Offering Memorandum THE VILLAGES PLAZA

THE VILLAGES PLAZA
Largest Retirement Community in
the US With Over 157,000 Residents
Click Here to View Drone Video of Property and Surrounding Area
NON-ENDORSEMENT NOTICE
The 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 hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.
As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.
Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.
Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success.Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
Marcus & 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.
NET LEASED DISCLAIMER
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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 of Florida © 2017. All rights reserved.
SUBJECT PROPERTY
FINANCIAL OVERVIEW
Overview
915 North Street, Lady Lake, Florida 32159 Price: $5,137,000 Cap Rate: 6.50% Rentable Square Feet: 8,500 Net Operating Income: $333,890 Price/Square Foot: $604.35 Land Area: 1.26 Acres Year Built: 2016
Tenant Square Feet
Totals 8,500 100% $333,890
*Kay has the right to terminate the lease (subject to a termination fee of $70,000) after the fifth lease year if Kay’s gross sales during the fifth lease year total less than $1,100,000. Kay stores have average sales of approximately $1,401 per sf which would equate to sales of nearly $3.2 million.
National Brand Tenants • Including Mattress One, Sleep Number and Kay Jewelers New, 10-Year Leases • All three tenants have long-term leases with 10 percent rental
increases every five years. Premier Location • Directly across the street from The Villages, the largest single-
site residential real estate development in the United States. Strong Demographics • Located in one of the highest demographic pockets in The
Villages, the site boasts 79,000 people in a five-mile radius with average household incomes of more than $66,000.
LOCATION HIGHLIGHTS
Location Highlights • Directly Across the Street From The Villages, the Largest
Retirement Community in the United States Spanning over 27,000 Acres
• As of April 2016, the Total Population of The Villages Reached 157,000 Residents
• Average Household Income is Almost Double the National Average
• Located off US Highway 441 With a Daily Traffic Count of Approximately 28,000 Vehicles
• Surrounding National Retailers Include Home Depot, Lowe’s, Sam’s Club, Walmart Supercenter, Bed Bath & Beyond, Publix, Office Depot, Staples, Walgreens, CVS, Dollar Tree, Best Buy, Outback Steakhouse, Panera Bread, Chick-fil-A, Texas Roadhouse, Pizza Hut and Many More
• Within Close Proximity to the Florida Turnpike and Interstate 75 for Direct Access to Orlando and Tampa
• Approximately 50 Miles North of Walt Disney World, Orlando International Airport, Universal Studios and Sea World
The Villages, Florida
Lady Lake, Florida is located in Lake County, about an hour north of Orlando, and is part of the Orlando–Kissimmee–Sanford Metropolitan Statistical Area (MSA). The Town of Lady Lake has a fast-growing economic business area with plenty residential housing. The town’s current beautification program is rapidly attracting new residents and businesses, and continues to flourish. The plans focus on continued good looking, responsible development with shopping, restaurants and new housing.
LOCATION OVERVIEW
Lady Lake is directly across the street from The Villages, the largest single-site residential real estate development in the United States spanning over 27,000 acres in three adjoining counties in Central Florida. The Villages is an active retirement community located in sunny central Florida, an hour north of Orlando near Interstate 75 and the Florida Turnpike. It is close to Florida’s famous tourist attractions and Orlando International Airport. The rapid growth of areas like this has helped Florida become the nation’s third most populous state. The Villages has more than doubled in size since 2010. The Villages grew by 5.4 percent between July 2013 and July 2014. As of April 2016, the total population of The Villages reached 157,000 people. There are 33 executive golf courses and 11 Country Club courses in The Villages.
Lady Lake, Florida
The Villages, Florida
157,000 residents
and counting
than doubled since 2010
SUMTER COUNTY, Fla. – It’s 11 a.m. Wednesday and the room is filled with people, mostly in their 60s and 70s, milling around and stretching in their karate uniforms. All falls silent when Sensei Lee Aiello and Don Kennedy, both 75, greet the class. The group begins to flow through karate sequences, and the only sounds are those of limbs slicing through the air and “Hi-ya.”
“Some of you are going soft on me!” yells Kennedy, who has been teaching karate for nearly 50 years. His hair is almost as white as his robe, but his moves are agile and sharp.
Joseph Fenster, the oldest member of the “Karate for Life Club,” 85-year- old Holocaust survivor and a black belt, keeps pace with his peers as he switches from stretches to plank positions and then advanced martial arts moves. He’s the jokester of the class, but his eyes focus behind his glasses when the class is in session.
About a mile away, a dozen women, ranging from their 50s to mid-80s, rehearse their belly dancing routine for an upcoming performance. They shimmy and shake their hips, adorned with bright beaded skirts, and flash bright smiles for their invisible audience.
The “Karate for Life Club” and the “Original Villages Belly Dancers” are just two of 2,500 social clubs offered in The Villages, the largest retirement community for ages 55 and up in the nation. At any given time, multiple groups are gathered throughout the community’s more than 50 recreation centers participating in anything from arts and crafts to zumba and pickleball.
The Villages, located in Sumter County, Florida – about an hour Northwest of Orlando – has been likened to an “adult Disney World.”
The community, geographically larger than Manhattan, features more than 40 golf courses, a polo arena and special events throughout the year. Most of the more than 123,000 residents travel via golf cart, some of which have been upgraded enough to cost more than most cars. Walking down the street, one might see a cart modeled after a fire engine driving past, or a Barbie-pink cart sitting outside a grocery store.
For four years in a row, The Villages has been deemed the fastest- growing metro area in the U.S., with a 4.3 percent population increase between 2015 and 2016, according to the U.S. Census Bureau. It shows no sign of slowing down as the community looks to build thousands of new homes with newly acquired land.
At night, villagers crowd into the community’s three town squares – one of which has a likeness to Disney Springs – where they dance in synchronization around a stage to songs like Katy Perry’s “California Girls” and “Electric Slide.” Happy hour starts at 11 a.m., and all but a few restaurants and bars shut down by 9 p.m.
When every day feels like the weekend, it’s hard to tell one day from the next, says 82-year-old Richard Schluckbier, who moved to The Villages with his wife about seven years ago.
“I only know it’s Sunday because I wear long pants and I sing in the choir,” he laughs. With endless opportunities to remain active, many of the residents repeat one of The Villages’ unofficial mottos: “If you’re bored, it’s your own fault.” Violet Ray, leader of a hula troupe, calls her schedule “crazy.
Click Here to Read Full Article
The Villages Retirement Community: ‘Disney World for Adults’ The largest retirement community in the nation allows the elderly to stay young at heart
THE VILLAGES
THE VILLAGES
WILDWOOD — The Villages could build as many as 20,000 homes on property it has purchased in the Wildwood area, according to city officials.
The expansion area includes the former 2,195-acre Southern Oaks property, which was never developed. The Villages purchased that site for $25 million earlier this year.
The new development will encompass over 4,518 acres south of State Road 44 and east of U.S. 301 on both sides of Florida’s Turnpike.
Plans have not yet been submitted, said Ryan Howser, city planner.
Wildwood city commissioners are expected to hold a public hearing on May 8 to discuss land-use changes, rezoning and a developer’s agreement. The property has already been annexed into the city. Among the changes city commissioners might decide to approve is a new designation for communities where residents will be 55 and older, Howser said.
The new development will be adjacent to The Village of Fenney, which is an 1,000-acre site with about 2,700 homes.
Howser said The Villages could finish platting Fenney sites within four to five months and possibly finish construction of the current phase by the end of the year. The Villages website predicted earlier this year that it would be completed this summer.
The previous owners of Southern Oaks had obtained approval for 1,214 single-family homes and 1,525 townhomes. Much of the development, however, was going to be a commercial and business park. Those plans were approved by Wildwood in 2012. The Villages has scrapped those ideas, however.
The Villages announced in its Daily Sun newspaper in January that it had purchased a total of 8,000 acres south of its Brownwood development, which includes the Village of Fenney, “where about 4,600 of the projected 14,000 new homes are being built.”
The Villages spokesman could not be reached for comment on the latest plans. The retirement community, which stretches over portions of three counties, says it will be home to more than 113,000 residents by the end of this year.
The Villages, Fla., is shown on Thursday, May 28, 2014.
The Villages plans 20,000 more homes Mar 20, 2017
The Villages Nation’s Largest
Retirement Community with Over 27,000 Acres
and Over 157,000 Residents
AERIAL
Surrounding Area
AERIAL
Walgreens
US-441
TENANT SUMMARY
Over 30 years ago, Sleep Number transformed the mattress industry with the idea that ‘one size does not fit all’ when it comes to sleep. Today, the company is the leader in sleep innovation and ranked “Highest in Customer Satisfaction with Mattresses” by J.D. Power in 2015 and 2016. The investments over the past five years have further differentiated the brand and strengthened the company’s three competitive advantages: proprietary innovations that provide meaningful sleep benefits for customers; ongoing customer relationships that are enabled by direct-to-consumer business model; and exclusive distribution that is highly productive and fueled by mission-driven sales teams. Sleep Number’s business model enables the company to stay focused on what is relevant to customers while building life-long relationships within the brand. The company’s team of 3,800 brand ambassadors is dedicated to their mission of improving lives by individualizing sleep experiences. Sleep Number is driven to improve wellbeing through better quality sleep.
Select Comfort Corporation, together with its subsidiaries, provides sleep solutions and services in the United States. It designs, manufactures, markets, retails, and services beds and bedding accessories, such as mattresses, adjustable bases, pillows, sheets, and other bedding products. The company sells its products directly to consumers through retail, online, and phone, as well as through wholesale. As of December, 2016, it operated approximately 540 retail stores. The company was founded in 1987 and is headquartered in Minneapolis. Select Comfort Retail Corporation operates as a subsidiary of Select Comfort Corporation.
At About $1,000/SF, Sleep Number Ranked in the Top 10 Sales/SF Nationally with Apple, Tiffany & Co., Lululemon and Tumi
With a Market Cap of $1.5B, Sleep Number Corp’s Valuation has Doubled Since February 2017
Store Sales Average $2.7M and $1M Profit, Implying an Extremely Low Rent/Sales Ratio
Select Comfort Corporation
No. of Locations: 540 Stock Symbol: NASDAQ: SCSS Market Cap: $1.5 billion Headquarters: Minneapolis, MN Website: www.SleepNumber.com
LEASE ABSTRACT
Tenant: Select Comfort Retail Corporation
DBA: Sleep Number
Remaining: 8.9 Years
Lease Type: NN
Taxes: Tenant pays pro-rata share
Insurance: Tenant pays pro-rata share
CAM: Landlord to maintain, Tenant to pay pro-rata share. Annual increases in controllable CAM expenses may
not exceed 8% over the previous period. *CAM expenses shall include the amortized portion of any capital expenditures or repairs that are incurred solely to reduce or limit operating expenses; or which result in a labor or cost saving device or operation.
TENANT SUMMARY
Kay Jewelers is a specialty retail jewelry store operating under Sterling Jewelers Inc., a wholly owned subsidiary of Signet Jewelers Limited (NYSE: SIG), the world’s largest retail jeweler. Signet operates over 3,600 stores primarily under the name brands of Kay Jewelers, Zales, Jared The Galleria of Jewelry, H. Samuel, Ernest Jones, Peoples, and Piercing Pagoda. The company’s annual sales of $6.41 billion derive from the retailing of jewelry, watches, and related services. Signet’s shares are listed on the New York Stock Exchange and the company maintains a credit rating of BBB-/Stable from Standard & Poor’s. Signet employs 29,566 people worldwide, with 16,342 employees in the Sterling division alone.
Since 2004, Kay has been the largest specialty retail jewelry store brand in the U.S. based on sales. Kay’s $2.54 billion annual sales account for 40 percent of corporate parent Signet Jewelers’ total revenue and 65 percent of Sterling Jewelers’ total revenue. Revenue has increased each of the past three years, as the company continues to take market share and move from interior mall locations to out parcels. As of FYE2017, Kay operated 1,192 stores across all 50 states.
Tenant Profile
Tenant: Sterling Jewelers, Inc. Doing Business As: Kay Jewelers Headquartered: Fairlawn, OH No. of Locations: 1,588 (1,192 Kay Locations) Entity Type: Subsidiary Total Revenue: $3.93 billion Website: www.sterlingjewelers.com
Parent Company Profile
Company Name: Signet Jewelers Limited Headquartered: Akron, OH No. of Locations: 3,682 Entity Type: Public Stock Symbol: SIG Exchange: NYSE Credit Rating: BBB-/Stable (S&P) Total Revenue: $6.41 billion Net Income: $543 million Net Worth: $3.10 billion Website: www.signetjewelers.com
LEASE ABSTRACT
Tenant: Kay Jewelers
Rent Expiration: 12/31/2027
Remaining: 10 Years
Lease Type: NN
Insurance: Part of CAM
CAM: Landlord to maintain, Tenant to pay pro-rata share. Admin Fees may not exceed 15% of Operating Expenses. Annual increases in controllable CAM expenses may
not exceed 7% over the previous period.
Termination Option:
Tenant may terminate after year five in the event Kay’s gross sales during the fifth lease year total less than $1.1M. In addition to the sales requirement, tenant would also need to pay a termination fee of $70,000. Kay stores have average sales of approximately $1,401
per sf which would equate to sales of nearly $3.2M.
TENANT SUMMARY
Mattress One is a privately held home furnishing distributor under the parent company SOS Furniture Company with 350 locations in Florida, Texas and Georgia. SOS Furniture Company has been operating for approximately 15 years and is estimated to generate $65.4 million in annual revenues.
Mattress One is Florida’s largest independent retailer. The stores are as large as 10,000 square feet and feature the latest models. With specials and a 120-day sleep guarantee, most models include free delivery plus setup and removal.
With convenient and affordable interest-free financing, Mattress One makes it easy to purchase a new mattress. Mattress One carries a full line of mattresses including traditional spring, gel foam, and memory foam mattresses in all sizes. Mattress One offers all major brands including Tempurpedic, Sealy, Serta, Stearns & Foster, and Simmons throughout their locations in Florida, Texas and Georgia.
Mattress One
Tenant: Mattress One Parent Company: SOS Furniture Company Number of Locations: +/- 350 Company Type: Private Tenant Business: Retail Headquartered: Orlando, FL Website: www.Mattress1.com
LEASE ABSTRACT
Tenant: SOS Furniture Company, Inc.
DBA: Mattress1One
Remaining: 9 Years
Lease Type: NN
Insurance: Part of controllable CAM expenses
CAM: Landlord to maintain, Tenant to pay pro-rata share. Admin Fees may not exceed 5% of Landlord revenue. Annual increases in controllable CAM expenses may not
exceed 4% over the previous period.
AS-BUILT SURVEY
SURROUNDING AREA
SURROUNDING AREA
LOCAL & REGIONAL MAPS
Or in Google Street View
POPULATION 3 MILES 5 MILES 10 MILES
2010 Population 22,099 50,899 157,755 2017 Population 24,351 57,002 188,670 2022 Population 26,170 65,141 216,793 2017 Male Population 11,381 26,792 88,964 2017 Female Population 12,969 30,210 99,705 2017 Median Age 67.2 67.7 65.6
RACE & ETHNICITY 3 MILES 5 MILES 10 MILES
American Indian, Eskimo 0.3% 0.2% 0.3% Asian 1.1% 1.1% 1.1% Black 4.0% 3.3% 7.3% Hawaiian/Pacific Islander 0.1% 0.1% 0.1% White 92.0% 93.3% 88.6% Other 1.4% 1.0% 1.4% Multi-Race 1.2% 1.0% 1.3% Hispanic Ethnicity 4.7% 3.8% 5.1% Not of Hispanic Ethnicity 95.3% 96.2% 94.9%
HOUSEHOLDS 3 MILES 5 MILES 10 MILES
2010 Households 11,296 25,942 77,032 2017 Households 12,409 29,110 91,366 2022 Households 13,555 33,904 107,339
HOUSEHOLD INCOME 3 MILES 5 MILES 10 MILES
2010 Avg Household Income $54,211 $58,929 $57,403 2017 Avg Household Income $58,525 $63,859 $62,656 2022 Avg Household Income $65,761 $72,469 $71,656 2010 Med. Household Income $40,406 $45,160 $44,292 2017 Med. Household Income $42,349 $47,838 $47,410 2022 Med. Household Income $46,973 $55,034 $55,090 2010 Per Capita Income $27,882 $30,122 $28,120 2017 Per Capita Income $29,983 $32,690 $30,417 2022 Per Capita Income $34,209 $37,787 $35,544
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About Marcus & Millichap
The Wolfe Retail Group of Marcus & Millichap specializes in the sale of single-tenant properties and shopping centers and has successfully assisted clients in selling over 450 separate commercial properties with a market value exceeding $1.25 billion. Having closed sales in more than 40 states, our track record is evidence that we are one of the premier brokerage teams in the United States.
With our experience and background in various fields such as law and finance, we have proved to be invaluable to our clients, earning their trust and exceeding their expectations while best assisting them in their real estate transactions.
For more about the Wolfe Retail Group, or to view all of our available listings, visit www.WolfeRetailGroup.com
The Wolfe Retail Group has sold over
450 properties in more than
40 states
[email protected] (954) 245-3493
Evan Whelan Associate

Documents

Offering Memorandum THE VILLAGES PLAZA