OFFERING MEMORANDUM
168-170 E Main Street Geneva, OH 44041
JASON GRIBIN
PIERCE SCHNEIDER
818.231.4670 jordan.uttal@j2capa.com CA DRE #01512755
310.867.9311 jason.gribin@j2capa.com CA DRE #01819611
858.401.0214 pierce.schneider@j2capa.com CA DRE #02119195
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JORDAN UTTAL
01
INVESTMENT SUMMARY
The Offering
02
FINANCIALS
Tenant Overview
Investment Highlights
03
AREA OVERVIEW
04
AMENITIES MAP
Geneva, OH
Nearby Retail and
Demographics
Amenities
Property Photos
JORDAN UTTAL
JASON GRIBIN
Co-Founder & Managing Partner
Co-Founder & Managing Partner
818.231.4670 jordan.uttal@j2capa.com
310.867.9311 jason.gribin@j2capa.com
CA DRE #01512755
CA DRE #01819611
INVESTMENT SUMMARY
TABLE OF CONTENTS
PIERCE SCHNEIDER Associate 858.401.0214 pierce.schneider@j2capa.com CA DRE #02119195
In Conjunction with Bang Realty, Inc. Brian Rockman LIC BRK.2009000214
All materials and information received or derived from J2 Capital Advisors its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or 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 J2 Capital Advisors its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the 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. J2 Capital Advisors will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. 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. J2 Capital Advisors makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. J2 Capital Advisors 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 J2 Capital Advisors in compliance with all applicable fair housing and equal opportunity laws. Each Office Independently Owned & Operated. DRE# 01428774
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INVESTMENT SUMMARY
INVESTMENT SUMMARY
INVESTMENT SUMMARY THE OFFERING ADDRESS
168-170 E Main Street Geneva, OH 44041
PRICE
$1,608,154
ANNUAL NOI
$114,983
CAP RATE
7.15%
LEASE GUARANTOR(S)
AutoZone, Inc. and CVS Caremark Corporation
LEASE TYPE
NN (Expenses Reimbursed)
LANDLORD RESPONSIBILITIES
Roof and Structure
New roof installed in 2020, 20 year warranty
PROPERTY SPECIFICATIONS
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TOTAL RENTABLE AREA
20,120 SF
LAND AREA
79,279 SF (1.82 AC)
YEAR BUILT/RENOVATED
1960/2021
PARCEL NUMBER
20-021-00-064-00
OWNERSHIP
Fee Simple (Building & Land) O F F E R I N G M E M O R A N D U M | J 2 C A P I TA L A D V I S O R S
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INVESTMENT HIGHLIGHTS INVESTMENT SUMMARY
• Cleveland MSA has over 2 million people. • Ohio has 276 AutoZone stores, making it the state with the third most locations. EACH TENANT HAS ALREADY PICKED UP OPTIONS • This demonstrates commitment to this site and signifies strong sales. • Each tenant has operated at this location since the mid 90’s. COVID-19 RESISTANT TENANTS • CVS sales rose in both the pharmacy and the front of the store as customers filled more prescriptions, got Covid-19 tests, and filled up bigger baskets of items of over-the-counter items.
INVESTMENT SUMMARY
#2 PERFORMING AUTOZONE IN THE CLEVELAND DIVISION
• CVS has the strongest credit profile amongst the three largest drug stores. • AutoZone has been an essential business throughout the COVID-19 pandemic. EPS in Q1 of 2021 was 30% higher than Q1 of 2020. Customers spent more money to fix their current car’s rather than purchase new vehicle’s. EXCELLENT RETAIL POSITIONING • Other nearby national tenants include U.S. Bank, Domino’s, and Circle K. • Less than 1.5 miles from Geneva High School/Middle School, R Spencer Platt Elementary School, and UH Geneva Medical Center. RARE CVS STORE • Only CVS in a 20-mile radius to have nurse’s offices. • CVS spent over $30,000 renovating the store in the last month to construct these offices. RECENT RENOVATIONS • New roof installed in 2020 for roughly $200,000 and has a 20-year warranty. • New drainage system recently installed for $10,000. • Parking lot recently renovated for $120,000.
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FINANCIALS
CVS HEALTH CVS Health Corporation is engaged in the retail drugstore business. The company operates 9,900+ locations in 49 states, the District of Columbia, Puerto Rico, and Brazil. CVS Pharmacy is a publicly traded company on the New York Stock Exchange (Symbol: CVS) with a market capitalization in excess of $80 billion. CVS is an investment grade rated tenant with a Standard & Poor’s rating of BBB. The company has launched assertive growth plans in recent quarters. CVS is currently the only integrated pharmacy healthcare company with the capability to have an influence on consumers, payors, and providers with innovative resolutions. They have a profound outlook of their diverse needs through their unique integrated model, and are bringing them innovative solutions that help increase access to quality care, deliver better health outcomes and lower overall health care costs. MARKET LEADING TENANT
CVS Health Corporation is engaged in the retail drugstore business. The company operates 9,900+ locations in 49 states, the District of Columbia, Puerto Rico and Brazil. CVS Pharmacy is the nation’s drugstore chain and total prescription revenue. CVS is headquartered in Woonsocket, Rhode Island and was founded in 1963. In December of 2017, CVS announced it would buy Aetna for more the $69 billion. This acquisition would combine CVS’ drugstores and pharmacy benefits manager platform with Aetna’s insurance business. This merger brings together two complementary businesses with unique capabilities, the goal being to reshape the consumer heath care experience, putting people at the center of health care delivery to ensure they have access to high-quality, more affordable care.
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CVS HEALTH COMPANY
LEASE SUMMARY
PARENT COMPANY
MONTHLY NOI
$5,777
LEASE COMMENCEMENT
May 9, 1994
LEASE EXPIRATION
December 31, 2024
OPTIONS
None remaining
INCREASES
None remaining
SQUARE FOOTAGE
10,580 SF approximately
% OF TOTAL RENT
60%
RENT/SF
$0.54
LEASE TYPE
NN (Expenses Reimbursed)
USE
Auto Parts
PROPERTY TAXES
Tenant’s Responsibility
INSURANCE
Tenant’s Responsibility
COMMON AREA
Tenant’s Responsibility
ROOF & STRUCTURE
Landlord’s Responsibility
REPAIRS & MAINTENANCE
Tenant’s Responsibility
HVAC
Tenant’s Responsibility
UTILITIES
Tenant’s Responsibility
CVS NYSE
BBB/STABLE CREDIT RATING (S & P)
$268.7B TOTAL REVENUE (2021)
300,000 TOTAL EMPLOYEES
WOONSOCKET, RI HEADQUARTERS
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FINANCIALS
TENANT OVERVIEW
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FINANCIALS
AUTOZONE For more than 30 years, AutoZone has been committed to providing the best parts, prices and customer service in the automotive aftermarket industry. We have a rich culture and history of going the Extra Mile for our customers and our community. AutoZone is the nation’s leading retailer and a leading distributor of automotive replacement parts and accessories with more than 5,000 stores in US, Puerto Rico, Mexico, and Brazil. Each store carries an extensive line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured hard parts, maintenance items and accessories. AutoZone also sells automotive diagnostic and repair software through ALLDATA, diagnostic and repair information through alldatadiy.com, and auto and light truck parts and accessories through their website. Autozone has been committed to providing the best parts, prices and customer service in the automotive aftermarket industry. Since opening its first store in Forrest City, Ark. on July 4, 1979, the company has joined the New York Stock Exchange (NYSE: AZO) and earned a spot in the Fortune 500.
SUTO PARTS
LEASE SUMMARY
SECTOR
1979
MONTHLY NOI
$3,805 (as of October 1, 2021)
YEAR FOUNDED
LEASE COMMENCEMENT
September 8, 1995
LEASE EXPIRATION
September 30, 2026
OPTIONS
Two, 5-year
INCREASES
10% Every 5 years
MEMPHIS, TN
SQUARE FOOTAGE
9,540 SF approximately
HEADQUARTERS
% OF TOTAL RENT
40%
RENT/SF
$0.40
LEASE TYPE
NN (Expenses Reimbursed)
USE
Auto Parts
PROPERTY TAXES
Tenant’s Responsibility
INSURANCE
Tenant’s Responsibility
COMMON AREA
Tenant’s Responsibility
ROOF & STRUCTURE
Landlord’s Responsibility
REPAIRS & MAINTENANCE
Tenant’s Responsibility
HVAC
Tenant’s Responsibility
UTILITIES
Tenant’s Responsibility
PUBLIC OWNERSHIP
60,000 LOCATIONS
AUTOZONE INC. (NTSE:AZO) TICKER
S&P: BBB CREDIT
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FINANCIALS
TENANT OVERVIEW
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Geneva is a city in Ashtabula County, Ohio. It is located just 45 miles northeast of Cleveland, which is the 32nd most populous metropolitan country in the county with over 2 million people.
GENEVA, OH Geneva is a city in Ashtabula County, Ohio. The area which would become Geneva was originally settled in 1805, and was incorporated as a city in 1958. It is named after Geneva, New York. Ashtabula County comprises the Ashtabula, OH Micropolitan Statistical Area, which is also included in the Cleveland–Akron– Canton, OH Combined Statistical Area. According to 2016 United States Census estimates, the five-county Cleveland–Elyria Metropolitan Statistical Area (MSA) consists of Cuyahoga County, Geauga County, Lake County, Lorain County, and Medina County. This MSA has a population of 2,055,612 making Greater Cleveland the 32nd most populous metropolitan area in the United States and the largest metro entirely in Ohio. Greater Cleveland is also part of the Great Lakes Megalopolis.
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The most common occupation in the city of Geneva is in education and health services. This is due to the great elementary schools, middle schools, and high schools in the area. The most noticeable of these schools is Spire Institute and Academy, where young NBA star Lamelo Ball played. Additionally, Geneva is home to HDT Global, which is one of the largest air conditioning, heating, and filtration manufactures in the nation and has received over $100 million in U.S. Department of Defense contracts. This economic strength of the city has allowed the population to hold steady.
POPULATION
1 Mile
3 Miles
5 Miles
2010 POPUL ATION
5,816
10,446
18,844
2021 POPUL ATION
5,651
10,141
18,513
2026 POPUL ATION PROJEC TION
5,623
10,089
18,469
HOUSEHOLDS
1 Mile
3 Miles
5 Miles
2010 HOUSEHOLDS
2,313
4,155
7,411
2021 HOUSEHOLDS
2,232
4,004
7,238
2026 HOUSEHOLD PROJEC TIONS
2,218
3,977
7,214
INCOME
1 Mile
3 Miles
5 Miles
AVG HH INCOME
$57,322
$59,841
$64,576
MEDIAN HH INCOME
$34,079
$38,764
$45,153
AREA OVERVIEW
AREA OVERVIEW
AREA OVERVIEW
DEMOGRAPHICS
TRAFFIC
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Collection Street
Cross Street
Traffic Volume Last Meas.
Distance
East Main St
Woodlan St NE
8,950
2020
0.05
E Main St
Cedar St NE
8,894
2017
0.05
E Main St
Woodlawn St NE
8,346
2018
0.05
N Broadway St
Loveland Ct N
4,950
2016
0.17
North Broadway St
Loveland Ct N
4,667
2020
0.17
E Main St
S Cedar St NE
8,303
2020
0.18
E Main St
S Cedar St NE
7,959
2018
0.18
E Main St
Cedar St W
8,890
2017
0.25
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Frito Lay
3
Circle K
4
Capo’s Pizza
5
Honeybee’s
6
Clark Gas
7
Hong Kong King Buffet
8
Rosemary’s Pizza
9
Dollar Tree
10
Geneva Car Wash
11
Na Kyrsie Meats
12
Mary’s Diner
13
Quick Car
22
2
3
4
21
6
7
8
9
12
5
13
Y
2
11
WA
Reese’s Auto Services
W
M
AI
N
R ST
EE
T
AD
1
10
SB RO
AMENITIES MAP
W MAIN STREET
AMENITIES MAP
AMENITIES MAP
20 19
1
18
S BROADWAY
16
14
Pizza Hut
15
Giant Eagle Supermarket
16
Dollar General
17
Rite Aid
18
Old Mill Winery
19
Bouts & Bouquets Flower Shop
20
Huntington Bank
21
Beverage Depot
22
Domino’s Pizza
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16
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EXCLUSIVELY LISTED BY: JORDAN UTTAL
JASON GRIBIN
PIERCE SCHNEIDER
213.225.7246 jordan.uttal@email.com CA DRE #01512755
213.225.7245 jason.gribin@email.com CA DRE #01819611
858.401.0214 pierce.schneider@j2capa.com CA DRE #02119195