VERIZON WIRELESS OFFERING MEMORANDUM - LOOPNET
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Subject Property Offering Memorandum Verizon Wireless 3190 Doctor MLK Jr. Blvd | New Bern, NC 28562
Confidentiality and Restricted Use Agreement
This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for Offered Exclusively by
your consideration of the opportunity to acquire the commercial property described herein (the “Property”).
This COM may be used only as stated herein and shall not be used for any other purpose, or in any other
manner, without prior written authorization and consent of SJC.
This COM does not constitute or pertain to an offer of a security or an offer of any investment contract.
Ryan Butler
This COM contains descriptive materials, financial information and other data compiled by SJC for the
Managing Director
convenience of parties who may be interested in the Property. Such information is not all inclusive and is not
represented to include all information that may be material to an evaluation of the acquisition opportunity
rbutler@stanjohnsonco.com
presented. SJC has not independently verified any of the information contained herein and makes no
representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries Brad Moulder
and discussions of documentation and/or financial information contained herein are qualified in their Senior Director
entirety by reference to the actual documents and/or financial statements, which upon request may be bmoulder@stanjohnsonco.com
made available. An interested party must conduct its own independent investigation and verification of any
information the party deems material to consideration of the opportunity, or otherwise appropriate, without
Anne Perrault
reliance upon SJC.
Director
aperrault@stanjohnsonco.com
The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the
right to negotiate with any number of interested parties at any time. The Property is offered and sold by its
owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any Brandon Sherrill
customary warranties of title. Analyst
bsherrill@stanjohnsonco.com
BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information
you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in In Association With:
any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, Jeff Hughes
and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon NC Lic. #101282
request by SJC at any time, you will return and/or certify your complete destruction of all copies of this
COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives,
agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates,
officers, employees, representatives, agents and principals, from and with respect to any and all claims and
liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning
Stan Johnson Company
the Property; (5) you will not provide this COM or any of the Information to any other party unless you first
6120 South Yale Avenue | Suite 300
obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth
Tulsa, Oklahoma 74136
herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an
adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, P: 918.494.2690
but not limited to, injunctive relief and specific performance, in connection with such a violation and shall
not be required to post a bond when obtaining such relief. stanjohnsonco.com
Purchase Price: $1,330,885
Cap Rate: 7.80%
The Offering Investment Highlights
Stan Johnson Company is pleased to present to qualified investors the Strong Guarantor
opportunity to acquire a 100% fee simple interest in the Verizon Wireless The lease is fully guaranteed by Cellular Sales of Knoxville, one of the
(the “Property”) located in New Bern, NC. largest Premium Verizon Wireless Retailers with over 600 locations across
the U.S. and over $1 billion in annual sales.
This Verizon Wireless location occupies a 2,500 square foot building
on an approximately 0.37 acre outpad to New Bern Mall and has been Low Competition within Trade Area
in operation since 2007. The Property originally had a ten (10) year This Verizon Wireless is the only location that services New Bern, NC. The
term, but is currently in the first renewal option. The lease has a NN nearest Verizon location is more than 20 miles away.
expense structure, requiring the tenant to pay a prorated amount for
CAM, insurance and taxes. The Landlord is responsible for the roof and Highly Visible, Easily Accessible Site
structure. Fronting Doctor MLK Jr. Blvd. (29,000 VPD) near the intersection of U.S. 70
(44,000 VPD), Verizon is visible from the street and adjacent to a signalized
The Property benefits from a household income of $77k with a one-mile intersection.
radius, a population of 62k within a ten-mile radius, and is located at a
signalized entrance to the New Bern Mall in the community’s primary Located in Primary Commercial Corridor
retail trade area. Anchored by the intersection of U.S. 70 (44,000 VPD) An outparcel to the New Bern Mall, other retailers in the immediate area
and Doctor MLK Jr. Boulevard (29,000 VPD), this busy retail corridor include Walmart Supercenter, Lowe’s, Target, PetSmart, Publix, Starbucks,
includes Walmart Supercenter, Target, Lowe’s, PetSmart, Big Lots, Chick- Chick-fil-A and Bank of America.
fil-A, Starbucks, Publix and Sherwin Williams among others.
Strong Local Economy
Verizon Wireless is a wholly-owned subsidiary of Verizon The Property’s one-mile average household income exceeds $77,000. New
Communications Inc., (NYSE: VZ) headquartered in New York. With Bern’s healthy economy is bolstered by its close proximity to the Marine
over 150 million subscribers and over 1,600 U.S. retail locations, Verizon Corps Air Station Cherry Point and the Fleet Readiness Center East, both of
Wireless is the nation’s largest and most reliable 4G LTE network. Its which provide stable jobs and support local economic activity. The city also
parent company, Verizon Communications, is the world’s 2nd largest serves as the gateway to the popular vacation sites along the Outer Banks.
telecommunications company and a leading provider of communications,
Limited Landlord Responsibilities
information and entertainment products and services to consumers,
The tenant is responsible for their pro rata share of CAM, insurance and
businesses and governmental agencies. The company reported a FY
taxes. Landlord is responsible for roof and structure.
2017 revenue of $126 billion and net income of $31.1 billion. Verizon
Communications currently holds an investment grade rating of BBB+ Attractive Rental Increases
from Standard and Poor’s. The lease features 3% rental increases each year during option periods.
Verizon Wireless • New Bern, NC 3
Lease Abstract Rent Schedule
Dates Rent
Cellular Sales of North Carolina, LLC Lease Term
Tenant: Start End Annual Monthly PSF Increase
dba Verizon Wireless
Guarantor: Cellular Sales of Knoxville, Inc. 4/1/2007 3/31/2012 $85,000 $7,083 $34.00 -
3190 Doctor MLK Jr. Blvd Original Term
Address: 4/1/2012 3/31/2017 $95,000 $7,917 $38.00 12%
New Bern, NC 28562
Building Size (SF): 2,500 4/1/2017 3/31/2018 $97,850 $8,154 $39.14 3%
Land Area (AC): 0.37
4/1/2018 3/31/2019 $100,785 $8,399 $40.31 3%
Building Use: Retail - Consumer Electronics Option 1
4/1/2019 3/31/2020 $103,809 $8,651 $41.52 3%
(Current Term)
Original Term: 10 years
4/1/2020 3/31/2021 $106,923 $8,910 $42.77 3%
Original Term RCD: 4/1/2007
4/1/2021 3/31/2022 $110,131 $9,178 $44.05 3%
Original Expiration: 3/31/2017
Current Term (1st Option): 5 years 4/1/2022 3/31/2023 $113,435 $9,453 $45.37 3%
Current Term RCD: 4/1/2017 4/1/2023 3/31/2024 $116,838 $9,737 $46.74 3%
Current Term Expiration: 3/31/2022 Option 2 4/1/2024 3/31/2025 $120,343 $10,029 $48.14 3%
Lease Term Remaining: +/- 2.75 years
4/1/2025 3/31/2026 $123,953 $10,329 $49.58 3%
NOI: $103,809
4/1/2026 3/31/2027 $127,672 $10,639 $51.07 3%
Rent Increases: 3% increase each year during option periods
Renewal Options: Two (2) , Five (5) year options
Expenses: NN
Taxes: Tenant pays prorata share*
CAM: Tenant pays prorata share*
Insurance: Tenant pays prorata share*
Parking: Part of CAM
HVAC: Tenant
Utilities: Tenant
Roof: Landlord
Structure: Landlord
*During Extended term, Tenant shall pay an estimate for CAM, Insurance and Taxes based on
Subject Property
expenses for the previous year, and the actual amounts, shall be reconciled.
Verizon Wireless • New Bern, NC 4
Projected 2019 NOI Calculation
REVENUE Total PSF
Rental Revenue:
Base Rent $100,785 $40.31
Total Revenue $100,785 $40.31
Tenant Recovery Revenue:
CAM/Insurance $3,750 $1.50
Real Estate Taxes $3,750 $1.50
TOTAL RECOVERY REVENUE $7,500
EFFECTIVE GROSS INCOME $108,285
EXPENSES
CAM $3,400 ($1.36)
Insurance $350 ($0.14)
Real Estate Taxes $3,750 ($1.50)
Total Recoverable Expenses $7,500 ($3.00)
TOTAL EXPENSES $7,500
NET OPERATING INCOME $100,785
Subject Property
Verizon Wireless • New Bern, NC 5
Surrounding Retail Area
Verizon Wireless • New Bern, NC 6
Verizon Wireless
Verizon Wireless is a wholly-owned subsidiary of Verizon Communications
Inc., (NYSE: VZ) headquartered in New York. With over 150 million
subscribers and over 1,600 U.S. retail locations, Verizon Wireless is the
nation’s largest and most reliable 4G LTE network. Its parent company,
Verizon Communications, is the world’s 2nd largest telecommunications
company and a leading provider of communications, information and
entertainment products and services to consumers, businesses and
governmental agencies. The company reported a FY 2017 revenue of $126.0
billion and net income of $31.1 billion. Verizon Communications currently
holds an investment grade rating of BBB+ from Standard and Poor’s.
Verizon Communications Inc. was formed in New York in June of 2000
with the merger of Bell Atlantic Corp. and GTE Corp. Verizon began trading
on the New York Stock Exchange (NYSE) under the VZ symbol in July of
2000. It later began trading on the NASDAQ exchange under the same
symbol on March 10, 2010. Verizon Communications was added to the Dow
Jones Industrial Average in 2004. The company has seen great success
since its inception. Fortune Magazine consistently ranks Verizon amongst its
top performing Fortune 500 companies. In 2017, the publication ranked the
company 14th of 500 companies for profitability.
Cellular Sales of Knoxville is a premium authorized Verizon Wireless agent
that sells cellphones, accessories and service plans to customers at retail
locations across the U.S. The company is celebrating its 25th birthday in
2018 and is currently 600 locations strong and growing. Cellular Sales
of Knoxville initially marketed service on behalf of Cellular One and GTE
Wireless prior to the advent of Verizon Wireless in April 2000. By 2010, the
company had opened its 300th Verizon Wireless store, a year in which the
company made $488.5 million in revenue. The following year, the company
opened its 400th store. By 2013, the company’s annual revenue exceeded
$1 billion. Following its rapid growth, Cellular Sales of Knoxville has been
included on Inc. Magazine’s list of the nation’s 5000 fastest-growing
companies every year from 2008 to 2017.
Representative Photos
Verizon Wireless • New Bern, NC 7
Location Overview
New Bern, North Carolina is the county seat of Craven County and is the principal city of the New Bern MSA. Located near the coast, New Bern is 112
miles from Raleigh, 87 miles from Wilmington and 162 miles from Norfolk. As of 2015, the population was 30,070.
New Bern is home to various museums, historic homes, gardens, family centers and more. The brand new $65 million North Carolina History Center,
which details the history of North Carolina, is located in the Tryon Palace and Gardens complex in New Bern. The History Center and Gardens draw
tourists and locals alike to enjoy waterfront dining, shopping, artifacts and much more. Another popular site in New Bern is the Pepsi Family Center.
Known as the founding place of Pepsi Cola, New Bern’s Pepsi Family Center offers hands-on activities and the opportunity to learn more about the
founding of Pepsi.
New Bern is in proximity to the Marine Corps Air Station Cherry Point and the Fleet Readiness Center East in Havelock. Due to these stations nearby, the
Department of Defense is the largest employer in New Bern. The Fleet Readiness Center provides aeronautical maintenance, engineering and logistics
support for the Navy, and the Marine Corps Air Station houses the 2nd Marine Aircraft Wing. With over 3,000 employees, both locations employ
primarily civilians.
New Bern, NC
Verizon Wireless • New Bern, NC 8
Site Plan
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Verizon Wireless • New Bern, NC 9
Enlarged Site Plan
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Verizon Wireless • New Bern, NC 10CarolinaEast Berne Square
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Subject Property in New Bern is the only Verizon in a 20-mile radius
20 miles
35 miles
Verizon Wireless • New Bern, NC 12Demographics
3190 Doctor MLK Jr. Blvd | New Bern, NC
Population 1 mile 3 miles 5 miles 10 miles
2018 Population 1,809 18,511 39,095 62,633
2023 Population 1,827 18,518 39,066 62,602
2010-2018 Annual Rate 1.57% 0.38% 0.23% 0.31%
2018-2023 Annual Rate 0.20% 0.01% -0.01% -0.01%
Households
2018 Total Households 770 8,246 16,788 26,353
1 mile
2023 Total Households 779 8,258 16,783 26,349
3 miles
2010-2018 Annual Rate 1.55% 0.43% 0.25% 0.33%
2018-2023 Annual Rate 0.23% 0.03% -0.01% 0.00%
5 miles
Household Income
10 miles
2018 Average Household Income $77,546 $76,087 $67,235 $69,246
62K $77K
population avg. HH inc.
(10 miles) (1 mile)
Source: Esri, 2019
Verizon Wireless • New Bern, NC 13going beyond
Ryan Butler
Managing Director
rbutler@stanjohnsonco.com
Brad Moulder
Senior Director
bmoulder@stanjohnsonco.com
Anne Perrault
Director
aperrault@stanjohnsonco.com
Brandon Sherrill
Analyst
bsherrill@stanjohnsonco.com
In Association With:
Jeff Hughes
NC Lic. #101282
Stan Johnson Company
6120 South Yale Avenue | Suite 300
Tulsa, Oklahoma 74136
P: 918.494.2690
stanjohnsonco.com
The information contained herein was obtained from sources believed reliable, however,
Stan Johnson Company makes no guaranties, warranties or representations as to the
completeness thereof. The presentation of this property for sale, rent or exchange is
submitted subject to errors, omissions, change of price or conditions, or withdrawal
without notices.You can also read
