The Pines Mall. Value add opportunity in Pine bluff, AR 2901 Pines Mall Dr, Pine Bluff, AR For more info on this opportunity please contact:

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1 The Pines Mall Value add opportunity in Pine bluff, AR 2901 Pines Mall Dr, Pine Bluff, AR For more info on this opportunity please contact: JOHN ANDREINI (415) CA BRE# RICK SANNER (415) CA BRE# Capital Pacific collaborates. Click here to meet our whole team. BOB SANNER (415) CA BRE# CHRIS KOSTANECKI (415) CA BRE#

2 The Story MAJOR VALUE ADD MALL WITH SIGNIFICANT UPSIDE IN REGIONAL HUB ARKANSAS MARKET OWNED RENTABLE SF ,577 SF PRICE PER SF $16.23 OWNED LAND AREA /- 40 Acres LEASE TYPE Varied YEAR BUILT PRICE: $5,400,000 CAP: 11% Investment Highlights Pine Bluff Mall is a regional mall, located off US 65 South. Anchored by Dillard s (NAP), JC Penny(NAP), Carmike Cinemas, and Sears, the property was originally owned by General Growth Properties. While owned by General Growth, Walmart vacated the premises, which posed a setback. (Walmart still has 25 years left of CAM reimbursement payments.) From there, General Growth went into bankruptcy and the property was taken over by national mall owners who have turned the mall around, with significant occupancy growth in the shop space over the last 3 years. JC Penney underwent a remodel in 2013, exhibiting their commitment to the site; Sears exercised their option one year early; gaming revenues have increased steadily on an annual basis and a some of the local tenants have experienced successes that have allowed them to open additional businesses within the mall. With 144,400 square feet of remaining vacancy, there is still plenty of upside opportunity for a new operator to capitalize on the improving marketplace by continuing to lease up the property. In addition, there are 3 pad sites totaling approximately 6 acres, which are included in this sale. Pine Bluff Mall is an opportunity for an investor to take over management of the property and continue the stabilization trend by securing new tenants.

3 Aerial 65 JEFFERSON COUNTY 65 JEFFERSON COUNTY 530 JEFFERSON COUNTY LITTLE ROCK BUS Pine Bluff High School Ohio Street ScogginsMay Hall School 65 W 6th Avenue S Main Street ,200 DAILY Belair Middle School Indiana Street Elementary E Harding Avenue 190 E Harding Avenue 79 NOT PART OF SALE 00 rive ll D Ma LY es Pin AI Southeast Middle School D ,8 BUS THE PINES MALL S Olive Street W Harding Avenue BUS 63 Broadmoor Elementary BUS 63 BUS THE PINES MALL 3

4 Rent Roll TENANT INFO LEASE TERMS CURRENT RENT RENT INCREASES PERCENTAGE RENT PERCENTAGE RENT Tenant Name Suite Size % of SF Occupancy Date Lease Expiration Monthly Rent Rent/SF/YR Date of Increase JC Penney (NAP)* A 85, % 10/25/86 7/25/36 $0.00 The dates to the right are for the operating agreement for CAM's Dillards (NAP)* B 100, % 07/26/86 07/25/36 $0.00 The dates to the right are for the operating agreement for CAM's Sears D 69, % 10/17/90 10/16/16 $6, $1.16 Monthly Base Rent Monthly Yearly KFC(NAP)* 0.0% 11/01/99 10/31/49 $0.00 Red Lobster (NAP)* 4, % 07/25/36 $0.00 The dates to the right are for the operating agreement for CAM's Hibbett Sports 20 10, % 10/28/00 09/30/16 $6.66 $5, J McCree Salon 112 1, % 02/01/14 MTM $ $5.95 The Shoe Dept , % 4/20/11 1/31/21 $8,400 $4.87 $4, Rogers Jewlery 201 1, % 09/03/86 01/31/16 $7, $ /1/15 Journeys 206 1, % 10/17/98 MTM $0.00 $ Rainbow 210 7, % 11/05/07 01/31/18 $2.44 2/1/15 $1, GNC 226 1, % 5/1/96 1/31/17 $1, $8.06 $3, Bath Body Works 229 2, % 10/24/97 01/31/15 $26.92 Footaction 316 6, % 02/10/97 01/31/16 $8.49 Pines 8 Plex 20, % 11/27/96 01/31/16 $4.76 $5, $4, $8, 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. THE PINES MALL 4

5 Rent Roll Shangai Express % 7/1/88 3/31/15 $900 $20.65 The U Shop % 06/01/12 05/31/16 $ $14.00 Laser 328 4, % 12/01/13 11/30/15 $ $1.47 June/Dec 2014 Jack and Jill 331 6, % 04/07/12 04/30/14 $1, $2.38 $ ATM KSK 0.0% 05/01/12 04/30/15 $ $0.00 Cal Nails % 04/01/12 04/01/15 $ $7.38 MB Cell 115 1, % 7/31/16 $1, $9.60 In Style 218 2, % 09/01/11 7/31/16 $ $2.56 9/1/12 Regency Jewlers 304 1, % 04/06/07 MTM $1, $8.76 Andersons Taekwondo 336 5, % 03/01/11 03/31/17 $ $1.44 yearly Popcorn & More % 08/01/13 07/31/18 $ $ /1/12 Mexican Grill % 10/01/08 MTM $ $9.92 8/1/16 New York Pizza % 02/01/11 MTM $ $14.65 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. THE PINES MALL 5

6 Rent Roll Walmart (NAP) C 85, % 07/12/86 02/28/04 $0.00 Office % This is the manager' s office Studio % 08/01/04 05/01/15 $ $0.00 Pine Bluff Police % Other Revenue Perfume 214 2, % 10/14/13 12/31/14 $ $3.21 Feb/August Party Pizzazz 334 1, % 10/01/12 09/30/22 $0.77 $ Eye Brow % 12/10/12 12/31/14 $1, $14.55 Hotel 42, % $0.00 Garfields 720 4, % 08/23/13 08/31/23 $29.77 $11, EcoATM 0.0% 5/1/14 4/30/15 $ Other Revenue Games 0.0% $3, Vacant 144, % Comments: There are a total of 45 vacant units Totals: 645, % $41, $0.77 $36,556 $7, Total Occupied Square Footage 500,669 78% Occupied & Owned Square Footage 332,577 Leasable Square Footage 645, % $0 Owned Vacancy 44% *Not a part of the sale 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. 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. THE PINES MALL 6

7 Reimbursements CAMs Property Taxes Insurance Water & Sewer Electric Trash Other Tenant Name Pro Rata % Fee Collected Pro Rata % Fee Collected Pro Rata % Fee Collected Pro Rata % Fee Collected Pro Rata % Fee Collected Fee % Fee Collected Fee % Fee Collected Expense Totals $640,100 $42,100 $75,000 $0 $0 JC Penney (NAP)* , Dillards (NAP)* , Sears (NAP)* , KFC(NAP)* , Red Lobster (NAP)* , Hibbett Sports , J McCree Salon The Shoe Dept , Rogers Jewlery , , Journeys , Rainbow , GNC Bath Body Works , Footaction , Pines 8 Plex , Shangai Express The U Shop Laser , Jack and Jill ATM Cal Nails MB Cell In Style Regency Jewlers Andersons Taekwondo Popcorn & More Mexican Grill 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. THE PINES MALL 7

8 Reimbursements New York Pizza Ruby Jewelers Walmart , Office Cook's Perfume Party Pizzazz Eye Brow , Hotel , Garfields , , EcoATM Other Revenue Games TOTAL , , , 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. THE PINES MALL 8

9 Income & Expense PRICE $5,400,000 Capitalization Rate: 11.00% Price Per Foot: $16.24 Square Footage: 332,577 NET OPERATING INCOME SUMMARY Plus: SCHEDULED INCOME Per SF Scheduled Rent: $0.77 $500,046 Plus: 95% of 2013 Percentage Rent $423,678 Plus: Expense Reimbursement Budgeted $0.83 $533,481 Equals: Scheduled Gross Income $2.26 $1,457,206 Proforma Vacancy Actual $0 Equals: Effective Gross Income (EGI) $2.26 $1,457,206 Less: OPERATING EXPENSES Per SF CAMS Property Taxes 2013 Actual $0.13 $44,121 Other Taxes 2013 Actual $0.01 $2,062 Insurance 2013 Actual $0.23 $75,000 Utilities 2013 Actual $0.86 $284,500 Landscaping 2013 Actual $0.09 $31,000 Administrative Expenses 2013 Actual $0.28 $91,625 Management Fee (4%) 2013 Actual $0.18 $58,288 Advertising 2013 Actual $0.01 $3,000 Safety Services 2013 Actual $0.26 $85,000 Repairs & Maintenance Budgeted $0.51 $170,500 Reserves (10% of R&M) Budgeted $0.05 $17,050 Total Operating Expenses $2.54 ($862,146) Equals: NET OPERATING INCOME $595,059 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. THE PINES MALL 9

10 Tenants Sears Sears Holdings Corporation (NASDAQ: SHLD) is a leading integrated retailer with more than 2,400 fullline and specialty retail stores in the United States and Canada and the home of Shop Your Way, a social shopping experience where members have the ability to earn points and receive benefits across a wide variety of physical and digital formats through shopyourway.com and mobile apps. Sears Holdings is the leading home appliance retailer as well as a leader in tools, lawn and garden, fitness equipment and automotive repair and maintenance. Sears is the nation s largest provider of home services, with more than 13 million service and installation calls made annually. Bath & Body Works Bath & Body Works is one of the leading specialty retailers of personal care products and home fragrances and through their 1,553 retail locations and online sales, net sales were $581.6 as of May 3, Bath & Body Works is an American retail store under the Limited Brands umbrella. L Brands, through Victoria s Secret, Pink, Bath & Body Works, La Senza and Henri Bendel, is an international company that sells lingerie, personal care and beauty products, apparel and accessories. The company operates more than 2,600 specialty stores in the United States, and its brands are sold in more than 680 company-owned and franchised additional locations worldwide. Regis Salon Nearly ten times larger than its nearest competitor, Regis Corporation is a Fortune 1000 company and the global leader in hair services and products. Regis currently operates approximately 10,000 hair salons and related businesses which serve over 160 million customers each year. Regis corporate and franchise locations operate under concepts such as Supercuts, Sassoon Salon, Regis Salons, MasterCuts and SmartStyle. In addition, Regis also maintains ownership interests in Roosters Men s Grooming Center and Empire Education Group in the U.S. as well as MY Style concepts in Japan. GNC GNC Holdings, Inc., headquartered in Pittsburgh, PA, is a leading global specialty retailer of health and wellness products, including vitamins, minerals, and herbal supplement products, sports nutrition products and diet products, and trades on the New York Stock Exchange under the symbol GNC. As of December 31, 2013, GNC has more than 8,500 locations, of which more than 6,300 retail locations are in the United States. This includes 1,012 franchise and 2,215 Rite Aid franchise store-within-a-store locations and franchise operations in more than 50 countries. THE PINES MALL 10

11 Journeys Journeys is a leader in the teen specialty retail scene, with more than 800 stores in all 50 states, Puerto Rico and Canada. In 2012, Journeys reached $1 billion in sales. Journeys uses fashion savvy and merchandising science to keep in step with the fast-paced footwear and accessories market for 13 to 22-year-old guys and girls. Journeys offers a wide variety of trendy, relevant brands that cater to teens that seek the hottest, new styles. However, the Journeys store is more than a retail environment -- it s an extension of the teen lifestyle. The Shoe Dept. Founded in 1960 in Kannapolis, NC, SHOE SHOW, INC. s success has been based on a simple formula of providing quality products, service and value. Over the past fifty-three years SHOE SHOW, INC. has continued to grow with stores named SHOE SHOW, SHOE DEPT. and Burlington Shoes. Currently SHOE SHOW, INC. has 1127 locations in 38 states. Rogers Jewelers Gitanjali Retail USA, The Company, a part of the DeBeers site holder company (Digicogroup.com), operates 110 jewelry stores in 22 states across the USA under the brands of Samuels Diamonds, Samuels Jewelers, Schubach Jewelers, Rogers Jewelers and Andrews Jewelers. They have 74 Samuels, Schubach and Samuels Diamonds stores and State 39 Rogers Jewelers and Andrews Jewelers stores throughout the 22 states. Samuels Jewelers, Samuels Diamonds, Schubach Jewelers, Rogers Jewelers and Andrews Jewelers sell contemporary and uniquely styled fine jewelry in a quality shopping environment targeting customers who desire an upscale shopping experience. They strive to provide the best value in terms of merchandise quality, price, selection, and satisfaction delivered by knowledgeable associates empowered to exceed the customer s expectations. Footaction Footaction is a Foot Locker, Inc. brand. Foot Locker In. is a top performer in the athletic shoe market with a net income of $429 million in 2013 and total sales of $6.5 billion. Footaction is a national athletic footwear and apparel retailer. The primary customers are young males that seek street-inspired athletic styles. Its 319 stores are located throughout the United States and Puerto Rico and focus on marquee footwear and branded apparel. The Footaction stores have an average of 2,900 selling square feet. THE PINES MALL 11

12 Mall Layout (NAP) (NAP) THE PINES MALL 12

13 Lease Plan THE PINES MALL 13

14 Inside Photos THE PINES MALL 14

15 Outside Photos THE PINES MALL 15

16 Area Retail THE PINES MALL 16

17 Regional Map Pine Bluff, AR Location TRAFFIC COUNTS IN EXCESS OF 9,800 VPD ON E HARDING AVE THE PINES MALL Little Rock Pine Bluff THE PINES MALL 17

18 Location & Demos PINE BLUFF, AR OVERVIEW Pine Bluff is situated in the southeast section of the state in the Arkansas Delta, just 42 miles from Little Rock, Arkansas. Pine Bluff is known for its rich agricultural location in the Arkansas River Basin. Principal industries in the area are cotton processing; production of cottonseed oil, paper and wood products; the manufacturing of wire products; poultry processing; the manufacturing of electric transformers; and metal fabrication. More than 80 manufacturing industries call Pine Bluff home including: International Paper, Evergreen Packaging, Tyson Foods, and Union Pacific Railroad. POPULATION 1-Mile 3-Mile 5-Mile ,101 18,327 38, ,018 17,780 37, HOUSEHOLD INCOMES 1-Mile 3-Mile 5-Mile Average $40,180 $36,773 $56,757 Pine Bluff is home to the University of Arkansas, Pine Bluff campus. It is the second oldest land-grant institution in the state of Arkansas. The campus offers curriculum of Certificate and Associates degree programs, more than thirty Undergraduate programs, Master s degree programs and a Doctorate program. Central to the community s role as a regional health-care center is the 471-bed Jefferson Regional Medical Center (JRMC). JRMC has been designated as a level 2 facility in the new statewide trauma system currently under development. Other hospital components include the Arkansas Cancer Institute, Jefferson Professional Centers I and II and JRMC Heart Center. Moreover, the Pine Bluff Convention Center is the stat s largest meeting facility. The 90,000-square-foot Center makes it one of the top conference destinations in the area. TOP EMPLOYERS IN PINE BLUFF Employer Tyson Foods 1,925 Jefferson Regional Medical Center 1,850 U.S. Army 1,490 THE PINES MALL 18

19 A unique HUMAN RESULTS-DRIVEN client experience [ ] THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS For more info on this opportunity please contact: JOHN ANDREINI jandreini@capitalpacific.com (415) CA BRE# RICK SANNER rsanner@capitalpacific.com (415) CA BRE# BOB SANNER bsanner@capitalpacific.com (415) CA BRE# CHRIS KOSTANECKI ck@capitalpacific.com (415) CA BRE# Copyright 2014 [Capital Pacific Real Estate Brokerage Company] THE PINES MALL 19