OFFERING MEMORANDUM Fresenius 130 7-Eleven, Westavia Blvd Cleveland, Scottsburg, OH IN 1
2 Matthews Retail Advisors
contents 04 EXECUTIVE SUMMARY 06 08 12 financial OVERVIEW tenant overview area OVERVIEW exclusively listed by MIchael Moreno Senior Associate Michael.Moreno@matthews.com DIR (949) 432-4511 MOB (818) 522-4497 LIC # 01982943 (CA) Kyle Matthews Broker of Record Lic # RC51700140 (IN) rahul chhajed Single Tenant Net Lease Rahul.Chhajed@matthews.com DIR (949) 432-4513 MOB (818) 434-1106 LIC # 01986299 (CA) 7-Eleven, Cleveland, OH 3
executive summary investment highlights Property Fresenius Medical Care currently occupies 5,944 SF of the property; remaining 1,800 SF is used for storage by single unit retailer (The Party Guys) on month/month lease Significant Upside Potential Current lease Fresenius lease expires in 2019 potential for expansion upon expiration of current term Annual Rental Increases Fresenius lease provides 2% Annual Increases throughout base term of lease 2.50%-3.00% increases in options Location Very Active Clinic Fresenius offers dialysis at 12 stations Six Days/Week 2 Shifts/Day Clinic is strategically located in the city s main retail corridor surrounding national tenants include Walmart Supercenter, McDonald s Wendy s, Waffle House, Hampton Inn, Cracker Barrel, Sonic, Burger King, and Holiday Inn, amongst others Located within 2.5 miles of Scott Memorial Hospital largest medical complex in Scottsburg Tenant Fresenius Medical Care (NYSE: FMS) is the world s largest dialysis provider and a fortune 500 company with a $26 Billion market cap The company currently holds an S&P credit rating of BBB- (Investment Grade Credit) Fresenius operates over 2,200 dialysis facilities in North America alone, with the company continuing its expansion domestically and overseas 4 Matthews Real Estate Investment Services
7-Eleven, Cleveland, OH 5
6 Matthews Retail Advisors financial overview
FRESENIUS MEDICAL CARE 130 Westavia Blvd Scottsburg, IN 47170 List Price...$1,588,755 CAP Rate - Current... 9.00% Gross Leasable Area...± 7,648 SF Lot Size... ± 1.47 Acres (64,033 SF) Year Built...2010 Annualized Operating Data Monthly Rent Annual Rent Rent/SF Cap Rate Base - 2017-2018 $11,915.70 $142,988.39 $18.70 9.00% Base - 2018-2019 $12,171.12 $146,053.40 $19.10 9.64% Option 1 $12,506.17 $150,074.04 $19.62 9.90% Option 2 $14,311.36 $171,736.29 $22.46 11.33% Option 3 $16,439.54 $197,274.50 $25.79 13.02% *NOI = Fresenius Rent ($157,672.92) + Party Guys Rent ($4,500) Expenses ($19,184.53) = $142,988.39 Tenant Summary Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof and Structure Original Lease Term Fresenius Medical Care Fee Simple Corporate NN Landlord Responsible 10 Years Rent Commencement Date 12/21/2009 Lease Expiration Date 12/20/2019 Term Remaining on Lease Increases Options ± 2 Years 2% Annual Increases in Base Term; 2.50-3.00% in Options Three, 5-Year Fresenius, Scottsburg IN 7
Lease Abstract
Lease Abstract Tenant: Bio-Medical Applications of Indiana, Inc. DBA Fresenius Medical Care Scott County Tenant Address: 920 Winter St. Waltham, MA 02451 Date of Lease: May 13, 2009 Lease Commencement: December 21, 2009 Lease Expiration: December 31, 2019 Lease Term: Lease Type: Square Footage Ten (10) Years 3 remaining NN 5,944 SF Annual Rent: $157,672.92 Rental Increases: Renewal Options: Real Estate Taxes: Insurance: Repairs and Maintenance: Sales: 2% Annual Increases Three (3) Five (5) Year Options Landlord Tenant & Landlord Tenant responsible for non-structural portions of the interior of the premises Landlord responsible for repairs/replacements to exterior and structural portions including: roof/structure/parking lot None Fresenius, Scottsburg IN 9
10 Matthews Retail Advisors tenant overview
Property Name Parent Company Trade Name Ownership Revenue Net Income Fresenius Medical Care Fresenius Medical Care Holdings, Inc. Subsidiary $10.37B $787.64M No. of Locations ± 2,200 No. of Employees ± 108,851 Headquartered Waltham, MA Website www.fmc-ag.com Year Founded 1988 TENANT OVERVIEW Fresenius Medical Care Holdings, operating as Fresenius Medical Care North America or FMCNA, operates a network of some 2,200 dialysis clinics located throughout the continent. One of the largest providers of kidney dialysis services, FMCNA offers outpatient and in-home hemodialysis treatments for chronic kidney disease. The company s operating units also market and sell dialysis machines and related equipment and provide renal research, laboratory, and patient support services. FMCNA oversees the North American operations of dialysis giant Fresenius Medical Care AG & Co. Fresenius Medical Care is the world s leading provider of products and services for people with chronic kidney failure. Around 2.8 million patients with this disease worldwide regularly undergo dialysis treatment. Dialysis is a vital blood cleansing procedure that substitutes the function of the kidney in case of kidney failure. The company s strategy is geared toward sustainable growth and aims to continuously improve the quality of life of patients with kidney disease by offering innovative products and treatment concepts of the highest quality. Fresenius, Scottsburg IN 11
the offering parcel map Property Name Property Address Fresenius 130 Westavia Blvd Scottsburg, IN 47170 Assessor s Parcel Number 72-04-24-130-001.035-008 Site Description Number of Stories One Year Built 2010 Gross Leasable Area (GLA) ± 7,648 SF Lot Size ± 1.47 Acres (64,033 SF) Type of Ownership Fee Simple Parking ± 20 Surface Spaces Parking Ratio 2.62 : 1,000 SF Landscaping Professional Topography Generally Level Oceanside Blvd ± 31,792 College Blvd ± 40,116 Construction Foundation Framing Exterior Parking Surface Roof Concrete Slab Steel Brick Asphalt Flat 12 Matthews Real Estate Investment Services
Surrounding Retail 7-Eleven, Cleveland, OH 13
Area overview Scottsburg, IN Scottsburg, IN is just 30 miles north of Louisville, KY in Scott County. The historic town offers antique shops, parks, and beautiful spots for fishing and outdoor fun. Hardy Lake is a popular destination for boating, hiking, and camping. The Knobstone Trail is Indiana s longest trail sharing the 741- acre reservoir with Hardy Lake. Scott County us experiencing economic growth in durable good manufacturers and technology-oriented companies. The products being produced include software, biotechnology, publishing, printing, non=perishable foods, and electronics. The SCEDC is dedicated to seeing the success in the economic well-being of Scott County. They support growth in several fields. Major Industries in Scott County include Advanced Manufacturing, Military Related Contractors, Life Sciences, Food and Beverage, Optical Technologies, Logistics, Agriculture, and Tourism. DEmographics POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 1,916 8,803 15,940 2017 Estimate 1,903 8,769 15,923 2010 Census 1,901 8,889 16,291 2000 Census 1,675 8,376 15,756 HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2022 Projection 841 3,604 6,404 2017 Estimate 834 3,576 6,372 INCOME 1 Mile 3 Mile 5 Mile 2017 Est. Average Household Income $61,078 $56,124 $54,390 14 Matthews Real Estate Investment Services
LOUISVILLE, KY Louisville is the largest city in the Commonwealth of Kentucky. It is one of two cities in Kentucky designated as first-class city. Louisville is an industrial, shipping, and commercial center. It has a prosperous river-town character with a distinct Southern accent. Louisville, situated on the Ohio River, is influenced by both Southern and Midwestern culture. Louisville is home to several annual cultural events, of which the most well-known is the Kentucky Derby, held at the historic Churchill Downs. Recently, Louisville has emerged as a major center for the healthcare and medical sciences industries. Louisville has been central to advancements in heart and hand surgery as well as cancer treatment. 7-Eleven, Cleveland, OH 15 Fresenius, Scottsburg IN 15
ECONOMY Louisville is home to dozens of companies and organizations across several industrial classifications. Its strategic location at the Falls of the Ohio and its unique position in the central United States make it a practical location for the transfer of cargo along its route to other destinations. Louisville offers a high-value proposition and allows businesses to succeed in a vibrant city. Louisville is a competitive, authentic, global city, home to UPS Worldport and a center for advanced manufacturing and logistics. Since 2014, Louisville has seen more than $8 billion in investments TOP EMPLOYERS 16 Matthews Real Estate Investment Services
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Fresenius Medical Center located at 130 Westavia Blvd, Scottsburg, IN 47170 ( Property ). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
exclusively listed by MIchael Moreno Senior Associate Michael.Moreno@matthews.com DIR (949) 432-4511 MOB (818) 522-4497 LIC # 01982943 (CA) rahul chhajed Single Tenant Net Lease Rahul.Chhajed@matthews.com DIR (949) 432-4513 MOB (818) 434-1106 LIC # 01986299 (CA) Kyle Matthews Broker of Record Lic # RC51700140 (IN) Fresenius 130 Westavia Blvd Scottsburg, IN 18 Matthews Retail Advisors