ZOËS KITCHEN & FIVE GUYS

COLORADO SPRINGS, CO

NEW CONSTRUCTION STRIP IN GROCERY ANCHORED CENTER

CLICK HERE TO SEE CHICK-FIL-A

(ADJACENT PARCEL)

THRIVING, FULLY-LEASED STRIP CENTER LOCATED ALONG A MAJOR RETAIL CORRIDOR IN BOOMING COLORADO SPRINGS

ZOËS KITCHEN & FIVE GUYS

5.65%CAP

$3,344,000PRICE

1612 S NEVADA AVE, COLORADO SPRINGS, CO 80906

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.

LEASABLE SF5,398 SF

NOI$188,930

PRICE PSF$619.49

LOT SIZE1.16 AC

YEAR BUILT2018

• New construction strip on new 10-year leases featuring four 5-year options with 10% increases in the base term and options

• Situated along busy retail corridor with planned traffic light at intersection in front of property

• Located in booming Colorado Springs, with growth rates of 14.7%

• Strong neighboring tenants include Walgreens, Home Depot,Safeway, Natural Grocers (NYSE: NGVC), and Chick-fil-A

• Over 223,000 residents with average household incomesexceeding $66K within a 5-mile radius

OCCUPANCY100%

3

Overview

Contact the team

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.

RICK SANNERrsanner@capitalpacific.comPH: 415.274.2709CA DRE# 0792433

ZANDY SMITHzsmith@capitalpacific.comPH: 415.274.2707CA DRE# 01734525

IN CONJUNCTION WITH CO LICENSED BROKER: David LeutholdLeuthold Commercial Properties303.871.9000

THE OFFERING provides an opportunity to acquire a 100% leased strip center in Colorado Springs, CO. The tenants are a Five Guys and Zoe’s Kitchen, both on new 10-year leases with four 5-year options to extend and 10% increases in the base term and options.

THE SUBJECT PROPERTY is located in a new Natural Grocers anchored center along Nevada Avenue, a major retail corridor in Colorado Springs where traffic counts exceed 39,000 VPD. The subject property is located less than a 15 minute drive from the Colorado Springs Airport, and centrally located to the various military installations around Colorado Springs: Peterson AFB, Ft. Carson, USAF Academy, Schriever AFB, and the Cheyenne Mountain Complex.

COLORADO SPRINGS is the second largest city in Colorado with a population of 464,000 residents. It is home to the University of Colorado Colorado Springs, the United States Olympic Committee Headquarters, numerous training facilities and governing bodies located within the city. The city also has a booming tourism industry, with an average gross income from tourism exceeding $2.25 billion from over 23 million visitors per year, providing a substantial boost to the retail industry. Colorado Springs is positioned to become Colorado’s largest city by 2050, due to a vast number of millennials moving to the city. The city’s growth rates of 14.7% are higher than the average 10% growth rate of the 10 fastest-growing areas with millennials. Scheels All Sports, a 220,000 sf retail space featuring entertainment attractions and 75 specialty shops and boutiques, will also be opening in 2021.

FIVE GUYS HAS OVER 1,500 LOCATIONS IN THE UNITED STATES, CANADA, EUROPE, AND THE MIDDLE EAST

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Investment Highlights

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MILTON E PROBY

PARKWAY

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IRC

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LAKE AVENUE

S ACADEMY BOULEVARD

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RD71,000

VPD

DENVER70 MILES

COLORADO COLLEGE

MEMORIAL HOSPITAL

COLORADO SCHOOL FOR

THE DEAF AND BLIND

FORT CARSON

ARMY BASE

PETERSON AIR FORCE

BASE

PIKES PEAK COMMUNITY

COLLEGE

COLORADO SPRINGS AIRPORT

ENCOMPASS HEALTH

HOSPITAL

EL PASO COUNTY

CITY OF COLORADO SPRINGS

CITY OF COLORADO SPRINGS

EL PASO COUNTY

34,545 VPD

55,675 VPD

44,935 VPD

18,000 VPD

34,707 VPD

114,000 VPD

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.

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Aerial

39,000 VPD

5

25

114,000 VPD

Retail Aerial

39,000 VPD

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.

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S NEVADA AVENUE

TRAFFIC LIGHT WILL

BE INSTALLED APRIL 2019 AT INTERSECTION

WITH FULL MOVEMENT

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Retail Aerial

SOUTHGATE RD

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.

S NEVADA AVENUE

39,000 VPD

TRAFFIC LIGHT WILL

BE INSTALLED APRIL 2019 AT INTERSECTION

WITH FULL MOVEMENT

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IN MIDDLE OF ONE OF TOP STATES FOR ECONOMIC GROWTH, COLORADO SPRINGS IS BOOMING.

August 23, 2018 (Colorado Watchdog) With Colorado consistently ranking in the top five states for economy, employment, education, health care, and best state to live, many eyes are focused on Colorado Springs, which is poised to become the state’s largest city by 2050.

Over the next 35 years, the state’s population is expected to increase by 3 million new residents, according to State Demography Office predictions.

The northern and western parts of Colorado will experience the largest population growth with some populations doubling in size (Greeley and Fort Collins) and the Western Slope growing by two-thirds. One reason for the demographic shift is because of the vast number of millennials moving to Colorado Springs.

Of the 10 fastest-growing areas with millennials and with growth rates exceeding 10 percent, Colorado Springs ranks first with 14.7 percent growth, and Denver third with 12.8 percent growth.

Forbes Magazine lists Colorado Springs as one of the best cities for business and careers in America. CNBC ranked Colorado as the ninth best place to live in America, a jump from its 14th-place ranking in 2017.

“Never mind that the Centennial State is facing historic labor shortages. It is still adding jobs at a steady clip – nearly 73,000 in the last year,” CNBC reported.

READ THE FULL ARTICLE

In the NewsDOWNTOWN COLORADO SPRINGS DEVELOPMENT IS BOOMING.

December 3, 2018 (Colorado Springs Chamber & EDC) Colorado Springs is thriving, fueled in large part by the dramatic revitalization of its downtown area.

This year alone, the city was recognized by the Brookings Institution as the Fastest Growing City for Millennials, the No. 1 Most Desirable Place to Live by U.S. News and World Report and among the Top 25 Happiest Cities.

Game-Changing Sports DevelopmentsKnown as Olympic City USA, Colorado Springs is strengthening its already extensive sports industry with the opening of the U.S. Olympic Museum and Hall of Fame in 2019. The $75 million, 60,000 square-foot museum will be one of the most accessible and interactive museums in the country, honoring the legacies of American Olympians and Paralympians.

In addition, Colorado Springs will welcome an $8 million Pedestrian Bridge to America the Beautiful Park. The bridge will connect the extensive Legacy Loop trail system and park to the U.S. Olympic Museum and a new stadium for Colorado Springs’ minor league soccer team, the Switchbacks.

A Booming Tech Sector and Home-Grown InnovationColorado Springs is a growing hotspot for startups and tech companies. On top of the businesses that call the region home, entrepreneurs are flocking to coworking spaces like Epicentral Coworking to fuel their creative spirits.

READ THE FULL ARTICLE

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.

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BUSINESS SUMMARY

KEY 1-MILE 3-MILES 5-MILES

TOTAL 1-MILE 3-MILES 5-MILES

Businesses 759 5,675 10,189

Employees 9,343 76,033 121,799

Residential Population 11,860 90,834 223,118

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.

Submarket Overview

RETAILERS IN CLOSE PROXIMITY INCLUDE:

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Bed Bath & BeyondBurger KingChipotleDollar TreeDunkin’ DonutsFive GuysHome Depot

Kentucky Fried ChickenMcDonald’sMichaelsNatural GrocersO’Reilly Auto PartsPetSmartRoss Dress for Less

SafewayStarbucksTargetVASA FitnessVerizon WirelessWalgreensWendy’s

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.

CURRENTPrice: $3,344,000Capitalization Rate: 5.65%Price Per Square Foot: $619.49Total Leased (SF): 100.00% 5,398

Total Vacant (SF): 0.00% 0 Total Rentable Area (SF): 100.00% 5,398

INCOME PER SQUARE FOOTScheduled Rent $35.00 $188,930

CAM Recoveries $1.79 $9,672

Property Tax Recoveries $2.35 $12,701

Insurance Recoveries $1.13 $6,078

EFFECTIVE GROSS INCOME $217,381

EXPENSES (2019 PROFORMA)CAM1 NNN ($9,672)Insurance NNN ($6,078)Property Taxes NNN ($12,701)

TOTAL OPERATING EXPENSES (2019 PROFORMA) ($28,451)

NET OPERATING INCOME $188,9301 Tenant utilities are fully reimbursed but are not accounted for in CAM budget

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Income & Expense

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.

TENANT INFO LEASE TERMS RENT SUMMARY

TENANT SQ. FT. PERCENT OF GLA TERM MONTHLY

RENTANNUAL

RENT RENT/FT

Zoe’s Kitchen 2,848 52.76% 01/18/18 01/31/23 $8,306.67 $99,680.00 $35.0002/01/23 01/31/28 $9,137.33 $109,648.00 $38.50

Option 1 02/01/28 01/31/33 $10,051.07 $120,612.80 $42.35Option 2 02/01/33 01/31/38 $11,057.36 $132,688.32 $46.59Option 3 02/01/38 01/31/43 $12,160.96 $145,931.52 $51.24Option 4 02/01/43 01/31/48 $13,378.48 $160,541.76 $56.37

Five Guys 2,550 47.24% 09/13/18 09/30/23 $7,437.50 $89,250.00 $35.0010/01/23 09/30/28 $8,181.25 $98,175.00 $38.50

Option 1 10/01/28 09/30/33 $8,999.38 $107,992.50 $42.35Option 2 10/01/33 09/30/38 $9,900.38 $118,804.50 $46.59Option 3 10/01/38 09/30/43 $10,890.63 $130,687.50 $51.25Option 4 10/01/43 09/30/48 $11,980.75 $143,769.00 $56.38

OCCUPANT 5,398 100.00% $15,744.17 $188,930.00 $35.00

VACANT 0 0.00%

CURRENT TOTALS 5,398 100.00%

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Rent Roll

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12This 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.

5,398RENTABLE SF

1.16ACRES

SIGN

114,000 VPD

39,000 VPD

TRAFFIC LIGHT WILL

BE INSTALLED APRIL 2019 AT INTERSECTION

WITH FULL MOVEMENT

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Site Plan

ABOUT KENTUCKY FRIED CHICKEN

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.

ABOUT FIVE GUYS

ABOUT THE FRANCHISEE

Five Guys Franchisee, Five in the Door, LLC, is a 5-store franchisee operated by Jeff Parker. Parker has the exclusive rights to open Five Guys restaurants in Douglas, El Paso, and Pueblo Counties and additionally holds the rights in Boston, Maine, and Rhode Island with another 5-Guys franchisee. Parker has been in the 5-Guys system since 2008 with additional locations in Colorado Springs, Castle Rock, and Lone Tree. Before 5-Guys, Parker was in the MLB for 22 years rising from Batboy to the Front Office.

Please CLICK HERE for an article about the franchisee.

Twenty years after opening, Five Guys has over 1,500 locations in the United States, Canada, Europe, and the Middle East. Over 920 locations are operated by franchisees, while approximately 450 locations are corporately owned and operated. The overwhelming success of franchising a local restaurant made national news with articles in many trade publications including Nation’s Restaurant News, Restaurant Business Magazine, and the Franchise Times. Five Guys is a privately owned company. Their menu offers a selection of hamburgers, hot dogs, and sandwiches in addition to fries, milkshakes, and soft drinks.

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.

13

Tenant Mix

ABOUT KENTUCKY FRIED CHICKEN

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.

ABOUT ZOËS KITCHEN

Zoës Kitchen (NYSE: ZOES), headquarted in Plano, TX, has more than 260 locations across 20 states serving Mediterranean inspired comfort food with made-from-scratch recipes using fresh ingredients. Their menu includes a variety of salads, hummus, pitas, grilled sandwiches kabobs, bowls and platters.

At Zoës, customers can dine in, order online or call ahead for takeout; purchase a variety of fully prepared Mediterranean Family Meals; pick up side dishes by the pint; and take advantage of the extensive catering menu, which includes box lunches, party trays and meals for large groups that can be delivered locally.

In 2018, Zoës Kitchen was acquired by Cava Group Inc. for $300 million. Please CLICK HERE for an article about the owner.

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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.

14

Tenant Overview

COLORADO SPRINGS

DENVER(1 HR 10 MINS, 70 MILES)

THE AVERAGE HOUSEHOLD INCOME WITHIN A 3-MILE RADIUS

IS OVER $66K

FORTUNE 500 COMPANIES IN COLORADO

EMPLOYER INDUSTRY

Ball Corporation Advanced Manufacturing

Dish Network Telecommunications

Level 3 Telecommunications

Liberty Interactive Telecommunications

Newmont Mining Energy

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.

POPULATION

1-MILE 3-MILES 5-MILES

2010 11,021 84,575 207,714

2018 11,860 90,834 223,118

2023 12,397 94,869 232,820

2018 HH INCOME

1-MILE 3-MILES 5-MILES

Average $52,609 $66,592 $66,134

Median $38,052 $45,974 $46,575

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Demographics

COLORADO SPRINGS,COLORADO

COLORADO SPRINGS is the second largest city in the state of Colorado, and the seat of El Paso County, Colorado. Located near Pikes Peak, a landmark in Pike National Forest, Colorado Springs offers numerous activities including hiking, cycling, and climbing in the various national parks.

Known as the Olympic City USA, the United States Olympic Committee Headquarters resides in Colorado Springs, along with 20+ National Olympic Governing Bodies, more than 50 National Sport

Organizations, the Colorado Springs Olympic Training Center, and the future U.S. Olympic Museum, a $75 million, 60,000 sf museum opening in 2019.

Each year over 10,000 athletes train at the flagship U.S. Olympic Training Center and 130,000 people come to tour the Center in Colorado Springs. The Olympics have an annual economic impact of $215 Million, and sustain thousands of jobs in the city.

OLYMPIC CITY

THE ECONOMY OF COLORADO SPRINGS is based primarily on it’s military installations as well as the aerospace, electronics, and tourism industries. The military employs one fifth of the work force in the city with Fort Carson, a U.S. Army base. The U.S. Air Force Academy, Fort Peterson Air Force Base (AFB), and the North American Air Defense Command (NORAD) are also major employers. Colorado Springs is also a center for space research. The city is the site of the Combined Services Space Center and the Consolidated Space Operations Center.

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.

464,474COLORADO SPRINGS POPULATION (ESTIMATED)

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Location Overview

We’d love to hearfrom you.

CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:

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.

JOE CACCAMOJOHN ANDREINI

ZANDY SMITH

DAVE LUCAS

RICK SANNER

CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS

JACK NAVARRAJUSTIN SHARP

JUSTIN STARK

RICK SANNERrsanner@capitalpacific.comPH: 415.274.2709CA DRE# 0792433

ZANDY SMITHzsmith@capitalpacific.comPH: 415.274.2707CA DRE# 01734525

IN CONJUNCTION WITH CO LICENSED BROKER: David LeutholdLeuthold Commercial Properties303.871.9000

Copyright © 2019 Capital Pacific Partners

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