burger king - loopnet · 2018-09-11 · burger king 4.85% cap $1,959,000 price 1615 w bell rd...

REPRESENTATIVE PHOTO

BURGER KINGPHOENIX, AZ

20-YEAR ABSOLUTE NET GROUND LEASE

BURGER KING

4.85%CAP

$1,959,000PRICE

1615 W BELL RD PHOENIX, AZ 85023

• Brand new Burger King ground lease featuring a drive-thru

• Zero expense obligations for the Landlord

• Leased to the dominant Burger King franchisee in AZ

• Ideally located in an excellent Phoenix submarket along a heavily trafficked retail corridor

• Located within close proximity of Turf Paradise race track, which draws more than 300,000 visitors per year

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.

GROUND SF43,538 SF

LEASE TERM20 Years

LEASE TYPEGround Lease

YEAR BUILT2018

Overview

REPRESENTATIVE PHOTO 2

https://goo.gl/maps/C4wZyqNbPin

https://www.google.com/maps/place/1615+W+Bell+Rd,+Phoenix,+AZ+85023/@33.6397181,-112.0952681,17.25z/data=!4m5!3m4!1s0x872b6e586754d437:0x789f63b4bf5369cf!8m2!3d33.6400887!4d-112.093751

https://www.google.com/maps/place/1615+W+Bell+Rd,+Phoenix,+AZ+85023/@33.6397181,-112.0952681,17.25z/data=!4m5!3m4!1s0x872b6e586754d437:0x789f63b4bf5369cf!8m2!3d33.6400887!4d-112.093751

Contact the team

OPERATED BY THE LARGEST BURGER KING FRANCHISEE IN AZ AND INCLUDES HIGH NET WORTH PERSONAL GUARANTY


THE OFFERING provides an opportunity for an investor to acquire a new 20-year Burger King ground lease, located in one of Phoenix’s premier retail trade areas. Burger King is adjacent to a Sam’s Club shopping center, just east of Interstate 17, a primary north-south thoroughfare that runs through Phoenix. The lease includes four 5-year extension options, and rental increases every five years, providing an investor with a hedge against inflation. The tenant is responsible for all maintenance and expense obligations, and the Rent Commencement Date is anticipated for October. The Bell Road Burger King is leased to an experienced operator and comes with a strong personal guaranty (speak with agent for details), helping further minimize investment risk.

THE SUBJECT PROPERTY is located within a heavily trafficked area of Phoenix, and benefits from an abundance of surrounding retail and residential neighborhoods. W Bell Road has daily traffic counts that exceed 38,000 vehicles per day, and nearby Interstate 17, which connects Phoenix to Flagstaff, has traffic counts that exceed 206,000 vehicles per day. Surrounding retailers include a Walmart Supercenter, Sam’s Club, Kohl’s, and the Bell Town Centre, which help drive additional traffic to the area. Phoenix is the 5th largest city in the United States, and is experiencing a healthy rise in its population. There are over 353,276 residents within a 5-mile radius of the subject property, and that number is expected to increase by 8.08% between 2018 and 2023.

EXCLUSIVELY LISTED BY:

JDS Real Estate Services, Inc.

AZ RE Broker Lic. No. CO661892000

Diana Shirek, Broker of Record

[email protected]

PH: 800.383.7748


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Investment Highlights

N 1

9TH

AV

ENU

EN

19T

H

AVEN

UE

W BELL ROAD W BELL ROAD E BELL ROAD

17

17

17

101101

26,349 VPD

22,656 VPD

MIDDLE SCHOOL

CITY OF PHOENIX

CITY OF DEER

VALLEY

ACADEMY

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

CHARTER SCHOOL

ARTS SCHOOL

DEER VALLEY

MEDICAL CENTER

173,789 VPD

171,999 VPD

40,337 VPD

41,321 VPD


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Zoomed-Out Aerial

N 1

5TH

AV

ENU

E

N 7

TH A

VEN

UE

N 7

TH A

VEN

UE

N 1

9TH

AV

ENU

EN

19T

H A

VEN

UE

W BELL ROADW BELL ROAD

ADADEMY

MIDDLE SCHOOL22,656

VPD

19,077 VPD

41,321 VPD

36,396 VPD


TURF PARADISEANNUAL VISITORS: +/- 310,000

ANNUAL ECONOMIC IMPACT: $91 MILLION

TURF PARADISE RECENTLY INTRODUCED MOTORCYCLING RACING DURING THE

HORSE RACING OFF SEASON, MAKING IT A YEAR-ROUND ACTIVE FACILITY

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Zoomed-In Aerial

Walmart SupercenterKohl’sSam’s ClubIHOPDiscount TireJiffy lubeChase Bank

O’Reilly Auto PartsDollar TreeJack In The BoxBig 5 Sporting GoodsChevronLong John Silver’sHertz Car Sales

Bell Road ToyotaWinco FoodsPetSmartTaco BellBell HondaSchlotzky’sGoodwill

BUSINESS SUMMARY

KEY 1-MILE 3-MILES 5-MILES

TOTAL 1-MILE 3-MILES 5-MILES

Businesses 288 3,876 10,602

Employees 4,786 62,874 139,662

Residential Population 19,006 147,346 337,415


Submarket Overview

RETAILERS IN CLOSE PROXIMITY INCLUDE:


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Income & Expense REPRESENTATIVE PHOTO

PRICE $1,959,000 Price Per Square Foot: $45.00

Capitalization Rate: 4.85%

Total Rentable Area (SF): 43,538

Lot Size (AC): 1.00

STABILIZED INCOME PER SQUARE FOOTScheduled Rent $2.18 $95,000

Effective Gross Income $2.18 $95,000

LESS PER SQUARE FOOTTaxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

EQUALS NET OPERATING INCOME $95,000

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Rent Roll

TENANT INFO LEASE TERMS RENT SUMMARY

TENANT NAME SQ. FT. CURRENT RENT

MONTHLY RENT

YEARLY RENT

MONTHLY RENT/FT

YEAR RENT/FT

Burger King 43,538 1 5 $95,000 $7,917 $95,000 $0.18 $2.18

Personal Guaranty 6 10 $8,708 $104,500 $0.20 $2.40

11 15 $9,579 $114,950 $0.22 $2.64

16 20 $10,537 $126,445 $0.24 $2.90

Option 1 21 25 $11,591 $139,090 $0.27 $3.19

Option 2 26 30 $12,750 $152,998 $0.29 $3.51

Option 3 31 35 $14,025 $168,298 $0.32 $3.87

Option 4 36 40 $15,427 $185,128 $0.35 $4.25

TOTALS: 43,538 $95,000 $7,917 $95,000 $0.18 $2.18

Rent commencement is anticipated for October, 2018.

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BASE RENT

DATE RANGE MONTHLY RENT ANNUAL RENT

Years 1-5 $7,917 $95,000Years 6-10 $8,708 $104,500Years 11-15 $9,579 $114,950Years 16-20 $10,537 $126,445

OPTION RENTS

DATE RANGE MONTHLY RENT ANNUAL RENT

#1. Years 21-25 $11,591 $139,090#2. Years 26-30 $12,750 $152,998#3. Years 31-35 $14,025 $168,298#4. Years 36-40 $15,427 $185,128

RENT

TENANT Barnett Jacobs Real Estate, LLC dba Burger KingGUARANTOR Personal Guaranty LEASEABLE SF 43,538 SFBUILDING SF 3,237 SF (Approximately)LEASE TYPE Ground LeaseTERM 20 YearsRENT COMMENCEMENT October 2018 (Estimated)

TAXESTenant shall be responsible for payment of the ad valorem taxes for the Property.

TENANT’S OBLIGATIONSTenant is responsible for all maintenance and repair to the entirety of the Premises, including all interior and exterior, structural and nonstructural repairs and replacement.

LANDLORD’S OBLIGATIONSAbsolute NNN.

INSURANCETenant shall maintain the following insurance policies: (1) Commercial general liability insurance with a combined single limit no less than $1 million per occurrence and $2 million in aggregate. Landlord shall be named as additional insured; (2) All-risk property insurance equal to full replacement value; (3) Workers’ compensation; and (4) Business interruption insurance in an amount to cover rent and other charges for 12 months.

UTILITIESTenant is responsible for direct payment of all utilities to the appropriate billing authority.

ESTOPPELTenant shall deliver an executed Estoppel to Landlord within 10 business days of receipt of written notice.

EXPENSES

LEASEPROVISIONS


Lease Abstract

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W BELL ROAD

W B

ELL

ROA

D

N 19TH AVENUE

ENTRANCE FOR SAM’S CLUB

ENTRANCE FROMBELL ROAD

41,321 VPD

22,656 VPD

This site plan is a rendering that has been created based on sources we believe to be reliable. 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.

Site Plan

43,538GROUND SF

3,237 (APPROX)BUILDING SF

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Site Elevations


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Burger King Holdings operates the world’s #2 hamburger chain (behind McDonald’s) with more than 16,000 restaurants in the U.S. and more than 70 other countries. In addition to its popular Whopper sandwich, the chain offers a variety of burgers, chicken sandwiches, salads, and breakfast items.

More than 1,300 BK locations are company-owned, while the rest are owned and operated by franchisees. Burger King was founded by James McLamore and David Edgerton in 1954. In 2010, 3G Capital, a global multi-million dollar investment firm focused on long-term creation, purchased Burger King Corporation. Burger King Corporation became a privately-owned corporation until returning to the public market in 2012. In 2014, Burger King Corporation purchased Canadian restaurant brand, Tim Hortons. After the deal, Burger King Corporation was renamed Restaurant Brands International (RBI). RBI is the world’s largest quick service restaurant company, with more than $30 Billion in system-wide sales across the Burger King, Tim Hortons, and Popeyes brands.

ABOUT BURGER KING



Tenant Overview

ABOUT THE FRANCHISEE

Barnett Management Company (BMC) is an Arizona-based franchisee that has been in business since 1980. BMC was named the Burger King Franchisee of the Year in 2014 by Burger King Corporate, and continues to be recognized for its exemplary operations. With 38 Burger King locations, BMC operates all of its stores in the State of Arizona, making them the largest franchisee in the state.

CLICK HERE TO LEARN MORE 12

https://barnettmgt.com/

POPULATION

1-MILE 3-MILES 5-MILES

2010 16,876 134,219 308,231

2017 19,006 147,346 337,415

2022 20,362 157,069 358,507

2017 HH INCOME

1-MILE 3-MILES 5-MILES

Average $67,312 $71,325 $69,258

SUBJECT PROPERTY

PHOENIX CITY CENTER (16 MILES)

THE AVERAGE HOUSEHOLD INCOME WITHIN A 3-MILE RADIUS

IS OVER $71K


TOP EMPLOYERS

EMPLOYER # OF EMPLOYEES

State of Arizona 49,800

Wal-Mart Stores, Inc. 30,634

Banner Health 24,825

City of Phoenix 15,100

Wells Fargo 13,308

Bank of America 13,300

Maricopa County 12,792

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Demographics

PHOENIX, ARIZONA

PHOENIX, also known as the “Valley of the Sun”, is the state capital and largest city in Arizona. It is the economic hub of the state, and a major tourism and recreation destination. The city has a robust arts scene, many museums, over 200 golf courses, a zoo, botanical garden, hundreds of annual events and so much more. In 2016, Phoenix hosted nearly 18.2 million visitors, including more than 1.4 million international visitors. Estimated direct spending contributes over $3.3 billion to the local economy and impacts over 52,000 jobs in Phoenix.

Phoenix proper has a population of 1.6 million and is the fifth largest city in the U.S. The Phoenix metro is the 14th largest metro area by population in the U.S., with approximately 4.6 million people. The Census Bureau estimates that by 2030 the population of the metro area will reach 6.3 million.

4,661,537

PHOENIX MSA POPULATION (ESTIMATED)


THE PHOENIX METRO AREA includes over 35 incorporated and 50 unincorporated towns and cities. The city has become a hub for construction, high-

tech manufacturing, healthcare and tourism. The city claims five Fortune 500 companies; Freeport-McMoRan, Republic Services, Insight Enterprises, Avnet and PetSmart. The local economy has seen continued growth since the 2008 recession, with retail sales over 8% this year and hotel occupancy levels rising.

PHOENIX METRO AREA

Location Overview

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GENERAL STATS5TH LARGEST U.S. CITY

14TH LARGEST METRO AREA

#35 FORBES BEST PLACES FOR BUSINESS AND CAREERS

200 GOLF COURSES

4 MAJOR LEAGUE SPORTS TEAMS

4,000 ANNUAL HOURS OF SUNSHINE

2.1 MILLION JOBS IN THE METRO AREA

#1 IN THE U.S. FOR SOLAR POWER PER CAPITA

ARIZONA STATE UNIVERSITYRanked #1 in U.S. for innovation by U.S. News and World Report // Top 1% of the world’s most prestigious universities // Over 98,000 students // $3.5 Billion economic impact on the state’s economy // 47,000+ jobs supported by the university

PHOENIX SKY HARBOR INTERNATIONAL AIRPORTOver 40 Million Passengers Annually // Ranked 19th in the world of passenger travel // More than100 domestic and 22 international flights // $38 Billion Annual Economic Impact // Supports 57,000+ jobs

ASU DOWNTOWN PHOENIX CAMPUS


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Location Overview Continued

burger king - loopnet · 2018-09-11 · burger king 4.85% cap $1,959,000 price 1615 w bell rd...

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