Muchas Gracias Albany, or. SINGLE TENANT NNN LEASE WITH long remaining term 2697 Pacific Blvd. SE, Albany, OR [

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1 Muchas Gracias Albany, or Albany, OR SINGLE TENANT NNN LEASE WITH long remaining term 2697 Pacific Blvd. SE, Albany, OR [ ]

2 Investment Highlights MUCHAS GRACIAS IS A NET-LEASED DRIVE-THRU ASSET WITH A 10-YEAR REMAINING TERM IN ALBANY, OR. The offering provides the opportunity to acquire a single-tenant asset occupied by a regional restaurant chain in Oregon and Washington. The Property sits on the highly visible hard corner of Pacific Boulevard and Waverly Drive, exposed to strong traffic counts of 22,100 vehicles per day, and is located less than one mile west from the Interstate-5 exit ramp. The Property is in close proximity to a brand new WinCo Foods just one half-mile east of the Property, adjacent to a Costco and Kohls. Muchas Gracias is personally guaranteed by the leaseholder. The Tenant has an eight-year history in this location and recently renewed their lease for seven additional years, providing upside on a 10-year remaining term with annual increases. Muchas Gracias is a recognized successful northwest Mexican restaurant chain with 36 locations in operation throughout Oregon and SW Washington. The Company has been in business for just over 20 years. PRICE: $890,000 CAP: 7.00% LEASABLE SF...±1,407 SF LAND AREA...±13,068 SF LEASE TYPE NNN LEASE EXPIRATION...7/31/2026 YEAR BUILT CURRENT RENT...$42.57/SF PARKING...±13 Spaces or 9.2/1,000 SF ADDRESS: 2697 Pacific Blvd. SE, Albany, OR MUCHAS GRACIAS - ALBANY 2

3 Core Characteristics MINIMAL LANDLORD RESPONSIBILITIES 10-YEAR LEASE LONG TERM TENANT WITH RENT GROWTH The Tenant has resided at the Property for eight years and recently renewed their lease for an additional seven years, providing a 10-year remaining lease term and demonstrating the Tenant s commitment to this location. The lease calls for 2% annual rent increases, providing yield upside through an investor s holding period. The lease is personally guaranteed. FEW LANDLORD RESPONSIBILITIES The Tenant operates within the terms of a NNN lease and is responsible for the direct payment of all property taxes, fire and liability insurance policies, as well as all maintenance and repair to the premises. Landlord responsibilities are minimal, exclusive to building structure and roof maintenance and repair. VIBRANT RETAIL TRADE AREA Muchas Gracias is situated within a prominent retail corridor on the highly visible hard corner of Pacific Boulevard and Waverly Drive, benefiting from the draw to the trade area through co-tenancy with national retailers in close proximity, specifically a Costco and Kohls one half-mile east, directly off Pacific Boulevard. Notably, a brand new WinCo Foods opened in early 2016 roughly one half of a mile directly east of the Property, deepening the daily draw to the area. EXCELLENT VISIBILITY AND CLOSE PROXIMITY TO INTERSTATE 5 Muchas Gracias is located less than one mile west from the on and off ramps to Interstate 5, the main north/south arterial through the city. The Property sits along Pacific Boulevard, a primary east/west arterial in Albany that drives traffic east toward Interstate 5 and west, away from Interstate 5 and directly past the Subject, with daily traffic counts of 22,100 vehicles per day. MUCHAS GRACIAS - ALBANY 3

4 ABOUT Muchas Gracias first opened for business in 1996 in Vancouver, Washington by entrepreneur Rodolfo Sánchez. Ten years later, there are 36 locations in operation throughout Oregon and southwest Washington. The corporate structure provides the opportunity to open additional locations through their franchise program. 36 TOTAL LOCATIONS (IN OR & WA) FOUNDED IN 1996 WASHINGTON STATE 24HR RESTAURANT MUCHAS GRACIAS MUCHAS GRACIAS - ALBANY 4

5 Aerial ADDITIONAL RETAIL HERITAGE MALL ALBANY PLAZA HERITAGE PLAZA Arby s Baskin Robbins Big 5 Sporting Goods Bi-Mart Carl s Jr Costco Dairy Queen Brazier Denny s Dutch Bros Goodwill Home Depot Jack in the Box JoAnn Fabrics & Crafts Kohl s Les Schwab Tire Center McDonald s Oil Can Henry s Petco Sizzler Sprint Store Staples Starbucks Taco Bell Taco Time Verizon Walgreens Walmart GNC Hobby Lobby Old Navy Sears Target CLICK HERE FOR FULL LIST OF RETAILERS Aaron s Academy of Cosmetology Carl s Jr Dollar Tree Elmer s Sportsman s Warehouse Supercuts Applebee s Big Lots Burger King Del Taco Grocery Outlet Marshall s Safeway Starbucks KNOX BUTTE RD E Muchas GRacias 99E 22,100 DAILY PACIFIC BLVD SE 5 22,768 DAILY 58,100 DAILY 20 SANTIAM HWY SE MUCHAS GRACIAS - ALBANY 5

6 Site Muchas GRacias WAVERLY ELEMENTARY SCHOOL 22,100 DAILY PACIFIC BLVD SE 9,500 DAILY MUCHAS GRACIAS - ALBANY 6

7 Site Plan SE 4th Ave SITE PLAN KEY PARCEL OUTLINE: LAND AREA: LEASABLE AREA: ±13,068 SF ±1,407 SF NOT A PART: PYLON SIGN: INGRESS/EGRESS: DRIVE THRU Waverly Dr SE NOT A PART PYLON SIGN 99E Pacific Blvd SE 22,100 DAILY Site Plan Not to Scale MUCHAS GRACIAS - ALBANY 7

8 Financial Summary PRICE $890,000 Capitalization Rate: 7.00% Price Per Foot: 1,407 Square Feet $633 NET OPERATING INCOME SUMMARY SCHEDULED INCOME Per SF Scheduled Rent: 1/1/2017 $42.57 $59,897 Plus: Management Fee* $1.28 $1,797 Equals: Effective Gross Income $44.20 $62,193 Less: OPERATING EXPENSES Per SF CAMS Property Taxes Insurance Total Operating Expenses NNN NNN NNN Equals: NET OPERATING INCOME $62,193 * Tenant pays Landlord management fee of 3% of annual base rent. 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. MUCHAS GRACIAS - ALBANY 8

9 Rent Roll TENANT INFO TERM RENT SUMMARY Tenant Name Size Date Monthly Rent Percent Increase Annual Rent PSF Cap Rate Muchas Gracias 1,407 8/1/2016 $4,991 $59,897 $ % 8/1/2017 $5, % $61,094 $ % Occupancy Date : 6/10/2008 8/1/2018 $5, % $62,316 $ % Lease Expiration : 7/31/2026 8/1/2019 $5, % $63,563 $ % 8/1/2020 $5, % $64,834 $ % 8/1/2021 $5, % $66,131 $ % 8/1/2022 $5, % $67,453 $ % 8/1/2023 $5, % $68,802 $ % 8/1/2024 $5, % $70,178 $ % 8/1/2025 $5, % $71,582 $ % Lease Notes Option 1 8/1/2026 $6, % $73,014 $ % 8/1/2027 $6, % $74,474 $ % 8/1/2028 $6, % $75,963 $ % 8/1/2029 $6, % $77,483 $ % 8/1/2030 $6, % $79,032 $ % Comments: NNN Lease - Tenant is responsible for all property taxes, insurance, and all maintenance and repair needed at the Premises, including utilities, landscaping, and 3% management fee. Landlord is responsible for building structure and roof. Lease is personally guaranteed. Current Totals: 1,407 $4,991 $59,897 $ % 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. MUCHAS GRACIAS - ALBANY 9

10 Lease Abstract OPERATING EXPENSES TAXES Tenant is responsible for reimbursement of all Property Taxes for the Premises. INSURANCE Tenant shall pay directly to insurer for a General Liability policy and reimburse Landlord for Casualty insurance protecting against fire, earthquake, and flood insurance. PREMISES/TERM SQUARE FEET 1,407 SF LEASE TYPE NNN COMMENCEMENT 6/10/2008 CURRENT EXPIRATION 7/31/2026 OPTIONS ONE 5-YEAR OPTION; 180 DAYS NOTICE BASE RENT Date Monthly Payment Annual Payment 8/1/2016 7/31/2017 $4,991 $59,897 8/1/2017 7/31/2018 $5,091 $61,094 8/1/2018 7/31/2019 $5,193 $62,316 8/1/2019 7/31/2020 $5,297 $63,563 8/1/2020 7/31/2021 $5,403 $64,864 8/1/2021 7/31/2022 $5,511 $66,131 8/1/2022 7/31/2023 $5,621 $67,453 8/1/2023 7/31/2024 $5,734 $68,802 8/1/2024 7/31/2025 $5,848 $70,178 8/1/2025 7/31/2026 $5,965 $71,582 UTILITIES Tenant is responsible for direct payment of all utilities used at the Premises. TENANT S OBLIGATIONS Tenant is responsible for all maintenance and repair to the premises, inclusive of all electrical, plumbing, and glass, as well as a full reimbursement to Landlord for all common area operating expenses and a 3% management fee. LANDLORD S OBLIGATIONS Landlord shall maintain all common areas of the property, including ice and snow removal, parking lot, landscaping etc., to be fully reimbursed by Tenant. Landlord is responsible for building structure and roof repair/replacement, not to be reimbursed by Tenant. ASSIGNMENT/SUBLETTING Tenant may not assign or sublease any interest in the Premises without prior written consent of the Landlord. GUARANTY Lease is Personally Guaranteed. OPTION PERIOD Increases 2% Annually Date Monthly Payment Annual Payment 8/1/2026 7/31/2027 $6,084 $73,014 8/1/2027 7/31/2028 $6,206 $74,474 8/1/2028 7/31/2029 $6,330 $75,963 8/1/2029 7/31/2030 $6,457 $77,483 8/1/2030 7/31/2031 $6,586 $79,032 MUCHAS GRACIAS - ALBANY 10

11 Area Intel & Demos POPULATION 1-Mile 3-Mile 5-Mile ,133 44,626 56, ,329 45,189 57, ,518 45,997 58,941 ABOUT ALBANY Albany is the eleventh largest city in the State of Oregon. Albany is primarily a farming and manufacturing city, founded around The city provides the population with access to over 30 parks and trails, a senior center, and many cultural events. In addition to farming and manufacturing, the city s economy depends on retail trade, health care, and social assistance HOUSEHOLD INCOMES 1-Mile 3-Mile 5-Mile Median $33,677 $45,620 $51,005 Average $46,606 $57,410 $63,621 portland MUCHAS GRACIAS 3 Miles 5 Miles 1 Mile Salem 70.5 Miles 1 Hr 12 Min 25.6 Miles 32 Min Albany MUCHAS GRACIAS - ALBANY 11

12 THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS [ ] PETER DUNN pdunn@capitalpacific.com (503) MICHAEL HORWITZ mhorwitz@capitalpacific.com (503) SCOTT FRANK sfrank@capitalpacific.com (503) KEVIN ADATTO kadatto@capitalpacific.com (503) SEAN MACK smack@capitalpacific.com (503) SEAN TUFTS stufts@capitalpacific.com (206) DAVID GELLNER dgellner@capitalpacific.com (206) [ Copyright 2016 Capital Pacific LLC ]