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2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION2407 Brownsboro Rd • Louisville, KY 40206
Offering Memorandum
1
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended tobe reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any otherperson or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared toprovide summary, unverified information to prospective purchasers, and to establish only a preliminary level ofinterest in the subject property. The information contained herein is not a substitute for a thorough due diligenceinvestigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, withrespect to the income or expenses for the subject property, the future projected financial performance of theproperty, the size and square footage of the property and improvements, the presence or absence of contaminatingsubstances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of theimprovements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans orintentions to continue its occupancy of the subject property. The information contained in this Marketing Brochurehas been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will notverify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regardingthese matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of the information set forthherein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified inthis marketing package. The presence of any corporation's logo or name is not intended to indicate or implyaffiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates orsubsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included forthe purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATIONLouisville, KYACT ID Y0530060
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TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01Offering Summary
Regional Map
Local Map
Aerial Photo
FINANCIAL ANALYSIS 02Tenant Summary
Lease Expiration Chart
Operating Statement
Notes
Pricing Detail
Acquisition Financing
MARKET COMPARABLES 03Sales Comparables
Comparable Shopping Centers
MARKET OVERVIEW 04Demographic Analysis
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
3
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
#
EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Norton Healthcare Foundation 9,000
Jewish Hosp Halthcare Svcs Inc 8,125
University of Louisville 4,563
Churchill Park School 4,302
Baptist Hospital East 4,000
California Square 3,900
Joseph Gilene President 3,500
Jewish Hospital & St MA 3,452
KFC 2,686
Humana 2,556
Fifteeninone Opco Group LLC 2,540
Jefferson County Board Educatn 2,044
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2017 Estimate Pop 15,202 88,355 242,615
2017 Census Pop 14,675 85,249 234,884
2017 Estimate HH 7,865 41,209 109,543
2017 Census HH 7,636 39,935 106,455
Median HH Income $42,685 $50,408 $45,052
Per Capita Income $33,920 $37,912 $31,716
Average HH Income $64,738 $79,786 $69,008
VITAL DATA
YEAR 1 YEAR 2
Price $690,000 CAP Rate 11.04% 13.13%
Loan Amount $483,000Net Operating Income
$76,204 $90,576
Loan Type Proposed NewNet Cash Flow After Debt Service
6.14% / $13,001 25.45% / $53,907
Interest Rate / Amortization 4.50% / 20 Years Total Return 13.33% / $28,246 32.98% / $69,853
Gross Leasable Area (GLA) 4,910 SF
Price/SF $140.53
Current Occupancy 62.73%
Year Built / Renovated 1967 / 2015
Lot Size 0.61 acre(s)
5
MAJOR TENANTS
TENANT GLA LEASE EXPIRATION LEASE TYPE
Pizza Hut 1,480 2/25/2019 NNN
Penn Station 1,600 4/30/2021 NNN
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
OFFERING SUMMARY
Retail Asset with Upside Potential in Highly-Desirable Clifton Submarket
Ingress/Egress Point is Signalized
Rear Building Has Recently Had $150,000 of Upgrades Performed
Parking Lot is Newly Paved and Striped
Strong Vehicle Count (15,000 Vehicles Per Day)
Great for a Possible Owner/Occupier
INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to offer 2407 Brownsboro Road, a 4,910 square foot retail project in two separate buildings. Pizza Hut is in a stand-alone 1,480 square foot
building. The franchisee is one of the largest Pizza Hut franchisees in the Louisville MSA, The back building is a total of 3,430 square feet, with a 1,600 square foot Penn
Station East Coast Subs store and a vacant bay totaling 1,830 square feet, offering massive upside potential to the new owner.
The location in the Clifton Heights is ideal. It is one of the most walkable sections of the city and is densely populated, with over 86,200 people in a three-mile radius.
There is a strong retail presence in the area as well. Just across the street and a bit west is a Kroger-anchored shopping center that dates to 1964, although was recently
remodeled and updated. The nearby Pat's Steakhouse has been a Louisville tradition for nearly 60 years, and is considered by many local residents to be the best
steakhouse in the city.
INVESTMENT OVERVIEW
6
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
#
OFFERING SUMMARY
PROPERTY OVERVIEW
The property consists of two buildings totaling 4,910 square feet. The Pizza Hut building is a stand-alone building
consisting of 1,480 square feet. The other building totals 3,430 square feet and is divided into two bays. One bay
is occupied by Penn Station East Coast Subs (1,600 square feet) and the other bay is currently vacant (1,830
square feet).
The property is located in Clifton, which is east of downtown Louisville and is in a mature part of the city with
residential development dating back into the 1860s. It is considered an eclectic neighborhood, and is popular for
restaurants, antique shops, and art galleries. Over one-third of the area's residents are college-educated, which
is a much-higher rate than the city overall.
The current owners have performed significant upgrades to the property since 2015 -- the rear building has a
new roof, new facade, new exterior insulation, and new glass. The electricity in the building is all new. Both
parking areas have been resurfaced.
77
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
PROPERTY SUMMARY
OFFERING SUMMARY
PROPOSED FINANCING
First Trust Deed
Loan Amount $483,000
Loan Type Proposed New
Interest Rate 4.50%
Amortization 20 Years
Loan Term 5 Years
Loan to Value 70%
Debt Coverage Ratio 2.08
THE OFFERING
Property 2407 Brownsboro Road -- Pizza Hut & Penn Station
Price $690,000
Property Address 2407 Brownsboro Rd, Louisville, KY
SITE DESCRIPTION
Year Built/Renovated 2015
Gross Leasable Area 4,910 SF
Lot Size 0.6 acre(s)
8
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
SALES COMPARABLES MAP
20
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
(SUBJECT)
Rex Centre
1781 Sharkey Way
South Elkhorn Village
SALES COMPARABLES
1
2
3
PROPERTY NAME
MARKETING TEAM
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
21
SALES COMPARABLES
Annual Per SF
Income $88,780 $18.08
Expenses $12,576 $2.56
NOI $76,204 $15.52
Occupancy 62.73%
Tenants Lease Type
Asking Price: $690,000 Pizza Hut NNN
Price/SF: $140.53 Penn Station NNN
CAP Rate: 11.04%
Year Built: 1967
PIZZA HUT, PENN STATION WITH UPSIDE2407 Brownsboro Rd, Louisville, KY, 40206
1
Tenants Lease Type
Close Of Escrow:
5/15/2016 Supercuts NNN
Sales Price: $1,027,154 Sprint NNN
Price/SF: $145.90
Year Built: 1995
REX CENTRE2730 N Fairfield Rd, Beavercreek, OH, 45431
2
Tenants Lease Type
Close Of Escrow:
10/4/2016 Firehouse Subs
Sales Price: $1,015,000 Orange Leaf Yogurt
Price/SF: $169.17
Year Built: 2011
1781 SHARKEY WAY1781 Sharkey Way, Lexington, KY, 40511
PROPERTY NAME
MARKETING TEAM
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
22
SALES COMPARABLES
3
Tenants Lease Type
Close Of Escrow:
8/19/2016 El Charro NNN
Sales Price: $884,003 Brick Oven Pizza NNN
Price/SF: $151.58
Year Built: 2006
SOUTH ELKHORN VILLAGE4379 Old Harrodsburg Rd, Lexington, KY, 40513
8
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
COMPARABLE SHOPPING CENTERS
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
(SUBJECT)
Cliffside Plaza
Brownsboro Plaza
Clifton Kroger Center
4
7
8
9
11
20
12
14
15
16
17
13
18
10
1
2
3
23
PROPERTY NAME2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
COMPARABLE SHOPPING CENTERS
24
AVERAGE OCCUPANCY
Avg. 100.00%
0
10
20
30
40
50
60
70
80
90
100
PizzaHut, Penn
Stationwith Upside
CliffsidePlaza
BrownsboroPlaza
CliftonKrogerCenter
PROPERTY NAME
MARKETING TEAM
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
COMPARABLE SHOPPING CENTERS
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
25
MAJOR TENANTS
Pizza Hut
Penn Station
Total GLA Available SF Asking Rent/SF
4,910 SF 1,830 SF $12.22
YEAR BUILT: 1967
PIZZA HUT, PENN STATION WITH UPSIDE2407 Brownsboro Rd, Louisville, KY, 40206
OCCUPANCY: 100% | YEAR BUILT: 1976
Total GLA Available SF Asking Rent/SF
19,334 SF 0 SF
MAJOR TENANTS
Family Dollar
Papa John's
1
CLIFFSIDE PLAZA1961 Brownsboro Rd, Louisville, KY, 40206
OCCUPANCY: 100% | YEAR BUILT: 1978
Total GLA Available SF Asking Rent/SF
12,434 SF 0 SF
MAJOR TENANTS
Little Caesar's Pizza
Subway
2
BROWNSBORO PLAZA1977 Brownsboro Rd, Louisville, KY, 40206
PROPERTY NAME
MARKETING TEAM
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
COMPARABLE SHOPPING CENTERS
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
26
OCCUPANCY: 100% | YEAR BUILT: 1964
Total GLA Available SF Asking Rent/SF
45,627 SF 0 SF
MAJOR TENANTS
Kroger
3
CLIFTON KROGER CENTER2202 Brownsboro Rd, Louisville, KY, 40206
PROPERTY NAME
MARKETING TEAM
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
DEMOGRAPHICS
Source: © 2017 Experian
Created on January 2018
POPULATION 1 Miles 3 Miles 5 Miles
2022 Projection
Total Population 15,246 87,697 242,692
2017 Estimate
Total Population 15,202 88,355 242,615
2010 Census
Total Population 14,675 85,249 234,884
2000 Census
Total Population 14,608 87,470 236,591
Current Daytime Population
2017 Estimate 15,698 132,140 405,160
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
2022 Projection
Total Households 7,953 41,256 110,577
2017 Estimate
Total Households 7,865 41,209 109,543
Average (Mean) Household Size 1.87 2.02 2.10
2010 Census
Total Households 7,636 39,935 106,455
2000 Census
Total Households 7,486 40,543 106,533
Occupied Units
2022 Projection 7,953 41,256 110,577
2017 Estimate 8,482 44,500 119,631
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
2017 Estimate
$150,000 or More 6.30% 10.84% 7.99%
$100,000 - $149,000 9.46% 11.24% 10.29%
$75,000 - $99,999 9.22% 10.89% 10.54%
$50,000 - $74,999 17.67% 17.34% 17.05%
$35,000 - $49,999 16.51% 13.78% 14.23%
Under $35,000 40.81% 35.93% 39.91%
Average Household Income $64,738 $79,786 $69,008
Median Household Income $42,685 $50,408 $45,052
Per Capita Income $33,920 $37,912 $31,716
HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure
$54,560 $60,216 $56,675
Consumer Expenditure Top 10 Categories
Housing $13,353 $14,585 $13,869
Transportation $10,557 $11,904 $11,006
Shelter $6,764 $7,305 $6,994
Food $5,971 $6,592 $6,209
Personal Insurance and Pensions $4,262 $5,099 $4,623
Health Care $3,678 $4,189 $4,006
Utilities $3,559 $3,799 $3,640
Entertainment $2,071 $2,385 $2,261
Apparel $1,606 $1,851 $1,689
Household Furnishings and Equipment
$1,468 $1,744 $1,610
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Population By Age
2017 Estimate Total Population 15,202 88,355 242,615
Under 20 16.55% 20.04% 22.13%
20 to 34 Years 30.37% 24.91% 24.77%
35 to 39 Years 7.54% 6.89% 6.49%
40 to 49 Years 11.34% 12.03% 11.52%
50 to 64 Years 19.96% 21.50% 20.25%
Age 65+ 14.25% 14.61% 14.85%
Median Age 36.84 38.57 37.29
Population 25+ by Education Level
2017 Estimate Population Age 25+ 11,644 64,811 170,509
Elementary (0-8) 2.67% 2.04% 2.53%
Some High School (9-11) 3.73% 5.32% 7.32%
High School Graduate (12) 16.93% 18.36% 23.22%
Some College (13-15) 20.73% 19.59% 21.47%
Associate Degree Only 6.22% 6.19% 6.42%
Bachelors Degree Only 27.40% 26.32% 22.16%
Graduate Degree 21.91% 21.62% 16.09%
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Income
In 2017, the median household income for your selected geography is$42,685, compare this to the US average which is currently $56,286.The median household income for your area has changed by 29.66%since 2000. It is estimated that the median household income in yourarea will be $49,716 five years from now, which represents a changeof 16.47% from the current year.
The current year per capita income in your area is $33,920, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $64,738, compare this to the USaverage which is $81,217.
Population
In 2017, the population in your selected geography is 15,202. Thepopulation has changed by 4.07% since 2000. It is estimated that thepopulation in your area will be 15,246.00 five years from now, whichrepresents a change of 0.29% from the current year. The currentpopulation is 48.35% male and 51.65% female. The median age ofthe population in your area is 36.84, compare this to the US averagewhich is 37.83. The population density in your area is 4,833.82 peopleper square mile.
Households
There are currently 7,865 households in your selected geography. Thenumber of households has changed by 5.06% since 2000. It isestimated that the number of households in your area will be 7,953five years from now, which represents a change of 1.12% from thecurrent year. The average household size in your area is 1.87 persons.
Employment
In 2017, there are 5,234 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that68.50% of employees are employed in white-collar occupations inthis geography, and 31.61% are employed in blue-collar occupations.In 2017, unemployment in this area is 4.29%. In 2000, the averagetime traveled to work was 20.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:81.05% White, 12.10% Black, 0.01% Native American and 2.97%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.
People of Hispanic origin make up 3.55% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.
PROPERTY NAME
MARKETING TEAM
2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION
Housing
The median housing value in your area was $175,718 in 2017,compare this to the US average of $193,953. In 2000, there were3,402 owner occupied housing units in your area and there were4,085 renter occupied housing units in your area. The median rent atthe time was $431.
Source: © 2017 Experian
DEMOGRAPHICS
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