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hermitage commons 5205 Old Hickory Boulevard :: Hermitage, Tennessee 37076
exclus ive adv isors
Investment ProPertIes GrouP
:: Paul GaIther
+1 615 248 1161
:: mIa Keller hIll
+1 615 248 1171
FInancInG InquIrIes
:: K.o. Kennedy
+1 615 248 5935
:: scott brady
+1 615 248 5933
:: bIll mcKnIGht
+1 615 248 5941
:: clIFF Joyner
+1 615 248 1134
AffiliAted Business disclosure
CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to pur-chase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.
ConFIdEnTIAlITY AgREEMEnT
This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.
This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “owner”), to be all-inclusive or to contain all or part of the information which prospective inves-tors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportu-nity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. these summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.
neither the owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.
The owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. the owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the owner and any conditions to the owner’s obligations therein have been satisfied or waived.
By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authori-zation of the owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the owner or cBre, inc.
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.
disclAiMer
© 2015 cBre, inc. the information contained in this document has been obtained from sources believed reliable. While cBre, inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. the value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
executive summary
the offering
investment overview
investment Highlights
location Map
Property overview
Property description
Site Plan
Aerial View of the Property
Market overview
Hermitage, tennessee
nashville, tennessee
Aerial Views of the submarket
comparables
retail trade Area Map
demographics
Financials
rent roll
lease expiration schedule
Pro Forma
01
02
03
04
Table oF conTenTs
2
invesTMenT overview
price $3,550,000
pro forma noi $236,796
cap rate 6.7%
gla 11,560 sf
occupancy 100%
site size 1.83 ac
year built 2008
The oFFering
cbre is pleased to offer for sale hermitage commons, a ± 11,560 sf
retail center located in the charming community of hermitage, tennessee.
The property benefits from its strong and diverse tenant mix, attractive
curb appeal, signalized access, and strategic location in a highly
dynamic submarket, situated between interstate-40 (84,894 aDt) and
the intersection of Lebanon Pike and Old Hickory Boulevard (72,428
ADT). This offering provides an investor the opportunity to acquire a
fully stabilized retail investment property with excellent tenants, long-term
leases, and minimal capital costs in the heart of one of Nashville’s fastest
growing submarkets.
hermitage commons 5205 old hickory boulevard :: herMiTage, Tennessee 37076
invesTMenT highlighTs
Submarket Advantage
hermitage commons is located in a highly dynamic submarket in hermitage,
tennessee. Within a 3-mile radius are 50,713 people (21,860 households) with
average household incomes of $63,976, which translates to over $1.4 billion
in spending power. In addition to these attractive demographics, the area is
experiencing strong growth. Within a 3-mile radius population has increased
almost 10% in the last five years and is expected to increase another 8% over
the next five years. The Donelson-Hermitage retail submarket consists of over 6
million square feet of retail space and boasts a “who’s who” list of most retailers
operating in the middle tennessee market.
strategic location
hermitage commons is positioned to capitalize on its fast-growing submarket
thanks to its strategic location between interstate-40 (84,894 aDt) and nearby
intersection of Lebanon Pike and Old Hickory Boulevard, one of the busiest
intersections in Nashville with combined average daily traffic counts of 72,428.
This convenient access expands the trade area for the center and makes for
convenient ingress and egress into the center for a large population of customers.
Strong Tenant Mix
Hermitage Commons benefits from a diverse tenant mix of service and necessity
retail, featuring nationally recognized tenants. each tenant is subject to a long-
term lease and backed by successful, well capitalized operators.
minimal capital costs
the property was built in 2008 and features brick and masonry construction.
Hermitage Commons’ age and build quality promise to minimize near-term
capital costs.
curb appeal
Hermitage Commons benefits from excellent curb appeal and ingress/egress.
The Property is constructed with an appealing brick fascia with attractive
architectural detailing. Furthermore, Hermitage Commons benefits from
excellent access thanks to its location at a signalized intersection and ample
curb cuts. These fundamentals markedly enhance the Property’s long-term
value.
HermitageCommons
ProPerTy overv i ew
property location 5205 Old Hickory Blvdhermitage, tn 37076
gla 11,560 sf
site size 1.83 Ac
zoning cs, commercial services
year built 2008
parking 78 total spaces | 6.75 per 1,000
VISIBILITy/ACCeSSS The subject site features approximately 200 feet of frontage and visibility along the west side of old Hickory Boulevard. the site features access via two cross access entryways with the neighboring proper-ties to the north and the south. the cross access to the north has a signal control at old lebanon dirt road and old Hickory Boulevard.
flooD plain According to the flood insurance Map number 47037C 0253F (April 20, 2001), Zone AE by the Federal Emergency Management Agency, the subject is located within a 100-year floodplain. The building did not flood however during the May, 2010 flood that devastated nashville. it is considered unlikely to flood if it was not damaged in this flood. When the property was elevated, a drainage way was created at the front of the property and extends around to the back of the property.
construction
founDation continuous footing with reinforced concrete slab on grade
exterior Walls Masonry construction with brick veneer with a five foot dryvit and brick parapet
roof Membrane covering
s i T e P lan
OLD
HIC
KORY BLVD
Nai
l Lou
nge
1,20
0 SF
Tazi
kis
Caf
e2,
462
SF
Penn
Sta
tion
Subs
1,63
8 SF
Spor
t Clip
s1,
210
SF
Valu
e Va
pe1,
190
SF
Jets
Piz
za1,
760
SF
Dun
kin
Don
uts
2,10
0 SF
NOT A PART OWNED BY REGIONS BANK
aer ial v i ew oF The ProPerTy
not a Partowned by reGIons banK
Hermitage has grown since the 1970’s, from a quiet suburb of
Metro nashville to a bustling community with a population of
more than 36,000 people and 15,000+ households. Median
income is $57,084 and Average Household income is $72,056.
Hermitage represents ‘flourishing families’ and ‘singles and
starters’.
there has been talk of housing starts, a new full service hotel and
additional retail coming to Hermitage. there are currently several
developers adding retail and restaurants in the area.
With its proximity to the airport, lakes, golf and greenways; the
historical significance of the area as the home of President Andrew
Jackson, and proximity to thriving West Wilson county to the east;
Hermitage has great potential for growth and development in the
coming years. Additionally, tristar summit Hospital is in the heart
of Hermitage offering excellent healthcare for the community.
Additionally, the donelson Hermitage chamber of commerce
has been working diligently with the Mcgavock Cluster schools
to support efforts to provide a quality education for students in
the area. Mcgavock High School is now the highest ranked
academic high school in davidson county, and is the only high
school in the nation utilizing the Academy model and achieving
perfect scores. Business partners from the community work with
Academy coaches to provide resources for students, business
tours, job shadowing and mentorship help on capstone projects.
MarkeT overview
hermi tage , Tennessee
HermitageCommons
MarkeT overv i ew
nashville’s TOP 10 eMPlOYeRs
rank coMPany no. oF eMPloyees
1 Vanderbilt University 21,398
2 hca holdings 7,000
3 nissan north america 6,600
4 Saint Thomas Health Services 6,500
5 gaylord enter tainment co. 4,000
6 the kroger co. 3,500
7 asurion 3,500
8 electrolux 3,300
9 randstad 3,260
10 Shoney’s Inc. 3,000
the nashville metropolitan area consists of a 14 county region in middle
tennessee. nashville is consistently ranked as one of the top u.s. markets in
terms of investment opportunities, diversity of the local economy, employment,
and quality of life. over the past decade nashville has experienced tremendous
increases in employment, population, and income growth.
nashville’s population exceeds 1.6 million and is expected to grow 5% in the next
five years. The city has one of the most diverse economies in the U.S. with major
employers in the healthcare, manufacturing, automotive, and entertainment
sectors. over 14,388 jobs have been added in Middle Tennessee in 2014 alone,
due to companies such as Beretta, FedEx, general Motors, and Under Armour,
Inc. relocating, expanding, or moving facilities into the nashville MSA. The influx
of jobs, residents, and tourists will continue to boost nashville’s economy and
need for retail.
The region offers specific advantages for businesses and individuals alike, with
operation costs and the cost of living 10% below the us average, household
incomes 21% above the national average, no personal income tax, a highly skilled
workforce, 21 accredited four-year educational institutions (including Vanderbilt
University), an excellent geographical location, a seasonal climate, a creative and
diverse culture, and an abundance of waterways and parks. these advantages
have shaped the region, becoming the destination for corporate headquarters to
companies such as nissan north America, Bridgestone Americas, HcA, dollar
general, Asurion, Caterpillar Financial, Community Health Systems, Vanguard
Health Systems, and louisiana Pacific (to name a few).
the diverse economy, strong educational and cultural amenities, progressive
political leadership, strategic location, and excellent transportation system
combine to make nashville a desirable business location primed for continued
economic growth.
nashv i l l e , Tennessee
aer ial v i ew oF The subMarkeT
4
1
2
herMiTage MarkeTPlace
sTarbucks
herMiTage coMMons ii
old
hIc
Kory
blv
d (
42,4
91 a
dt)
norThlake village
Percy PrIest laKe
HermitageCommons
(84,894 adt)
aer ial v i ew oF The subMarkeT
wells Fargo
walMarT
duPot tyler
mIddle school
2
76
herMiTage MarkeTPlace
sTarbucks
old
hIcKo
ry blvd
shoPPes aT herMiTage hills
usPs
3
old hIcKory blvd (42,491 adt)lebanon PI
Ke (29,937 a
dt)
lebanon PIKe (29,937 adt)
Jackson Village
OakwOOd COmmOns
HermitageCommons
cumberland rIver
coMPeT i T i ve area reTa i l
# PRoPERTY nAMEYR BUIlT/
renoVAtedsf TYPE MAJor tenAnts oCCUPAnCY quoted rAtes
Hermitage commons 2008 11,560 retail strip centerJet’s Pizza, Penn Station Subs, Taziki’s, Value Vape, sports clips, dunkin donuts/Baskin robbins
100% $22 - 25
Hermitage commons ii 2010 14,950 retail strip centerQdoba Mexican grill, Urgent Care, CareSpot, T-Mobile, Yogurt Mountain
100% $20 - 23
Hermitage Marketplace 1997 216,923 community center
Home depot, Walgreens, staples, electronic Express, Famous dave's, Pizza Hut, Sprint, Starbucks, IHoP, Steak n Shake, Verizon Wireless, Wingstreet, fazoli's, Jiffy lube
100% n/A
shoppes at Hermitage Hills 2014 22,400 retail strip centerAt&t, tulip nails, Mellow Vape, Mattress King, Papa Murphy's Pizza, Farm Bureau insurance, urgent Md
94% $19 - 23
northlake Village 1988 140,253 neighborhood centerKroger, Petco, Jersey Mike's Subs, domino's Pizza, H&R Block, Fifth Third Bank, Panera Bread
91% $16 - 22
Jackson downs 1997 253,979 Power CenterTarget, Marshall's, office Max, Burkes outlet, gameStop, Sally Beauty, H&R Block, dollar Tree, Cato, Rent-A-Center, Party City
96%$17 - 22
Jackson Village 1981 91,837 neighborhood center Kroger, cVs, tuesday Morning, Boost Mobile 95% $13 - $15
oakwood commons 1988 278,017 community center
Publix, PetSmart, goody's, Bed Bath & Beyond, ross dress for less, Wells fargo Bank, Supercuts, gnC, Check Into Cash, H&r Block, Mattresses unlimited, Anytime fitness, Kfc, Mcdonald's, charming charlie
85% n/A
2
3
4
5
1
7
6
coMParables MaP
23
45
6
1
7
HermitageCommons
reTa i l Trade area MaP
1 mile radius 3 mile radius 5 mile radius
Po
Pu
la
ti
on
2015 Population 5,917 50,713 104,5452020 Population 6,303 54,846 112,1592010 Population 5,517 46,164 96,2842000 Population 5,377 38,434 83,251Percent Pop Change: 2010 to 2015 7.24% 9.85% 8.58%Percent Pop Change: 2015 to 2020 6.53% 8.15% 7.28%2015 Median Age 36.41 36.16 38.402015 Average Age 37.89 37.33 38.65
Ho
us
eH
ol
ds
2015 Households 2,646 21,860 43,9862020 Households 2,820 23,517 47,0622010 Households 2,459 20,125 40,7892000 Households 2,412 16,373 34,680Percent HH Change: 2010 to 2015 7.58% 8.62% 7.84%Percent HH Change: 2015 to 2020 6.60% 7.58% 6.99%Average Household size 2.43 2.32 2.37
in
co
me
2015 Median Household income $43,762 $51,311 $52,7032015 Average Household income $54,743 $63,976 $66,0392015 Per Capita Income $24,480 $27,577 $27,785
Ho
us
in
g 2015 Housing units 2,942 23,398 46,816occupied units 2,646 21,860 43,986Vacant Housing units 296 1,538 2,8302015 owner-occupied Housing units 1,550 12,376 29,3872015 renter-occupied Housing units 1,096 9,484 14,599
deMograPh ics
finAnciAls
Hermitage Commons
Rent Roll - July 2015
Square % of Lease Lease Recovery Estimates Total Total % of Space Tenant Footage Center Start End Annual Per Month Per SF % of Per SF Total Recoveries Income Income/SF Center
Center CAM Tax Insurance Recoveries Per SF
101 Jet's Pizza 1,760 15.22% 6/2/2008 6/30/2018 $44,422 $3,702 $25.24 16.85% 1-5 yr $3.23 $2.15 $0.34 $10,059 $5.72 $54,481 $30.96 16.52%
102 Value Vape 1,190 10.29% 3/1/2015 12/31/2019 $26,180 $2,182 $22.00 9.93% 2% per year 1-5 yr $3.23 $2.15 $0.34 $6,801 $5.72 $32,981 $27.72 10.00%
103 Sports Clips 1,210 10.47% 4/1/2015 3/31/2025 $26,620 $2,218 $22.00 10.10% 10% yr 5 2-5 yr $3.23 $2.15 $0.34 $6,915 $5.72 $33,535 $27.72 10.17%
104 Penn Station Subs 1,638 14.17% 8/19/2012 8/31/2017 $36,036 $3,003 $22.00 13.67% 3-5 yr $3.23 $2.15 $0.34 $9,362 $5.72 $45,398 $27.72 13.77%
106 Taziki's 2,462 21.30% 7/1/2014 6/30/2019 $54,164 $4,514 $22.00 20.55% 2-5 yr $3.23 $2.15 $0.34 $14,071 $5.72 $68,235 $27.72 20.70%
107 Nail Salon 1,200 10.38% 10/31/2008 10/31/2018 $30,000 $2,500 $25.00 11.38% 1-5 yr $3.23 $2.15 $0.34 $6,858 $5.72 $36,858 $30.72 11.18%
108Dunkin Donuts / Baskin Robbins
2,100 18.17% 5/1/2008 12/31/2019 $46,200 $3,850 $22.00 17.53% 2-5 yr $3.23 $2.15 $0.34 $12,002 $5.72 $58,202 $27.72 17.65%
Effective Base RentOptionsIncreases
Hermitage CommonsExpiration Schedule
Square Feet ExpiringYear Total % Cumulative %
2015 0 0% 0 0%2016 0 0% 0 0%2017 1,638 14% 1,638 14%2018 2,960 26% 4,598 40%2019 5,752 50% 10,350 90%2020 0 0% 10,350 90%2021 0 0% 10,350 90%2022 0 0% 10,350 90%2023 0 0% 10,350 90%2024 0 0% 10,350 90%2025 1,210 10% 11,560 100%2025+ 0 0% 11,560 100%
Total Existing 11,560 100.00% MTM 0 0.00%
Vacant 0 0.00%Total SF 11,560 100.00% NOTE: Does not include vacant space
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
SF E
xpiri
ng
Year
Existing Tenant Expiration Schedule
Total Cumulative
finAnciAls
Hermitage CommonsPro Forma
Pro Forma
Total PSFREVENUES
Base Rent $263,622 $22.80Total Base Rent 263,622 22.80
Recoveries $66,068 5.72Total Recoveries 66,068 5.72
Other Income [1] 10,750 0.93Total Other Income 10,750 0.93TOTAL POTENTIAL GROSS REVENUE 340,440 29.45
General Vacancy & Credit Loss [2] 5.00% (17,022) (1.47)EFFECTIVE GROSS REVENUE 323,418 27.98
OPERATING EXPENSES [3]
Accounting & Bookkeeping 1,326 0.11Cleaning 225 0.02Electricity 4,403 0.38Exterior Lighting 3,000 0.26Lawn Maintenance 10,500 0.91Pest Control 456 0.04Repairs & Maintenance 3,000 0.26Sewer 5,341 0.46Site Maint. & Repairs 250 0.02Snow Removal 300 0.03Trash Service 9,431 0.82Water 4,959 0.43Real Estate Taxes 24,860 2.15Insurance 3,901 0.34Management Fee 4.00% 12,937 1.12Capital Reserves $0.15 /sf 1,734 0.15
TOTAL OPERATING EXPENSES 86,622 7.49NET OPERATING INCOME $236,796 $20.48
[1] Other Income is CAM reimbursement
from Regions Bank
[2] Actual occupancy is 100%
[3] Expenses based on 2015 Budget
www.cbremarketplace.com/HermitageCommons
For more information on Hermitage Commons please visit our website at:
Investment ProPertIes GrouP
:: Paul GaIther
+1 615 248 1161
:: mIa Keller hIll
+1 615 248 1171
FInancInG InquIrIes
:: K.o. Kennedy
+1 615 248 5935
:: scott brady
+1 615 248 5933
:: bIll mcKnIGht
+1 615 248 5941
:: clIFF Joyner
+1 615 248 1134
