WALMART SHADOW ANCHORED SHOPPING CENTER · Fairfield Inn & Suites by Marriott (2015) and Tractor Supply Company (2016). Behind this newer development is the I-94 Business Park, 30-acres

WALMART SHADOW ANCHORED SHOPPING CENTER2619 8th Ave SW • Jamestown, ND 58401

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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. Â© 2017

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

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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.

TABLE OF CONTENTS

WALMART SHADOW ANCHORED SHOPPING CENTER

INVESTMENT OVERVIEWSection 1•

FINANCIAL ANALYSISSection 2•

MARKET OVERVIEWSection 3•


4

INVESTMENT

OVERVIEW

#

OFFERING SUMMARY

▪ Walmart Shadow Anchored Shopping Center

▪ Strong Historical Occupancy | 100 Percent Occupied

▪ Strong Tenant Mix | Anchored by Dollar Tree

▪ 63 Percent of Income from National and Regional Tenants

▪ Situated Along US Route-281 Near Interstate-94

▪ Increasing Demand with a Growing Retail Corridor

INVESTMENT HIGHLIGHTS

The Dumes Falk Group of Marcus & Millichap is pleased to bring to market The Shoppes at Jamestown, a Walmart Shadow Anchored Shopping Center comprised of

20,887 square-feet in Jamestown, North Dakota. Jamestown is a county seat of Stutsman County and located 90-miles west of Fargo – the largest city in North

Dakota. The subject property was constructed in 2009 is positioned along US Route-281 on approximately 1.71 acres with great signage and visibility directly in front

of a Walmart Super Center.

The Shoppes at Jamestown is currently 100 percent leased with all tenants under triple-net leases except Dollar Tree and Simply Home. The national and regional

tenants include Dollar Tree, AT&T, Edward Jones, Rock 30 Games and Cricket Wireless generate 63 percent of the current income. Six of the eight tenants which total

85 percent of the GLA have occupied space since the building was constructed. Strong retail demand within this growing market was proven earlier this year as AT&T

signed a three-year triple-net lease for 1,200 square-feet at $18.00 per foot compared to $10.75 per foot under similar lease terms that Rock 30 Games signed in 2009.

The tenant base consists of a complimentary mix of local, regional and national tenants that supplies the city’s consumers with a wide range of products and services

to meet the needs of its residents. Some of these needs include a Mexican restaurant, nail salon and a coffee shop.

This Walmart Shadow Anchored Shopping Center benefits from being positioned off of Interstate-94 along US-281, a four-lane US highway with a signalized

intersection and dedicated turn lanes into the center. Along with the Walmart Supercenter, additional traffic drivers within the corridor include Applebee’s, Dacotah

Bank, Hampton Inn & Suites, Perkins Restaurant & Bakery, Burger King and Quality Inn & Suites. Adjacent to the Walmart Supercenter is Buffalo Mall, a 215,000-

square foot mall anchored by Home of Economy, Dunham’s Sports and Bison 6 Cinema. Recent development behind the Buffalo Mall include Menard’s (2015),

Fairfield Inn & Suites by Marriott (2015) and Tractor Supply Company (2016). Behind this newer development is the I-94 Business Park, 30-acres with only three

available lots of the original 25. Located a few miles west, the award-winning Jamestown Regional Medical Center was completed in 2012 and Modern Healthcare

named JRMC one of the Best Places to Work in Healthcare in 2017. JRMC was the only organization in North Dakota and South Dakota to receive the award in 2017.

In 2016, JRMC was named one of iVantage Health Analytics’ Top 100 Critical Access Hospitals (CAHs) in the United States.

The city of Jamestown is the county seat of Stutsman County. Jamestown has a strong precision manufacturing base as well as food processing, agriculture, retail and

wholesale businesses. Notable companies headquartered in Jamestown include Agri-Cover, Inc., DuraTech Industries, and Midwestern Machine, and additional major

employers include Cavendish Farms and UTC Aerospace Systems, the state’s largest aerospace manufacturer. The University of Jamestown is a private liberal arts

college has roughly 1,000 students and is preparing for the new Harold Newman Arena, a $16 million project which should be completed this August. Additionally, the

Jamestown Regional Airport Authority recently approved a $3 million capital improvement plan for 2018.

This Walmart Shadow Anchored Shopping Center has seen strong historical occupancy and a prominent location within the growing market provides it the ability to

continue to be an integral part of the shopping center community for residents and travelers alike.

INVESTMENT OVERVIEW

5


PROPERTY PHOTOS

6


PROPERTY PHOTOS

7


SITE PLAN

8


THE PLAZA AT JAMESTOWNJAMESTOWN, NORTH DAKOTA

• Agri-Cover, Inc.• DuraTech Industries• Midwestern Machine• Cavendish Farms• UTC Aerospace Systems

University of JamestownEnrollment: 1,000

Jamestown High SchoolEnrollment: 675

Jamestown Middle SchoolEnrollment: 500

16,405 Residents | 17,349 Employees$60,698 Average Household Income

• Named one of the Best Places to Work in Healthcare in 2017

• Named one of Top 100 Critical Access Hospitals in 2016

LOCAL AERIAL

9


LOCAL MAP

REGIONAL PHOTO

10



11

FINANCIAL

ANALYSIS


#

EXECUTIVE SUMMARY

OFFERING SUMMARY

12

THE OFFERING

Property Walmart Shadow Anchored Shopping Center

Property Address 2619 8th Avenue SW, Jamestown, ND 58401

SITE DESCRIPTION

Built 2009

Gross Leasable Area 20,887 SF

Current Occupancy 100.00%

Lot Size +/- 1.71 Acre(s)

Ownership Fee Simple

MAJOR TENANTS

TENANT GLA LEASE EXPIRATION LEASE TYPE

Dollar Tree #3836 8,000 07/31/2019 Gross

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MAJOR EMPLOYERS

EMPLOYER# OF

EMPLOYEES

North Dakota State Hospital 465

Anne Carlsen Center for Children 300

Walmart 260

Cavendish Farms Inc 225

Eventide Jamestown 150

Jamestown College 150

South Central Human Service Center 150

Coborns Incorporated 143

Ave Maria Village 140

Menard 132

Alpha Opportunities Inc 123

Hugos Store 9 120

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2016 Estimate Pop 583 12,121 16,405

2016 Census Pop 596 12,231 16,364

2016 Estimate HH 293 5,047 6,963

2016 Census HH 299 5,101 6,931

Average HH Income $61,635 $59,171 $60,698



FINANCIAL ANALYSIS


13

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

TypeRenewal Options

Comm. Exp.

Dollar Tree #3836 8,000 38.30% 10/09/2007 07/31/2019 $10.63 $7,087 $85,040 08/01/2019 $88,000 Gross Two, Five-Year Terms

AT&T (Pro Cellular Comm.Inc.) 2,000 9.58% 08/01/2014 08/31/2020 $12.00 $2,000 $24,000 None None NNN None

Cricket Wireless (PQH Wireless, Inc.) 1,200 5.75% 01/26/2017 04/30/2020 $18.00 $1,800 $21,600 05/01/2020 $22,800 NNN Two, Three-Year Terms

City Nail Spa 1,000 4.79% 07/07/2009 12/31/2019 $12.50 $1,042 $12,500 01/01/2020 $13,000 NNN One, Five-Year Term

Rock 30 Games, Inc. 1,200 5.75% 08/01/2009 08/31/2018 $10.75 $1,075 $12,900 None None NNN None

Simply Home 2,200 10.53% 08/24/2010 12/31/2018 $9.27 $1,700 $20,400 None None Gross None

Edward Jones 1,000 4.79% 07/28/2009 08/31/2019 $12.00 $1,000 $12,000 None None NNN None

La Carreta Mexican Restaurant 4,287 20.52% 08/21/2009 12/31/2018 $12.00 $4,287 $51,444 None None NNN None

Total Occupied 20,887 100.00%

Total Vacant 0 0.00%

Total 20,887 100.00% $19,990 $239,884

TENANT SUMMARY

#

Dollar Tree

Founded in 1953, Dollar Tree, Inc. operates more than 5,400 dollar stores in shopping

centers and malls throughout the lower 48 states and five Canadian provinces under the

Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant and Dollar Bills banners. Stores average

8,500 square feet. The majority of merchandise at namesake stores are priced at $1, with

merchandise above that price point at its more than 200 Deal$ stores and C$1.25 at its

over 200 Canadian stores. Approximately half of the Company's sales are food and grocery

related products, while merchandise (toys, durable housewares, gifts, HBC items, etc.) and

seasonal goods comprise more than 40% and 5% of sales, respectively.

In November 2010, Dollar Tree completed its acquisition of the assets of Dollar Giant Store

(B.C.) Ltd. of Vancouver, BC. On July 6, 2015, Dollar Tree completed its acquisition of

Family Dollar in a cash and stock transaction, making Family Dollar a wholly owned

subsidiary of Dollar Tree, Inc. The Company divested 330 Family Dollar stores to a private

equity firm as part of the acquisition. The combined organization operates more than

13,000 stores across the U.S. and five Canadian provinces and is the biggest dollar store

chain in the U.S. by store count.

PRICING AND VALUATION MATRIX

PROPERTY NAMEOAKLEY STATION BUILDING

PRICING AND VALUATION MATRIX

PROPERTY NAME

14

TENANT SUMMARY

General Information

Tenant Name Dollar Tree #3836

Lease Commencement October 9, 2007

Lease Expiration July 31, 2019

Gross Leasable Area (GLA) 8,000 SF

Original Term Five Years

Option Term Two, Five-Year Terms

Pro Rata Share of Project 38.30%

Headquarters Chesapeake, VA

Website www.dollartree.com

Lease Years Annual Rent Monthly Rent Annual Rent/SF

10/09/2007 – 07/31/2014 $68,000 $5,667 $8.50

08/01/2014 – 07/31/2019 $85,040 $7,087 $10.63

Base Rent

Expense Lease Summary

C.A.M. Tenant does not reimburse pro-rata share

Real Estate Tax Tenant does not reimburse pro-rata share

Insurance Tenant does not reimburse pro-rata share

Management Tenant does not reimburse pro-rata share

Co-Tenancy Tenant has a Co-Tenancy clause with Walmart


Lease Years Annual Rent Monthly Rent Annual Rent/SF

08/01/2019 – 07/31/2024 $88,000 $7,333 $11.00

08/01/2024 – 07/31/2029 $92,000 $7,667 $11.50

Options

FINANCIAL ANALYSIS


PRICING DETAIL

15

Operating Data Current

Scheduled Base Rental Income $239,884

Expense Reimbursement Income

CAM $11,371

Insurance $3,960

Real Estate Taxes $9,467

Management Fees $6,126

Total Reimbursement Income $30,924

Gross Revenue $270,808

Vacancy Factor (5% of GR) ($13,540)

Effective Gross Revenue $257,267

Less: Operating Expenses ($60,524)

Net Operating Income $196,743

Debt Service ($123,061)

Net Cash Flow After Debt Service 11.98% $73,682

Principal Reduction $40,872

Total Return 18.63% $114,555

Operating Expenses Current Per/SF

Co

mm

on A

rea

Main

ten

an

ce

(CA

M)

Electric $2,216 $0.11

Trash Removal $10,142 $0.49

Snow Removal $1,222 $0.06

Landscaping $2,200 $0.11

Parking Lot Sweeping $4,240 $0.20

General Repairs & Maintenance $2,204 $0.11

Total CAM $22,224 $1.06

2016 Insurance Premiums $7,739 $0.37

2016 Real Estate Taxes $18,503 $0.89

Management Fee (4% of EGR) $10,058 $0.48

Reserves $2,000 $0.10

Total Expenses $60,524 $2.90

PRICING & FINANCING

Price $2,460,000

Cap Rate | Price/SF 8.00% | $118

Net Operating Income $196,743

Loan Type Proposed New

Down Payment 25% / $615,000

Loan Amount $1,845,000

Interest Rate / Amortization 4.50% / 25 Years

Debt Coverage Ratio 1.60


16

MARKET

OVERVIEW

8


DEMOGRAPHICS

17

5-Miles

3-Miles

1-Mile

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2016 Experian

Created on July 2017

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2021 Projection

Total Population 528 12,050 16,297

▪ 2016 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Current Daytime Population

2016 Estimate 960 14,176 17,349

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2021 Projection

Total Households 267 5,052 6,971

▪ 2016 Estimate


Average (Mean) Household Size 2.07 2.10 2.10

▪ 2010 Census


▪ 2000 Census


▪ Occupied Units

2021 Projection 267 5,052 6,971

2016 Estimate 322 5,488 7,535

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2016 Estimate

$150,000 or More 5.08% 3.80% 3.79%

$100,000 - $149,000 11.37% 8.38% 9.47%

$75,000 - $99,999 9.44% 11.29% 12.34%

$50,000 - $74,999 20.54% 21.87% 21.48%

$35,000 - $49,999 18.28% 15.44% 15.18%

Under $35,000 35.03% 38.49% 36.93%

Average Household Income $61,635 $59,171 $60,698

Median Household Income $47,304 $45,294 $47,196

Per Capita Income $31,170 $25,731 $26,841

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles

Total Average Household Retail Expenditure

$58,149 $56,560 $57,693

▪ Consumer Expenditure Top 10 Categories

Housing $15,257 $14,857 $15,122

Transportation $10,028 $9,694 $9,912

Shelter $8,720 $8,503 $8,630

Food $6,113 $6,066 $6,164

Personal Insurance and Pensions $5,051 $4,710 $4,868

Health Care $4,342 $4,284 $4,387

Utilities $3,447 $3,386 $3,440

Entertainment $2,553 $2,449 $2,519

Cash Contributions $1,639 $1,695 $1,790

Household Furnishings and Equipment

$1,543 $1,460 $1,505

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2016 Estimate Total Population 583 12,121 16,405

Under 20 20.53% 22.79% 23.19%

20 to 34 Years 20.65% 22.77% 21.90%

35 to 39 Years 4.59% 6.06% 5.79%

40 to 49 Years 12.20% 11.18% 10.81%

50 to 64 Years 25.09% 20.61% 20.95%

Age 65+ 16.92% 16.60% 17.36%

Median Age 44.19 38.61 39.20

▪ Population 25+ by Education Level

2016 Estimate Population Age 25+ 422 8,272 11,184

Elementary (0-8) 6.39% 5.95% 5.77%

Some High School (9-11) 4.95% 6.87% 6.54%

High School Graduate (12) 40.52% 34.39% 32.75%

Some College (13-15) 19.37% 20.68% 20.24%

Associate Degree Only 8.29% 9.45% 9.21%

Bachelors Degree Only 16.80% 17.93% 20.71%

Graduate Degree 3.70% 4.35% 4.49%

18

Income

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

$47,196, compare this to the US average which is currently $54,505.

The median household income for your area has changed by 45.86%

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

area will be $58,716 five years from now, which represents a change

of 24.41% from the current year.

The current year per capita income in your area is $26,841, compare

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

household income in your area is $60,698, compare this to the US

average which is $78,425.

Population

In 2016, the population in your selected geography is 16,405. The

population has changed by -1.78% since 2000. It is estimated that

the population in your area will be 16,297.00 five years from now,

which represents a change of -0.66% from the current year. The

current population is 50.65% male and 49.35% female. The median

age of the population in your area is 39.20, compare this to the US

average which is 37.68. The population density in your area is 208.24

people per square mile.

Households

There are currently 6,963 households in your selected geography. The

number of households has changed by 1.00% since 2000. It is

estimated that the number of households in your area will be 6,971

five years from now, which represents a change of 0.11% from the

current year. The average household size in your area is 2.10 persons.

Employment

In 2016, there are 9,023 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

57.17% of employees are employed in white-collar occupations in

this geography, and 42.69% are employed in blue-collar occupations.

In 2016, unemployment in this area is 3.19%. In 2000, the average

time traveled to work was 13.00 minutes.

Race and Ethnicity

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

93.19% White, 1.37% Black, 0.13% Native American and 0.80%

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 2.59% 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 $100,786 in 2016,

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

4,214 owner occupied housing units in your area and there were

2,680 renter occupied housing units in your area. The median rent at

the time was $338.

Source: © 2016 Experian

DEMOGRAPHICS

19

www.MarcusMillichap.com

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

Senior Director - National Retail Group

Cincinnati Office

Tel: (513) 878-7721

Fax: (513) 878-7710

[email protected]

License: OH SAL.2012001364

P R E S E N T E D B Y

Broker of Record: Craig Patterson

Ryan Roedersheimer

Associate

National Retail Group

Cincinnati Office

Tel: (513) 878-7796

Fax: (513) 878-7710

[email protected]

License: SAL OH 2015004880

Documents

WALMART SHADOW ANCHORED SHOPPING CENTER · Fairfield Inn & Suites by Marriott (2015) and Tractor Supply Company (2016). Behind this newer development is the I-94 Business Park, 30-acres