Kum & Go OFFERING MEMORANDUM. 715 Lang Creek Ave, Grinnell, IA *Actual Photo

Transcription

1 Kum & Go 715 Lang Creek Ave, Grinnell, IA OFFERING MEMORANDUM *Actual Photo

2 TABLE OF CONTENTS INVESTMENT OVERVIEW 01 Property Overview Regional Map Local Map Aerial Photo SECTION P R E S E N T E D B Y FINANCIAL ANALYSIS 02 Offering Summary Michael Matusik Vice President Direct Fax mmatusik@primenetlease.com License: CA MARKET OVERVIEW 03 Market Overview Paul R Matusik President Direct Fax pmatusik@primenetlease.com License: CA In Association with Teresa D Horton, a Licensed Iowa Real Estate Broker, Iowa License B41734

3 INVESTMENT OVERVIEW 3

4 PROPERTY OVERVIEW PROPERTY OVERVIEW PRICE: $2,610,208 CAP RATE: 6.34% About The Investment The subject property affords investors the rare opportunity to acquire a superbly located Kum & Go. Built originally in 2005, the 4,721 square foot building has successfully operated as a Kum & Go for eleven years. The property sits on the northeast corner of Lang Creek Avenue and Hwy 146, and is visible from the I-80 which see 26,500 Vehicles per day. The lease is absolute net in nature and requires absolutely zero landlord responsibilities. There are currently over 8.8 years left on the lease. There are 1.5% annually rent increases and four five year options following the initial term. The lease is backed by Kum & Go, L.C. which has more than 430 convenience stores in 11 states (Iowa, Arkansas, Colorado, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota and Wyoming ). PROPERTY HIGHLIGHTS 8.5 Years Remaining on Kum & Go Corporate Lease 100% Bonus Depreciation 1.5 Annual Rent Increases Superbly located along I-80 (26,500 Vehicles Per Day) Close Proximity to Grinnell College Absolute NNN Lease No Landlord Responsibilities ANNUALIZED OPERATING DATA YEAR ANNUAL RENT Current $163,138 01/01/2019 $165,585 01/01/2020 $168,069 01/01/2021 $170,590 01/01/2022 $173,149 01/01/2023 $175,746 01/01/2024 $178,382 01/01/2025 $181,058 01/01/2026 $183,774 01/01/2027* $186,530 01/01/2032* $200,946 01/01/2037* $216,476 01/01/2042* $233,206 * Denotes option period LEASE ABSTRACT Tenant: Kum & Go L.C. Lease Commencement: December 22, 2006 Lease Expiration: December 27, 2026 Rent Increases: Type of Ownership: No. of Tenant Locations: 430+ PROPERTY INFORMATION Address 1.5% Annually Fee Simple 715 Lang Creek Ave Grinnell, IA Offering Price $2,610,208 Price / SF $ Cap Rate 6.34% Net Operating Income $165,585 Year Built /Remodeled 2005 Rentable Square Feet 4,721 Land Area 3.32 Acres 4

5 PROPERTY PHOTOS PROPERTY PHOTOS 5

6 PROPERTY OVERVIEW TENANT W.A. Krause and T.S. Gentle founded Kum & Go, L.C. on September 1, When the two Hampton entrepreneurs opened their small fullservice gas station, they couldn t have known it was only the beginning of a business which would become known for unmatched ingenuity and courageous risk-taking. In 1963, based on a desire to further serve customers, Kum & Go, L.C. introduced the convenience store concept by offering fuel and merchandise - converting their gas station into a station store. By late 1977, Kum & Go had grown to 65 convenience stores employing 327 people. The 1980s brought further innovations in convenience with the addition of quick serve restaurants - including Blimpie, Taco John s and Burger King - in several stores. Kum & Go opened its first store in Des Moines in In 1988, the headquarters were moved from Hampton to West Des Moines - the fastest growing city in Iowa. By the end of the 80s, Kum & Go had 134 stores across the Midwest. In 1996, Kum & Go opened 22 new stores. In 1997, the company opened 14 new stores. In 1998, Kum & Go added 122 new stores. In early 1999, the company capped a decade of phenomenal growth with the acquisition of an additional 45 stores. In 2002, Iowa gained another 12 stores, including seven in Des Moines, two in Fort Dodge and one each in Oskaloosa, Carroll and Grinnell. The pioneering spirit of Kum & Go s founders continue to drive the company forward into the future. As the fifth largest privately held, company-operated convenience store chain in the United States, Kum & Go operates more than 430 stores in 11 states throughout the Midwest. Thanks to the efforts of its more than 4,700 associates, Kum & Go continues to strive for excellence in customer service and convenience - serving more than 400,000 customers each day. Website: Founded: 1959 Number of Locations: 430 ± Number of Employ 4,700 ± Headquarters: West Des Moines, IA Ownership: Private 6

7 REGIONAL MAP 7

8 LOCAL MAP 8

9 AERIAL MAP 9

10 FINANCIAL ANALYSIS 10

11 OFFERING SUMMARY FINANCIAL ANALYSIS THE OFFERING ANNUALIZED OPERATING INFORMATION Property Kum & Go INCOME Property Address 715 Lang Creek Avenue Net Operating Income $165,585 Grinnell, IA Price $2,610,208 RENT SCHEDULE Capitalization Rate 6.34% YEAR ANNUAL RENT MONTHLY RENT RENT/SF Price/SF $ Current $163,138 $13,595 $ /01/2019 $165,585 $13,799 $35.07 PROPERTY DESCRIPTION 01/01/2020 $168,069 $14,006 $35.60 Year Built / Renovated /01/2021 $170,590 $14,216 $36.13 Gross Leasable Area 4,721 01/01/2022 $173,149 $14,429 $36.68 Zoning C-1, General Commercial 01/01/2023 $175,746 $14,645 $37.23 Type of Ownership Fee Simple 01/01/2024 $178,382 $14,865 $ /01/2025 $181,058 $15,088 $38.35 LEASE SUMMARY 01/01/2026 $183,774 $15,314 $38.93 Property Subtype Net Leased Auto Service - Gas/Conv 01/01/2027* $186,530 $15,544 $39.51 Tenant Kum & Go 01/01/2032* $200,946 $16,746 $42.56 Rent Increases 1.5% Each Year 01/01/2037* $216,476 $18,040 $45.85 Guarantor Corporate Guarantee 01/01/2042* $233,206 $19,434 $49.40 Lease Type Absolute Net * Denotes option period Lease Commencement 12/22/2006 Lease Expiration 12/27/2026 Lease Term 20 Term Remaining on Lease (Years) 8.5 Renewal Options 4 - Five Year Options Landlord Responsibility None Tenant Responsibility Absolute Right of First Refusal/Offer Yes 11

12 MARKET OVERVIEW 12

13 MARKET OVERVIEW About Grinnell Grinnell was founded in 1854 by Josiah B. Grinnell, a Congregationalist from Vermont. The city was originally slated to be named "Stella," but J.B. Grinnell convinced other members of the colony to adopt his own name for the city, citing it as a rare and concise name. Grinnell was incorporated on April 28, 1865, and by 1880 Grinnell had a population of around Located at the junction of two railway lines (east-west line of the Rock Island Railroad and the north-south Minneapolis and St. Louis Railway), it became and remains the largest community in Poweshiek County. Grinnell was a stop on the Underground Railroad. One of the most famous events occurred in February 1859, when John Brown, a strong abolitionist, and 12 slaves he was helping escape to freedom, were hosted by J.B. Grinnell and several other community residents. Because of J.B.'s efforts to help slaves and end slavery, in 2013 the National Park Service included his gravesite at Hazelwood Cemetery on the National Underground Railroad Network to Freedom listings. Grinnell was also a stop along the (Mormon) Pioneer Trail, which spans across five states covering about 1,300 miles. The trail was traveled by an estimated 100,000 plus travelers from 1846 to 1869, including some 70,000 Mormons escaping religious persecution. The Pioneer Company of established the first route; from Nauvoo, Illinois to Salt Lake City, Utah. Today, the Pioneer Trail is still visible through many parts of rural Grinnell. Grinnell is home to Grinnell College, established in In 1889, Grinnell College and the University of Iowa played each other at Grinnell College in the first football game played west of the Mississippi River. Grinnell College is nationally recognized as a leading undergraduate institution. In July 2006, The New York Times included Grinnell in its profile of the 20 colleges and universities of "established or rising scholarship" which are fast becoming viable alternatives to Ivy League institutions, and is considered one of the 30 Hidden Ivies. Grinnell was home to Spaulding Manufacturing. H.W. Spaulding began making carriages and spring wagons in Grinnell, Iowa in In 1909 the Spaulding Manufacturing Company added automobiles to its production line. At one time, the factory was the largest employer in the county. Automobile production ceased at the Spaulding factory in 1916 when it could no longer compete with the cheaper Ford automobile. The Spaulding factory site became home to the Spaulding Center for Transportation/Iowa Transportation Museum, as well as a 77 unit loft apartment complex which opened in

14 P R E S E N T E D B Y Michael Matusik Vice President Direct Fax mmatusik@primenetlease.com License: CA Paul R Matusik President Direct Fax pmatusik@primenetlease.com License: CA In Association with Teresa D Horton, a Licensed Iowa Real Estate Broker, Iowa License B41734