POTTERY BARN WAREHOUSE - Fredericksburg, VA - LoopNet
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OFFERING
MEMORANDUM
POTTERY BARN
WAREHOUSE
Fredericksburg, VA
Actual Site
Jonathan W Hipp, President & CEO Andrew Fallon, Executive Managing Director Rich Murphy, CCIM, Managing Director
703.787.4725 | jhipp@calkain.com 703.787.4733 | afallon@calkain.com 571.449.8234 | rmurphy@calkain.com
Pottery Barn Warehouse | Financial Summary
Asking Price Cap Rate Investment Highlights
$3,205,000 7.00% •• Located in the 2.5 Million SF Central Park Shopping Center along the I-95
corridor
New 5-year lease signed, making firm term extend through 2024; shows
1731 Carl D Silver Pkwy ••
tenant’s initial success and commitment to the location
Fredericksburg, VA 22401 •• Publicly traded company with over $5 billion in annual sales
•• Signage on pylon located on Plank Road at a signalized intersection with
Asset Summary 87,000 VPD
•• Priced below the assessed value of $3.974M
Net Operating Income (NOI) $224,328
•• Likely tax benefit when the asset is re-assessed in 2020; contact broker
Rentable Square Feet 33,179+/- SF for details
•• Lease requires tenant to make $200,000 investment to refresh and
Land Area 2.82+/- Acres improve storefront and interior
•• 54 miles south of Washington, DC and part of the Washington, DC MSA
Williams-Sonoma Stores, Inc.
Tenant •• At $97/SF the property is priced well below replacement cost
d/b/a Pottery Barn Warehouse
Stock Symbol NYSE: WSM
Ownership Type Fee Simple
Lease Type Modified Gross Lease
Pays Fixed CAM Charge of
Tenant CAM Contribution
$7,935.31/Month
Year Built 2002
Store Opened October 26, 2017
Lease Term Remaining 5 Years
Rent Commencement February 1, 2019
Lease Expiration January 31, 2024
Calkain Companies | 2
Pottery Barn Warehouse | Financial Summary
5 Year Pro-Forma
Year 1 Year 2 Year 3 Year 4 Year 5
2/1/19-1/31/20 2/1/20-1/31/21 2/1/21-1/31/22 2/1/22-1/31/23 2/1/23-1/31/24
Income
Base Rent $215,663 $215,663 $215,663 $215,663 $215,663
Fixed CAM Contribution $95,224 $95,224 $95,224 $95,224 $95,224
Gross Rental Income $310,887 $310,887 $310,887 $310,887 $310,887
Operating Expenses
Landscaping $12,640 $13,019 $13,410 $13,812 $14,226
Sweeping $4,800 $4,944 $5,092 $5,245 $5,402
Snow Removal $8,500 $8,755 $9,018 $9,288 $9,567
Fire/Life Saftey $1,800 $1,854 $1,910 $1,967 $2,026
Repairs & Maintainence $7,000 $7,210 $7,426 $7,649 $7,879
Association Fees $ 5,900 $6,077 $6,259 $6,447 $6,641
Real Estate Taxes $32,348 $29,390 $27,465 $28,289 $29,138
Insurance $4,244 $4,456 $4,679 $4,913 $5,159
Management Fees $9,327 $9,327 $9,327 $9,327 $9,327
Total Operating Expenses $86,559 $85,032 $84,586 $86,937 $89,364
Net Operating Income (NOI) $224,328 $225,855 $226,301 $223,950 $221,523
Rent Roll
Annual Base Fixed Annual Fixed Gross Rental
Tenant Term SF Rent/SF Gross Rent/SF
Rent CAM/SF CAM Income
William Sonoma Stores, Inc. 2/1/2019 - 1/31/2024 33,179 $6.50 $215,663 $2.87 $95,223 $9.37 $310,887
Calkain Companies | 3
Tenant Overview
About Williams-Sonoma, Inc. About Pottery Barn Warehouse
Williams-Sonoma, Inc. (NYSE: WSM) is a multi-channel The Warehouse store carries items from Pottery
specialty retailer of high-quality products for the home. Barn, Pottery Barn Kids Furniture and PB Teen
In 1956, Chuck Williams, turned a passion for cooking and eating with friends into a Furniture with prices up to 75 percent off original
small business with a big idea. Opening the first store in Sonoma, California, selling retail price tags. Most of the items are new, first quality furniture and décor, and
French cookware that was intriguing while visiting Europe but that could not be the merchandise will change weekly as new products arrive. The Fredericksburg
found in America. Chuck’s business, which set a standard for customer service, location is Pottery Barn’s Regional Warehouse Store offering a wide variety of
took off and helped fuel a revolution in American cooking and entertaining that quality brand merchandise at discounts rarely available at the companies retail
continues today. locations.
In the decades that followed, the quality of products, ability to identify new
opportunities in the market and people-first approach to business has facilitated
expansion beyond the kitchen into nearly every area of the home. Additionally,
by embracing new technologies and customer-engagement strategies as they
emerge, they are able to continually refine their best-in-class approach to multi-
channel retailing.
Today, Williams-Sonoma, Inc. is one of the United States’ largest e-commerce
retailers with some of the best known and most beloved brands in home furnishings.
Currently operating in the United States, Canada, Puerto Rico, Australia, and
the United Kingdom, and franchise their brands to third parties in a number of
countries in the Middle East, the Philippines and Mexico. Their products are also
available to customers through their catalogs and online worldwide.
Tenant # of Locations Stock Symbol Market Cap Revenue # of Employees
Snapshot 612 (October 2015) NYSE: WSM $4.32Bil $5Bil 19,350 (2017)
Calkain Companies | 4
Grand Opening
Calkain Companies | 5
Site Photos
Calkain Companies | 6
Location Overview
Baltimore, MD
Washington, DC
66
Alexandria, VA
Manassas, VA
81 95
Subject Site Stafford, VA
Fredericksburg, VA
Charlottesville, VA 95
64
64
Richmond, VA
Stafford 11 miles Alexandria 49 miles Richmond 58 miles
Distance To Manassas 40 miles Washington 54 miles Baltimore 99 miles
Calkain Companies | 7
1731 Carl D Silver Pkwy | Fredericksburg, VA 22401
95
2.5M SF Central Park Shopping Center Subject Site
Central Park
200+
0 VPD
Retailers
47,00
I-95 1
D
Plank Rd 87,000 VP
95
Spotsylvania
Mall
1.2Mill SF Spotsylvania Towne Centre
1731 Carl D Silver Pkwy | Fredericksburg, VA 22401
VPD
,000
ill Ave 13
Fall H
Ca
rl
D
Sil Subject Site
ve
rP
kw
y
The Car Wash
0 VPD
21,00
d
Blv
an
Cow
ocation
L Interstate 21,000 VPD Located in Central Park
Highlights Location (I-95) on Cowan Blvd Shopping Center
Site Plan
useable parking spaces
via a perpetual easement
useable parking spaces
via a perpetual easement
The Car Wash
Cowan Blvd 21,000 VPD
Calkain Companies | 10Location Overview, 1/3/5 Miles
1 Mile 3 Miles 5 Miles
Population
2018 Population 5,127 45,653 122,990
2023 Population 5,882 49,259 132,523
2018 Median Age 29.3 33.5 35.2
Households
95 2018 Total Households 1,781 17,094 44,014
2023 Total Households 2,021 18,342 47,200
5 Mile
Median Household Income
2018 Median HH Income $49,346 $58,012 $75,818
2023 Median HH Income $55,103 $68,278 $86,072
3 Mile 1 Average Household Income
2018 Average HH Income $67,379 $81,345 $94,651
2023 Average HH Income $77,454 $95,911 $111,601
1 Mile
Subject Site
5 Mile Radius | Demographics
Fredericksburg
1
Population Avg HH Income
122,990 $94,651
95
Total Businesses Total Employees
5,150 65,640
Calkain Companies | 11Fredericksburg Demographics
About Fredericksburg
• With the allure of affordable housing, quality public schools, an attractive • The Fredericksburg Region has one of the highest concentrations of PhD’s
center of town steeped in history and an abundance of nearby recreation in the country.
destinations, the Fredericksburg Region has grown rapidly as a bedroom • In 2015, the median income within the Fredericksburg Region was $84,791
community. which was 28% higher than the median for the State for and 52% higher
than the median for the US as a whole.
• 2015 Average Household Income in the region was just over $100,000, with
over 46% of the household earning more than $100,000 per year.
• Over half the resident workforce commutes to jobs outside the
Fredericksburg Region. Of those that do, 35% work in Price Georges
County, 22% work in Fairfax County, 13% work in the District and 11% work
in either Arlington or Alexandria.
• The average commuting time of residents in the Fredericksburg Region ranks
among the longest in the country. Over as quarter of the area’s workforce
spend more than 2 hours commuting to/from work each workday and over
40% spend at least 1.5 hours commuting each workday.
• Primarily attracts residents from the densely populated and expensive
“close-in” Virginia jurisdictions including Arlington, Fairfax and Prince
William Counties and the City of Alexandria.
• Area immigration has been largely comprised of highly educated and
relatively affluent households headed by individuals holding managerial and
executive level positions.
Calkain Companies | 12Market Overview
About Central Park
Located in Fredericksburg, Virginia, Central Park is a
2.5 million-square-foot Open Air Regional Shopping
Center, featuring some of the nation’s most prominent
retailers, a wide variety of restaurants and services,
as well as hotel, office and entertainment uses.
Retailers include Pottery Barn Warehouse, Target,
Walmart, Ann Taylor Loft, DSW Shoes, Talbot’s, Best
Buy, Kohl’s, Old Navy, Lowe’s, buybuy Baby, Total
Wine, Five Below, Party City and Barnes & Noble.
With easy access from both Washington, D.C. and
Richmond, Central Park attracts shoppers from a
wide trade are. The immediate trade area draws
from the Fredericksburg market and six surrounding
counties. Many of the visitors staying at the 36
area hotels make Central Park a part of their travel
itinerary.
Central Park also benefits from an established
daytime population of more than 3,000 employees
from the multiple professional office buildings
or Vid
and other businesses in Central Park. Celebrate kf
c
Virginia, an extension of Central Park, is a mixed-use eo
Cli
development spanning 2,400 acres that includes
Wegman’s, three hotels, a conference center, 1,200
residential units and a 120 SF convention/expo
center and an outdoor concert venue with a capacity
of 5,000 people.
Calkain Companies | 13Market Overview
Fredericksburg, VA Fredericksburg Region
In addition to the City of Fredericksburg, the Fredericksburg Region, includes
Spotsylvania, Stafford, King George and Caroline Counties. The Fredericksburg
Region has been one of the fastest growing regions in the Commonwealth of
Virginia and the United States. Recent census data from the U.S. Census Bureau
has ranked Fredericksburg as the 6th fastest growing locality in the U.S. with
a growth rate of 5.8%. Its high rate of growth is expected to continue well into
future causing its population by some estimates to swell to over 560,000 by the
year 2030, which make it one of the fastest growing areas in the country.
A major driver of growth in the Fredericksburg Region is its appeal as a bedroom
Fredericksburg is an independent city in the Commonwealth of Virginia.
community. With the lure of affordable housing, high-quality public schools and
Located 54 miles south of Washington, D.C. and 58 miles north of Richmond,
an array of nearby recreational destinations, the area has and continue to attract
Fredericksburg is part of the Northern Virginia region and is included in the
residents from the
Washington-Arlington-Alexandria, DC-VA-MD-WV Metropolitan Statistical
densely populated
Area.
and increasingly
Located near where the Rappahannock River crosses the Fall Line, Fredericksburg expensive “close-in”
was a prominent port in Virginia during the colonial era. During the Civil War, the Virginia jurisdictions
town, located halfway between the capitals of the opposing forces, was the site including Arlington,
of the Battle of Fredericksburg and Second Battle of Fredericksburg, preserved Fairfax and Prince
in part as the Fredericksburg and Spotsylvania National Military Park. Tourism William Counties and
is a major part of the economy, with approximately 1.5 million people visiting the City of Alexandria.
the Fredericksburg area annually, including the battlefield park, the downtown In-migration to the
visitor center, events, museums and historic sites. area has been largely
Today, Fredericksburg is a thriving municpality and serves as the commercial comprised of highly
center for the rapidly growing counties that surround it, which together is educated and relatively
known as the Fredericksburg Region. Within the city of Fredericksburg itself affluent households
major employers includethe University of Mary Washington, Mary Washington headed by individuals
Healthcare, Geico and FBI National crime lab. holding managerial
and executive level
The City also is home to a highly successful, 2.5 million square foot open-air positions.
shopping center complex know an Central Park which is considered as one of
largest shopping centers on the east coast. Across the street from Central Park,
in Spotsylvania County, is a 1.7 million square foot, largely enclosed regional mall
known as the Spotsylvania Town Center. Together these two centers, which are
complimentary to each other in terms of merchandising, along with other retail
in the immediate vicinity, represent a 4.5 million square foot retail district that
reigns dominant within the Fredericksburg Region as the primary destination
for shopping, dining and entertainment. It also represents one of the largest
centers of commercial retail in the Washington DC Metropolitan Area.
Calkain Companies | 14Market Overview
Fredericksburg, VA Fredericksburg Region - 10 Largest Employers
In 2015, the median income for the Fredericksburg region was $84,791 which
was 28% higher than the median for Virginia and 52% higher than the median •• U.S Department of Defense •• Walmart
for the U.S. as a whole. The 2015 average household income in the region was •• Geico, Government •• Mary Washington University
just over $100,000, with over 46% of households earning more than $100,000 Employees Insurance •• County of Spotsylvania
per year. The Fredericksburg Region is strategically located within 750 miles •• Stafford County Schools
of 60% of the nation’s population. Interstate 95, America’s busiest North/South •• County of Stafford
corridor, directly bisects the Region and provides easy access to twelve other •• Spotsylvania County School •• University of Mary
interstate highways including. Interstate 95 plays a vital role in transportation Board Washington
as nine interchanges serve the Fredericksburg Region. •• U.S. Federal Bureau of
Investigation
•• The City of Fredericksburg serves as the commercial center for the
prospering four-county region.
•• The I-95/Plank Road interchange where the Central Park Shopping
Center is located, serves as a major commercial center for the
prospering four-county region.
•• The Fredericksburg Region is home to 3 technology driven military
bases including Dahlgren Naval Surface Warfare Center, Fort A.P. Hill,
and Marine Corps Base Quantico.
Calkain Companies | 15About Us
Calkain Companies LLC is a boutique commercial real estate
investment banking firm that provides consulting and brokerage
services to both private and institutional clientele with a focus on
single tenant net lease investments. We pride ourselves on being an
innovative leader by providing our clients a full array of commercial
real estate investment brokerage and asset management solutions,
including advisory, research, debt and equity placement and wealth
management.
Calkain has built solid, lasting relationships that have been the
cornerstone of how we do business. Calkain approaches each
assignment with an eye toward each client’s individual needs.
Whether private or institutional investors, Calkain delivers real
estate solutions that maximize value while building wealth for all
of our clients.
At Calkain, our foresight and innovation are leading the net lease
investment industry.
$12 Billion $400 Million Building a solid foundation for your investment portfolio
in Closed Transactions in Active Listings calkain.com
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Tel: 703.787.4714 Tel: 813.282.6000 Tel: 404.900.5629 Tel: 617.261.8584 Tel: 610.410.5410 Tel: 703.787.4714
Disclaimer: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity
without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein
is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected
financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of
the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we
believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters
and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.You can also read
