Augusta, Georgia - LoopNet...Augusta National Golf Club, Home of The Masters. Representative Photos. CONFIDENTIALITY AND DISCLAIMER. NON-ENDORSEMENT NOTICE. The information contained

Offering Memorandum

Augusta, Georgia

Replacement Store for Successful Location Purchased by Augusta

National

Brand New, 10-Year Lease with Four, Five-Year Renewal Options

Eight Percent Rental Increases Every Five Years in Base Term and Option

Periods

Now Open | Brand New Construction with Roof Warranty

Located Down the Street From Famed Augusta National Golf Club, Home of

The Masters

Representative Photos

CONFIDENTIALITY AND DISCLAIMER

NON-ENDORSEMENT NOTICE

The 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 improvements 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 hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success.Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Marcus & 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.

NET LEASED DISCLAIMER

RENDERINGS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services© 2017. All rights reserved.


FINANCIAL OVERVIEW

Subject Property

Overview3127 Washington Road, Augusta, Georgia 30907

Price: $2,459,000Cap Rate: 6.10%Rentable Square Feet: 6,000Annual Rent: $150,000Price/Square Foot: $410.00Land Area: 0.98 AcresYear Built: 2017

Lease SummaryTenant: Pep BoysWebsite: www.pepboys.comLease Guarantor: The Pep Boys - Manny, Moe & JackLease Type: Modified NNN with Roof WarrantyLease Term: 10 YearsOption Periods: 4, 5-Year OptionsRental Increases: 8% Every 5 YearsRent Commencement: 1/8/2018Lease Expiration: 12/31/2027

Base Term Annual Rent PSF Cap Rate

Lease Years 1-5: $150,000 $25.00 6.10%Lease Years 6-10: $162,000 $27.00 6.59%

Option Periods Annual Rent PSF Cap Rate

Option 1, Years 11-15: $174,960 $29.16 7.11%Option 2, Years 16-20: $188,957 $31.49 7.68%Option 3, Years 21-25: $204,073 $34.01 8.30%Option 4, Years 26-30: $220,399 $36.73 8.96%

INVESTMENT HIGHLIGHTS


Lease AbstractTenant ResponsibilitiesAt all times during the Term, Tenant shall, at its sole cost and expense, keep and maintain the roof, the interior of the Premises and the exterior wall surfaces of the Premises, glass, the HVAC system therein and the parking lot in the good order and repair and in a clean and safe condition. Tenant shall perform all maintenance, landscaping, repairs, paving and snow and ice removal to the Premises.

Landlord ResponsibilitiesDuring the Term, Landlord shall, at its sole cost and expense, replace the roof (if needed) (including downspout and gutters) of the building in which the Premises are located and any and all structural components of the building in which the Premises are located, including the walls and foundation thereof, shall be kept in good order, repair and a safe condition. While Tenant remains responsible for normal maintenance and repairs, the Landlord shall be responsible, at its sole cost and expense, for replacement of any portion of the parking lot that is beyond repair.

Investment Highlights• New, 10-Year Lease with Four, Five-Year Renewal Options• Eight Percent Rental Increases Every Five Years in Base Term

and Option Periods• Brand New Construction, Now Open!• This is a Replacement Store for the Location Purchased by

Augusta National to Expand the Golf Course• 20-Year Watertight Roof Warranty

Location Highlights• Surrounding Retailers Include Publix, Kroger, AutoZone,

Dollar Tree, SteinMart, DSW, Verizon, Cricket Wireless, Bank of America, Outback Steakhouse, Bonefish Grill, Applebee’s Grill & Bar, Chick-fil-A, Longhorn Steakhouse, Walgreens, Dunkin Donuts, Starbucks and Many More

• Located at Signalized Intersection• Down the Street from Famed Augusta National Golf Club,

Home of The Masters• Located 143 Miles East of Atlanta and 73 Miles West of

Columbia, South Carolina• Less Than Six Miles from Augusta University, Which had

More Than 8,500 Students as of Fall 2016

Tenant Highlights• Pep Boys has Over 800 Locations in 35 States• Expanding Throughout Multiple Markets Across the U.S.• Pep Boys Recently Aquired Just Brakes

TENANT SUMMARY


Pep Boys Recently Acquired

Just Brakes

In 1921, four Navy buddies spotted an emerging market for auto supplies stores and pooled $800 to open the first in Philadelphia, Pennsylvania. Since then, Pep Boys has been ahead of its time in the business world, weathering several economic eventsto remain one of the most widely-known, aftermarket auto parts and service brands in the country today.

Pep Boys has focused on the development of service and tire centers within its existing markets as its primary growth strategy. Today the company operates more than 7,400 service bays in nearly 800 stores nationwide.

Pep Boys created a new service and retail customer experience, which it refers to as “The Road Ahead.” Similar to the experience found at some high-end car dealerships, new Pep Boys stores feature customer lounges with amenities such as complimentary Wi-Fi and flat screen TVs near its full-service maintenance and repair shops, as well as the most diverse retail product assortment in the automotive aftermarket.

With almost 20,000 friendly and knowledgeable associates living the legacy of Manny, Moe & Jack, Pep Boys’ vision is to be the best place to shop and care for your car. In 2016 Pep Boys was acquired by Icahn Enterprises Holdings L.P.

AERIAL


Washington Road

Burger King

Augusta National Golf Club

One of the Most Famous Golf Clubs in

the World and Home of The

Masters

AERIAL


Augusta National Golf ClubUpon his retirement from championship golf in 1930, Bobby Jones had hoped to realize his dream of building a golf course. Following a brief conversation with Clifford Roberts, it was decided the Club would be built near Augusta, Georgia, provided a suitable piece of ground was available. Thomas Barrett, Jr., a mutual friend of Jones and Roberts, was consulted and recommended a 365-acre property called Fruitland Nurseries. An option was taken on the property for $70,000. Construction on the new course began in 1931 and the course opened in December 1932 with a limited amount of member play. Formal opening took place in January 1933.

Today, Augusta National Golf Club is one of the most famous golf clubs in the world. Since 1934, it has hosted the annual Masters Tournament, one of the four major championships in professional golf, and the only major played each year at the same course. It was the number one ranked course in Golf Digest’s 2009 list of America’s 100 greatest courses and in 2011 was the number 10 ranked course on Golfweek Magazine’s list of best classic courses in the United States, in terms of course architecture.

The FoundersAugusta National Golf Club was founded by Bobby Jones, the legendary amateur champion, and Clifford Roberts, an astute investment banker in New York. Jones helped design the golf course, working alongside the esteemed course architect Dr. Alister Mackenzie. Jones’s popularity within the game helped attract golf’s biggest stars to the Masters, beginning with the inaugural event in 1934. Roberts oversaw innumerable details of the Tournament. He tirelessly sought to refine the Masters experience for patrons, competitors and the wider world of golf.

The MastersLooking to provide a service to golf by hosting a tournament, Bobby Jones and Clifford Roberts decided to hold an annual event beginning in 1934. Roberts proposed the event be called the Masters Tournament, but Bobby Jones objected thinking it too presumptuous. The name Augusta National Invitation Tournament was adopted and the title was used for five years until 1939, when Jones relented and the name was officially changed. The first Tournament was held March 22, 1934, and beginning in 1940, the Masters was scheduled each year during the first full week in April.


AUGUSTA NTL GOLF COURSE

MARKET OVERVIEW

OVERVIEW

AUGUSTA

The metro is a center for medicine, biotechnology and cybersecurity activities.

Fort Gordon is a major economic driver employing nearly 17,000 workers. The facility

has been designated to house the U.S. Army Cyber Command. The market is also

home to military contractors such as Textron Specialized Vehicles.

Healthcare-product manufacturing supports the economy, in addition to the Medical

District. Covidien is a global health products company with operations in the area.

The famous Augusta National Golf Club and the Masters Tournament attract thousands

of tourists to the region each year.

DEMOGRAPHICS

ECONOMY

METRO HIGHLIGHTS

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

MEDICAL DISTRICT

University Hospital along with employers in the Medical District provide

tens of thousands of jobs in the region.

REGIONAL ECONOMIC HUB

The metro is an economic hub and houses operations for multiple large

corporations such as International Paper, Kellogg's and Procter & Gamble.

QUALITY OF LIFE

A low cost of living and various employment opportunities allow a high

homeownership rate of more than 66 percent, well above the U.S. rate.

600K

2017 POPULATION:

228K

2017 HOUSEHOLDS:

37.3

2017 MEDIAN AGE:

$49,300

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

37.8 U.S. Median:

$56,300 6.5%

Growth 2017-2022*:

5%

Growth 2017-2022*:

Augusta is the second largest city in Georgia and serves as the center of a growing metropolitan region of 520,700 in east central Georgia and west central South Carolina. Augusta is approximately 150 miles east of Atlanta and 75 miles west of Columbia, South Carolina on Interstate 20 and is located approximately halfway up the Savannah River. Augusta epitomizes the Classic South, boasting architecturally rich sites, Antebellum mansions, the beautiful Savannah River, and quiet tree-lined avenues. Each spring, Augusta plays host to The Masters golf tournament, the sport’s most prestigious event. This event also brings a tremendous economic boost to the metropolitan area. It is estimated that ticket sales alone have $36 million impact on the local economy, not including the impact of hotels, housing, restaurants and retail sales. Augusta is a regional center of medicine, biotechnology, military and manufacturing. The industrial base includes production of medical products, pharmaceuticals, golf carts, chemicals, industrial tools and textiles, among others. The area’s three largest employers are Georgia Health Sciences University, the Savannah River Site and the U.S. Army Signal Center at Fort Gordon. Numerous other companies with facilities, headquarters or distribution centers in Augusta include CareSouth, T-Mobile, Solo Cup Company, Automatic Data Processing, International Paper, NutraSweet, Club Car (Worldwide Headquarters), John Deere, Kellogg’s and Delta Air Lines baggage call center.

LOCAL & REGIONAL MAPS



DEMOGRAPHICS

POPULATION 1 MILE 3 MILES 5 MILES2010 Population 7,592 56,778 125,3072016 Population 7,895 59,829 131,7262021 Population 7,952 61,394 136,9082016 Male Population 3,734 28,562 62,4952016 Female Population 4,161 31,267 69,2322016 Median Age 36.0 36.3 36.5

RACE & ETHNICITY 1 MILE 3 MILES 5 MILESAmerican Indian, Eskimo 0.3% 0.3% 0.3%Asian 3.9% 5.0% 4.2%Black 26.2% 25.2% 29.4%Hawaiian/Pacific Islander 0.1% 0.2% 0.2%White 64.7% 64.9% 61.5%Other 1.8% 1.5% 1.5%Multi-Race 3.0% 2.9% 2.9%Hispanic Ethnicity 5.1% 4.8% 4.8%Not of Hispanic Ethnicity 94.9% 95.2% 95.2%

HOUSEHOLDS 1 MILE 3 MILES 5 MILES2010 Households 3,578 24,774 53,4922016 Households 3,703 26,078 56,1922021 Households 3,735 27,047 59,028

HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES2010 Avg Household Income $68,637 $77,161 $72,3222016 Avg Household Income $71,988 $82,569 $78,0092021 Avg Household Income $81,100 $92,500 $88,7102010 Med. Household Income $46,758 $50,822 $48,5712016 Med. Household Income $51,026 $55,394 $53,1572021 Med. Household Income $56,783 $62,334 $60,9402010 Per Capita Income $32,421 $33,737 $31,0392016 Per Capita Income $33,830 $36,060 $33,4442021 Per Capita Income $38,162 $40,819 $38,409

View inGoogle Maps

https://www.google.com/maps/place/3127+Washington+Rd,+Augusta,+GA+30907/@33.5141425,-82.0578667,950m/data=!3m1!1e3!4m5!3m4!1s0x88f9d296af79fff9:0xe27292ed09d3e286!8m2!3d33.5144109!4d-82.0565685

The Wolfe Retail Group of Marcus & Millichap specializes in the sale of single-tenant properties and shopping centers and has successfully assisted clients in selling over 450 separate commercial properties with a market value exceeding $1.25 billion. Having closed sales in more than 40 states, our track record is evidence that we are one of the premier brokerage teams in the United States.

With our experience and background in various fields such as law and finance, we have proved to be invaluable to our clients, earning their trust and exceeding their expectations while best assisting them in their real estate transactions.

For more about the Wolfe Retail Group, or to view all of our available listings, visit www.WolfeRetailGroup.com

Marcus & Millichap (NYSE: MMI) has established itself as a leading and expanding investment real estate company with nearly 1,500 brokers in 78 markets throughout the United States and Canada. The foundation of our investment sales is the depth of our local market knowledge. Our 44-year history of maintaining investor relationships in local markets enables us to be the best information source and transaction service provider in North America.

About Marcus & Millichap

The Wolfe Retail Group has sold over

450 properties in more than

40 states

Representative Photo

Barry M. WolfeSenior Managing Director Investments

[email protected](954) 245-3493

Alan LipskyVice President Investments


Catie JacksonMarketing Coordinator


Angelica LinaresTransaction Coordinator


Representative Photo

mailto:Angelica.Linares%40marcusmillichap.com?subject=

Documents

Augusta, Georgia - LoopNet...Augusta National Golf Club, Home of The Masters. Representative Photos. CONFIDENTIALITY AND DISCLAIMER. NON-ENDORSEMENT NOTICE. The information contained