big o tires - 18.5 yrs freddy’s frozen...

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

BIG O TIRES - 18.5 YRS16880 W WADDELL RDSURPRISE, AZ 85388

Offering Memorandum

LAND OWNED BY:

AERIAL PHOTO BIG O TIRES - 18.5 YRS

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070007


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SURPRISEAUTO MALL

LUKE AIRFORCE BASE

BANNER DEL E. WEBBMEDICAL CENTER

ARROWHEADTOWNE CENTER100+ Stores

TANGEROUTLET MALL100+ Stores

WESTGATEENTERTAINMENT DISTRICT

LUKE INDUSTRIAL PARK

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BIG O TIRES - 18.5 YRS



BURGER KING

LOOP 303 FWY 38,625 CPD

W WADDELL RD 8 , 5 1 0 C P D

TENANTS WILL BE:

N COTTON LN 8 , 2 9 5 C P D

LAND OWNED BY:

LAND OWNED BY WALGREENS




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BURGER KING

TENANTS WILL BE:

N COTTON LN 8 , 2 9 5 C P D

LOOP 303 FWY 38,625 CPD

W WADDELL RD 8 , 5 1 0 C P D

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EXECUTIVE SUMMARY

BIG O TIRES - 18.5 YRS16880 W Waddell Rd

Surprise, AZ 85388

FINANCIAL SUMMARY

Price $2,579,000

Down Payment 100% $2,579,000

Cap Rate 5.7%

Building SF 6,000 SF

Net Cash Flow 5.7% $147,000

Year Built 2015

Lot Size .75 Acres

LEASE SUMMARY

Lease Type Absolute Triple-Net (NNN) Lease

Tenant One Putt Tire, LLC

Lease Guarantor Personals (1)

Roof & Structure Tenant Responsible

Rent Commencement Date July 17, 2015

Lease Expiration Date July 16, 2036

Lease Term Remaining 18.5 Years

Rental Increases 10% Every 5 Years Starting in Year 7

Renewal Options 2, 5 Year Options

BASE RENT $147,000

Net Operating Income $147,000

Total Return 5.7% $147,000

ANNUALIZED OPERATING DATA

OPTION YEARS ANNUAL RENT CAP RATE

Current - 7/16/2021 $147,000.00 5.70%

7/17/2021 - 7/16/2026 $161,700.00 6.27%

7/17/2026 - 7/16/2031 $177,870.00 6.90%

7/17/2031 - 7/16/2036 $195,657.00 7.59%

OPTIONS ANNUAL RENT CAP RATE

Option 1 $215,222.70 8.35%

Option 2 $236,744.97 9.18%

(1) 1. Karl Gabbard: 12 Years through May 27, 2026 2. Ian Downing: 12 Years through May 27, 2026 3. Brian and Desiree Elliot for the full term of the Lease 4. Jared and Cortnie McBride for the full term of the Lease




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TENANT OVERVIEW

Big O Tires is North America’s largest franchiser of tire retailers. It is headquartered in Palm Beach Gardens, FL, and has more than 400 franchises in 20 U.S. states. It sells its own Big O private brand tires and other brands. In addition to selling and servicing tires, wheels, and alignments, Big O Tires provides basic maintenance and replacement services such as oil changes, battery replacement, struts installation, and brake service.

In 1996, Big O Tires joined forces with one of the largest and most respected tire marketers in the nation when it became part of the TBC Retail Group, an automotive retail network comprised of some 1,200 Big O Tires, Tire Kingdom, Merchant’s and NTB locations spanning 40 U.S. states. Big O’s reach was broadened again in 2005, when TBC Corporation was acquired by Sumitomo Corporation of America, the largest wholly-owned subsidiary of Tokyo-based Sumitomo, one of the world’s leading traders of goods and services.

Headquarters Palm Beach Gardens, FL

Parent Company TBC Corporation

Founded 1962

Locations 380+

Website www.bigotires.com

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PROPERTY DESCRIPTION

LOCATION OVERVIEWINVESTMENT HIGHLIGHTSSurprise, Arizona is located just 28 miles northwest of downtown Phoenix. The City of Surprise sits at the foot of the White Tank Mountains and is currently home to over 100,000 residents. The City of Surprise offers an assortment of amenities. Located in the center of Surprise is the Surprise stadium. The stadium hosts spring training games for the Texas Rangers and the Kansas City Royals. The stadium also has 15 practice baseball fields which are utilized also by Parks and Recreation for the Cal Ripkin Youth Baseball program. Directly across from the stadium is the Surprise Community Park. The Park includes an urban fishing lake which features an accessible dock. There are also basketball courts, tennis and racquetball complex and a rubberized baseball field. Surprise also offers the Hollyhock Community Pool and the Surprise Aquatics Center. Both city pools feature zero depth play areas for small children as well as slides, diving areas and lap swimming areas.Other features that The City of Surprise has to offer are 7 golf courses, 14 city maintained parks, 4 recreation centers and 2 public libraries. The City of Surprise offers organized sports teams for youth, teens and adults. Sports such as baseball, basketball, soccer and volleyball are just a few of the many sports available through the City of Surprise. Surprise is also located near the White Tank Regional Park which is a good location for hiking and picnics.The City of Surprise is just a short drive away from the University of Phoenix Stadium and theJobing.com Arena, which are homes to the Phoenix Cardinals and the Phoenix Coyotes.The City of Surprise offers a wide range of choices for dining out. There are over 75 restaurants tochoose from around the city. Other businesses in the area include Ultrastar Movie Theater, 2 Walmarts, Target, Lowes, Home Depot, Sam’s Club, Sands Chevrolet, Best Buy and much more.

• Absolute Triple-Net (NNN) Lease with 18.5 Years Remaining• Multi-unit Big O Tire Franchisee - 4 Personal Guarantees• Ten Percent Rental Increases Every Five Years Starting in the Seventh Year• Outparcel to Walmart Supercenter• Phoenix MSA - 145,758 Residents in Trade Area• High Growth Area - Households Expected to Increase 41%+ by 2022• Directly Off Rte. 303 - Visible to 38,625 Cars per Day• More than 110,525 Daytime Employees in a 5-Mile Radius• Across from Surprise Auto Mall - Chevrolet, Toyota, Honda, Nissan, and More• Average Household Income Exceeds $76K in Surrounding Area• 30 Minutes from Downtown Phoenix

Income 1-Mile 3-Miles 5-Miles

2017 Est. Average Household Income $75,689 $76,910 $74,007

2017 Est. Median Household Income $65,981 $66,201 $61,949

2017 Est. Per Capita Income $24,626 $25,801 $27,313

Population 1-Mile 3-Miles 5-Miles

2022 Projections 4,775 107,794 190,569

2017 Estimate 3,431 79,722 145,748

Growth 2017 - 2022 39.16% 35.21% 30.75%

Households 1-Mile 3-Miles 5-Miles

2022 Projections 1,577 36,192 70,297

2017 Estimate 1,116 26,719 53,694

Growth 2017 - 2022 41.24% 35.45% 30.92%

DEMOGRAPHICS




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PROPERTY DESCRIPTION

PRASADA MASTER-PLANNED COMMUNITYPrasada is a new and refreshing master-planned community where living, working, shopping, and entertaining will blend seasmlessly across 3,355 acres in the rapidly growing community of Surprise.

Since 2002, the unique collaboration among Suburban Land Reserve, Macerich, WDP Partners, and RED Development has resulted in the creation of an unparalleled master-planned community that will positively impact the changing face of Surprise and the entire Northwest Valley as it develops over the coming years. In addition to the 1200+ acres planned for a commerical core to the community, over 2000 acres are dedicated to residential components from single family to multi-family, designed to come on line as the market demands.

At 180 acres, the 303 AutoShow at Prasada is the state’s largest autoplex. It is comprised of 250 acres featuring top name brands such as Chevrolet, Ford, Toyota, Chrysler, Jeep, Dodge, Nissan, Buick, and GMC. The new Chevrolet dealer is already a top dealer in the western United States. The auto park also features a full mile of freeway frontage.

PLANS FOR THE FUTURE

303 AUTOSHOW AT PRASADA

A developing community, Prasada plans on expanding to incorporate commercial, residential, retail, hospitality, entertainment, and medical centers.

• Neighborhood and power centers - featuring Fry’s, Target, and Walmart anchored centers

• Office buildings to accomodate large and small businesses

• A hospital and adjoining medical campus with urgent care, outpatient care, and physician offices

• A regional mall (currently in the design phase) that will ultimately offer 100+ specialty retailers, department stores, restaurants, and entertainment

• Additional hospital and entertainment venues, including Harkins Movie Theater

• Plazas, promenades, public parks, community parks, lakes, and trails

• Erickson Retirement Community - assisted living community with apartments and an array of health services

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REGIONAL MAP PROPERTY PHOTOS




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SITE PLAN

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SITE PLAN

WADDELL RD

PRASADA GATEWAY AVE




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Williams-Sonoma

MAP

5 MILESBanner Del E. Webb

Medical Center

14 MILESWestgate Entertainment

District

21 MILESGrand Canyon

University

26 MILESDowntown

Phoenix

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a care-ful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and finan-cial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed fa-cilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be inter-rupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

Net Leased Disclaimer

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Confidentiality Agreement

exclusively listedJAMIE MEDRESSSenior Managing Director InvestmentsPHOENIX OFFICETel: (602) 687-6778Fax: (602) [email protected]

Exclusively listed by:

MARK RUBLESenior Managing Director InvestmentsPHOENIX OFFICETel: (602) 687-6766Fax: (602) [email protected]

OFFICES NATIONWIDEwww.marcusmillichap.com

CHRIS LINDVice President InvestmentsPHOENIX OFFICETel: (602) 687-6780Fax: (602) [email protected]

big o tires - 18.5 yrs freddy’s frozen...

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