HOLCOMB BRIDGE ANIMAL HOSPITAL | ROSWELL, GA - 8 YRS ABS NNN
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OFFERING MEMORANDUM
HOLCOMB BRIDGE ANIMAL HOSPITAL | ROSWELL, GA
$ 6 8 3 ,2 0 0 8 YR S 7. 5 0 % AB S N N N
PRICE TE R M R E M A I N I N G C A P RAT E L E AS E
1|
CONTENTS 03 EXECUTIVE OVERVIEW 07 FINANCIAL OVERVIEW 09 TENANT OVERVIEW 11 AREA OVERVIEW LISTED BY: ANDREW EVANS Associate D: (949) 662-2256 M: (925) 360-0277 E: andrew.evans@matthews.com License No. 02055475 (CA) RAHUL CHHAJED Associate Vice President & Director D: (949) 432-4513 M: (818) 434-1106 E: rahul.chhajed@matthews.com License No. 01986299 (CA) MICHAEL MORENO Associate Vice President & Director D: (949) 432-4511 M: (818) 522-4497 E: michael.moreno@matthews.com License No. 01982943 (CA) KYLE MATTHEWS Broker of Record License No. 67120 (GA) 2
EXECUTIVE SECTION
OVERVIEW 01
3
PROPERTY HIGHLIGHTS
• Tenant Investment in Location – Veterinary Clinics rarely relocate due to difficulty
retaining the same patients in a new location, and high costs of moving
• E-Commerce & Recession-Resistant Property – Veterinary properties are extremely
sought-after investments for their resistance to downturns in the economy and
e-commerce trends that affect traditional retail properties
• Strong Performance History – Alliance Animal Health acquired the practice in 2018
because of the site’s strong performance
• Attractive Rental Increases (Strong Inflation Hedge) – Lease Features 2.5% annual
increases throughout base term and options
• Long Term Absolute NNN Lease Structure – This investment offers a potential investor
a very passive “coupon-clipper” investment
LOCATION HIGHLIGHTS LIST PRICE PROPERTY ADDRESS
• Affluent Demographics - Population of over 200,000 within a 5-Mile Radius
$683,200 1575 HOLCOMB BRIDGE RD
ROSWELL, GA
• Six Figure Household Income – The average household income in the 1-5-mile radius
exceeds $200,000
• Strong Population Growth – The average growth in the immediate trade area in the past
8 years averaged 10%, and is projected to grow 4% in the next 5 years
GROSS LEASABLE AREA CAP RATE
± 2,638 SF 7.50%
TENANT HIGHLIGHTS
• Rapid Tenant Expansion – Alliance Animal Health is an acquirer and operator of general
practice and specialty veterinary hospitals with over 60+ locations across the country. Alliance
Animal Health acquires successful and established veterinary practices within communities
• Extremely Insulated to Economic Downturns – Pet Care spending grew during the past YEAR 1 NOI LEASE TERM REMAINING
two economic downturns and recessions. Spending grew 29% during the 2001 Economic
$51,250 ±8 YEARS
Recession and grew 17% during the 2008 Great Recession
HOLCOMB BRIDGE
A N I M A L H O S P I TA L
HOLCOMB BRIDGE RD
± 42,000 VPD
OLD ALABAMA RD
± 18,000 VPD
HOLCOMB BRIDGE RD
± 42,000 VPD
HOLCOMB BRIDGE
A N I M A L H O S P I TA L
6
FINANCIAL SECTION OVERVIEW 02 7 7
PROPERTY SUMMARY
ANNUALIZED OPERATING DATA
List Price $683,200
NOI $51,250 LEASE YEARS MONTHLY RENT ANNUAL RENT CAP RATE
CAP Rate 7.50%
8/1/2019 - 7/31/2020 $4,270.83 $51,250.00 7.50%
Price/SF $258.98
GLA ±2,638 SF
8/1/2020 - 7/31/2021 $4,377.60 $52,531.25 7.69%
Year Built 1980
8/1/2021 - 7/31/2022 $4,487.04 $53,844.53 7.88%
LEASE SUMMARY
8/1/2022 - 7/31/2023 $4,599.22 $55,190.64 8.08%
Tenant Name Alliance Animal Health
Type of Ownership Fee Simple
8/1/2023 - 7/31/2024 $4,714.20 $56,570.41 8.28%
Lease Type Absolute NNN
Original Lease Term 10 Years
8/1/2024 - 7/31/2025 $4,832.06 $57,984.67 8.49%
Lease Commencement Date 8/1/18
Lease Expiration Date 8/1/28
8/1/2025 - 7/31/2026 $4,952.86 $59,434.29 8.70%
Term Remaining ±8 Years
Increases 2.5% Annually
8/1/2026 - 7/31/2027 $5,076.68 $60,920.14 8.92%
Options Four (4), Five (5) Year Options
Landscaping Professional
8/1/2027 - 7/31/2028 $5,203.60 $62,443.15 9.14%
Topography Generally Level
8
TENANT SECTION
OVERVIEW 03
9
» TENANT NAME » WEBSITE » ALLIANCE ANIMAL HEALTH
H ol com b Br i dge hbah o s pit al.co m 60+
Ani ma l H osp i t a l/
Al l i a nce Ani ma l
H ea l t h
TENANT OVERVIEW
Founded in 1980, Holcomb Bridge Animal Hospital see themselves as a dedicated group of professionals working together in the common goal of achieving
medical excellence. At Holcomb Bridge Animal Hospital, you can rest assured that you and your pets will get the best quality of veterinary care available. Their
motto is, “We Specialize In Care.” They offer the services necessary to help diagnose, treat and manage illnesses affecting all the body systems. As well as surgery
and dentistry with the patient’s safety and comfort in mind. Their diagnostic capabilities allow us to rapidly obtain the information needed to help your pet.
Holcomb Bridge Animal Hospital prides itself as being a primary care facility. Therefore, they offer boarding for their clients pets so that they are better able to
provide the extra care they need while they are away from home. They are also happy and open to board new non-client pets after an initial discounted pre-
boarding exam is complete in office. Every guest is treated with a flea preventative upon entrance and a bath when they depart. Bathing and skin treatments, for
those with special needs or just to freshen up, are always welcome. All bathed pets have their nails trimmed, and ears cleaned expressed if needed.
Alliance Animal Health is a multi-site owner, operator and business partner to veterinarians in the United States. Alliance Animal Health allows veterinarians to
continue to practice medicine independently while providing resources and assistance in business operations. Veterinarians retain all the benefits of being an
independent practice, but gain the additional advantages associated with becoming part of a larger organization. These include access to professional marketing,
inventory management expertise, purchasing power, collaborative synergies, and financial resources.AREA SECTION
OVERVIEW 04
11DEMOGRAPHICS
ROSWELL, GA
POPULATION 1-MILE 3-MILE 5-MILE
Roswell is a city in north Fulton County, Georgia. Go back in time within any of their historical 2025 PROJECTION 16,393 88,912 217,081
homes that are open to the pubic for tours, play in the outdoors - whether on the trails or in 2020 ESTIMATE 15,539 84,581 205,967
the river, dance the night away at a concert, shop ‘til you drop and bask in the beauty of our 2010 CENSUS 14,043 77,083 186,053
variety of art showcased throughout our community. Roswell has grown throughout the GROWTH: 2020 - 2025 5.50% 5.12% 5.40%
years, while still keeping its unique natural and historic roots. The city is located on the GROWTH: 2010 - 2020 10.65% 9.73% 10.70%
northern banks of the Chattahoochee River in the area once called “Enchanted Land.” HOUSEHOLDS 1-MILE 3-MILE 5-MILE
2025 PROJECTION 6,229 36,600 88,333
The city’s largest employers are The Kimberly Clark Corporation, North Fulton Regional 2020 ESTIMATE 5,890 34,582 83,400
Hospital, Harry’s Farmers Market, and The City Of Roswell. A section of Route 400 between 2010 CENSUS 5,269 30,849 74,194
Roswell and Atlanta is known as the high tech corridor, where many technology firms like GROWTH: 2020 - 2025 5.76% 5.83% 5.92%
Kimberly Clark have factories or offices. Businesses with their headquarters in Roswell include GROWTH: 2010 - 2020 11.79% 12.10% 12.41%
Snorg Tees, Tripwire Interactive, and Pharsalia Technologies. The economy is large enough to INCOME 1-MILE 3-MILE 5-MILE
recruit franchises from many popular Georgia businesses like Moe’s Southwest Grill, Chick Fil AVERAGE HH INCOME $102,032 $123,357 $146,474
A, and Heel Sew Quik operate multiple locations in Roswell.
MEDIAN HH INCOME $68,521 $81,177 $96,679
12ATLANTA, GA
Atlanta is the capital of and the most populous city in the U.S. state of Georgia, the cultural and economic center of the Atlanta metropolitan area, and the ninth largest
metropolitan area in the United States.
Atlanta is an “alpha-” or “world city”, exerting a significant impact upon commerce, finance, research, technology, education, media, art, and entertainment. It ranks 36th
among world cities and 8th in the nation with a gross domestic product of $270 billion. Atlanta’s economy is considered diverse, with dominant sectors including logistics,
professional and business services, media operations, and information technology.
Encompassing $304 billion, the Atlanta metropolitan area is the eighth-largest economy in the country and 17th-largest in the world. Corporate operations comprise a large
portion of Atlanta’s economy, with the city serving as the regional, national, or global headquarters for many corporations. Atlanta contains the country’s third largest
concentration of Fortune 500 companies, and the city is the global headquarters of corporations such as The Coca-Cola Company, The Home Depot, Delta Air Lines, AT&T
Mobility, Chick-fil-A, UPS, and Newell-Rubbermaid. Over 75 percent of Fortune 1000 companies conduct business operations in the Atlanta metropolitan area, and the region
hosts offices of about 1,250 multinational corporations.
Atlanta is home to professional franchises for three major team sports: the Atlanta Braves of Major League Baseball, the Atlanta Hawks of the National Basketball Association,
and the Atlanta Falcons of the National Football League. Due to the more than 30 colleges and universities located in the city, Atlanta is considered a center for higher education.
TOP COUNTY EMPLOYERS
9 TH
LARGEST
#1
MO ST P O P U LATE D C I TY
ATLANTA, GA
±22 MILES
M ETR OPO LITA N A REA I N GE O R GI A
IN T HE NATION
2.0% 13.5%
PR OJ ECTED JOB H H I N CO M E GR OW TH
GR OWTH -FO R B E S
13ATLANTA ECONOMY
Atlanta’s economy is considered diverse, with dominant sectors including
logistics, professional and business services, media operations, and information TOURISM
technology. Corporate operations comprise a large portion of Atlanta’s economy,
with the city serving as the regional, national, or global headquarters for many Atlanta is one of the most visited cities in America, with over 37 million visitors per
corporations. Atlanta contains the country’s third largest concentration of Fortune year. In 2015 alone, the tourism industry generated $58.9 billion in business sales.
500 companies, and the city is the global headquarters of corporations such as Although the most popular attraction among visitors to Atlanta is the Georgia
The Coca-Cola Company, The Home Depot, Delta Air Lines, AT&T Mobility, Chick- Aquarium, the world’s largest indoor aquarium, Atlanta’s tourism industry mostly
fil-A, UPS, and Newell-Rubbermaid. Over 75 percent of Fortune 1000 companies driven by the city’s history museums and outdoor attractions. Atlanta contains a
conduct business operations in the Atlanta metropolitan area, and the region notable amount of historical museums and sites, including the Martin Luther
hosts offices of about 1,250 multinational corporations. Many corporations are King, Jr. National Historic Site, which includes the preserved childhood home of
drawn to Atlanta on account of the city’s educated workforce; as of 2010, nearly Dr. Martin Luther King, Jr., as well as his final resting place.
43% of adults in the city of Atlanta have college degrees, compared to 27% in the
nation as a whole. The Atlanta Cyclorama & Civil War Museum, which houses a massive painting and
diorama in-the-round, with a rotating central audience platform, depicting the
Battle of Atlanta in the Civil War; the World of Coca-Cola, featuring the history of
the world famous soft drink brand and its well-known advertising; the College
Football Hall of Fame which honors college football and its athletes; the National
Center for Civil and Human Rights, which explores the Civil Rights Movement and
its connection to contemporary human rights movements throughout the world;
the Carter Center and Presidential Library, housing U.S. President Jimmy Carter’s
papers and other material relating to the Carter administration and the Carter
family’s life; and the Margaret Mitchell House and Museum, site of the writing of
the best-selling novel Gone with the Wind. Atlanta also contains various outdoor
attractions.
The Atlanta Botanical Garden, adjacent to Piedmont Park, is home to the 600-foot-
long Kendeda Canopy Walk, a skywalk that allows visitors to tour one of the city’s
last remaining urban forests from 40-foot-high. The Canopy Walk is considered
the only canopy-level pathway of its kind in the United States. Zoo Atlanta, located
in Grant Park, accommodates over 1,300 animals representing more than 220
species. Home to the nation’s largest collections of gorillas and orangutans, the
Zoo is also one of only four zoos in the U.S. to house giant pandas. Festivals
showcasing arts and crafts, film, and music, including the Atlanta Dogwood
Festival, the Atlanta Film Festival, and Music Midtown, respectively, are also
popular with tourists.
14AT L A N TA PHIPPS
PLAZA
MIDTOWN NO. 2 OPUS
AT L A N TA
GDP OF $385 BILLION
INDUSTRIAL
PA R K NATION'S THIRD-LARGEST
UNION
AT L A N TA
PLACE CONCENTRATION OF FORTUNE
B OTA N I C A L 500 COMPANIES
GARDEN
POPULATION OF 420,003.
CENTENNIAL
P R AT T P U L L M A N
YA R D S
YA R D
T H E AT L A N TA
B E LT L I N E LEGEND
MIXED-USE DEVELOPMENT
ATTRACTION
EDUCATION
HOSPITAL
GILLEN
LOGISTICS
CORPORATION
AIR TRAVEL
15CONFIDENTIALITY AGREEMENT & DISCLAIMER
This Offering Memorandum contains select information pertaining to the business and affairs of Holcomb Bridge Animal Hospital located at 17701
Cottonwood Drive, Roswell, GA 30076 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum
may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum
is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose
or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in
part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers,
employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or
any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections
and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1. The Offering Memorandum and its contents are confidential;
2. You will hold it and treat it in the strictest of confidence; and
3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner
detrimental to the interest of the Seller.
Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest
or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to
purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to
purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in
connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the
terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of
their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action
relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no
change in the state of affairs of the Property since the date this Offering Memorandum.
| 16HOLCOMB BRIDGE ANIMAL HOSPITAL
17701 COTTONWOOD DRIVE | ROSWELL, GA 80134
LISTED BY:
ANDREW EVANS RAHUL CHHAJED MICHAEL MORENO
Associate Associate Vice President & Director Associate Vice President & Director
D: (949) 662-2256 D: (949) 432-4513 D: (949) 432-4511
M: (925) 360-0277 M: (818) 434-1106 M: (818) 522-4497
E: andrew.evans@matthews.com E: rahul.chhajed@matthews.com E: michael.moreno@matthews.com
License No. 02055475 (CA) License No. 01986299 (CA) License No. 01982943 (CA)
KYLE MATTHEWS
Broker of Record
License No. 67120 (GA)
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