Panera Bread Sale Leaseback
53-55 Storey Avenue
Newburyport, MA
EXCLUSIVE
N E T- L E A S E O F F E R I N G
OFFERING MEMORANDUM
CONFIDENTIALITY AND DISCLAIMER
Marcus & Millichap hereby advises all prospective
purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has
been obtained from sources we believe to be reliable.
However, Marcus & Millichap has not and will not verify
any of this information, nor has Marcus & Millichap
conducted any investigation regarding these matters.
Marcus & Millichap makes no guarantee, warranty or
representation whatsoever about the accuracy or
completeness of any information provided.
As the Buyer of a net leased property, it is the Buyer’s
responsibility to independently confirm the accuracy and
completeness of all material information before
completing any purchase. This Marketing Brochure is not
a substitute for your thorough due diligence investigation
of this investment opportunity. Marcus & Millichap
expressly denies any obligation to conduct a due diligence
examination of this Property for Buyer.
Any projections, opinions, assumptions or estimates used
in this Marketing Brochure are for example only and do
not represent the current or future performance of this
property. The value of a net leased property to you
depends on factors that should be evaluated by you and
your tax, financial and legal advisors.
Buyer and Buyer’s tax, financial, legal, and construction
advisors should conduct a careful, independent
investigation of any net leased property to determine to
your satisfaction with the suitability of the property for
your needs.
Like all real estate investments, this investment carries
significant risks. Buyer and Buyer’s legal and financial
advisors must request and carefully review all legal and
financial documents related to the property and tenant.
While the tenant’s past performance at this or other
locations is an important consideration, it is not a
guarantee of future success. Similarly, the lease rate for
some properties, including newly-constructed facilities or
newly-acquired locations, may be set based on a tenant’s
projected sales with little or no record of actual
performance, or comparable rents for the area. Returns
are not guaranteed; the tenant and any guarantors may
fail to pay the lease rent or property taxes, or may fail to
comply with other material terms of the lease; cash flow
may be interrupted in part or in whole due to market,
economic, environmental or other conditions. Regardless
of tenant history and lease guarantees, Buyer is
responsible for conducting his/her own investigation of all
matters affecting the intrinsic value of the property and
the value of any long-term lease, including the likelihood
of locating a replacement tenant if the current tenant
should default or abandon the property, and the lease
terms that Buyer may be able to negotiate with a
potential replacement tenant considering the location of
the property, and Buyer’s legal ability to make alternate
use of the property.
the subject property, the future projected financial
performance of the property, the size and square footage
of the property 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. The information contained in this
Marketing Brochure has been obtained from sources we
believe to be reliable; however, Marcus & Millichap has
not verified, and will not verify, any of the information
contained herein, nor has Marcus & Millichap 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.
NON-ENDORSEMENT NOTICE
By accepting this Marketing Brochure you agree to release
Marcus & Millichap Real Estate Investment Services and
hold it harmless from any kind of claim, cost, expense, or
liability arising out of your investigation and/or purchase
of this net leased property.
CONFIDENTIALITY AND DISCLAIMER
The information contained in the following Marketing
Brochure is proprietary and strictly confidential. It is
intended to be reviewed only by the party receiving it
from Marcus & Millichap and should not be made available
to any other person or entity without the written consent
of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap has not made
any investigation, and makes no warranty or
representation, with respect to the income or expenses for
Marcus & Millichap Real Estate Investment Services, Inc.
(“M&M”) is not affiliated with, sponsored by, or endorsed
by any commercial tenant or lessee identified in this
marketing package. The presence of any corporation’s
logo or name is not intended to indicate or imply
affiliation with, or sponsorship or endorsement by, said
corporation of M&M, its affiliates or subsidiaries, or any
agent, product, service, or commercial listing of M&M,
and is solely included for the purpose of providing tenant
lessee information about this listing to prospective
customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT
ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP
AGENT FOR MORE DETAILS.
Table of Contents
Investment Overview
Executive Summary
Tenant Overview
5
6
Pricing and Financial Analysis
Financial Offering Summary
Concept Overview
8
9
Property Overview
Property Description
Aerial Photo
Property Photos
Regional Map
State Map
11
12
13-14
15
16
Market Overview and Demographics
Market Overview
Demographic Summary Report
18-20
21
INVESTMENT OVERVIEW
Investment Overview
Executive Summary | Investment Highlights
Property Name
Location
Panera Bread / Cost Cutters
53-55 Storey Avenue
Newburyport, MA
Price
CAP Rate
Net Operating Income
$3,495,146
5.15%
$180,000
Price per SF
$653.30
Rent per SF
$33.64
Building Size
Lot Size
Year Built
5,350 SF
1.284 Acres
2011
The subject investment is a Panera Bread sale-leaseback located at 53-55 Storey
Avenue in Newburyport, Massachusetts. The property consist of roughly 5,350
square feet of building space of which Panera Bread currently occupies roughly
4,200 square feet and the remaining portion is being subleased to Cost Cutters.
The property is situated on 1.284 acres of land.
This Panera Bread location will be subject to a new, 20-year triple-net (NNN)
sale-leaseback with PR Restaurants, Limited Liability Company. The tenant will
enter into the new master lease upon close of escrow and will continue to
sublease roughly 1,100 square feet to Cost Cutters. The master lease rent will be
$180,000 and is guaranteed for duration of the initial term and in its four, fiveyear renewal options. The rent is subject to 1.75 percent annual increases
starting in year six. PR Restaurants, Limited Liability Company, is a Panera
Bread Franchisee which will operate a total of 64 locations by mid-July 2015.
They have been operating Panera’s for nearly 18 years.
Long-Term Absolute NNN Lease
At closing, the Tenant will execute a new 20-year lease. The tenant will
be responsible for all repairs and maintenance during the lease term and
the rental payments will be absolute net to the Landlord.
Strong Inflation Hedge | Attractive Annual Rent Escalations
The base rent will be $180,000 and is subject to 1.75 percent annual
increases starting in year six and continuing throughout the initial term
and in the four, five-year renewal options.
Strong Brand Recognition | Continued Innovation and Growth
The opportunity to own a Panera Bread investment is scarce in the
marketplace, and is considered a trophy investment within the net lease
arena. Panera has been among the biggest franchises for years and
continues to provide a great example of growth and innovation
throughout its sector. The concept has begun integration of its new,
enhanced-technology “Panera 2.0” format throughout its locations. The
consumer-facing technology will connect continually with its customers
and add convenience, thus further benefit its franchisees.
Experienced and Proven Operator
The franchisee at this location, PR Restaurants, Limited Liability
Company, which will own and operate 64 Panera Bread locations by midJuly 2015. The founders have a proven a nearly 20-year track record in
leading companies to profitable growth through innovative thinking and
execution, and are skilled in moving brands and adding value to the
concept.
There are roughly 1,845 bakery-cafes in 45 states and in Ontario, Canada
operating under the Panera Bread®, Saint Louis Bread Company® and Paradise
Bakery & Café® names, delivering fresh, authentic artisan bread served in a
warm environment by engaging associates.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap W0330872
5
Executive Summary
Concept Overview
Panera Bread Company
Company History
As of September 30, 2014, there are 1,845 bakery-cafes in 45 states and in
Ontario Canada operating under the Panera Bread®, Saint Louis Bread
Co.® and Paradise Bakery & Café® names. Their bakery-cafes are principally
located in suburban, strip mall and regional mall locations. Panera features
high quality, reasonably priced food in a warm, inviting, and comfortable
environment. With their identity rooted in handcrafted, fresh-baked, artisan
bread, Panera is committed to providing great tasting, quality food that
people can trust. Nearly all of their bakery-cafes have a menu highlighted by
antibiotic-free chicken, whole grain bread, and select organic and all-natural
ingredients, with zero grams of artificial trans fat per serving, which provide
flavorful, wholesome offerings. The menu includes a wide variety of yearround favorites complemented by new items introduced seasonally with the
goal of creating new standards in everyday food choices. In neighborhoods
across the United States and in Ontario, Canada, customers enjoy a warm and
welcoming environment featuring comfortable gathering areas, relaxing
decor, and free internet access. Their bakery-cafes routinely donate bread and
baked goods to community organizations in need. Additional information is
available on their website, http://www.panerabread.com.
The Panera Bread® legacy began in 1981 as Au Bon Pain Co., Inc. Founded by
Louis Kane and Ron Shaich, the company prospered along the east coast of the
United States and internationally throughout the 1980s and 1990s and became
the dominant operator within the bakery-cafe category. In 1993, Au Bon Pain
Co., Inc. purchased Saint Louis Bread Company®, a chain of 20 bakery-cafes
located in the St. Louis area. The company then managed a comprehensive restaging of Saint Louis Bread Co. Between 1993 and 1997 average unit volumes
increased by 75%. Ultimately, the concept’s name was changed to Panera
Bread. By 1997, it was clear that Panera Bread had the potential to become one
of the leading brands in the nation. In order for Panera Bread to reach its
potential, it would require all of the company’s financial and management
resources. In May 1999, all of Au Bon Pain Co., Inc.’s business units were sold,
with the exception of Panera Bread, and the company was renamed Panera
Bread. Since those transactions were completed, the company’s stock has
grown thirteen-fold and over $1 billion in shareholder value has been created.
Panera Bread has been recognized as one of Business Week’s “100 Hot Growth
Companies.” As reported by The Wall St. Journal’s Shareholder Scorecard in
2006, Panera Bread was recognized as the top performer in the restaurant
category for one-, five- and ten-year returns to shareholders. In 2007, Panera
Bread purchased a majority stake in Paradise Bakery & Café®, a Phoenix-based
concept with over 70 locations in 10 states (predominantly in the west and
southwest). The Company purchased the balance of Paradise in June 2009. In
May 2010, Ron Shaich transitioned to the role of Executive Chairman of the
Board and currently serves as the Chief Executive Officer.
2013 AWARDS & RECOGNITION
CULINARY/OPERATIONS, NATIONAL CHAIN WINNER | COEX Innovation
Awards | Panera Bread named Culinary/Operations, National Chain Winner
2012 AWARDS & RECOGNITION
CASUAL DINING BRAND OF THE YEAR | Harris Poll EquiTrend® | Panera
Bread named Casual Dining Brand of the Year
#2 AMONG EXCELLENT LARGE FAST-FOOD CHAINS | Sandelman &
Associates 2012 Quick-Track® Study | Panera Bread ranked #2 among
Excellent Large Fast-Food Chains (500 or more units)
#1 ATTRACTIVE/INVITING RESTAURANT AMONG EXCELLENT LARGE
FAST-FOOD CHAINS | Sandelman & Associates 2012 Quick-Track® Study |
Panera Bread ranked #1 Attractive/Inviting Restaurant among Excellent Large
Fast-Food Chains (500 or more units)
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap W0330872
6
P R I C I N G A N D F I N A N C I A L A N A LY S I S
Investment Overview
Offering Summary
Property Name
Panera Bread / Cost Cutters Hair Salon
Property Type
Net-Leased Fast Casual Restaurant and Retail
Master Tenant
Ownership
Panera Bread
Tenant
Rentable Square Feet
Sub-Tenant
Ownership
Tenant
Rentable Square Feet
Guarantor
Lease Term
Lease Commencement
Lease Expiration
Lease Term Remaining
Lease Type
Roof & Structure
Options to Renew
Rental Increases
Annualized Operating Data
Rent Increases
Annual Rent
Monthly Rent
Year 1 - 5
$180,000
$15,000.00
Public (Nasdaq: PNRA)
Year 6
$183,150
$15,262.50
PR Restaurants, Limited Liability Company
Year 7
$186,355
$15,529.59
4,200
Year 8
$189,616
$15,801.36
Year 9
$192,935
$16,077.89
Year 10
$196,311
$16,359.25
Year 11
$199,746
$16,645.54
Year 12
$203,242
$16,936.83
Year 13
$206,799
$17,233.23
Year 14
$210,418
$17,534.81
Year 15
$214,100
$17,841.67
Year 16
$217,847
$18,153.90
20 Years from Close of Escrow
Year 17
$221,659
$18,471.59
20 Years
Year 18
$225,538
$18,794.84
Triple Net (NNN) Master Lease
Year 19
$229,485
$19,123.75
Year 20
$233,501
$19,458.42
Cost Cutters
Public (NYSE: RGS)
The Barbers, Hairstyling For Men & Women, Inc.
d/b/a Cost Cutters
1,100
Franchisee
20 Years
Upon Close of Escrow
Tenant Responsible
Four, Five-Year Options
1.75% Annually Starting Year Six
Initial Annual Rent
CAP Rate
Price
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap W0330872
$180,000
5.15%
$3,495,146
8
Executive Summary
Tenant/Concept Overview
PR Restaurants LLC
35 Locations
Headquarters
Newton, MA
When David Peterman and Mitch Roberts opened up their first Panera Bread,
customers had never heard of the now widely known bakery-café. Instead,
the business partners were forced to invest the time to educate potential
customers, pounding the pavement to hand out free samples and menus.
Now, the duo owns and operates 35 Panera Bread locations across New
England. And, they are only going to get deeper in the fast-casual business –
they recently signed on as franchisees for the new fast-casual pizza concept,
Blaze.
Peterman and Roberts have been operating under the Panera brand for
nearly 18 years. Prior to becoming Panera franchisees, they were both senior
executives of development and operations at Au Bon Pain, which at the time
owned Panera Bread. Peterman and Roberts knew the Panera brand well and
understood the universal appeal of the concept with consumers. They also
recognized early on the powerful nature of what is now the “fast casual”
dining segment.
Currently, the board of directors is comprised of a franchisee of a service
company, an MIT business professor and several senior operations people
with extensive restaurant experience. As operators of one of Panera Bread’s
largest franchise groups, they are consistently ranked among the chain’s top
franchisees based on operations and excellence assessments.
Nearly 18 Years in Operating under
the Panera Brand
Segment: Fast-Casual
Sub-Tenant
The Barbers, Hairstyling For Men & Women, Inc. d/b/a Cost Cutters
Cost Cutters salons are dedicated to providing you and your family with
convenient hair-care services by professional stylists who care about your
needs. You'll find more than 700 salon locations across the United States, each
offering a relaxed hair-care experience with no appointments and no hassles.
Cost Cutters is the perfect hair salon for busy, value-conscious families. Our
customers appreciate the range of hair styles offered at prices that are easy to
afford. Cost Cutters’ insight into customers’ needs has helped them to excel in
this lucrative value-salon sector, making Cost Cutters an extremely strong
brand and a household name. Their convenient locations make it especially
appealing to busy families and men. They employ expertly trained stylists who
provide current hairstyles at an affordable price without the need for an
appointment.
Merger with Regis Corporation
In 1999, Regis Corporation, the largest owner, operator, franchisor, and
consolidator of hair and retail product salons in the world, and The Barbers,
Hairstyling For Men & Women, Inc., a national franchisor, owner and operator
of then 979 affordable hair care salons, announced that they have signed a
definitive agreement to merge in a stock-for-stock transaction.
The Barbers management team brought Regis 35 years of experience in
franchising hair salons. In addition, with the merger, Regis became the sole
provider of salon services in Walmart. This opportunity allowed Regis to
exceed 1,000 Walmart salons. The Barbers, based in Minneapolis, operated
primarily under the names of Cost Cutters, City Looks Salon International, and
We Care Hair.
The Barbers, Hairstyling For Men & Women, Inc., a Minnesota corporation is a
wholly owned subsidiary of Regis Corporation.
Company at a Glance
Year of Inception:
Number of Salon Locations:
Geographic Coverage:
Website:
1982
Over 740
United States
www.costcutters.com
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap W0330872
9
PROPERTY OVERVIEW
Property Overview
Location
Overview
Location
Highlights | Property Description

Situated Just off Interstate 95 | Excellent Visibility and Ease of
Access

Strong Retail Corridor | Surrounded by Kmart, Marshalls, Dunkin
Sunoco, Shell, Walgreens, Rite Aid, Planet Fitness, and Mobil

High Traffic Counts | ADTC Nearly 30,000 in Front of Site

Located 5 Miles South of New Hampshire and 35 Miles from
Boston
The subject property is a Panera Bread and Cost Cutters located at 53-55
Storey Avenue in Newburyport, Massachusetts. Newburyport is a coastal
city in Essex County. A historic seaport with a vibrant tourism industry,
Newburyport includes part of Plum Island. The mooring, winter storage
and maintenance of recreational boats, motor and sail, still contribute to a
large part of the city’s income. At the edge of Newbury Marshes,
delineating Newburyport to the south, an industrial park provides a wide
range of jobs. Newburyport is on a major north-south highway, Interstate
95. The outer circumferential highway of Boston, Interstate 495, passes
nearby in Amesbury. The Newburyport Turnpike (U.S. Route 1) still
traverses Newburyport on its way north. The commuter rail line to Boston
ends in a new station at Newburyport and the city has a total area of 10.6
square miles.
The specific property benefits from its advantageous position situated on
Storey Avenue, just off Interstate 95. Traffic Counts on Storey Avenue are
roughly 29,713 vehicles per day providing a consistent flow of traffic to this
Panera Bread and Cost Cutters location. The site is situated adjacent to
Sunoco and Papa Gino’s Pizza. Other major tenants in the area include
Kmart, Marshalls, Dunkin Donuts, Shell, Mobil, 7-Eleven, Midas, Planet
Fitness, Walgreens, and Rite Aid.
ADTC 29,713
Newburyport is part of Massachusetts’ North Shore. The city is located
35 miles north-northeast of Boston, 19 miles east-northeast of
Lawrence, and 21 miles south-southeast of Portsmouth, New
Hampshire. Situated 5 miles south of the New Hampshire border, the
city is bordered by the Gulf of Maine (Atlantic Ocean) to the east and
Newbury to the south.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap W0330872
11
Aerial Photo | Surrounding Area
McDonald’s
Country Club
Estates
Express
Rental
Car
At Anna Jaques
Hospital Women’s
Health Care
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap W0330872
12
Property Overview
Property Photo
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap W0330872
13
Property Overview
Property Photo
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap W0330872
14
Property Overview
Regional Map
Hanscom Field
Hanscom Air Force
Base
Beverly Municipal
Airport
Boston International
Airport
Harvard University
WEST PALM BEACH,
FLORIDA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap W0330872
15
Property Overview
State Map
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap W0330872
16
MARKET OVERVIEW AND DEMOGRAPHICS
Market Overview
Demographic
Summary Report
Boston, Massachusetts
Geography
Boston is located along the Atlantic seaboard and fronts to Boston Harbor, a
natural estuary of Massachusetts Bay and home to the Port of Boston. The
Boston metro spans 4,128 square miles across Essex, Middlesex, Norfolk,
Plymouth and Suffolk counties in Massachusetts, and Rockingham and
Strafford counties in southeastern New Hampshire.
Market Highlights
Highly educated and skilled work force
Boston offers one of the world’s largest concentrations of colleges and
universities and boasts a highly educated workforce.
Leading life sciences cluster
A deep talent pool and world-renowned educational and healthcare
institutions support the metro’s highly ranked life sciences sector.
Global financial center
Boston is regarded as one of the top 10 financial centers in the world. Its
diverse roster of financial services companies includes banks, insurance
companies, wealth and investment management and venture capital firms.
Metro
The Boston metro spans seven counties and consists of more than 150
incorporated towns and cities. The metro is home to approximately 4.7
million individuals and accounts for nearly 70 percent of all Massachusetts’
residents. Over the next five years, the metro’s population is forecast to grow
2.1 percent, driven in large part by net in-migration of college-age individuals
and young professionals.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap W0330872
18
Market Overview
Demographic
Summary Report
Boston, Massachusetts
Infrastructure
Boston has a well-developed and upgraded transportation system. Interstates 90 and
93, which are now located underground through a portion of Boston, are major trucking
routes that link the South Boston Seaport and Logan International Airport to major
cities throughout the nation. In addition, I-95 and I-495 encircle the metro.
Largest Cities in Metro by Population
Boston
646,800
Lowell
110,200
Public transportation options include bus, rail, rapid transit. Intercity passenger rail
service is provided by Amtrak and includes the higher-speed Acela Express, which
offers service from downtown Boston to New York, Washington, D.C., Baltimore and
Philadelphia.
Cambridge
109,000
The Port of Boston serves as the only full-service cargo terminal in the region with
seven of the world’s top 10 container lines. In addition, 17 cruise lines call the port home
between April and early November each year. Boston’s Logan International Airport,
which serves as New England’s largest transportation center, generates an estimated
$7 billion in economic activity annually.
Brockton
94,900
Quincy
94,200
Lynn
92,200
Airports
 Logan International Airport
 Six Smaller Airports
Economy
Over the past 65 years, Boston has transitioned from a manufacturing hub to one of the top innovation,
healthcare and education centers of the world. Today, the metro’s economy ranks among the largest in
the country, generating an estimated $350 billion annually.
Major Roadways
 Interstates 90, 93, 95, and 495
 U.S. Highways 1, 3, and 20
Boston is regarded as one of the top financial centers in the world, and its diverse roster of finance-related
companies includes banks, insurance companies, wealth and investment management firms, and venture
capitalists. Numerous Fortune 500 companies are headquartered in Boston, including a handful of
financial-sector mainstays. The list of Fortune 500 companies also includes some sizable hightech/defense, biotech and pharmaceutical firms, including Raytheon, Biogen Idec and Boston Scientific.
Rail
In addition to a notable corporate presence, Boston is home to a thriving startup ecosystem, with medical
research at its core. Top research hospitals and world-class colleges and universities, including
Massachusetts Institution of Technology (MIT) and Harvard, lay the foundation for Boston’s knowledgecentric economy. These institutions not only contribute to Boston’s highly educated labor pool and attract
top companies to the area, but they also insulate the economy through recessionary periods and hasten its
recovery.
Port
Travel, tourism and sports also contribute significantly to the Boston’s economy. Last year, more than 19
million people visited the metro, collectively spending $11.5 billion in the metro. In addition to attracting
traditional business and leisure travelers, Boston attracts an estimated 900,000 convention attendees each
year, a figure that stands to rise further in coming years as plans progress for a $1 billion expansion to the
Boston Convention and Exhibition center.
 Freight – CSX
 Passenger – Amtrak and Acela Express
 Commuter – Metrorail MBTA
 International Port of Boston
Atlanta is:




50 miles from Providence
220 miles from New York City
310 miles from Philadelphia
440 miles from Washington D.C.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap W0330872
19
Market Overview
Demographic
Summary Report
Boston, Massachusetts
Employers
Quality of Life
Hospitals and healthcare companies, financial services firms and higherlearning institutions dominate the list of major employers. The largest
healthcare employers in the region include Beth Israel Deaconess Medical
Center, Steward Home Care, Children’s Hospital-Boston, Massachusetts
General Hospital, Brigham & Women’s Hospital and Tufts Medical Center.
Major financial services and insurance companies include Fidelity, Liberty
Mutual Insurance Group, State Street Corp. and John Hancock Financial
Services, though Boston also is home to numerous smaller wealth
management and investment companies and boasts a significant
concentration of venture capital firms.
Boston’s is often regarded as the unofficial capital of New England due to its
sizable economy, rich history and broad array of cultural offerings. The city
is among the oldest in the United States and provided the backdrop for
several key events in the American Revolution. Visitors to Boston can
explore the 2.5-mile Freedom Trail, which leads to 16 significant sites,
including Boston Common, the oldest public park in the nation, Paul
Revere’s home, multiple churches, meeting houses, monuments, and the
USS Constitution, which is permanently berthed in Charlestown Navy Yard.
Major employers in the education sector include Boston University,
Northeastern University, Boston College, Harvard and MIT Harvard. The
latter two institutions, both in Cambridge, are among the most prestigious
research universities in the world. Their presence in the city supports a fastgrowing high-tech and life sciences cluster. Major high-tech and biotech
employers in the city include Google, Microsoft, Novartis, Biogen Idec,
Sanofi/Genzyme, Pfizer and the Cambridge Innovation Center, a startup
incubator. South Boston’s 1,000-acre Innovation District is also emerging as
a hub for startups, attracting more than 200 companies within its first three
years.
While the metro has its share of large employers, small establishments
provide the majority of positions. Establishments with one to 20 employees
make up more than 80 percent of the total employer base.
Residents and visitors can also enjoy an array of cultural offerings. The list of
museums in Boston includes The Museum of Fine Arts, the Children’s
Museum and the Museum of Science. Boston has also become a thriving
performing arts mecca and is home to numerous theaters, Boston
Symphony Hall and the Boston Opera House. In addition, the Shakespeare
Company performs regularly during the summer on Boston Common.
For sports fans, Boston offers professional baseball, basketball, football,
hockey, lacrosse, tennis and soccer teams. Outdoor enthusiasts can visit
one of the metro’s numerous golf courses or parks or enjoy a day of fishing
and boating alone the coast.
Major Employers
Brigham & Women’s Hospital
Children’s Hospital Boston
Harvard University
State Street Bank & Trust Co.
Massachusetts General Hospital
John Hancock Life Insurance Co.
Boston University School of Medicine
Fidelity
Boston University
Liberty Mutual Group Inc.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap W0330872
20
Demographics
Demographic Summary Report
1 Mile
3 Miles
5 Miles
2014 Population
2019 Population
6,352
6,586
26,679
30,043
57,832
58,842
2014 Households
2019 Households
2,510
2,644
12,577
12,801
23,776
24,309
2014 Average Household Size
2.47
2.32
2.39
2014 Daytime Population
3,639
18,054
24,835
2014 Owner Occupied Housing Units
2014 Renter Occupied Housing Units
2014 Vacant
77.13%
22.87%
3.29%
67.25%
32.75%
4.14%
69.74%
30.26%
7.22%
2019 Owner Occupied Housing Units
2019 Renter Occupied Housing Units
2019 Vacant
77.24%
22.76%
3.54%
67.40%
32.60%
4.19%
69.87%
30.13%
7.28%
$0 - $14,000
$15,000 - $24,999
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $124,999
$125,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000 +
9.3%
7.1%
5.7%
6.9%
15.2%
11.8%
10.5%
8.4%
13.8%
4.0%
7.3%
9.5%
6.3%
6.6%
9.7%
17.0%
12.8%
10.7%
8.3%
9.9%
3.6%
5.6%
8.8%
7.0%
6.8%
10.6%
17.4%
13.4%
11.3%
8.5%
8.5%
3.1%
4.7%
2014 Median Household Income
2014 Per Capita Income
$86,743
$48,335
$76,513
$46,093
$74,157
$41,972
2104 Average Household Income
$121,219
$108,136
$101,649
Population
In 2014, the population in your selected geography is 57,832. The population has
changed by 5.72% since 2000. It is estimated that the population in your area will be
58,842 five years from now, which represents a change of 1.74% from the current
year. The current population is 47.94% male and 52.05% female. The median age of
the population in your area is 45.1, compare this to the Entire US average which is
37.3. The population density in your area is 734.76 people per square mile.
Households
There are currently 23,775 households in your selected geography. The number of
households has changed by 9.26% since 2000. It is estimated that the number of
households in your area will be 24,308 five years from now, which represents a
change of 2.24% from the current year. The average household size in your area is
2.38 persons.
Income
In 2014, the median household income for your selected geography is $74,156,
compare this to the Entire US average which is currently $51,972. The median
household income for your area has changed by 32.18% since 2000. It is estimated
that the median household income in your area will be $88,261 five years from now,
which represents a change of 19.02% from the current year.
Race & Ethnicity
The current year racial makeup of your selected area is as follows: 96.36% White,
0.59% Black, 0.01% Native American and 0.94% Asian/Pacific Islander. Compare
these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native
American and 5.02% Asian/Pacific Islander.
Employment
In 2014, there are 24,835 employees in your selected area, this is also known as the
daytime population. The 2000 Census revealed that 65.51% of employees are
employed in white-collar occupations in this geography, and 34.39% are employed in
blue-collar occupations. In 2014, unemployment in this area is 5.65%. In 2000, the
average time traveled to work was 31.1 minutes.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap W0330872
21
Offering Memorandum | 53-55 Storey Avenue, Newburyport, MA