OFFERING MEMORANDUM Capital Markets | Net Lease Properties · 2019-10-01 · Founded in 1803 by the Wood family and incorporated in 1865, Wawa, Inc. (the “Company” or “Wawa”)

5011 E. BUSCH BOULEVARD, TAMPA, FLORIDA 33617

Capital Markets | Net Lease Properties

ACTUAL PROPERTY

OFFERING MEMORANDUM

MARK DRAZEKSenior Vice President Capital Markets | Net Lease Properties

+1 407 496 [email protected]

RAY ROMANOFirst Vice President Capital Markets | Net Lease Properties


PREPARED BY:

CBRE, Inc. | Licensed Real Estate Broker | © 2018 CBRE, Inc. All Rights Reserved

1INVESTMENT

SUMMARYSITE PLAN

2AERIALS

3AERA OVERVIEW

7DEMOGRAPHICS

& MAPS

8TENANT

OVERVIEW

10

1

BUSCH GARDENS LOCATION | TAMPA, FL

investment highlights• Brand new 20 year ground lease

• Investment grade credit – Fitch rating: BBB

• Fixed rental increases throughout entire term

• Absolute NNN - No landlord management obligations

• Located in a densely populated area of Tampa

• Less than 1 mile from Busch Gardens attracting more than 4 million visitors per year

• Large efficient parcel

• Excellent access and exposure on heavily trafficked East/West thoroughfare (45,000 AADT)

• No debt to assume

• Florida has NO STATE INCOME TAX

CBRE is pleased to present this brand new 20-year Wawa ground lease located less than 1 mile from Busch Gardens in Tampa, FL which brings in 4.1 million visitors annually. The large parcel (2.55 acres) offers excellent access and exposure

to over 45,000 vehicles per day. This is a brand new 20 year ground lease with fixed rental increases throughout the entire term and no landlord management obligations. Tampa Bay is one of the fastest growing areas in the nation per U.S. Census Data. More than 51,000 people moved into the Tampa-St. Petersburg Clearwater area last year, earning it the ninth spot on the Census’ Top 10 Metropolitan Areas in Numeric Growth: 2017-2018 list. Tampa also added the second highest number of jobs among all Florida metro areas in 2018.

investment summaryPRICE: $5,204,000

ANNUAL RENT: $242,000

CAP RATE: 4.65%

TENANT: Wawa, Inc.

RENTAL INCREASES: 7% every 5 years starting in year 11 and including options

LEASE TERM: 20 Years

OPTIONS: (6) 5-year options

RENT COMMENCEMENT: August 29, 2019

LANDLORD OBLIGATIONS: None - Absolute NNN Ground Lease

EXISTING FINANCING: No debt to assume

BUILDING SIZE: 6,119± SF

LAND SIZE: 2.55± acres

PARKING SPACES: 55 spaces (8.99 spaces per 1,000 SF)

YEAR BUILT: 2019

CLICK FRAME TO SEE PROPERTY VIDEO

INVESTMENT SUMMARY

https://cbre.qumucloud.com/view/iWASgKatfTv

2


SITE PLAN

BUSCH BLVD (45,000 AADT)50

TH S

T

DEL

REY

CT

6,119± SF

3


VIEW EAST

E Bu

sch

Blvd

(45,

000

AA

DT)

THE PARK AT CHESTERFIELD APARTMENTS

RIVERWALK SHOPPING CENTER

TEMPLE TERRACE

BUSCH COMMERCIAL PLAZA

WHITTIER CENTER

N. 56th Street

N. 50th Street

4


VIEW SOUTHWEST

Downtown Tampa

E Busch Blvd (45,000 AADT)

N. 50th StreetBUSCH COMMERCIAL

PLAZA

Terrace Collection Shopping Center

5


VIEW WEST

N. 50th Street

Terrace Collection Shopping Center


Jack’s Square Shopping Center

Busch Plaza

4.1 M Visitors Annually

6


VIEW SOUTH


Downtown Tampa

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TAMPA - ECONOMYAffordability and quality workforce to sustain economic growth in Tampa

Tampa is among the most affordable places to do business within the U.S. According to KPMG, among larger markets, Tampa ranked as the sixth most cost-effective business friendly location in the U.S. and is also one of the fastest growing. Amazingly, the market is able to sustain both high levels of growth and affordability. With a population exceeding 2.8 million, the area is emerging as an attractive market for users and investors alike.

Nearly one in four of Florida’s business and information services firms, ranging from information technology to law firms, engineering, and other consulting firms call Tampa home. The market’s business foundation is also extremely diverse, with very strong presences in the financial services sector, the defense and security industry, life sciences and the logistics and distribution business. Port Tampa Bay plays a critical role in the establishment of the market as a logistics and distribution business. Port Tampa Bay plays a critical role in the establishment of the market as a logistics hub, providing a diverse cargo, which include, liquid, dry and break-n bulk cargos, inter-modal containers and most recently, automobiles.

Tampa benefits from a workforce which is talented and diverse enough to fit any company’s needs. Additionally, there has been a significant increase in professional services jobs, due in part to the area’s comparatively low office and industrial rents, as well as the market’s increasing ability to attract and retain residents with graduate or professional degrees.

One hurdle the region faces when compared to other competitive markets is the establishment of modern mass transit. Many companies considering relocation to the area have been faced with the realization that the region presently does not have the same level of mass transit already established in many other major and mid-tier metro areas.

Economically speaking, Tampa exemplifies many of the characteristics of the most dynamic Southeast U.S. markets: affordability, rapid growth and a quality supply of labor. As a result, the long-term economic trajectory for Tampa is on very solid footing.

TAMPA - RETAILDemographic growth and tourism strengthening Tampa retail fundamentals

While Tampa’s economy is primarily driven by the professional and business services, financial services and insurance industries, the area also relies heavily on the tourism industry. Containing some of the most beautiful beaches on Florida’s west coast, several exclusive golf destinations, many nationally ranked high-end restaurants, in addition to, the spillover activity from the attractions of nearby Orlando, Tampa’s retail market continues to blossom. With four consecutive years of positive growth, there has beena boom in tourism.

Wil retailers actively expanding and entering the market, fundamentals in Tampa’s over 147 million sq. ft. retail market have been steadily improving. Overall demand for space has remained strong and with the limited supply of existing availabilities, coupled with continued positive absorption, has suppressed vacancy in the market.

Along with many othe markets, Tampa has also experienced the trend of an increase in brick and mortar retail sotre clsoures. While this will likely add vacancy to the market; elevated demand levels, strong populaiton growth, modest development and the thriving houseing market in the area should keep vacancy from rising considerably. These market dynamics have not gone unnoticed by investors, who have been extremely active, acquiring mostly grocery-anchored centers and stable net leased properties.

Tampa continues to record some of the highest population and job growth in the nation, particularly in the high-wage, high-skill fields. This influx of residents and jobs, coupled with a strong tourism sector, leads to an expectation that the market will continue to encounter strong retail demand in the near term. While domestic growth is projected to slow and tourism is likely to coo l in the medium ter, the Tampa market is expected to remain relatively insulated from this eventual slow-down due to the area’s exceptional population, business and household growth rates. Give the market’s current strong fundamentals and annualized rental rate gains, Tampa should be able to keep retail demand progressing effectively in a positive direction.

AREA OVERVIEW

8


DEMOGRAPHICS

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

Households 2010 (Census) 7,767 39,173 92,943

Households 2019 (Estimate) 8,103 41,936 100,865

Households 2024 (Projected) 8,379 43,913 106,339

Historical Annual Growth

2010-2019 0.46% 0.74% 0.89%

Projected Annual Growth

2019-2024 0.67% 0.93% 1.06%

HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

2019 Average $44,625 $50,562 $51,468

2019 Median $32,277 $36,378 $35,954

2019 AGE REPORT 1 MILE 3 MILE 5 MILE

Median Age 34.10 31.40 32.70

POPULATION 1 MILE 3 MILE 5 MILE

Population 2010 (Census) 18,298 102,887 238,250

Population 2019 (Estimated) 19,296 111,167 261,138

Population 2024 (Projected) 20,045 116,706 276,162

Historical Annual Growth

2010-2019 0.58% 0.84% 1.00%

Projected Annual Growth

2019-2024 0.76% 0.98% 1.13%

2019 POPULATION BY RACE 1 MILE 3 MILE 5 MILE

White 8,000 50,404 126,418

Black 8,705 46,163 98,199

Asian 534 4,082 9,380

American Indian & Alaskan Native 120 453 1,216

Pacific Islander 21 122 220

Other Race 1,147 5,551 15,220

Two or More Races 768 4,392 10,484

Hispanic & Non-Hispanic

Hispanic 4,810 25,056 68,083

White Non-Hispanic 5,087 34,993 83,579

1-3-5 Mile Radius

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LOCATION MAPS

state map

area map

local map

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Founded in 1803 by the Wood family and incorporated in 1865, Wawa, Inc. (the “Company” or “Wawa”) has roots in the manufacturing and textile businesses. The first Wawa Food Market opened on April 16, 1964. Today, the Company operates approximately 750 convenience stores, approximately 270 of which include a fuel offering, in Pennsylvania, New Jersey, Delaware, Maryland and Virginia. Wawa is a privately held company, with a majority of the Company stock still owned by the Wood family. Company associates who participate in the Employee Stock Ownership Plan have a nearly 30% ownership stake.

Wawa offers a large fresh foodservice selection, including freshly brewed coffee, a wide selection of delicatessen and dairy products, fresh produce, hot foods, built-to-order sandwiches and Wawa brands such as juices, teas, water and bakery products. The Company’s revenue principally consists of fuel and merchandise sales. The Company operates a dairy manufacturing facility, producing Wawa branded beverages and dairy products for distribution to, and sale in, its stores and to wholesale customers. The Company has a committed fuel storage terminal for the purpose of both storing fuel for distribution to, and sale in, its stores and for holding and selling fuel in wholesale markets.

Wawa has differentiated itself from its competitors by focusing on several key strategic areas:• Delivering fast and friendly customer service in a safe and clean shopping environment;• Promoting and developing Wawa-branded food, beverage and fresh food items;• Maintaining world-class facilities by systematically opening new stores, closing

marginal stores and remodeling older stores; and• Maximizing operating efficiency by making significant investments in operations

programs and technology.

Wawa exceeds industry norms in virtually every measurable category (Source: NACS State of the Industry Report of 2009 Data – most recent industry data available)• Wawa merchandise sales per store averaged $4.9 million for the year ended 2009

versus an industry average of $1.5 million for 2009• Gasoline sales totaled 1.4 billion gallons for the year 2009, an average of 101,000 gallons

per fuel store week or just under four times the industry average of approximately 28,000 gallons per fuel store week in 2009

• Incorporated in 1865• Listed as #34 in Forbes Ranking of America’s Largest

Private Companies• Fitch Rated: BBB• 750 locations in the United States – All Company Owned

and Operated• Exceeds industry norms in virtually every measurable

category

WAWA, INC.www.wawa.com

ACTUAL PROPERTY

TENANT DESCRIPTION

http://www.wawa.com

11


AFFILIATED BUSINESS DISCLOSURECBRE, Inc. operates within a global family of companies with many subsidiaries and 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, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENTYour receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMERThis Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of

the Property. The information contained in this Memorandumhas been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves 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 at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

© 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. Any projections, opinions, or estimates are subject to uncertainty. The information may not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

DISCLOSURES

MARK DRAZEKSenior Vice President Capital Markets | Net Lease Properties


CBRE, Inc. | Licensed Real Estate Broker

RAY ROMANOFirst Vice President Capital Markets | Net Lease Properties


PREPARED BY

ACTUAL PROPERTY PHOTO

CBRE, Inc. | Licensed Real Estate Broker | © 2019 CBRE, Inc. All Rights Reserved

Documents

OFFERING MEMORANDUM Capital Markets | Net Lease Properties · 2019-10-01 · Founded in 1803 by the Wood family and incorporated in 1865, Wawa, Inc. (the “Company” or “Wawa”)