walmart
neighborhood
market
new construction in
dense retail corridor
1018 N. Cleveland, Enid, OK 73703
For more info on this opportunity please contact:
Zandy smith
ZEB RIPPLE
[email protected] | (415) 274-2707
CA BRE# 01734525
[email protected] | (415) 274-2702
CA BRE# 01242540
chris kostanecki
chris peters
[email protected] | (415) 274-2701
CA BRE# 01002010
Capital Pacific collaborates. Click here to meet the rest of our San Francisco team.
[email protected] | (415) 274-2703
CA BRE# 01339983
In conjunction with OK Licensed Broker:
Robert Sullivan, NAI Sullivan Group
405-840-0600 ext. 304 | [email protected]
walmart neighborhood market, currently under
construction in Enid, oklahoma
The Neighborhood Market is Walmart’s small grocery concept, which launched in 1998, giving customers a
more convenient shopping experience than the typical Walmart Supercenter.
Investment Highlights
The Supercenter is on average 160,000 square feet. In contrast, the Neighborhood Market is approximately
40,000 square feet and has a fuel center and a drive-thru pharmacy for increased convenience. Walmart’s
strategy is to open another 270 of these small-format stores and have a total of 500 operating by early 2016.
PRICE: $12,203,520
CAP: 5.00%
RENTABLE SF. . . . 41,117 SF
LEASE TYPE. . . . . . Modified NNN
PRICE PER SF. . . . $257.80
YEAR BUILT. . . . . . 2015
LAND AREA. . . . . . 5.54 Acres
lease highlights
Delivery to Walmart will be April 6th, 2015. Rent is estimated to commence May 6th, 2015.
Walmart has signed a 20-year net lease, with the tenant responsible for all triple net reimbursements except for capital replacement
items. Please see Lease Summary page for details.
10% increases in the option periods for the first two five-year option terms and 5% for the second two five-year option terms.
location highlights
Located on the Northwest corner of Cleveland Avenue and Chestnut Street. Heavily trafficked Cleveland Street connects the dense
retail corridors of Garriott Road and Willow Road.
The city plans to improve and enlarge the intersection at Cleveland and Chestnut by 2016 and they plan to convert Cleveland Street
from a 2 lane to a 4 lane boulevard by 2017.
Subject property is part of a new 50-acre residential and retail development called Stonebridge Village. The Walmart property will
be surrounded by 71 single family residential lots, a 200-unit apartment complex, and an additional 35,000 SF of multi-use tenants.
(See page 10)
Within one mile of the property are Starbucks, Ross, Hobby Lobby, Oakwood Mall, Neilson Square, DeWitt Waller Middle School,
Hoover Elementary, and Willow Plaza.
Situated in a dense residential market with over 40,000 people in a 3-mile radius and over 50,000 people within a 5-mile radius.
Vance Air Force Base is also located within 5 miles of the subject property, which the Air Force uses for specialized undergraduate
pilot training
Investment summary
The combination of the strong demographics and the new residential and retail synergy of Stonebridge Village will make Enid a
successful location for Walmart and its Neighborhood Market concept.
The location, the rare credit rating of AA-rated corporate guaranty from Walmart Stores, and the long-term net lease should make
this a successful investment.
Representative Photo
walmart neighborhood market | 2
In the News
Why Walmart Suddenly Thinks Smaller Is Better
Walter loeb - forbes - june 16, 2014
At the end of the 2014 fiscal year (January 2014), Walmart had 3285 Supercenters
in the United States that vary in size from 180,000 square feet to 230,000 square
feet. They also had 508 discount stores that were around 140,000 square feet,
smaller than the supercenters because they sell very little food. There were
also, according to Walmart’s annual report, 407 even smaller units of which
359 are the Walmart Neighborhood Market concept. These stores average
around 43,000 square foot in size and have been around since 1998. A previous
Walmart management team assured me that, while they liked the concept,
Walmart customers preferred the larger assortment in the superstores and
discount stores. Despite management’s lukewarm endorsement at that time,
every year a few more units were added.
Well, things have changed. The convenience of quick shopping has become
front and center. Today there is a real focus at Walmart on smaller stores.
Two hundred new Neighborhood Market units will open this year. That
is a tremendous ramp-up in the expansion plans–and the new Walmart
management team is suggesting there could be thousands in five years. Yikes!
Thousands! What has happened? Why now?
Two hundred new Neighborhood
Market units will open this year.
Certainly Doug McMillon, Walmart’s new CEO, wants to show domestic growth.
He is stressing that the customer wants the convenience of a quick shopping
trip to a Market Place. I can add that he probably has learned from the
omnipresence of small stores and bodegas throughout the US, and the world,
as well as the rapid expansion of Nordstrom’s Rack, that the consumer likes
small stores and it is easier to find locations for these compact units. I could
visualize entry into urban centers like New York City, Chicago, Los Angeles or
Dallas, as well as expansion into new suburban areas. The stores will be close to
where customers live and want to shop. The stores carry food, full pharmacies,
fuel, and some general merchandise.
Right now there are also twenty-one 12,000 square foot Walmart Express stores
with fresh produce, meats and dairy as well as a pharmacy. Management has
indicated that they will add 100 of these pint-size units this year. This is a fast
growing chain, and I suspect that, like rabbits these units will multiply very
quickly this decade. They are even easier to find locations for around the United
States than the larger (but still small) Neighborhood Markets.
Walmart To Go is the newest test store and that is in Bentonville, Arkansas,
Walmart’s HQ town. It is only 5,000 square feet in size and features coffee and
cold refreshments as well as snacks. It is a modified convenience store selling
fresh food, some prepared meals, some grocery, and a few general merchandise
items such as movies and seasonal items for Easter, Mother’s or Father’s Day.
The store will carry only 3,500 SKU’s (stock keeping units).
Judith McKenna former COO of ASDA is now in charge of small store rollout.
She will lead the introduction of yet another innovative idea for Walmart–a
15,000 square foot Internet grocery pick-up center. This new concept will
also be tested in Bentonville, AR and is modeled after an ASDA concept in the
United Kingdom. This drive through concept will assemble grocery orders
placed online and deliver them to cars in as many as 30 drive-up lanes.
I think the news of these new initiatives is exciting and at the same time
challenging. They will certainly create a greater competitive environment
throughout the United States. However, they will only be successful if new
supply chains are created. The new concepts have to be watched closely in
order to assure profitable growth. Walmart’s customer service in large stores
has been uneven and the rapid growth of these new concepts demand a cadre
of dedicated associates that are ready to serve customers on less bureaucratic
terms. When I saw the first Neighborhood Market stores they were truly
entrepreneurial enterprises. That has to come back.
This year, Walmart will add 115 supercenters, 35 to 40 units will be renovations
and expansions, while 75 to 80 will be new stores. That is about 17 Million
square feet of additional selling space. This is still the engine that will drive total
sales for this behemoth. It will still be the focus of the company. However, as
I analyze the competitive retail scene – the addition of 300 new small Walmart
units that will add about 1 million additional square footage of selling space.
However, Walmart is not the only retailer adding capacity to the US market. The
strength of Internet sales will be a factor pressuring stores. With the opening of
Alibaba’s 11Main.com and the announced opening of Primark in Boston in late
2015, there is much to worry about. Walmart will continue to be a competitive
leader defending its share of market, but the new competitors will create a
worrisome war-like environment in the second half of this decade.
walmart neighborhood market | 3
BUS
64
81
N Grand Avenue
N Cleveland
Street
Enid
Soccer Complex
STONEBRIDGE
VILLAGE
W Chestnut Avenue
Oklahoma
Bible Academy
Emerson
Middle School
NEILSON SQUARE
DeWitt
Waller
Middle School
Garfield
Elementary
Hoover
Elementary
412
27,400 DAILY
412
64
Enid
High School
SUNSET PLAZA
VANCE
AIR FORCE
BASE
S Van Buren Street
S Cleveland Street
S Oakwood Road
S Garland Road
OAKWOOD MALL
81
OKLAHOMA
CITY
walmart neighborhood market | 4
Income & Expense
PRICE
$12,203,520
Capitalization Rate:
5.00%
Price Per Square Foot:
$296.80
Total Rentable Area (SF):
41,117
Lot Size (Acres):
STABILIZED INCOME
5.54
Per Square Foot
Scheduled Rent
$14.84
$610,176
Effective Gross Income
$14.84
$610,176
LESS
Per Square Foot
Taxes
$0.00
Insurance
$0.00
Total Operating Expenses
$0.00
EQUALS NET OPERATING INCOME
$610,176
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as
to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
walmart neighborhood market | 5
Rent Roll
TENANT INFO
LEASE TERMS
Tenant Name
Sq. Ft.
Walmart Neighborhood Market
41,117
Totals:
41,117
Term
RENT SUMMARY
Current
Rent
Monthly
Rent
Yearly
Rent
Monthly
Rent / FT
Yearly
Rent / FT
5/6/15
5/5/35
$610,176
$50,848
$610,176
$1.24
$14.84
5/6/35
5/5/40
Option 1
$55,933
$671,194
$1.36
$16.32
5/6/40
5/5/45
Option 2
$61,526
$738,313
$1.50
$17.96
5/6/45
5/5/50
Option 3
$64,602
$775,229
$1.57
$18.85
5/6/50
5/5/55
Option 4
$67,833
$813,990
$1.65
$19.80
$610,176
$50,848
$610,176
$1.24
$14.84
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
walmart neighborhood market | 6
Lease Abstract & Critical Dates
Tenant
Wal-Mart Stores East, LP
guarantor
Wal-Mart Stores, Inc.
date of lease
November 12, 2014
delivered to Tenant
April 6, 2015
estimated rent commencement
May 6, 2015
landlord responsibilities
Landlord shall be responsible for the cost and expense of maintenance,
repair, and replacement of structural components
first right of refusal
15 Business Days
walmart neighborhood market | 7
Walmart Neighborhood Market
Representative Photo
walmart stores,
inc. was ranked #1
in fortune 500 (2013
& 2014) and #1 in
interbrand’s “most
valuable u.s. retail
brands”
About walmart neighborhood market
Walmart Neighborhood Market is a chain of grocery stores launched
by Walmart in 1998. With over 350 Neighborhood Markets in the
United States, they feature a wide variety of products, including fresh
produce, deli foods, fresh meat and dairy items, health and beauty
aids, one-hour photo and traditional photo developing services,
drive-through pharmacies, stationery and paper goods, pet supplies,
and household chemicals. Walmart Neighborhood Markets were
originally designed to create easier parking, less crowded aisles, and
quicker checkouts than Walmart Supercenters.
NUMBER OF locationS
11,000+
FISCAL YEAR 2014 SALES
$476 BILLION
S&P RATING
AA
Walmart is the world’s biggest retailer and also the largest employer
with over 2.2 million full- and part-time workers worldwide, including
more than 1.4 million in the U.S. Walmart is a feared giant for its sheer
size and pricing power. With more than $469 billion in total revenues,
Walmart is known for its low pricing and wide selection of goods.
The company has 11,302 stores under 71 banners in 27 countries,
and ecommerce Websites in 10 countries. Walmart has become
the undisputed king of retailing and is ranked #1 in Fortune 500
Companies.
walmart neighborhood market | 8
Site Plan
Site Plan Key
Parcel outline:
Land Area:
5.54 acres
N Cleveland Street
Building Area: 41,117 sf
NOT A PART
W Chestnut Avenue
Site Plan Not To Scale
walmart neighborhood market | 9
Neighborhood Site
Stonebridge Village
Walmart Neighborhood market is part of a new 50-acre residential and retail development called Stonebridge Village. Stonebridge Village will be a
combination of commercial, single family residential, and upscale multi-family residential properties with a six-acre lake setting in the middle for all
to enjoy. These three areas (including the lake) will cover fifty acres in a village setting where people can LIVE-WORK-PLAY. Plans for the lake include
a walking trail around it with beautiful landscaping, creating a park-like feel. The 15-acre upscale and gated multi-family apartment complex will have
access to the lake from the west side of Cleveland. It will also feature 1-2 and 3 bedroom apartments, a swimming pool, club house, and covered parking.
The 16-acre commercial site will provide approximately 75,000 sq. ft. of multi-use tenants including the subject property. Other planned tenants will be
a medical facility, a strip center for multiple stores including a meat specialty shop, office complex buildings, and a restaurant on the corner of Chestnut
and Cleveland. Access to this area will be from Chestnut and Cleveland entrances and exits with ample parking spaces and landscaping.
The 17-acre single family residential area will include 71 lots and 24 lots, which will be a minimum of 10,000 sq. ft. and will have protective covenants
including minimum 1,800 sq. ft. homes.
The City of Enid has approved plans to enlarge and improve the intersection at Cleveland & Chestnut, this construction will begin around early 2016. The
city has also planned to convert Cleveland to 4-lanes from the intersection to the railroad track with a boulevard; this construction should commence
closer to 2017.
walmart neighborhood market | 10
Photos
Drive -thru
Pharmacy
surrounding retailers
walmart neighborhood market | 11
Regional Map
Traffic counts in excess
of 27,400 vpd on
HWY 60
walmart
neighborhood
market
W Chestnut Ave
N Cleveland St
enid
1 Hour
55 Miles
Oklahoma City
walmart neighborhood market | 12
Location & Demos
Enid, ok Overview
Enid is the county seat of Garfield County, Oklahoma. As of the 2010
census, the population was 49,379, making it the ninth largest city in
the state.
The main highways serving the city are Highway 81 and Highway 412.
Enid feeds into Route 66 from the north via Route 64. Enid Woodring
Regional Airport is located four miles southeast of Enid.
The economy of Enid is diverse but its foundation is the oil and
gas industry and agriculture. It holds the nickname “Queen Wheat
City” and “Wheat Capital” of Oklahoma and the United States for its
immense grain storage capacity (it has the third largest grain capacity
in the world).
Enid has also been featured in various films, novels, and songs. Enid
was ranked the 28th best place in the country to raise a family in a
Reader’s Digest poll and was listed as one of the top 25 small cities in
the country to do business in.
Population
1-Mile
3-Mile
5-Mile
2010
6,048
39,873
50,808
2014
6,110
40,616
51,730
2019
6,320
42,323
53,873
1-Mile
3-Mile
5-Mile
Average
$59,447
$57,758
$55,486
Median
$42,766
$40,647
$39,452
2013 Household incomes
Top Employers in enid
Employer
Advance Pierre Food Company
Vance Air Force Base
INTEGRIS Bass Baptist Health Ctr
Enid Board of Education
# of Employees*
4,000
2,600
1,500
1,000
*Approximate
walmart neighborhood market | 13
A unique HUMAN
RESULTS-DRIVEN
client experience
Zandy smith
The capital pacific experience - our daily commitment to our clients
[ www.CapitalPacific.com ]
ZEB RIPPLE
[email protected] | (415) 274-2707
CA BRE# 01734525
[email protected] | (415) 274-2702
CA BRE# 01242540
chris kostanecki
chris peters
[email protected] | (415) 274-2701
CA BRE# 01002010
In conjunction with OK Licensed Broker:
Bob Sullivan, Urban Commercial Realty, LLC
(561) 655-0066 | [email protected]
[email protected] | (415) 274-2703
CA BRE# 01339983
Copyright © 2015 [Capital Pacific Real Estate Brokerage Company]
OKLAHOMA REAL ESTATE COMMISSION
DISCLOSURE TO SELLER OR BUYER OF BROKERAGE DUTIES, RESPONSIBILITIES AND SERVICES
This notice may be part of or attached to any of the following:
Buyer Brokerage Agreement
Listing Brokerage Agreement
Sales Agreement
Exchange Agreement
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□
□
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Option Agreement
Other _______________________
1. Duties and Responsibilities. A Broker who provides Brokerage Services to one or both parties shall describe and disclose
in writing the Broker’s duties and responsibilities prior to the party or parties signing a contract to sell, purchase, option, or exchange
real estate.
A Broker shall have the following duties and responsibilities which are mandatory and may not be abrogated or waived by a
Broker, whether working with one party, or working with both parties:
A. treat all parties to the transaction with honesty and exercise reasonable skill and care;
B. unless specifically waived in writing by a party to the transaction:
1)
receive all written offer and counteroffers;
2)
reduce offers or counteroffers to a written form upon request of any party to a transaction; and
3) present timely all written offers and counteroffers.
C. inform, in writing, the party for whom the Broker is providing Brokerage Services when an offer is made that the party will be
expected to pay certain closing costs, Brokerage Service costs and the approximate amount of the costs;
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shall not be disclosed by a Broker without the consent of the party disclosing the information unless consent to the
disclosure is granted in writing by the party or prospective party disclosing the information, the disclosure is required
by law, or the information is made public or becomes public as the result of actions from a source other than the
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confidential in a transaction:
1) that a party or prospective party is willing to pay more or accept less than what is being offered,
2) that a party or prospective party is willing to agree to financing terms that are different from those offered,
3) the motivating factors of the party or prospective party purchasing, selling, optioning or exchanging the
property, and
4) information specifically designated as confidential by a party unless such information is public.
G. disclose information pertaining to the Property as required by Residential Property Condition Disclosure Act;
H. comply with all requirements of the Oklahoma Real Estate Code and all applicable statutes and rules;
I.
when working with one party or both parties to a transaction, the duties and responsibilities set forth in this
section shall remain in place for both parties.
2. Brokerage Services provided to both parties to the transaction. The Oklahoma broker relationships law (Title 59, Oklahoma
Statutes, Section 858-351 – 858-363) allows a real estate Firm to provide brokerage services to both parties to the transaction. This
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3. Broker providing fewer services. If a Broker intends to provide fewer Brokerage Services than those required to complete a
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I understand and acknowledge that I have received this notice on _________ day of ____________________, 20______.
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This form was created by the Oklahoma Real Estate Contract Form Committee and approved by the Oklahoma Real Estate Commission
OREC DISCLOSURE TO SELLER OR BUYER OF DUTIES AND RESPONSIBILITIES (11-2013)