SCOTTSBORO MARKETPLACE

Transkript

1 Marketing Proposal SCOTTSBORO MARKETPLACE John T Reid Pkwy, Scottsboro, AL ELLIOTT KYLE VICE PRESIDENT INVESTMENT SALES ekyle@skylineseven.com Skyline Seven Real Estate CHASE MURPHY INVESTMENT SALES ASSOCIATE cmurphy@skylineseven.com TYLER HANCOCK INVESTMENT SALES ANALYST thancock@skylineseven.com

2 Investment Overview Price $4,000,000 NOI: $321,824 CAP Rate: 8.05% Total SF: 40,560 Occupancy: 94% Price/SF: $99 Land Area: 5.83 Year Built: 1999 Highlights Asking 8.05% CAP on current income 6 nationally recognized tenants: Sally Beauty Supply, Hibbett Sporting Goods, Advance America Cash,1st Franklin Financial, GameStop and Ashley HomeStore, plus Beaute Nail and Spa All tenants pay a pro-rata share of CAM expenses, tax and insurance 94% Occupied - one vacancy of 2,400 square feet Walmart Shadow Center, next to the only Walmart within a 20 mile radius Located on the main corridor of John T Reid Parkway, with 20,700 cars passing per day Strategically located 45 miles from Huntsville and 55 miles from Chattanooga Recently painted and a new roof over Ashley HomeStore

3 Overview Scottsboro Marketplace is an excellent investment opportunity to obtain a Walmart Supercenter shadow center that is 94% leased, yet with upside by leasing the 2,400 square foot vacancy. The center has an excellent tenant mix with 6 nationally recognized tenants, including; Sally Beauty Supply, Hibbett Sporting Goods, Advance America Cash Advance, 1st Franklin Financial, GameStop and Ashley HomeStore, along with Beaute Nail and Spa. Scottsboro Marketplace totals 40,560 square feet, with 8 suites, and is situated on over 5 acres. Ashley HomeStore is the anchor tenant, who recently took over the space that was occupied by Burkes Outlet, with a lease through January 2028 and with an additional 5 year option. GameStop took over the former Blockbuster space in 2012, Beaute Nail Salon signed their lease in 2013, 1st Franklin Financial just signed a lease in half of the space that was previously Rue 21, and the remaining tenants are all original since Scottsboro Marketplace benefits from being well located in the main retail area, directly next to the Walmart, and on a major highway that connects Chattanooga to Huntsville. The property also has an advantage in that the next nearest Walmart Supercenter is more than 20 miles away, where the Scottsboro location pulls customers from a distant trade area. The immediate area also has Home Depot, Ford & Chevrolet dealerships, Hampton Inn, banks, retailers, and many dining options. Area Information Scottsboro, Alabama is strategically located 30 miles from Georgia, 45 miles from Huntsville, and 55 miles from Chattanooga. Scottsboro is well located in a picturesque area of Northeast Alabama, benefiting from the Tennessee River and many lakes and parks, with the moto where the mountains meet the lakes. Many of the residents prefer the lifestyle of Scottsboro, and commute to either Huntsville or Chattanooga for employment. However, there is a good employment base in Scottsboro as well. Coca- Cola Bottling Company has been operating out of Scottsboro since 1912, bottling Coca-Cola products to distribute throughout the southeast. The largest employer in Scottsboro is Maples Industries, which is a major textile manufacturer that has been creating rugs, carpets, and dying technology since Located behind Scottsboro Marketplace is Scottsboro High School, the largest high school in the area with 1,200 students. Scottsboro is also home to Northeast Alabama Community College, ranked the #20 of the best community colleges in the nation by CreatACareer.org.

4 Pictures Scottsboro Marketplace

5 Pictures

6 Pictures Scottsboro Marketplace

7 Pictures

8 Pictures New Roof Over Ashley Homestore Scottsboro High School 1,200 Students

9 Retail Map Scottsboro High School 1,200 Students 20,700 VPD Scottsboro Marketplace 20,320 VPD 32,610 VPD

10 Rent Roll Suite Tenant Sq. Ft. % of Center Start Lease Term Expiration Current Annual Base Rent Annual Rent/ Sq. Ft. Estimated Recapture Annual Recapture/ Sq. Ft. 1 Sally Beauty Supply 1, % 11/15/99 11/30/19 $27,000 $15.00 $4,095 $ Beaute Nail and Spa 1, % 02/17/13 02/28/23 $34,200 $19.00 $4,419 $ st Franklin Financial 2, % 09/01/18 08/31/23 $30,000 $12.50 $4,704 $ Vacant 2, % $30,000 $12.50 $4,800 $ Hibbett Sporting Goods 4, % 09/15/99 02/29/20 $58,608 $12.21 $10,920 $ Advance America Cash 1, % 10/01/99 12/31/20 $26,004 $21.67 $2,730 $ Gamestop 3, % 05/17/12 05/31/22 $41,400 $11.50 $11,353 $ Ashley Furniture HomeStore 22, % 09/01/17 01/31/28 $112,800 $5.00 $51,437 $ ,560 $360,012 $94,458 Occupied Totals 38, % $330,012 $89,658 Vacant 2, % $30,000 $4,800

11 Sample Net Operating of Recent Income Closings Current SCHEDULED LEASED INCOME $360,012 CAM/Tax/Insurance $94,458 TOTAL SCHEDULED INCOME $454,470 Vacancy Reserve (Suite 4-2,400 square feet) $34, % GROSS OPERATING INCOME $419,670 Expenses (Based on 2017) Real Estate Taxes $30,878 Insurance $15,401 CAM Electricity $8,118 Landscaping $5,400 Backflow - Waste Removal - Sprinkler - Contracts and Inspections $3,024 Parking Lot Cleaning $9,000 Pressure Washing $850 Repairs and Maintenance (Based on 2017 Budget) $7,880 Reserves ($.10/SF) $4,056 Management (3%) $12,590 $97,196 Net Operating Income $322,474

12 Sample Lease Abstracts of Re- Tenant Sally Beauty Supply - Over 4,000 stores throughout the world. Publicly traded company (NYSE:SBH) with a market cap of Billion Square Feet 1,800 Annual Base Rent $27,000 Annual Rent PSF $15.00 Commencement Date October 1, 1999 Termination Date November 30, 2019 Security Deposit $0 Rent Schedule Years Monthly Rent Annual Base Rent Estimated Recapture 10/01/99-09/30/00 $1,875 $22,500 $4,095 10/01/00-09/30/01 $1,875 $22,500 $4,095 10/01/01-09/30/02 $1,875 $22,500 $4,095 10/01/02-09/30/03 $1,875 $22,500 $4,095 10/01/03-11/30/04 $1,875 $22,500 $4,095 Renewal Option 12/01/04-11/30/09 $2,100 $25,200 $4,095 Extention 1 12/01/09-11/30/12 $2,100 $25,200 $4,095 12/01/12-11/30/13 $2,175 $26,100 $4,095 12/01/13-11/30/14 $2,250 $27,000 $4,095 Extension 2 12/01/14-11/30/19 $2,250 $27,000 $4,095 Tenant Beaute Nail Spa, LLC - Nail boutique and Spa. Two locations in Alabama with a personal guarantee on the lease Square Feet 1,800 Annual Base Rent $34,200 Annual Rent PSF $19.00 Commencement Date February 17, 2013 Termination Date February 28, 2023 Security Deposit $6,198 Rent Schedule Years Monthly Rent Annual Base Rent Estimated Recapture 02/17/13-02/28/15 $2,700 $32,400 $4,419 03/01/15-02/28/16 $2,738 $32,850 $4,419 03/01/16-02/28/17 $2,775 $33,300 $4,419 03/01/17-02/28/18 $2,813 $33,750 $4,419 Renewal Option 1 03/01/18-02/28/19 $2,850 $34,200 $4,419 03/01/19-02/28/20 $2,888 $34,650 $4,419 03/01/20-02/28/21 $2,925 $35,100 $4,419 03/01/21-02/28/22 $2,963 $35,550 $4,419 03/01/22-02/28/23 $3,000 $36,000 $4,419

13 Sample Lease Abstracts of Re- Tenant 1st Franklin Financial - Home mortgage lender with 311 locations throughout the southeast Square Feet 2,400 Annual Base Rent $30,000 Annual Rent PSF $12.50 Commencement Date September 1, 2018 Termination Date August 31, 2023 Security Deposit $0 Rent Schedule Years Monthly Rent Annual Base Rent Estimated Recapture 09/01/18-08/31/19 $2,500 $30,000 $4,704 09/01/19-08/31/20 $2,500 $30,000 $4,704 09/01/20-08/31/21 $2,500 $30,000 $4,704 09/01/21-08/31/22 $2,500 $30,000 $4,704 09/01/22-08/31/23 $2,500 $30,000 $4,704 Renewal Option 09/01/23-08/31/24 $2,700 $32,400 $4,704 09/01/24-08/31/25 $2,700 $32,400 $4,704 09/01/25-08/31/26 $2,700 $32,400 $4,704 09/01/26-08/31/27 $2,700 $32,400 $4,704 09/01/27-08/31/28 $2,700 $32,400 $4,704

14 Sample Lease Abstracts of Re- Tenant Hibbett Sports - Sports apparel store with 1,082 locations in 32 states. Publicly traded company (NYSE:HIBB) with a market cap of $519 Million Square Feet 4,800 Annual Base Rent $58,608 Annual Rent PSF $12.21 Commencement Date September 15, 1999 Termination Date February 28, 2017 Security Deposit $0 Rent Schedule Years Monthly Rent Annual Base Rent Estimated Recapture 09/15/99-08/31/00 $5,000 $60,000 $9,600 09/01/00-08/31/01 $5,000 $60,000 $9,600 09/01/01-08/31/02 $5,000 $60,000 $9,600 1st Amendment 12/01/02-11/30/03 $4,600 $55,200 $9,600 12/01/03-11/30/04 $5,000 $60,000 $9,600 12/01/04-11/30/05 $5,200 $62,400 $9,600 Extension 1 12/01/05-11/30/06 $5,200 $62,400 $9,600 12/01/06-11/30/07 $5,200 $62,400 $9,600 Extension 2 12/01/07-11/30/08 $5,356 $64,272 $9,600 12/01/08-11/30/09 $5,516 $66,192 $9,600 Extension 3 12/01/09-02/29/12 $4,400 $52,800 $10,920 Extension 4 03/01/12-02/28/17 $4,600 $55,200 $10,920 Extension 5 03/01/17-02/28/18 $4,740 $56,880 $10,920 03/01/18-02/28/19 $4,884 $58,608 $10,920 03/01/19-02/29/20 $5,032 $60,384 $10,920 * Hibbett Sports pays an additional rent of 4% if they sell above a limit according to the schedule below: Years Percentage Rent Threshold $1,500, $1,606, $1,654, $1,606, $1,320, $1,380, $1,422, $1,465, $1,509,600

15 Sample Lease Abstracts of Re- Tenant Advance America Cash Advance - Largest provider of non-bank cash advance services in the U.S. with 2,500 locations. Corporate gurantee Square Feet 1,200 Annual Base Rent $26,004 Annual Rent PSF $21.67 Commencement Date October 1, 1999 Termination Date October 31, 2020 Security Deposit $1,400 Rent Schedule Years Monthly Rent Annual Base Rent Estimated Recapture 10/01/99-09/31/00 $1,400 $16,800 $2,400 10/01/00-09/31/01 $1,442 $17,304 $2,400 10/01/01-09/31/02 $1,485 $17,820 $2,400 Renewal Option 10/01/02-09/31/03 $1,530 $18,360 $2,400 10/01/03-09/31/04 $1,576 $18,912 $2,400 10/01/04-09/31/05 $1,623 $19,476 $2,400 Extension 1 10/01/05-09/31/06 $1,775 $21,300 $2,400 10/01/06-09/31/07 $1,775 $21,300 $2,400 10/01/07-09/31/08 $1,775 $21,300 $2,400 Extension 2 10/01/08-09/31/09 $1,830 $21,960 $2,400 10/01/09-09/31/10 $1,885 $22,620 $2,400 10/01/10-09/31/11 $1,940 $23,280 $2,400 Extension 3 10/01/11-09/31/12 10/01/12-09/31/13 10/01/13-09/31/14 Extension 4 11/01/14-10/31/17 $1,970 $23,640 $2,400 11/01/17-10/31/20 $2,167 $26,004 $2,400

16 Sample Lease Abstracts of Re- Tenant Gamestop - Video game and electronics retailer with 7,276 locations. Publicly traded (NYSE:GME) with a market cap of $1.328 Billion. Square Feet 3,600 Annual Base Rent $41,400 Annual Rent PSF $11.50 Commencement Date May 17, 2012 Termination Date May 31, 2022 Security Deposit $0 Rent Schedule Years Monthly Rent Annual Base Rent Estimated Recapture 05/17/12-05/31/17 $3,450 $41,400 $8,028 Renewal Option 06/01/17-05/31/22 $3,450 $41,400 $8,028 Tenant Hunstville Wholesale Furniture, Inc dba Ashley HomeStore - Operates 4 Ashley HomeStore locations throughout Alabama - Ashley HomeStore is a furniture and decor retailer with 750 locations nationwide - Personal gurantee Square Feet 22,560 Annual Base Rent $112,800 Annual Rent PSF $5.00 Rent Schedule Years Monthly Rent Annual Base Rent Estimated Recapture 09/01/17-08/31/18 $9,400 $112,800 $51,437 09/01/18-08/31/19 $9,400 $112,800 $51,437 09/01/19-08/31/20 $9,870 $118,440 $51,437 09/01/20-08/31/21 $9,870 $118,440 $51,437 09/01/21-08/31/22 $10,340 $124,080 $51,437 09/01/22-08/31/23 $10,340 $124,080 $51,437 09/01/23-08/31/24 $10,810 $129,720 $51,437 09/01/24-08/31/25 $10,810 $129,720 $51,437 09/01/25-08/31/26 $11,280 $135,360 $51,437 09/01/26-01/31/28 $11,280 $135,360 $51,437 Renewal Option + 5 Years 02/01/28-01/31/33 $12,220 $146,640 $51,437

17 Survey

18 Parcel Map

19 Location Map Scottsboro Marketplace

20 Location Map 55 Miles 45 Miles Scottsboro Marketplace

21 Demographics Population Three-Mile Five-Mile Ten-Mile 2017 Population 10,605 15,221 25, Population 10,786 15,300 25,751 Households 2017 Population 4,422 6,365 10, Population 4,540 6,450 10,526 Income 2017 Average Household Income $54,621 $55,558 $53,619 5 Year Projected $58,132 $59,130 $57,372 Projected Growth 2017 to % 6.43% 7.00% Race White 88.1% 88.5% 89.8% Black 5.6% 4.8% 3.6% American Indian/Eskimo 0.8% 0.9% 1.2% Asian 1.3% 1.2% 0.8% Other Race 2.1% 2.2% 2.5% Hispanic Ethnicity (Any Race) 4.0% 4.1% 3.5%

22 SKYLINE SEVEN EXPERTS ELLIOTT KYLE VICE PRESIDENT CHASE MURPHY ASSOCIATE TYLER HANCOCK ANALYST Elliott is responsible for Skyline Seven s Investment Sales Division and is one of Atlanta s top sales producers. Elliott offers a breadth of brokerage experience having represented private investors, institutions and lenders/special servicers. Over the last 10 years alone, Elliott closed real estate transactions in excess of $450,000,000. Chase is an investment sales associate representing both buyers and sellers of commercial properties. Chase has developed a vast knowledge of transactional real estate and a commitment to navigating his clients to profitable closings. Over the last 3 years alone, Chase closed real estate transactions in excess of $100,000,000. Tyler is an investment sales analyst and is responsible for supporting the team in all aspects. Specifically, Tyler focuses on financial underwriting, due diligence management and the closing process. Prior to joining Skyline Seven, Tyler worked with the Retail Services team at Colliers International.