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SINGLE TENANT NET LEASE Safeway 702 North 5th Ave, Sandpoint, ID
Introduction | Disclaimer
This Investment Offering Memorandum has been prepared by
Thomas Company and does not purport to provide a necessarily
accurate summary of the Property or any of the documents related
thereto, nor do they purport to be all inclusive or to contain all of
the information which prospective investors may need or desire.
All projections have been developed by Seller, Thomas Company
and designated sources, and are based upon assumptions relating
to the general economy, competition and other factors beyond
the control of Seller, and therefore are subject to variation. No
representation is made by Seller or Thomas Company as to the
accuracy or completeness of the information contained herein,
and nothing contain herein, is, or shall be relied on as a promise
or representation as to the future performance of the Property.
Although the information contained herein is believed to be
correct, Seller and its officers, directors and employees disclaim any
responsibility for inaccuracies and expect prospective purchasers to
exercise independent due diligence in verifying all such information.
Further, Thomas Company, Seller and its officers, directors and
employees disclaim any and all liability for representations and
warranties, expressed and implied, contained in, or omission from
the Investment Offering Memorandum or any other written or oral
communication transmitted or made available to the recipient.
The Investment Offering Memorandum does not constitute a
representation that there has been a change in the business or
affairs of the Property or Seller since the date of preparation of the
Investment Offering Memorandum. Analysis and verification of the
information contained in the Investment Offering Memorandum is
solely the responsibility of the prospective purchaser.
Seller and Thomas Company each expressly reserve the right, at
their sole discretion, to reject any and all expressions of interest
or offers regarding the Property and/or terminate discussions with
any entity at any time with or without notice. Seller shall have no
legal commitment or obligation to sell the property to any entity
reviewing the Investment Offering Memorandum or making
an offer to purchase the Property unless and until such offer is
approved by Seller, a written agreement for the purchase of the
Property has been fully executed, delivered and approved by Seller
and its legal counsel and any conditions to Seller’s obligations
thereunder have been satisfied or waived. This Investment Offering
Memorandum and the contents are of a confidential nature. By
accepting the Investment Offering Memorandum, you agree that
you will hold and treat it in the strictest confidence, that you will not
photocopy or duplicate it, that you will not disclose the Investment
Offering Memorandum or any of the contents to any other entity
(except to outside advisors retained by you if necessary, for your
determination of whether or not to make a proposal and from
whom you have obtained an agreement of confidentiality) without
the prior written authorization of Seller, and that you will not use
the Investment Offering Memorandum or any of the contents in any
fashion or manner detrimental to the interest of Seller or Thomas
Company. If you do not have an interest in the Property at this time,
please return the Investment Offering Memorandum forthwith.
© 2018 Thomas Company
Exclusively Marketed By
PLEASE CONTACT
JEFFREY S. THOMAS
THOMAS COMPANY210 Third Avenue SouthSuite 5CSeattle, WA [email protected]
ID Real Estate License: #DB46528
TABLE OF CONTENTS
Offering Highlights
The Property
The Lease
Rent Schedule
Site Map/Demographics
Area Maps
Market Overview
Albertsons Companies, LLC
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56
8910
11
EXECUTIVE SUMMARY
PROPERTY OVERVIEW
TENANT OVERVIEW
7
INVESTMENT HIGHLIGHTSTHE OFFERINGThomas Company is pleased to offer for sale a well-located Safeway store totaling +/- 44,369 square feet. The property is offered free and clear of debt. The store has +/- 20 years remaining on a triple-net lease with no landlord responsibilities.
Long-Term LeaseThe store has +/- 20 years remaining on the in-place lease, providing the Landlord with consistent management-free cash flow during that time. There is no rent holiday in the lease.
Passive OwnershipThe Tenant has executed a triple-net (NNN) lease with no Landlord responsibilities.
EXECUTIVE SUMMARY
Secure Cash FlowAlbertsons Companies, LLC (“Albertsons”, or the “Company”) is the 2nd largest traditional grocer in the United States serving over 34 million customers per week and generating $60 billion in sales annually. As of June 2017, the Company operated 2,329 stores across 35 states under 20 well-known banners with long operating histories.
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Milledgeville, GAPulaski, TN
ADDRESS702 North 5th Ave, Sandpoint, ID
PRICE$7,290,000
CAP RATE5.45%
ANNUAL RENT$397,291
THE PROPERTY
EXECUTIVE SUMMARY
BUILDING SIZE +/- 44,369
LAND SIZE+/- 2.74 Acres
YEAR BUILTRenovated in 2010 / Built in 1982
5
TENANTSafeway, Inc.
GUARANTORAlbertsons Companies, LLC
OCCUPANCY100%
LEASE COMMENCEMENT1/18/18
LEASE EXPIRATION1/31/38
REMAINING LEASE TERMApprox. 20 Years
LEASE STRUCTURENNN
EXECUTIVE SUMMARY
LANDLORD RESPONSIBILITIESThe Tenant is responsible for all repair and maintenance of the property, including the roof and structure.
RENT INCREASESYears 2-5: 1.50% annual increasesYear 11: 7.50% increaseYear 16: 7.50% increase(See Rent Schedule on Page 7)
EXTENSION OPTIONS8 x 5-year extension options.
EXTENSION OPTION RENTOption Periods 1-3: 7.50% increase at the beginning of each option.Option Periods 4-8: Fair Market Rent (as defined in the Lease), but not lower than the rent during the previous term.
THE LEASE
6
EXECUTIVE SUMMARY
RENT SCHEDULE
Lease Year Increase Monthly Rent Annual Rent1 $33,107.60 $397,291.212 1.50% $33,604.21 $403,250.58
3 1.50% $34, 108.28 $409,299.344 1.50% $34,619 .90 $415,438.83
5 1.50% $35,139.20 $421,670.41
6 $35,139.20 $421,670.417 $35,139.20 $421,670.41
8 $35,139.20 $421,670.41
9 $35,139.20 $421,670.4110 $35,139.20 $421,670.41
11 7.50% $37,774.64 $453,295.6912 $37,774.64 $453,295.69
13 $37,774.64 $453,295.6914 $37,774.64 $453,295.6915 $37,774.64 $453,295.69
16 7.50% $40 ,607.74 $487,292.8717 $40,607.74 $487,292.87
18 $40,607.74 $487,292.8719 $40,607.74 $487,292.87
20 $40,607.74 $487,292.87
7
SITE MAP
Larch St
N 4th A
ve
Fir St
2
PROPERTY OVERVIEW
Shell
1mi 3mi 5mi
5,638 11,385 15,571
1mi 3mi 5mi
4.00% 22.00% 22.00%
1mi 3mi 5mi
$54,181 $58,832 $61,231
1mi 3mi 5mi
37.7 39.9 41.9
Est. Population
Est. Ave HH Income
Median Age
Est. Population Growth 2000-2017
DEMOGRAPHICS
21,000 Daily
Traffic Counts
8
AREA MAP
Sandpoint
PROPERTY OVERVIEW
Spokane
Safeway | 702 North 5th Avenue, Sandpoint, Idaho
9
MARKET OVERVIEW
Sandpoint is a scenic resort destination and retail hub in northern Idaho. The estimated median house or condo value in 2016 was $215,571, up from $106,200 in 2000 and compared to a state median of $189,400.
Sandpoint’s main industries include forestry, light manufacturing, tourism, recreation and government services. As the largest service center in northern Idaho and northwestern Montana, the city supports a thriving retail sector. It is the headquarters of Biomedical Innovations, a medical device contract manufacturer; Quest Aircraft, a manufacturer of utility aircraft and seaplanes; Litehouse Foods, maker of dressings, dips and cheeses; Tamarack Aerospace Group, developer of a winglet that boosts the range of jet aircraft; Timbersled, a maker of snowmobiles; and Kochava, a leading mobile technology company that provides analytics and other data tools.
Part of Sandpoint’s appeal to residents and visitors is the dramatic scenery. The city is located on the shores Lake Pend Oreille, Idaho’s largest lake, and is surrounded
by the Selkirk, Cabinet and Bitterroot mountain ranges. It is home to Schweitzer Mountain Resort, Idaho’s largest ski resort. Sandpoint is part of the International Selkirk Loop, and is on two National Scenic Byways.
The Spokane-Coeur d’Alene combined metropolitan area spans the Washington-Idaho border along Interstate 90. The region’s population was 710,946 as of 2016. It is the 69th largest Combined Statistical Area in the United States, and is the economic and cultural center of the Inland Northwest.
Spokane is the second-largest city in Washington State, after Seattle. The city has a gross metro product of $27.8 billion, median household income of $51,895 and a job growth rate of 2.1%. The cost of living is 3.6% below the national average. The median home price was $203,300 with an increase in price of 7.4% over the previous year. The city currently rates #67 on Forbes’s list of “Best Places For Business And Careers”. As one of the most productive mining districts in North
America, Spokane’s economy has traditionally been based on natural resources. However, the city’s economy has diversified to encompass other industries, including biotechnology and finance. It is home to Gonzaga and Whitworth colleges, as well as the Community Colleges of Spokane.
Spokane’s proximity to lakes, rivers, and mountains of fers abundant opportunities for outdoor recreation. It is also the home of the Northwest Museum of Arts and Culture. Residents of Spokane also benefit from an expansive Riverfront Park, which offers a cable car with views of Spokane Falls and a sculpture walk. The city is also home to Manito Park and Botanical Gardens, a 90-acre public park with an arboretum, botanical gardens, and a conservatory.
On the eastern side of the CSA, fast-growing Coeur d’Alene is home to a metro population of 150,700, up 38.8% since the 2000 Census.The area has a gross metro product of $5.4
billion, with major industries including healthcare, tourism and publishing. The median household income is $50,246, with a cost of living 4.5% below the national average. It currently ranks #23 nationally on Forbes’s list “Best Small Places for Business and Careers”. The percentage of unemployed people in the city is significantly below the state average. The city is located on the north shore of Lake Coeur d’Alene, named one of the world’s top 10 most beautiful lakes by National Geographic. Coeur d’Alene’s tourism industry has grown substantially in recent years as visitors flock to the city’s ski resorts for vacations, conferences and competitions. The industry is projected to add 1,560 new jobs in Northern Idaho by 2020. The city is also home to twelve industrial parks.
SANDPOINT, IDAHO
PROPERTY OVERVIEW
10
ALBERTSONS COMPANIES, LLC
TENANT OVERVIEW
Albertsons Companies, LLC (“Albertsons”, or the “Company”) is the 2nd largest traditional grocer in the United States serving over 34 million customers per week and generating $60 billion in sales annually. In January 2015, Albertsons merged with Safeway, creating a best-in-class organization dedicated to bringing a better shopping experience to customers across the country. The Company’s powerful combination of strong local presence and national scale, vast range of brands and products, and service-oriented staff enable them to meet evolving shopping preferences.
As of June 2017, the Company operated 2,329 stores across 35 states under 20 well-known banners with long operating histories. Albertsons has grown strategically through a series of strategic acquisitions in recent years into a $2.8 billion adjusted EBITDA company as of fiscal year 2016 ended February 25, 2017, and as of Q1 2017 the Company had already generated $771.7 million in adjusted EBITDA.
COMPANY BANNERS
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ALBERTSONS COMPANIES, LLC (CONTINUED)
TENANT OVERVIEW
Albertsons Companies, LLC is one of the largest food retailers and the second largest traditional grocer in the United States.
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INVESTMENT SALES • ADVISORY SERVICES • SALE LEASEBACKS • DEBT PLACEMENT
Exclusively Marketed By
PLEASE CONTACT
JEFFREY S. THOMAS
THOMAS COMPANY210 Third Avenue South | Suite 5C
Seattle, WA 98104800.775.3350
ID Real Estate License: #DB46528
THOMASCOMPANY.COM