actual location single tenant hobby lobby | below ......investment highlights. hobby lobby |...

2500 S. Center Street | Marshalltown, IAOffering Memorandum

ACTUAL LOCATION

Single Tenant Hobby Lobby | Below Replacement Cost | Recently Renovated Building

ACTUAL LOCATION

Investment Summary 03

Investment Highlights 05

Tenant Overview 06

Financial Analysis 08

Location Overview 10

Market Overview 13

Contacts 15

For More Information:

CLICK HERE TO CONTACT THE JLL TEAM

mailto:[email protected];[email protected]?subject=Hobby%20Lobby%20-%20Marshalltown


Hobby Lobby | Marshalltown, IA

Investment Summary

Hobby Lobby | Marshalltown, IA | 4

© 2020 Jones Lang LaSalle IP, Inc. All rights reserved.

The Offering

PROPERTY SUMMARY

Address 2500 S Center Street, Marshalltown, IA 50158

Price $1,973,250

Cap Rate 8.75%

Annual Rent $220,000

NOI $172,659

Lease Type Modified Gross

Building Size 55,000 SF

Year Built 2015

Tenant Hobby Lobby Stores, Inc.

Remaining Term 5+ Years (Expiration 3/31/2025)

Renewal Options Three (3), Five (5) Year Options

JLL is pleased to exclusively offer the opportunity to acquire the fee simpleinterest in a single tenant, leased property leased to Hobby Lobby (the“Property”) in Marshalltown, IA. Marshalltown is less than an hour drive to thecapital of Iowa; Des Moines. The Property is situated along Highway 14, a majorretail thoroughfare in the region which boasts more than 18,000 vehicles perday. Hobby Lobby executed a ten (10) year deal in 2015, along with three (3),five (5) year options. All options have roughly ten percent (10%) increases in thebeginning of each.

Hobby Lobby benefits from the strong retailers in the Marshalltown Mall andthose that surround the Property. Marshalltown Mall features anchor tenantssuch as Planet Fitness, Younkers, Fridley Theatres and JC Penney. In addition,other surrounding national retailers such as Walmart, Applebee’s, Burger King,Arby’s, McDonald’s, ALDI, Staples, Aaron’s, Advance Auto Parts, Dunkin

Donuts and AT&T are able to attract customers from an expansive trade area.With the strong surrounding national retailers, coupled with its immediate accessto Iowa Highway 14, which runs through the center of town, and US-30, theProperty is positioned as the destination retail center for the surroundingresidents.

Hobby Lobby, headquartered in, Oklahoma City, Oklahoma, is the largestprivately-owned arts and crafts retailer in the world with more than 850 storesand 37,500 employees operating in 46 states. Although it is primarily an arts andcrafts store, Hobby Lobby also provides hobbies such as picture framing,jewelry making, as well as fabrics, floral and wedding supplies, cards and partyware baskets, wearable art, home accents and holiday merchandise. Thecompany has continued to grow and plans to have over 1,000 stores in the nearfuture.

Hobby Lobby | Marshalltown, IA | 5Investment Highlights

5

Hobby Lobby, headquartered in, Oklahoma City, Oklahoma, is the largest privately-owned arts and crafts retailer in the world with more than 850 stores and 37,500 employees operating in 46 states.

Hobby Lobby is situated along Highway 14, a major retail thoroughfare in the region which boasts more than 18,000 vehicles per day, and US-30, positioning itself as the destination retail for the surrounding residents

Marshalltown Community College (MCC) is situated just 1 mile away from the property; The College contains more than 2,000 students and together with their satellite campus, offers nearly 80 degree/diploma options

In addition, other surrounding national retailers Planet Fitness, Younkers, Fridley Theatres and JC Penney, Walmart, Applebee’s, Burger King, Arby’s, McDonald’s, ALDI, Staples, Aaron’s, Advance Auto Parts, Dunkin Donuts and AT&T are able to attract customers from an expansive trade area

5

Marshalltown Mall


Tenant Overview


Hobby Lobby Stores, Inc., which is headquartered in Oklahoma City, OK, wasfounded in 1970 by David Green, who recently was #79 on the Forbes 400 list ofrichest people in America. Today, Green is responsible for the largest privately-owned arts and crafts retailer in the world with more than 850 stores and 37,500employees operating in 46 states. Although it is primarily an arts and crafts store,Hobby Lobby also provides hobbies such as picture framing, jewelry making, aswell as fabrics, floral and wedding supplies, cards and party ware baskets,wearable art, home accents and holiday merchandise. The company hascontinued to grow and plans to have over 1,000 stores in the near future.

A large percentage of the company’s products and offerings are distributedthrough the company’s 5.5 million square foot distribution facility in OklahomaCity, Oklahoma. Despite the centralized US location, Hobby Lobby has a largereach across the country and operates in China, Hong Kong, and thePhilippines.

In addition to the Hobby Lobby brand, Hobby Lobby Stores, Inc. has affiliatedcompanies that include Hemispheres and Mardel Christian and EducationSupply. Hemispheres carries unique home furnishings and accessories fromaround the world, while Mardel Christian and Education Supply, offers books,Bibles, gifts, church and education supplies, as well as homeschoolingcurriculum. What began as a $600 startup, continues to expand and reachcustomers across the nation, encouraging them to live a creating life.


Tenant Overview

OverviewCompany: Hobby Lobby

Year Founded: 1970

Headquarters: Oklahoma City, OK

Ownership Type: Private

Locations: 850

Sector: Arts and crafts

Website: hobbylobby.com


Financial Analysis



Lease Abstract

LEASE DETAILAddress 2500 S. Center Street, Marshalltown, IA 50158

Tenant Hobby Lobby Stores, Inc.

Building Size 55,000 SF

Year Built 2015

Annual Rent $220,000

Gross Rent / SF $4.00

Annual NOI $172,659

Lease Type Modified Gross

Roof & Structure Landlord Responsibility

Rent Commencement 3/3/2015

Lease Expiration 3/31/2025

Lease Term Remaining 5+ Years

Remaining Options Three (3), Five (5) Year Options

RENT SCHEDULE

Maintenance and Repairs

Tenant shall maintain and repair the interior of the Premises, HVAC, plumbing and electrical components, doors, windows, plate glass and utility lines servicing the Premises.

Utilities Tenant shall pay all charges for Tenant's utilities usage during Tenant's occupancy of the Leased Premises.

InsuranceTenant shall maintain all insurance requirements in the Lease, including; commercial general liability, property insurance cover Tenant's personal property, workers' compensation insurance

TENANT RESPONSIBILITY DETAIL

$1,973,245Asking Price

8.75%Cap Rate

Period Dates Annual Rent % Increase

Base Term (Years 1-5) 3/3/2015 - 3/31/2020 $192,500 -

Base Term (Years 6-10) 4/1/2020 - 3/31/2025 $220,000 14.29%

Option Term 1 (Years 11-15) 4/1/2025 - 3/31/2030 $247,500 12.50%

Option Term 2 (Years 16-20) 4/1/2030 - 3/31/2035 $275,000 11.11%

Option Term 3 (Years 21-25) 4/1/2035 – 3/31/2040 $302,500 10.00%

LANDLORD RESPONSIBILITY DETAIL

Maintenance and Repair

Landlord shall maintain and repair the exterior of the Leased Premises, including, but not limited to, the gutters, downspouts, exterior paint, the structural components, the roof systems of the Leased Premises, including the roof structure, roof membrane and roof access; as well as the load bearing walls, slab and foundation system of the Leased Premises.

TaxesLandlord,at Landlord's sole expense, shall pay all ad valorem real estate taxes levied by a taxing authority against the Shopping Center, or a smaller tax parcel that includes the Leased Premises

CAM Landlord shall maintain and be responsible for lighting, cleaning, snow and ice removal, repairing, landscaping and periodic parking lot re-striping.



NET OPERATING INCOME BREAKDOWN

Hobby LobbyGross Rent $220,000

Exterior Utilities $2,615

Exterior Maintenance $14,048

Taxes & Insurance $30,678

Net Operating Income $172,659

• Expenses were calculated using the Tenant’s Pro Rata share of the leasable floor area in the shopping mall – approximately 17.06%

• The Gross rent of $220,000 is based off of the rent bump scheduled to occur on 4/1/2020

• NOI breakdown is based off of a three (3) year, average operating history.

NOTES

Financial Analysis


Location Overview

Hobby Lobby | Marshalltown, IA | 12Immediate Trade Area


Hobby Lobby | Marshalltown, IA | 13Site Plan




Regional Map

Marshalltown Mall


Market Overview



Market OverviewMARSHALLTOWN OVERVIEW

Marshalltown, IA is located in the central region of the state andis the county seat of Marshall County. The City wasincorporated in July of 1863 and has a land area of roughly19.30 square miles. The population as of the 2010 census wasapproaching 30,000, good for a 5.9% increase over the prioryear.

Economic development was evident throughout the city ofMarshalltown in 2018. Total building permit activity forcommercial, industrial, residential and accessory structuresresulted in more than 100 permits with a value of more than$31 million. Specifically, 16 new residential building permitswere issued which resulted in nearly 40 housing units worthabout $7 million, and another $600,000 in permits were issuedfor remodels and renovations. These figures included projectssuch as the Public Safety Building, the SNT Trucking Additionand the East Olive Apartments.

Marshalltown Mall, which is home to the subject property, isone of the top retail destinations in the city and is in the primaryretail trade area outside of downtown Marshalltown. A surplusof eateries such as McDonald’s, Applebee’s, Burger King,Arby’s, Subway and Perkins Restaurant & Bakery swarm thepremises. Additionally, popular anchor retailers like JCPenneyand Hobby Lobby drive consumers to the area.

Marshalltown Community College (MCC) is situated just 1 mileaway from the property along S Center Street. The Collegecontains more than 2,000 students and maintains a student-faculty ratio of 11:1. MCC awards more than $800,000 inscholarships annually, and together with their satellite campus,offers nearly 80 degree/diploma options.

(Environics Analytics)

Demographics

5-mile Radius

10-mile radius

20-mile radius

POPULATION2010 Census 29,529 34,921 57,9232020 Estimate 29,097 34,225 56,3602025 Projection 29,116 34,195 56,211ESTIMATED HH INCOMEAverage HH Income $64,788 $66,400 $71,838Median HH Income $53,611 $55,277 $58,671HOUSEHOLDS2010 Census 11,111 13,248 15,2412020 Estimate 10,817 12,846 15,1652025 Projection 10,795 12,806 14,671


For More Information:

CLICK HERE TO CONTACT THE JLL TEAM

Jones Lang LaSalle Americas, Inc. or its state-licensed affiliate (“JLL”) has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than JLL, and neither Owner nor JLL, nor their respective equity holders, officers, directors, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and JLL, its officers, directors, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.



actual location single tenant hobby lobby | below ......investment highlights. hobby lobby |...

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