NORTHPARK WALK STRIP CENTER - LoopNet · Green Ghost Tacos 1,430 15.71% 6/26/2015 6/30/2020 $14.57 $1,736 $20,835 07/01/2018 $22,265 NNN 1 x 3 Yrs Dog Spot Pet Grooming 1,105 12.14%

OFFERING MEMORANDUM

1

1290 East County Line Road • Ridgeland, MS 39157

NORTHPARK WALK STRIP CENTER


Ridgeland, MS

ACT ID Y0360259

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Non-EndorsementsMarcus & 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.

DisclaimerTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE

CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we

make no representations or warranties, express 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, Inc. Â© 2017 Marcus &

Millichap. All rights reserved.

2

P R E S E N T E D B Y

Ryan Roedersheimer

Associate

Associate Director - National Retail Group

Cincinnati Office

Tel: (513) 878-7700

Fax: (513) 878-7710

[email protected]

License: OH SAL.2015004880

Joel Dumes

Senior Vice President Investments

Senior Director - National Retail Group

Cincinnati Office

Tel: (513) 878-7720

Fax: (513) 878-7710

[email protected]

Licenses: OH SAL.2003013045, KY

63818

Stan Falk

First Vice President Investments


Cincinnati Office

Tel: (513) 878-7721

Fax: (513) 878-7710

[email protected]


3

TABLE OF CONTENTS


4

INVESTMENT OVERVIEWSection 1

•

FINANCIAL ANALYSISSection 2

•

MARKET OVERVIEWSection 3

•

5

INVESTMENT

OVERVIEW


#

OFFERING SUMMARY

▪ Three-Unit Strip Center | Internet-Resistant Tenant Mix

▪ 100 Percent Occupied | All Tenants Under Triple-Net Leases

▪ Great Signage and Visibility with Multiple Points of Ingress/Egress

▪ Dominant Retail Corridor Which Sees 24,000 Vehicles Per Day

▪ One-Mile East of Interstate-55 with 104,000 Vehicles Per Day

▪ Located Ten-Miles North of Jackson, the State Capital

INVESTMENT HIGHLIGHTS

The Dumes Falk Group of Marcus & Millichap is pleased to bring to market Northpark Walk Strip Center, a 100 percent occupied three-tenant strip center in

Ridgeland, Mississippi – ten miles north of Jackson, the state capital. The subject property is situated on approximately 1.04 acres and comprised of 9,100-square

feet with ample parking, multiple points of ingress/ egress, and excellent visibility along a highly trafficked retail corridor.

Northpark Walk Strip Center is currently occupied by three-tenants, WORKOUT ANYTIME, Green Ghost Tacos and Dog Spot Pet Grooming, all of which are under

triple-net leases. WORKOUT ANYTIME is a fast-growing 24/7 fitness company with over 100 franchised locations throughout the Midwest and South. The fitness

club franchisees signed a ten-year lease with personal guarantees in 2015 and occupies 6,565-square feet or 72 percent of the GLA. Dog Spot Pet Grooming,

occupying 1,105 square feet since 2009 recently signed an early three-year extension. In 2015, Green Ghost Tacos opened its first location in Northpark Walk Strip

Center and within a year opened another location in Jackson and is one of the most highly rated local Mexican restaurants. Along with its two restaurants, Green

Ghost Tacos offers catering and a food truck for special events. This complimentary mix of internet-resistant tenants provides Northpark Walk Strip Center the ability

to survive online competition.

The subject property is situated along East County Line Road, a highly trafficked four-lane retail thoroughfare which sees approximately 24,000 vehicles per day.

Northpark Walk Strip Center is an outlot to the Northpark Mall, a 1,000,000-square foot two-story enclosed mall anchored by Belk, Dillard’s and JCPenney.

Northpark Mall was purchased in 2016 by Pacific Retail Capital Partners (PRCP), one of the nation’s premier retail operators of large open-air centers and enclosed

malls with more than $1.2 billion in retail assets currently under management. The subject property is located one-mile east of Interstate-55 which has more than

104,000 vehicles per day and serves as the primary north-south connector for the state as well as a primary route for commuter traffic. Notable retailers between

Interstate-55 and Northpark Walk Strip Center include Walmart, Academy Sports, T.J. Maxx, Bed Bath & Beyond, At Home, Marshalls, Ross, Tuesday Morning, Big

Lots, Conn’s HomePlus, Pier 1 Imports, Harbor Freight Tools and Lowe’s. This densely populated retail corridor is home to more than 13,000 employees within one-

mile, 60,000 in three-miles and 130,000 in five-miles. Within three-miles are more than 54,000 residents which has increased by approximately ten percent since 2000

and nearly 100,000 residents in five-miles. Average household incomes exceed $70,000 in one-mile and more than $81,000 in five-miles. Five-miles north of

Ridgeland is the city of Madison, one of the fastest growing cities in Mississippi and named one of the “Top 10 Towns for Families in America” by Family Circle

magazine, as Mississippi’s “Most Livable City,” by Southern Living and recently named as “One of the Top 100 Cities in America” by Money magazine. Northpark

Walk Strip Center benefits from strong local demographics and being positioned directly on a densely populated retail corridor with high traffic counts and close

proximity to the interstate.

Northpark Walk Strip Center provides an incoming investor the ability to acquire a stabilized strip center occupied by internet-resistant tenants within a dominant

retail market. Strong local demographics and a prominent location within the corridor provides Northpark Walk Strip Center the ability to be an integral part of the

community and should continue to serve as a popular destination for local residents, employees and travelers alike.

INVESTMENT OVERVIEW

6

KROGER SHADOW ANCHORED STRIP CENTER

PROPERTY PHOTOS

7


PROPERTY PHOTOS

8


PROPERTY PHOTOS

9


PROPERTY PHOTOS

10


DO

GSP

OT

ONLY

ONLY

SITE PLAN

11

*Site plan is a representation of the property with the number of units, parking spots and relative size of both. It does not show the absolute exact size of the units relative to the other spaces or the exact number of parking spots.

Tenant SF

Green Ghost Tacos

1,430 SF

Dog Spot Pet Grooming

1,105 SF

WORKOUT ANYTIME

6,565 SF

Pylon Sign

Dumpster

Key:


LOCAL AERIAL

COUNTY LINE PLAZA

12

REGIONAL AERIAL

13


14

FINANCIAL

ANALYSIS


#

EXECUTIVE SUMMARY

OFFERING SUMMARY

15

THE OFFERING

Property Northpark Walk Strip Center

Property Address 1290 East County Line Road, Ridgeland, MS

SITE DESCRIPTION

Built 2006

Gross Leasable Area 9,100 SF

Current Occupancy 100.00%

Lot Size +/- 1.04 Acre(s)

Ownership Fee Simple

MAJOR TENANTS

TENANT GLA LEASE EXPIRATION LEASE TYPE

WORKOUT ANYTIME 6,565 06/30/2025 NNN

MAJOR EMPLOYERS

EMPLOYER# OF

EMPLOYEES

State of Mississippi 31,556

University of Miss. Medical Center 8,000

United States Government 5,500

Jackson Public Schools 4,814

Nissan 3,673

Rankin County School District 3,039

Baptist Health Systems 2,875

Wal-Mart Stores 2,725

St. Dominic 2,600

Mississippi State Hospital 2,500

City of Jackson 2,323

DEMOGRAPHICS

3-Miles 5-Miles 7-Miles

2016 Estimate Pop 9,586 54,190 98,473

2010 Census Pop 9,495 53,326 96,479

2016 Estimate HH 4,387 23,627 41,283

Average HH Income $70,551 $73,866 $81,491


FINANCIAL ANALYSIS

16

TENANT SUMMARY

Tenant Name Square

Feet

%

Bldg

Share

Lease DatesAnnual

Rent per

Sq. Ft.

Total Rent

Per Month

Total Rent

Per Year

Changes

on

Changes

To

Lease

Type

Renewal

OptionsComm. Exp.

Green Ghost Tacos 1,430 15.71% 6/26/2015 6/30/2020 $14.57 $1,736 $20,835 07/01/2018 $22,265 NNN 1 x 3 Yrs

Dog Spot Pet Grooming 1,105 12.14% 4/24/2009 4/30/2021 $15.25 $1,404 $16,851 None None NNN None

WORKOUT ANYTIME 6,565 72.14% 6/11/2015 6/30/2025 $11.54 $6,313 $75,760 07/01/2020 $80,648 NNN 2 x 5 Yrs

Total Occupied 9,100 100.00%

Total Vacant 0.00 0.00%

Total 9,100 100.00% $9,454 $113,446


Option Rent

TENANT SUMMARY

#

WORKOUT ANYTIME

Starting in the early 1970’s, WORKOUT ANYTIME founders John Quattrocchi

(John Q) and Steve Strickland worked with some of the biggest names in the

industry, including Bally and American Fitness. Together, they developed the

Workout Anytime Franchise concept starting from humble beginnings in

Douglasville, Georgia, in suburban Atlanta. True to their pioneering spirit, they

soon found themselves leading the wave of the fastest-growing fitness

segment by applying their winning formula of Quality, Value and Convenience.

Today, with well over 100 locations across the country and growing, and a

team of some of the most experienced health club professionals in the

industry; WORKOUT ANYTIME is proof of the founders’ firm belief that you

can offer members first class fitness facilities at the lowest cost possible and

still turn a profit.

PRICING AND VALUATION MATRIX

PROPERTY NAMEOAKLEY STATION BUILDING

PRICING AND VALUATION MATRIX

PROPERTY NAME

17

TENANT SUMMARY

General Information

Tenant Name WORKOUT ANYTIME

Lease Commencement June 11, 2015

Lease Expiration June 30, 2025

Gross Leasable Area (GLA) 6,565

Original Term Ten Years

Option Term Two, Five-Year Terms

Pro Rata Share of Project 72.14%

Headquarters Alpharetta, GA

Website www.workoutanytime.com

Lease Years Annual Rent Monthly Rent Annual Rent/SF

06/11/2015 – 06/30/2020 $75,760 $6,313 $11.54

07/01/2020 – 06/30/2025 $80,684 $6,724 $12.29

Lease Years Annual Rent Monthly Rent Annual Rent/SF

07/01/2025 – 06/30/2030 $81,406 $6,784 $12.40

07/01/2030 – 06/30/2035 $89,284 $7,440 $13,60

Base Rent

Expense Lease Summary

C.A.M.Tenant reimburses pro-rata share, 5% cap on controllable

ffexpenses

Real Estate Tax Tenant reimburses pro-rata share

Insurance Tenant reimburses pro-rata share

Management Tenant Reimburses 12% of CAM expenses for admin. fees


FINANCIAL ANALYSIS

18

PRICING DETAIL & OPERATING DATA

Operating Data Current

Scheduled Base Rental Income $113,446

Expense Reimbursement Income

CAM $20,362

Insurance $4,614

Real Estate Taxes $17,026

Management Fees $0

Total Reimbursement Income $42,002

Effective Gross Income 155,449

Less: Operating Expenses ($51,755)

Net Operating Income $103,694

Debt Service ($62,531)

Net Cash Flow After Debt Service 13.17% $41,163

Principal Reduction $20,769

Total Return 19.82% $61,932

Operating Expenses Current Per/SF

Co

mm

on

Are

a

Main

tenance

(CA

M)

Electric $2,921 $0.32

Water/Sewer $2,598 $0.29

Trash Removal $2,782 $0.31

Landscaping $5,800 $0.64

General R&M $4,453 $0.49

Service Contract $2,305 $0.25

Total CAM $20,859 $2.29

2016 Insurance Premiums $4,727 $0.52

2017 Real Estate Taxes* $17,441 $1.92

Management Fee (5% of EGI) $7,772 $0.85

Reserves $955 $0.10

Total Expenses $51,755 $5.69

PRICING & FINANCING

List Price $1,250,000

Cap Rate | Price/SF 8.30% | $137

Net Operating Income $103,694

Loan Type Proposed New

Down Payment 25% / $312,500

Loan Amount $937,500

Interest Rate / Amortization 4.50% / 25 Years

Debt Coverage Ratio 1.66

*Taxes based on 2017 value of $1,079,010


19

MARKET

OVERVIEW


MARKET OVERVIEW

OVERVIEW

JACKSON

▪ The area’s largest industry is the local, state and federal governments, which account for more than

38,000 jobs. The public education and higher-education sectors are also strong contributors to the

workforce. The largest institution of higher learning in the metro is Jackson State University.

▪ A broad base of manufacturing talent is present in the Jackson metro. Experienced workers here

have engineering, production manufacturing, computer technology and materials handling skills. The

Nissan yearly payroll is more than $400 million.

585K

2016POPULATION:

35.7

2016MEDIAN AGE:

$45,400

2016 MEDIAN HOUSEHOLD INCOME:

DEMOGRAPHICS

U.S. Median:

37.7U.S. Median:

$57,200

Growth2016-2021*:

1.6%

217K

2016HOUSEHOLDS:

2.3%

Growth2016-2021*:

ECONOMY

METRO HIGHLIGHTS

* Forecast

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

MANUFACTURING INDUSTRY

Manufacturing plays an important role in the economy. Nissan has a workforce

of more than 6,000 workers at the Nissan Canton Vehicle Assembly Plant.

STATE CAPITAL

Jackson is the capital city of Mississippi and the state’s largest urban center,

supporting a broad base of public sector employment.

AUTOMOTIVE INDUSTRY CONTRACTORS

The presence of Nissan supports the existence of other manufacturing and

automotive suppliers in the metro, such as Delphi Auto Systems.

The Jackson metro consists of Copiah, Hinds, Madison, Rankin,

Simpson and Yazoo counties. The city of Jackson is the capital city of

Mississippi and is equidistant between New Orleans and Memphis. A low

cost of living along with a skilled manufacturing workforce are driving

growth in the local auto industry. Even though the median income here

falls far below the national average, the homeownership rate of 68

percent surpasses the national level.

20


8 DEMOGRAPHICS

21

1 Mile

3 Mile

5 Mile

County Line Plaza


PROPERTY NAME

MARKETING TEAMDEMOGRAPHICS

Source: © 2016 Experian

Created on October 2017

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2021 Projection

Total Population 9,630 54,469 98,904

▪ 2016 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Current Daytime Population

2016 Estimate 13,297 60,289 129,868

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2021 Projection

Total Households 4,408 23,909 41,756

▪ 2016 Estimate


Average (Mean) Household Size 2.17 2.26 2.35

▪ 2010 Census


▪ 2000 Census


▪ Occupied Units

2021 Projection 4,408 23,909 41,756

2016 Estimate 4,731 25,479 44,665

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2016 Estimate

$150,000 or More 5.90% 7.10% 8.36%

$100,000 - $149,000 10.56% 11.21% 12.96%

$75,000 - $99,999 13.98% 12.09% 12.43%

$50,000 - $74,999 17.73% 16.40% 16.14%

$35,000 - $49,999 17.87% 14.77% 13.41%

Under $35,000 32.71% 36.66% 34.32%

Average Household Income $70,551 $73,866 $81,491

Median Household Income $49,367 $48,320 $52,861

Per Capita Income $32,363 $32,356 $34,301

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles

Total Average Household Retail Expenditure

$52,771 $51,628 $54,140

▪ Consumer Expenditure Top 10 Categories

Housing $14,745 $14,608 $15,107

Transportation $9,793 $9,515 $9,933

Shelter $8,270 $8,239 $8,465

Food $5,455 $5,432 $5,680

Personal Insurance and Pensions $4,318 $4,269 $4,579

Utilities $3,848 $3,824 $3,930

Health Care $3,616 $3,397 $3,668

Entertainment $2,169 $2,137 $2,283

Cash Contributions $1,675 $1,587 $1,693

Apparel $1,376 $1,435 $1,484

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2016 Estimate Total Population 9,586 54,190 98,473

Under 20 23.52% 25.90% 25.83%

20 to 34 Years 26.32% 27.36% 23.69%

35 to 39 Years 7.02% 7.06% 6.71%

40 to 49 Years 11.26% 11.33% 11.87%

50 to 64 Years 16.51% 16.57% 18.82%

Age 65+ 15.37% 11.76% 13.08%

Median Age 35.10 33.13 35.33

▪ Population 25+ by Education Level

2016 Estimate Population Age 25+ 6,638 35,795 66,163

Elementary (0-8) 1.02% 1.09% 1.34%

Some High School (9-11) 4.33% 4.67% 5.14%

High School Graduate (12) 15.25% 15.59% 15.92%

Some College (13-15) 25.50% 24.25% 22.82%

Associate Degree Only 7.77% 7.72% 7.26%

Bachelors Degree Only 28.36% 27.32% 27.01%

Graduate Degree 17.07% 18.75% 19.99%

22


Income

In 2016, the median household income for your selected geography is

$52,861, compare this to the US average which is currently $54,505.

The median household income for your area has changed by 17.78%

since 2000. It is estimated that the median household income in your

area will be $61,708 five years from now, which represents a change

of 16.74% from the current year.

The current year per capita income in your area is $34,301, compare

this to the US average, which is $29,962. The current year average

household income in your area is $81,491, compare this to the US

average which is $78,425.

Population

In 2016, the population in your selected geography is 98,473. The

population has changed by 7.75% since 2000. It is estimated that the

population in your area will be 98,904 five years from now, which

represents a change of 0.44% from the current year. The current

population is 46.44% male and 53.56% female. The median age of

the population in your area is 35.33, compare this to the US average

which is 37.68. The population density in your area is 1,254 people

per square mile.

Households

There are currently 41,283 households in your selected geography.

The number of households has changed by 10.23% since 2000. It is

estimated that the number of households in your area will be 41,756

five years from now, which represents a change of 1.15% from the

current year. The average household size in your area is 2.35 persons.

Employment

In 2016, there are 129,868 employees in your selected area, this is

also known as the daytime population. The 2000 Census revealed

that 76.31% of employees are employed in white-collar occupations

in this geography, and 23.59% are employed in blue-collar

occupations. In 2016, unemployment in this area is 4.64%. In 2000,

the average time traveled to work was 21.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

47.20% White, 48.05% Black, 0.03% Native American and 1.98%

Asian/Pacific Islander. Compare these to US averages which are:

70.77% White, 12.80% Black, 0.19% Native American and 5.36%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 3.03% of the current year

population in your selected area. Compare this to the US average of

17.65%.

PROPERTY NAME

MARKETING TEAM

Housing

The median housing value in your area was $159,508 in 2016,

compare this to the US average of $187,181. In 2000, there were

23,425 owner occupied housing units in your area and there were

14,026 renter occupied housing units in your area. The median rent at

the time was $537.

Source: © 2016 Experian

DEMOGRAPHICS

23


www.MarcusMillichap.com

Ryan Roedersheimer

Associate

Associate Director - National Retail Group

Cincinnati Office

Tel: (513) 878-7700

Fax: (513) 878-7710

[email protected]


Joel Dumes

Senior Vice President Investments


Cincinnati Office

Tel: (513) 878-7720

Fax: (513) 878-7710

[email protected]

Licenses: OH SAL.2003013045, KY 63818

Stan Falk

First Vice President Investments


Cincinnati Office

Tel: (513) 878-7721

Fax: (513) 878-7710

[email protected]


P R E S E N T E D B Y

24

BOR: Anne Williams

Documents

NORTHPARK WALK STRIP CENTER - LoopNet · Green Ghost Tacos 1,430 15.71% 6/26/2015 6/30/2020 $14.57 $1,736 $20,835 07/01/2018 $22,265 NNN 1 x 3 Yrs Dog Spot Pet Grooming 1,105 12.14%