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DISCLOSURE : All materials and information received or derived from Fortis Net Lease (hereinafter collectively referred to as FNL ), its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty by FNL its directors, officers, agents, advisors, or affiliates as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither FNL its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. FNL will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. ALL PARTIES SHALL CONDUCT THEIR OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE: Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. FNL makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. FNL does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by FNL in compliance with all applicable fair housing and equal opportunity laws. E XC LU S I V E LY L I S T E D BY: FRANK ROGERS Senior Associate 248.419.3741 frogers@fnlre.com ROBERT BENDER & DOUG PASSON Managing Partners Fortis Agents Cooperate Click Here To Meet The Team Why Hire Fortis To Sell Your Property? CLICK HERE Gateway Commons 100% OCCUPIED
GATEWAY COMMONS INVESTMENT SUMMARY List Price: $2,756,000 Current Annual Rent: $193,700 Management Fee (2.5%) $4,850 Net Operating Income $188,850 Asking Cap Rate: 6.85% Average Cap Rate: 7.35% (Remaining Term) Price/Ft: $373.00 Square Footage: 7,400 SF Land Acreage: 1.03 Acres Year Built: 2014 LEASE SUMMARIES Lease Type(s): CAM/ Insurance/Taxes: Structure/ Parking/ HVAC: Lease Guarantors: NN Tenant Responsibility (Pro-Rata) Landlord Responsibility Moe s SW Grill - Franchisee Sports Clips - Franchisee Smoothie King - Franchisee Pie Five - Franchisee INVESTMENT HIGHLIGHTS 100% Occupied Strip Center with National Tenant Presence Constructed in 2014 By Well Known National Dev. Company Leases Feature Rent Increases Scheduled for November of 2019 Depreciable Asset with Below Market Rents to Avoid Exposure INVESTMENT HIGHLIGHTS Population With In a Five Mile Radius Exceeds 61,000 People Population With In 3 Mile Radius Grew 26% From 2010-2017 Average Household Income Exceeds $65,200 w/in a 5 Mile Radius Over 32,500 Vehicles Per Day Off Wilma Rudolph Boulevard TN has NO State Income Tax Providing Extra Cash Flow Incentives Site is less than 10 Miles from Fort Campbell - 80k Military Personnel DRONE PROPERTY IMAGES Click HERE for Overhead Satellite Images of Subject Property Click HERE for Street View of Subject Property Tenant Type Sq. Ft. Term Start End PSF Increases Options Annual Rent Moe s Franchisee 2,600 10 Yrs. 11/13/14 11/12/24 25.00 10% Every 5 Yrs. Two, Five Year $65,000 Sport Clips Franchisee 1,200 5 Yrs. 11/14/14 11/13/19 25.00 10% Every 5 Yrs. Two, Five Year $30,000 Smoothie King Franchisee 1,400 10 Yrs 12/15/14 12/14/24 26.50 Various Every 5 Yrs. Two, Five Year $37,100 Pie Five Franchisee 2,200 10 Yrs. 12/15/14 12/14/24 28.00 10% Every 5 Yrs. Two, Five Year $61,600 TOTAL 7,400 $193,700 G A T E W A Y C O M M O N S F O R T I S N E T L E A S E
TENANT LINE UP - OVERVIEW Founded in December 2000 in Atlanta, GA, Moe s Southwest Grill is a fast casual restaurant franchise serving a wide variety of fresh, made-to-order Southwest fare in a welcoming environment. Ranked the No. 1 Mexican food concept by leading research group Technomic in 2013, Atlanta-based Moe s Southwest Grill serves fresh, made-to -order burritos and southwest fare in a fun and laid-back environment. GUARANTOR: TERM REMAINING: Canon Restaurant Management, LLC d/b/a Moe s SW Grill 6.5 Years Headquartered in Georgetown, Texas, Sport Clips opened its first store in 1993 in Austin, Texas and began franchising in 1995. Sport Clips CEO and founder, Gordon Logan, recognized there was a market niche in targeting just-forguys hair salons. As of 2015, Sport Clips has 1,300 franchise stores and 31 corporate stores in the U.S. and Canada, and is currently ranked #10 of the fastest growing franchises. GUARANTOR: TERM REMAINING: Weber & Jones Investments, Inc. d/b/a Sport Clips 1.5 Years Since 1989, Smoothie King has been named #1 franchise in their category 20 times. Smoothie King has over 650 locations operating in the United States, the Republic of Korea, Singapore and the Caymans. Smoothie King has potential for tremendous growth in the United States, Korea, Singapore and other international markets. The company's plan is focused on expansion building on the great foundation that the Smoothie King brand has built over all these years both domestically and internationally. GUARANTOR: TERM REMAINING: Smoothie Sailing, LLC d/b/a Smoothie King 6.5 Years Pizza Inn Holdings, LLC is the holding company for two food service entities -- including Pizza Inn and Pie Five Pizza Company. Pie Five Pizza offers custom, personal pizzas in less than five minutes. Pie Five was first introduced in Dallas, Texas in 2011 and has grown to more than 31 locations in nine states (Florida, Kansas, Maryland, Missouri, North Carolina, Tennessee, Texas, Utah and Virginia) with more than 400 company-owned and franchise units anticipated in 16 states and Washington, DC. GUARANTOR: TERM REMAINING: Music City Pieworks d/b/a Pie Five 6.5 Years G A T E W A Y C O M M O N S F O R T I S N E T L E A S E
LOCATION OVERVIEW Clarksville, TN Clarksville, Tennessee, is located about 35 northwest of Nashville, south of the Kentucky border. Interstate 24 has four exits to access the state s fifth largest city, and the Exit 4 area is the major retail corridor with a mall and various shopping centers located along Wilma Rudolph Boulevard, which pays tribute to the city s Olympic gold medal-winning native. Clarksville is growing rapidly with a current population of 133,000, which is a 28 percent increase since 2000. Along with Montgomery County and other surrounding counties, the Metropolitan Statistical Area population is just less than 275,000, which is an 18.8 increase since 2000. Growth in the community shows no signs of slowing; Clarksville and Montgomery County have a total of 8,776 residential lots approved for building. Fort Campbell Army installation and a promising future in the renewable energy industry are key components to the city s growth. Approximately 80 percent of active-duty soldiers and their families choose to live in Clarksville and the secondhighest number of military retirees in the nation live around the city. The number of military families making their homes in Clarksville, even after leaving the Army, makes it a youthful market with a median age of 29. The military background of so many in the community provides a highly skilled work force that is very trainable. Additionally, Clarksville is home to one of the fastest growing four-year universities in Tennessee. With an enrollment of more than 11,000, Austin Peay State University is adding student housing on campus and is anticipating more building without the aid of state funding. The state did, however, provide about $6 million to help construct the Hemlock Semiconductor Building for the university s Chemical Engineering Technology Degree program. G A T E W A Y C O M M O N S F O R T I S N E T L E A S E
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Average Household Income Exceeds $65,000 Within 5 Miles 61,000 People Live Within 5 Miles G A T E W A Y C O M M O N S F O R T I S N E T L E A S E
Radius 1 Mile 3 Mile 5 Mile Population: 2022 Projection 2,351 31,960 66,253 2017 Estimate 2,196 29,554 61,588 2010 Census 1,869 23,373 50,631 Growth 2017-2022 7.06% 8.14% 7.57% Growth 2010-2017 17.50% 26.45% 21.64% 2017 Population Hispanic Origin 248 3,046 6,302 2017 Population by Race: White 1,410 20,839 43,829 Black 594 6,037 12,501 Am. Indian & Alaskan 24 203 361 Asian 72 977 1,855 Hawaiian & Pacific Island 6 102 229 Other 90 1,396 2,814 U.S. Armed Forces: 241 2,304 4,480 Households: 2022 Projection 921 11,742 24,097 2017 Estimate 861 10,865 22,422 2010 Census 735 8,599 18,492 Growth 2017-2022 6.97% 8.07% 7.47% Growth 2010-2017 17.14% 26.35% 21.25% Owner Occupied 376 6,757 14,988 Renter Occupied 484 4,109 7,434 2017 Avg Household Income $61,011 $63,158 $65,871 G A T E W A Y C O M M O N S F O R T I S N E T L E A S E
E XC LU S I V E L I S T I N G A G E N T S : Frank Rogers Robert Bender Doug Passon Senior Associate Managing Partner Managing Partner 248.419.3741 frogers@fnlre.com