kay jewelers - chalmette (new orleans …...kay jewelers 8115 w. judge perez dr chalmette la 70043...

JAMES CAPITAL ADVISORS, INC.KAY JEWELERS - CHALMETTE (NEW ORLEANS MSA), LA

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JAMES CAPITAL ADVISORS

MARKETING PACKAGE

CONTENTS

CONTACT INFORMATION

PAGE

Investment Summary

Retail Aerial

Lease Summary

Rent Schedule

Retail Aerials

Site Plan

About the Brand

Location Overview

Developments

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8115 W. Judge Perez DrChalmette, LA 70043

KAY Jewelers

richard brehautDirector(424) 325-2608

8115 W. JUDGE PEREZ DR., CHALMETTE (NEW ORLEANS, MSA), LA 7004303

KAY JEWELERS - CHALMETTE (NEW ORLEANS MSA), LA

INVESTMENT SUMMARY

Tenant

Street Address

City

State

Zip

GLA

Lot Size

Year Built

$1.4M7.00%$100K

Price / SF

Rent / SF

$600.83

$42.06

KAY Jewelers

8115 W. Judge Perez Dr

Chalmette

LA

70043

2,400 SF

1.00 AC

2017

New Construction; Minimal Landlord Responsibilities - Built in 2017, KAY Jewelers is operating under a long-term lease with landlord responsibilities limited to roof, structure, and utility lines.

Pad to Walmart Supercenter - KAY Jewelers is strategically located as a pad to a 24-hour Walmart Supercenter. Additional national tenants in the center include Raising Cane’s, Capital One, Murphy Oil, Subway and Verizon.

Attractive Rental Increases to Hedge Against Inflation - The lease will feature 10% rent increases every 5 years, giving the landlord the benefit of compounding rent growth throughout the base term and option periods.

#1 Jewelry Store in America - KAY Jewelers is the number one jewelry store in America with more than 1,500 locations.

Corporate Guarantee from Publicly Traded Company - The lease is guaranteed by Signet Jewelers Limited, the world’s largest retailer of diamond jewelry. SIG operates over 3,500 stores in the US, UK, and Canada under the names of KAY Jewelers, Zales, H.Samuel and many more.

New Orleans MSA - Kay Jewelers is only 15 minutes from the French Quarter. Known as the heart of New Orleans, the French Quarter is famous for its vibrant nightlife and colorful buildings.

$1,442,000PURCHASE PRICE

7.00%CAP RATE

$100,943NET OPERATING INCOME



RETAIL AERIAL



LEASE SUMMARY

Lease Type

Type of Ownership

Original Lease Term

Commencement Date

Lease Expiration

Term Remaining

Increases

Options

Real Estate Taxes

Insurance

Roof & Structure

Lease Guarantor

Company Name

Ownership

Years in Business

Number of Locations

Double-Net (NN)

Fee Simple

10 Years

10/6/2017

12/31/2027

7.5+ Years

10% Every 5 Years

Two (2), 5-Year

Tenant Responsible

Tenant Responsible

Landlord Responsible

Corporate

Sterling Jewelers, Inc.

Public

109

1,500+

Strong Infill Demographics - The subject property benefits from strong infill demographics with 64,000 people in three miles and 182,000 people in five miles.

Healthy Mix of Surrounding National Retailers - Major national tenants in the immediate trade area include Walmart Supercenter, The Home Depot, McDonald’s, Popeyes Louisiana Kitchen, Pizza Hut, Dollar Tree, Raising Cane’s and more.

Adjacent to St. Bernard Parish Hospital - The subject property is adjacent to the heart and soul of healthcare in the community. St Bernard Parish Hospital is a 133,000 SF hospital with 100 doctors, 767-beds and an estimated 24,00 annual ER visits.

Excellent Site Level Visibility - The subject property has frontage Louisiana Highway 39, which has daily traffic counts exceeding 23,028 vehicles per day.

Adjacent to New Holiday Inn Express & Suites - Built in 2017, the Holiday Inn Express & Suites Chalmette’s 78 rooms are consistently booked by tourists traveling to New Orleans.

Across from Parc Place Apartment Homes - Parc Place Apartment Homes is a 97% leased, 174,240 SF apartment community that consists of 72 units.

St. Bernard Parish Hospital



RENT SCHEDULE

PERIOD

10/6/2017 - 12/31/2022

01/01/2023 - 12/31/2027

01/01/2028 - 12/31/2032

01/01/2033 - 12/31/2037

TERM

Base Term

Base Term

1st Option

2nd Option

ANNUAL RENT

$100,943

$111,037

$122,141

$134,355

MONTHLY RENT

$8,412

$9,253

$10,178

$11,196

INCREASE

-

10%

10%

10%

CAP RATE

7.00%

7.70%

8.47%

9.32%



RETAIL AERIAL



SITE PLAN



ABOUT THE BRAND

About Signet JewelersSignet Jewelers is the world’s largest retailer of diamond jewelry and the largest specialty jewelry retailer in the US, UK and Canada. It began as Ratner Group and eventually formed into Signet Jewelers. They are domiciled in Bermuda and headquarted in Akron, Ohio while also being on the New York Stock Exchange. Signet operates approximately 3,556 stores primarily under the name brands of Kay Jewelers, Zales, Jared, H.Samuel, Ernest Jones, Peoples Jewellers, Piercing Pagodaand JamesAllen.com. The company’s annual sales of $6.25 billion derive from the retailing of jew-elry, watches and associated services. Signet Jewelers operates through three segments: North America, International, and Other. The North America segment operates stores in malls and off-mall locations. In the international segment, they mostly operate under the H.Samuel and Ernest Jones brands.

About Kay JewelersKay Jewelers originally began more than 100 years ago with the mission to be the symbol of love and gratitude. Their first store opened up in Reading, PA in 1916 with the hopes of bringing their clientele gifts that could make anyone smile. Back then, Kay Jewelers focused on eyeglasses, music boxes, silverware, appliances and razors. Now, they operate over 1,000 stores that focus on diamond jewelery from coast to coast. Their devotion for providing beautiful, affordable and accessible jewelry to everyone has made KAY Jewelers the most popular and successful diamond jewelery company in the world. From classic must-haves to the latest fashions, their selection of quality jewelry is second to none. Just like the friendly, knowledgeable jewelry consultants in every KAY store who are dedicated to helping you find the perfect expression of your love and gratitude.

13K+13,901+EMPLOYEES 1.5K1,500

LOCATIONS$2.5B$2.5BREVENUE

77BRANDS 3K3,556LOCATIONS$6M$6.2M

REVENUE



NEW ORLEANS MSA

New Orleans MSA Located east of downtown New Orleans, Chalmette is part of the New Orleans–Metairie–Kenner Metropolitan Statistical Area.

Consistent Tourism Growth 2018 was the seventh year in a row of record-breaking state tourism numbers. New Orleans had 51.3 million tourists visit the city in 2018, a year over year increase of 9% compared to 2017.

Award Winning Tourism New Orleans was #1 on TripAdvisor’s list of “10 Best Foodie Vacations in the USA”, May 2018. The New York Times also featured New Orleans as their #1 destination on their list of “52 Places to Go in 2018”, Jan 2018.

New Orleans Saints The New Orleans Saints are a professional NFL team based in New Orleans. The Saints compete as a member of the league’s NFC South division.

Mercedes-Benz SuperdomeThe Mercedes Benz Superdome is the home to the New Orleans Saints football team and is the largest fixed dome structure in the world with a diameter of 680 feet and holds a capacity of 78,133.

Mardi GrasOver 1 million people flock to New Orleans annually for Mardi Gras. Mardi Gras generates over $1 billion in annual spending.

Mercedes-Benz Superdome - Capacity of 78,133



Greater New OrleansGreater New Orleans regions consist of 10 parishes - each enjoying its own character, attractions, and strategic business advantages as well as provide a compelling platform to compete on a global scale.

Fourth Largest Port in the U.S.The Port of New Orleans is a modern Multimodal gateway for global trade and a thriving port for cruise passengers. Port Nola has access to 30+ major inland hubs such as Memphis, Chicago, and Canada via 14,500 miles of waterways, 6 Class I railroads, and interstate roadways.

Healthcare Explosion in New OrleansGreater New Orleans was recently ranked first in the nation for healthcare growth. From 2007 - 2017, jobs in this sector have increased by 78 percent, and research by GNO, Inc. predicts that healthcare will continue to be the top sector for job growth in the region through at least 2026.

Thriving Population GrowthNew Orleans has seen an annual population growth of 7,000 for the past seven years, with the total population expected to reach 418,000 by 2020.

Explosive Residential DevelopmentThrough a state-funded program, Housing for a Resilient New Orleans, 7,500 affordable housing units will be built by 2021, showing support for rental and ownership opportunities.

Greater NEW ORLEANS OVERVIEW

Port NOLA is the sixth-largest cruise port in the United States.

Connects U.S. river traffic and global routes via the Mississippi River and Gulf of Mexico.

One of the largest container terminals along U.S. Gulf Coast.

Moved more containers in 2018 than at any time in its history, totaling 591,253 twenty-foot equivalent units, up to 12.3% compared to previous years.

Port is 1 in 4 cities in the United States that owns a railroad, greatly enhancing its competitive advantage.



1. French QuartersFrench Quarters, New Orleans, LA 70116

6 MILES FROM SUBJECT PROPERTY

2. Mercedes-Benz Superdome1500 Sugar Bowl Dr, New Orleans, LA 70112

7.5 MILES FROM SUBJECT PROPERTY

3. Aquarium of the Americas1 Canal St, New Orleans, LA 70130


4. Jackson Square701 Decatur St, New Orleans, LA 70116


5. National WWII Museum945 Magazine St, New Orleans, LA 70130


6. Audubon Zoo6500 Magazine St, New Orleans, LA 70118

12 MILES FROM SUBJECT PROPERTY

LOCATION OVERVIEW



LOCATION OVERVIEW

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04

02

05

03

06

French QuartersThe French Quarter is the oldest neighborhood in the city of New Orleans & a prime tourist destination in the city.

Jackson SquareThis timeless attraction sits in the heart of the French Quarter of New Orleans and is a fan favorite for locals and visitors.

Mercedes-Benz SuperdomeThis domed sports and exhibition stadium located in the Central Business District of New Orleans has a capacity of 78,000+.

National WWII MuseumThis museum offers a compelling blend of sweeping narratives, poignant personal detail, immersive exhibits & experiences.

Aquarium of the AmericasAquarium of the Americas is consistently top ranked, voted as one of the top five in the country in the USA Today “10Best”.

Audubon ZooThis popular exhibit & zoo run by the Audubon Nature Institute covers 58 acres and is home to 2,000 animals.



DEMOGRAPHICS

POPULATION

2024 Projection

2019 Estimate

2010 Census

Growth ‘19 - ‘24

Growth ‘10 - ‘19

HOUSEHOLDS

2024 Projection

2019 Estimate

2010 Census

Growth ‘19 - ‘24

Growth ‘10 - ‘19

Average Income

Median Income

3-Mile

66,820

64,023

52,101

4.37%

22.88%

3-Mile

24,991

23,994

19,772

4.16%

21.35%

$56,290

$41,109

1-Mile

7,842

7,448

5,873

5.29%

26.82%

1-Mile

2,768

2,637

2,113

4.97%

24.80%

$49,053

$38,529

5-Mile

188,744

182,765

158,389

3.27%

15.39%

5-Mile

73,860

71,667

62,961

3.06%

13.83%

$56,146

$37,685



New Orleans International AirportAfter seven years of planning, the $1 billion, 35-gate North Terminal, intended to replace the current airport, remains one of New Orleans’ largest projects. . The new terminal complex is now nearly complete at Louis Armstrong New Orleans International Airport (MSY). The $1 billion, 35-gate terminal will provide an improved passenger experience showing off the spirit of New Orleans throughout the facility through the presence of live music and local restaurants that characterize New Orleans’ distinct culture. When the new facility opened on November 6, 2019, all operations moved to the new location on the other side of the airport runways.

Children’s Hospital’s ExpansionThe first phase of a $300 million expansion of the state’s only freestanding children’s hospital began in 2018. Construction is in progress for a four-story tower at the hospital’s Uptown campus that will include two operating rooms, a cardiac intensive care unit, 28 private beds, and a radiology suite. Included in the expansion are a same-day surgery unit, a neonatal cardiac intensive care unit, a cancer center, a 400-car garage, and a newly designed entrance and lobby. The project is scheduled to be completed in 2021. When the four-year, $300 million project is completed, the hospital’s campus will feature nearly a million square feet of newly constructed or renovated space.

DEVELOPMENTS

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The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. & Brian Brockman (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto. The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or com-parable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITYThis Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASEThis Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENTBroker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

JAMES CAPITAL ADVISORS, INC.

DISCLAIMER

richard brehautDirector

(424) [email protected] RE Lic. 01934760

Brian BrockmanBroker of Record

(513) [email protected] RE Lic #: BROK.0995684990-ASABang Realty, IncCincinnati, OHCORP. Lic #: BROK.0995684693-CORP

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kay jewelers - chalmette (new orleans …...kay jewelers 8115 w. judge perez dr chalmette la 70043...

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