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EXCLUSIVE LISTING AGENTS:<br />
La-Z-Boy & Pro Fitness<br />
1755 Bald Hill Road, Warwick, RI 02886<br />
Price: $3,250,000 | Cap Rate: 9.1%<br />
Corporate La-Z-Boy: One of the World’s Largest Residential Furniture Producers<br />
New 10-Year Lease for La-Z-Boy & New 5-Year Lease for Pro Fitness<br />
La-Z-Boy has Invested over $600,000 into the Building, Including a New Façade<br />
Located on a Major Retail Corridor of Warwick, RI<br />
Area Retailers Include Target, Home Depot, Wal-Mart, Stop & Shop & Sam’s Club among others<br />
A Strong Retail Market With Low Vacancy<br />
Excellent Visibility Along Bald Hill Road<br />
Off I-95 & I-295 Interchange<br />
There are 150,000 +/- people with an average household income of $70,000 +/- within 5 miles.
La-Z-Boy & Pro Fitness<br />
1755 Bald Hill Road, Warwick, RI<br />
TABLE OF CONTENTS<br />
PAGE 1: COVER<br />
PAGE 2: TABLE OF CONTENTS - DISCLAIMER<br />
PAGE 3: INVESTMENT OVERVIEW<br />
PAGE 4: 10-YR CASH FLOW SUMMARY<br />
PAGE 5: INVESTMENT OVERVIEW<br />
PAGE 6: AERIAL PHOTOGRAPH<br />
PAGE 7: TRAFFIC COUNTS MAP<br />
PAGE 8: LOCATION MAP<br />
PAGE 9: LOCATION OVERVIEW<br />
PAGE 10: DEMOGRAPHICS<br />
CONFIDENTIAL MEMORANDUM & DISCLAIMER<br />
<strong>EXP</strong> <strong>Realty</strong> <strong>Advisors</strong>, Inc. (“Agent”) has been engaged as the exclusive agent for the sale of the building located at 1755 Bald Hill Road, Warwick, RI by the owner of the Property (“Seller”). The Property is being offered for<br />
sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly<br />
confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective<br />
investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or<br />
implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained<br />
herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions<br />
contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information<br />
transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon<br />
the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves<br />
the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is<br />
made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of<br />
Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a<br />
binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations hereunder have been satisfied or waived. By taking<br />
possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest<br />
confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials<br />
or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent.<br />
TABLE OF CONTENTS – DISCLAIMER
La-Z-Boy & Pro Fitness<br />
1755 Bald Hill Road, Warwick, RI<br />
<strong>EXP</strong> <strong>Realty</strong> <strong>Advisors</strong> exclusively offers for sale a corporate La-Z-Boy Furniture<br />
store. Included in the sale is a Pro Fitness Gym which is located in the back of<br />
the building. The property is located on Bald Hill Road just west of Interstate-<br />
95. Bald Hill Road is the dominant retail corridor in Warwick. Tenants in the<br />
immediate area (on Bald Hill) include, Target, Home Depot, Sam’s Club, Best<br />
Buy, Stop & Shop, Lowes, Ashley Furniture, Ethan Allen and PetSmart among<br />
others. The property can be delivered free and clear or with the current loan.<br />
La-Z-Boy recently extended their lease for 10 years and are in the process of<br />
completing $600,000 of capital improvements including a brand new façade<br />
which has been completed. Pro Fitness is also at the beginning of a new 5<br />
year lease extension.<br />
LEASE OVERVIEW<br />
PRICE: $3,250,000<br />
CAP RATE: 9.1% (8.01% as of 5/31/12)<br />
NOI: $295,000 ($260,350 as of 5/31/12)<br />
BUILDING AREA: 29,500+/- Square Feet<br />
LAND AREA: 2.25+/- Acres<br />
OCCUPANCY: 100%<br />
YEAR BUILT / RENOVATED: 1998 / 2011<br />
OWNERSHIP: Fee Simple<br />
ESCALATIONS: La-Z-Boy rent escalates 9.4% on 6/1/16<br />
Annual Gross Comm. Exp. Annual<br />
Tenant Name Sq Ft % Share CAM/ SF Monthly CAM Annual Rent Rent/ SF Date Date Options Option Rent<br />
LA-Z-BOY (corp) * 16,000 54.24% $4.34 $5,431 $321,168 $16.00 01/24/07 05/31/21 6/01/21 $19.25 PSF<br />
Yrs:<br />
6-10<br />
$17.50 6/1/2016 9.4% 6/1/26 $21.18 PSF<br />
Pro Fitness 13,500 45.76% $4.34 $4,582 $62,339 $4.62 08/01/10 07/31/15 2 - Five Yr 08/01/15-$84,000 gross<br />
Totals<br />
29,500 100% $4.34 $10,013 $383,507<br />
08/01/20-$96,000 gross<br />
* Note: La-Z-Boy rent decreases on 5/31/12 and then increases on 6/1/16. Rent decrease reflects a Landlord contribution to the new façade.<br />
INVESTMENT OVERVIEW
La-Z-Boy & Pro Fitness<br />
1755 Bald Hill Road, Warwick, RI<br />
INCOME<br />
10 Yr Cash Flow<br />
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020<br />
Bald Hill Rd Base Rent $ 295,000 $ 277,678 $263,353 $263,353 $263,353 $280,000 $280,000 $280,000 $280,000 $280,000<br />
Bald Hill Rd Extra Charges $120,154 $123,759 $127,472 $131,296 $135,235 $139,292 $143,470 $147,774 $152,208 $156,774<br />
TOTAL INCOME $383,507 $387,112 $390,825 $394,649 $398,588 $419,292 $423,470 $427,774 $432,208 $436,774<br />
OPERATING <strong>EXP</strong>ENSES<br />
Alarms 2,000<br />
Insurance 16,000<br />
Landscaping 3,500<br />
Parking Lot Maintenance 2,500<br />
Real Estate Taxes 79,654<br />
Repairs 3,000<br />
Snow Removal 3,500<br />
Management (Per lease w ith La Z Boy) 10,000<br />
$2,060 $2,122 $2,185 $2,251 $2,319 $2,388 $2,460 $2,534 $2,610<br />
$16,480 $16,974 $17,484 $18,008 $18,548 $19,105 $19,678 $20,268 $20,876<br />
$3,605 $3,713 $3,825 $3,939 $4,057 $4,179 $4,305 $4,434 $4,567<br />
$2,575 $2,652 $2,732 $2,814 $2,898 $2,985 $3,075 $3,167 $3,262<br />
$82,044 $84,505 $87,040 $89,651 $92,341 $95,111 $97,965 $100,904 $103,931<br />
$3,090 $3,183 $3,278 $3,377 $3,478 $3,582 $3,690 $3,800 $3,914<br />
$3,605 $3,713 $3,825 $3,939 $4,057 $4,179 $4,305 $4,434 $4,567<br />
$10,300 $10,609 $10,927 $11,255 $11,593 $11,941 $12,299 $12,668 $13,048<br />
Total Operating Expenses $120,154 $123,759 $127,472 $131,296 $135,235 $139,292 $143,470 $147,774 $152,208 $156,774<br />
Non Reimbursed Expenses 3,000<br />
3,000<br />
3,000<br />
NET OPER. INCOME $295,000 $277,678 $260,353 $260,353 $260,353 $277,000 $277,000 $277,000 $277,000 $277,000<br />
Price: 3,250,000<br />
Cap Rate: 9.1% 8.54% 8.01% 8.01% 8.01% 8.52% 8.52% 8.52% 8.52% 8.52%<br />
Cash On Cash (if loan is assumed) 9.25% 8.00% 6.76% 6.76% 6.76% 7.96% 7.96% 7.96% 7.96% 7.96%<br />
Existing Loan<br />
Term: 10/20 Due 5/31/2021<br />
Rate: 6.50%<br />
Balance: 1,860,000<br />
Payment: 166,411<br />
Equity Required 1,390,000 42.8%<br />
Cash Flow $128,589<br />
Cash-on-cash 9.25%<br />
Assumption Fee: 1%<br />
Recourse: No<br />
3,000<br />
3,000<br />
3,000<br />
3,000<br />
3,000<br />
3,000<br />
3,000<br />
CASH FLOW SUMMARY
La-Z-Boy & Pro Fitness<br />
1755 Bald Hill Road, Warwick, RI<br />
One of World’s Largest Residential Furniture Producers<br />
120 Million Customers Worldwide<br />
The property is leased to and operated by La-Z-Boy (NYCE: LZB). Founded in 1927 by Edward M. Knabush and Edwin J. Shoemaker, the original Floral City<br />
Furniture changed its name to La-Z-Boy Chair Company, and then to La-Z-Boy, incorporated. Over the last 20 years the company has broadened its range<br />
through acquisitions of such companies as Kincaid, England, Bauhaus, Hammary, Sam Moore, and LADD Furniture, Inc.<br />
La-Z-Boy is a publicly traded company (“NYSE” LZB), which had a Fiscal Year 2010 revenues of approx. $2 billion. Headquartered out of Monroe, Michigan, La-<br />
Z-Boy is the most recognized brand in the furniture industry, marketing furniture for every room of the home. They are the largest and leading global<br />
producer of reclining chairs in the World and according to the May, 2007 Top 100 ranking by Furniture Today, LA-Z-Boy is the largest retailer of single-brand<br />
upholstered furniture in the U.S. They operate in three groups: Upholstery Group, Casegoods Group, and Retail Group. As of April 30, 2007, it operated 70<br />
company-owned La-Z-Boy Furniture Galleries sores. The company also had agreements with independent dealers for 237 stand-alone La-Z-Boy Furniture<br />
Galleries stores, of which 194 are in the new generation format and 304 in-store galleries. The network constitutes the industry’s largest single-branded<br />
upholstered furniture retailer in North America. Diversification continues to be on the forefront of La-Z-Boy’s expansion as the high quality and comfort of<br />
their early products placed a foundation to gain a diverse customer base.<br />
Website: http://www.la-z-boy.com/<br />
Our modern fitness center has classes for every fitness level, the latest in fitness equipment, flat screen TVs to watch while you exercise, and a juice bar for<br />
refreshment afterwards. We’re not just one more Rhode Island gym or fitness center, where you choose fitness classes or workout programs randomly. Our<br />
personal trainers help you identify your fitness training goals and customize your fitness training. Need the slower pace of Yoga classes or aerobics classes,<br />
or the more vigorous exercise of spin classes or kickboxing classes? Need muscle toning and core strength training or a more aggressive muscle-building or<br />
weight loss program? We help you discover what you need for a healthier you.<br />
Website: http://profitnessri.com/<br />
INVESTMENT OVERVIEW
La-Z-Boy & Pro Fitness<br />
1755 Bald Hill Road, Warwick, RI<br />
Community College of<br />
Rhode Island<br />
ADT: 25,500 Cars<br />
AERIAL PHOTOGRAPH
La-Z-Boy & Pro Fitness<br />
1755 Bald Hill Road, Warwick, RI<br />
TRAFFIC COUNTS
La-Z-Boy & Pro Fitness<br />
1755 Bald Hill Road, Warwick, RI<br />
LOCATION MAP
La-Z-Boy & Pro Fitness<br />
1755 Bald Hill Road, Warwick, RI<br />
WARWICK, RHODE ISLAND<br />
Warwick is located within a stone’s throw of historic Providence, 30 minutes<br />
north of Newport and just over an hour south of downtown Boston. Two<br />
major interstate highways run through Warwick; Interstate 95, the principal<br />
north/south route on the East Coast and Interstate 295. Just minutes from<br />
Warwick, is Interstate 195 which links Providence with southeastern<br />
Massachusetts and Cape Cod.<br />
Warwick’s central location provides access to over 300,000 metro area<br />
residents in a 10-mile radius. Two thirds of New England’s total population of<br />
8.7 million people are within a 75-mile radius, this includes 65 percent of the<br />
region’s manufacturers of plastics, chemicals, communications equipment,<br />
and electrical machinery.<br />
Warwick city hall<br />
Warwick is home to Rhode Island's main airport, T. F. Green Airport, which<br />
serves the greater Providence area and also functions as a reliever for Logan<br />
International Airport in Boston, Massachusetts. It is also the home of the 43rd<br />
Military Police Brigade of the Rhode Island Army National. T.F Green Airport,<br />
recently selected the third best airport in the country in the Conde Nast<br />
Traveler’s Readers survey. The rating was based on ease of location and access,<br />
foods/shops, amenities and comfort/ambience. T.F. Green is serviced by all the<br />
major airlines, which provide over 200 daily flights. Amtrak also provides<br />
convenient rail access to Boston, New York and Washington D.C.<br />
Warwick is a progressive community that is willing to work with developers and<br />
business leaders to foster a business-friendly environment. Another indication<br />
of that commitment is the fact that Warwick maintains a bond rating that is one<br />
of the highest of any community in Rhode Island. The City’s Department of<br />
Tourism Culture and Development serves as a resource for businesses looking to<br />
open, expand, or re-locate to Warwick.<br />
The 10 top largest employers in Warwick are:<br />
•Kent Hospital<br />
•Metropolitan Life Insurance<br />
•United Parcel Service<br />
•Kenney Manufacturing<br />
•JC Penney Co., Inc.<br />
•New England Institute of Technology<br />
•West Bay Residential Services<br />
•Stop & Shop Co., Inc.<br />
•Wal-Mart<br />
•Kent County RIARC<br />
Warwick has a large mix of single-family homes, condominiums and apartments.<br />
The number of people choosing to call Warwick “home” continues to grow. This<br />
is due to affordability. According to recent numbers, the average sale price for a<br />
single-family home in Warwick was just over $245,000. According to the 2000<br />
Census there were 37,000 housing units in Warwick and the population density<br />
was 2,417 persons per square mile of land area.<br />
LOCATION OVERVIEW
La-Z-Boy & Pro Fitness<br />
1755 Bald Hill Road, Warwick, RI<br />
2010 DEMOGRAPHIC SNAPSHOT<br />
Contact Us<br />
<strong>EXP</strong> <strong>Realty</strong> <strong>Advisors</strong><br />
118 East 28th Street<br />
Suite #808<br />
New York, NY 10016<br />
Fax: (212) 686-0078<br />
Website: www.exp1031.com<br />
Our Team<br />
Robert P. James<br />
President<br />
Phone: (212) 972-7457<br />
E-mail: rob@exp1031.com<br />
Daniel de Sa‘<br />
Director of Sales<br />
Phone: (212) 972-3947<br />
E-mail: dan@exp1031.com<br />
DEMOGRAPHICS
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