Starbucks, Mattress King, Zoës Kitchen 1130 Woodruff Road, Greenville, SC 29607 For investment information: J. Tyson Glasser, CCIM • Investment Sales Director [email protected] • 864.263.5427 o • 404.435.6312 c 11,061 Square Feet $5,525,000 6.45% Cap Rate
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Starbucks, Mattress King, Zoës Kitchen...The company offers its products under the Starbucks, Tazo tea, Seattle’s Best Coffee, Starbucks VIA Ready Brew, Starbucks Refreshers, Evolution
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Area Overview Trade Area Photos........................................................11-13 Location Map.......................................................................14 Market Profile................................................................15-16 Demographics.............................................................17 -20
Table of Contents Investment OverviewLocation: Upstate South Carolina at the intersection of I-85 and SC Hwy 146 (Woodruff Road) about 7 miles from downtown Greenville and 7 miles from Greenville-Spartanburg International Airport
Land Size: +/- 1.13 Acres
Building Size: +/- 11,061 Square Feet
Building Age: New construction completed in December 2013
Occupancy: 100% leased to 3 tenants
Tenant Lineup: Mattress King 6,501 SF 58.8%
Zoës Kitchen 2,770 SF 25.0%
Starbucks 1,790 SF 16.2%
11,061 SF 100%
Guarantors: All corporate (See Rent Roll for more details)
Lease Types: Triple Net with minimal Landlord obligations
Lease Commencement: October 2013 - January 2014 (See Rent Roll for details)
Base Lease Terms: 7-10 years (See Rent Roll for details)
Option Terms: 2-4 for 5-7 years each (See Rent Roll for details)
Landlord Responsibility: CAM/Tax/Insurance billing, Roof/Structure/Parking Lot
Administrative Fees: $912.01 (10% of CAM for Starbucks and Mattress King)
Gross Potential Income: $432,721.66 (estimated Year 2)
Vacancy Factor: $12,981.65 (3% of GPI)
Expenses: CAM, Taxes, Insurance estimated at $5.65 PSF in Year 2 ($62,494.65)
Management Fee: Included in CAM expenses
Capital Reserves: $1,106.10 ($0.10 PSF)
Net Operating Income: $356,139.26 (projected Year 2)
Assumable Financing: Property delivered free and clear of debt at close of escrow
Proposed Financing: 65-70% loan-to-value ($1.65-1.95M down payment)
7-10 year term
20-25 year amortization
4.25-4.50% interest rate
$233,462.03 annual debt service (using 65% LTV, 25 year amortization, 4.25% interest)
$122,677.23 after debt cash flow (years 1-5)
6.35% cash-on-cash return (years 1-5)
Tenant Financials: Available online or from broker after
execution of a confidentiality agreement
Rent Roll
Notes
1. Starbucks can terminate anytime after 5 years with 180 days notice and payment of a termination fee (amortized balance of leasing commission plus tenant improvement allowance).2. Starbucks year 1 CAM capped at $1.75 PSF with 5% annual increase caps (all tenants have 5% annual increase caps).3. Sleepy’s, LLC owns Mattress Discounters Operations, LLC and is responsible for the lease. Store and lease name will change to Sleepy’s once they open a distribution center to serve the SC market. 4. Zoes Kitchen lease guaranteed by Zoes Kitchen USA, LLC
6,501 12/19/13 11/30/20 $31.50 $204,750.00 None NNN 10% of CAM
Option 1: $34.65Option 2: $38.11
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Property Photos
Property Photos
To Atlanta150 miles
To Charlotte100 miles
To Downtown Greenville6 miles
To Atlanta150 miles
To Columbia100 miles
Downtown Greenville
Tenant OverviewStarbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. According to its annual report, Starbucks will have over 20,000 retail stores on 6 continents by the end of 2014. Its stores offer regular and decaffeinated coffee beverages, Italian-style espresso beverages, cold blended beverages, iced shaken refreshment beverages, premium Tazo teas, packaged roasted whole bean and ground coffees, Starbucks VIA Ready Brew soluble coffees, Starbucks coffee and Tazo tea K-Cup portion packs, Starbucks Refreshers beverages, juices, and bottled water. The company’s stores also provide various food items, including pastries, prepared breakfast and lunch sandwiches, oatmeal, and salads. In addition, it licenses the rights to produce and distribute Starbucks branded products to The North American Coffee Partnership with the Pepsi-Cola Company, as well as licenses its trademarks through licensed stores, grocery, and national foodservice accounts. The company offers its products under the Starbucks, Tazo tea, Seattle’s Best Coffee, Starbucks VIA Ready Brew, Starbucks Refreshers, Evolution Fresh, La Boulange, and Verismo brand names. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington. Starbucks is traded on NASDAQ as SBUX. www.starbucks.com
Zoës Kitchen is a fast casual restaurant chain headquartered in Birmingham, Alabama, United States. Serving a menu of variety of chicken salad, pasta salad, pitas and grilled chicken sandwiches, the chain has grown to include 71 locations across 12 states with plans to expand further. Zoës’ menu features Mediterranean-inspired comfort food with made-from-scratch recipes using fresh ingredients.
Zoës Kitchen is a natural extension of Zoë Cassimus’ lifetime of cooking for family and friends. Inspired by Zoë’s original recipes and her simple, fresh-from-the-garden sensibility, we start every day by making the food from scratch onsite at each restaurant. Our dishes are wholesome; our portions generous. It’s Mediterranean-inspired comfort food with customers’ dietary concerns in mind--nothing fried with gluten-free and vegetarian options. Zoë means “life” in Greek. Why not live it to the fullest with tasty food shared among close friends and family? www.zoeskitchen.com
Sleepy’s®, The Mattress Professionals® is a privately-owned fourth-generation company with over 900 retail locations in seventeen states, spanning from Maine to South Carolina and available nationally through www.sleepys.com. Sleepy’s has 7 state-of-the-art distribution centers located throughout the country and delivers over 3,000 mattresses every day. Throughout Sleepy’s 55-year history, the company has remained committed to improving lives through better sleep with its extensive selection of America’s top brands, including Sealy Posturepedic, Simmons Beautyrest, Stearns & Foster and more. Their innovative sleep products include the latest in cooling gel, latex and memory foam mattresses, like the world-famous Tempur-Pedic. Sleepy’s fast delivery service ensures you won’t have to wait to get a better night’s sleep, and their knowledgeable mattress professionals will guide you to your perfect mattress. Sleepy’s is nationally accessible through Sleepys.com. Sleepy’s – Everything is possible with a great night’s sleep.® www.sleepys.com
Trade Area Photos
Trade Area PhotosTrade Area Photos
Trade Area Photos
Location Map
Market Profile
Greenville is located in the Piedmont region of South Carolina in the foothills of the Blue Ridge Mountains. The area, commonly referred to as the Upstate, includes Greenville, Spartanburg, Anderson, Pickens and Cherokee counties and the cities of Anderson, Clemson, Greenville, Simpsonville, Greer and Spartanburg.
Economy
Home to internationally recognized industries, Greenville is the economic center of the Upstate. Greenville’s ability to attract both small local companies and major international corporations is the result of an uncommon cooperation between city government and the private sector. Recognized as a leader in developing public/private partnerships, Greenville’s entrepreneurial spirit and strong workforce creates an incredible magnet for business. In addition, Greenville is located in the heart of a right-to-work state and a foreign trade zone.
With more than 250 international firms, the Upstate boasts the highest international investment per capita in the nation. Greenville is home to such national and international corporations as Fluor and Hubbell Lighting - with BMW and Michelin North America located nearby.
Transportation
Strategically situated along the mega-growth I-85 corridor between Atlanta, GA, and Charlotte, NC, Greenville is easily accessible via air, road and rail. Greenville is located 100 miles from the capitol city of Columbia and only 200 miles from the Port City of Charleston. Greenlink is the Greenville area public transportation service. Greenlink offers 11 fixed routes to destinations all across Greenville County. All Greenlink buses are wheelchair accessible, and each Greenlink bus is equipped with a bike rack to make commuting easier for bike riders. The Greenlink system
also features GAP, a complimentary ADA paratransit service provided for individuals who, because of their disability, are unable to use Greenlink’s fixed route bus service. The City entered into a partnership with the Greenville Drive Baseball Team to make the trolleys available to the public. The Greenville Drive owns the two trolleys, and the City operates and maintains them. Best of all, downtown trolley service is provided to all free of charge. Whenever there is a home game or special event for the Greenville Drive Baseball Team the trolleys will carry fans between County Square and West End Field. The trolleys start carrying fans 2 hours before the game and will continue carrying fan until one and a half hours after the game or special event.
Market Profile
Market ProfileEducation
Greenville County has the largest school district in South Carolina, and it is the 47th largest school system in the United States. Greenville is home to the International Baccalaureate Program, the South Carolina Governor’s School for the Arts, and the Roper Mountain Science Center. Eight magnet academies offer unique educational opportunities at the elementary, middle, and high school levels. Each academy offers distinct programs in foreign language, communication arts, pre-engineering and health professions, international studies, science and technology, or year-round education. Greenville also has a number of highly accredited private schools. Christ Church Episcopal is an independent, Episcopal, co-ed day school serving more than 950 students in grades Primer - 12. It is one of only five schools in North America to offer an International Baccalaureate Program curriculum in grades K-12. There are numerous colleges and universities in the Greenville Area: Bob Jones University, Clemson University, Converse College, Furman University, Greenville Technical College, North Greenville University, Southern Wesleyan University, University of SC-Spartanburg, Virginia College - Greenville Campus, Webster University, and Wofford College.
Healthcare
Greenville Health System (GHS) is a public not-for-profit academic healthcare delivery system committed to medical excellence through clinical care, education and research. The organization is governed by a volunteer board made up of 12 members representing Greenville County, as well as two seats that are outside the county. Our Mission: Heal compassionately. Teach innovatively. Improve constantly. Our Vision: Transform health care for the benefit of the people and communities we serve. Our Values: Together we serve with integrity, respect, trust and openness. GHS first opened its doors as City Hospital back in 1912. Over the last 100 years, the organization has evolved from a single free-standing hospital to a highly integrated delivery system and now an academic medical center. In that time, GHS has become the state’s largest not-for-profit healthcare system and an advocate for healthy living initiatives, such as LiveWell Greenville, the GHS Swamp Rabbit Trail and Greenville B-cycle, the city’s new bike share program. We are a health resource for our community and a leader in
transforming the delivery of health care for the benefit of the people and communities we serve. GHS’ commitment to medical education has also advanced over the years, most notably with the recent opening of the University of South Carolina School of Medicine Greenville on GHS’ Greenville Memorial Medical Campus. This new medical school is focused on transforming healthcare delivery by training physicians to connect with communities, patients, colleagues and technology in a new, more progressive way.
Demographic and Income Profile1130 Woodruff Rd, Greenville, South Carolina, 29607Ring: 3 mile radius Latitude: 34.83035
Longitude: -82.30509
Summary Census 2010 2014 2019Population 41,165 45,237 49,994Households 18,706 20,557 22,707Families 10,810 11,764 12,875Average Household Size 2.17 2.18 2.18Owner Occupied Housing Units 10,480 11,252 12,490Renter Occupied Housing Units 8,226 9,304 10,217Median Age 38.4 39.3 40.0
Trends: 2014 - 2019 Annual Rate Area State NationalPopulation 2.02% 1.01% 0.73%Households 2.01% 1.07% 0.75%Families 1.82% 0.93% 0.66%Owner HHs 2.11% 1.05% 0.69%Median Household Income 2.63% 2.91% 2.74%
2014 2019 Households by Income Number Percent Number Percent
2015 RealtyLink, LLC, We have obtained the contained information from sources we believe are reliable. We have not however verified that all information is accurate and make no guarantee, warranty or representation of it. The information is subject to the posibility of errors, ommissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice, and it is not a substitute for a thorough due diligence investigation. We include opinions, projections, estimations and assumptions for example purposes only. This information may not represent current or future performance of the property. Seek legal advise and conduct due diligence if exact numbers are desired.
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Investment Contacts:
Jack Jamison, Broker-In-Charge550 S. Main Street, Suite 300 • Greenville, SC 29601864.263.5414 o • 864.232.0160 c • www.REALTYLINKDEV.com
J. Tyson Glasser, CCIM • Investment Sales [email protected] • 864.263.5427 o • 404.435.6312 c