Bridgestone/Firestone | 8400 N. Lindbergh Blvd. Florissant, MO 63031 OFFERING MEMORANDUM
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Bridgestone/Firestone | 8400 N. Lindbergh Blvd. Florissant, MO 63031
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Bridgestone/Firestone CONTENTS
WEST HARBOR REAL ESTATE INVESTMENTS, INC 501 W. Broadway #800 San Diego, CA 92101
Contact Arjay Smith [email protected] (619) 400-4824
CA BRE# 01409954
We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility oferrors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent thecurrent or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
01 Executive Summary Executive Summary 5 Location Summary 6
02 Property Description Property Features 8 Aerial Map 9 Parcel Map 10 Property Images 11
03 Rent Roll Rent Roll Details 15 Tenant Profile 16
04 Financial Analysis Income & Expense Analysis 18 Multiyear Cash Flow Assumptions 19 Cash Flow Analysis 20 Disposition Sensitivity Analysis 22
05 Demographics Demographics 24 Demographic Charts 25
06 Additional Information Future Outlook 28 Site Plan 29 Building Elevations 30
In Cooperation with Adam S. Blue with AREA Real Estate
Advisors Missouri Lic# CO00000256
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to bereviewed only by the party receiving it from West Harbor Real Estate Investments, Inc. and it should not be made available to anyother person or entity without the written consent of West Harbor Real Estate Investments, Inc..
By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such informationin the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offeringmemorandum. If you have no interest in the subject property, please promptly return this offering memorandum to West HarborReal Estate Investments, Inc.. This offering memorandum has been prepared to provide summary, unverified financial andphysical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. Theinformation contained herein is not a substitute for a thorough due diligence investigation. West Harbor Real Estate Investments,Inc. has not made any investigation, and makes no warranty or representation with respect to the income or expenses for thesubject property, the future projected financial performance of the property, the size and square footage of the property andimprovements, the presence of absence of contaminating substances, PCBs or asbestos, the compliance with local, state andfederal regulations, the physical condition of the improvements thereon, or 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 offeringmemorandum has been obtained from sources we believe reliable; however, West Harbor Real Estate Investments, Inc. has notverified, and will not verify, any of the information contained herein, nor has West Harbor Real Estate Investments, Inc. conductedany investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy orcompleteness of the information provided. All potential buyers must take appropriate measures to verify all of the information setforth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.
Bridgestone/Firestone Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER:
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT WEST HARBOR REAL ESTATE INVESTMENTS, INC. ADVISOR FOR MORE DETAILS. Copyright © 2018 CREOP, LLC. All Rights Reserved.
Bridgestone/Firestone | E
xecutive Summ
ary
Executive Summary
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Offering Summary
Location Summary
Bridgestone/Firestone Executive Summary | 05
OFFERING SUMMARY ADDRESS 8400 N. Lindbergh Blvd. Florissant
MO 63031
COUNTY St. Louis
BUILDING SF 8,256 SF
LAND SF 71,227 SF
YEAR BUILT 2012
APN 08K240831
SINGLE TENANT Bridgestone Retail Operations, LLC
OWNERSHIP TYPE Fee Simple
FINANCIAL SUMMARY OFFERING PRICE $4,125,000
PRICE PSF $499.64
OCCUPANCY 100.00 %
NOI (CURRENT) $273,384
CAP RATE (CURRENT) 6.63%
PROPOSED FINANCING LOAN TYPE Fully Amortized
DOWN PAYMENT $1,237,500
LOAN AMOUNT $2,887,500
INTEREST RATE 4.75%
ANNUAL DEBT SERVICE $197,546
LOAN TO VALUE 70 %
1 MILE 3 MILE 5 MILEDEMOGRAPHICS 2017 Population 14,230 95,594 174,579
$53,129 $51,7812017 Median HH Income $50,655
2017 Average HH Income $59,767 $64,561 $64,465
Absolute NNN Lease - No Landlord Responsibilities Initial 15 Year Lease Term with 9 Years Remaining (expiration 7/31/2027)
As of 7/31/2022 Rent increases to $291,153
Five Options / (5) Year Terms Including Increases
Taxes, Insurance, Roof, Maintenance and Structure are Tenant's Responsibility
2012 High Quality Built to Suit Construction
8,256 SF Building
10 Drive-in Doors
1.64 Acres of Land
CORPORATE CREDIT LEASE - A CREDIT - The lease is backed by Bridgestone Corporation, the world's largest manufacturer of tire and rubber products. The credit is classified as investment-grade with a rating of A by Standard & Poor and A2 by Moody. This is the highest credit rating in the auto-service STNL sector. The lease has 9 YEARS REMAINING WITH ESCALATIONS. The rent is $273,384 per year for the next 4 years and increases to $291,153 per year for the next 5 years. The initial 15-year term commenced July 27, 2012 and expires July 31, 2027. There are five additional renewal options, each with a 6.50% rent increase. The Tenant has a 15 day response time to excercise their right of first refusal to purchase.
Bridgestone/Firestone Location Summary | 06
Located in North St. Louis County, just outside of St. Louis Florissant has a population of over 50,000. Florissant's median family income is over $63,000. The average commute time is 25 minutes. Within 5 miles of the subject property the population is over is 178,00. Florissant is located in a progressive and thriving St. Louis Suburb with a major focus to attract, retain and expand businesses that add vitality to the area.
This Bridgestone/Firestone store is located in a very strong retail area.
The 2017 daily traffic count on Lindbergh Blvd. was44,957.
The St. Louis Lambert International Airport is within 7 miles.
The City has 20 parks comprising almost 400 acres with a variety of attractions. Florissant is home to 2 recreation facilities, 2 outdoor water parks, Civic Center Theatre & Art Gallery plus a beautiful 18 hole golf course.
MAJOR EMPLOYERS IN THE AREA:Wal-MartBoeing Defense
Dierbergs Grocery Home Depot AmazonEmerson Electric Co.
Enterprise Rent-A-Car WalgreensUnited Parcel Service, Inc. Anthem Blue Cross
Regional Map
Locator Map
Bridgestone/Firestone | Property D
escription
Property Description
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Property Features
Aerial Map
Parcel Map
Additional Maps
Property Images
Bridgestone/Firestone Property Features | 08
Site Description NUMBER OF TENANTS 1
BUILDING SF 8,256
LAND SF 71,227
LAND ACRES 1.64
YEAR BUILT July 2012
# OF PARCELS 1
ZONING TYPE B-5, Planned Commercial District
TOPOGRAPHY Level
NUMBER OF STORIES 1
NUMBER OF BUILDINGS 1
NUMBER OF PARKING SPACES 57
PARKING RATIO 6.75
MECHANICAL HVAC Attic mounted units
FIRE SPRINKLERS Yes
LIGHTING Metal halide; fluorescent
CONSTRUCTION FOUNDATION Concrete
FRAMING Concrete Block
EXTERIOR Brick / Stone Veneer
PARKING SURFACE Asphalt
ROOF Flat Metal
TENANT INFORMATION SINGLE TENANT Bridgestone Retail Operations, LLC
Bridgestone/Firestone Aerial Map | 09
Bridgestone/Firestone Parcel Map | 10
Bridgestone/Firestone Property Images | 11
Bridgestone/Firestone Property Images | 12
Bridgestone/Firestone Property Images | 13
Bridgestone/Firestone | R
ent Roll
Rent Roll
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Rent Roll Details
Tenant Profile
Bridgestone/Firestone Rent Roll Details | 15
Lease Term Rental RatesSuite Tenant Name Square
Feet% of NRA Lease Start Lease End Monthly
Base RentMonthlyPSF
AnnualBase Rent
AnnualPSF
Lease Type
Bridgestone Retail Operations, LLC
8,256 100.00% 07/27/12 07/31/27
Begin Date
CURRENT $22,782 $2.76 $273,384 $33.11 NNN
Options/Notes
(5) Consecutive options for (5) years each
08/01/2022 $24,263 $2.94 $291,154Totals 8,256 $22,782 $273,384
Bridgestone/Firestone Tenant Profile | 16
Trade Name Bridgestone/FirestoneHeadquartered Tokyo, JapanWebsite www.bridgestone.com# of Locations Over 1,700
DescriptionFounded in 1931, Bridgestone Corporation (NASDAQ:"BRDCY") purchased Firestone in 1988. The combined companies are the world’s largest tire and rubber company with 143,600 employees. The operations in the Americas were renamedBridgestone/Firestone, Inc., and Bridgestone is the ultimate parent company of the tenant.
Operating income for 2017 was $3.74 billion, on revenue of $32.5 billion. Net income was $2.57 billion.
The tire segment represents approximately 83% of the revenue.
Sales of large and ultra-large OTR tires for construction and mining vehicles increased (substantially) on a global basis.
Bridgestone Retail Operations, LLC the tenant comprises the entire U.S. retail division of Bridgestone and Bridgestone/Firestone. Bridgestone/Firestone offers retail tire sales along with automotive repair services to all major automotive systems through its network of over 1,700 tire and vehicles service centers in the U.S. as the world's largest company-owned tire and automotive service network. Forbes Global 2000 listed Bridgestone #223 of Top Multinational Performers and #21 of the Top Regarded Companies.
Bridgestone Corporation has an A credit rating with S&P and a credit rating of A2 with Moody's.
Websites:www.bridgestone.comwww.firestone.com
Bridgestone/Firestone | Financial A
nalysis
Financial Analysis
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Income & Expense
Multiyear Cash Flow Assumptions
Multiyear Cash Flow Projections
Disposition Sensitivity Analysis
Bridgestone/Firestone Income & Expense Analysis | 18
CURRENT YEAR 2INCOMEGross Potential Rent $273,384 $273,384
$273,384 $273,384
$273,384 $273,384
$273,384 $273,384
Gross Potential Income
Effective Gross Income
Net Operating Income
Annual Debt Service $197,546 $197,546
Debt Coverage Ratio 1.38 1.38
$75,838 $75,838Cash Flow After Debt Service
Principal Reduction $60,391 $60,391
Total Return 11.0 % $136,229 11.0 % $136,229
REVENUE ALLOCATION
Bridgestone/Firestone Multiyear Cash Flow Assumptions | 19
GLOBALEXIT CAP RATE 6.10 %
PROPOSED FINANCINGLoan Type Fully AmortizedDown Payment $1,237,500Loan Amount $2,887,500Interest Rate 4.75 %Annual Debt Service $197,546Loan to Value 70 %
Bridgestone/Firestone Cash Flow Analysis| 20
CASH FLOWCalendar Year Year1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $273,384 $273,384 $273,384 $273,384 $280,787 $291,153 $291,153 $291,153 $291,153 $291,153Effective Gross Income $273,384 $273,384 $273,384 $273,384 $280,787 $291,153 $291,153 $291,153 $291,153 $291,153Operating ExpensesNet Operating IncomeAnnual Debt ServiceCash Flow
$273,384 $273,384 $273,384 $273,384 $280,787 $291,153 $291,153 $291,153 $291,153 $291,15$197,546 $197,546 $197,546 $197,546 $197,546 $197,546$197,546 $197,546$75,838 $75,838 $75,838 $83,241 $93,607 $93,607$75,838 $93,607
Effective Gross Income vs Operating Expenses Cash Flow
$197,546 $197,546$93,607 $93,607
Bridgestone/Firestone Cash Flow Analysis| 21
Calendar Year Year1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial Metrics
6.13 % 6.13 % 6.13 % 6.13 % 6.73 % 7.56 % 7.56 % 7.56% 7.56 % 7.56 %6.63 % 6.63 % 6.63 % 6.63 % 6.81 % 7.06% 7.06 % 7.06 % 7.06 % 7.06 %1.38 1.38 1.38 1.38 1.42 1.47 1.47 1.47 1.47 1.4770.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 % 70.00 %72.26 % 72.26 % 72.26 % 72.26% 70.35 % 67.85 % 67.85 % 67.85 % 67.85 % 67.85 %$500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Cash on Cash Return b/t CAP RateDebt Coverage Ratio Loan to Value Breakeven RatioPrice / SFIncome / SF $33 $33 $33 $33 $34 $35 $35 $35 $35 $35
Bridgestone/Firestone Disposition Sensitivity Analysis | 22
SENSITIVITY ANALYSIS 5 YEARSEXIT CAP RATE PROJECTED SALES
PRICESALES PRICE PSF IRR
5.10% $5,505,627 $667
PROCEEDS AFTER LOAN PAYOFF
$2,905,077 23.21%5.35% $5,248,355 $636 $2,647,805 21.17%5.60% $5,014,054 $607 $2,413,503 19.19%5.85% $4,799,778 $581 $2,199,227 17.24%6.10% $4,603,066 $558 $2,002,515 15.33%6.35% $4,421,843 $536 $1,821,292 13.44%6.60% $4,254,348 $515 $1,653,798 11.56%6.85% $4,099,080 $496 $1,498,530 9.70%7.10% $3,954,746 $479 $1,354,196 7.84%
SENSITIVITY ANALYSIS 10 YEARSEXIT CAP RATE PROJECTED SALES
PRICESALES PRICE PSF IRR
5.10% $5,708,882 $691
PROCEEDS AFTER LOAN PAYOFF
$3,366,765 15.10%5.35% $5,442,112 $659 $3,099,995 14.33%5.60% $5,199,161 $630 $2,857,043 13.59%5.85% $4,976,974 $603 $2,634,857 12.87%6.10% $4,773,000 $578 $2,430,883 12.16%6.35% $4,585,087 $555 $2,242,969 11.47%6.60% $4,411,409 $534 $2,069,292 10.79%6.85% $4,250,409 $515 $1,908,292 10.12%7.10% $4,100,746 $497 $1,758,629 9.46%
Bridgestone/Firestone | D
emographics
Demographics
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Demographic Details
Demographic Charts
Bridgestone/Firestone Demographics | 24
POPULATION 1 MILE 3 MILE 5 MILE
2000 Population 14,742 98,244 181,443
2010 Population 14,145 94,167 172,464
2017 Population 14,230 95,594 174,579
2022 Population 14,300 96,530 176,058
2017-2022: Population: Growth Rate 0.50 % 1.00 % 0.85 %
2017 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
less than $15,000 528 2,934 6,250
$15,000-$24,999 641 3,968 7,659
$25,000-$34,999 701 4,641 8,177
$35,000-$49,999 1,057 6,001 10,794
$50,000-$74,999 1,442 8,773 14,934
$75,000-$99,999 855 6,023 9,855
$100,000-$149,999 583 4,271 7,703
$150,000-$199,999 112 1,164 2,340
$200,000 or greater 59 588 1,299
Median HH Income $50,655 $53,129 $51,781
Average HH Income $59,767 $64,561 $64,465
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2000 Total Housing 6,369 40,291 73,982
2010 Total Households 5,968 37,898 68,389
2017 Total Households 5,978 38,362 69,013
2022 Total Households 5,999 38,679 69,487
2017 Average Household Size 2.33 2.47 2.50
2000 Owner Occupied Housing 4,421 29,093 52,467
2000 Renter Occupied Housing 1,730 9,725 18,115
2017 Owner Occupied Housing 4,014 26,683 47,307
2017 Renter Occupied Housing 1,963 11,679 21,706
2017 Vacant Housing 457 2,587 5,509
2017 Total Housing 6,435 40,949 74,522
2022 Owner Occupied Housing 4,024 26,897 47,598
2022 Renter Occupied Housing 1,975 11,782 21,889
2022 Vacant Housing 486 2,647 5,677
2022 Total Housing 6,485 41,326 75,164
2017-2022: Households: Growth Rate 0.35 % 0.80 % 0.70 %
Source: esri
Bridgestone/Firestone Demographic Charts | 25
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Household Income
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Population by Race
Bridgestone/Firestone Demographic Charts | 26
2017 Household Occupancy - 1 Mile Radius
Average Income Median Income
2017 Household Income Average and Median
Bridgestone/Firestone | A
dditional Information
Additional Information
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Future Outlook
Site Plan
Building Elevations
Bridgestone/Firestone Future Outlook | 28
Bridgestone/Firestone Site Plan | 29
Bridgestone/Firestone Building Elevations | 30
Bridgestone/Firestone
powered by CREOP
WEST HARBOR REAL ESTATE INVESTMENTS, INC 501 W. Broadway #800 San Diego, CA 92101
Contact Arjay Smith [email protected] (619) 400-4824
CA BRE# 01409954In Cooperation with Adam S. Blue
with AREA Real Estate Advisors Missouri Lic# CO00000256
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