Offering Memorandum REGIONS BANK 850 AVENUE D Freddy’s … · 2018-11-06 · Marcus Millichap Real Estate Inestment Serices is a serice mar o Marcus Millichap Real Estate Inestment

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

REGIONS BANK850 AVENUE DMARRERO (NEW ORLEANS), LA 70072

Offering Memorandum

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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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0070509


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AARON’S - CORPORATE RELOCATION STORE

ARCHBISHOP SHAWH I G H S C H O O L

MCDONALD’SWalgreensJIMMY JOHN’S

BURGER KING

MCDONALD’S

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M I S S I S S I P P I R I V E R

EXECUTIVE SUMMARY


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REGIONS BANK

REGIONS BANK850 Avenue DMarrero (New Orleans), LA 70072

FINANCIAL SUMMARY

Price $1,046,000

Cap Rate 6.50%

Building SF 1,500 SF

Net Cash Flow 6.50% $68,000 (1)

Year Built 1999

Lot Size .33 Acres

LEASE SUMMARY

Lease Type Double-Net (NN) Lease (2)

Tenant Regions Bank, an Alabama State Banking Corporation

Lease Commencement Date June 25, 1999

Lease Expiration Date December 31, 2024

Lease Term Remaining 6 Years

Rental Increases 8.8% on January 1, 2020

Renewal Options 2, 5 Year Options

BASE RENT $68,000

Net Operating Income $68,000

Total Return 6.50% $68,000

ANNUALIZED OPERATING DATA

LEASE YEARS ANNUAL RENT CAP RATE

1/1/2020 - 12/31/2024 $68,000 6.50%

OPTION YEARS ANNUAL RENT CAP RATE

Option 1 $74,800 7.15%

Option 2 $82,280 7.92%

(1) This is the annual rent as of January 1, 2020. The current base rent is $62,500. The Seller will agree to credit the Buyer the difference between current base rent and scheduled base rent as of the closing date.

(2) The Landlord shall be responsible for the repair and maintenance of the roof, exterior walls, parking lot and utility services on the exterior of the building.

HISTORICAL BRANCH DEPOSITS AS REPORTED BY THE FDIC

2017 $56,055,000

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TENANT OVERVIEW

Regions Financial Corporation was formed in 1971 as First Alabama Bancshares Inc., Alabama’s first multibank holding company. With the combination of three well-respected banks, the holding company began operations with a total of $543 million in assets and 40 banking locations in Birmingham, Huntsville and Montgomery.

The company was renamed Regions Financial Corp. in 1994 to better reflect its growing presence throughout the South. Its merger with Memphis, Tenn.-based Union Planters Corp. took place in July 2004, creating a Top 15 U.S. bank. Its merger with AmSouth Bancorporation on November 4, 2006 created a Southeast-based financial powerhouse ranking as one of the top banks in the nation. Serving some 5 million households throughout the South, Midwest and Texas, Regions is a full-service provider of retail and commercial banking, wealth management, mortgage, and insurance products and services.

Regions Financial Corporation, now with $125 billion in assets, is a member of the S&P 500 Index and one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, mortgage and insurance products and services.

Regions Bank, the primary subsidiary of Regions Financial Corporation, is a full-service institution with a full range of financial products and services in the areas of wealth management, mortgage banking, and insurance, in addition to traditional banking products and services. The bank operates in approximately 1,500 offices and a 1,900-ATM network across a 16-state geographic footprint.

www.regions.com

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AARON’S - CORPORATE RELOCATION STORE

LOCATION OVERVIEWINVESTMENT HIGHLIGHTSSituated in the New Orleans Metropolitan Area, Marrero is on the West Bank of the Mississippi River, home to the Barataria Preserve of Jean Lafitte National Historical Park and Preserve. Marrero is home to one of the most unique venues in Louisiana, Bayou Barn, an open air rustic barn and dance hall. The area is also home to scenic bayous, swamps, marshes and forests with eight miles of boardwalks and hard trails. In addition to its scenic side, Marrero is a vibrant residential and commercial community featuring hotels, restaurants, and venues hosting corporate and leisure visitors.

The New Orleans metro contains a population of more than 1.2 million residents, distributed among eight Louisiana parishes. The largest concentration of people live in the City of New Orleans, which has a population of around 379,900 citizens. The neighboring City of Metairie is the only other population center in the metro to boast more than 100,000 inhabitants.

Notably, New Orleans’ most celebrated economic sector is its massively popular tourism industry. With one of the most distinct regional cultures in the world, the area brings in more than $5.5 billion annually in tourism money. Roughly 15 percent of all New Orleans jobs fall within the leisure and hospitality sector.

The New Orleans metro is a major economic center for the American south, and has been of strategic economic importance throughout the region’s history. The Port of New Orleans and the nearby Port of South Louisiana help the metro boast one of the busiest hubs for the distribution and transportation of waterborne cargo in the world.

Enormous industrial projects, especially in St. James Parish, will help the New Orleans metro add 4,600 jobs in 2018 and 7,600 in 2019, according to an annual economic forecast. The New Orleans economy will also benefit from expansions in the health care sector and the National World War II Museum, as well as airport construction. Growth is expected to accelerate in 2019 with projects including Formosa Pharmaceuticals’ $9.4 billion complex in St. James Parish and Venture Global’s $8.5 billion liquefied natural gas export facility at the Port of Plaquemines.

• Corporate Lease with Regions Bank

• Strong Deposits – $56,000,000

• 306,957 Residents in Trade Area – New Orleans MSA

• Directly Off US Highway 90 (86,930+ Cars per Day)

• Across from West Jefferson Medical Center

• Surrounded by Major Retailers – Walmart Supercenter, Lowe’s, The Home Depot, Target, AMC Theatres, Michaels, Best Buy, and More

• Strong Daytime Population, 367,060+ Daytime Employees in 5-Mile Radius

• Minutes to Oakwood Center – 80+ Regional and National Retailers

• 15 Minutes from Downtown New Orleans

• Close Proximity to Tulane University (13,600+ Enrolled) and Loyola University New Orleans (3,830+ Enrolled)

PROPERTY DESCRIPTION

Income 1-Mile 3-Miles 5-Miles

2017 Est. Average Household Income $50,039 $69,644 $67,438

2017 Est. Median Household Income $34,720 $41,176 $40,401

2017 Est. Per Capita Income $21,637 $28,849 $26,943

Population 1-Mile 3-Miles 5-Miles

2017 Estimate 10,853 127,088 306,957

Households 1-Mile 3-Miles 5-Miles

2017 Estimate 4,639 52,267 120,589

DEMOGRAPHIC REPORT

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PROPERTY PHOTOS

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LOCAL MAP

Williams-Sonoma

MAP

4 MILESOakwood CenterShopping Mall

11 MILESNew Orleans

French Quarter

14 MILESLouis Armstrong New

Orleans International Airport

9 MILESTulane University

(13,600+ Enrolled)

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a care-ful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and finan-cial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed fa-cilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be inter-rupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

Net Leased Disclaimer

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical 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, PCBs or asbestos, the compliance with local, 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 offering memorandum 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Confidentiality Agreement

exclusively listedMARK RUBLESenior Managing DirectorPHOENIX OFFICETel: (602) 687-6766Fax: (602) [email protected]

CHRIS LINDFirst Vice PresidentPHOENIX OFFICETel: (602) 687-6780Fax: (602) [email protected]

CHRIS SHAHEENBroker of RecordBATON ROUGE OFFICETel: (901) 620-3600License: BROK.0095692662-ACT

JAMIE MEDRESSExecutive Managing DirectorPHOENIX OFFICETel: (602) 687-6778Fax: (602) [email protected]

Exclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

Documents

Offering Memorandum REGIONS BANK 850 AVENUE D Freddy’s … · 2018-11-06 · Marcus Millichap Real Estate Inestment Serices is a serice mar o Marcus Millichap Real Estate Inestment