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STEVENSON PLAZASTEVENSON PLAZA42950 US Highway 72 • Stevenson, Alabama 3577242950 US Highway 72 • Stevenson, Alabama 35772
Offering Memorandum
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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
Confidentiality and DisclaimerThe 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 is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & 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.
STEVENSON PLAZAStevenson, ALACT ID Z0480203
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TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01 Offering Summary Location Overview Regional Map
Local Map
FINANCIAL ANALYSIS 02 Tenant Summary
Operating Statement
Notes
Pricing Detail
Acquisition Financing
MARKET OVERVIEW 03 Market Analysis
Demographic Analysis
STEVENSON PLAZA
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STEVENSON PLAZA
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INVESTMENT
OVERVIEW
STEVENSON PLAZA
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EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
T V A-Wdows Creek Fossil Plant 550
Westrock CP LLC 500
Rock Tenn 157
North Jackson High School 57
Cumberland Health and Rehab 50
Lambert Inc 50
Stevenson Elementary School 44
McDonalds 42
Keller Lumber and Logging Contrs 40
Stevenson Middle School 40
Naec 39
City of Stevenson 31
DEMOGRAPHICS
3-Miles 5-Miles 7-Miles
2018 Estimate Pop 3,259 4,736 6,876
2010 Census Pop 3,266 4,760 6,915
2018 Estimate HH 1,315 1,882 2,753
2010 Census HH 1,330 1,907 2,789
Median HH Income $39,329 $40,771 $41,133
Per Capita Income $19,400 $19,699 $19,999
Average HH Income $47,523 $49,112 $49,639
VITAL DATA
T-10 2019 YEAR 1
Price $1,300,000 CAP Rate 8.04% 7.89%
Down Payment 25.75% / $334,750 Net Operating Income $104,565 $102,543
Loan Amount $975,000 Net Cash Flow After Debt Service 10.80% / $36,168 10.20% / $34,146
Loan Type Proposed New Total Return 16.81% / $56,272 16.51% / $55,278
Interest Rate / Amortization 5% / 25 Years
Gross Leasable Area (GLA) 36,860 SF
Price/SF $35.27
Current Occupancy 93.49%
Year Built / Renovated 1978 / 2017
Lot Size 3.88 acre(s)
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MAJOR TENANTS
TENANT GLA LEASE EXPIRATION LEASE TYPE
Bruce's Foodland 23,860 5/1/2024 Gross
STEVENSON PLAZA
OFFERING SUMMARY
§ Only Grocer in an Eight-Mile Radius
§ 65 Percent of Center Occupied by Bruce's Foodland Grocery
§ Located on Main Thoroughfare Through Stevenson, Alabama
§ High Traffic Count on US 72; 13,000 VPD
§ Recent Renovations and New Lease for Bruce's Foodland
§ 35 Miles From Chattanooga; 60 Miles to Huntsville
INVESTMENT HIGHLIGHTS
The Stevenson Plaza is a 36,600-square-foot strip shopping center in Stevenson, Alabama. The subject property is situated on four acres and is grocery anchored by a regional supermarket which has nearly 24,000 square feet of space and a five-year option to renew in May of 2024. The grocer, Bruce’s Foodland, has done extensive renovations to their space at their expense in the last five years. Other tenants include an auto parts store, a small loan company and seven 800-square-foot units around the building occupied by small retailers. US Highway 72 in Stevenson, where the center is located, has an average daily traffic count of over 13,000 vehicles per day. The Stevenson Plaza is positioned a short 35 miles from Chattanooga, Tennessee and less than 60 miles from Huntsville, Alabama.
Stevenson Plaza is a great investment opportunity with great occupancy history. In 2017, there were over $50,000 in renovations done to the center with upgrades such as a new façade, re-sealed parking lot and a new roof coating with a 20-year warranty. There is also a value-add opportunity in this center by leasing up the remainder of the vacant space.
INVESTMENT OVERVIEW
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STEVENSON PLAZA
PROPERTY SUMMARY
OFFERING SUMMARY
PROPOSED FINANCING
First Trust Deed
Loan Amount $975,000
Loan Type Proposed New
Interest Rate 5%
Amortization 25 Years
Loan Term 5 Years
Loan to Value 75%
Debt Coverage Ratio 1.53
THE OFFERING
Property Stevenson Plaza
Price $1,300,000
Property Address 42950 US Highway 72, Stevenson, AL
SITE DESCRIPTION
Year Built/Renovated 1978
Gross Leasable Area 36,860 SF
Ownership Fee Simple
Lot Size 3.88 acre(s)
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LOCATION OVERVIEW
CLOSE PROXIMITY TO:
42950 US Highway 72, Stevenson, AL 35772
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMESTEVENSON PLAZA
PRICING AND VALUATION MATRIX
PROPERTY NAME
STEVENSON PLAZA
LOCATION OVERVIEW
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REGIONAL MAP
STEVENSON PLAZA
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LOCAL MAP
STEVENSON PLAZA
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12
STEVENSON PLAZA
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PROPERTY PHOTO
STEVENSON PLAZA
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FINANCIAL
ANALYSIS
FINANCIAL ANALYSIS
STEVENSON PLAZA
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TENANT SUMMARY
FINANCIAL ANALYSIS
STEVENSON PLAZA
OPERATING STATEMENT
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FINANCIAL ANALYSIS
STEVENSON PLAZA
NOTES
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FINANCIAL ANALYSIS
STEVENSON PLAZA
PRICING DETAIL
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TENANT PROFILE
STEVENSON PLAZA
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Bruce's Foodland
General Information
Tenant Name Bruce's Foodland
Website BrucesFoodland.com
Headquartered Scottsboro, AL
Rentable Square Feet 23,860 SF
Lease Expiration 5/1/2024
No. of Locations 9
Bruce's Foodland is a grocery store chain local to North Alabama,
founded in 1979. Family owned and operated by The Bruce family,
year after year Bruce's Foodland’s nine stores hold strong in their
local communities.
Parts City Auto Parts
General Information
Tenant Name Parts City Auto Parts
Website PartsCityAuto.com
Rentable Square Feet 5,000 SF
Percentage of RBA 13.60%
Lease Expiration 8/31/2020
Parts City is a chain of independently owned and operated auto
parts stores serviced by O’Reilly Auto Parts. As Parts City affiliates,
customers have immediate access to the same pricing, product
selection, and industry-leading business strategies that have made
O’Reilly Auto Parts one of the fastest growing, most successful
automotive parts retailers in the United States.
MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.
We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.
Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues to the benefit of our clients.
National platform operating
within the firm’s brokerage offices
$6.24 billion total national
volume in 2018
Access to more capital sources than any other firm in the industry
Optimum financing solutions to enhance value
Our ability to enhance buyer pool by expanding finance options
Our ability to enhance seller control
• Through buyer qualification support
• Our ability to manage buyers finance expectations
• Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings
• By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file
WHY MMCC?
Closed 1,678 debt and equity
financings in 2018
ACQUISITION FINANCING
STEVENSON PLAZA
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STEVENSON PLAZA
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MARKET
OVERVIEW
MARKET OVERVIEW
OVERVIEWHUNTSVILLE
Huntsville is located 100 miles north of Birmingham and 110 miles south
of Nashville. The metro is known for its notable aerospace and defense
industries. Employment in related sectors offers higher-paying salaries,
benefiting the area as the cost of living remains below that of many other
markets. More affordable costs here allow roughly 70 percent of
households to afford to own their home. The Huntsville metro
encompasses the counties of Limestone and Madison.
§ Government contractors such as Boeing, Northrop Grumman and Lockheed Martin are leading employers, supporting the area’s space and defense industry.
§ Huntsville has a growing science, technology, engineering and mathematics (STEM) workforce. The median pay for STEM occupations in the area is $95,000 annually through employers including the Hudson Alpha Institute for Biotechnology and the Redstone Arsenal.
§ The area is being reinvented as a tech center and many buildings are being redeveloped to attract new companies and workers to the metro.
DEMOGRAPHICS
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ECONOMY
METRO HIGHLIGHTS
* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
STEVENSON PLAZA
U.S. ARMY – REDSTONE ARSENALMore than 35,000 individuals are employed at this garrison to support the Army’s missile programs.
NASAMarshall Space Flight Center was where the most powerful rocket ever designed was developed, enabling the exploration far into the solar system. It has a workforce of nearly 6,000.
HIGHER EDUCATIONThe University of Alabama Huntsville has nearly 10,000 students, with roughly half earning a degree in engineering or science.
459K2018
POPULATION:
183K2018
HOUSEHOLDS:
38.82018
MEDIAN AGE:
$60,4002018 MEDIAN
HOUSEHOLD INCOME:
U.S. Median:
38.0U.S. Median:
$58,8008.0%
Growth2018-2023*:
7.2%
Growth2018-2023*:
PROPERTY NAME
MARKETING TEAM
STEVENSON PLAZA
DEMOGRAPHICS
Source: © 2018 Experian
Created on November 2019
POPULATION 3 Miles 5 Miles 7 Miles§ 2023 Projection
Total Population 3,176 4,664 6,805
§ 2018 Estimate
Total Population 3,259 4,736 6,876
§ 2010 Census
Total Population 3,266 4,760 6,915
§ 2000 Census
Total Population 3,414 4,914 7,139
§ Current Daytime Population
2018 Estimate 2,759 3,830 5,328
HOUSEHOLDS 3 Miles 5 Miles 7 Miles§ 2023 Projection
Total Households 1,291 1,864 2,741
§ 2018 Estimate
Total Households 1,315 1,882 2,753
Average (Mean) Household Size 2.45 2.49 2.49
§ 2010 Census
Total Households 1,330 1,907 2,789
§ 2000 Census
Total Households 1,385 1,957 2,838
§ Occupied Units
2023 Projection 1,291 1,864 2,741
2018 Estimate 1,539 2,207 3,222
HOUSEHOLDS BY INCOME 3 Miles 5 Miles 7 Miles§ 2018 Estimate
$150,000 or More 3.16% 3.09% 2.87%
$100,000 - $149,000 4.01% 4.69% 5.28%
$75,000 - $99,999 10.68% 11.64% 11.91%
$50,000 - $74,999 20.80% 20.76% 20.14%
$35,000 - $49,999 15.79% 16.30% 16.78%
Under $35,000 45.57% 43.52% 43.00%
Average Household Income $47,523 $49,112 $49,639
Median Household Income $39,329 $40,771 $41,133
Per Capita Income $19,400 $19,699 $19,999
HOUSEHOLDS BY EXPENDITURE 3 Miles 5 Miles 7 MilesTotal Average Household Retail Expenditure $57,994 $59,423 $59,803
§ Consumer Expenditure Top 10 Categories
Housing $13,935 $14,305 $14,423
Transportation $11,289 $11,634 $11,744
Shelter $7,125 $7,322 $7,379
Food $5,619 $5,742 $5,785
Personal Insurance and Pensions $4,800 $5,056 $5,122
Health Care $4,549 $4,676 $4,713
Utilities $3,828 $3,900 $3,915
Entertainment $2,324 $2,398 $2,424
Cash Contributions $1,971 $2,044 $2,069
Apparel $1,317 $1,326 $1,317
POPULATION PROFILE 3 Miles 5 Miles 7 Miles§ Population By Age
2018 Estimate Total Population 3,259 4,736 6,876
Under 20 23.68% 23.82% 23.82%
20 to 34 Years 18.01% 17.79% 17.52%
35 to 39 Years 5.50% 5.66% 5.73%
40 to 49 Years 12.50% 12.77% 12.87%
50 to 64 Years 20.82% 20.89% 21.26%
Age 65+ 19.50% 19.08% 18.78%
Median Age 42.23 42.14 42.30
§ Population 25+ by Education Level
2018 Estimate Population Age 25+ 2,308 3,345 4,853
Elementary (0-8) 6.27% 6.79% 7.25%
Some High School (9-11) 15.28% 16.01% 16.02%
High School Graduate (12) 42.09% 42.09% 41.86%
Some College (13-15) 17.42% 17.04% 17.09%
Associate Degree Only 10.85% 9.67% 8.95%
Bachelors Degree Only 4.69% 5.00% 5.07%
Graduate Degree 1.38% 1.73% 2.38%
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STEVENSON PLAZA
DEMOGRAPHICS
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www.MarcusMillichap.com
Alan Treadway, Jr.
Associate
Director, National Retail GroupNashville OfficeTel: (615) 997-2856
Fax: (615) 997-2910
License: TN 00226652
Eddie Greenhalgh
Broker of Record
Birmingham OfficeTel: (205) 510-9111Fax: (205) 510-9110
License: AL 00008-8298
P R E S E N T E D B Y
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