FAYETTEVILLE, NCMcArthur Road422
424426
OFFICE/FLEX SPACE AVAILABLE FOR SALE | 28,539 SF
COLLIERS INTERNATIONAL | 2
422, 424, & 426McArthur Road
Colliers International, on behalf of the owner, is pleased to exclusively offer the opportunity to purchase 422 McArthur Road, located in Fayetteville, NC. The subject property is a 28,539 SF, two-story office/flex building. It is currently 76% occupied allowing a buyer an excellent “value-add” opportunity. It was built in 2011 by a local HVAC owner/operator. Unfortunately, the owner has passed and that has left his 6,800 SF space vacant. The building includes many long-term tenants including Edwards Jones, Carolina Counseling, and Crossfit. The vacancy allows the new owner to lease up space and add significant rental income and value to the property.
ExecutiveSummary
Address 422, 424, 426 McArthur Road, Fayetteville, NC 28311
Square Feet ±28,539SF
Acreage 1.43 Acres
Floors 2
Parking 37 spaces
Year Built 2011 (Renovated in 2019)
2020 NOI Projected $ 76,356
TenantEdward Jones, Carolina Counseling, Fantastic Sams Office, RDL Therapeutic, Crossfit
SITE
MCARTHUR ROADMCARTHUR ROAD
COLLIERS INTERNATIONAL | 3
422, 424, & 426McArthur Road
Investment OverviewMULTI TENANT Edward JonesCrossfitCarolina CounselingRDL TherapeuticFantastic Sam’s LOCATION 422, 424, 426 McArthur Road, Fayetteville, NC
COUNTY Cumberland
BUILDING SIZE 28,539 SF
ACREAGE 1.43
Investment Highlights• 23% vacant allowing instant upside by leasing one space.
• Owner recently spent on building improvements
• 1.5 miles from Interstate 295, 1 mile from route 401
• Long term tenants in occupied space
NOI $76,356
PRO FORMA NOI $ 183,356
YEAR BUILT 2011
LISTING PRICE $1,750,000
COLLIERS INTERNATIONAL | 4
422, 424, & 426McArthur Road
Building Description
Located on McArthur Road, near Ramsey Street.
Location: 422, 424, 426 McArthur Road Fayetteville, NC 28311
Building: ±28,539 SF | 2 floors
Acreage: 1.43 acres
Year Built: 2011
Tax Info: PIN # 0439-49-3340 – Cumberland County, NC
Construction: Masonry
1830 Hillandale Road
SITE
MCARTHUR ROADMCARTHUR ROAD
COLLIERS INTERNATIONAL | 5
422, 424, & 426McArthur Road
FinancialsINCOME
SF LEASE START LEASE END MONTHLY ANNUAL OPTIONSEdward Jones 1,163 Dec-11 Feb-22 $1,938 $23,260 NoneFantastic Sam's 850 18-Oct Sep-21 $1,650 $19,800 Two 3-year options, 6% increasesCarolina Counseling 2,800 Aug-19 Jul-21 $2,128 $25,530 None
RDL Therapeutic 2,720 Nov-17 Oct-22 $2,884 $34,608 One 5-year option, 3% increases every 2 years
Crossfit 10,350 Nov-17 Oct-22 $4,992 $59,904 One 5-year option, 4% increases every 2 years
Vacant 6,800 0Total 28,539 $163,102
SITE
MCARTHUR ROADMCARTHUR ROAD
EXPENSESManagement $7,560 Maintenance $24,630 Utilities $16,814 Taxes $26,406Insurance $11,000Total $86,410
NOI $76,356Pro Forma NOI $183,356Cap Rate 4.36%Pro Forma Cap Rate 10.48%
INCOME $162,766
COLLIERS INTERNATIONAL | 6
422, 424, & 426McArthur Road
Recent Building RenovationsPARKING LOTResurfaced and striped July 2018 ($4,600)
REPAINTING2nd floor and common areas downstairs ($500) SECURITY CAMERASUpgraded June 2018 ($1,600)
SIDEWALK AND RETAINING WALLAdded behind Crossfit June 2018 ($10,500)
FIRE DOOR & EXIT LIGHTRDL added June 2018 ($1,680)
NC CODE UPGRADES DUE TO CHANGE OF USE (RDL)Additional emergency/exit lighting, medical grade electrical wiring, fresh air damper, fire rated wall added between RDL & Crossfit ($24,500)
NC CODE UPGRADES DUE TO CHANGE OF USE (CROSSFIT)Includes additional exhaust venting, brought in outside air, rework HVAC penetrations for firewall, added more emergency/exit lighting, ADA upgrades for bathrooms ($34,000 upon completion)
1830 Hillandale Road
SITE
MCARTHUR ROADMCARTHUR ROAD
COLLIERS INTERNATIONAL | 7
422McArthur RoadFloor Plan
Main Building
COLLIERS INTERNATIONAL | 8
422McArthur RoadFloor Plan
Main Building (First Floor)
±1,158 SF
±422 SF
COLLIERS INTERNATIONAL | 9
422, 424, 426McArthur RoadFloor Plan
Crossfit
COLLIERS INTERNATIONAL | 10
422, 424, 426McArthur RoadFloor Plan
RDL
COLLIERS INTERNATIONAL | 11
422, 424, & 426McArthur Road
Property Aerial
SITE
MCARTHUR ROADMCARTHUR ROAD
COLLIERS INTERNATIONAL | 12
422, 424, & 426McArthur Road
Interior Photos
COLLIERS INTERNATIONAL | 13
422, 424, & 426McArthur Road
Neighboring Retail Snapshot
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422, 424, & 426McArthur Road
Area MapFayetteville
> ±5 miles away from Downtown Fayetteville
> ±9 miles away from Cape Fear Valley Medical Center
> Within a 3 mile radius of ~17,656 professional employees
> Less than 20 minutes to Fayetteville Regional Airport
> Just over an hour from Raleigh
FAYETTEVILLE REGIONAL AIRPORT
COLLIERS INTERNATIONAL | 15
422, 424, & 426McArthur Road
Dem
ogra
phic
s POPULATION 1-MILE 3-MILE 5-MILE
2000 Population 5,388 38,281 71,279
2010 Population 5,243 39,201 70,454
2019 Population 5,853 40,271 71,952
2024 Population 6,061 41,261 73,271
2019-2024 Annual Rate 0.70% 0.49% 0.36%
Daytime Population 6,959 39,845 90,709
2019 Median Age 37.5 34.8 35.0
HOUSEHOLDS
2000 Households 2,123 14,836 28,046
2010 Households 2,156 16,085 29,370
2019 Total Households 2,407 16,651 30,118
2024 Total Households 2,497 17,108 30,118
2019-2024 Annual Rate 0.74% 0.54% 0.42%
2018 Average Household Size 2.76 2.94 2.93
HOUSING
2019 Total Housing Units 2,915 19,587 35,451
2019 Owner Occupied Housing Units 45.8% 37.1% 35.9%
2019 Renter Occupied Housing Units 36.8% 47.9% 49.0%
2019 Vacant Housing Units 17.4% 15.0% 15.0%
MEDIAN HOUSEHOLD INCOME 1-MILE 3-MILE 5-MILE
2019 Median Household Income $52,768 $40,419 $39,419
2024 Median Household Income $58,712 $46,209 $45,106
AVERAGE HOUSEHOLD INCOME
2019 Average Household Income $69,395 $57,111 $57,042
2024 Average Household Income $78,527 $66,582 $65,785
PER CAPITA INCOME
2019 Per Capita Income $27,025 $23,441 $23,837
2024 Per Capita Income $30,680 $27,418 $27,561
EDUCATION
Associate’s Degree 9.9% 10.5% 10.2%
Bachelor’s Degree 21.1% 18.5% 18.8%
Graduate/Professional Degree 15.9% 11.2% 11.7%
RACE/ETHNICITY
White Alone 47.0% 35.7% 40.1%
Black Alone 41.4% 53.8% 49.0%
Hispanic Origin 9.4% 8.6% 8.9%
AGE
18+ 79.1% 77.0% 77.3%
55+ 30.1% 26.9% 27.2%
EMPLOYMENTTotal Employees 3,824 17,656 51,053
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OfferingProcedure
Colliers International 1201 EDWARDS MILL RDSuite 300Raleigh, NC 27607+1 919 832 1110www.colliers.com/rdu
The offering of 422 McArthur Road, Fayetteville, NC is being conducted exclusively by Colliers International. All questions and inquiries should be directed to the Colliers representatives listed in this memorandum.
Colliers will be available to assist prospective investors with their review of the offering. On-site inspections of the property and tours of the market area can be arranged directly with Colliers.
All prospective purchasers can receive the due diligence materials by contacting the listing broker to register and receive a Confidentiality Agreement. Once a signed Confidentiality Agreement is received, prospective buyers will receive a link to the due diligence material folders.
Offers should include, at a minimum, the following:• The purchase price, due diligence period, closing date;• The source of capital, both equity and debt, for the transaction• The amount of earnest money deposit• A description of assumptions utilized for the offer• Purchaser’s resume indicating properties currently owned, and those
acquired in 2018 and 2019.
JACK FARRITORVICE [email protected]
919 771 3314
1830 Hillandale RoadSITE
MCARTHUR ROADMCARTHUR ROAD
Colliers International 1201 EDWARDS MILL ROADSuite 300Raleigh, NC 27607+1 919 832 1110www.colliers.com/rdu
FAYETTEVILLE, NORTH CAROLINA
422, 424, 426 McArthur Road
JACK FARRITORVICE [email protected]
919 771 3314