GROUND LEASE OFFERING - LoopNet
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G ROU N D LE AS E O FFERIN G
Exclusively Offered by Cushman & Wakefield:
Sam Young David Hoppe 550 South Tryon Street, Ste. 3400
Investment Sales Investment Sales Charlotte, NC 28202
+1 704 887 3024 +1 704 335 4446 +1 704 375 7771
Ocean Isle Beach , NC sam.young@cushwake.com david.hoppe@cushwake.com www.cushmanwakefield.com
CONFIDENTIALITY AGREEMENT
The material contained in this Offering by Cushman & Wakefield from sources it deems concerning the Property, including such
Memorandum is confidential, furnished solely to be reliable. Summaries contained herein of engineering inspections as they deem necessary
for the purpose of considering the acquisition any legal documents are not intended to be to determine the condition of the Property and
of 927 Seaside Rd SW, Ocean Isle Beach, NC comprehensive statements of the terms of such the existence or absence of any potentially
28469 and is not to be used for any other documents, but rather only outlines of some hazardous material used in the construction
purpose or made available to any other of the principal provisions contained herein. or maintenance of the building or located at
person without the express written consent of Prospective purchasers should make their own the land site. No representations expressed or
Cushman & Wakefield. The material is based investigations, projections, and conclusions. implied are made as to the foregoing matters by
in part upon information obtained from the It is expected that prospective investors will Cushman & Wakefield, or assignees.
Seller and in part upon information obtained conduct their own independent due diligence
Table of Contents
EXECUTIVE SUMMARY 03
PROPERTY HIGHLIGHTS 04
Investment Advisors
Sam Young
+1 704 887 3024
TENANT PROFILE 05
Sam.Young@cushwake.com
David Hoppe
LOCATION OVERVIEW 06
07
+1 704 335 4446
david.hoppe@cushwake.com SITE PLAN
LOCATION OVERVIEW 08
LIMITING CONDITIONS 09
Bojangles’
MORROW, GA /2
EXECUTIVE SUMMARY
Subject Property: Circle K Convenience Store (Ground Lease)
927 Seaside Rd SW,
Location:
Ocean Isle Beach, NC 28469
Year Built: 2007
Parcel Size: 1.83 Acres
Building Size: 3,405 SF
Circle K Stores Inc., successor-by-merger to
Tenant:
The Pantry, Inc.
Remaining Lease Term: 5 Years
Options to Extend: Six, 5-Year Options
Rent Commencement: March 12, 2008
Firm Term Expiration Date: March 11, 2023
Current Annual Rent: $208,591
Rent Escalations: 7.5% Every 5 Years
Absolute NNN Ground Lease. Tenant pays the
Lease Type:
taxes, maintenance and repairs to the premises.
ABOUT CIRCLE K
Lease Years Annual Rent Couche-Tard, one of the world’s leading convenience retailers, has
Years 1-5 $180,500 announced the creation of a new, global convenience brand, “Circle K”.
The new Circle K brand will replace Couche-Tard’s existing Circle K®,
Years 6-10 $194,038
Statoil®, Mac’s® and Kangaroo Express® branding on stores and service
Years 11-15 $208,591
stations across Canada, the USA, Scandinavia and Central and Eastern
Option 1 $224,235 Europe. The new Circle K brand will also appear on licensed stores
Rent Schedule:
Option 2 $241,052 worldwide. Couche-Tard has chosen to retain the company’s founding
Option 3 $259,131 Couche-Tard® retail brand in the Province of Quebec in Canada due to
Option 4 $278,566 the specifics of that market.
Option 5 $299,458
Option 6 $321,918
Asking Price $2,950,000 (7.07% Cap Rate)
/3
PROPERTY HIGHLIGHTS
Absolute NNN Attractive Proven Convenience Strategic Location at a
Ground Lease with Zero Rental Escalations Store Location Signalized Intersection
Landlord Responsibilities The rent is scheduled Circle K has been in a Growth Market
The tenant is responsible for to increase 7.5% every 5 successfully operating The surrounding 3-mile
taxes, insurance, maintenance years of the firm lease at this location population is projected to
and all repairs to the term and options since 2007 grow at a rate of 14% over
improvements the next 5 years /4
independent convenience store operator in terms of number of co
operated stores. In Europe, Couche-Tard is a leader in convenien
Couche-Tard, one of the world’s leading convenience retailers, has
announced the creation of a new, global convenience brand, “Circle K”. and road transportation fuel retail in the Scandinavian countries (
TENANT PROFILE
The new Circle K brand will replace Couche-Tard’s existing Circle K®, Sweden and Denmark) and in the Baltic States (Estonia, Lat
Lithuania) and in Ireland with an important presence in Poland.
Statoil®, Mac’s® and Kangaroo Express® branding on stores and service
stations across Canada, the USA, Scandinavia and Central and Eastern
Europe. The new Circle K brand will also appear on licensed stores As of April 24, 2016, Couche-Tard’s network comprised
worldwide. Couche-Tard has chosen to retain the company’s founding convenience stores throughout North America, including 6,490 sto
Couche-Tard® retail brand in the Province of Quebec in Canada due to the road transportation fuel dispensing. Its North American network
specifics of that market. of 15 business units, including 11 in the United States covering 4
and 4 in Canada covering all 10 provinces. Approximately 80,000
PUBLIC COMPANY Toronto Stock Exchange: ATD.A and ATD.B
are employed throughout its network and at its service offices i
America.
FOUNDED 1951
# OF LOCATIONS 12,000+
In Europe, Couche-Tard operates a broad retail network
2016 WORLDWIDE SALES $34.11 Billion
Scandinavia (Norway, Sweden, Denmark), Ireland, Poland, the
COMPANY PROFILE
For the past half century, customers have come to recognize the
NET WORTH
States (Estonia, Latvia,$24.5 Billion
Lithuania) and Russia with 2,669 stores thro
business units. As of Laval,
HEADQUARTERS AprilQuebec,
24, 2016,
CanadaCouche-Tard network is comp
convenience and quality associated with the Circle K brand. What
began in 1951 with the purchase ofToronto Stock
three Kay’s Exchange:
Food Stores in El
2,659 stores, the majority of which offer road transportation f
www.circlek.com
WEBSITE
PUBLIC COMPANY
Paso,Texas has become one of the nation’s largest convenience convenience products while the others are unmanned automa
www.couche-tard.com
ATD.A and ATD.B store sites which only offer road transportation fuel. Couche-Tard als
chains, with more than 7,500 stores worldwide. Circle K is owned by
FOUNDED 1951
Alimentation Couche-Tard, the largest convenience store retailer in other products, including stationary energy, marine fuel, aviati
In Europe, Couche-Tard operates a broad retail network across
Canada. lubricants
Scandinavia and chemicals.
(Norway, Including
Sweden, Denmark), employees
Ireland, at its branded f
Poland, the
# OF LOCATIONS 12,000+ stores,
Baltics approximately
States (Estonia, Latvia,25,000 people
Lithuania) workwith
and Russia in its retail network, t
2,669
ABOUT ALIMENTATION COUCHE-TARD INC.
andthrough
stores serviceten
offices across
business units.Europe.
As of April 24, 2016, Couche-Tard
2016 WORLDWIDE SALES $34.11 Billion
Couche-Tard is the leader in the Canadian convenience store network is comprised of 2,659 stores, the majority of which offer road
NET industry.
WORTH $24.5
In the United States, it is the largest Billion
independent In addition,
transportation under
fuel licensing agreements,
and convenience products while almost 1,500
the others arestores are o
convenience store operator in terms of number of company operated under the
unmanned Circle fuel
automated K banner in 13
sites which onlyother countries
offer road or territories wo
transportation
stores. In Europe, Couche-Tard is a Laval,
HEADQUARTERS leader inQuebec,
convenienceCanada
store and fuel.(China,
Couche-Tard also offers other products, including stationary
Costa Rica, Egypt, Guam, Honduras, Hong Kong, Ind
road transportation fuel retail in the Scandinavian countries (Norway, energy, marine fuel, aviation
Macau, Malaysia, fuel, lubricants
Mexico, and chemicals.
the Philippines, Including
the United Arab Emira
Sweden and Denmark) and in the Balticwww.circlek.com
States (Estonia, Latvia and employees at its branded franchise stores, approximately 25,000
WEBSITE Vietnam), which brings the total network to over 12,000 stores.
www.couche-tard.com
Lithuania) and in Ireland with an important presence in Poland. people work in its retail network, terminals and service offices across
Europe.
As of April 24, 2016, Couche-Tard’s network comprised 7,888
convenience stores throughout North America, including 6,490 In addition, under licensing agreements, almost 1,500 stores are
stores with road transportation fuel dispensing. Its North American operated under the Circle K banner in 13 other countries or territories
network consists of 15 business units, including 11 in the United worldwide (China, Costa Rica, Egypt, Guam, Honduras, Hong Kong,
States covering 41 states and 4 in Canada covering all 10 provinces. Indonesia, Macau, Malaysia, Mexico, the Philippines, the United Arab
Approximately 80,000 people are employed throughout its network Emirates and Vietnam), which brings the total network to over 12,000
and at its service offices in North America. stores.
/5LOCATION OVERVIEW
The subject property is located at 927 Seaside
Rd SW, Ocean Isle Beach, NC 28469. The Circle
K is at the heavy traffic, signalized intersection
of Seaside Rd SW (10,000 VPD) and Old
Georgetown Rd SW (9,000 VPD). Ocean Isle
Beach, NC is approximately 30 miles and 40
minutes northeast of Myrtle Beach, SC, which
is one of the busiest tourist and vacation
destinations in the United States. The Circle K
convenience store is 2 miles from several hundred
beachfront properties and is surrounded by golf
courses and residential neighborhoods.
Circle K
/6SITE PLAN
Su op
Sh
ns pin
Ba
et g
nk
Co Ce
m nte
m
on r
s
Se
as
id
e
Ro
ad
SW
(15
KEY
,0
0 0
VP
Subject Property
D)
Surrounding Retail
VPD)
,000
ad (11
o rg e town
Ro /7
Old GeLOCATION OVERVIEW
Ocean Isle Beach is one of the six North Carolina Brunswick
Barrier Islands, which are at the southernmost point
between North Carolina and South Carolina. Between the
islands, there are over 45 miles of ocean coastline that on an
annual basis attracts over 50,000 visitors. Ocean Isle Beach
is conveniently located between the very large tourist towns
of Wilmington, NC and Myrtle Beach, SC (estimated 14
million visitors per year). Another driving factor for tourism
at Ocean Isle Beach are the championship quality and top-
rated golf courses designed by legends like Arnold Palmer,
Rees Jones, Dan Maples, William Byrd, Tim Cate and Fred
Couples along with a few others.
Sunset Commons Demographics
Population 1 Mile 3 Mile 5 Mile
2017 Total Population 906 8,197 19,511
2022 Population 1,051 9,348 22,311
Pop Growth 2017-2022 16.00% 14.04% 14.35%
Average Age 47.60 52.80 52.30
Households 1 Mile 3 Mile 5 Mile
2017 Total Households 405 3,832 9,062
HH Growth 2017-2022 15.80% 14.01% 14.46%
Median Household Inc $43,748 $56,026 $50,518
Avg Household Size 2.20 2.10 2.10
2017 Avg HH Vehicles 2.00 2.00 2.00
Housing 1 Mile 3 Mile 5 Mile
Median Home Value $238,666 $262,101 $236,106
/8
Median Year Built 1966 1995 1994LIMITING CONDITION
Cushman & Wakefield is the exclusive agent for the sale of this property and, as such,
will act as the Seller’s Agent. Consequently, the prospective purchaser should not
disclose any confidential information to Cushman & Wakefield.
This Offering Memorandum was prepared by Cushman & Wakefield, and has been
reviewed by Seller. It contains selected information pertaining to the Property
and does not purport to be all-inclusive or to contain all of the information that a
prospective purchaser may desire. All financial projections are provided for general
reference purposes only and are based on assumptions relating to the general
economy, competition, and other factors that, therefore, are subject to material
change or variation. An opportunity to inspect the Property will be made available to
qualified prospective purchasers.
In this Offering Memorandum, certain documents, including leases and other materials,
are described in summary form and do not purport to be complete nor, necessarily,
accurate descriptions of the full agreements involved, nor do they constitute a legal
analysis of such documents. Interested parties are expected to independently review
all documents.
This Offering Memorandum is subject to prior placement, errors, omissions, changes, or
withdrawal without notice and does not constitute a recommendation, endorsement,
or advice as to the value of the Property by Cushman & Wakefield, or the Seller. Each
prospective purchaser is to rely upon its own investigation, evaluation, and judgment
as to the advisability of purchasing the Property described herein.
Seller 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 party at any time with or without notice. Seller shall have no legal commitment
or obligation to any purchaser reviewing this Offering Memorandum or making an
offer to purchase the Property unless a written agreement for the purchase of the
Property has been fully executed, delivered, and approved by the Seller, and any
conditions to Seller’s obligations thereunder have been satisfied or waived. Cushman
& Wakefield is not authorized to make any representations or agreements on behalf
of Seller.
This Offering Memorandum is the property of Cushman & Wakefield, and may be used
only by parties approved by Cushman & Wakefield. The Property is privately offered,
and by accepting this Offering Memorandum, the party in possession hereof agrees
(i) to return it to Cushman & Wakefield, and (ii) that this Offering Memorandum and
its contents are of a confidential nature and will be held and treated in the strictest
confidence. No portion of this Offering Memorandum may be copied or otherwise
reproduced or disclosed to anyone without the prior written authorization of
Cushman & Wakefield and Seller. The terms and conditions set forth above apply to
this Offering Memorandum in its entirety. /9EXPERIENCE A NEW LEADER
IN COMMERCIAL REAL ESTATE SERVICES.
SAM YOUNG DAVID HOPPE
Investment Advisor Investment Advisor
+1 704 887 3024 + 1 704 335 4446
sam.young@cushwake.com david.hoppe@cushwake.com
550 South Tryon Street Suite 3400 | Charlotte, NC 28202 | +1 704 375 7771You can also read
