7-ELEVEN WITH GAS STATION AND CAR WASH - Matthews€¦ · *7-Eleven is currently sub-leasing ±0.94 Acres of Land to Viera Car Wash, LLC. The Landlord has an absolute NNN, Supplemental

OFFERING MEMORANDUM

7-ELEVEN WITH GAS STATION AND CAR WASH 8205 N WICKHAM RD, MELBOURNE, FL 32940

Matthews Retail Advisors

CONFIDENTIALITY & DISCLAIMER STATEMENTThis Of fer ing Memorandum contains se lec t in format ion per ta in ing to the bus iness and af fa i rs of 7-Eleven located at 8205 N Wickham Rd, Melbourne, FL 32940 (“Proper ty”). I t has been prepared by Mat thews Retai l Advisors. This Of fer ing Memorandum may not be al l - inc lus ive or contain a l l o f the in format ion a prospect ive purchaser may desi re. The in format ion contained in th is Of fer ing Memorandum is conf ident ia l and furn ished sole ly for the purpose of a rev iew by a prospect ive purchaser of the Proper ty. I t i s not to be used for any other purpose or made avai lable to any other person wi thout the wr i t ten consent of Sel le r or Mat thews Retai l Advisors . The mater ia l i s based in par t upon in format ion suppl ied by the Sel ler and in par t upon f inancia l in format ion obtained f rom sources i t deems re l iable. Owner, nor thei r of f icers, employees, or agents makes any representa t ion or warranty, express or impl ied, as to the accuracy or comple teness of th is Of fer ing Memorandum or any of i t s contents and no legal l iabi l i ty i s assumed or shal l be impl ied wi th respect there to. Prospect ive purchasers should make thei r own projec t ions and form thei r own conclus ions wi thout re l iance upon the mater ia l contained herein and conduct thei r own due di l igence.

By acknowledging your receipt of th is Of fer ing Memorandum for the Proper ty, you agree:

1. The Of fer ing Memorandum and i t s contents are conf ident ia l ;

2. You wi l l ho ld i t and t reat i t in the s t r ic tes t o f conf idence; and

3. You wi l l not , di rec t ly or indi rec t ly, disc lose or permi t anyone e lse to disc lose th is Of fer ing Memorandum or i t s contents in any fashion or manner det r imenta l to the in teres t of the Sel ler.

Owner and Mat thews Retai l Advisors express ly reser ve the r igh t , a t thei r so le discre t ion, to re jec t any and al l express ions of in teres t or of fers to purchase the Proper ty and to terminate discuss ions wi th any person or ent i ty rev iewing th is Of fer ing Memorandum or making an of fer to purchase the Proper ty un less and unt i l a wr i t ten agreement for the purchase and sale of the Proper ty has been fu l ly executed and del ivered.

I f you wish not to pursue negot ia t ions leading to the acquis i t ion of the Proper ty or in the fu tu re you discont inue such negot ia t ions, then you agree to purge al l mater ia ls re la t ing to th is Proper ty inc luding th is Of fer ing Memorandum.

A prospect ive purchaser ’s so le and exc lus ive r igh ts wi th respect to th is prospect ive t ransact ion, the Proper ty, or in format ion provided herein or in connect ion wi th the sale of the Proper ty shal l be l imi ted to those express ly provided in an executed Purchase Agreement and shal l be subjec t to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims agains t Sel le r or Mat thews Retai l Advisors or any of thei r af f i l ia tes or any of thei r respect ive of f icers, Di rec tors, shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion re la t ing to th is so l ic i ta t ion process or the market ing or sa le of the Proper ty.

This Of fer ing Memorandum shal l not be deemed to represent the s ta te of af fa i rs of the Proper ty or cons t i tu te an indicat ion that there has been no change in the s ta te of af fa i rs of the Proper ty s ince the date th is Of fer ing Memorandum.

EXCLUSIVELY L ISTED BY:

Table of ContentsPRICING & FINANCIAL ANALYSIS

Investment Overview & Highlights ................................. 2Executive Summary ..................................................... 3Rent Roll ..................................................................... 4Lease Abstract: 7-Eleven ............................................... 5Supplemental Lease Abstract: Viera Car Wash................ 6Company Overview ................................................... 7

PROPERTY DESCRIPTIONPhysical Description ................................................... 11Tenant Map .............................................................. 12Regional Map ........................................................... 13Bird’s Eye View ......................................................... 14

DEMOGRAPHICSCity Overview | Melbourne, FL ................................... 16Demographics Report ................................................ 17

Justin BeckBroker of RecordBeck Partners CRE, LLC License No. BK3118299

Matt CoatesAssociate DIRECT +1.310.919.5805 MOBILE +1.714.366.1236 [email protected] License No. 01980718

Aron ClinePartner DIRECT +1.310.919.5816 MOBILE +1.818.632.0233 [email protected] License No. 01904371

Matthews Retail Advisors

Pricing & Financial Analysis

OFFERING MEMORANDUM | 7-ElevenP. 2 Matthews Retail Advisors

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Matthews Retail Advisors is pleased to exclusively offer for sale an absolute triple-net, 7-Eleven with a gas station and a car wash located in Melbourne, Florida. The investment contains a corporately guaranteed lease with 7-Eleven, Inc, who has operated at the site since 1994. The current lease runs into 2019 and has two, five year options with 10% rental increases remaining. 7-Eleven has subleased a portion of the property to Viera Car Wash which draws additional traffic to the site and reduces 7-Eleven’s monthly operating costs.

Investment Overview

Investment Highlights

• Leased to nationally recognized 7-Eleven, Inc., (Standard & Poor’s AA-) which has over 7,800 stores nationwide and 52,000 worldwide with annual revenue of more than $10.3 billion

• 10% rent increases in Option Periods

• 7-Eleven has operated at site since 1994

• Viera Car Wash recently received approval to add a Tunnel Car Wash to its Leased Premises which is projected to multiply its current sales ten times

• Population has grown over 105% within a 1-mile radius of site since 2000 and is on pace to grow an additional 10% by 2020.

• NNN leased asset - Landlord responsible only for the structural soundness of the 7-Eleven building

• 7-Eleven has subleased part of the premises to Viera Car Wash, LLC, which has “significantly increased daily traffic” to the site

• Safety net in place via a supplemental lease with Viera Car Wash, LLC; in the unlikely event 7-Eleven forgoes extending the lease, the supplemental lease commences and Viera Car Wash will begin paying Landlord monthly rent for a minimum of five (5) years.

• Established tenant will require limited oversight

• Less than half-a-mile from major intersection of I-95 and N Wickham Rd and about 35 miles southeast of Orlando

• Strong National Tenants within a 1-mile radius: Walmart Supercenter, Target, Hobby Lobby, McDonald’s, CVS, Walgreens, Space Coast Cancer Center, Dunkin’ Donuts, Chick-fil-A, Holiday Inn, Hampton Inn, La Quinta Inn, Wendy’s, Burger King, Craker Barrel, Starbucks, Petco, Subway, Wells Fargo, Chase Bank, Bob Evan’s, Suntree Square Shopping Center, Papa John’s, Dairy Queen, Firehouse Subs, Game Stop, Ross, among others

• Located less than 1.5 miles from The Avenue Viera open-air shopping mall which entails over 700,000 SF of retail properties; N Wickham Rd is the closest on-ramp and off-ramp to this enormous mall consisting of 68 stores, 19 restaurants, and a 16-screen cinema.

• 31,966 cars per day at N Wickham Rd & Sheriff Dr; 30,420 cars per day at N Wickham Rd & Office Park Pl

Stable Income/Strong Real Estate Fundamentals Outstanding Retail Location

• Excellent opportunity to own a strong, 7-Eleven asset in a tax-free state

• Low risk and minimal management opportunity

• Strong upside potential through Viera Car Wash’s expansion, which should greatly improve 7-Eleven’s store and gas sales.

Low Risk and Minimal Management Responsibility

Flagship Property & Ideal 1031 Exchange Replacement

Matthews Retail Advisors P. 37-Eleven | OFFERING MEMORANDUM

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Executive Summary

7-ELEVEN WITH GAS STATION AND CAR WASH8205 N WICKHAM RD MELBOURNE, FL 32940

List Price .................................................................. $2,300,000 Cap Rate ..........................................................................6.50%Gross Leasable Area ................................................... ±3,061 SF Lot Size .................................................. ±81,778 SF (1.88 Acres)Year Built ........................................................................... 1994Year Remodeled .................................................................. 2004Number of Gas Pumps............................................Eight (8) Pumps

Annualized Operating DataLease Commence Monthly Rent Annual Rent Rent PSF CAPCurrent thru 1/31/19 $12,470.00 $149,640 $48.89 6.50%

Option 1 - 1/31/24 $13,717.00 $164,604 $53.77 7.15%

Option 2 - 1/31/29 $15,088.70 $181,064 $59.15 7.87%

Tenant Summary

Tenant Trade Name 7-Eleven Inc.

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 14 Years & 11 Months Years

Lease Commencement 3/1/1994

Rent Commencement 2/8/1994

Lease Expiration Date 1/31/2019

Term Remaining ±3.4 Years

Increases 10% in Options

Options Two (2), Five (5) Year Oprtions



Rent Roll

Tenant GLA % of GLA Lease Type

Lease Commencement

Lease Expiration Annual Rent Rent/SF Increases Lease Term Options

7-Eleven ±3,061 SF 56.1% NNN 3/1/94 1/31/19 $149,640 $30.38 10% Increases in Options

14 Years & 11 Months

Two (2), Five (5) Year

Viera Car Wash **±2,395 SF 43.9% NNN *2/1/29 *1/31/34 *$24,000 *$10.02 $250/Month in Options Five (5) Years Nine (9),

Five (5) Year

*7-Eleven is currently sub-leasing ±0.94 Acres of Land to Viera Car Wash, LLC. The Landlord has an absolute NNN, Supplemental Lease in place with Viera Car Wash, LLC, that “commences on the date that the earlier of the following occurs: (1) 7-Eleven’s Lease expires; or (2) 7-Eleven’s Lease is terminated”. From this date, the Primary Term of Five (5) Years begins at a rental rate of $2,000 per month. At the expiration of the Primary Term, Viera has Nine (9), Five (5) Year Options to extend the Lease. The First Option constitutes a monthly rent of $2,250/Month; each additional option includes a $250 increase in rent-per-month from the previous option period, eventually set to reach a monthly rent of $4,250/Month. These rental amounts were calculated under the assumption 7-Eleven accepts its remaining option periods. If this Lease “commences prior to the expiration of 7-Eleven’s final option period, both parties will execute an Amendment to recalculate the monthly rents accordingly”.**Landlord does not own Viera Car Wash’s Improvements; he only owns the land underneath the improvements.



Tenant: 7-Eleven Inc., a Texas corporation

Tenant Address: 1722 Routh St, Suite #1000, Dallas, TX 75201

Property Address: 8205 N Wickham Rd, Melbourne, FL 32940

Date of Lease: June 11th, 1992

Lease Commence-ment: March 1st, 1994

Initial Lease Term: Fourteen (14) Years & Eleven (11) Months

Lease Expiration: January 31st, 2019

Current Annual Rent: $149,640

Rent Increases: 10% in Options

Renewal Options: Two (2), Five (5) Year

Annual Rent:

Current Date thru 1/31/19: $149,640

Option 1: 2/1/19 thru 1/31/24: $164,604Option 2: 2/1/24 thru 1/31/29: $181,064

Taxes:

Tenant shall pay Landlord an amount equal to any and all sales, excise, privilege, transaction, and other taxes (exclud-ing income taxes) levied or assessed upon the leasing of the demised premises. In addition, Tenant shall pay Landlord any business tax that would be payable by Tenant if demised premises were solely its property.

Insurance (Tenant):Tenant shall pay throughout the term of this lease and any extension public liability insurance covering the leased prem-ises

Utilities: Tenant Responsible

Lease Abstract: 7-Eleven

Repairs & Mainte-nance:

Landlord responsible to maintain structural soundness of the building, except from damage to building caused by acts or omission of Lessee; Tenant’s maintenance and repair respon-sibilities include all repairs, replacements, materials, and labor required for the interior and exterior of the building, including the roof, plumbing, electrical wiring, HVAC, paint of exterior walls, parking lot, driveways and service areas, and landscaped areas of premisis.

Assignment & Sublet-ting

Tenant has Right to assign or sublease the whole or any part of the demised premises, provided that any assignment or sublease shall be subject to all of the terms and conditions of this lease and that Tenant (7-Eleven) shall remain primarily liable for the payment of the rent and the performance of the terms and conditions of this lease.

Right of First Refusal

Upon receiving an acceptable, bona fide offer to purchase the demised premises, Landlord shall immediately notify ten-ant with written notice; Tenant then has twenty (20) days to notify Landlord, in writing, to exercise its option to purchase the demised premises under the same terms and provisions of the bona fide offer.

Equipment (Self-Service motor fuels equipment)

Tenant has Right to remove/replace the Equipment at its expense at any time during the term or any extended term of the lease. At the expiration or termination of the lease, Ten-ant shall be required to remove the Equipment at its expense and will comply with all applicable statutes, ordinances, and regulations regarding underground tanks and pipes. Upon any such removal/replacement, Tenant shall repair any dam-age to the demised premises at its expense.



Tenant: Viera Car Wash, LLC, a Florida limited liability company

Tenant Address: 110 S Courtenay Pkwy, Suite #2, Merritt Island, FL 32952

Property Address: 8205 N Wickham Rd, Melbourne, FL 32940

Date of Lease: August 24th, 2009

*Lease Commencement: February 1st, 2029

*Lease Expiration: January 31st, 2034

Lease Term: Five (5) years

*Initial Term Rent: $2,000 per Month

Rent Increases: $250 per Month for each Option Period

Renewal Options: Ten (10), Five (5) Year Options

*Annual Rent:

2/1/29 thru 1/31/34: $24,000

Option 1: 2/1/34 thru 1/31/39: $27,000Option 2: 2/1/39 thru 1/31/44: $30,000Option 3: 2/1/44 thru 1/31/49: $33,000Option 4: 2/1/49 thru 1/31/54: $36,000Option 5: 2/1/54 thru 1/31/59: $39,000Option 6: 2/1/59 thru 1/31/64: $42,000Option 7: 2/1/64 thru 1/31/69: $45,000Option 8: 2/1/69 thru 1/31/74: $48,000Option 9: 2/1/74 thru 1/31/79: $51,000

Taxes:

Tenant shall pay Landlord an amount equal to any and all sales, excise, privilege, transaction, and other taxes (exclud-ing income taxes) levied or assessed upon the leasing of the demised premises. In addition, Tenant shall pay Landlord any business tax that would be payable by Tenant if demised prem-ises were solely its property.Tenant shall reimburse Landlord for a pro-rata share of 25% of all taxes levied upon personal property, including trade fixtures and inventory, kept on the Lease Site.

Supplemental Lease Abstract: Viera Car Wash

Insurance (Tenant):

Tenant shall keep in full force and effect commercial general public liability insurance covering the Lease Site and Improve-ments erected thereon with combined single limit coverage of not less than $500,000 per occurance, naming Lessor as addi-tional insured and covering bodily injury and property damage resulting from Improvements of Tenant, including but not limited to any act of Tenant, and subject to a policy aggregate of not less than $1,000,000, or its agents, servants, and employees, in the construction, maintenance, repair, servicing, or removal of Tenant’s Improvements and/or any other improvement or fixture thereon.

Utilities: Tenant Responsible

Repairs and Maintenance:

Landlord responsible to maintain the driveways and drivelanes on the Premises, but not upon the Lease Site; Tenant shall keep the interior and exterior of building situated on the Lease Site in good repair including electrical, plumbing, HVAC, roof, and to maintain the landscaped areas, surface of the parking and driveway areas, including removal of trash and debris.

*Assuming 7-Eleven accepts its two remaining five-year option periods; 7-Eleven is currently sub-leasing ±0.94 Acres of Land to Viera Car Wash, LLC. The Landlord has an absolute NNN, Supplemental Lease in place with Viera Car Wash, LLC, that “commences on the date that the earlier of the following occurs: (1) 7-Eleven’s Lease expires; or (2) 7-Eleven’s Lease is terminated”. From this date, the Primary Term of Five (5) Years begins at a rental rate of $2,000 per month. At the expiration of the Primary Term, Viera has Nine (9), Five (5) Year Options to extend the Lease. The First Option constitutes a monthly rent of $2,250/Month; each additional option includes a $250 increase in rent-per-month from the previous option period, eventually set to reach a monthly rent of $4,250/Month. These rental amounts were calculated under the assumption 7-Eleven accepts its remaining option periods. If this Lease “commences prior to the expiration of 7-Eleven’s final option period, both parties will execute an Amendment to recalculate the monthly rents accordingly”.



Company Overview

7-Eleven is the world’s largest convenience store chain with more than 50,250 stores in 16 countries, of which approximately 10,100 are in North America. 7-Eleven also is one of the nation’s largest independent gasoline retailers. Its company’s name was changed from The Southland Corporation to 7-Eleven, Inc. after approval by shareholders on April 28, 1999. Founded in 1927 in Dallas, Texas, 7-Eleven pioneered the convenience store concept during its first years of operation as an ice company when its retail outlets began selling milk, bread and eggs as a convenience to guests.

The name 7-Eleven originated in 1946 when the stores were open from 7 a.m. to 11 p.m. Today, offering busy shoppers 24-hour convenience, seven days a week is the cornerstone of 7-Eleven’s business. 7-Eleven focuses on meeting the needs of convenience-oriented guests by providing a broad selection of fresh, high-quality products and services at everyday fair prices, speedy transactions and a clean, friendly shopping environment.

Each store’s selection of about 2,500 different products and services is tailored to meet the needs and preferences of local guests. Stores typically vary in size from 2,400 to 3,000 square feet and are most often located on corners for great visibility and easy access. The company operates, franchises and licenses approximately 8,600 stores in the U.S. and Canada. Of the more than 7,600 stores the company operates and franchises in the United States, more than 5,700 are franchised. 7-Eleven, Inc. is privately held and became a wholly owned subsidiary of Seven-Eleven Japan Co., Ltd. in Tokyo, Japan, and its affiliates on Nov. 9, 2005.

Property Name 7-Eleven Inc

Property Address 8205 N Wickham Rd, Melbourne, FL

Property Type Net Leased Convenience Store

Parent Company Trade Name Seven & I Holdings Co., LTD

Ownership Private

Credit Rating AA-

Rating Agency Standard & Poor’s

Revenue ±$10.361 Billion

Stock Symbol 3382

Board Tokyo

No. of Locations (US) ±7,800

No. of Employees (US) ±31,500

Headquartered Dallas, TX

Web Site www.7-eleven.com

Year Founded 1927

Property Description



Physical Description

THE OFFERING

Property Name ......................................................... 7-Eleven

Property Address.................................... 8205 N Wickham RdMelbourne, FL 32940

APN ....................................................26-36-15-00-00009.0-0000.00

Zoning .......................................................................... BU-1

SITE DESCRIPTION

Number of Stories ...........................................................One

Year Built ..................................................................... 1994

Year Remodeled ............................................................ 2004

GLA .....................................................................±3,061 SF

Lot (Acres) ........................................ ±81,778 SF (1.88 Acres)

Type of Ownership .................................................Fee Simple

Parking ................................................... ±33 Surface Spaces

Parking Ratio: 1,000 SF....................... ±10.78 Surface Spaces

Landscaping ........................................................ Professional

Topography .....................................................Generally Level

CONSTRUCTION

Foundation ....................................................... Concrete Slab

Framing ...................................................................... Wood

Exterior ........................................................... Concrete Block

Parking Surface ........................................................Concrete

Roof ............................................................................... Flat



Tenant Map



Regional Map



Bird’s Eye View


Demographics



City Overview | Melbourne, FLThe City of Melbourne is located in southern Brevard County, southeast of Orlando on Florida’s east coast. As of the 2014, the US Census Bureau estimated the City’s population to be 78,490. The municipal area is the second largest by size and population in the county. Melbourne is a principal city of the Palm Bay – Melbourne – Titusville, Florida Metropolitan Statistical Area. It sits astride the Indian River Lagoon with a large portion of the City located on Florida’s mainland, and a portion located on a barrier island. The Indian River Lagoon separates the mainland from the beach side barrier island.

Melbourne is the economic engine of Brevard County, capitalizing on high-tech industries, location on the Space Coast, and its established relationships with the region’s educational and research leaders. DRS Technologies, General Electric, Harris Corporation, Northrop Grumman, LiveTV, Ares Defense, and Hell ‘n Blazes Brewing Company all have operations or are headquartered in Melbourne, contributing to the City’s workforce of approximately 40,000 people.

Melbourne’s unparalleled natural amenities and a strong sense of community stewardship make the City one of the best places to live, work, and raise a family. The City has been ranked by Forbes as the number one metro area in Florida for affordable housing, short commute times, and cost of living. In addition, Melbourne has a historic downtown area that provides residents with ever increasing entertainment options and unique retail choices.



Demographics Report

Population 1-Mile 3-Mile 5-Mile2020 Projection 6,746 38,154 68,839 2015 Estimate 6,131 35,055 63,908 2010 Census 5,519 31,954 59,100 2000 Census 2,838 18,619 38,532 Growth 2015-2020 10.03% 8.84% 7.72%Growth 2010-2015 11.09% 9.70% 8.14%Growth 2000-2010 94.46% 71.62% 53.38%

Households 1-Mile 3-Mile 5-Mile2020 Projection 2,908 16,104 28,452 2015 Estimate 2,664 14,894 26,526 2010 Census 2,431 13,737 24,783 2000 Census 1,205 8,039 15,641 Growth 2015-2020 9.15% 8.12% 7.26%Growth 2010-2015 9.58% 8.42% 7.04%Growth 2000-2010 101.71% 70.88% 58.45%

2015 Est. Household Income 1-Mile 3-Mile 5-Mile$0 - $14,999 4.69% 5.89% 6.13%$15,000 - $24,999 5.56% 6.96% 6.72%$25,000 - $34,999 10.36% 8.74% 9.22%$35,000 - $49,999 16.85% 14.04% 13.59%$50,000 - $74,999 19.22% 18.50% 18.23%$75,000 - $99,999 14.45% 15.99% 14.70%$100,000 - $124,999 10.66% 12.19% 11.97%$125,000 - $149,999 5.86% 5.97% 6.46%$150,000 - $199,999 6.87% 7.31% 7.93%$200,000 - $249,999 2.10% 1.87% 2.18%$250,000 - $499,999 2.70% 2.18% 2.44%$500,000+ 0.68% 0.37% 0.44%Average Household Income $85,403 $83,746 $85,889Median Household Income $66,368 $69,432 $69,672

Index Melbourne Florida National*Cost of Living Index 98 101 100Goods & Services Index 102 101 100Groceries Index 113 105 100Health Care Index 96 97 100Housing Index 79 99 100Transportation Index 99 105 100Utilities Index 124 102 100

*The Cost of Living in Melbourne is 3.2% less than the Florida average and 2.0% less than the National average

Matthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.Matthews.com

7-ELEVEN8205 N Wickham RdMelbourne, FL 32940OFFERING MEMORANDUM

Patrick ToomeyManaging Partner DIRECT +1.310.919.5765 MOBILE +1.310.403.4984 [email protected] License No. 00881133

Justin BeckBroker of RecordBeck Partners CRE, LLC License No. BK3118299

Matt CoatesAssociate DIRECT +1.310.919.5805 MOBILE +1.714.366.1236 [email protected] License No. 01980718

Aron ClinePartner DIRECT +1.310.919.5816 MOBILE +1.818.632.0233 [email protected] License No. 01904371

Documents

7-ELEVEN WITH GAS STATION AND CAR WASH - Matthews€¦ · *7-Eleven is currently sub-leasing ±0.94 Acres of Land to Viera Car Wash, LLC. The Landlord has an absolute NNN, Supplemental