Seminary Square - New Construction Kohl’s Anchored Center For investment information: J. Tyson Glasser, CCIM • Investment Sales Director [email protected] • 864.263.5427 o • 404.435.6312 c 2470-2474 Veterans Drive, Galesburg, IL 61401 · 4.60 Acres · 48,825 SF · $8,010,000 · 6.90% Cap Rate
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Seminary Square New Construction Kohl’s Anchored Center · 2017-07-12 · . Market Profile Galesburg & Knox County Economy The City works cooperatively with the Knox County Area
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Seminary Square - New Construction Kohl’s Anchored Center
For investment information:J. Tyson Glasser, CCIM • Investment Sales [email protected] • 864.263.5427 o • 404.435.6312 c
2470-2474 Veterans Drive, Galesburg, IL 61401 · 4.60 Acres · 48,825 SF · $8,010,000 · 6.90% Cap Rate
Table of Contents
Property Cover...............................................1 Table of Contents..........................................2 Investment Highlights.................................3 Aerial..................................................................4 Site Plan............................................................5 Rent Roll & Cash Flow..................................6 Tenant Profiles................................................7 Market Profile..............................................8-9 Demographics.......................................10-12 Contact Information..................................13
• 2016 class A construction in the new development area of the market and 100% leased to 3 national credit tenants
• Long term corporate leases with various rent bumps and multiple renewal options
• Minimal property management with Kohl’s responsible for CAM
• Anchored by Kohl’s (NYSE: KSS, S&P: BBB-) and shadow anchored by Walmart, Menards, Galesburg Toyota
• Located 2.5 miles from downtown Galesburg and 2 miles west of I-74
• Directly across US Hwy 34 from St. Mary Medical Center, a 99-bed acute care hospital serving a 7 county region
• Galesburg is the county seat of Knox County and home to Carl Sandburg and Knox Colleges totaling about 4,800 students
Investment Highlights
Aerial
Site Plan
E
Rent Roll & Cash Flow
2017 Cash Flow
Base Rents $563,912.50Reimbursements $148,916.25Administrative Fees $0.00Total Income $712,828.75Vacancy Factor (0%) $0.00Effective Income $712,828.75CAM/Taxes/Insurance ($3.05) $148,916.25Management Fee (2% of Base Rents) $11,278.25Total Expenses $160,194.50Net Income $552,634.25
Suite Tenant Square Feet
Lease Start
LeaseEnd
Rent PSF Annual Rent Rent Bumps CAM/Tax/
InsuranceAdmin.
FeeOptions
(5 years each)
2470Kohl’s Illinois, Inc.
(Kohl’s Department Stores, Inc. guaranty)
36,325 5/24/16 1/31/32 $10.50 $381,412.50 10% Every 5 Years NNN(See Note 1) 0%
2474 Shoe Carnival, Inc. 5,000 10/17/16 11/30/26 $14.00 $70,000.00 $1.00 PSF in Year 6 NNN 0%Option 1: $16.00Option 2: $17.00Option 3: $18.00
TOTALS 48,825 $563,912.50
Notes: 1) Kohl’s is responsible for 100% of shopping center CAM. Landlord pays Kohl’s $12,500/year for CAM expenses which increases 3% annually.
Tenant Profiles
Pet Supplies Plus was founded in 1988 in Redford, Michigan by Harry Shallop and Jack Berry. It is a privately held pet supply retailing corporation with a major presence in the US. As of 2005, it was the third largest specialty pet food retailer in the US. The company began adding franchise locations in the Midwest, expanding into the northeastern and southern states during the late 1990s. In 2015, Pet Supplies Plus store locations consisted of over 325 stores in 25 states measuring about 10,000 square feet. Within five years after opening the first store, the founders had opened stores in 30 more locations. Not long after, the two were joined by a third partner, Harvey Solway. In September, 2010, the firm was sold to Irving Place Capital, a private equity group. Day-to-day operations continue to be run by the management team in place before the sale and the company’s top managers continue to own a share in the company, while many of the stores are independently owned franchised sites. www.PetSuppliesPlus.com
“At Kohl’s, our purpose is to inspire and empower families to lead fulfilled lives.” Kohl’s Corporation, d.b.a. Kohl’s, is an American department store retail chain. Headquartered in Menomonee Falls, WIsconsin (a suburb of Milwaukee), it operates over 1,162 stores in 49 states. The first Kohl’s store was a supermarket founded by Maxwell Kohl in Milwaukee in 1946. The company’s first department store opened in September 1962. British-American Tobacco Company took a controlling interest in the company in 1972 and in 1979 the Kohl family left the management of the company. A group of investors purchased the company in 1986 from British-American Tobacco and took it public in 1992. Kohl’s is America’s largest department store chain by the number of stores as of February 2013—surpassing its biggest competitor, J.C. Penney in May 2012. The chain was the 20th-largest retailer in the United States in 2013 in terms of revenue. As of 2013, Kohl’s is the second largest U.S. department store company by retail sales. www.Kohls.com
Shoe Carnival is a retailer of family footwear in the United States. The company operates over 370 stores throughout the Midwest, South, and Southeast regions. It was founded by David Russell in 1978 and is headquartered in Evansville, IN. The company’s majority owner is J. Wayne Weaver, former owner of the Jacksonville Jaguars. SThe main difference in Shoe Carnival stores is its concept. The Shoe Carnival Concept is creating an urgency to buy through limited time promotions and the microphone. In 2006 the company began construction on a $40 million corporate headquarters and distribution center. In 2007, the retailer announced record sales and plans to open 25 additional stores. In 2011, the company announced that it would be offering online shopping to customers. www.shoecarnival.com
Market ProfileGalesburg & Knox County
Economy
The City works cooperatively with the Knox County Area Partnership for Economic Development to position Galesburg for economic growth and prosperity. Why Knox County? Strategic Assets - Transportation infrastructure, strong educational institutions and a robust water supply are just a few of the Knox County Area’s competitive advantages. A Pro-Business Community - We’ve cut the red tape and can get your project up and running faster than our competitors. Midwest Pride - Hard work is in our DNA. Come see why our Midwest work ethic beats out other regions for productivity and value. (Sources - Galesburg, IL and Knox County Websites)
Healthcare
OSF St. Mary’s Medical Center - Dedicated to providing the very best care for each and every patient and family member who chooses us for their care. OSF St. Mary has been a cornerstone of the Galesburg community since 1909. OSF St. Mary serves a seven county area in west central Illinois including Knox, Warren, Henry, Mercer, Henderson, McDonough and Fulton counties. Since the doors first opened, the Mission has been to provide patient-focused care that exemplifies individuality and hospitality for all we serve. OSF St. Mary Medical Center is a 99-bed acute care hospital providing state-of-the-art therapeutic, diagnostic, medical and surgical support. Additionally, it is a 24-hour Level II Trauma Center which ensures the community has the access to intensive emergency medical services and board-certified emergency medical physicians. Galesburg Cottage Hospital - a 173 bed facility that provides complete inpatient, outpatient and emergency care. Galesburg Cottage Hospital has received The Joint Commission seal of accreditation and is the only hospital in westcentral Illinois to have been named a Top Performer, and is the only western Illinois hospital to be accredited by the Society of Cardiovascular Patient Care as a Chest Pain Center. Our Level II Trauma Emergency Department is approved for pediatrics by the State of Illinois and is also a Primary Stroke Center as certified by The Joint Commission. With over 70 medical staff members representing a cross section of specialties, Galesburg Cottage Hospital has the area’s only Wound Healing Center with hyperbaric oxygen chambers, Surgical Weight Loss Center, a hospital- based skilled care unit, an OB unit with private birthing suites and a renal dialysis center among other specialized services. Galesburg Cottage Hospital is celebrating more than 120 years of caring service to Western Illinois residents.
Market ProfileEducation
Knox College - Founded in 1837. Over 1,400 students attend Knox College. It is a community of individuals from diverse backgrounds challenging each other to explore, understand and improve ourselves, our society and our world. The commitment to put learning to use to accomplish both personal and social goals dates back to the founding of the College in 1837. We take particular pride in the College’s early commitment to increase access to all qualified students of varied backgrounds, races and conditions, regardless of financial means.
Carl Sandburg College - Established by authority of the Illinois Community College Act of 1965 and was approved by voters in a September 1966 referendum. One year later, in September 1967 classes were first held. The college now enrolls over 3,300 Students.37% of college-bound students in the district attend Sandburg. Average class size is 16 students. The average age of students at Sandburg is 30. Students most commonly describe Sandburg as comfortable, reasonably priced, academic & career oriented.
Transportation
Rail action 01Rail: 7 class-1 rail lines enter Galesburg and converge at the BNSF classification yard in Southeast Galesburg. Strategic grade separations within the city allow trains to get in and out of the city quickly and easily without disrupting local automobile traffic. Over 100 trains enter and leave the community each day.
Interstate: The Knox County Area is served by Interstate 74 running from Indianapolis and the Quad Cities and by Interstate 80 connecting Des Moines and Chicago, In addition, US-34 serves the area as well as US-150.
Air Service: Galesburg is conveniently located approximately 45 minutes from both Peoria International Airport and Quad Cities International Airport. Residents and businesses can connect with direct flights to more than a dozen cities through these two airports.
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Investment Contacts:
J. Tyson Glasser, CCIMInvestment Sales [email protected] o • 404.435.6312 c
550 S. Main Street, Suite 300 • Greenville, SC 29601864.242.4008 p • 864.232.0160 f • www.REALTYLINKDEV.com