OFFERING MEMORANDUM LOFTS ON 5TH€¦ · RENT ROLL *Average rent shown is for multi-family units only. ... Total Shops / Apartments $280,540 $288,956 $297,625 $306,554 $315,750 $325,223

23,000 STUDENTS

UNIVERSITY BOOK EXCHANGE

UPTOWN ART SUPPLY & GALLERY PIRATE MEDIA

GROUP

THE BOUNDARY AT WEST END

ECU WAREHOUSE DISTRICT

SHEPPARD MEMORIAL LIBRARY

5TH STREET DISTILLERY & ANNEX

EAST 5TH STREET

SUBJECT PROPERTY

CHICO’S

OFFERING MEMORANDUM

LOFTS ON 5TH

GREENVILLE, NORTH CAROLINA

Confidentiality and Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the 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 Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Non-Endorsement Notice

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

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PRICING & FINANCIAL ANALYSIS

LOFTS ON 5TH

507 EVANS STREETGREENVILLE, NORTH CAROLINA 27858

PROPERTY DESCRIPTION

GROSS LEASABLE AREA (TOTAL) 24,391 SF

YEAR BUILT 1927

ZONING CD

TYPE OF OWNERSHIP FEE SIMPLE

LOT SIZE (TOTAL) 0.42 ACRES (4 PARCELS)

OPPORTUNITY ZONE NO

PROPERTY BREAKDOWN

MAIN BUILDING 23,691 SF

LOWER LEVEL GLA (RESTAURANT) 5,200 SF

UPPER LEVELS GLA (MULTI-FAMILY) 16,200 SF (12 UNITS)

ADJACENT BUILDING (RETAIL) 700 SF

PARKING SPACES 24 SPACES

TOTAL NO. PARCELS FOUR

DEMOGRAPHIC SUMMARY

5 MILE RADIUS

2018 POPULATION 104,405

2018 HOUSEHOLDS 43,987

MEDIAN HH INCOME $43,720

PER CAPITA INCOME $28,822

AVERAGE HH INCOME $66,558

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OFFERING SUMMARY

PRICE $3,250,000

PRICE/SF $133.25

CAP RATE 6.11%

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PRICING & FINANCIAL ANALYSISCOTANCHE STREET

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Tenant % GLA GLA Rent/SF Monthly Comm/Exp 2019

Crossbones Tavern 23.53% 5,200 $9.18 $3,978.33 Feb 2017 to May 2020 $47,740

Hair Salon 3.17% 700 $12.00 $700.00 TBD $8,400

Apt #1 End Unit (3/2.5) 6.79% 1,500 $1.10 $1,650.00 $19,800

Apt #2 (3/2.5) 6.79% 1,500 $1.15 $1,725.00 $20,700

Apt #3 (3/2.5) 6.79% 1,500 $1.10 $1,650.00 July 2019 to July 2020 $19,800

Apt #4 (3/2.5) 6.79% 1,500 $1.15 $1,725.00 July 2019 to July 2020 $20,700

Apt #5 (3/2.5) 6.79% 1,500 $1.15 $1,725.00 $20,700

Apt #6 (3/2.5) 6.79% 1,500 $1.15 $1,725.00 $20,700

Apt #7 (3/2.5) 6.79% 1,500 $1.15 $1,725.00 July 2019 to July 2020 $20,700

Apt #8 End Unit (3/2.5) 6.79% 1,500 $1.25 $1,875.00 July 2019 to July 2020 $22,500

Apt #9 (2/1) 4.07% 900 $1.00 $900.00 July 2019 to July 2020 $10,800

Apt #10 (2/1.5) 4.07% 900 $1.22 $1,100.00 July 2019 to July 2020 $13,200

Apt #11 (4/2) 8.14% 1,800 $1.22 $2,200.00 July 2019 to July 2020 $26,400

Apt #12 (1/1) 2.71% 600 $1.17 $700.00 July 2019 to January 2020 $8,400

Total/Average* 100% 22,100 $1.15 $18,700.00 $224,400

RENT ROLL

*Average rent shown is for multi-family units only.

Crossbones Tavern Notes:• Tenant is responsible for all expenses excluding Taxes.• Tenant has 1/5 year renewal option with 3-percent annual increases.• Tenant must give at least six (6) months notice of renewal prior to lease expiration.

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PRICING & FINANCIAL ANALYSIS

Tenant 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Crossbones Tavern $47,740 $49,172 $50,647 $52,167 $53,732 $55,344 $57,004 $58,714 $60,476 $62,290

Hair Salon $8,400 $8,652 $8,912 $9,179 $9,454 $9,738 $10,030 $10,331 $10,641 $10,960

Apt #1 End Unit (3/2.5) $19,800 $20,394 $21,006 $21,636 $22,285 $22,954 $23,642 $24,352 $25,082 $25,835

Apt #2 (3/2.5) $20,700 $21,321 $21,961 $22,619 $23,298 $23,997 $24,717 $25,458 $26,222 $27,009

Apt #3 (3/2.5) $19,800 $20,394 $21,006 $21,636 $22,285 $22,954 $23,642 $24,352 $25,082 $25,835

Apt #4 (3/2.5) $20,700 $21,321 $21,961 $22,619 $23,298 $23,997 $24,717 $25,458 $26,222 $27,009

Apt #5 (3/2.5) $20,700 $21,321 $21,961 $22,619 $23,298 $23,997 $24,717 $25,458 $26,222 $27,009

Apt #6 (3/2.5) $20,700 $21,321 $21,961 $22,619 $23,298 $23,997 $24,717 $25,458 $26,222 $27,009

Apt #7 (3/2.5) $20,700 $21,321 $21,961 $22,619 $23,298 $23,997 $24,717 $25,458 $26,222 $27,009

Apt #8 End Unit (3/2.5) $22,500 $23,175 $23,870 $24,586 $25,324 $26,084 $26,866 $27,672 $28,502 $29,357

Apt #9 (2/1) $10,800 $11,124 $11,458 $11,801 $12,155 $12,520 $12,896 $13,283 $13,681 $14,092

Apt #10 (2/1.5) $13,200 $13,596 $14,004 $14,424 $14,857 $15,302 $15,761 $16,234 $16,721 $17,223

Apt #11 (4/2) $26,400 $27,192 $28,008 $28,848 $29,713 $30,605 $31,523 $32,469 $33,443 $34,446

Apt #12 (1/1) $8,400 $8,652 $8,912 $9,179 $9,454 $9,738 $10,030 $10,331 $10,641 $10,960

Total Shops / Apartments $280,540 $288,956 $297,625 $306,554 $315,750 $325,223 $334,979 $345,029 $355,380 $366,041

Additional Revenue - Leased Parking $12,000 $12,360 $12,731 $13,113 $13,506 $13,911 $14,329 $14,758 $15,201 $15,657

Gross Potential Income $292,540 $301,316 $310,356 $319,666 $329,256 $339,134 $349,308 $359,787 $370,581 $381,698

Vacancy (%GPI) $14,627.00 $15,065.81 $15,517.78 $15,983.32 $16,462.82 $16,956.70 $17,465.40 $17,989.37 $18,529.05 $19,084.92

Effective Gross Income $277,913 $286,250 $294,838 $303,683 $312,794 $322,177 $331,843 $341,798 $352,052 $362,613

Expenses

Taxes $13,695.00 $13,968.90 $14,387.97 $14,819.61 $15,264.19 $15,722.12 $16,193.78 $16,679.60 $17,179.99 $17,695.38

Insurance $7,228.00 $7,373 $7,520 $7,670 $7,824 $7,980 $8,140 $8,303 $8,469 $8,638

Utilities - Water $8,088.21 $8,250 $8,415 $8,583 $8,755 $8,930 $9,109 $9,291 $9,477 $9,666

Utilities - Common Area / Parking Lot Lights $2,883.48 $2,941 $3,000 $3,060 $3,121 $3,184 $3,247 $3,312 $3,378 $3,446

General Maintenance $7,963.00 $8,202 $8,284 $8,367 $8,450 $8,535 $8,620 $8,706 $8,794 $8,881

Cleaning Services $9,600.00 $9,696 $9,793 $9,891 $9,990 $10,090 $10,191 $10,292 $10,395 $10,499

Fire Alarm Monitoring/Inspection $1,484.00 $1,513.68 $1,543.95 $1,574.83 $1,606.33 $1,638.46 $1,671.23 $1,704.65 $1,738.74 $1,773.52

Private Security $1,592.50 $1,640.28 $1,689.48 $1,740.17 $1,792.37 $1,846.14 $1,901.53 $1,958.57 $2,017.33 $2,077.85

Internet - Security Cameras $659.88 $673.08 $686.54 $700.27 $714.28 $728.56 $743.13 $757.99 $773.15 $788.62

Leased Parking Fees $7,920.00 $7,999.20 $8,079.19 $8,159.98 $8,241.58 $8,324.00 $8,407.24 $8,491.31 $8,576.23 $8,661.99

Management Fees 5% EGI $13,895.65 $14,313 $14,742 $15,184 $15,640 $16,109 $16,592 $17,090 $17,603 $18,131

Reserves ($.020 PSF) $4,420.00 $4,420.00 $4,420.00 $4,420.00 $4,420.00 $4,420.00 $4,420.00 $4,420.00 $4,420.00 $4,420.00

Total Expenses $79,430 $80,989 $82,561 $84,170 $85,819 $87,507 $89,236 $91,007 $92,821 $94,679

NOI $198,483 $205,261 $212,277 $219,513 $226,975 $234,671 $242,607 $250,791 $259,231 $267,934

Notes• Leased Parking Revenue - 20 spaces, at $50/space/month • Landlord pays water utility expense for apartments - includes trash collection • Retail tenants pay their own utilities

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PROPERTY OVERVIEW

Marcus & Millichap is pleased to present for sale, a mixed-use asset located in Greenville, North Carolina. The subject property, Lofts on 5th, consists of four contiguous parcels totaling 0.42 acres. The property includes a three-story building with 16,200 square feet of loft apartments (12 units/33-Beds) on the upper levels, a 5,200 square foot retail restaurant space located on the lower level, an additional 700 square foot retail building adjacent with an outdoor patio area, and a gated courtyard for the apartment residents adjacent to University Book Exchange. The offering also includes a private parking lot with twenty-four (24) parking spaces.

Lofts on 5th is located in the Uptown area of Greenville. The property was originally built in the 1930’s as a three-story Montgomery Ward retail store, with remnants of this history displayed through it’s original polychrome terra cotta façade, and bas-relief of the “Spirit of Progress” that can still be seen at the top of the building. The asset was once described as “one of the most beautiful and imposing of any mercantile structure in the State. In the mid-1990’s, the building was converted into apartments and a restaurant space. The upper levels of the Main Building are divided into 12 units containing thirty-three (33) bedrooms in total with a range of layout options. Each apartment comes with appliances including a stove, refrigerator, dishwasher, washer and dryer. The building’s common areas are equipped with security cameras. The Main Building’s restaurant is occupied by Crossbones Tavern. The additional retail space on the property is occupied by a “Blow Dry” hair salon concept.

The subject property is well situated in Uptown Greenville. The property is approximately 0.3 miles from East Carolina University, the fourth largest university in the North Carolina with an average enrollment of more than 23,000 students. In addition, the subject property is located within close proximity to Sup Dogs, a popular local restaurant, the Greenville Police Department, Greenville City Hall, and more. Traffic counts directly in front of the property ae 6,400 vehicles per day. Additional traffic counts in the area include 11,000 vehicles per day on Reade Circle and 6,000 vehicles per day on South Greene Street.

• Mixed-Use Building, Adjacent to East Carolina University • 24,391 Square Feet | Four (4) Parcels Totaling 0.42 Acres | CD Zoning • 22,150 Square Foot Main Building | 750 Square Foot Adjacent Building • 12 Unit/33-Bed Loft Apartments Plus Two (2) Retail Units • Includes 24 Parking Spaces and Courtyard for Outdoor Seating• Located in Uptown Greenville, North Carolina • County Seat of Pitt County, North Carolina• Nearby Traffic Generators: Insomnia Cookies, ECU, City Hall Greenville City Offices,

University Book Exchange, Town Commons, and Multiple New Multi-Family Developments• 5 Mile Demographics: 104,405 Population, $66,558 Average Household Income • Walking Distance to East Carolina University (23,000+ Enrollment)

ROCKY MOUNT36 MILES

RALEIGH85 MILES

DURHAM107 MILES

FAYETTEVILLE104 MILES

GOLDSBORO44 MILES

NEW BERN47 MILES

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MOSELEY PARKING LOT

PITT COUNTY COURTHOUSE

TOWN COMMONSFIRST STREET PLACE

APARTMENTS

CITY HALL

PITT GREENVILLE AIRPORT

GREENVILLE UTILITIES COMMISSION

THE STATE THEATERE

UPTOWN BREWING CO.

SUPER BLCOKSUBJECT PROPERTY

CITY OF GREENVILLE MUNICIPAL BLDG


UPTOWN ART SUPPLY & GALLERY

PIRATE MEDIA GROUP

GATHER UPTOWN

NEW PARKING DECK

10


FACING NORTH

MOSELEY PARKING LOT

PITT COUNTY COURTHOUSE

TOWN COMMONSFIRST STREET PLACE

APARTMENTS

CITY HALL

PITT GREENVILLE AIRPORT


THE STATE THEATERE

UPTOWN BREWING CO.

SUPER BLCOKSUBJECT PROPERTY

CITY OF GREENVILLE MUNICIPAL BLDG



PIRATE MEDIA GROUP

GATHER UPTOWN

NEW PARKING DECK



PIRATE MEDIA GROUP




SUBJECT PROPERTY

DICKINSON ARTS DISTRICT

10TH STREET CONNECTOR

NUCLEUS UPTOWN

11


FACING SOUTH

23,000 STUDENTS



GROUP





EAST 5TH STREET

SUBJECT PROPERTY

CHICO’S

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FACING SOUTH-WEST

23,000 STUDENTS



GROUP





EAST 5TH STREET

SUBJECT PROPERTY

CHICO’S

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PROJECT NAME STATUS NOTES

1 ECU Millenial Campus Planned Redevelopment of ECU's Warehouse District on 10th St

2 SuperBlock Under Construction

Redevelopment to 5 Buildings. Retail and Office Space

3 State Theater Under Construction Live Music Venue

4 Avenue Townes Under Construction

12 Brownstone-Style Townhomes with Attached Garages

5 ECU Life Sciences and Biotechnology Building

Under Construction 141,500 SF, Four Story Building

6 Proximity at 10th Completed Off Campus Housing. Features 12,000 SF Retail and a 9,000 SF Resident Clubhouse

7 Dickinson Lofts/University Edge Completed Off Campus Housing.

413 Bed/144 Unit, Mid-Rise Community

8 SupDogs Completed Rooftop Expansion

9 Town Commons Completed 21 Acres of Open Green Space

10 Nucleus Uptown Recent Opening City's first coworking space

11 Riverside Recreation Recent Opening

Retail Service Offering Rentals for Kayaks, Stand Up Paddleboards, Paddle Boats, Etc.

12 Globe Pharmacy Recent Opening

New Globe Pharmacy in the Former Globe Hardware Store

RECENT AREA DEVELOPMENT

Proximity at 10th ECU Life & Sciences & Biotechnology Bldg

Town Commons SuperBlock SupDogs

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EAST 5TH STREET6,400 VPD

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COURTYARD ON EVANS STREET

ROOFTOP DECK

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COURTYARD ON COTANCHE STREETCOURTYARD ON COTANCHE STREET

COURTYARD ON COTANCHE STREET

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MARKET OVERVIEW

MARKET OVERVIEWGREENVILLE, NORTH CAROLINA

CONTENT SOURCE: GREENVILLE ECONOMCI DEVELOPMENT

Anchored by East Carolina University and Vidant Medical (Uni-Med), Greenville is the health, education, retail and entertainment hub of Eastern North Carolina. It’s also the 10th largest city in North Carolina, with 90,597 people in the city limits and 175,842 in the Metropolitan Statistical Area (MSA).

Strategically located on the east coast, Greenville offers convenient access to rail, air, ports and roads. The community manages its own utilities through Greenville Utilities (GUC), which provides quality water, sewer, gas and power to residents and business alike. If it’s important to you, be sure to ask GUC about customized utility solutions and current excess capacity.

The City of Greenville is ranked in the top ten of the nation’s “Best Small Places For Business And Careers” by Forbes Magazine. Reasons for this accolade include a business friendly atmosphere, low cost of living and an educated population (29.7% M.S.A. residents and 37.5% City residents over the age of 25 have a bachelor’s degree or higher).

MAJOR AREA EMPLOYERSMANUFACTURING EMPLOYERS

HYSTER-YALE

PATHEON, INC

ALLIANCE ONE INTERNATIONAL

ASMO GREENVILLE OF NC

MAYNE PHARMA, INC

TRC. INC (THE ROBERTS COMPANY)

DSM DYNEEMA, LLC

ATTENDS HEALTHCARE PRODUCTS

GRADY-WHITE BOATS

EASTERN CAROLINA VOCATIONAL CNTR

MAJOR AREA EMPLOYERSNON-MANUFACTURING EMPLOYERS

VIDANT MEDICAL CENTER

EAST CAROLINA UNIVERSITY

PITT COUNTY PUBLIC SCHOOLS

CITY OF GREENVILLE

PITT COMMUNITY COLLEGE

COUNTY OF PITT

PHYSICIANS EAST

CONVERGYS

WAL-MART


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MARKET OVERVIEW

MAJOR EMPLOYERS

EAST CAROLINA UNIVERSITY

East Carolina University (ECU) is a public research university in Greenville, North Carolina. Originally founded in March 1907 as a teacher training school on 43 acres, ECU has grown to almost 1,600 acres and the fourth largest university in North Carolina. The university’s academic facilities are located on six properties: Main Campus, Health Sciences Campus, West Research Campus, the Field Station for Coastal Studies in New Holland, NC, the Millennial Research Innovation Campus in Greenville’s warehouse district and an overseas campus in Certaldo Alto, Italy. There fall 2018 calls had a total undergraduate enrollment of more than 23,000 students. ECU students represent all 100 NC counties, 48 states plus the District of Columbia, and 44 countries. The university offers 84 Bachelor’s degrees, 71 Master’s degrees, 13 Research Doctoral degrees, 5 Professional Doctoral degrees, 84 Departmental Cerificates, and 120 online degrees and certificate programs.

VIDANT MEDICAL CENTER

Vidant Medical Center is the heart of the Vidant Health System. The medical center features 974 licensed beds and offers extensive inpatient and outpatient services to more than 1.4 million people across 29 counties. Vidant Medical Center is the third largest Level I Trauma Center in the nation and serves as the flagship teaching hospital for the Brody School of Medicine at East Carolina University. Services provided by the medical center include Orthopedics and Sports Medicine, Bariatrics, Endocrinology, Gastroenterology, Dermatology, Ophthalmology, Pain Management, Behavioral Health, Radiology, Surgery, Wellness and Prevention, Emergency and Trauma, and more.

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DEMOGRAPHIC ANALYSIS

1 MILE 3 MILE 5 MILE

2010 HOUSEHOLDS 3,986 22,849 40,624

2018 HOUSEHOLDS 4,228 24,690 43,987

2023 HOUSEHOLDS 4,169 26,667 48,426


2010 OWNER OCCUPIED HOUSING UNITS 15.8% 31.9% 43.1%

2010 RENTER OCCUPIED HOUSING UNITS 84.3% 68.1% 56.9%






2010 POPULATION 13,078 55,070 97,407

2018 POPULATION 13,698 58,860 104,405

2023 POPULATION 13,469 62,362 113,264


$ 0 - $ 14,999 42.6% 25.3% 19.8%

$ 15,000 - $24,999 14.7% 14.0% 12.5%

$ 25,000 - $34,999 11.3% 10.8% 10.0%

$ 35,000 - $49,999 9.1% 12.5% 13.0%

$ 50,000 - $74,999 8.6% 15.2% 17.1%

$ 75,000 - $99,999 4.2% 7.8% 9.8%

$100,000 - $124,999 2.1% 5.3% 6.9%

$125,000 - $149,999 1.8% 2.9% 3.6%

$150,000 - $200,000 5.1% 3.1% 3.5%

$200,000 to $249,999 0.2% 1.1% 1.3%

$250,000 + 0.3% 2.1% 2.5%

MEDIAN HH INCOME $19,136 $34,935 $43,720

PER CAPITA INCOME $16,539 $25,867 $28,822

AVERAGE HH INCOME $38,409 $58,403 $66,558

CLICK HERE FOR COMPLETE DEMOGRAPHIC REPORT

https://www.dropbox.com/s/kcngeyhowdchidx/Complete%20Demographic%20Report.pdf?dl=0

FOR MORE INFORMATION:ANDREW MARGULIESFirst Vice President | InvestmentsSenior Director, National Retail GroupTel: (312) [email protected] License: 264059IL License: 475147606

KYLE GROSSAssociate | InvestmentsNational Multi Housing GroupTel: (919) [email protected] License: 276302

Documents

OFFERING MEMORANDUM LOFTS ON 5TH€¦ · RENT ROLL *Average rent shown is for multi-family units only. ... Total Shops / Apartments $280,540 $288,956 $297,625 $306,554 $315,750 $325,223