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SINGLE TENANT Investment Opportunity
1109 WINCHESTER AVENUE
ASHLAND KENTUCKYACTUAL SITE
ACTUAL SITE 2 NATIONAL NET LEASE GROUP
EXCLUSIVELY MARKETED BY
SAM HANNASenior Vice PresidentSRS National Net Lease Group
3131 Camino Del Rio N, Suite 310San Diego, CA 92108D 619.489.9003M 619.884.4875 [email protected] CA License No. 01242719
LYNDON STOUDMIRE AssociateSRS National Net Lease Group
3131 Camino Del Rio N, Suite 310San Diego, CA 92108D 619.489.9004 M 720.595.0719 [email protected] CA License No. 02070715
Principal Broker: Mark Sneed, SRS Real Estate Partners, LLC | KY License No. 184818
ACTUAL SITE 3 NATIONAL NET LEASE GROUP
5INVESTMENT SUMMARY
Offering Summary | Investment Highlights
9PROPERTY OVERVIEW
Aerials | Site Plan | Location Map
17AREA OVERVIEW
Demographics
19FINANCIALS
Rent Roll | Brand Profile
CONTENTS
ACTUAL SITE 4 NATIONAL NET LEASE GROUP
PROPERTY PHOTO
ACTUAL SITE 5 NATIONAL NET LEASE GROUP
SRS National Net Lease Group is pleased to present the opportunity to acquire the fee simple interest (land & building) in a corporate guaranteed, freestanding, single tenant, net leased GameStop investment property located in Ashland, KY. The tenant, GameStop, Inc., has just over 1 year remaining on their lease with 1 (5-year) option to extend. The lease features a unique 13% rental increase at the beginning of the option period and is NNN with landlord responsibilities limited to roof, structure, and CAM (subject to reimbursement). The site is also located within a Kentucky opportunity zone, allowing investors to potentially capitalize on tax benefits.
The site is located along Winchester Avenue (19,700 VPD), one of the primary retail thoroughfares for the city of Ashland. GameStop is also located less than half a mile southeast of Ashland Town Center Mall, a 420,000 SF mall anchored by JCPenney, Belk, and T.J.Maxx. Other nearby national/credit tenants include a 24-hour Walmart Supercenter, Dick’s Sporting Goods, Kroger, Kohl’s and Big Lots, further increasing consumer traffic and promoting crossover shopping in the area. The site is poised to benefit from limited competition as a premier destination for new games in a growing e-sports and gaming industry. The site serves over 60,000 residents and 32,500 employees in a 5-mile radius. The 3-mile population boasts an average household income of nearly $61,000.
INVESTMENT SUMMARY
ACTUAL SITE 6 NATIONAL NET LEASE GROUP
PROPERTY PHOTOS
ACTUAL SITE 7 NATIONAL NET LEASE GROUP
Offering
Property Specifications
PRICING $925,000
NET OPERATING INCOME $96,525
CAP RATE 10.43%
GUARANTY Corporate
TENANT GameStop, Inc.
LEASE TYPE NNN
LANDLORD RESPONSIBILITIES Roof, Structure, and CAM (Subject to Reimbursement)
Parcel Map
OFFERING SUMMARY
RENTABLE AREA 2,700 SF
LAND AREA 0.33 Acres
PROPERTY ADDRESS 1109 Winchester Avenue, Ashland, KY 41101
YEAR BUILT 2005
PARCEL NUMBER 030-15-06-015.00
OWNERSHIP Fee Simple (Land & Building Ownership)
8 NATIONAL NET LEASE GROUP
Historical Occupancy | Corporate Guaranteed• GameStop has just over 1 year remaining on the initial term• The corporate guaranteed lease features 1 (5-Year) option period to extend
with a 13% increase at the beginning of the option• Historical occupancy - tenant has operated at the site since 2005
NNN Lease | Fee Simple Ownership | Limited Landlord Responsibilities
• Tenant reimburses for CAM, insurance, and taxes• Landlord responsibilities limited to roof, structure, and CAM
(subject to reimbursement)
Major Thoroughfare | Excellent Visibility | Large Pylon Sign• Located along Winchester Avenue (19,700 VPD), one of the primary retail
thoroughfares for the city of Ashland• Just off of 12th Street (14,300 VPD) near the signalized intersection• Excellent visibility due to the large pylon sign located on Winchester Avenue
Located Less than 0.5 Miles from Ashland Town Center Mall | 24-hr Walmart Supcenter | Retail Corridor
• Less than half a mile southeast of Ashland Town Center Mall, a 420,000 SF mall anchored by JCPenney, Belk, and T.J.Maxx
• Other nearby national/credit tenants include 24-hour Walmart Supercenter, Dick’s Sporting Goods, Kroger, Kohl’s and Big Lots
• Increases consumer traffic and promotes crossover shopping
KY Opportunity Zone | Significant Tax Benefits • The property is situated within a Kentucky Opportunity Zone• Investments made by individuals in these zones, under certain conditions,
may be eligible for preferred tax treatment
Demographics In Local Trade Area • More than 60,000 residents and 32,500 employees support the
5-mile trade area• The 3-mile population boasts an average household income of nearly $61,000
INVESTMENT HIGHLIGHTS
9 NATIONAL NET LEASE GROUP
Location
Parking
Access
Parcel
Traffic Counts
Year Built
Improvements
Zoning
PROPERTY OVERVIEW
Located inBoyd County
There are approximately 20 parking spaces
on the owned parcel. The parking ratio is
approximately 7.41 stalls per 1,000 SF of leasable area.
Winchester Ave 1 Access Point
11th Street 1 Access Point
Parcel Number: 030-15-06-015.00
Acres: 0.33 Square Feet: 14,200 SF
Winchester Ave 19,700 Cars Per Day
Ohio River Scenic Byway/ U.S. Hwy 52
25,300 Cars Per Day
2005
There is approximately 2,700 SF of existing building area
B-2
CARS PER DAY19,700
CARS PER DAY10,700
CARS PER DAY14,300
CARS PER DAY13,200
KING’S DAUGHTERS MEDICAL CENTER
(465 BEDS)
U.S. HIG
HWAY 60/23
12TH STREET
13TH STREET
WINCHESTER AVE.
10 NATIONAL NET LEASE GROUP
OHIO RIVER
U.S. HIGHWAY 60/23
U.S.
HIG
HWAY
60
CARS PvER DAY14,300
CARS PER DAY19,700
MIDTOWN MALL
ASHLAND TOWN CENTER
HOLY FAMILY GRADE SCHOOL
CARS PER DAY13,200
WINCHESTER AVE.
11 NATIONAL NET LEASE GROUP
HOLY FAMILY GRADE SCHOOL
WINCHESTER AVE.
U.S. HIGHWAY 60/23
11TH ST.
CARS PER DAY19,700 CARS PER DAY
13,200
ASHLAND TOWN CENTER
12 NATIONAL NET LEASE GROUP
OHIO RIVER
13 NATIONAL NET LEASE GROUP
STATE HIGHWAY 168
U.S. HIGHWAY 52
KING’S DAUGHTERS MEDICAL CENTER
ASHLAND INDEPENDENT
SCHOOLS
U.S.
HIG
HWAY
60
WINCHESTER AVE.
OHIO RIVER
12TH
STR
EET
13TH
STR
EET
CARS PER DAY19,700
CARS PER DAY10,700
CARS PER DAY14,300
CARS PER DAY25,300
WINCHESTER AVE
11TH S
T.
12TH
ST.
PYLON
SIGN
RIVER CITIES MOTORS INC
CITY AUTO TRIM SHOP INC
CARS PER DAY19,700
CARS PER DAY14,300
14 NATIONAL NET LEASE GROUP
ACTUAL SITE 15 NATIONAL NET LEASE GROUP
PROPERTY PHOTO
16 NATIONAL NET LEASE GROUP
CINCINNATI150 min 136 miles
COLUMBUSLOCATION MAP
2019 ESTIMATED POPULATION
1 Mile 3,888
3 Mile 33,046
5 Mile 60,076
2019 AVERAGE HOUSEHOLD INCOME
1 Mile $50,051
3 Mile $60,727
5 Mile $59,438
2019 ESTIMATED TOTAL EMPLOYEES
1 Mile 8,801
3 Mile 24,195
5 Mile 32,526
ASHLAND
17 NATIONAL NET LEASE GROUP
AREA OVERVIEW Ashland, Kentucky
Ashland is a home rule-class city in Boyd County, Kentucky, in the United States. Ashland, the largest city in Boyd County, is located upon the southern bank of the Ohio River. The City of Ashland had a population of 21,323 as of July 1, 2019. Ashland is a part of the Huntington-Ashland metropolitan area;. Ashland is the second-largest city within the MSA, after Huntington, West Virginia. Ashland serves as an important economic and medical center for northeast Kentucky and is part of the fifth-largest metropolitan area in Kentucky.
A major steel producer formed from ARMCO Steel Company L.P, which was a limited partnership between Armco and Kawasaki in 1994. AK Steel eventually purchased Armco Steel Inc.
Ashland is home to the 47 - acre wooded Central Park. Tourists can enjoy the many facilities offered by this park. In addition, there are other parks including the Clyffeside Park, and the sports oriented AK Steel Sports Park. Visitors to the city may also take a trip to the Pendleton Art Center which exhibits paintings, carved gourds, stained glass, and wood carvings by the local artists. Rose Hill Church is one of the beautiful churches located in the area.
The two private schools serving the Ashland area are the Holy Family School and the Rose Hill Christian School. Holy Family is affiliated with Holy Family Catholic Church and currently offers K–12 education. Rose Hill is affiliated with the Rose Hill Baptist Church and offers K–12. Post-secondary educational opportunities include Ashland Community and Technical College which has multiple campuses within the city. Morehead State University also has a satellite campus located in Ashland.
The fourth largest hospital in the state of Kentucky, the 465-bed not-for-profit institution is the city’s largest employer at over 4,000 employees. It offers numerous inpatient and outpatient services for the region.
Another hospital, the Ashland Tuberculosis Hospital, was located on a hill above U.S. Route 60 in the Western Hills section of the city and opened in 1950. It featured 100 beds and served 18 eastern Kentucky counties. It has long since been closed due to the discovery of antibiotics that successfully treat tuberculosis, eliminating its necessity. The facility has since been used as a state office building and is now owned by Safe Harbor, a secure domestic violence shelter and advocacy center.
Rickenbacker International Airport is the nearest airport
18 NATIONAL NET LEASE GROUP
AREA DEMOGRAPHICS
1 MILE 3 MILES 5 MILES
2019 Estimated Population 3,888 33,046 60,076
2024 Projected Population 3,817 32,527 59,130
2010 Census Population 4,016 33,867 61,905
2019 Estimated Households 1,777 14,051 24,679
2024 Projected Households 1,745 13,828 24,281
2010 Census Households 1,838 14,421 25,361
2019 Estimated White 92.13% 94.43% 93.55%
2019 Estimated Black or African American 3.70% 2.67% 3.57%
2019 Estimated Asian or Pacific Islander 1.49% 0.65% 0.70%
2019 Estimated American Indian or Native Alaskan 0.41% 0.28% 0.29%
2019 Estimated Other Races 1.08% 0.52% 0.53%
2019 Estimated Hispanic 2.62% 1.63% 1.83%
2019 Estimated Average Household Income $50,051 $60,727 $59,438
2019 Estimated Median Household Income $27,635 $41,650 $42,015
2019 Estimated Per Capita Income $22,973 $25,814 $24,647
2019 Estimated Total Businesses 771 1,612 2,509
2019 Estimated Total Employees 8,801 24,195 32,526
ACTUAL SITE 19 NATIONAL NET LEASE GROUP
Lease Term Rental Rates
TENANT NAMESQUARE
FEETLEASE START
LEASE END
BEGIN INCREASE MONTHLY PSF ANNUALLY PSFRECOVERY
TYPEOPTIONS
GameStop, Inc. 2,700 Dec 2005 Nov 2020 Current - $8,044 $2.98 $96,525 $35.75 NNN 1 (5-Year)
(Corporate Guaranty) Opt 1: $109,080 /Yr
FINANCIAL INFORMATION
Price $925,000
Net Operating Income $96,525
Cap Rate 10.43%
Lease Type NNN
For financing options and loan quotes:Please contact our SRS Debt & Equity team at [email protected].
RENT ROLL
PROPERTY SPECIFICATIONS
Year Built 2005
Rentable Area 2,700 SF
Land Area 0.33 Acres
Address 1109 Winchester Avenue, Ashland, KY 41101
ACTUAL SITE 20 NATIONAL NET LEASE GROUP
BRAND PROFILE GameStop gamestop.com
GameStop Corp., a Fortune 500 company headquartered in Grapevine, Texas, is a global, multichannel video game and consumer electronics retailer. GameStop operates over 5,700 stores across 14 countries. The company’s consumer product network also includes www.gamestop.com and Game Informer magazine, the world’s leading print and digital video game publication. The Company stores sell new and used video game hardware and software, as well as accessories. GameStop markets its products worldwide.
COMPANY TYPE 2019 EMPLOYEES 2019 REVENUE
Public (NYSE: GME) 16,000 $8.29 B
2019 ASSETS 2019 EQUITY CREDIT RATING
$4.04 B $1.34 B S&P: BB-
RETAIL PROFESSIONALS
OFFICES LARGEST REAL ESTATE SERVICES FIRMin North America
exclusively dedicated to retail
RETAIL LISTINGSin 2018
TRANSACTION VALUEin 2018
275+ 25+ #1 1500+ $2.6B
SRS NATIONAL NET LEASE GROUP IS THE EXCLUSIVE NET LEASE CAPITAL MARKETS TEAM OF SRS REAL ESTATE PARTNERS.
This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made
available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not
purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified
purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.
*Statistics are for 2018
SRSRE.COM/NNLGACTUAL SITE
