north hill crossing blowing rock blvd 1009lenoir, nc · north hill crossing is a 17,000 square foot...

North Hill CrossingOffering MemorandumFor Sale | Investment Opportunity

BLOWING ROCK BLVDLENOIR, NC

1009

PRESENTED BY:Creighton StarkSenior Vice President | Office & Medical Investment Sales dIrect +1 214 706 6029 eMaIl [email protected]

James AnthonyceO dIrect +1 919 582 3100 eMaIl [email protected]

Table of Contents

> INvESTmENT ovERvIEwInvestment Overview ................................................................................................................ 5

> lEASE INfoRmATIoNrent roll ..................................................................................................................................... 7

> offERING SummARYOffering Summary .................................................................................................................... 9

> PRoPERTY INfoRmATIoNlocation Overview ..................................................................................................................... 11Property Photos ..........................................................................................................................12aerials .......................................................................................................................................... 13 location Map ...............................................................................................................................14Site Plan ..................................................................................................................................... 15

> SAlES ComPARABlESaerials .......................................................................................................................................... 16

> DEmoGRAPHICSdemographics ............................................................................................................................. 19

> DISCloSuREdisclosure ................................................................................................................................... 22


COLLIERS INTERNATIONAL

> Investment Overview

North Hill crossing is a 17,000 square foot retail shopping center in lenoir, North carolina. the center is shadow-anchored by a Walmart Supercenter and is currently 81.76% leased to both national and local credit tenants. the property was built in 2008, and opened in January 2009, encompasses 2.08 acres and offers an investor immediate upside through leasing up the vacancies.

the property is strategically located along lenoir’s busiest retail corridor and benefits from the synergy that comes with proximity to Walmart. located directly in the path of commercial retail growth, North Hill crossing is expected to continue flourishing through this dynamic community’s progressive environment. this is truly a rare investment opportunity.

INvESTmENT HIGHlIGHTS

> Shadow-anchored by 204,000 square foot Walmart Supercenter

> Great accessibility and tremendous visibility

> traffic counts of more than 50,000 cars per day

> Strong, stable and growing local economy

> Significant upside through leasing

> Good credit tenancy

> Solid investment opportunity

Investment Overview

INvESTmENT SummARY

cOllIerS INterNatIONal P. 4NoRTH HIll CRoSSING - lenoir, NC | OFFerING MeMOraNdUM



> Lease Information

Rent Roll

BaSe reNt

Suite Tenant GLA % of GLA Lease Commence

Lease Expire Annual Rent Rent pSf Expense

Reimbs110 Carolina West

Wireless1,850 10.88% 6/5/09 9/30/14 $33,300.00 $18.00 $7,400.00

120 GameStop, Inc. 1,500 8.82% 2/1/09 1/31/14 $36,000.00 $24.00 $6,000.00

130 Sally Beauty, Inc. 1,500 8.82% 1/31/09 3/31/14 $24,750.00 $16.50 $6,000.00

140 Vacant* 1,550 9.12% $15.50

150 petsense, Inc. 5,000 29.41% 11/17/09 3/31/15 $76,250.04 $15.25 $20,000.00

160 Vacant* 1,550 9.12% $15.50

190 Lin fei dba China Buffet

4,050 23.82% 12/1/11 2/28/21 $51,637.50 $12.00 $16,200.00

TOTAL VACANT 3,100 18.24%

TOTAL OCCUpIED 13,900 81.76% $221,937.54 $67,999.00

TOTAL 17,000 100% $221,937.54 $67,999.00

lEASE INfoRmATIoN


*estimated cost to complete each space to “vanilla box” standard is $30,000, or a total of $60,000. this is an excellent cost to the Buyer if the spaces are not leased before transfer.



> Offering Summary

PRICING:

Price $2,673,946

down Payment 100% ($2,673,946), Buyer must obtain their own financing.

Price per Square Foot (Gla) $157.29

Gross leasable area (Gla) 17,000 Square Feet

Year Opened 2009

lot Size 2.085 acres

Parking 81 spaces

Net Operating Income (current)(forward 2011) $221,937

Net Operating Income (fully leased) $266,950

cap rate 8.3%

Offering Summary

offERING SummARY


EXPENSES

Current Per Sf Pro forma Per SfReal Estate Taxes $ 17,304 $1.05 $17,824 $1.05

Insurance 7,486 0.44 6,509 0.38

CAM

Utilities 7,801 0.46 8,000 0.45

Repairs & Maintenance 4,682 0.28 7,440 0.44

Contract Services 21,300 2.19 21,300 1.54

Total NNN $82,102 $4.51 $67,999 $3.86



> Property Information

Location Overview

PRoPERTY INfoRmATIoN


lenoir is a city in caldwell county, North carolina, United States. the population was 16,793 at the 2000 census, but has since grown to nearly 18,000. It is the county seat of caldwell county. lenoir is located in the Blue ridge foothills at an elevation of approximately 1100 feet above sea level. the city also contains the Brushy Mountains, a spur of the Blue ridge Mountains. Hibriten Mountain, located within the city limits of lenoir, marks the western end of the Brushy Mountains range. the city was named for revolutionary War figure and early North carolina statesman General William lenoir, who lived nearby. His restored home is a tourist attraction.

Nestled in the foothills of North carolina, caldwell county has a quiet, slow paced lifestyle and a temperate climate. Part of the greater Hickory Metro, the county enjoys the amenities and conveniences of small city life. Yet, travel a few miles and you are in remote and scenic Wilson creek, a national wilderness area. caldwell county offers an economy that is in transition from its historic furniture manufacturing roots to one that is knowledge and healthcare based. caldwell county boasts a growing technology base but also maintains an experienced workforce well trained in manufacturing, ranking the area among the best counties in Nc for potential economic growth in.

caldwell county offers companies interested in relocating a business to North carolina the best of all worlds. as well as an enviable quality of life, caldwell county also offers businesses looking to tap into North carolina employment resources a significant advantage in economic and job development grants and business relocation incentives. together, these factors uniquely position caldwell county as a market with what is among the best potential for economic growth in North carolina. With an abundance of natural beauty and only minutes from the Blue ridge Mountains, the county is well positioned for service ventures as well.

> lenoir is one of the principal cities in the Hickory-lenoir-Morganton, Nc Metropolitan Statistical area

> lenoir was one of the recipients of the 2008 all-america city award

ECoNomY

the Broyhill Furniture company, one of the largest furniture companies in the United States and part of Furniture Brands International, has its headquarters in lenoir and has historically been one of the town’s largest employers. the Bernhardt and Fairfield furniture companies are also located in lenoir. However, in the 1990s, these companies began outsourcing some work overseas, and they have closed several of lenoir’s furniture factories and laid off workers. Now, the medical and education sectors are the largest employers in the area.

Google, Inc. has opened a server farm in lenoir. there was a lot of controversy about the nature and amount of economic development incentives the city, caldwell county and the State of North carolina gave Google to induce them to build the server farm. the project was hoped to boost the local economy and provide jobs for the area, however the number of jobs have been less than anticipated.

GEoGRAPHY

the community is blessed with abundant forests and topography that is typical of the foothills of the Blue ridge Mountains. the city sits at the crossroads of Nc Highway 321 and US 64/90, about 16 miles northwest of Hickory, North carolina on I-40, North carolina’s main east/West route. lenoir also is approximately 17 miles from Blowing rock, one of North carolina’sbest known summer retreat mountain towns.

> according to the United States census Bureau, the city has a total area of 16.6 square miles (42.9 km).

Property Photos



Aerial Map



Location Map

Copyright © and (P) 1988–2006 Microsoft Corporation and/or its suppliers. All rights reserved. http://www.microsoft.com/mappoint/Portions © 1990–2005 InstallShield Software Corporation. All rights reserved. Certain mapping and direction data © 2005 NAVTEQ. All rights reserved. The Data for areas of Canada includes information taken with permission from Canadian authorities, including: © Her Majesty the Queen in Right of Canada, © Queen's Printer for Ontario. NAVTEQ and NAVTEQ ON BOARD are trademarks of NAVTEQ. © 2005 Tele Atlas North America, Inc. All rights reserved. Tele Atlas and Tele Atlas North America are trademarks of Tele Atlas, Inc.

North Hill Crossing Map

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North Hill Crossing Map

0 mi 0.2 0.4 0.6 0.8



Site Plan



SPACE AVAILABLE

ACCES

S DRI

VE

SITE DATAParcel lot 4Acres (+/-) 2.085Building Sf 17,000Parking Spaces 81

1,550 SF

1,550 SF



> Sales Comparables

Sales Comparables

INDIAN lAkE mARkET SHoPS | wAlmART SHADowED206 North Anderson lane, Hendersonville, TN 37075 Closing Date 8/20/2008 Major Tenants

Year Built 2007 Anytime fitness

Gross leasable Area (GlA) 26,026 Sf porter paints

Sale Price $6,402,500 fulin’s Asian

Percent Down 35% Carpet Concepts

CAP Rate 7.41% Ma & paw’s pet Supply

Price PSf $246.00 Zoe & friends Boutique

lot Size 5 Acres

1

2

NORTH HILL CROSSING1009 Blowing Rock BoulevardLenoir, NC 28645

LEXINGTON SHOPPING CENTER206 Lowes BoulevardLexington, NC 27292

INDIAN LAKE MARKET SHOPS | WALMART SHADOWED206 North Anderson LaneHendersonville, TN 37075

COMMENTSA 31,200-square foot, Class "A" shopping center located in Lexington, North Carolina. Lexington Shopping Center is 100 percentoccupied by national and regional tenants.

COMMENTSIndian Lake Market Shops is a fully occupied, multi-tenant retail center shadow-anchored by a new Walmart Supercenter locatedin Hendersonville, Tennessee.

Close of Escrow: 8/20/2008 Major TenantsYear Built: 2007 Anytime FitnessGross Leasable Area (GLA): 26,026 SF Porter PaintsSale Price: $6,402,500 Fulin's Asian CuisinePercent Down: 35% Carpet ConceptsCAP Rate: 7.41% Ma & Paws Pet SupplyLot Size: 5 Acres Zoe & Friends Boutique

Close of Escrow: 1/20/2009 Major TenantsYear Built: 2006 Great ClipsGross Leasable Area (GLA): 31,200 SF Sally's Beauty SupplySale Price: $5,750,000 GameStopPercent Down: 55% All That's WirelessCAP Rate: 8.14% La CarretaPrice/SF (GLA): $184.29 Shoe ShowLot Size: 5.19 Maurices

SUBJECT PROPERTY

NORTH HILL CROSSINGLENOIR, NC

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed orimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services, Inc. © 2010 Marcus & Millichap R0060158

RECENT SA

LES

Year Built: 2008Gross Leasable Area (GLA): 17,000 SFOffering Price: $2,950,000Percent Down 100%CAP Rate: 8.69%Price/SF (GLA): $173.53Lot Size: 2.085 Acres

17

Recent Sales

2

lEXINGToN SHoPPING CENTER206 lowes Blvd., lexington, NC 27292 Closing Date 1/20/2009 Major Tenants

Year Built 2006 Great Clips

Gross leasable Area (GlA) 31,200 Sf Sally’s Beauty Supply

Sale Price $5,750,000 GameStop

Percent Down 55% All That’s Wireless

CAP Rate 8.14% La Carreta

Price PSf $184.29 Shoe Show

lot Size 5.19 Acres Maurices

1

2

NORTH HILL CROSSING1009 Blowing Rock BoulevardLenoir, NC 28645

LEXINGTON SHOPPING CENTER206 Lowes BoulevardLexington, NC 27292

INDIAN LAKE MARKET SHOPS | WALMART SHADOWED206 North Anderson LaneHendersonville, TN 37075

COMMENTSA 31,200-square foot, Class "A" shopping center located in Lexington, North Carolina. Lexington Shopping Center is 100 percentoccupied by national and regional tenants.

COMMENTSIndian Lake Market Shops is a fully occupied, multi-tenant retail center shadow-anchored by a new Walmart Supercenter locatedin Hendersonville, Tennessee.

Close of Escrow: 8/20/2008 Major TenantsYear Built: 2007 Anytime FitnessGross Leasable Area (GLA): 26,026 SF Porter PaintsSale Price: $6,402,500 Fulin's Asian CuisinePercent Down: 35% Carpet ConceptsCAP Rate: 7.41% Ma & Paws Pet SupplyLot Size: 5 Acres Zoe & Friends Boutique

Close of Escrow: 1/20/2009 Major TenantsYear Built: 2006 Great ClipsGross Leasable Area (GLA): 31,200 SF Sally's Beauty SupplySale Price: $5,750,000 GameStopPercent Down: 55% All That's WirelessCAP Rate: 8.14% La CarretaPrice/SF (GLA): $184.29 Shoe ShowLot Size: 5.19 Maurices

SUBJECT PROPERTY



RECENT SA

LES

Year Built: 2008Gross Leasable Area (GLA): 17,000 SFOffering Price: $2,950,000Percent Down 100%CAP Rate: 8.69%Price/SF (GLA): $173.53Lot Size: 2.085 Acres

17

Recent Sales

1

NoRTH HIll CRoSSING1009 Blowing Rock Blvd., lenoir, NC 28645 Year Built 2008

Gross leasable Area (GlA) 17,000 Sf

offering Price $2,950,000

Percent Down 100%

CAP Rate 8.69 %

Price PSf $173.53

lot Size 2.085 Acres

SAlES ComPARABlES


SUBJect PrOPertY

Sales Comparables


Sales Comp Map

0 mi 50 100 150 200 250

1

2

3

wAlmART SuPERCENTER SHADow RETAIl1397 leesburg Ave washington Court House, oH 43160 Closing Date 4/18/10 Major Tenants

Year Built 2007 Rent-A-Center

Gross leasable Area (GlA) 13,840 Sf GameStop

Sale Price $1,968,000

Percent Down 25%

CAP Rate 8.25%

Price PSf $142.20

lot Size TBD

WALMART SUPERCENTER SHADOW RETAIL1397 Leesburg AvenueWashington Court House, OH 43160

3

COMMENTSWalmart Supercenter shadow-anchored, 13,840-square foot, multi-tenant retail asset located in the city of WashingtonCourthouse, Ohio (45 minutes south of Columbus, Ohio).



RECENT SA

LES

Close of Escrow: 4/18/2008 Major TenantsYear Built: 2007 Rent-A-CenterGross Leasable Area (GLA): 13,840 SF GameStopSale Price: $1,968,000Percent Down: 25%CAP Rate: 8.25%Price/SF (GLA): $142.20Lot Size: TBD

18

Recent Sales

3

SSAlES ComPARABlES




> Demographics

Demographics

DEmoGRAPHICS


as of the census of 2000, there were 16,793 people, 6,913 households, and 4,569 families residing in the city. the population density was 1,013.7 people per square mile (391.3/km²). there were 7,461 housing units at an average density of 450.4/sq mi (173.9/km²). the racial makeup of the city was 80.88% White, 14.71% african american, 0.23% Native american, 0.67% asian, 0.11% Pacific Islander, 2.27% from other races, and 1.13% from two or more races. Hispanic or latino of any race were 4.25% of the population.

there were 6,913 households out of which 27.4% had children under the age of 18 living with them, 47.0% were married couples living together, 14.8% had a female householder with no husband present, and 33.9% were non-families. 29.7% of all households were made up of individuals and 13.1% had someone living alone who was 65 years of age or older. the average household size was 2.34 and the average family size was 2.87.

In the city the population was spread out with 22.9% under the age of 18, 8.1% from 18 to 24, 27.5% from 25 to 44, 23.3% from 45 to 64, and 18.3% who were 65 years of age or older. the median age was 39 years. For every 100 females there were 91.1 males. For every 100 females age 18 and over, there were 88.2 males.

the median income for a household in the city was $29,369, and the median income for a family was $37,280. Males had a median income of $26,122 versus $21,895 for females. the per capita income for the city was $16,697. about 10.4% of families and 14.3% of the population were below the poverty line, including 20.4% of those under age 18 and 12.7% of those age 65 or over. 1.0 mIlE 3.0 mIlE 5.0 mIlE RING RING RINGPoPulATIoN 1990 total Population 4,471 15,872 28,2962000 total Population 4,663 16,438 29,2232009 total Population 4,669 16,225 29,2412014 total Population 4,861 16,851 30,435% Population change 1990-2000 4.29% 3.57% 3.28%% Population change 2000-2009 0.13% -1.30% 0.06%% Population change 2009-2014 4.11% 3.86% 4.08%

HouSEHolDS1990 total Households 1,837 6,398 11,0972000 total Households 1,903 6,692 11,7022009 total Households 2,020 6,989 12,3662014 total Households 2,072 7,144 12,667% Households change 1990-2000 3.59% 4.60% 5.45%% Households change 2000-2009 6.15% 4.44% 5.67%% Households change 2009-2014 2.57% 2.22% 2.43%

2009 RACE2009 White Population 3,434 12,859 24,4112009 Black Population 1,010 2,566 3,529

Demographics

DEmoGRAPHICS


1.0 mIlE 3.0 mIlE 5.0 mIlE RING RING RING

2009 american Indian/alaska Native 7 42 742009 asian/Hawaiian/Pacific Islander 41 160 2332009 Other Population (Incl 2+ races) 176 598 9942009 Hispanic Population 306 945 1,4042009 Non-Hispanic Population 4,363 15,280 27,837

INComE2009 Per capita Income $21,135 $20,752 $19,8502009 Median Household Income $28,824 $31,549 $32,4772009 average Household Income $48,851 $48,175 $46,938

2009 Household Income < $10,000 260 725 1,1312009 Household Income $10,000-$14,999 231 718 1,1842009 Household Income $15,000-$19,999 197 707 1,1462009 Household Income $20,000-$24,999 168 612 1,1342009 Household Income $25,000-$29,999 200 606 1,1292009 Household Income $30,000-$34,999 104 408 9262009 Household Income $35,000-$39,999 107 453 9602009 Household Income $40,000-$44,999 145 504 9692009 Household Income $45,000-$49,999 128 425 8402009 Household Income $50,000-$59,999 175 680 1,1972009 Household Income $60,000-$74,999 123 541 8342009 Household Income $75,000-$99,999 61 296 4692009 Household Income $100,000-$124,999 47 135 2102009 Household Income $125,000-$149,999 39 87 1092009 Household Income $150,000-$199,999 10 33 572009 Household Income $200,000-$249,999 4 8 82009 Household Income $250,000-$499,999 18 50 622009 Household Income $500,000+ 1 1 1

2009 average Household Size 2.2 2.3 2.32009 total Owner Occupied Housing Units 1,232 4,752 8,6012009 total renter Occupied Housing Units 775 2,272 3,681

2009 total daytime Population 5,816 20,617 30,1212009 total daytime Work Population 3,509 11,441 15,5972009 total establishments 296 1,071 1,454

Investment Offering

DISCLAIMER AND CONFIDENTIALITY AGREEMENTThis is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of North Hill Crossing (the “Property”). This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information that prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition, and other factors beyond the control of the Owner and Colliers International. Therefore, all projections, assumptions, and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. Neither the Owner nor Colliers International, nor any of their respective directors, officers, affiliates, or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time, with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered, and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or Colliers International. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Colliers International. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. After reviewing this Memorandum, if you have no further interest in purchasing the Property, kindly return this Memorandum to Colliers International.,

For information, contact:

creIGHtON Stark JaMeS aNtHONYtel +1 214 706 6029 tel +1 919 832 1110dIr +1 214 706 6029 dIr +1 919 582 3100FaX +1 214 692 1100 FaX +1 919 834 [email protected] [email protected]

CollIERS INTERNATIoNAlPark Seventeen1717 mckinney Avenue, Suite 900Dallas, TX 75202www.colliers.com

DISClAImER



BLOWING ROCK BLVDLENOIR, NC

1009

PRESENTED BY:Creighton Stark James AnthonySenior Vice President | ceOOffice & Medical Investment Sales MaIN +1 214 692 1100 MaIN +1 919 832 1110dIrect +1 214 706 6029 dIrect +1 919 582 3100FaX +1 214 692 7600 FaX +1 919 834 4488 eMaIl [email protected] eMaIl [email protected]

north hill crossing blowing rock blvd 1009lenoir, nc · north hill crossing is a 17,000 square foot...

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