offering memorandum - stan johnson...

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Offering Memorandum

The Vitamin Shoppe 2408 West Memorial Road | Oklahoma City, OK 73134

Actual Location

Houston Office | 832-476-3440

Confidential DisclaimerThis Confidential Memorandum has been prepared by Stan Johnson Company (“SJC”) and is being furnished to you solely for the purpose of your review of the commercial property located at 2408 West Memorial Road, Oklahoma City, OK 73134 (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of Stan Johnson Company (“Broker”).

By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to SJC as soon as practicable together with all other materials relating to the Property which you may have received from SJC; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of SJC.

This Confidential Memorandum has been prepared by SJC, based upon certain information pertaining to the Property and any information obtained from SJC to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by SJC to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluating this offering without reliance upon SJC, the Broker or any of their respective affiliates or any of the information set out in the Materials. Neither SJC, the Broker, nor any of their respective affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred.

SJC, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. The terms and conditions described herein are subject to change without notice.

This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of security. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum you agree to release SJC and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. SJC reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time.

Offered Exclusively By

Brett Butler | Senior Director [email protected]

Andrew Peeples | Director [email protected]

Jeff Jackson | Associate Director [email protected]

Neal Maranuk | Analyst [email protected]

In association with Ryan Butler | Senior Director

OK Lic. #145949

Stan Johnson Company 10333 Richmond Ave. | Suite 740

Houston, Texas 77042 P: 832.476.3440 | F: 832.476.3449

http://www.stanjohnsonco.com

Houston Office | 832-476-3440THE NET LEASE AUTHORITY®

Excellent Tenant - As of March 28, 2015, The Vitamin Shoppe Industries, Inc. reported total revenues of $973 million, a net income of $47 million, and a net worth in excess of $565 million year to date. The Vitamin Shoppe has seen a 5.40% increase in gross revenue year over year, with plans to open 100 locations by the end of 2015.

Long Term Lease & Rent Increases - Nine (9) years remaining on a ten (10) year lease with two (2), five (5) year renewal options and 10% rent increases every five (5) years.

Strong Demographics - The subject Property features an average household income of $76,772 within a five-mile radius.

Strategic Location - The Property is located on a Lowes pad site and is directly adjacent to the entrance of Quail Springs Mall, a 1.1 million square foot regional shopping mall. Major tenants in the area include; Macy’s, Dillards, Sears, JCPenney, Ross, Ulta, Office Depot, UPS, and IHOP among many others.

New Construction - The Property was recently completed in 2014

Excellent Visibility and Access – Located at the intersection of Memorial Road and Highland Park Boulevard, with estimated traffic flow of approximately 29,000 vehicles per day. The Property also has strategic access to John Kilpatrick Turnpike which observes over 33,000 VPD.

Stan Johnson Company is pleased to offer for sale to qualified investors, an attractive retail property located in Oklahoma City, OK. Oklahoma City is the capital and the largest city in the state of Oklahoma, with an MSA exceeding 1.3 million people.

The Property is currently 100% leased to The Vitamin Shoppe with nine (9) years remaining on a ten (10) year lease including two (2), five (5) year renewal options. The lease features 10% rent increases every five (5) years, including option periods.

The subject Property is located just minutes from downtown Oklahoma City. Nearby tenants include Macy’s, Dillards, Sears, JCPenney, Ross, Ulta, Office Depot, UPS, and IHOP among many others.

Purchase Price $1,875,000

Cap Rate 5.60%

Representative Photo

Actual Location

Investment Highlights



Lease Abstract

2408 West Memorial Road Oklahoma City, OK 73134Tenant The Vitamin Shoppe

Guarantor Vitamin Shoppe Industries, Inc. (NYSE: VSI)

Rentable SF +/- 3,000 SF

Land Size +/- .48 Acres

Year Built 2014

Rent Commencement

November 1, 2014

Term Expiration October 31, 2024

Annual Rent $105,000

Lease Term Remaining

Nine (9) years

Rent Increases 10% every five (5) years

Renewal Options Two (2), five (5) year options

Expenses NN - Landlord responsible for roof, parking and structure



Tenant OverviewThe Vitamin Shoppe (Vitamin Shoppe Industries, Inc.) (NYSE:

VSI) is a New Jersey-based retailer of nutritional supplements with 500 locations in 37 states. It offers vitamins, minerals, herbs, and homeopathic remedies; specialty supplements, sports nutrition and weight management products, as well as natural bath and beauty, pet supplements, and options for a home. The company sells its products under its Vitamin Shoppe, BodyTech, True Athlete, and Optimal Pet brands. Vitamin Shoppe sells its products through its retail stores, mail order catalogs, and Internet, primarily at vitaminshoppe.com.

As of March 28, 2015, it operated approximately 700 company-owned retail stores under The Vitamin Shoppe, Super Supplements, and Vitapath retail banners, as well as sells its products through mail order catalogs and Internet, primarily at vitaminshoppe.com and supersup.com. The company was formerly known as VS Holdings, Inc. and changed its name to Vitamin Shoppe, Inc. in November 2009. Vitamin Shoppe, Inc. was founded in 1977 and is headquartered in North Bergen, New Jersey.

As of March 28, 2015 the company reported total revenues of $973 million, a net income of $47 million, a net worth in excess of $565 million and a market cap of $1.37 billion year to date. The company has a BBB/Stable S&P credit rating.

TENANT PROFILE

Company: Vitamin Shoppe, Inc.

NYSE Ticker: VSI

Tenant Business: Retail

Founded: 1988

Number of Locations: 1,000

Total Revenue: $973 million

Net Income: $47 million

Net Worth: $565 million

Market Cap: $894 million

Headquarters: McLean, Virginia

Website: www.capitalone.com





Location OverviewOklahoma City is the capital and largest city of the State of Oklahoma. The county seat of Oklahoma County, the city ranks 27th among United States cities in population. The population grew following the 2010 Census, with the population estimated to have increased to 610,613 as of July 2013. As of 2013, the Oklahoma City metropolitan area had a population of 1,319,677, and the Oklahoma City-Shawnee Combined Statistical Area had a population of 1,390,835 residents, making it Oklahoma’s largest metropolitan area. Oklahoma City’s city limits extend into Canadian, Cleveland, and Pottawatomie counties, though much of those areas outside of the core Oklahoma County area are suburban or rural (watershed). The city ranks as the eighth-largest city in the United States by land area (including consolidated city-counties; it is the second-largest city in the United States by land area whose government is not consolidated with that of a county).

Oklahoma City features one of the largest livestock markets in the world. Oil, natural gas, petroleum products and related industries are the largest sector of the local economy. The city is situated in the middle of an active oil field and oil derricks dot the capitol grounds. The federal government employs large numbers of workers at Tinker Air Force Base and the United States Department of Transportation’s Mike Monroney Aeronautical Center (these two sites house several offices of the Federal Aviation Administration and the Transportation Department’s Enterprise Service Center, respectively).

Oklahoma City is on the I-35 Corridor as one of the primary travel corridors into neighboring Texas and Mexico. Located in the Frontier Country region of the state, the city’s northeast section lies in an ecological region known as the Cross Timbers. The city was founded during the Land Run of 1889, and grew to a population of over 10,000 within hours of its founding.

OKC Natiaonal Memorial

Downtown Oklahoma City, OK

Oklahoma State Capitol Building OKC Gold Star Memorial Building

OKC Skydance Bridge



JOHN KILPATRICK TPKE (33,502 VPD)

N PEN

NSYLVA

NIA

AVE (2,222 V

PD)

QUAIL SPRINGS MALL

HIG

HLA

ND

PARK BLV

D (5,259 V

PD)

W MEMORIAL RD (29,219 VPD)



Demographics

2408 West Memorial Road | Oklahoma City, OK 73134 0-1 Mile % 0-3 Miles % 0-5 Miles %

Population

2019 Projection 14,871 76,594 172,826

2014 Estimate 13,293 69,866 159,556

2010 Census 11,746 63,545 147,300

2000 Census 8,173 49,307 123,840

Growth 2000 - 2010 43.71% 28.88% 18.94%

Growth 2010 - 2014 13.17% 9.95% 8.32%

Growth 2014 - 2019 11.87% 9.63% 8.32%

Households

2019 Projection 8,154 33,289 73,360

2014 Estimate 7,353 30,639 68,008

2010 Census 6,579 28,266 63,222

2000 Census 4,228 22,286 52,458

Growth 2000 - 2010 55.62% 26.83% 20.52%

Growth 2010 - 2014 11.76% 8.39% 7.57%

Growth 2014 - 2019 10.90% 8.65% 7.87%

2014 Est. Population by Single Classification Race 13,293 69,866 159,556

White Alone 7,139 53.70 43,942 62.89 110,359 69.17

Black or African American Alone 4,106 30.89 15,097 21.61 25,667 16.09

American Indian and Alaska Native Alone 274 2.06 1,509 2.16 3,832 2.40

Asian Alone 515 3.87 3,532 5.06 6,760 4.24

Native Hawaiian and Other Pacific Islander Alone 23 0.17 75 0.11 187 0.12

Some Other Race Alone 383 2.88 1,849 2.65 4,056 2.54

Two or More Races 853 6.42 3,862 5.53 8,695 5.45

2014 Est. Average Household Income $50,505 $72,808 $76,722

2014 Est. Median Household Income $33,116 $52,107 $55,737


Brett Butler | Senior Director [email protected]

Andrew Peeples | Director

[email protected]

Jeff Jackson | Associate Director [email protected]

Neal Maranuk | Analyst [email protected]

In association with Ryan Butler | Senior Director

OK Lic. #145949

Stan Johnson Company

10333 Richmond Ave | Suite 740 Houston, Texas 77042

P. 832.476.3440 | F. 832.476.3449

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