FORTUNOFF BACKYARD STORE SALE-LEASEBACK ...

FORTUNOFF BACKYARD STORE SALE-LEASEBACK PORTFOLIO

2 NY AND 1 NJ LOCATIONS

STATEN ISLAND

CAN BE PURCHASED SEPARATELY OR AS PORTFOLIOTRUE NNN LEASE

Contact the team

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. Buyer must verify the information and bears all risk for any inaccuracies.

THE OFFERING is a sale-leaseback opportunity to purchase three Fortunoff Backyard Stores located within the New York City MSA. The subject properties are located in Woodbridge, NJ; Riverhead, NY; and Staten Island, NY. Each location offers a new 10-year true NNN lease featuring 10% increases every 5 years. The Tenant is responsible for all maintenance of the property. The Landlord pays the property taxes and is fully reimbursed by the Tenant.

THE SUBJECT PROPERTIES are located in strategic, gateway locations within core New York metro markets. The properties enjoy excellent synergy with strong neighboring tenants and are well located along major commercial corridors. Each property benefits from outstanding demographics, including dense populations and high average household incomes near $100,000.

FORTUNOFF BACKYARD STORE is an outdoor furniture and accessory retailer with 34 locations in New York, New Jersey, Connecticut, Delaware, Pennsylvania, and Florida. Fortunoff is one of the most recognizable names in the outdoor furniture industry to the consumers in the Northeast. Fortunoff is majority owned by Chair King Backyard Store, one of the largest outdoor retailers in the United States. Fortunoff offers a vast assortment of high quality patio furniture, backyard accessories, grills, umbrellas, rugs, and more.

34 LOCATIONS IN NEW YORK, NEW JERSEY, CONNECTICUT, DELAWARE, PENNSYLVANIA, AND FLORIDA

WOODBRIDGE

JOE [email protected]: 415.274.7394CA DRE# 01191110

RICHARD WEISSJULIUS M. FEINBLUM REAL ESTATE, [email protected]: 516.844.8890

NY LIC.# 30WE0850568

DAVID LUCASJULIUS M. FEINBLUM REAL ESTATE, [email protected]: 516.844.8890

NY LIC.# 40LU0891694

JULIUS M. FEINBLUM REAL ESTATE, INC.

NJ LIC.# 9483799

2

Investment Highlights

Fortunoff Backyard Store is an outdoor furniture and accessory retailer with 34 locations in New York, New Jersey, Connecticut, Delaware, Pennsylvania, and Florida. Fortunoff is majority owned by Chair King, one of the largest outdoor retailers in the United States. Fortunoff offers a vast assortment of high quality patio furniture, backyard accessories, grills, umbrellas, rugs, and more.

Chair King Backyard Store is the largest casual furniture retailer in Texas, offering the largest selection of casual furniture in the South, while maintaining over $20 million in inventory. There are currently 18 stores throughout Texas and growing. The company also operates Leisure Collections, a design showroom at the Houston Design Center.

Fortunoff is one of the most recognizable names in the outdoor furniture industry to the consumers in the Northeast. The Chair King/Fortunoff group was ranked by Casual Living Magazine as #1 in the sale of outdoor furniture in the United States among specialty retailers. In 2016, Fortunoff Backyard Store and Chair King Backyard Store generated an estimated combined $123.6 million dollars in sales.

ABOUT FORTUNOFF BACKYARD STORE

LOCATIONS IN NEW YORK, NEW JERSEY, CONNECTICUT, DELAWARE, PENNSYLVANIA, AND FLORIDA34

This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

REPRESENTATIVE INTERIOR PHOTO

3

Tenant Overview

Fortunoff was a very large, famous department store retailer in NY established in 1922. The family sold the company to a private equity firm in 2005. The private equity firm did not operate the business well, and in 2009 the family repurchased their trade name and brand name Fortunoff. In 2009, they made a deal with operating partner, Houston, Texas-based Chair King Backyard Store. Chair King Backyard Store is the largest outdoor patio retailer in TX with 18 stores. The owners of Chair King and one of the principles of Fortunoff own the Real Estate being marketed together. Following are histories on each asset: RIVERHEAD – The property in Riverhead was a Patio Retailer named Kaufman Allied. The Kaufman Allied group retired and sold the property/business to Fortunoff. Fortunoff spent a significant amount of money to bring the building up to their current standards. STATEN ISLAND – This was an acquisition of a patio retailer, Montalbanos Pool and Patio, who also retired. WOODBRIDGE – This was a location that the property owner would not put money into. The building needed a tremendous amount of work, and the only financially viable solution was for Fortunoff to purchase the property and do their own improvements. The company continues to grow and will be opening locations in PA & NJ this year.

The guarantor for these leases will be the parent entity (Furniture Concepts LLC) which operates all stores in the portfolio. Financials will be available upon receipt of a credible LOI.

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. Buyer must verify the information and bears all risk for any inaccuracies. 4

History of the Tenant & These Locations

BRONX

RIVERHEAD

ATLANTIC OCEAN

HAMPTONS

MANHATTANLONG ISLAND

NORTH FORK

STATEN ISLAND (NYC)WOODBRIDGE

BROOKLYN

JERSEY SHORE

THE SUBJECT PROPERTIES are strategically located off major highways that connect to well-known beach towns.

THE STATEN ISLAND PROPERTY services a dense New York borough with residents known for their backyard entertaining.

THE WOODBRIDGE PROPERTY is located at the gateway to the Jersey Shore, a coastal region of New Jersey that encompasses 141 miles of oceanfront along the Atlantic Ocean.

THE RIVERHEAD PROPERTY is located in a gateway community to Long Island’s famed Hamptons and North Fork beach communities at the terminus of the Long Island expressway (I-495).

QUEENS

5

Strategic Locations

Woodbridge, NJ SALE PRICE:$4,711,000

CAP RATE:$6.75%

CLICK HERE FORMORE INFO

Riverhead, NY SALE PRICE:$3,556,000

CAP RATE:$6.75%


Staten Island, NY SALE PRICE:$4,267,000

CAP RATE:$6.75%


6

Subject Properties

NOI$318,000

FORTUNOFF BACKYARD

6.75%CAP

$4,711,000PRICE

127 W KELLY ST, WOODBRIDGE, NJ 08840

• New 10-year true NNN lease featuring 10% increases every5 years

• Located along U.S. 1, a major retail corridor in Woodbridge, where average traffic counts exceed 88,000 VPD

• Neighboring tenants include Target, Nordstrom, Macy’s, Boscov’s, DICK’S Sporting Goods, Lord & Taylor, and more

• More than 316,000 people with average household incomes exceeding $106k within a 5-mile radius

LEASABLE SF13,514 SF

PRICE PSF$348.60

LEASE TYPETRUE NNN

LAND AREA1.04 ACRES

WOODBRIDGE


7

Overview

https://www.google.com/maps/place/127+W+Kelly+St,+Metuchen,+NJ+08840/@40.5490454,-74.3266133,17z/data=!3m1!4b1!4m5!3m4!1s0x89c3b66d9259deab:0x1a899fe38d52b790!8m2!3d40.5490454!4d-74.3244246

287

95

95

95

287

1

1

1

1

440

18

18

GARDEN STATE

PARKWAY

GA

RDEN

STA

TE

PARK

WAY

W KELLY

STREET

GARDEN STATE

PARKWAY

RUTGERS STATE

UNIVERSITY

MIDDLESEX COUNTY COLLEGE

HACKENSACK MERIDIAN

HEALTH HOSPITAL

HACKENSACK MERIDIAN

HEALTH HOSPITAL

DEVRY UNIVERSITY

ROBERT WOOD

JOHNSON UNIVERSITY

RUTGERS HEALTH

HOSPITAL

ST. PETER’S UNIVERSITY

HOSPITAL

GOLF COURSE

GOLF COURSE

MIDDLESEX COUNTY

GOLF COURSE

104,839 VPD

87,307 VPD

170,414 VPD

206,348 VPD

215,030 VPD

193,730 VPD

NEW YORKCITY

29 MILES


Aerial - Woodbridge, NJ

8

Retail Aerial - Woodbridge, NJ

1

MENLO AVENUEW

KELLY STREET

PARSONAGE ROAD

88,490 VPD



PRICE $4,711,000 Price Per Square Foot: $348.60

Capitalization Rate: 6.75%

Total Rentable Area (SF): 13,514

Lot Size (AC): 1.04

STABILIZED INCOME PER SQUARE FOOTScheduled Rent $23.53 $318,000

Effective Gross Income $23.53 $318,000

LESS PER SQUARE FOOTTaxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

EQUALS NET OPERATING INCOME $318,000

WOODBRIDGE

10

Income & ExpenseIncome & Expense - Woodbridge, NJ


TENANT INFO LEASE TERMS RENT SUMMARY

TENANT NAME SQ. FT. CURRENT RENT

MONTHLY RENT

YEARLY RENT

MONTHLY RENT/FT

YEARLY RENT/FT

Fortunoff Backyard Store 13,514 1 5 $318,000 $26,500 $318,000 $1.96 $23.53

Woodbridge, NJ 6 10 $29,000 $348,000 $2.15 $25.75

TOTALS: 13,514 $318,000 $26,500 $318,000 $1.96 $23.53

11

Rent RollRent Roll - Woodbridge, NJ

MENLO AVENUE

W K

ELLY

STR

EET

US

HIG

HW

AY 1

1

US

HIG

HW

AY 1

US

HIG

HW

AY 1

PARSONAGE ROAD

FORD AVENUE

FORD AVENUE

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

VETERAN’S MEMORIAL HOME

GOLDEN STATE PARKWAY

1

1

NOT A PART

88,490 VPD

10,999 VPD

194,470 VPD

12This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

13,514RENTABLE SF

1.04ACRES

12

Site PlanSite Plan - Woodbridge, NJ

POPULATION

1-MILE 3-MILES 5-MILES

2010 14,676 125,035 301,903

2018 15,081 129,515 316,303

2023 15,299 131,762 324,983

2018 HH INCOME


Average $105,277 $116,104 $106,751

Median $86,474 $88,672 $82,255 WOODBRIDGE

THE AVERAGE HOUSEHOLD INCOME WITHIN A 3-MILE RADIUS

IS OVER $116K


NEW YORK CITY(29 MILES)

WOODBRIDGE TOWNSHIP is located in Middlesex County, New Jersey approximately 30 miles southwest of Manhattan, and just west of Staten Island. Woodbridge hosts the intersection of the New Jersey Turnpike and the Garden State Parkway, the two busiest highways in the state. In 2017, Woodbridge had an estimated population of 101,965.

The Woodbridge Center, a 1.6 million square foot shopping and dining destination, draws people from throughout New Jersey and New York City.

13

Demographics - Woodbridge, NJ

NOI$240,000

FORTUNOFF BACKYARD

6.75%CAP

$3,556,000PRICE

1189 OLD COUNTRY ROAD, RIVERHEAD, NY 11901

LEASABLE SF13,645 SF

PRICE PSF$260.61

LEASE TYPETRUE NNN

LAND AREA1.01 ACRES


• Located within the retail hub of Riverhead along Old Country Road where average traffic counts exceed 30,150 VPD

• Adjacent to strong neighboring retailers including Target, Walgreens, TJ Maxx, Big Lots, and more



RIVERHEAD

14

Overview

https://www.google.com/maps/place/1189+Old+Country+Rd,+Riverhead,+NY+11901/@40.9300643,-72.682254,17z/data=!3m1!4b1!4m5!3m4!1s0x89e88ac41f8fc129:0x3732bb6ab87c315a!8m2!3d40.9300643!4d-72.6800653

495

495

27

25

25

24

24

25

25

MIDDLE COUNTRY ROAD OLD COUNTRY ROAD

SOUND AVENUE

OSBORN

AVENUE

SOUND AVENUE

MORI

CHES-R

IVER

HEAD R

OAD

QUO

GUE RIVERHEAD ROAD

27,597 VPD

CALVERTON EXECUTIVE

AIRPARK

FRANCIS S. GABRESKI AIRPORT

SUFFOLK COUNTY

COMMUNITY COLLEGE

PECONIC BAY MEDICAL

CENTER

BROOKHAVEN NATIONAL

LABORATORY

PHENIX EXPERIMENT

AT RIHC

HIGH SCHOOL

HIGH SCHOOL

GOLF COURSE

GOLF COURSE

GOLF COURSE

GOLF COURSE

GOLF COURSE

GOLF COURSE

GOLF COURSE

GOLF COURSE

GOLF COURSE

GOLF COURSE

SUFFOLK COUNTY

HIGH SCHOOLMIDDLE SCHOOL

ELEMENTARY SCHOOL

16,300 VPD

15,500 VPD

23,439 VPD

15,492 VPD

43,260 VPD

NEW YORK CITY

80 MILES

15

Aerial - Riverhead, NY


Retail Aerial - Riverhead, NY

30,150 VPD

OLD COUNTRY ROAD


HARRISON AVENUE

16





Lot Size (AC): 1.01




Insurance NNN $0.00



RIVERHEAD - SURROUNDING RETAIL

17

Income & ExpenseIncome & Expense - Riverhead, NY




MONTHLY RENT

YEARLY RENT

MONTHLY RENT/FT

YEARLY RENT/FT


Riverhead, NY 6 10 $22,000 $264,000 $1.61 $19.35

TOTALS: 13,645 $240,000 $20,000 $240,000 $1.47 $17.59

18

Rent RollRent Roll - Riverhead, NY

OLD COUNTRY ROAD

OLD

CO

UN

TRY

ROA

DO

LD C

OU

NTR

Y RO

AD H

ARRISO

N AV

ENU

E

HARRISON AVENUE

PULASKI STREET

HARRISON AVENUE

ROANOKE AVENUE

OSBORN AVENUE

PYLON SIGN

NOT A PART

9,924 VPD

3,625 VPD

30,150 VPD

5,102VPD

MIDDLE SCHOOL

HIGH SCHOOL


13,645RENTABLE SF

1.01ACRES

19

Site PlanSite Plan - Riverhead, NY

POPULATION


2010 4,659 21,390 32,013

2018 4,576 22,569 33,831

2023 4,549 23,052 34,622

2018 HH INCOME


Average $82,831 $86,672 $94,661

Median $56,996 $59,329 $70,353

RIVERHEAD


IS OVER $94K


NEW YORKCITY(80 MILES)

RIVERHEAD, NY is located in Suffolk County on the northern shore of Long Island, approximately 80 miles northwest of Manhattan. Suffolk County is one of New York State’s most important farming regions with soil and weather conditions ideal for more than 100 crops, including wine grapes.

LONG ISLAND has long provided an escape from the big city, offering miles of beaches, historic sites, quaint villages, wine country and the famed Hamptons. The Island is easily accessible via the Long Island Expressway, the Long Island Rail Road, and from three major airports; JFK, LaGuardia, and Long Island Islip MacArthur Airport.

20

Demographics - Riverhead, NY

NOI$288,000

FORTUNOFF BACKYARD

6.75%CAP

$4,267,000PRICE

2075 RICHMOND AVE, STATEN ISLAND, NY 10314

LEASABLE SF9,400 SF

PRICE PSF$453.94

LEASE TYPETRUE NNN

LAND AREA0.49 ACRES


• High visibility along Richmond Avenue where average traffic counts exceed 44,594 VPD

• Strong neighboring retailers include Trader Joe’s, Target, Costco, Macy’s, and DICK’S Sporting Goods

• Located 3 minutes from CUNY College of Staten Island, home to over 9,585 students


STATEN ISLAND


21

Overview

https://www.google.com/maps/place/2075+Richmond+Ave,+Staten+Island,+NY+10314/@40.5969766,-74.1640311,17z/data=!3m1!4b1!4m5!3m4!1s0x89c24c65d41dc143:0xe4d473cecc288714!8m2!3d40.5969766!4d-74.1618424

95

95

95

278

278

440

440

RIC

HM

ON

D

AVEN

UE

RICHM

OND

AVENUE

NEWARK LIBERTY

INTL AIRPORT

NJ MEDCARE

UNION COUNTY COLLEGE

CUNY COLLEGE

OF STATEN ISLAND

EMPIRE STATE

COLLEGE

WAGNER COLLEGEBROOKLYN

COLLEGE

KEAN UNIVERSITY

RICHMOND UNIVERSITY

MEDICAL CENTER

BAYONNE MEDICAL CENTER

STATEN ISLAND

UNIVERSITY HOSPITAL

STATEN ISLAND

UNIVERSITY HOSPITAL

STATEN ISLAND

UNIVERSITY HOSPITAL

RICHMOND UNIVERSITY

MEDICAL CENTER

GOLF COURSE

GOLF COURSE

GOLF COURSE

GOLF COURSE

LINDEN AIRPORT

131,926 VPD

269,326 VPD

MANHATTAN25 MILES

24,303 VPD

142,609 VPD

52,000 VPD

92,784 VPD

247,728 VPD


22

Aerial - Staten Island, NY

Retail Aerial - Staten Island, NY

52,000 VPD

RICHM

ON

D AVEN

UE

MEDICALOFFICE

MIDDLESCHOOL

ELEMENTARYSCHOOL






Lot Size (AC): 0.49




Insurance NNN $0.00



STATEN ISLANDIncome & Expense - Staten Island, NY

24

Income & Expense




MONTHLY RENT

YEARLY RENT

MONTHLY RENT/FT

YEARLYRENT/FT


Staten Island, NY 6 10 $26,400 $316,800 $2.81 $33.70

TOTALS: 9,400 $288,000 $24,000 $288,000 $2.55 $30.64

Rent Roll - Staten Island, NY

25

Rent Roll

RICHMOND AVENUE

PYLON SIGN

44,594 VPD

16,471VPD

14,549 VPD

RICHMOND AVENUE ROCKLAND AVENUE

RICHMOND HILL ROAD

CUNY COLLEGE OF STATEN

ISLAND

MIDDLE SCHOOL

HIGH SCHOOL

GOLF COURSE

Site Plan


9,400RENTABLE SF

0.49ACRES

Site Plan - Staten Island, NY

26

Site Plan

STATEN ISLAND (NYC)


IS OVER $105K


STATEN ISLAND, NY is one of five boroughs that comprise the city of New York. Located across the harbor from Brooklyn and Manhattan, Staten Island is easily reachable via the Staten Island Ferry, the Verrazzano-Narrows Bridge from Brooklyn, and three bridges connecting the island to New Jersey.

Staten Island is renowned for its museums, historic landmarks, beaches and parkland — including New York City’s largest forest preserve in the Staten Island Greenbelt. The Island offers small town living while being part of one of the world’s largest cities.

BROOKLYN(17 MILES)

MANHATTAN(25 MILES)POPULATION


2010 25,129 173,151 518,395

2018 26,049 178,608 537,076

2023 26,722 182,406 550,166

2018 HH INCOME


Average $104,161 $105,391 $98,008

Median $86,489 $85,453 $76,553

27

Demographics - Staten Island, NY

We’d love to hearfrom you.


JOE CACCAMOJOHN ANDREINI

ZANDY SMITH

DAVE LUCAS

RICK SANNER

CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS

JACK NAVARRAJUSTIN SHARP

JUSTIN STARK

CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:

JOE [email protected]: 415.274.7394CA DRE# 01191110

RICHARD WEISSJULIUS M. FEINBLUM REAL ESTATE, INC.

[email protected]

PH: 516.844.8890

NY LIC.# 30WE0850568

DAVID LUCASJULIUS M. FEINBLUM REAL ESTATE, INC.

[email protected]

PH: 516.844.8890

NY LIC.# 40LU0891694

JULIUS M. FEINBLUM REAL ESTATE, INC.

NJ LIC.# 9483799

https://capitalpacific.com/team/

Copyright © 2019 Capital Pacific Partners

SFO. PDX. SEA. CAPITALPACIFIC.COM

STATEN ISLAND

https://www.capitalpacific.com/

FORTUNOFF BACKYARD STORE SALE-LEASEBACK ...

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