exclusive listing jcpenney ground lease · the improvements are owned by the tenant and are not for...
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The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
In Association with: For more information, please contact:
Robert C. Sanner
Partner/Broker
415-677-0439
bsanner@ctbt.com LIC #00869657
Rick Sanner
Vice President
415-677-0429
rsanner@ctbt.com LIC #01792433
Drew Fleming
Cassidy Turley
A Georgia Licensed Broker LIC #262066
Cassidy Turley Northern California www.ctbtnnn.com
JCPenney Ground Lease ATLANTA SUBURB – $19/SF LAND PRICE
Hiram, Georgia — High Growth Suburb West of Downtown
Price: $6,805,000 — 6.35% Cap Rate
17-Year Absolute Net Lease
High Traffic Retail Corridor (Super Target, Super Walmart, Home Depot, Kohl’s, etc.)
$75K Average Incomes
File Photograph
Actual JCPenney Retail Store
EXCLUSIVE LISTING
JCPenney Hiram, Georgia
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0212:29
LOCATION 5043 Jimmy Lee Smith Parkway, Hiram, Georgia. 25 miles west of downtown
Atlanta. Within Hiram Square Shopping Center.
LOT SIZE Approximately 8.361 acres — 364,205+/- square feet.
Only the land is for sale.
IMPROVEMENTS Constructed in 2009, a 104,828+/– square foot freestanding single-story JCPENNEY
retail building with onsite parking.
The improvements are owned by the tenant and are not for sale.
GROUND LEASE Ground leased to a subsidiary of, and guaranteed by, the J. C. PENNEY COMPANY,
INC. for 20 years from July 2009 until July 2029 (17+ years remaining). The current
annual rent of $432,000 increases to $453,600 in year 11. The lease is absolute net
with the tenant responsible for all taxes, insurance and maintenance including roof
and structure. There are five 5-year options at rent increases; the first with a 10%
rental increase and options 2-5 with 5% rental increases.
ANNUAL INCOME
PRICE $6,805,000 — 6.35% Cap Rate
PRICE PER SQUARE FOOT $19 — Land Only
YEARS ANNUAL RENT RETURNS
1-10 $432,000 6.35%
11-20 $453,600 6.67%
(Option 1) $498,960 7.33%
(Option 2) $523,908 7.70%
(Option 3) $550,103 8.08%
(Option 4) $577,609 8.49%
(Option 5) $606,498 8.91%
JCPenney Hiram, Georgia
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0212:29
ABOUT THE TENANT
AND GURANTOR
The lease is with JCPenney Properties, and it is guaranteed by the parent which is
J. C. PENNEY COMPANY, INC. (NYSE: JCP), one of America's leading retailers,
operating over 1,100 department stores throughout the United States and Puerto
Rico. Serving more than half of America’s families each year, JCPenney offers a
wide array of private, exclusive and national brands which reflect the Company’s
vision to be America’s shopping destination for discovering great styles at compelling
prices.
For the fiscal year ended January 28, 2012, the company reported total revenues of
$17.26 billion with a net loss of $152 million. (See paragraph below). Net worth was
$4.0 billion.
In late January, 2012, JCP announced a company restructuring which was deemed
by Wall Street to be quite positive. In fact, the stock price went up about 15%(!) in
one day, from 34 to 40. The one-time restructuring costs for the year were $451
million. JCP had a reported operating loss for the year of $2 million. So, without that
one-time charge, operating earnings would have been $449 million.
JCP stock is up about 50% in the six months ending February and up about 15% in
the six weeks ending February.
JCPenney is rated “BB+” by Standard & Poor’s. This rating was not changed,
positively or negatively, as a result of any of the above.
Website: www.jcpenney.com
STORE SALES The store does not report sales.
JCPenney Hiram, Georgia
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0212:29
SITE INFORMATION Located in a western bedroom community of Atlanta with a regional draw from other
western suburbs, the property is located along an extremely dense retail corridor
within a fast growing submarket of the Atlanta MSA. (See the aerial for all the
national retailers on this street). The subject neighborhood contains a significant
level of primary traffic arteries including Highway 92, Highway 120, and Highway 6.
The site is located along the north side of Jimmy Lee Smith Parkway (which is also
Route 6 and Route 278) across from a Super Target anchored power center and
adjacent to a free-standing Best Buy. This road is four lanes headed southeast,
intersecting with Interstate 20, Interstate 285 (the Atlanta perimeter road), Interstate
85 and the Atlanta Airport.
National retailers in the immediate area include Walmart Supercenter, Sears, Home
Depot, Sam's Club, Kroger, Kohl's, Big Kmart, PetSmart, Marshalls, Staples, Sports
Authority, Ross, Chase Bank, Michael's and many others.
.
TRAFFIC COUNTS
ABOUT THE AREA
Hiram is located 25 miles northwest of Atlanta. It has been extremely high growth.
(See demographics). The city is a part of the Atlanta metropolitan area.
Atlanta
The Atlanta metropolitan area is the ninth-largest metropolitan statistical area (MSA)
in the United States. In addition to Atlanta, Georgia's capital and largest city, the
Atlanta metropolitan area spans up to 28 counties in north Georgia and had a total
2010 population of 5,268,860.
The Atlanta metropolitan area is the third largest in the southern United States. The
Atlanta region has seen significant increasing population since the 1970s, and added
about 1.6 million residents between 2000 and 2010.
Atlanta is a top business city and is also the primary transportation hub of the
southeastern United States—via highway, railroad, and air. Metro Atlanta contains
the world headquarters of corporations such as: Coca-Cola, Home Depot, United
Parcel Service, Delta Air Lines, AT&T Mobility, and Newell Rubbermaid. Atlanta has
the country’s fourth-largest concentration of Fortune 500 companies, and more than
75 percent of Fortune 1000 companies have business operations in the metropolitan
area.
2007 AVERAGE DAILY TRAFFIC
Jimmy Lee Smith Parkway 37,050
JCPenney Hiram, Georgia
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0212:29
ABOUT THE AREA
(CONTINUED)
Other headquarters for some major companies in Atlanta and around the metro area
include Arby’s, Chick-fil-A, Earthlink, Equifax, Gentiva Health Services, Georgia-
Pacific, Oxford Industries, RaceTrac Petroleum, Southern Company, Mirant, and
Waffle House.
SunTrust Banks, the seventh largest bank by asset holdings in the United States, has
its home office in downtown. The Federal Reserve System has a district
headquarters in Atlanta.
The city has more than 30 institutions of higher education, including the Georgia
Institute of Technology (Georgia Tech), a premier research university that is
consistently ranked among the nation’s top ten public universities; Emory University,
a prominent liberal arts and research institution that has been consistently ranked as
one of the top 20 schools in the United States; Georgia State University, a
comprehensive public research university located downtown; SCAD-Atlanta, the
Atlanta campus of Savannah College of Art and Design, a private arts university; the
Mercer University Cecil B. Day Graduate and Professional Studies campus; Morris
Brown College, a four-year, private, coed, liberal arts college; and the Atlanta
University Center, comprising Clark Atlanta University, Morehouse College, Spelman
College, and Interdenominational Theological Center, a consortium of historically-
black colleges.
Air transportation is available from Atlanta International Airport (“ATL”). It is the
primary hub for Delta Air Lines, Air Tran Airways, Delta Connection and partner
Atlantic Southeast. Atlanta Airport, with its 180 gates, serves as a major transfer
point for flights to/from smaller US cities. It is also an international gateway to/from
the United States. ATL offers over 200 nonstop destinations, many of which are
international ones. By most measures, it is the busiest airport in the United States
and one of the busiest in the world.
DEMOGRAPHICS DEMOGRAPHICS 1-MILE 3-MILE 5-MILE
Population (2011) 2,179 24,169 79,244
Average HH Income $75,024 $79,767 $81,269
Growth 2000-2011 101.04% 74.12% 45.65%
JCPenney Hiram, Georgia
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0212:29
*The above net income is an estimate and does not provide for all potential costs and
expenses (i.e., maintenance, repair, etc.) that may be required of the owner. Any
reserves set forth herein are merely estimates and not based on any experience,
physical inspection, or prior knowledge. All prospective purchasers are strongly
advised to make an independent investigation to determine their estimate of costs
and expenses prior to entering into an agreement to purchase.
NOTE The information set forth herein has been received by us from sources we believe to
be reliable, but we have made no independent investigation of the accuracy or
completeness of the information and make no representations with respect thereto.
The above is submitted subject to errors, prior sale or lease, change in status, or
withdrawal without notice.
GEORGIA
JCPenney Hiram, Georgia
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0212:29
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JCPenney Hiram, Georgia
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0212:29
Updated Summary Report (%) February 9, 2012
Longitude: -84.748464 Latitude: 33.88955430
1 mi
Ring 3 mi
Ring 5 mi
Ring
POPULATION
1990 Total Population 1,109 9,713 31,307
2000 Total Population 1,084 13,881 54,406
2011 Total Population 2,179 24,169 79,244
2016 Total Population 2,374 26,819 88,503
% Population Change 1990-2000 -2.25% 42.91% 73.78%
% Population Change 2000-2011 101.04% 74.12% 45.65%
% Population Change 2011-2016 8.93% 10.96% 11.68%
HOUSEHOLDS
1990 Total Households 366 3,289 10,592
2000 Total Households 378 4,750 18,334
2011 Total Households 804 8,511 27,016
2016 Total Households 876 9,380 29,762
% Households Change 1990-2000 3.28% 44.42% 73.09%
% Households Change 2000-2011 112.58% 79.17% 47.35%
% Households Change 2011-2016 9.00% 10.22% 10.17%
2011 RACE
% 2011 White Population 60.21% 68.08% 68.28%
% 2011 Black Population 32.58% 25.53% 25.66%
% 2011 American Indian/Alaska Native .23% .33% .29%
% 2011 Asian/Hawaiian/Pacific Islander 1.65% 1.39% 1.33%
% 2011 Other Population (Incl 2+ Races) 5.32% 4.67% 4.44%
% 2011 Hispanic Population 6.61% 5.85% 5.73%
% 2011 Non-Hispanic Population 93.39% 94.15% 94.27%
JCPenney Hiram, Georgia
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0212:29
Updated Summary Report (%) February 9, 2012
Longitude: -84.748464 Latitude: 33.88955430
1 mi
Ring 3 mi
Ring 5 mi
Ring
INCOME
2011 Per Capita Income $27,664 $28,088 $27,706
2011 Median Household Income $71,338 $66,714 $64,069
2011 Average Household Income $75,024 $79,767 $81,269
% 2011 Household Income < $10,000 4.48% 3.49% 4.17%
% 2011 Household Income $10,000-$14,999 4.23% 3.56% 3.36%
% 2011 Household Income $15,000-$19,999 3.86% 4.86% 3.41%
% 2011 Household Income $20,000-$24,999 4.23% 3.04% 3.43%
% 2011 Household Income $25,000-$29,999 2.37% 3.02% 3.94%
% 2011 Household Income $30,000-$34,999 3.11% 5.05% 4.92%
% 2011 Household Income $35,000-$39,999 2.49% 3.85% 4.33%
% 2011 Household Income $40,000-$44,999 2.99% 4.96% 5.05%
% 2011 Household Income $45,000-$49,999 7.22% 5.73% 4.98%
% 2011 Household Income $50,000-$59,999 7.10% 7.86% 9.23%
% 2011 Household Income $60,000-$74,999 10.46% 10.21% 11.68%
% 2011 Household Income $75,000-$99,999 14.20% 22.06% 18.74%
% 2011 Household Income $100,000-$124,999 7.85% 8.39% 9.53%
% 2011 Household Income $125,000-$149,999 7.35% 5.59% 6.34%
% 2011 Household Income $150,000-$199,999 14.45% 6.41% 5.03%
% 2011 Household Income $200,000-$249,999 3.36% 1.35% 1.05%
% 2011 Household Income $250,000-$499,999 .25% .49% .73%
% 2011 Household Income $500,000+ .00% .06% .07%
2011 Average Household Size 2.6 2.8 2.9
% 2011 Total Owner Occupied Housing Units 67.29% 72.93% 80.31%
% 2011 Total Renter Occupied Housing Units 32.71% 27.07% 19.69%
2011 Total Daytime Population 5,252 23,427 61,825
2011 Total Daytime Work Population 3,307 9,488 18,826
2011 Total Establishments 403 1,064 2,200
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