Verizon Wireless Strip Center 720 West Williams Street Apex, NC 27502 (Raleigh MSA)
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NET LEASED INVESTMENT OFFERING
Verizon Wireless Strip Center
720 West Williams Street
Apex, NC 27502 (Raleigh MSA)
www.bouldergroup.com
TABLE OF CONTENTS
NET LEASED INVESTMENT OFFERING
TABLE OF CONTENTS
1) Confidentiality & Disclaimer
2) Executive Summary
3) Property Overview
4) Rent Roll
5) Proforma Analysis
6) Aerial
7) Site Plan
8) Maps
9) Tenant Profiles
10) Demographic Comparison Report
11) Location Overview
12) Contact Information
www.bouldergroup.com
CONFIDENTITALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING
CONFIDENTIALITY & DISCLAIMER
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to
be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person
or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide
summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the
subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The
Boulder Group has not made any investigation, and makes no warranty or representation. The information contained
in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group
has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any
investigation regarding these matters and makes 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.
www.bouldergroup.com
EXECUTIVE SUMMARY
NET LEASED INVESTMENT OFFERING
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a two-tenant strip center located in the Raleigh MSA featuring
a corporate Verizon Wireless. The property is located approximately 15 miles southwest from downtown Raleigh in the
affluent suburb of Apex. Residents living within a five mile radius of the property earn average household incomes in excess
of $115,000 annually. The two-tenant property is fully occupied by a corporately guaranteed Verizon Wireless store and
Yong-In Martial Arts. Verizon Wireless is committed to this location as evidenced by their decision to recently exercise their
first renewal option in 2013. Verizon Wireless is an investment grade rated tenant (S&P: BBB+) and accounts for over 88%
of the total gross income. Yong-In Martial Arts recently signed a new five year lease in February 2014.
The property is located adjacent to a Rite Aid at the signalized intersection of West Williams Road and Hunter Street, a heavily
trafficked intersection that experiences traffic counts in excess of 35,000 vehicles per day. West Williams Road is a primary
north-south thoroughfare in the Apex community and is home to many national retailers. The strip center is benefitted from
its’ location adjacent to a Harris Teeter grocery anchored development and across the street from a Lowes Foods anchored
development. Additional retailers located in the immediate vicinity include SuperTarget, Lowe’s, Home Depot, Kohl’s, Lifetime
Fitness, Beaver Creek Cinema’s, Dick’s Sporting Goods, and Walgreens. The center is located within a rapidly expanding
affluent area with over 115,000 people living within a five mile radius earning average household incomes in excess of
$115,000 annually. From 2000 to 2013, the population within a one and three mile radius has grown by 208% and 66%
respectively and is projected to grow at a rate in excess of 2.3% annually over the next five years.
The all-brick 7,331 square foot retail center was developed in 2008. The building is located on a 1.3 acre land parcel
adjacent to a Rite Aid property with shared parking lot access. This allows vehicles to access the property from both Hunter
Street and West Williams Street. Verizon Wireless has operated at this location since the property was developed and they
occupy 5,000 square feet. Yong-In Martial Arts recently signed a five year lease and occupy the remaining 2,331 square feet.
There are five years remaining on both the corporately guaranteed Verizon Wireless lease and the Yong-In Martial Arts lease.
There is a 10% rental escalation in the renewal option for Verizon Wireless. Verizon Wireless is an investment grade tenant
(S&P: BBB+) and is publicly traded (NYSE: VZ) with a market capitalization in excess of $200 billion. After out-growing their
original martial arts studio in Holy Springs, NC, Yong-In Martial Arts opened their second location in Apex in 2014.
INVESTMENT HIGHLIGHTS
• Located within the Raleigh MSA
• Verizon Wireless is an investment grade rated tenant (S&P: BBB+) and
accounts for over 88% of the total income
• Affluent area with over 115,000 people living within a five mile radius earning
average household incomes in excess of $115,000
• Population growth of 208% within a one mile radius over the past 13 years
• Verizon Wireless recently exercised their first renewal option
• Superior location within a dominant retail corridor adjacent to a Rite Aid and Harris Teeter anchored development
• Other retailers located in the immediate vicinity include SuperTarget, Lowe’s, Home Depot, Kohl’s, Lifetime Fitness,
Beaver Creek Cinema’s, Dick’s Sporting Goods, and Walgreens
www.bouldergroup.com
PROPERTY OVERVIEW
NET LEASED INVESTMENT OFFERING
PROPERTY OVERVIEW
Price: $2,340,122
Cap Rate: 9.00%
Net Operating Income: $210,611
Year Built: 2008
Lease Types: Verizon Wireless: NNN
Yong-In Martial Arts: Gross + Utilities
Rentable Square Feet: 7,331 SF
Land Size: 1.30 acres
MART
IAL AR
TS
www.bouldergroup.com
RENT ROLL
NET LEASED INVESTMENT OFFERING
RENT ROLL
Tenant Square Commencement Expiration Options Annual Rent Rent CAM/TAX/INS
Feet Date Date Escalations
Verizon Wireless 5,000 2/1/2009 1/31/2019 One- 5 Year $192,500 10% In Option NNN
Yong-In Martial Arts 2,331 2/1/2014 1/31/2019 None $30,000 None Modified
Gross
Total 7,331 $222,500
1) Verizon Wireless pays their pro rata share of CAM, taxes, and insurance. Additionally, they pay an administrative fee of 10% of CAM.
2) Yong-In Martial Arts has a gross lease and the tenant is responsible for its proportionate share it’s of utilities.
www.bouldergroup.com
PROFORMA ANALYSIS
NET LEASED INVESTMENT OFFERING
PRO FORMA ANALYSIS
Income
Base Rent $222,500
Recoveries
CAM $5,284
Utilities $7,352
Taxes $7,727
Insurance $1,882
Total Recoveries $22,246
Effective Gross Income $244,746
Expenses
CAM $7,043
Utilities $6,883
Taxes $11,330
Insurance $2,760
Management Fee $6,119
Total Expenses $34,135
Net Operating Income $210,611
1) Expenses were calculated by applying a 2.5% growth rate to the actual 2013 expenses
2) Management fee of 2.5% of the effective gross income was applied
www.bouldergroup.com
AERIAL
NET LEASED INVESTMENT OFFERING
AERIAL
N 64
US ROUTE
W
. W 27
IL ,00
LI 0
AM V
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ET
www.bouldergroup.com
SITE PLAN
NET LEASED INVESTMENT OFFERING
SITE PLAN
N
W
WI
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IAM
SS
TR
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HUNTER
STREET
www.bouldergroup.com
MAPS
NET LEASED INVESTMENT OFFERING
MAPS
www.bouldergroup.comTENANT PROFILE
NET LEASED INVESTMENT OFFERING
TENANT PROFILE
Verizon Wireless, formerly known as Cellco Partnership, branded and referred to as Verizon, is a wholly owned
subsidiary of Verizon Communications Inc. Verizon Communications Inc., through its subsidiaries, provides
communications, information and entertainment products and services to consumers, businesses, and
governmental agencies worldwide. They are headquartered in Basking Ridge, New Jersey.
Verizon Communications, Inc. is a publicly traded company on the New York Stock Exchange (VZ) with a market
capitalization in excess of $201 billion. Verizon Communications Inc. is an investment grade rated company
with a Standard and Poor’s rating of BBB+. As of the first quarter of 2014, Verizon Wireless provides wireless
services to 103.3 million subscribers and have over 2,330 locations.
Website: www.verizonwireless.com
Standard & Poor’s Rating: BBB+
Stock Symbol: VZ: NYSE
Market Capitalization: $201 billion
Number of Locations: 2,330
Number of Subscribers: 103,300,000
Yong-In Martial Arts is a martial arts studio offering classes and programs to people of all ages. Yong-In Martial
Arts is dedicated to promoting health, strength, and longevity through their flexible class schedules and age
specific classes. They offer programs specialized for adults, teens, children, toddlers, and families. They have
two locations in the Raleigh MSA. The Apex location is their second and they recently signed a five year lease.
Website: www.tkd-yongin.com
Guarantor: Personal
www.bouldergroup.comDEMOGRAPHIC COMPARISON REPORT
NET LEASED INVESTMENT OFFERING
DEMOGRAPHIC COMPARISON REPORT
Population 1-mi 3-mi 5-mi
Total Population 10,397 52,814 115,613
Total Households 3,550 18,263 41,776
Income
Median Household Income $86,161 $88,070 $88,730
Average Household Income $101,028 $106,807 $115,120
MARTIAL ARTS
www.bouldergroup.comLOCATION OVERVIEW
NET LEASED INVESTMENT OFFERING
LOCATION OVERVIEW
Apex, North Carolina is located in southwestern Wake County in the Raleigh MSA. Apex combines
a relaxing small-town atmosphere with the convenience of big city amenities. In 2013, Apex was
named the 9th ‘Best Place to Live in America’ by Money Magazine. According to the United States
Census Bureau, the population was estimated to be 40,420 in 2012 and is 15.4 square miles.
From 2000 to 2012, the population expanded by 200%.
A major streetscape renovation project has restored Apex’s downtown and recaptured its historic flavor. The
revitalized downtown is on the National Register of Historic Places as one of the best examples of an intact
turn-of-the-century railroad town.
www.apexnc.org
Raleigh is the capital of the state of North Carolina as well as the seat of Wake County. The city
covers a land area of 142 square miles. According to the United States Census Bureau, the city’s
estimated 2012 population was 423,179. It is one of the fastest growing cities in the country. The
Census Bureau’s estimated population for the combined statistical area of Raleigh-Durham-Chapel
Hill is 2,037,430.
Education and government are both important parts of the local economy as Raleigh is the state capital and is
home to North Carolina State University and is part of the “Research Triangle” area, together with Durham (home
of Duke University) and Chapel Hill (home of University of North Carolina).
Raleigh ranked third on the 2013 Forbes List of best places for businesses and careers. Companies based in
Raleigh include BB&T Insurance Services, Capitol Broadcasting Company, Carquest, First Citizens BancShares,
and Golden Corral.
www.bouldergroup.comCONTACT INFORMATION
NET LEASED INVESTMENT OFFERING
CONTACT INFORMATION
MARTI MARTIAL AR
TS
666 Dundee Road, Suite 1801
Northbrook, IL 60062
Randy Blankstein Jimmy Goodman
President Partner
847.562.0003 847.562.8500
randy@bouldergroup.com jimmy@bouldergroup.com
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