail Real Estate ("TheGilbert Group") its directors, officers, agents, advisors, affiliates and/or any third party sources areprovided without representation or warranty as to completeness , veracity, or accuracy, condition of theproperty, compliance or lack of compliance with applicable governmental requirements, developabilityor suitability, financial performance of the property, projected financial performance of the property forany party’s intended use or any and all other matters.

Neither The Gilbert Group, its directors, officers, agents, advisors, or affiliates makes anyrepresentation or warranty, express or implied, as to accuracy or completeness of the any materials orinformation provided, derived, or received. Materials and information from any source, whether writtenor verbal, that may be furnished for review are not a substitute for a party’s active conduct of its owndue diligence to determine these and other matters of significance to such party. The Gilbert Group,LLC will not investigate or verify any such matters or conduct due diligence for a party unless otherwiseagreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify allinformation and to conduct their own inspections and investigations including through appropriatethird party independent professionals selected by such party. All financial data should be verified bythe party including by obtaining and reading applicable documents and reports and consultingappropriate independent professionals. The Gilbert Group makes no warranties and/or representationsregarding the veracity, completeness, or relevance of any financial data or assumptions. The GilbertGroup does not serve as a financial advisor to any party regarding any proposed transaction. All dataand assumptions regarding financial performance, including that used for financial modeling purposes,may differ from actual data or performance. Any estimates of market rents and/or projected rents thatmay be provided to a party do not necessarily mean that rents can be established at or increased tothat level. Parties must evaluate any applicable contractual and governmental limitations as well asmarket conditions,vacancy factors and other issues in order to determine rents from or for the property.

Legal questions should be discussed by the party with an attorney. Tax questions should be discussedby the party with a certified public accountant or tax attorney. Title questions should be discussed bythe party with a title officer or attorney. Questions regarding the condition of the property and whetherthe property complies with applicable governmental requirements should be discussed by the partywith appropriate engineers, architects, contractors, other consultants and governmental agencies. Allproperties and services are marketed by The Gilbert Group in compliance with all applicable fairhousing and equal opportunity laws.

September 18, 2017 / Confidential Offering Memorandum

TABLE OF CONTENTS

1PROPERTYINFORMATION


4


OFFERING SUMMARY

Sale Price: $995,500

Cap Rate: 8.03%

NOI: $79,972

Lot Size: 1.14 Acres

Year Built: 1989

Building Size: 8,425

Zoning: CC

Market: Northeast

Price / SF: $118.16

The Gilbert Group is please present a fantastic opportunity to own 100% fee simple interest in a multi-tenant retail center inthe heart of thriving Gahanna, Ohio (Columbus MSA). This 8,425 square foot center has strong visibility and a stable history oftenancy. There is significant upside potential with existing rents well below market value. Recent lease transactions completedover the last two years on nearby Hamilton Road with rents in the mid to upper $20's. Rare opportunity to purchase a stablemulti-tenant retail center for less than $1M.

PROPERTY OVERVIEW

PROPERTY HIGHLIGHTS

• 12.66% cash-on-cash return

• High visibility to Granville Street

• Below market rent in place ($10.53 per square foot NNN average)

• No tenant rollover until middle of 2020

• Minimal property management responsibilities

• Significantly below replacement cost

SECTION 1 / PROPERTY INFORMATION September 18, 2017 / Confidential Offering Memorandum

EXECUTIVE SUMMARY


5


SECTION 1 / PROPERTY INFORMATION September 18, 2017 / Confidential Offering Memorandum

ADDITIONAL PHOTOS

2LOCATIONINFORMATION


7


SECTION 2 / LOCATION INFORMATION September 18, 2017 / Confidential Offering Memorandum

REGIONAL MAP


LOCATION MAPS


8



9



AERIAL MAP


10



AERIAL MAP


11



RETAILER MAP


12



SITE PLAN

3FINANCIALANALYSIS

TENANT

NAME

UNIT

NUMBER

UNIT

SIZE (SF)

LEASE

START

LEASE

END

ANNUAL

RENT

% OF

GLA

PRICE

PER SF/YR

Heads Turn A 4,000 7/1/2014 6/30/2020 $38,000 47.48 $9.50

Matt's Coral & Service B 1,125 9/1/2017 8/31/2022 $11,993 13.35 $10.66

Minuteman Press C 1,120 9/1/2007 8/31/2020 $16,800 13.29 $15.00

American Crow Tattoo D 1,185 4/1/2017 3/31/2022 $12,000 14.07 $10.13

American Crow Tattoo E 995 4/1/2013 3/31/2022 $9,950 11.81 $10.00

Totals/Averages 8,425 $88,743 $10.53


14


SECTION 3 / FINANCIAL ANALYSIS September 18, 2017 / Confidential Offering Memorandum

RENT ROLL

INVESTMENT OVERVIEW 2018 PRO FORMA

Price $995,500

Price per SF $118.16

CAP Rate 8.0%

Cash-on-Cash Return (yr 1) 12.66 %

Total Return (yr 1) $48,703

Debt Coverage Ratio 1.88

OPERATING DATA 2018 PRO FORMA

Gross Scheduled Income $126,012

Other Income -

Total Scheduled Income $126,012

Vacancy Cost $0

Gross Income $126,012

Operating Expenses $46,040

Net Operating Income $79,972

Pre-Tax Cash Flow $37,410

FINANCING DATA 2018 PRO FORMA

Down Payment $295,500

Loan Amount $700,000

Debt Service $42,562

Debt Service Monthly $3,546

Principal Reduction (yr 1) $11,293


15



FINANCIAL SUMMARY

INCOME SUMMARY 2014 2015 2016 PRO FORMA

Base Revenue Rental $73,930 $77,906 $83,501 $88,743

Expense Reimbursement - CAM $29,312 $32,888 $33,691 $29,151

Expense Reimbursement - Other $9,812 $7,442 $7,099 $8,118

Gross Income $113,054 $118,236 $124,291 $126,012

EXPENSE SUMMARY 2014 2015 2016 PRO FORMA

Real Estate Tax $25,092 $25,613 $25,500 $26,317

Insurance $5,463 $5,684 $5,704 $5,875

CAM $9,457 $10,260 $6,706 $8,808

Management Fee $6,091 $6,078 $6,077 $5,040

Gross Expenses $46,103 $47,635 $43,987 $46,040

Net Operating Income $66,951 $70,601 $80,304 $79,972


16



INCOME & EXPENSES

4DEMOGRAPHICS

POPULATION 1 MILE 3 MILES 5 MILES

Total population 7,873 57,560 216,739

Median age 42.3 37.5 35.6

Median age (male) 41.1 36.4 34.4

Median age (Female) 42.8 38.1 36.8

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

Total households 3,203 23,915 89,300

# of persons per HH 2.4 2.5 2.4

Average HH income $84,392 $86,533 $76,614

Average house value $213,864 $236,897 $201,509

ETHNICITY (%) 1 MILE 3 MILES 5 MILES

Hispanic 0.5% 1.7% 3.3%

RACE (%)

White 73.7% 68.8% 52.6%

Black 6.6% 14.5% 25.3%

Asian 1.8% 2.7% 2.4%

Hawaiian 0.0% 0.0% 0.0%

American Indian 0.1% 0.1% 0.1%

Other 0.1% 0.8% 1.2%

* Demographic data derived from 2010 US Census

SECTION 4 / DEMOGRAPHICS September 18, 2017 / Confidential Offering Memorandum

DEMOGRAPHICS MAP


18


5MARKETOVERVIEW

Gahanna, Ohio has been named “Among the Top 100 Best Places to Live” by Money Magazine, as well as the “Top 20 Places to Retire” by Black Enterprise Magazine. The city of

Gahanna offers a wide range of activities, amenities, and services for residents. Family-oriented festivals and events provide patrons with a great sense of community. Most notable are

the city’s annual Creekside Blues & Jazz Festival and the Holiday Lights Parade. Home to Creekside, a creek with surrounding trails that make for scenic walks to casual dining and

shopping, Gahanna is a treasure all its own. If you like to play golf, there are several golf courses that boast incredible landscapes and beautiful scenery. Gahanna is also home to the

private Columbus Academy, which is one of the top schools in the state. With a combination of elite private schools and the Gahanna Local Schools, the education system in Gahanna

compliments the community well.

Gahanna, Ohio has a current population of 34,590 people and is considered is more family-centric than the surrounding county with 37.62% of the households containing married

families with children. The median household income in Gahanna, Ohio is $73,583. The median household income for the surrounding county is $51,890 compared to the national

median of $53,482. The median age of people living in Gahanna is 38.8 years.


20


SECTION 5 / MARKET OVERVIEW September 18, 2017 / Confidential Offering Memorandum

GAHANNA, OHIO

Columbus is the nation’s fastest growing city east of the Mississippi River and it is the only northeastern city with continuous population growth since the mid-1940s, adding residents at

a rate of nearly 1% per year. Columbus' population has grown to 863,212, making it the 14th largest city in the country and the second biggest in the Midwest after Chicago.

The 11-county Columbus Region is one of the most dynamic and diverse metropolitan regions in the U.S. Centrally located between Chicago and New York, the Columbus Region

boasts the greatest market access of any major metro—with 47 percent of the U.S. population within a 10-hour drive. Columbus is one of the country’s growth leaders and No. 1 among

the Midwest’s largest metros in multiple categories: Population Growth, Job Growth, GDP Growth and Wage Growth.

Columbus is the nucleus of an eight-county Metropolitan Statistical Area (MSA) that includes Delaware, Fairfield, Franklin, Licking, Madison, Morrow, Pickaway and Union counties.

Together, they total 4,013 square miles and have a population density of 2,183 people per square mile. Franklin County is the largest of these counties with a 2015 population of

1,252,000 people and a growth rate of 8.7% from 2010. The Columbus MSA has a population of over 2.1 million people.

Columbus is centrally located to most major markets in North America. As a result, Columbus has become the referred choice for many regional and national headquarters. Recently,

BMW Financial Services, Cardinal Health, Lane Bryant, OhioHealth, Nationwide Insurance, McGraw-Hill Companies, and Safe Auto have had major office expansion in the Columbus

area. Companies such as Amazon, McKeson Medical-Surgical Inc., and Yokohama Tire have chosen Columbus for their major distribution centers.


21



COLUMBUS, OHIO

In addition, Columbus was placed above Los Angeles, New York, Boston, Chicago, and Seattle by Inc. magazine in its ranking of the best large metropolitan areas in which to start anew business. Companies such as Wendy’s International, Worthington Industries, Limited Brands, and Battelle Institute were founded and continue to thrive here.

Economic diversity is the key to consistent rate of growth in Columbus. The city is the state capital of Ohio. Consequently, city, state and federal government are three of theten largest employers in the area. In addition to the government, Columbus employers include a good mix of business occupations, distributed among finance, service, retail,technology, and manufacturing. This mix affords Columbus stability through the peaks and valleys of the national economy.

Columbus has been recognized as the best combination of growth and diversity of any significant metropolitan area in the nation.

Columbus is also one of the nation’s major education centers. The city is home to numerous colleges and universities, including the main campus of The Ohio State University (OSU).OSU boasts the largest single-campus population in the United States, with 66,046 students as of Fall 2016. OSU offers a wide variety of artistic and cultural facilities, as well as a steadysource of highly skilled and educated labor.

Research and development play a vital role in the Columbus economy, and the city was recently ranked by Popular Science magazine as the nation’s seventh most high-tech city, aheadof Raleigh and Seattle. Millions of research dollars pour into OSU, Chemical Abstract Services and Battelle Memorial Institute, the world’s largest independent consulting, research, anddevelopment organization, every year.


22



COLUMBUS, OHIO

6ADVISOR BIOS

209 East Broad StreetColumbus, OH 43215T 614.674.6943

[email protected]

PROFESSIONAL BACKGROUND

Carlton Dargusch’s focus is facilitating the site selection process for his clients as well as leasing and renewals in communityand neighborhood retail centers. His energy and enthusiasm, coupled with his dedication and commitment to service, enablehim to assist clients from small, local entrepreneurs to large institutional owners.

From 2006-2009, 2012, 2014 and most recently in 2016, Mr. Dargusch was recognized by CoStar Group as one of its CoStarPower Broker Award winners based on overall leasing transaction volume.

Prior to joining The Gilbert Group, Mr. Dargusch worked at Cassidy Turley and served as one of their top agents focused onretail leasing and sales. He also worked with Columbus Commercial Realty/Cushman & Wakefield, where he developed amarketing portfolio for new and first-time buyers. In addition to sales and leasing, he developed databases and timemanagement systems for the organization.

EDUCATION

Franklin University, Bachelor of Science, Marketing

MEMBERSHIPS & AFFILIATIONS

Licensed Ohio Real Estate Salesperson | Member of NAR, OAR, CBRMember International Council of Shopping CentersCoStar Power Broker | 2006, 2007, 2008, 2009, 2012, 2014, 2016

CARLTON DARGUSCH IV

Senior Associate


24


SECTION 6 / ADVISOR BIOS September 18, 2017 / Confidential Offering Memorandum

ADVISOR BIO

Documents

265 LINCOLN CIRCLE - LoopNet€¦ · 265 LINCOLN CIRCLE/GAHANNA, OH 43230 RETAIL PROPERTY/FOR SALE 2 ... INCOME SUMMARY 2014 2015 2016 PRO FORMA Base Revenue Rental $73,930 $77,906