offering memorandum.
Walmart Neighborhood Market Ground Lease
Winston-Salem, NC
$10,888,888
4.50% CAP Rate
••20-Year Absolute NNN Ground Lease
••
••
••New 2015 Construction
••Anchor within New Mixed-Use Development
••Located Along Highly Trafficked Corridor
••
••Irreplaceable Infill Location
Area Demographics within a 3
••Attractive
Mile Radius
••
••
near the Largest Employer in
••Located
Forsyth County - Wake Forest Baptist
Walmart Stores, Inc., is Rated “AA” by S&P
World’s Largest Company by Revenue
South Stratford Road – 26,600 vehicles
Population of 58,375
Average Household Income of $73,076
Medical Center
••
Over 12,500 Employees
This property is listed in conjunction with North Carolina-licensed real estate broker New South Properties of the Carolinas, LLC.
www.maffiateam.com
Disclaimer
Newmark Cornish & Carey (“Broker”) has been retained on an exclusive basis to
market the property described herein (“Property”). Broker has been authorized
by the Seller of the Property (“Seller”) to prepare and distribute the enclosed
information (“Material”) for the purpose of soliciting offers to purchase from
interested parties. More detailed financial, title and tenant lease information may
be made available upon request following the mutual execution of a letter of intent
or contract to purchase between the Seller and a prospective purchaser. You are
invited to review this opportunity and make an offer to purchase based upon your
analysis. If your offer results in the Seller choosing to open negotiations with you,
you will be asked to provide financial references. The eventual purchaser will be
chosen based upon an assessment of price, terms, ability to close the transaction
and such other matters as the Seller deems appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest
from qualified investors for the acquisition of the Property. The Material is not to be
copied and/or used for any other purpose or made available to any other person
without the express written consent of Broker or Seller. The Material does not
purport to be all-inclusive or to contain all of the information that a prospective
buyer may require. The information contained in the Material has been obtained from
the Seller and other sources and has not been verified by the Seller or its affiliates.
The pro forma is delivered only as an accommodation and neither the Seller, Broker,
nor any of their respective affiliates, agents, representatives, employees, parents,
subsidiaries, members, managers, partners, shareholders, directors, or officers,
makes any representation or warranty regarding such pro forma. Purchaser must
make its own investigation of the Property and any existing or available financing,
and must independently confirm the accuracy of the projections contained in the
pro forma.
Seller reserves the right, for any reason, to withdraw the Property from the market.
Seller has no obligation, express or implied, to accept any offer. Further, Seller has
no obligation to sell the Property unless and until the Seller executes and delivers
a signed agreement of purchase and sale on terms acceptable to the Seller, in
its sole discretion. By submitting an offer, a purchaser will be deemed to have
acknowledged the foregoing and agreed to release Seller and Broker from any
liability with respect thereto.
Table of Contents
Property Information
1
Tenant Information
2
site plan
3
aerials
4
about the area
7
Demographics
9
Property walk-throughs are to be conducted by appointment only. Contact Broker
for additional information.
Michael Yuras, CCIM
Vice President
415.481.0788
myuras@newmarkccarey.com
CA RE License #01823291
Scott Crowle
Vice President
415.604.4288
scrowle@newmarkccarey.com
CA RE License #01318288
www.maffiateam.com
Property Information
Location
The property is located at 180 Harvey Street in Winston-Salem,
North Carolina.
Net Operating Income
Months
1-20
Rent
Return
$490,000
4.50%
21-25
(Option 1)
$539,000
4.95%
Lot Size
26-30
(Option 2)
$593,900
5.44%
Approximately 5.05 acres, or 219,978 square feet.
31-35
(Option 3)
$652,190
6.00%
36-40
(Option 4)
$717,409
6.60%
41-45
(Option 5)
$789,150
7.25%
46-50
(Option 6)
$868,065
7.97%
51-55
(Option 7)
$954,871
8.77%
56-60
(Option 8)
$1,050,359
9.64%
61-65
(Option 9)
$1,155,394
10.61%
66-70
(Option 10)
$1,270,934
11.67%
Improvements
Construction was completed in January 2015 of an approximately
41,839 square foot retail building for Wal-Mart Neighborhood
Market. There is ample parking on the site with a total of
approximately 550 parking spaces. The improvements were built
and are owned by the tenant; the improvements are not for sale.
Ground Lease
Leased to Wal-Mart Stores East, LP, for 20 years from January 7,
2015 to January 6, 2035, at an annual net rent of $490,000. There
are ten five-year options to renew the lease, with the rent increasing
by 10% at the commencement of each option. The lease is net, with
the tenant responsible for taxes, insurance, and all maintenance,
including roof and structure.
Price: $10,888,888 (4.50% Return)
Financing
The property will be delivered free and clear of permanent
financing.
Right of First Offer
Landlord shall give lessee written notice specifying the terms and
conditions on which landlord desires to sell the premises and offer
to sell to lessee on the stated terms and conditions. Lessee will
have 30 days after receiving such notice to purchase the property
on said terms.
1
Tenant Information
Wal-Mart Stores, Inc., (NYSE: WMT) operates retail stores in various formats worldwide. It operates retail
stores, restaurants, discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, apparel
stores, Sam’s Clubs, and neighborhood markets, as well as walmart.com, and samsclub.com. Further, it
operates banks that focus on consumer lending; and provides financial services and products, including
money orders, wire transfers, check cashing, and bill payment. The company operates approximately 11,000
retail units under 65 different banners in 28 countries, including the United States and Puerto Rico, as well
as Africa, Argentina, Brazil, Canada, Chile, China, India, Japan, Mexico, and the United Kingdom. Walmart is
the world’s largest company by revenue, as well as the biggest private employer in the world with 2.2 million employees.
For the recent quarter ended April 30, 2015, Walmart reported revenue of $114.83 billion with net income of $3.34 billion and total stockholder
equity of $81.39 billion. In the recent quarter their E-commerce sales grew over 16%. Wal-Mart Stores, Inc., is rated “AA” by Standard & Poor’s.
The Wal-Mart Neighborhood Market concept is the retailer’s smaller format store offering the same low prices as Wal-Mart’s Supercenter stores,
but in a more convenient and accessible setting. The store offers a variety of merchandise including fresh produce, meats, frozen foods, groceries
and pharmacy. As of August 2015, there are 644 Neighborhood Markets in the U.S. with plans to add another 170 stores next year. Wal-Mart
announced another strong quarterly comparable store increase of 7.3% confirming that the Neighborhood Market concept continues to be a
bright spot for the company.
2
2I¿FHV
Site Plan
I-40
Hanestown La
Mill Street
ne
HANESTOWNE VILLAGE
ines
s/U
SH
ighw
ay 4
Hanestown Ave.
Proposed Retail
Seaman Street
Ricks Drive
Proposed Retail
Bus
Walking
Path
Hanesto
wn Court
Proposed
Pedestrian
Business
41,839 SF
S STRATFORD ROAD
Mission Road
Stratford Road /
3
Norfolk Southern Rail
Aerial | Close-Up View
Future
Development
Hanestowne
Village
S Stratford Rd (26,600 AADT)
Aerial | Northeast View
DOWNTOWN
Wake Forest Baptist
Medical Center
THRUWAY CENTER
/(
59
,0
00
AADT)
S
St
ra
tf
or
d
Rd
(2
6,
60
0
AA
DT
)
Future
Development
Hanestowne
Village
Aerial | Southwest View
HANES MALL
/
00
0
ord Rd
S Stratf
Novant Health Forsyth
Medical Center
(5
9,
)
DT
AA
(26,600
AA
DT)
Hanestowne
Village
Future
Development
About the Area
General Overview
Situated in the heart of the Piedmont Triad Region
of North Carolina, Winston-Salem is the county seat
of Forsyth County and the fourth-largest city in the
state. Winston-Salem had an estimated population
of nearly 236,441 as of 2013. It is home to the tallest
office building in the region, 100 North Main Street,
known locally as the Wells Fargo Center. In 2012, the
city was listed among the 10 best places to retire in
the U.S. by CBS MoneyWatch.
Winston Salem is home to the corporate
headquarters of BB&T (Branch Banking and
Trust Company), Hanes Brand, Inc., Krispy Kreme
Doughnuts, Inc., Lowe’s Foods Stores, Reynolds
American (parent of R. J. Reynolds Tobacco
Company), Reynolds Manufacturing Solutions,
K&W Cafeterias, TW Garner Food Company and
Blue Rhino. Additionally, Caterpillar opened a $426
million axle plant in 2011 to build axles and wheels
for some of the company’s largest mining trucks
and PepsiCo has its customer service center located
in Winston Salem. As recently as July 2015, Herbalife
has chosen to relocate and expand their Information
Services group from California to Winston Salem.
Recognizing the need to diversify to better
compete in the new economy, Winston-Salem is
making a concentrated effort to move its economy
to one based on knowledge industries. The city is
building on this economic base through critical new
investments in education, technology and research.
Winston-Salem’s Piedmont Triad Research Park,
which is planned to be the largest urban research
park in the country, is already home to over fifty
life science and technology organizations – and
continues to grow. The Wake Forest Institute of
Regenerative Medicine is one of the largest such
programs in the country. And the city has invested
in wiring the community through a fiber optic loop
that links its research institutions, universities, public
sector, libraries and other institutions.
About the Area
Site Information
The subject property is strategically situated within a new
305,000 square foot mixed use development in the heart of
Winston Salem. Previously occupied by Hanesbrands, Inc. since
1958, the property is currently being redeveloped and benefits
from an incredible infill location fronting U.S. Highway 158 (South
Stratford Road). The heavily travelled U.S. Highway 158 serves
as a major retail corridor and experiences an annual average
daily traffic count of approximately 26,600 vehicles near the
site. With convenient access to U.S. Highway 421 (59,000 AADT)
less than a mile west of the property and access to Interstate 40
(71,000 AADT) being approximately a mile and a half south of
the property, the development is readily accessible. In addition
to the Wal-Mart Neighborhood Market, the infill redevelopment
will contain retail, restaurants and professional office space.
Notable national retail tenants within the center will include LA
Fitness, Starbucks, Fleet Feet Sports, P.F. Chang’s and PDQ.
Directly north of the site is Thruway Shopping center, one of
Winston-Salem’s first shopping centers. Thruway contains over
50 tenants and is anchored by Trader Joe’s and Harris Teeter. To
the east of Thruway, across U.S. Highway 158, is Cloverdale Plaza
anchored by Harris Teeter and tenanted by Jersey Mike’s Subs,
Panera Bread, Dollar Tree, and various other local retailers. Less
than a mile south of the property between Stratford Road and
Hanes Mall Boulevard is Hanes Mall, one of the largest enclosed
shopping malls in North Carolina. Hanes Mall encompasses
two-floors with over 1.56 million square feet of retail area. The
mall’s anchors include Dillard’s, J.C. Penney, Sears, H&M, Belk
and Macy’s. There are over 200 stores and services found
in the mall. South of Hanes Mall all along Interstate 40 are
numerous shopping centers that include big box tenants such
as Costco Wholesale, Home Depot, Sam’s Club, Lowe’s Home
Improvement, Ross Dress for Less and Best Buy, among others.
In addition to an abundant amount of retail in the immediate
area, two major medical centers are located within an
approximately one mile radius from the subject property. Wake
Forest Baptist Medical Center to the north is an academic
medical center which includes 173 buildings on 446 acres and
is the largest employer in Forsyth County with over 12,500
employees. To the south of the property is Novant Health
Forsyth Medical Center, a 921-bed hospital. It is the largest
hospital in the Novant Health system and provides state-of-theart comprehensive care to its patients. Novant performs over
40,000 surgical procedures annually.
Demographics
180 Harvey St, Winston-Salem, NC 27103
1 Mile
3 Miles
5 Miles
2010 Total Population
6,746
62,828
154,369
2015 Total Population
6,832
63,666
158,097
2020 Total Population
6,975
61,171
163,304
0.42%
0.47%
0.65%
2015
$72,240
$73,076
$64,239
2020
$80,950
$81,061
$71,957
2015
$188,085
$187,025
$164,810
2019
$224,668
$223,629
$194,231
Population Summary
2015-2020 Annual Rate
Average Household Income
Median Home Value
Top Employers in Winston-Salem, NC
Wake Forest Baptist Medical Center
# of Employees
12,873
Novant Health
8,145
Winston-Salem/Forsyth County
6,692
City & County Governments
4,689
Reynolds American
3,000
Wells Fargo Bank
2,800
Hanesbrands, Inc
2,251
BB&T Corporation
2,200
Wake Forest University
1,680
Lowe's Foods
1,500
9
901 Mariners Island Boulevard, Suite 120
San Mateo, CA 94404
Michael Yuras, CCIM
Vice President
415.481.0788
myuras@newmarkccarey.com
CA RE License #01823291
Scott Crowle
Vice President
415.604.4288
scrowle@newmarkccarey.com
CA RE License #01318288
www.maffiateam.com