Overview Financial - Constant Contactfiles.constantcontact.com/011cb4c9501/415af4a9-37a9-4095... ·...

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Investment Overview Financial Overview Lease Summary Tenant Overview Market Overview Investment Overview Financial Overview Lease Summary Tenant Overview Investment Overview Financial Overview Lease Summary ACADEMY SPORTS offering memorandum SLIDELL, LOUISIANA 6 1 1 0 7 A I R P O R T R O A D S L I D E L L , L O U I S I A N A 7 0 4 6 0

Transcript of Overview Financial - Constant Contactfiles.constantcontact.com/011cb4c9501/415af4a9-37a9-4095... ·...

Page 1: Overview Financial - Constant Contactfiles.constantcontact.com/011cb4c9501/415af4a9-37a9-4095... · 2018-05-31 · feet of retail. Major anchors along the corridor include Sam’s

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ACADEMY SPORTS of fer ing memorandum

SLIDELL, LOUISIANA

6 1 1 0 7 A I R P O R T R O A D S L I D E L L , L O U I S I A N A 7 0 4 6 0

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Marcus & Millichap is pleased to present this 68,000-Square Foot Academy Sports + Outdoors in Slidell, Louisiana; which is 39 miles north of New Orleans. Academy has five years remaining on an absolute net lease with zero landlord responsibilities, and four, five-year renewal options. The lease is backed by a corporate guaranty from Academy, Limited; which register more than $4.7-Billion in revenue across 228 units in 2016. Academy Sports + Outdoors was ranked number 87 on Forbes American’s Largest Private Companies in 2016.

This asset is located just off Air Port Road in the Stirling Slidell Centre shopping center and is highly visible from Interstate-12, which sees more than 68,000 vehicles per day. Stirling Slidell Centre offers optimal co-tenancy and proven sales performance of such national retailers as Academy Sports + Outdoors, Ross Dress For Less, PetSmart, Shoe Carnival, and David’s Bridal.

The Airport Road Retail Corridor is a regional retail trade area with more than 1.5-million square feet of retail. Major anchors along the corridor include Sam’s Club, Walmart, Home Depot, Dillard’s, and J.C. Penney. This asset also benefits from a growing population. From 2010 to 2016, there was an 8 percent population increase.

Additional Tenants in the Retail Trade Area Include: Ross Dress For Less, PetSmart, AT&T, Zales, Kay Jewelers, Bath & Body Works, Starbucks, Bed Bath & Beyond, Marshalls, Dollar Tree, Chase Bank, McDonald’s, Burger King, Taco Bell, Wendy’s, Walgreens, and More.

I N V EST M E N T OV E RV I E W

2This 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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330954

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• Academy Sports + Outdoors in Slidell, Louisiana | 39 Miles North of New Orleans

• More Than Five Years Remaining on Absolute Net Lease | Zero Landlord Responsibilities

• Lease Features Four, Five-Year Renewal Options

• Corporate Guaranty | Academy, Limited | Number 87 in Forbes Largest Private Companies (July 2016) | $4.7-Billion in Revenue Across 228 Units

• Airport Road Retail Corridor| More Than 1.5-Million Square Feet of Retail

• Strong National Credit Anchors | Sam’s Club, Walmart, Home Depot, Dillard’s, J.C. Penney

• Direct Frontage on Interstate-12 | More Than 68,000 Vehicles Per Day

• Strong Demographics | 8 Percent Population Growth from 2010 to 2016 in the Five-Mile Radius

• Additional Tenants in the Retail Trade Area Include: Ross Dress For Less, PetSmart, AT&T, Zales, Kay Jewelers. Chase Bank, McDonald’s, Taco Bell, Wendy’s, Walgreens, and More

INVESTMENT HIGHLIGHTS

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F I N A N C I A L O V E R V I E W

PRICE $4,258,339

CAP RATE 8.25%

NOI $351,313

PRICE PER SQUARE FOOT $62.60

RENT PER SQUARE FOOT $5.16

YEAR BUILT 2003

APPROXIMATE LOT SIZE 7.26 Acres

GROSS LEASEABLE AREA 68,021

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTOR Corporate Guaranty

LEASE TYPE Absolute Net

ROOF AND STRUCTURE Tenant Responsible

6 1 1 0 7 A I R P O R T R O A DS L I D E L L , L O U I S I A N A 7 0 4 6 0

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4This 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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330954

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L E A S E S U M M A RY

LEASE COMMENCEMENT DATE 6/1/2003

LEASE EXPIRATION DATE 5/31/2023

LEASE TERM 20 Years

TERM REMAINING 5 Years

INCREASES None Remaining

OPTIONS TO RENEW Four, Five-Year

FIRST RIGHT OF REFUSAL Yes

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5This 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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330954

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Founded in 1938, Academy, Limited; doing business as Academy Sports & Outdoors is one of the nation’s largest sporting goods and outdoor stores. At Academy Sports + Outdoors, we make it easier for everyone to enjoy more sports and outdoors. At each of our 220+ locations, we carry a wide range of quality hunting, fishing and camping equipment, patio sets and barbecue grills, along with sports and recreation products, at everyday low prices. For all. For less.

Academy is currently owned by funds advised by Kohlberg Kravis Roberts & Company, Limited Partnership (together with its affiliates, “KKR”), a leading global investment firm, and led by Chief Executive Officer and President J.K. Symancyk. Prior to August 2011, the company was owned by the Gochman Family and led by Chairman and Chief Executive Officer David Gochman. David’s grandfather, Max Gochman, started Academy Sports + Outdoors over 75 years ago when he opened Academy Tire Shop in 1938 in San Antonio, Texas. After a few years, Max began selling military surplus, and the store continued to evolve into what it is now a premier sports, outdoor, and lifestyle retailer with a broad assortment of high-quality hunting, fishing and camping equipment and gear along with sports and leisure products, footwear, apparel and much more. Over the last several decades, the company has grown substantially from its small beginnings. Sales reached one billion dollars in 2004, two billion dollars in 2007, and three billion dollars in 2012. Today, annual sales exceed $4.6 billion.

T E N A N T P R O F I L E

TENANT TRADE NAME Academy Sports + Outdoors

OWNERSHIP Private

TENANT Corporate Store

LEASE GUARANTOR Corporate Guarantee

NUMBER OF LOCATIONS 228

SALES VOLUME $4.7 Billion (2015)

NET WORTH $31.3 Billion (2015)

RANKNumber 87 Forbes America’s Largest Private Companies

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KKR is a global investment firm that manages investments across multiple asset classes, including private equity, energy, infrastructure, real estate, credit strategies and hedge funds.

Specializing in leveraged buyouts, headquartered in New York City, the firm sponsors and manages private equity investment funds. A pioneer in the leveraged buyout industry, the firm has completed over $400 billion of private equity transactions since its inception.

The firm was founded in 1976 by Jerome Kohlberg, Jr., and cousins Henry Kravis and George R. Roberts, all of whom had previously worked together at Bear Stearns, where they completed some of the earliest leveraged buyout transactions. Since its founding, KKR has completed a number of landmark transactions including the 1989 leveraged buyout of RJR Nabisco, which was the largest buyout in history to that point, as well as the 2007 buyout of TXU, which is currently the largest buyout completed to date. KKR has completed investments in over 160 companies since 1977, completing at least one investment in every year except in 1982 and in 1990.

KKR has 13 additional offices in the United States, Europe and Asia. The firm is currently located in the Solow Building (9 W. 57th Street in Manhattan New York), but recently announced its intentions to occupy a newly constructed 30 Hudson Yards.

In October 2009, KKR listed shares in the company through KKR & Co., an affiliate that holds 30% of the firm’s ownership equity, with the remainder held by the firm’s partners. In March 2010, KKR filed to list its shares on the New York Stock Exchange (NYSE), with trading commencing four months later, on July 15, 2010.

A B O U T K K R

7This 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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330954

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Slidell is the largest city situated on the northeast shore of Lake Pontchartrain and St. Tammany Parish, Louisiana, United States. The population was 27,068 at the 2010 census. Greater Slidell has a population of about 90,000. It is part of the New Orleans−Metairie−Kenner Metropolitan Statistical Area.

The city of Slidell is in Saint Tammany Parish. It is a part of the New Orleans metro area. Slidell was founded in 1882 after the New Orleans and Northeastern Railroad arrived in the area. Slidell was formally incorporated as a city in 1888. It was named after John Slidell, an American politician. Business in the city began to develop in the early twentieth century.

Slidell is the global headquarters for Automotive manufacturer and Military contractor Textron Marine & Land Systems, an American military contractor that manufactures armored vehicles, turrets, advanced marine craft, surface effects ships, and other weapon systems. Amtrak’s daily Crescent train connects Slidell with New York City, Washington, D.C., Atlanta, Birmingham, and New Orleans. The Slidell Amtrak station is situated on Front Street in Olde Towne Slidell, with a beautiful view of one of the city’s parks, Heritage, which is complete with playground equipment for younger children and open spaces for people to play football. There are also numerous fishing spots. Slidell is located on the southwest corner of the intersection of Interstate 10, Interstate 12, Interstate 59, and U.S. Highway 11. The I-10 Twin Span Bridge runs from Slidell over Lake Pontchartrain to New Orleans East. Slidell Airport (ICAO: KASD, FAA LID: ASD) is a city-owned public-use airport located four nautical miles (7 km) northwest of the central business district of Slidell.

Higher education is available from Delgado Community College, Dillard University, Orleans Parish, Louisiana Technical College, Loyola University New Orleans and Mississippi Gulf Coast Community College.

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A B O U T S L I D E LL

8This 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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330954

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1 Mile 3 Mile 5 Mile 1 Mile 3 Mile 5 Mile 1 Mile 3 Mile 5 Mile

2000 Population 1,974 14,556 47,747 2000 Households 720 5,192 17,220 2016 Average HH Income $68,927 $64,565 $65,457

2010 Population 2,678 16,955 50,913 2010 Households 973 6,141 18,762 2016 Median HH Income $60,234 $50,748 $50,523

2016 Population 2,884 17,899 53,197 2016 Households 1,053 6,500 19,633 2016 Per Capita Income $25,166 $23,447 $24,158

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MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS:

The i n f o rma t i on con t a i ned i n t h i s Ma r ke t i ng B rochu re has been ob t a i ned f r om sou rces we be l i e ve t o be r e l i ab l e. Howeve r, Ma rcus & M i l l i c hap has no t and w i l l no t ve r i f y an y o f t h i s i n f o rma t i on , no r has Ma rcus & M i l l i c hap conduc ted any i n ves t i ga t i on r ega rd i ng t hese ma t t e r s . Ma rcus & M i l l i c hap makes no gua ran t ee, wa r r an t y o r r ep resen t a t i on wha t soeve r abou t t he accu racy o r comp le t eness o f an y i n f o rma t i on p ro v i ded .

As t he Buye r o f a ne t l e a sed p rope r t y, i t i s t he Buye r ’s r e spons i b i l i t y t o i ndependen t l y con f i rm t he accu racy and comp le t eness o f a l l ma te r i a l i n f o rma t i on be fo re comp le t i ng any pu r chase. Th i s Ma rke t i ng B rochu re i s no t a subs t i t u t e f o r you r t ho rough due d i l i gence i n ves t i ga t i on o f t h i s i n ves tmen t oppo r t un i t y. Ma rcus & M i l l i c hap e xp ress l y den i e s any ob l i ga t i on t o conduc t a due d i l i gence e xam ina t i on o f t h i s P rope r t y f o r Buye r.

Any p ro j ec t i ons , op i n i ons , a s sump t i ons o r e s t ima tes used i n t h i s Ma r ke t i ng B rochu re a r e f o r e xamp le on l y and do no t r ep resen t t he cu r r en t o r f u t u r e pe r f o rmance o f t h i s p rope r t y. The va l ue o f a ne t l e a sed p rope r t y t o you depends on f ac to r s t ha t shou l d be e va l ua t ed by you and you r t a x , f i n anc i a l and l ega l adv i so r s .

Buye r and Buye r ’s t a x , f i n anc i a l , l ega l , and cons t r uc t i on adv i so r s shou l d conduc t a ca re f u l , i ndependen t i n ves t i ga t i on o f an y ne t l e a sed p rope r t y t o de t e rm ine t o you r sa t i s f ac t i on w i t h t he su i t ab i l i t y o f t he p rope r t y f o r you r needs .

L i ke a l l r ea l e s t a t e i n ves tmen t s , t h i s i n ves tmen t ca r r i e s s i gn i f i c an t r i s k s . Buye r and Buye r ’s l ega l and f i n anc i a l adv i so r s mus t r eques t and ca re f u l l y r e v i ew a l l l ega l and f i n anc i a l documen t s r e l a t ed t o t he p rope r t y and t enan t . Wh i l e t he t enan t ’s pas t pe r f o rmance a t t h i s o r o t he r l oca t i ons i s an impo r t an t cons i de r a t i on , i t i s no t a gua r an t ee o f f u t u r e success . S im i l a r l y, t he l ease r a t e f o r some p rope r t i e s , i n c l ud i ng new l y -cons t r uc t ed f ac i l i t i e s o r new l y - acqu i r ed l oca t i ons , may be se t based on a t enan t ’s p ro j ec t ed sa l e s w i t h l i t t l e o r no r eco rd o f ac t ua l pe r f o rmance, o r compa rab l e r en t s f o r t he a r ea . Re tu r ns a r e no t gua r an t eed ; t he t enan t and any gua r an to r s may f a i l t o pay t he l ease r en t o r p rope r t y t a xes , o r may f a i l t o comp l y w i t h o t he r ma te r i a l t e rms o f t he l ease ; cash f l ow may be i n t e r r up t ed i n pa r t o r i n who l e due t o ma rke t , econom ic, env i r onmen ta l o r o t he r cond i t i ons . Rega rd l e s s o f t enan t h i s t o r y and l ease gua r an t ees , Buye r i s r e spons i b l e f o r conduc t i ng h i s /he r own i n ves t i ga t i on o f a l l ma t t e r s a f f ec t i ng t he i n t r i n s i c v a l ue o f t he p rope r t y and t he va l ue o f an y l ong- t e rm l ease, i n c l ud i ng t he l i k e l i hood o f l oca t i ng a r ep l acemen t t enan t i f t he cu r r en t t enan t shou l d de f au l t o r abandon t he p rope r t y, and t he l ease t e rms t ha t Buye r may be ab l e t o nego t i a t e w i t h a po ten t i a l r ep l acemen t t enan t cons i de r i ng t he l oca t i on o f t he p rope r t y, and Buye r ’s l ega l ab i l i t y t o make a l t e r na t e use o f t he p rope r t y.

By accep t i ng t h i s Ma r ke t i ng B rochu re you ag ree t o r e l ease Ma rcus & M i l l i c hap Rea l E s t a t e I n ves tmen t Se r v i ces and ho l d i t ha rm less f r om any k i nd o f c l a im , cos t , e xpense, o r l i ab i l i t y a r i s i ng ou t o f you r i n ves t i ga t i on and /o r pu r chase o f t h i s ne t l e a sed p rope r t y.

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B R O K E R O F R E C O R D : C H R I S S H A H E E N | M A R C U S & M I L L I C H A P | L O U I S I A N A | L I C E N S E : B R O K . 0 0 9 5 6 9 2 6 6 2 - A C T

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