Investment Opportunity Lowe s (S&P: A+)

Transcription

1 Lowe s (S&P: A+) Plus Pad Sites Burger King, Webster Bank, Dunkin Donuts & Dollar Tree 500 New Haven Avenue - Derby, CT Investment Summary: This investment opportunity consists of a new Lowe s ground leased fee interest situated on acres under a 152,890 sf building plus four pad sites. Included in the sale are a Burger King (NNN ground lease), Webster Bank (NNN ground lease), Dunkin Donuts (NNN lease) and a Dollar Tree (NN Lease). These tenants were operating successfully while K-Mart was open and when it closed. Now that the former K-Mart anchored center has been redeveloped with a new 150,000 sf Lowe s (which has already stocked its shelves and is scheduled to open December 26th) these tenants should flourish. Tenants in the immediate area include Wal-Mart, Big Lots, Staples, McDonald s and Wendy s among others. Traffic counts at this location are approximately 35,000 VPD. Derby is located approximately 60 miles north east of New York City and 8 miles west of New Haven. The Lowe s ground lease fee at this site is also for sale. Please note, all of the properties must be purchased together. Price and Cap: Tenant Roster for Derby, CT Lowe's & Pad Sites Land Size Rent Rent Lease Lease Base Term Tenant GLA Term Options (Acres) per SF per Year Type End Date Escalations NNN Ground Eight - 5 Yr Lowe's 152, $ 4.87 $ 745,000 11/31/ Yrs Lease 10% Every Five Two - 5 Yr Burger King NNN Ground 4, $8.29 $38,250 2/28/2015* 4 Yr, 3 Mo 6.54% on 3/1/ % on 3/1/2015 (franchisee) Lease 5.20% on 3/1/2020 NNN Ground Lease Two - 5 Yr 8.33% on 11/1/ % on 11/1/2014 One 7 Cap Rate 6.50% $ 11,461, % $ 637,500 Webster Bank 2, $10.54 $30,000 10/1/ Yr, 11 Mo 5.75% $ 521,739 Yr 8.57% on 11/1/2019 One - 10 Yr Dunkin Donuts 1, $34.94 $61,035 NNN 6/30/ Yr, 7 Mo 25% on 7/1/2011 w/ 2 bumps 26.31% on 7/1/ % $ 976, % on 7/1/2021 Dollar Tree 8,000 NN - Landlord Two - 5 Yr apprx. 1 $ $ 128,000 responsible for 9/30/ Yr, 3 Mo 4.48% on 10/1/2018 acre roof & structure 4.29% on 3/1/ % $ 1,542,169 Total: 170, Acres $ 1,002, % $ 15,139,506 Properties must be purchased together *BK exercised option early Lease Type: The Lowe s, Burger King and Webster Bank are absolute triple net ground leases. The tenants constructed and paid for the building. Upon lease expiration, ownership of the building reverts to the owner of the land. For the Burger King, Webster Bank and Dunkin Donuts, landlord has absolutely no maintenance, repair or replacement responsibility for the building or land, such responsibility being solely that of the tenant. Landlord is responsible for the roof and structure of the Dollar Tree building which was constructed in All tenants pay taxes directly and insure their properties at no cost to landlord. Price

2 Site Plan

3 Tenants: Lowe s Home Center s, Inc. (NYSE: LOW / S&P: A+): Lowe's Companies, Inc. and its subsidiaries operate as a home improvement retailer in the United States and Canada. The company provides a range of products and services for home decoration, maintenance, repair, remodeling, and property maintenance. It offers home improvement products in various categories, such as appliances, lumber, flooring, paint, millwork, fashion plumbing, building materials, lighting, tools, lawn and landscape products, hardware, seasonal living, cabinets and countertops, home style and organization, rough plumbing, outdoor power equipment, nursery, rough electrical, and home environment. The company's products also include boards, panel products, irrigation pipes, vinyl sidings, and ladders. It serves homeowners and renters, including do-it-yourself and do-it-for-me customers, and others buying for personal and family use; and commercial business customers, such as repair and remodeling contractors, electricians, landscapers, painters, plumbers, and commercial and residential property maintenance professionals. Lowe's also offers its products online. As of February 1, 2008, it operated 1,534 stores in 50 states and Canada. The company was founded in 1952 and is based in Mooresville, North Carolina. Derby Foods, Inc. (franchisee) d/b/a Burger King: Burger King Holdings, Inc., through its subsidiaries, owns and franchises fast food hamburger restaurants. The company offers various food items, such as flame-broiled hamburgers, chicken and other specialty sandwiches, french fries, and soft drinks. As of June 30, 2008, it owned or franchised 11,565 restaurants, of which 1,360 restaurants were company owned and 10,205 were owned by its franchisees. Burger King Holdings has operations in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company was founded in 1954 and is headquartered in Miami, Florida. Webster Bank (NYSE: WBS / S&P: BBB): Webster Financial Corporation operates as the holding company for the Webster Bank that provides commercial banking, retail banking, consumer financing, mortgage banking, trust, health savings accounts, and investment services in the United States. It primarily engages in generating deposits and originating loans. As of December 31, 2007, it operated through 181 banking offices and 343 automated teller machines in Connecticut, Massachusetts, Rhode Island, and New York, as well as through its Internet Web site. The company was founded in 1935 and is based in Waterbury, Connecticut. Dunkin Donuts - DB Real Estate Assets II, LLC - A Wholly Owned Subsidiary of Dunkin Brands, Inc.: DB Real Estate Assets II, LLC has over 100 leased properties and 25 owned properties in this entity. Dunkin Brands, Inc is a multi-concept quick-service franchisor, with more than 13,000 locations in more than 40 countries, including its popular Dunkin' Donuts and Baskin-Robbins chains. With more than 7,900 shops in 30 countries (5,800 of which are in North America), Dunkin' Donuts is the world's leading chain of donut shops. Baskin-Robbins is a leading seller of ice cream and frozen snacks with its nearly 6,000 outlets (about half are located in the US). About 1,100 locations offer a combination of the company's brands. Dunkin' Brands is owned by a group of private investment firms including Bain Capital, The Carlyle Group, and Thomas H. Lee Partners. Dollar Tree, Inc. (Nasdaq: DLTR): Dollar Tree, Inc., through its subsidiaries, operates discount variety stores that offer merchandise at the fixed price of $1.00in the United States. The company operates stores under the names of Dollar Tree, Deal$, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, basic health, and beauty care; household consumables, such as paper, plastics, and household chemicals, as well as frozen and refrigerated food; variety merchandise, which includes toys, durable house wares, gifts, fashion health and beauty care, party goods, greeting cards, apparel, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise, as well as summer toys, and lawn and garden merchandise. As of May 3, 2008, Dollar Tree operated 3,474 discount variety retail stores in 48 states. The company was founded in 1986 and is headquartered in Chesapeake, Virginia.

4 January 2009 Kimco Exchange Place is a subsidiary of Kimco Realty Corporation.

5 Webster Bank Pad Site

6 Burger King Pad Site

7 Dunkin Donuts Pad Site

8 Dollar Tree Pad Site

9 Site prior to redevelopment

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12 Subject Property Subject Property

13 1 Hour Drive Time

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16 DEMOGRAPHIC PROFILE 2000 Census, 2007 Estimates & 2012 Projections Calculated using Proportional Block Groups Lat/Lon: / New Haven Ave Connecticut May mi radius 5.00 mi radius 7.00 mi radius AGE HOUSEHOLDS POPULATION MARITAL STATUS & SEX INCOME 2007 Estimated Population 48, , , Projected Population 49, , , Census Population 47, , , Census Population 45, , ,042 Historical Annual Growth 1990 to % 0.4% 0.3% Projected Annual Growth 2007 to % 0.4% 0.5% 2007 Est. Households 18,854 43, , Est. Households 18,964 43, , Census Households 18,736 43, , Census Households 17,411 40, ,789 Historical Annual Growth 1990 to % 0.5% 0.4% Projected Annual Growth 2007 to % 0.2% 0.3% 2007 Population 0 to 9 Years 12.0% 11.8% 11.9% 2007 Population 10 to 19 Years 12.9% 13.1% 14.2% 2007 Population 20 to 24 Years 5.7% 5.7% 8.1% 2007 Population 25 to 44 Years 27.0% 26.1% 26.2% 2007 Population 45 to 59 Years 21.7% 22.3% 21.0% 2007 Population 60 to 74 Years 12.4% 12.6% 11.4% 2007 Population 75 Years Plus 8.2% 8.3% 7.2% 2007 Est. Median Age Male Population 48.1% 47.9% 48.2% 2007 Female Population 51.9% 52.1% 51.8% Married Base (15yrs+) 39,563 92, ,910 Never Married 25.9% 25.7% 31.3% Now Married 54.4% 54.3% 47.3% Separated, Divorced or Widowed 19.7% 20.0% 21.3% Households with Kids 18.0% 16.8% 16.1% Average Household Size Est. HH Income $200,000 or More 6.1% 6.7% 5.1% 2007 Est. HH Income $150,000 to 199, % 5.7% 5.0% 2007 Est. HH Income $100,000 to 149, % 16.3% 14.5% 2007 Est. HH Income $75,000 to 99, % 14.8% 14.0% 2007 Est. HH Income $50,000 to 74, % 18.7% 18.2% 2007 Est. HH Income $35,000 to 49, % 12.2% 12.6% 2007 Est. HH Income $25,000 to 34, % 8.2% 8.7% 2007 Est. HH Income $15,000 to 24, % 8.5% 9.5% 2007 Est. HH Income $0 to 14, % 8.8% 12.5% 2007 Est. Average Household Income $79,757 $83,146 $73, Est. Median Household Income $68,495 $69,951 $62, Est. Per Capita Income $31,979 $32,825 $28,686 Number of Businesses 1,914 4,904 13,192 Total Number of Employees 18,901 59, ,675 RACE 2007 Estimated Population 48, , , Est. White Population 88.4% 82.4% 73.0% 2007 Est. Black or African American 4.5% 9.9% 17.4% 2007 Est. American Indian & Alaska Native 0.1% 0.1% 0.2% 2007 Est. Asian & Pacific Islander 3.3% 3.5% 4.0% 2007 Est. Two or more and Other Races 3.7% 4.0% 5.5%