offering memorandum keybank ground lease 1098 s 300 …images2.loopnet.com/.../document.pdf2015...

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

KEYBANK GROUND LEASE1098 S 300 WSALT LAKE CITY, UT 84101

Offering Memorandum

ACTUAL SITE

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AERIAL PHOTO KEYBANK GROUND LEASE

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 Y0070088


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KEYBANK GROUND LEASE



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S 300 WEST - 16,055 CPD

DOWNTOWN SALT LAKE CITY

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S 300 WEST - 1

6,055 CPD

230,495 CPD

BURGER KING

EXECUTIVE SUMMARY


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KEYBANK GROUND LEASE1098 S 300 W

Salt Lake City, UT 84101

FINANCIAL SUMMARY

Price $2,260,000

Down Payment 100% $2,260,000

Cap Rate 4.62%

Building SF +/- 3,836 SF

Net Cash Flow 4.62% $104,500

Year Built 2011

Lot Size .82 Acres

LEASE SUMMARY

Lease Type Absolute Triple-Net (NNN) Ground Lease

Tenant KeyBank N.A.

Roof & Structure Tenant Responsible

Rent Commencement Date May 1, 2011

Lease Expiration Date April 30, 2031

Lease Term Remaining 14 Years

Rental Increases 10% Every 5 Years

Renewal Options 4, 5 Year Options

BASE RENT ($27.24/SF) $104,500

Net Operating Income $104,500

Total Return 4.62% $104,500

ANNUALIZED OPERATING DATA

LEASE YEARS ANNUAL RENT CAP RATE

Current - 4/30/2021 $104,500.00 4.62%

5/1/2021 - 4/30/2026 $114,950.00 5.08%

5/1/2026 - 4/30/2031 $126,445.00 5.59%

LEASE YEARS ANNUAL RENT CAP RATE

Option 1 $139,089.48 6.00%

Option 2 $152,998.44 6.53%

Option 3 $168,298.32 7.12%

Option 4 $185,128.20 6.53%

DEPOSITS

2016 $52.74M (58% growth in deposits from 2015-2016)

2015 $33.3M

2014 $28.3M

2013 $22.3M

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TENANT OVERVIEW

Cleveland-based KeyCorp is one of the nation’s largest bank-based finan-cial services companies, with assets of approximately $136.5 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individu-als and companies throughout the United States and, for certain businesses, internationally. The company’s businesses deliver their products and services through branches and offices; a network of 1,500 ATMs; telephone banking centers, and their website, Key.com, that provides account access and finan-cial products 24 hours a day.

Headquarters Cleveland, OH

Stock Symbol (NYSE) KEY

Locations 1,200+

ATMs 1,500+

Employees 18,879

2016 Revenue $5 Billion

Website www.key.com




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LOCATION OVERVIEWINVESTMENT HIGHLIGHTSThe Salt Lake City metro has nearly 1.2 million people in three counties: Salt Lake, Tooele and Summit. Salt Lake City is the largest city, with 197,200 residents. The highest percentage of population growth continues to occur in the suburban areas such as South and West Jordan while the entire metro is expected to grow 1.3 percent annually over the next five years.

Salt Lake City’s economy will grow by 7.4 percent this year as a highly skilled and bilingual workforce and a low cost of doing business draw employers. A stable base of government entities are located in the metro, while growing companies in the private sector include technology leaders eBay and Oracle Corp. These companies, along with Twitter Inc., Goldman Sachs and the National Security Agency, have located data and service centers in the Salt Lake City metro.

Tourism will remain a top employment generator over the coming years, as several world-class ski resorts, including Brighton, Park City, Alta and Snowbird, are less than an hour drive from the airport. Vail Resorts has recently taken over the operation of Park City and nearby Canyons resorts. A lift connecting the two resorts has been completed and now contains the most ski-able acres in the U.S. Also, Salt Lake City is equipped to host numerous conventions and trade shows at meeting facilities, such as the 365,000-square foot Salt Palace Convention Center and the Energy Solutions Arena.

Salt Lake City’s low cost of living, scenic views and wide variety of recreational and cultural activities make it a great place to live. The Wasatch Range provides a multitude of year-round recreational opportunities. The many ski resorts dotting the range offer residents world-class skiing minutes from their doorsteps. Additionally, more than a dozen national parks and monuments are all within a one-day drive of the city.

• Absolute Triple-Net (NNN) Ground Lease with 14 Years Remaining

• 10% Rental Increases Every 5 Years

• Growing Deposits (58% Growth from 2015-2016)

• Excellent Out Parcel Location in Target Anchored Center

• Directly off of Interstate-15 (230,495 Cars per Day) - A Primary Connector Through Utah

• TESLA Service Center and Charging Stations Opened in March 2015 Adjacent to the Center - The Only TESLA Service Center in Utah

• Infill Salt Lake City - 300,000 Residents in a 5-Mile Radius

• Close Proximity to Smith’s Ballpark - Home of the Salt Lake City Bees, AAA Anaheim Angels and the Utah Utes

• 260,000+ Daytime Employees in a 3-Mile Radius

• Surrounded By National Tenants Including Walmart Supercenter, Lowe’s and Costco

• 2,141 Businesses within 1 Mile of the Property

• 5 Minutes from Downtown Salt Lake City

PROPERTY DESCRIPTION

Income 1-Mile 3-Miles 5-Miles2015 Est. Average Household Income $48,922 $59,995 $67,9612015 Est. Median Household Income $36,006 $41,220 $45,6692015 Est. Per Capita Income $20,806 $26,149 $27,143

Population 1-Mile 3-Miles 5-Miles2020 Projection 9,787 141,575 305,1412015 Estimate 9,154 139,389 300,318Growth 2015 - 2020 6.91% 1.57% 1.61%

Households 1-Mile 3-Miles 5-Miles2019 Projections 4,266 61,568 121,1252015 Estimate 3,868 60,025 118,463Growth 2015 - 2020 10.29% 2.57% 2.25%

DEMOGRAPHICS

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SITE PLAN

+/- 9,394 SF

+/- 1.8

ACRES

*Can be purchased indi-vidually or as a portfolio, including the 9,394 SF of shop space and vacant+/-1.8 acres (per the OEA can build up to 19,000 SF - no food uses allowed)

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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 listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

GARY MANGUMBroker of RecordSALT LAKE CITY OFFICETel: (801) 736-2600Fax: (801) [email protected] License: 5468490-AB00

offering memorandum keybank ground lease 1098 s 300 …images2.loopnet.com/.../document.pdf2015...

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