JASPER SQUARE RETAIL PLAZA - LoopNet · operated 376 stores in 32 states and Puerto Rico and offered online shopping at . The company operates stores throughout the midwest, south,

JASPER SQUARE RETAIL PLAZA

J a s p e r , A l a b a m a

O FFER ING M EMORANDUM

Newly Constructed TJ Maxx & Hobby Lobby Anchored Power Center In Birmingham, AL MSA

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FINANCIAL SUMMARY

Valuation: $12,087,170

Price/SF: $121.57

Terms: All Cash

Net Rentable Area: 99,424 SF

Parcel Size:

Parking

12.20 Acres

Ample Parking

Year Built: 2014

Occupancy: 100%

INCOME

*Current Net Operating Income: $785,665

*Current CAP Rate: 6.50%

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Florida.

FINANCIAL SUMMARY

*Based on analysis start date of April 1, 2015

Direct Capitalization Value Summary

For Months (1 - 72) Year 1 Total ___________

Potential Gross Revenue Base Rental Revenue $785,666

___________ Scheduled Base Rental Revenue 785,666

Projected Expense Reimbursement Revenue Real Estate Tax 54,829 Insurance 13,187 CAM 55,530

___________ Total Reimbursement Revenue 123,546

___________ Total Potential Gross Revenue 909,212

___________ Effective Gross Revenue 909,212

___________ Projected Operating Expenses

Real Estate Tax 54,830 Insurance 13,187 CAM 55,530

___________ Total Operating Expenses 123,547

___________ Net Operating Income 785,665

Capitalization Rate 6.50% Capitalized Value $12,087,170

Year 6 Total ** ___________

$846,984 ___________

846,984

61,746 14,851 62,536

___________ 139,133

___________ 986,117

___________ 986,117

___________

61,746 14,851 62,536

___________ 139,133

___________ 846,984

7.00% $12,087,170

*** Year 6 operating pass-thru expenses inflated 2% annually

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RENT ROLL

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TENANT SUMMARY

Hobby Lobby is a chain of retail arts and crafts stores based in Oklahoma City, Oklahoma, formerly called Hobby Lobby Creative Centers. It's average store is 55,000 square feet and offers more than 67,000 crafting and home decor products. Hobby Lobby is listed as a major private corporation in Forbes and Fortune's list of America's largest private companies. As of2014 the company carries no long-term debt. The company operates in 45 states, China, Hong Kong, and the Philippines. The #3 craft and fabric retailer (behind Michaels Stores and Jo-Ann Stores) boasts sister companies: Mardel, a seller of Christian and educational products, and Hemispheres, a supplier of home furnishings and other merchandise to Hobby Lobby stores.

T.J. Maxx was founded in 1976, and together with Marshalls, forms The Marmaxx Group, the largest off-price retailer of apparel and home fashions in the U.S. T.J. Maxx offers an ever-fresh array of fashionable, brand name family apparel, home fashions and other merchandise, such as beauty products. T.J. Maxx differentiates itself from Marshalls with an expanded assortment of fine jewelry and accessories, and in some stores, The Runway, a high-end designer department. T.J. Maxx continues to have significant store growth opportunities in markets across the U.S., enhanced by broadening customer reach by appealing to a wider demographic.

The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide, ranking No. 108 in the most recent Fortune 500 listings. With nearly $27.4 billion in revenues in 2013, more than 3,200 stores in six countries and approximately 191,000 employees, TJX is a global, off-price value retailer. TJX Companies currently boasts an S&P credit rating of A+, a market capitalization of $33 Billion, and is listed on the NYSE under the ticker "TJX".

Shoe Carnival (NASDAQ: SCVL) is a retailer of family footwear in the United States. As of February 1, 2014, the company operated 376 stores in 32 states and Puerto Rico and offered online shopping at www.shoecarnival.com. The company operates stores throughout the midwest, south, and southeast regions of the United States. Shoe Carnival sells men's, women's, children's, and athletic footwear through its retail stores. Its stores also offer accessories such as handbags, wallets, shoe care items, and socks. It differentiates itself from competitors with distinctive, highly promotional marketing efforts. Shoe Carnival utilizes limited time promotions and in-store announcements designed to encourage customers to make a purchase.

Petco is a leading specialty retailer of premium pet food, supplies, services and companion animals. Founded in 1965, Petco now operates more than 1,200 locations throughout the United States, offering more than 10,000 different pet-related products for dogs, cats, fish, reptiles, amphibians, birds and small animals as well as complete pet care and services. Petco became a publicly traded company in 1994 but subsequently was acquired by private equity groups and today remains a privately held company with headquarters in San Diego, California. Petco owns the naming rights to the Petco Park baseball stadium, home to the San Diego Padres.

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Marcus and Millichap is pleased to present Jasper Square (the “Property), a newly constructed retail shopping plaza located in the City of Jasper, Alabama (Birmingham MSA). The Property is comprised of two structures, a 44,424 square foot in-line structure that is 100% occupied by TJ Maxx (parent TJX Companies carries an S&P credit rating of A+), Petco and Shoe Carnival, and a 55,000 square foot freestanding single-tenant structure occupied by Hobby Lobby, a national retail arts and crafts chain recognized by Forbes as one of the largest private companies in America. TJ Maxx and Shoe Carnival opened in Summer 2014 and are experiencing strong initial store sales. Hobby Lobby opened with much local excitement in late September 2014 and Petco is scheduled to open in early 2015.

Located between the two buildings is a vacant parcel that provides a buyer the potential opportunity to add-value by developing additional retail space up to approximately 20,000 sf. This is a value-add component that could provide an investor the opportunity to increase the NOI on this otherwise extremely stable asset. All tenants have rent increases every five years. Over the course of the initial five years, the rental income increases from $785,666 to $846,984 which is a 7.8% increase.

The Property is immediately adjacent to several credit tenants including a McDonald's restaurant located at the entrance to the center which is being remodeled to a modern proto-type that will include a double drive-thru. Included in Jasper Square's cash flow is a recently renewed ground lease to McDonald's Corp for continued use of 4,725 square feet of land occupied by parking spaces adjacent to its restaurant structure. Major national retailers within a 1 mile radius of Jasper Square include Walgreens, CVS, Burger King, Belk, Home Depot, Walmart, Dollar Tree, Advance Auto Parts, O'Reilly Auto Parts, Sherwin Williams, Verizon, and AT&T.

EXECUTIVE SUMMARY

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OFFERING SUMMARY

714 US Highway 78

Jasper, AL 35501

$12,087,170

$121.57

2014

99,424 SF

12.20 Acres

100%

Ample Parking

Address

Offering Price

Price per SF

Year Constructed

Net Rentable Area

Parcel Size

Percent Leased

Parking

Cap Rate 6.5%

Investment Highlights

• Newly Constructed Power Center 100% Occupied By TJ Maxx, HobbyLobby, Petco and Shoe Carnival

• Property Fronts On Major Thoroughfare Lined By Many NationalRetailers

• Potential Opportunity to Add Value By Developing Up to Approximately20,000 SF of Additional Retail Space

• Major National Retailers Within 1 Mile Radius Include: Walgreens, CVS,Burger King, Belk, Home Depot, Walmart and Dollar Tree, Among Others

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Location Overview EXECUTIVE SUMMARY


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• All Tenants have Rent Increases every Five Years

DestinationsDistance (miles)

Travel Time

Downtown Jasper 1 5 mins

Interstate 22 5 8 mins

Interstate 65 30 37 mins

Downtown Birmingham 40 40 mins

Montgomery 120 2 hours

Jasper Square, located in Jasper, Alabama (Birmingham MSA), fronts the area’s main thoroughfare (US Highway 78) which provides direct access to Interstate 22 to the west. Interstate 22 is a major new interstate that will connect Birmingham and Memphis, TN.

LOCATION OVERVIEW

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Location Overview EXECUTIVE SUMMARY


Jasper Square

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PROPERTY OVERVIEW

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PROPERTY OVERVIEW

Site Description Property Overview

Address 714 US Highway 78 Jasper, AL 35501

Walker

99,424 SF

100%

County

Net Rentable Area

Percent Leased

Year Constructed

Land Area

Frontage

Parking

2014

12.20 Acres US

Highway 78

Ample Parking

Area Demographics Population 3 Mile 5 Mile 10 Mile

14,105 20,765 40,132

13,950 20,570 40,102

65.34% 69.00% 74.03%

2013 Total Population:

2018 Population:

Owner Occ Housing 2018:

Average Age: 41.30 41.10 40.90

Households 5,670 8,291 15,827

$39,115 $38,621 $38,115

$56,514 $54,698 $52,156

2.30 2.40 2.40

2013 Total Households:

Median Household Inc:

Average Household Inc:

Avg Household Size:

2014 Avg HH Vehicles: 2.00 2.00 2.00

Jasper, Alabama is a thriving retail hub, center of growing industrial development and the county seat of Walker County with a total population of approximately 65,000. Jasper has historically been the “market place” of Northwest Alabama. The City Council and mayor are determined to maintain Jasper's prominence as a retail hub for the region and have endeavored to make the city as "retail friendly" as possible. The pending completion of Interstate 22 linking Birmingham with Memphis is expected to further enhance the city's economy.

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RETAIL MAP


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RETAIL MAP

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PRESENTED BY

JASPER, ALABAMA

O FFER ING M EMORANDUM

BARRY M. WOLFE FORT LAUDERDALE OFFICE Vice President Investments

[email protected] P (954) 245.3493

ADAM J. KRISTOLSenior Investment Analyst

[email protected] (954) 245.3427

GABRIELLE LURIETransaction Manager


WILLIAM BECKERInvestment Analyst


J A S P E R S Q U A R E

JOHN WATTERSSenior Investment Analyst


DOUGLAS K. MANDELFORT LAUDERDALE OFFICE

First Vice President Investments [email protected]

P (954) 245.3493

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Documents

JASPER SQUARE RETAIL PLAZA - LoopNet · operated 376 stores in 32 states and Puerto Rico and offered online shopping at . The company operates stores throughout the midwest, south,