staples - matthews€¦ · • staples, inc. occupies 16,200 sf on a nnn lease with minimal...

S TA P L E S2 0 4 0 W h i t e P l a i n s Rd | B r o n x , N YO F F E R I N G M E M O R A N D U M

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ARON CLINE ANDY KNIGHTVP & SENIOR DIRECTOR BROKER OF RECORD

Aron.Cl [email protected] (949) 432-4509MOB (818) 632-0233

LIC: 10311206075

E XC LU S I V E LY L I S T E D BY

RAHUL CHHAJEDASSOCIATE

Rahul [email protected] (949) 432-4513MOB (818) 434-1 106

M A T T H E W S R E T A I L A D V I S O R S | 3

C O N T E N T S

EXECUTIVE SUMMARYInvestment Highl ights

6 FINANCIAL OVERVIEWExecut ive SummaryAnnual ized Operat ing DataTenant SummaryLease Abstract

9 TENANT OVERIVEWStaples

1 1 PROPERTY OVERVIEWThe Offer ingSi te Descr ipt ionSi te PlanBird’s EyeTenant MapRegional Map

1 6 AREA OVERVIEWBronx, NYDemographics

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E X E C U T I V E S U M M A R Y


I n v e s t m e n t H i g h l i g h t s

• Staples, Inc. (BBB-) is one of the largest office-supply retailers with over 3,000 stores globally

• This street front retail condominium is located within one of the densest cities in the country, immersed in a population in excess of 2,000,000 people within a 5-mile radius

• Staples has 3, 5 year options with healthy 15% rental escalations providing a strong hedge against inflation

• Subject property is surrounded by 3 high-traffic subway stations, Bronx Park East (±0.2 miles away), Morris Park (±0.5 miles away), and Pelham Parkway (±0.3 miles away)

• Staples, Inc. occupies 16,200 SF on a NNN lease with minimal landlord responsibilities providing the landlord with ease of management

• White Plains Road is the major thoroughfare which runs the length of the Bronx borough of New York City, marking it as the longest continuous street in the Bronx (±7.3 miles)

• Retailers on White Plains Road thrive from the heavy foot traffic experienced throughout business hours marking it as a retailer “hot-spot”

• Subject property, built in 2007, benefits from its strategic location directly below 6 stories of 100 multi-family units; marking the total GLA of the building at approximately 116,750 SF

• The property neighbors the Bronx Zoo, the largest metropolitan zoo in the United States and one of the largest in the world – averaging 2.15 million visitors each year

• Subject property is located within a 3-mile radius from Yankee Stadium, home to the New York Yankees

• According to the NYC Department of Education, there were ±206,000 students enrolled in the Bronx as of 2015


F I N A N C I A L O V E R V I E W


S t a p l e s2040 White Plains Rd Bronx, NY 10462

List Price ..........................................................................................$12,312,000

CAP Rate - Current ...................................................................................6.25%

Gross Leasable Area .................................................................... ± 16,200 SF

Lot Size ..........................................................................................± 0.58 Acres

Year Built .......................................................................................................2007

Annualized Operating DataMonthly Rent Annual Rent Rent/SF

Current - 2/14/2022 $64,125.00 $769,500 $47.50

Option 1 $73,750.50 $885,006 $54.63

Option 2 $84,807.00 $1,017,684 $62.82

Option 3 $97,524.00 $1,170,288 $72.24

Tenant Summary

Tenant Trade Name Staples, Inc.

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Landlord Responsibility Roof & Structure

Lease Dated 8/22/2005

Rent Commencement Date 2/15/2007

Lease Expiration Date 2/14/2022

Term Remaining on Lease 5.3 Years

Increases 15% Increases Every Option

Options Three (3), Five (5) Year Options


L e a s e A b s t r a c t

Tenant: Staples the Office Superstore East, INC.

Guarantor White Plains Commercial LLC

Size 16,200 SF

Date of Lease August 22, 2005

Rent Commencement February 15, 2007

Lease Expiration February 14, 2022

Lease Term 15 Years

Renewal Options Three (3), Five (5) Year Options

Current Rent $769,500 (Seller to credit rent difference if closed before rent bump in Feb. 2017)

Option RentOption 1: 16 - 20Option 2: 21 - 25Option 3: 26 - 30

Real Estate Taxes Tenant shall pay to Landlord its tax share of the project taxes for each tax year occurring during the term (See Lease: Article IV, Section 4.2.1)

Maintenance and RepairTenant responsible (See Lease: Article VIII, Section 8.1)Landlord responsible for structural repairs (See Lease: Article VIII, Section 8.2)

Landlord’s Insurance Landlord to maintain at least $5,000,000 umbrella coverage, “all-risk” property insurance, and rental value insurance (See Lease: Article VII, Section 7.1)

Tenant’s InsuranceTenant to maintain at least $10,000,000 umbrella coverage. Tenant may elect to self-insure, provided tenant maintains tangible net worth equal to at least $250,000,000 (See Lease: Article VII, Section 7.2)

UtilitiesTenant shall select and pay the utility companies directly for all water, fuel, gas, electricity and other utilities used by Tenant on the Premises (See Lease: Article VIII, Section 8.3.1). Tenant shall make all necessary repairs and replacements of the HVAC system (See Lease: Article VIII, Section 8.3.2)

Assignment and SublettingTenant may assign the Lease or sublet the whole or any portion of the Premises and may grant licenses and concessions without L’s consent, provided that Tenant shall remain primarily liable for the full performance of this Lease (See Lease: Article IX)

$54.63$62.82$72.24

$885,006$1,017,684$1,170,288

$73,750.50$84,807.00$97,524.00


T E N A N T O V E R V I E W

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Te n a n t O v e r v i e wStaples is clipping along as the #1 office supply superstore operator in the US and as a worldwide leader in the office category. It sells office products, furniture, computers and other supplies through more than 1,900 Staples stores in the US, Staples makes it easy to make more happen with more products and more ways to shop. Through its world-class retail, online and delivery capabilities, Staples lets customers shop however and whenever they want, whether it’s in store, online or on mobile devices. Staples offers more products than ever, in categories such as technology, facilities and breakroom, furniture, safety, and medical, as well as Copy & Print and Staples EasyTechsm services. Staples has been making it easy for businesses for 27 years with thousands of associates worldwide. Headquartered outside of Boston, Staples operates throughout North and South America, Europe, Asia, Australia and New Zealand.

OPERATIONSStaples is a global company with retail and delivery businesses serving customers in 25 countries. The office products giant’s North American retail business contributed about 45% to sales during fiscal 2016. Its North American Commercial segment sells and delivers office products and services directly to business. Staples’ International segment runs stores and provides direct-to-consumer and direct-to-business delivery of office products in about two dozen countries.

SALES AND MARKETINGThe company targets customers through a variety of adverting and marketing formats, including radio and television, printed circulars, online advertising, mobile apps, and social media. The company has been spending less on advertising in recent years. It spent $478 million on advertising and marketing in FY2016, down from $496 million and $499 million in fiscal years 2015 and 2014, respectively.

STRATEGYInternational expansion became a priority for Staples when sales in North America slowed as a result of the last recession. Staples continues to build a foundation for future growth, however, particularly in Asia and South America, with delivery businesses in Argentina, Brazil, China, and Taiwan, as well as a franchise arrangement with a partner in India.

Company Name Staples, Inc.

Ownership Public

No. of Locations ± 3,000

No. of Employees ± 79,095

Headquartered Framingham, Massachussets

Web Site www.staples.com

Year Founded 1985

M A T T H E W S R E T A I L A D V I S O R S | 1 1

P R O P E R T Y O V E R V I E W

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T h e O f f e r i n gProperty Name Staples

Property Address 2040 White Plains Rd Bronx, NY 10462

Assessor’s Parcel Number 04284-1001

Zoning R7-1

Site Description

Number of Stories One

Year Built 2007

Gross Leasable Area (GLA) ± 16,200 SF

Lot Size ± 0.58 Acres (25,200 SF)

Type of Ownership Fee Simple

Parking ± 40 Attendant / 20 Self Park Spaces

Parking Ratio 3.70 : 1,000 SF

Landscaping Professional

Topography Generally Level

Construction

Foundation Concrete Slab

Framing Metal

Exterior Masonry

Parking Surface Asphalt

Roof Flat

P a r c e l M a p


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B R A D Y A V E N U E

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B i r d ’ s E y e

Bronxdale Ave

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White Plains Rd

Brady Ave


Te n a n t M a p

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A e r i a l Te n a n t M a p - N o r t h b o u n d

S U B J E C T P R O P E R T Y

N E W Y O R K P U B L I C L I B R A R YV A N N E S T B R A N C H

A L L E R T O N


A e r i a l Te n a n t M a p - S o u t h b o u n d

S U B J E C T P R O P E R T Y

W E S T C H E S T E R S Q U A R EM E D I C A L C E N T E R

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A R E A O V E R V I E W


B r o n x , N e w Yo r k L o c a l & R e g i o n a l M a p

As the only borough of New York City that is connected to the mainland of New York State, The Bronx is known as the home of the New York Yankees, the Bronx Zoo and the New York Botanical Garden, some of New York City’s best-known tourist attractions. The main campus of Fordham University is in Bronx, in addition to several other colleges and universities, such as Lehman College. At one time spanning over 100 acres, Fordham University sold 30 acres to the New York City government to become part of the New York Botanical Garden.

With its proximity to New Jersey and Manhattan’s central business district, the Bronx has benefitted in its economic development. Public and private investments have helped create new businesses, thus generating thousands of new jobs. In recent years, private investment specifically has accelerated in the Bronx, aiding the economy through the Great Recession. The number of jobs has grown without interruption for nearly a decade.

There has been a significant move towards gentrifying the Bronx, which was first initiated by the creation of affordable housing in the 1980s. Substantial new building construction began in 2002, totaling an investment of $4.8 billion, and the existing housing market has experienced revitalization as well. The Bronx General Post Office is being converted into a lifestyle center with a market place, boutiques, restaurants and office space. Future projects include a commuter rail service to Manhattan and to the northern suburbs and development of the Mott Haven waterfront.

Being a very culturally diverse area, the Bronx has become a magnet for immigrants seeking new opportunities. Residents are choosing to stay in the Bronx to raise their families given the great reduction in crime and the revival of housing communities. Availability of extensive highway and railway networks and an integrated mass transit system provide easy access to the city for commuters.

R E G I O N A L M A P

L O C A L M A P

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N e w Yo r k M S A O v e r v i e w

Also referred to as the Tri-State Area, the New York metropolitan area includes New York City, Long Island and the Mid- and Lower Hudson Valley in the state of New York; the five largest cities in New Jersey; six of the seven largest cities in Connecticut; and five counties in northeastern Pennsylvania. It is the center of many industries, including finance, international trade, real estate, fashion, tourism and manufacturing, making it one of the most important economic regions in the world. The MSA produced a gross metropolitan roduct (GMP) of nearly $1.60 trillion in 2015 alone.


D e m o g r a p h i c s

Population 1 Mile 3 Miles 5 Miles

2021 Projection 132,190 1,219,401 2,001,987

2016 Estimate 127,692 1,175,060 1,937,742

2010 Census 121,691 1,116,591 1,854,291

Growth 2016 - 2021 3.52% 3.77% 3.32%

Growth 2010 - 2016 4.93% 5.24% 4.50%

Growth 2000 - 2010 6.77% 4.06% 2.22%

Households 1 Miles 3 Miles 5 Miles

2021 Projection 50,259 429,002 720,508

2016 Estimate 48,487 412,524 695,278

2010 Census 46,102 390,694 661,687

Growth 2016 - 2021 3.65% 3.99% 3.63%

Growth 2010 - 2016 5.17% 5.59% 5.08%

Growth 2000 - 2010 6.23% 4.63% 3.60%

Income 1 Miles 3 Miles 5 Miles

2016 Est. Average Household Income

$50,193 $46,928 $53,444

Tr a n s p o r t a t i o n

E c o n o m y

Being the most populous city in the United States, New York City has a transportation system that is a network of complex infrastructural systems. WIth three international airports, New York City is the top international air passenger gateway to the United States and the busiest air gateway in the nation. From one of the largest subway systems in the world and the world’s first mechanically ventilated vehicular tunnel to an aerial tramway, New York CIty’s transportation system continues to develop alongside the city.

The most dominant mode of transportation in New York City is rail, serving 2.2 billion annual riders. Public buses account for a significant portion of surface mass transit. Most New Yorkers use public transportation to commute to work because of its low cost and convenience.

New York City is a global hub of international business and commerce. Many Fortune 500 corporations are headquartered in NYC, as well as a large number of foreign corporations. Having been ranked first among cities across the globe in attracting capital, business and tourists, one out of ten private sector jobs in the city is with a foreign company. The government and Wall Street comprise New York City’s most important economic sectors.

Lower Manhattan is the third-largest central business district in the United States and is home to the New York Stock Exchange on Wall Street and the NASDAQ at 165 Broadway, representing the world’s two largest stock exchanges.

N E W Y O R K B O T A N I C A L G A R D E N

D O W N T O W N B R O N X

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To u r i s m a n d C u l t u r a l A m e n i t i e sTourism is a vital industry for New York City, which has witnessed a growing number of international and domestic tourists. Approximately 60 million visitors went to New York City in 2015, 12 million of which were from outside the United States. Major tourist destination include Times Square, Broadway theater productions, the Empire State Building, and the Statue of Liberty.

Described as the cultural capital of the world, New York City has more than 2,000 arts and cultural organizations and more than 500 art galleries. Forty of the city’s performing arts theaters are collectively known as Broadway, which is famous for plays and musicals. Lincoln Center for the Performing Arts is home to numerous influential arts organizations, including the Metropolitan Opera, New York City Opera, New York Philharmonic and New York City Ballet.

N Y C To p E m p l o y e r s

Employer # of Employees

City of New York 148,898

New York City Department of Education

119,410

Metropolitan Transportation Authority

66,804

United States Government 50,700

New York City Health and Hospitals 36,244

JP Morgan Chase & Co. 27,157

State of New York 25,441

Citigroup Inc. 24,809

North Shore - LIJ Health System 20,775

Mount Sinai Medical Center 18,999

C E N T R A L PA R K

B R O O K LY N B R I D G E


THE BRONX ZOO

Just across the street from the subject property, the Bronx Zoo is the largest urban zoo in the country and the heart of the Wildlife Conservation Society. More than 4,000 animals are housed at the Bronx Zoo, representing more than 600 species in specialized environments. The zoo averages 2.15 million visitors each year due to its award-winning exhibitions.

THE EMPIRE STATE BUILDING

Located in the heart of Midtown Manhattan, the Empire State Building is one of the most famous landmarks in the world. Visitors can take in New York’s most breathtaking views from the open-air observatory on the top floor. In addition to the Observation Deck, the Empire State Building offers a newly restored lobby with remarkable art deco ceiling murals, the Dare to Dream Exhibit, the new Sustainability Exhibit and an interactive audio device.

YANKEE STADIUM

CENTRAL PARK

L o c a l A t t r a c t i o n s

Yankee Stadium is located in the Bronx, less than about three miles away from the subject property. The stadium serves as the home ballpark for one of the most famous sports teams in the world: The New York Yankees. Visitors can take a tour of the stadium and discover the Yankees Museum or check out Monoument Park in centerfield.

Central Park is an urban park in middle-upper Manhattan. It is the most visited park in the United States where people can ride horse carriages, hop on the Central Park Carousel, stroll through the Central Park Zoo, attend concerts, or even dine at one of the park’s two indoor restaurants. Residents and tourists alike can retreat into this pastoral escape within the most populated city in the United States.

BRONX MUSEUM OF THE ARTS

Also about 3 miles away from the subject property is the Bronx Museum of the Arts. The museum is an internationally recognized cultural destination that exhibits innovative contemporary art. In celebration of its 40th anniversary, the museum implemented a universal free admission policy, supporting its mission to make arts experiences available to all audiences.

THE STATUE OF LIBERTY

One of the most iconic landmarks, the Statue of Liberty, was a gift from France to the United States as a token of goodwill for America’s centennial of independence. Lady Liberty sits on Liberty Island, which is only accessible by boat. Visitors can walk around the island or climb the 146 stairs to the top of the pedestal for views of the Hudson River and Lower Manhattan through the crown windows.

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This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Staples located at 2040 White Plains Rd, Bronx, NY 10462 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

staples - matthews€¦ · • staples, inc. occupies 16,200 sf on a nnn lease with minimal...

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