24 HOUR DENNY S - RELOCATION CRICKET - AT&T STRIP CENTER BRAND NEW CONSTRUCTION

Transcription

1 ACTUAL SITE 24 HOUR DENNY S - RELOCATION CRICKET - AT&T STRIP CENTER BRAND NEW CONSTRUCTION STRATEGICIALLY LOCATED ON 72ND AVE AND SHERIDAN BLVD OVERSEEING 73,000 VEHICLES PER DAY LOCATED IN MAJOR RETAIL CORRIDOR RETAILERS INCLUDING WALMART, ALBERTSONS, PLANET FITNESS, MCDONALDS, PANDA EXPRESS, STARBUCKS, 7-ELEVEN 100% OCCUPIED WITH NATIONAL TENANTS - DENNY S ON NEW 20-YEAR LEASE OCCUPYING 59% OF THE CENTER DENVER (WESTMINSTER), COLORADO OFFERING MEMORANDUM

2 Confidentiality Agreement 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. Net Leased Disclaimer Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: 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 careful, 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 financial 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 facilities 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 interrupted 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. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

3 SENIOR LIVING 71 UNITS SHOENBERG FARM W N S E 72ND FRONTAGE AVENUE - 36,000 VPD SUBJECT PROPERTY MCDONALDS SHERIDAN BLVD - 37,000 VPD PROPERTY DESCRIPTION

4 INVESTMENT HIGHLIGHTS 2 AAA REAL ESTATE IN BRAND NEW DEVELOPMENT Center Fully Occupied by National Tenants; Denny s, Cricket Wireless and AT&T Denny s is on Brand New 20-Year Lease Representing 59 Percent of the Leaseable Area and 62 Percent of the Gross Income Denny s Will Operate 24 Hours a Day and Nearest Denny s Location is 8 Miles Away Staggered Lease Expiration Allows for Ease of Lease Management New Construction of 6,464-Square Foot Building; 2017 Completition Large 41,908-Square Foot Parcel in Corner Development Overseeing 73,000 Vehicles Per Day Leased by Strong Operators - Denny s, 41 Units; Cricket, ±50 Units; AT&T ±70 Units WELL POSITIONED IN GROWING LOCAL MARKET AAA Location - Westminster, CO - 8 Miles North of Denver, CO Significant Development Immediate Adjacent Parcels Including 71 Senior Living Units, 52 Single Family Townhomes, Historical and Cultural Buildings, Creative Studios and Additional Retail Pad Development 1.8 Miles From Downtown Westminster Development Acre Mixed Use Development with 2,300 Residential Units, 1,000,000 Square Feet of Office Space, 700,000 Square Feet of Retail, New Commuter Rail Station, ±500 Buses Daily and 8,000 New Jobs Surrounding Retailers Include Walmart, Panda Express, Albertsons, Planet Fitness, McDonald s, Advance Auto Parts, Jack in the Box, Jiffy Lube and 7-Eleven Strong Demographics - 340,000 Residents Within 5 Miles and a Daytime Population of 120,000 Local Schools Include Belleview Christian College (291 Students), Harris Park Elementary (354 Students), Hidden Lake High School (293 Students), North Arvada Middle School (441 Students) and Westminster High School (2,688 Students) MINUTES FROM DOWNTOWN DENVER Jefferson County is Home to Coors Brewing Company at the Foot of the Rockies Jefferson is Known for Recrecreation with Three National Forests, Three State Parks, Two National Wildlife Refuges, Miles of Trails and Over a Dozen Golf Courses Denver Metro is a Critical Logistics Hub Between the Midwest and West Coast Denver is the State Capital and 19th Most Populous City in the US Colorado is Ranked Top Three States to do Business in the US Colorado Has a Diverse Range of Economic Drivers Including Logistics, Oil and Gas, Recreation and Mining MCDONALD S DOWNTO

5 INVESTMENT OVERVIEW WN DENVER SUBJECT PROPERTY ACT ID: Y

6 TENANT PROFILE Denny s is a full-service casual family restaurant chain. It operates over 1,600 restaurants in the United States, Canada and 13 other countries. Denny s is known for always being open, serving breakfast, lunch, dinner, and dessert around the clock. Unlike many other restaurant chains, Denny s does not close on holidays and nights, except where required by law. Many of their restaurants are located in proximity to freeway exits, bars, and in service areas. Denny s started franchising in 1963, and most Denny s restaurants are now franchisee-owned. The franchisee currently operates 41 units across multiple concepts (31 Denny s). DENNY S Lease Term 20 Years Lease Type Absolute-Net Options Four, 5-Year Guaranty Value 23-Unit Guaranty $10.8 Million 4

7 TENANT PROFILE AT&T, formerly known as Cingular Wireless, is a wholly owned subsidiary of AT&T, Inc. that provides wireless services to 135 million subscribers in the United States including Puerto Rico and the U.S. Virgin Islands. AT&T Mobility is the second largest wireless telecommunications provider in the United States and Puerto Rico behind Verizon Wireless. AT&T has more than 16,000 retail locations in the U.S., including company owned stores and kiosks, authorized dealers and third party retail locations. The franchisee is T3 Wireless LLC and was founded in The company, also known as Connect Wireless operates ±70 locations in Washington, Oregon, Idaho, Colorado, Arizona, New Mexico and Minnesota. AT&T Lease Term 7 Years Lease Type Absolute-Net Options Two, 5-Year Guaranty Value ±70-Unit $10.8 Million Cricket Wireless is a prepaid wireless service provider in the United States offering voice, text, and data and is a wholly owned subsidiary of AT&T Inc. It provids prepaid wireless services to approximately 5 million subscribers in the United States. Cricket Wireless was founded in 1999 by Leap Wireless International, Inc. Cricket has 4,300 stores with Cricket branded stores in all 50 states and over 14,000 points of distribution nationwide via corporate stores, authorized retailers and third party retail partnerships. The franchisee Talk4Less Wireless LLC operates ±50 locations. CRICKET WIRELESS Lease Term 5 Years Lease Type Absolute-Net Options Two, 5-Year Guaranty Value ± 50-Units $3.7 Million ACT ID: Y

8 16.8 MILES TO BOULDER N LAKE ARBOR GOLF COURSE DOWNTOWN WESTMINSTER MIXED-USE DEVELOPMENT WATER WORLD W S E PARR ELEMENTARY SCHOOL BELLEVIEW CHRISTIAN COLLEGE RANUM MIDDLE SCHOOL METZ ELEMENTARY SCHOOL NORTH PECOS STREET INDIAN TREE GOLF COURSE ARVADA SENIOR HIGH SCHOOL WADSWORTH BOULEVARD - 48,000 VPD NORTH ARVADA MIDDLE SCHOOL 72ND FRONTAGE ROAD - 36,000 VPD MCDONALDS SWANSON ELEMENTARY SCHOOL INSET PG 1 SHERIDAN BOULEVARD - 37,000 VPD HARRIS PARK ELEMENTARY SCHOOL SUBJECT PROPERTY WESTMINSTER HIGH SCHOOL FEDERAL BOULEVARD - 48,000 VPD WESTMINSTER ELEMENTARY SCHOOL HIDDEN LAKE HIGH SCHOOL US ROUTE ,000 VPD SCOTT CARPENTER MIDDLE SCHOOL WALGREENS 6.9 MILES TO DENVER FINANCIAL ANALYSIS

9 SITE PLAN W E S PROPOSED LIVE/WORK STUDIOS PROPOSED COMMERCIAL SENIOR LIVING 71 UNITS PERFORMANCE VENUE PROPOSED COMMERCIAL SU BJ EC TP RO PE RT Y ACT ID: Y DE NNY S -AT & T- CRI CKE T CE N T E R D E N VE R ( W E ST M I NST ER ), CO N PROPOSED 51 SINGLE FAMILY TOWNHOMES 7

10 RENT ROLL LEASE SUMMARY TENANT GUARANTY NET WORTH GLA GLA % WESTMINSTER RENT ROLL LEASE COMMENCES LEASE EXPIRES TERM REMAINING BASE RENT MONTHLY RENT/SF NEXT INCREASE RENT INCREASE AT&T 70-Unit $10.8M 1, % Years $44, $ $47,472 NNN 2, 5Yr Cricket 50-Unit $3.7M 1, % Years $37, $ $40,700 NNN 2, 5Yr Denny s 23-Unit $10.8M 3, % Years $144, $ $158,400 NNN 4, 5Yr Mechanical Room % ,464 $225,160 $2.90 $246,572 LEASE TYPE OPTIONS Tenants reimburse their Proportionate Share of costs for operation, maintenance, repair and replacement of the Building and the Common Areas, including management, parking, sidewalks, cleaning of the Common Areas, trash removal, insurance, loss of rents insurance, deductibles, sanitation, snow and ice removal, refuse receptacles, landscaping, directional signs, lighting, utility lines, services are not separately metered, roof, glass. Landlord pays a prorata share of the CAM associated with the Larger Parcel; Tenant shall pay its Proportionate Share. Tenant shall pay all costs in connection with HVAC maintenance contract, enforcing any HVAC warranties and replace the HVAC system when required. 8

11 OFFERING SUMMARY SENIOR LIVING 71 UNITS 7211 SHERIDAN BOULEVARD WESTMINSTER, CO OFFERING SUMMARY Price $3,752,700 Cap Rate 6.00% Gross Leasable Area (GLA) ± 6,464 SF Lot Size ±41,908 SF Year Built/Remodeled 2017 Ownership Fee Simple ACT ID: Y

12 N W E S DENVER INTERNATIONAL AIRPORT SUBJECT PROPERTY DICK S SPORTING GOODS PARK (RAPIDS, MLS) PEPSI CENTER (NUGGETS, NBA; AVALANCHE, NHL) MILE HIGH STADIUM (BRONCOS, NFL) COORS FIELD (ROCKIES, MLB) DENVER ZOO COLORADO STATE CAPITOL DEMOGRAPHIC & MARKET OVERVIEW

13 DEMOGRAPHIC ANALYSIS Geography: 5-Mile Radius Population 1-Mile 3-Miles 5-Miles 2014 Population 19, , , Population 19, , ,708 Households 1-Mile 3-Miles 5-Miles 2014 Households 7,790 52, , Households 7,869 53, , Average HH Size Daytime Population 3,417 41, , Owner Occupied Housing Units 60.55% 58.77% 60.52% 2014 Renter Occupied Housing Units 39.45% 41.23% 39.48% 2014 Vacant 1.38% 1.31% 1.55% 2019 Owner Occupied Housing Units 60.28% 58.05% 59.97% 2019 Renter Occupied Housing Units 39.72% 41.95% 40.03% 2019 Vacant 1.44% 1.31% 1.57% Income 1-Mile 3-Miles 5-Miles $ 0 - $ 14, % 11.5% 11.0% $ 15,000 - $24, % 12.0% 11.5% $ 25,000 - $34, % 11.0% 11.0% $ 35,000 - $49, % 16.9% 15.6% $ 50,000 - $74, % 20.7% 20.0% $ 75,000 - $99, % 13.2% 13.0% $100,000 - $124, % 7.4% 8.0% $125,000 - $149, % 3.0% 4.2% $150,000 - $200, % 2.8% 3.7% $200,000 to $249, % 0.7% 0.9% $250, % 0.8% 1.3% 2014 Median HH Income $48,684 $48,580 $50, Per Capita Income $23,586 $24,078 $26, Average HH Income $59,013 $60,999 $66,317 POPULATION: In 2014, the population in your selected geography is 336,436. The population has changed by 5.23% since It is estimated that the population in your area will be 339,708 five years from now, which represents a change of 0.97% from the current year. The current population is 49.53% male and 50.46% female. The median age of the population in your area is 36.0, compare this to the Entire US average which is The population density in your area is 4, people per square mile. HOUSEHOLDS: There are currently 134,497 households in your selected geography. The number of households has changed by 8.58% since It is estimated that the number of households in your area will be 136,947 five years from now, which represents a change of 1.82% from the current year. The average household size in your area is 2.48 persons. INCOME: In 2014, the median household income for your selected geography is $50,963, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 11.70% since It is estimated that the median household income in your area will be $58,675 five years from now, which represents a change of 15.13% from the current year. The current year per capita income in your area is $26,639, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $66,317, compare this to the Entire US average which is $74,533. RACE AND ETHNICITY: The current year racial makeup of your selected area is as follows: 79.06% White, 1.45% Black, 0.11% Native American and 2.96% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 32.57% of the current year population in your selected area. Compare this to the Entire US average of 17.13%. HOUSING: In 2000, there were 83,693 owner occupied housing units in your area and there were 40,168 renter occupied housing units in your area. The median rent at the time was $631. EMPLOYMENT: In 2014, there are 120,319 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 61.44% of employees are employed in white-collar occupations in this geography, and 41.24% are employed in blue-collar occupations. In 2014, unemployment in this area is 7.65%. In 2000, the average time traveled to work was 27.7 minutes. ACT ID: Y

14 MARKET PHOTOS MAIN: WESTMINSTER CASTLE MAIN BUILDING OF WESTMINSTER UNIVERSITY PROPERTY, NOW HOME TO BELLEVIEW CHRISTIAN SCHOOLS OPPOSITE TOP: DOWNTOWN DENVER MAJOR LOGISTICS & ECONOMIC HUB FOR THE WESTERN US; 3.4 MILLION RESIDENTS IN THE CSA OPPOSITE BOTTOM: CONCERT AT RED ROCKS AMPHITHEATRE WORLD FAMOUS PERFORMANCE VENUE LOCATED 10 MILES WEST; SEATING OF ±9,500; SITE OF COLORADO MUSIC HOF 12

15 MARKET INFORMATION MAJOR EMPLOYERS Bell Corporation St Anthony s North Hospital DigitalGlobe McKesson Technology Solutions Trimble Navigation Alliance Data Systems Tri-State Generation 934 Employees 895 Employees 650 Employees 610 Employees 568 Employees 543 Employees 522 Employees With over 4,000 businesses are located in Westminster, including small, family-owned companies, service companies, high-tech manufacturers, and national and international headquarters. With a concentration of intellectual capital, Westminster companies draw from a large pool of educated residents. Our top 10 private employers represent leading companies in high-tech, medical, energy, and other expanding fields. The attractive business parks come equipped with high-tech and highspeed telecommunication structures so you can set up operations quickly. And, Westminster has one of the largest concentrations of retail developments in the metro area. ECONOMIC INDICATORS Unemployment 2.7% Median Home Price $275,500 Retail Vacancy 11.5% Residential Vacancy 4.24% Economic Output $193.2 Billion ACT ID: Y

16 EXCLUSIVELY LISTED BROKER OF RECORD OFFICES NATIONWIDE RICHARD BIRD MARCUS & MILLICHAP COLORADO DENVER, CO TEL: (303) FAX: (303) LICENSE: ER