downtown raleigh 2 miles property video · beauty/hair salon copy center optometrist restaurant/bar...

SUBJECT PROPERTY

DOWNTOWN RALEIGH2 MILES

56,000 VPD

OFFERING MEMORANDUM

SUNRISE AVE | REDEVELOPMENT SITE RALEIGH, NORTH CAROLINA

PROPERTY VIDEO

http://amretailgrp.com/raleigh_warehouse.php

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.

Activity ID: ZAA0780010

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PROPERTY DESCRIPTION

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PROPERTY OVERVIEW

1501 & 1511 SUNRISE AVERALEIGH, NC

Parcel ID (Warehouse) 1704769829

Parcel ID (Adj. Land) 1704766667

Year Built 1954*

Gross Leasable Area (GLA) (Warehouse) 45,808 SF

Lot Sizes (Total) 3.07 Acres

Lot Size (Warehouse) 2.35 Acres

Lot Size (Adj. Land) 0.72 Acres

2018 Taxes (Warehouse) $15,042.01

2018 Taxes (Land) $820.35

Opportunity Zone No

Zoning IX-3

Year One NOI $181,831

*Year Built Based on Wake County Tax Records

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Marcus & Millichap is pleased to present for sale a 45,808 square foot warehouse building and additional land for development. The offering consists of two (2) parcels totaling 3.07 acres. The warehouse building sits on 2.35 acres and was constructed in 1954. The building is 98-percent leased and features first floor warehouse space and basement spaces. There is also one (1) vacant unit of 800+/- square feet which could be used as a retail bay if a new owner spends significant dollars to improve the space. Both parcels are zoned IX-3 and allows multiple uses including multi-unit living, office, medical, retail, warehouse and distribution, and light industrial/manufacturing.

The subject property is located near the intersection of Sunrise Avenue and Carson Street adjacent to an active rail line and a new construction CubeSmart Self Storage facility. There are multiple rehab projects that have occurred in the immediate area and directly across the street (on Carson Street) will be the future home of a 32-unit townhome project. Nearby points of interest include Larry’s Coffee, Neuse River Brewing Company, and more. The Five Point neighborhood is located immediately adjacent to the subject property and Downtown Raleigh is within two (2) miles of the subject property. North Hills, a 100+ acre lifestyle center is approximately three (3) miles from the subject property Multi-Family, Office and Retail including Target, REI, and Harris Teeter. In addition, Duke Raleigh Hospital (369 beds) is located four (4) miles from the subject property.

Raleigh is the capital city of North Carolina and the county seat of Wake County. It is the second largest city in the state. Raleigh is home to North Carolina State University and is part of the Research Triangle Park (RTP). The city’s downtown area has seen major development over the last few years with more than 51 projects proposed, currently under contract, or completed since 2016. The city is also part of the Raleigh-Durham-Chapel Hill metro with major employers that include Duke University and Health System, IBM Corp., WakeMed Health and Hospitals, Cisco Systems Inc., Rex Healthcare, SAS Industries Inc., GlaxoSmithKline, Affiliated Computer Services, Wells Fargo, and Blue Cross Blue Shield of North Carolina.

PROPERTY OVERVIEW• 45,808 Square Foot Warehouse Building +

Additional Land for Development

• 98-Percent Occupied| Two (2) Parcels Totaling 3-Acres Inside the Beltline (I-440)

• Short Leases Offer Reposition/Value-Add Flexibility for a New Owner

• 55-Percent of Space Has Been Occupied by Same Tenants for 14+ Years

• Both Parcels are Zoned IX-3 Offering a Variety of Redevelopment Opportunities

• New Townhome Project (32-Units) Recently Approved Across The Street

• Immediately Adjacent to Five Points Neighborhood | $101,000 Average Household Incomes within One Mile Radius

• Two Miles to Downtown Raleigh | Three Miles to North Hills/Midtown Raleigh (Target, Harris Teeter, and More)

• More Than 95,000 People within Three Mile Radius

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ALLOWED ZONING USES

ZONING PERMITTED USES: IX-3 Multi-Unit Living

Multi-Unit Supportive Housing ResidenceSupportive Housing Residence

Group LivingSpecial Care Facility

CemeteryCollege, Community College, University

School, Public or Private (K-12)Parks, Open Space, Greenway

Day CareHealth Club

Sports Academy

ZONING PERMITTED USES: IX-3 MedicalOffice

OutdoorOvernight Lodging

Parking - Commercial LotHeliport, serving Hospitals

Beauty/Hair SalonCopy CenterOptometrist

Restaurant/BarRetail Sales

Light Industrial

ZONING PERMITTED USES: IX-3 Research & Development

Light ManufacturingCar Wash

Vehicle RepairWarehouse & Distribution

Community GardenProduce Stand

UNDERWOOD GT MAGNET ELEM. SCHOOL

SAINT AUGUSTINE’S UNIVERSITY


NEEDHAM BROUGHTONHIGH SCHOOL

NEUSE RIVERBREWING COMPANY

ST. DAVID’S SCHOOL

FOOD BANK OF EASTERN NC

JOYNER ELEM. MAGNET SCHOOL

DUKE RALEIGH HOSPITAL369 BEDS

FIVE POINTS1 MILE

WILLIAM PEACEUNIVERSITY

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Address Property Name Lot Size Zoning Notes Status

1 1500, 1512, 1520 Carson St Carson Street Multi-Family 2.20 RX-3-CU 32 Townhomes, Ourdoor Amenity

Area, Max 3 Stories Approved

2 506 Pershing Road Update Existing Space 0.29 IX-2 Update Existing Space to Taproom/Bar

Review in Progess

3 1515 Gavin Street Flake & Crumb 0.28 IX-3 New Bakery Open for Business

4 2019 Fairview Road 2019 Fairview Condos 0.35 OX-3-DE 5 Multi-Family Units Review in Progess

5 1803 Glenwood Ave Lola's Beach Bar 0.02 NB Restaurant/Bar Open for Business 8

MARKET OVERVIEW

SURROUNDING AREA DEVELOPMENT

SUBJECT PROPERTY

FIVE POINTSNEIGHBORHOOD

$300K - $1.7M HOME PRICESDOWNTOWN RALEIGH2 MILES

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FACING NORTH

SUBJECT PROPERTY


56,000 VPD

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FACING WEST

SUBJECT PROPERTY


56,000 VPD


$300K - $1.7M HOME PRICES

NORTH HILLS3 MILES

SUBJECT PROPERTY

FUTURE 32 UNIT TOWNHOME

DEVELOPMENT

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FACING NORTHWEST

SUBJECT PROPERTY

COLORGRAPHICS

CONTENTAL GOLF

56,000 VPD

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FACING SOUTH NORTH HILLS (3 MILES)


LARRY’S COFFEE

NEUSE RIVER BREWING COMPANY

JOE MOORE & COMPANY, INC.

SUBJECT PROPERTY


DEVELOPMENT



SUBJECT PROPERTY

COLORGRAPHICS

CONTENTAL GOLF

56,000 VPD

NORTH HILLS (3 MILES)


LARRY’S COFFEE

NEUSE RIVER BREWING COMPANY

JOE MOORE & COMPANY, INC.

SUBJECT PROPERTY


DEVELOPMENT



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FACING EAST

SUBJECT PROPERTY


$300K - $1.7M HOME PRICES56,000 VPD


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FACING WEST

SUBJECT PROPERTY


$300K - $1.7M HOME PRICES56,000 VPD


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SUBJECT PROPERTY ROOF

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AVAILABLE RETAIL SPACE: 800 +/- SF

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ENVIRONMENTAL DISCLOSURE

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MARKET OVERVIEW

AREA HIGHLIGHTS

HIGHLY SKILLED WORKFORCENumerous world-renowned colleges and universities are located in the metro and contribute to an educated labor pool.

AFFORDABLE COST OF LIVINGA metro median home price of roughly $265,000 is lower than many other East Coast communities.

HIGH-TECH EMPLOYMENTThe Research Triangle Park attracts and fosters high-tech and biotechnology firms.

MAJOR EMPLOYERS• Duke University and Health System

• IBM Corp.

• WakeMed Health and Hospitals

• Cisco Systems Inc.

• Rex Healthcare

• SAS Institute Inc.

• GlaxoSmithKline

• Affiliated Computer Services

• Wells Fargo

• Blue Cross Blue Shield of North Carolina

RALEIGH/DURHAMNORTH CAROLINA

The Raleigh-Durham-Chapel Hill metro is located in the north-central portion of North Carolina where the North American Piedmont and Atlantic Coastal Plain regions join. The area is approximately two hours west of the Atlantic Ocean and four hours east of the Appalachian Mountains. The metro is composed of 11 counties: Wake, Durham, Johnston, Chatham, Orange, Franklin, Harnett, Vance, Granville, Lee and Person. The market has a population of nearly 2.2 million people, nearly half of whom live in Wake County. Raleigh, home to the state capitol, is the most populous city in the metro with approximately 458,000 citizens. Durham is the second largest with 260,800 residents.

• Primary to the Raleigh-Durham-Chapel Hill economy is the Research Triangle Park (RTP), spanning 7,000 acres and home to more than 200 global companies that employ roughly 50,000 workers.

• In addition to a thriving life-sciences sector, the metro is home to one of the fastest-growing CleanTech clusters, with a host of companies focused on smart grid technologies, electric vehicles and renewable energy.

• The metro ranks high in tech jobs, partially attributed to three Tier 1 universities: Duke University, North Carolina State University and University of North Carolina at Chapel Hill.

ECONOMY

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MARKET OVERVIEW

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City Market

ON THE MAP | DOWNTOWN DEVELOPMENT 2016 TO PRESENT

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LEGEND

Development Type

Public Project

Office

Mixed Use

Residential

Hotel

Retail and Service

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42

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7

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927

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26

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35

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28

18

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38

2021

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29 36

24

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51

31

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Source: Triangle Business Journal

DEVELOPMENT NAME NOTES

COMPLETED

1 ALBERMARLE BUILDING RENOVATION 192,370 SF Office

2 CHRIST CHURCH ADDITION 9,400 SF Place of Worship

3 DR. PEPPER WAREHOUSE 14,000 SF Office

4 EDISON LOFTS 223 Units Mixed-Use

5 ELAN CITY CENTER APARTMENTS 213 Units Apartments

6 GOOGLE FIBER OFFICE 9,926 SF Office

7 GORALEIGH TRANSIT Infrastructure

8 LINK APARTMENTS 203 Units Apartments

9 MARKET AND EXCHANGE PLAZAS Unannounced

10 NORTH WEST STREET DEVELOPMENT 24,000 SF Renovation

11 RESIDENCE INN BY MARRIOTT 175 Room Hotel

12 THE DEVON FOUR25 261 Units Apartments

13 THE GRAMERCY 203 Units Apartments

14 TONBO RAMEN 3,270 SF Restaurant


UNDER CONSTRUCTION

15 10 ARROS 10 Units Townhomes

16 THE SAINT 17 Units Townhomes

17 502 WEST LENOIR 4,583 SF Restaurant

18 611 WEST SOUTH 42 Units Residential

19 REVISN 48 Units Apartments

20 CAPITAL BLVD BRIDGES Infrastructure

21 CAPITAL BLVD SELF STORAGE 123,000 SF

22 HARGETT PLACE 19 Units Townhomes

23 MOORE SQUARE RENOVATION 4 Acres

24 MORGAN STREET FOOD HALL 22,000 SF

25 ONE GLENWOOD 234,000 SF Mixed-Use

26 PEACE 417 Units Residential

27 POYNER YMCA 28,000 SF

28 SELF STORAGE FACILITY 123,000 SF

29 THE DILLON 541,000 SF / 260 Units

30 THE METROPOLITAN 241 Units Apartments

31 THE ORIGIN HOTEL 126 Rooms Hotel

32 THE WARE 15 Units Residential

33 TRANSFER CO. 42,000 SF Retail

34 UNION STATION 42,000 SF Mixed-Use

35 WEST + LENOIR TOWNHOMES 12 Units Townhome


PLANNED

36 107 W HARGETT STREET Office / Retail

37 400H 160,000 SF / 216 Units Mixed-Use

38 BOUTIQUE HOTEL ON PEACE 60 Rooms Hotel

39 BOYLAN PEARCE BUILDING 31,820 SF Office

40 CITY GATEWAY / EXPLORIS SCHOOL 355,889 SF

41 COURTYARD MARRIOTT 192 Rooms Hotel

42 EDISON OFFICES 303,000 SF

43 FNB TOWER 389,702 SF / 239 Units Mixed-Use

44 FOURTH WARD 10 Units Townhomes

45 HILTON GARDEN INN / HOMEWOOD SUITES 259 Rooms Hotel

46 HOTEL AT WILMINGTON AND LENOIR 145 Rooms Hotel

47 NORTH CAROLINA FC STADIUM Stadium / Office / Residential

48 PEACE STREET STREETSCAPE PROJECT Infrastructure

49 ST. MARY’S SUBDIVISION 6 Units Townhomes

50 THE FAIRWEATHER 45 Units Townhomes

51 THE WILLARD 125 Rooms / 25 Units Hotel/Condo

DOWNTOWN RALEIGH DEVELOPMENT

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PRICING & FINANCIAL ANALYSIS

PROPERTY OVERVIEWPROPERTY NAME SUNRISE AVE REDEVELOPMENT SITE

PROPERTY ADDRESS 1501 & 1511 SUNRISE AVERALEIGH, NC

Price Market to Set

Year One NOI $181,831


Parcel ID (Warehouse) 1704769829

Parcel ID (Adj. Land) 1704766667

Year Built 1954*

Gross Leasable Area (Warehouse) 45,808 SF

Lot Sizes (Total) 3.07 Acres

Lot Size (Warehouse) 2.35 Acres

Lot Size (Adj. Land) 0.72 Acres

2018 Taxes (Warehouse) $15,042.01

2018 Taxes (Land) $820.35

Opportunity Zone No

Zoning IX-3

*Year Built Based on Wake County Tax Records

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DEMOGRAPHIC ANALYSIS

1 Mile 3 Mile 5 Mile2000 Households 5,329 32,263 76,8682010 Households 5,262 32,544 89,0642016 Households 5,718 36,727 100,0432021 Households 5,723 37,432 105,994

1 Mile 3 Mile 5 Mile2010 Owner Occupied Housing Units 58.6% 49.1% 47.9%2010 Renter Occupied Housing Units 41.4% 50.9% 52.1%2016 Owner Occupied Housing Units 57.5% 47.8% 46.4%2016 Renter Occupied Housing Units 42.5% 52.2% 53.6%2021 Owner Occupied Housing Units 57.3% 47.6% 46.3%2021 Renter Occupied Housing Units 42.8% 52.4% 53.7%

1 Mile 3 Mile 5 Mile2000 Population 10,781 79,166 191,2732010 Population 11,067 86,594 225,1292016 Population 11,944 95,030 250,0132021 Population 11,918 95,396 261,859

1 Mile 3 Mile 5 Mile$ 0 - $14,999 11.2% 17.0% 13.8%$ 15,000 - $24,999 7.8% 11.9% 11.8%$ 25,000 - $34,999 8.2% 10.1% 11.6%$ 35,000 - $49,999 13.0% 11.9% 14.4%$ 50,000 - $74,999 17.8% 13.7% 16.4%$ 75,000 - $99,999 11.1% 9.5% 11.2%$100,000 - $124,999 9.1% 7.6% 7.5%$125,000 - $149,999 5.0% 4.6% 4.1%$150,000 - $199,999 6.5% 5.5% 4.2%$200,000 - $249,999 4.3% 3.4% 2.2%$250,000 + 6.1% 4.8% 2.9%Median HH Income $64,177 $48,897 $48,289Per Capita Income $49,259 $35,332 $30,673Average HH Income $101,533 $86,025 $74,306

Click Here for Full Demographic Report

https://www.dropbox.com/s/oq6atryi0l2k63h/Complete%20Demographic%20Report.pdf?dl=0

EXCLUSIVELY LISTED BY:ANDREW MARGULIESRALEIGH, NC OFFICEFirst Vice President | InvestmentsSenior Director, National Retail GroupCell: (312) [email protected] License: 264059IL License: 475147606

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