Single Tenant ABSOLUTE NNN INVESTMENT OPPORTUNITY Bisbee, Arizona REPRESENTATIVE PHOTO
CONTENTS 2 CONTENTS INVESTMENT SUMMARY...3 HIGHLIGHTS...4 PROPERTY DESCRIPTION...5 AERIAL VIEW & SITE PLAN...6 AREA OVERVIEW...10 RENT ROLL...11 This Off ering Memorandum has been prepared by SRS and has been approved for distribution by the owner. Although eff ort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this off ering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in eff ect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Off ering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment. EXCLUSIVELY MARKETED BY MATTHEW MOUSAVI Managing Principal 610 Newport Center Drive, Suite 400 Newport Beach, CA 92660 DL: 949.698.1116 M: 714.404.8849 Matthew.Mousavi@srsre.com CA License No. 01732226 PATRICK R. LUTHER, CCIM Managing Principal 610 Newport Center Drive, Suite 400 Newport Beach, CA 92660 DL: 949.698.1115 M: 480.221.4221 Patrick.Luther@srsre.com AZ License No. BR579712000 REPRESENTATIVE PHOTO ED BEEH EVP & Market Leader 3131 East Camelback Road, Suite 110 Phoenix, AZ 85016 DL: 602.682.6040 M: 602.980.3553 Ed.Beeh@srsre.com License No. BR032807000
INVESTMENT SUMMARY 3 BURGER KING - BISBEE, ARIZONA SRS is pleased to present the rare opportunity to acquire the fee simple interest (land & building) in a freestanding, single tenant, absolute NNN-leased, Burger King with drive-thru, and outparcel to Safeway grocery anchored shopping center located in Bisbee, AZ. The tenant, Burger King, has approximately 19 years remaining in the current term. The lease features 1% annual increases beginning in 2021 and each of the 4 (5-year) option periods, which generates steady NOI grown and hedges against inflation. Bisbee is nestled in the mile-high Mule Mountains of southern Arizona and has maintained an Old World charm seldom found anywhere in the United States. The subject property is one of only two fast food restaurants in Bisbee and is ideally located along Naco Highway, a major north-south corridor. There are more than 5,800 permanent residents with an average household income higher than $53,400 within 5 miles of the property. OFFERING Pricing: $1,705,000 Net Operating Income: $95,464 Cap Rate: 5.60% Guaranty: Franchisee Lease Type: Abs. NNN Landlord Responsibilities: None REPRESENTATIVE PHOTO PROPERTY SPECIFICATIONS Rentable Area: 1,852 SF Land Area: 0.69 Acres Property Address: 101 Naco Highway, Bisbee, AZ 85603 Year Built / Remodeled: 1989 / 2008 Parcel Number: 102815063B Ownership: Fee Simple (Land and Building)
HIGHLIGHTS 4 Franchisee Guaranteed, Long-Term Lease With Rental Increases Burger King currently has 19 years remaining in the current term The lease features annual 1% rent increases starting in April 2021 Personal guarantee from experienced franchisee operating 59 units Absolute NNN Lease / Fee Simple Ownership / Zero Responsibilities Tenant pays for all CAM, insurance, taxes, and maintains all aspects of the building No landlord responsibilities Ideal, management-free investment for an out-of-state, passive investor Drive-Thru Building / Limited Competition / Strong Sales This feature provides ease and convenience for customers One of only two fast food restaurants in Bisbee, AZ Healthy rent to sales ratio of 9% Situated Along Arizona State Route 92 / Prominent Signage The property is located just off Arizona State Route 92, which connects Arizona State Route 80 to Arizona State Highway 90 Prominent signage further increases visibility for the tenant Two access points to building Outparcel To Safeway Grocery Anchored Center Tenants include: Safeway and Family Dollar, H&R Block, & Farmers Insurance REPRESENTATIVE PHOTO
PROPERTY DESCRIPTION 5 PROPERTY DESCRIPTION PARCEL Parcel: 10215063B Acres: 0.69 Square Feet: 30,000 SF ZONING Commercial ACCESS There are a total of two (2) access points along Naco Highway. TRAFFIC COUNTS State Highway 92:...3,700 IMPROVEMENTS There is approximately 1,852 SF of existing building area. PARKING There are approximately 44 parking spaces on the owned parcel. The parking ratio is approximately 23.22 per 1,000 SF of leasable area. REPRESENTATIVE PHOTO YEAR BUILT / REMODELED 1989 / 2008
AERIAL VIEW 6
AERIAL VIEW 7
LOCATION MAP 8 2015 ESTIMATED POPULATION 1 Mile... 1,600 3 Mile... 4,920 2015 AVERAGE HOUSEHOLD INCOME 1 Mile...$48,506 3 Mile...$44,769 TUCSON 2015 ESTIMATED TOTAL EMPLOYEES 1 Mile... 1,365 3 Mile... 4,290 EL PASO BISBEE
BURGER KING BISBEE, ARIZONA SITE PLAN 9 Drive Thru Monument Sign Naco Hwy.
HIGHLIGHTS 10 CITY OF BISBEE Bisbee is a city in Cochise County, Arizona, United States, 92 miles (148 km) southeast of Tucson. The estimated population of the city was 5,308 as of 2014. The city is the county seat of Cochise County. Bisbee was founded as a copper, gold, and silver mining town in 1880, and named in honor of Judge DeWitt Bisbee, one of the financial backers of the adjacent Copper Queen Mine. Bisbee s diverse economy includes government, light manufacturing, tourism, and retirement. Historic Bisbee is a registered National Historic District. Seven miles from the international border, Bisbee serves as the major transportation link for the twin plant manufacturing operations in Naco and Cananea, Sonora, Mexico. Bisbee also serves as an ideal overnight home-base for visitors birders, hikers, wine-tasters, music-appreciators, and others who wish to explore there geologically, biologically and culturally rich Sky Islands region. DEMOGRAPHICS 1 Mile 3 Miles 5 Miles 2015 Estimated Population 1,600 4,920 7,255 2020 Projected Population 1,539 4,744 7,046 2010 Census Population 1,698 5,211 7,602 2000 Census Population 1,626 5,502 8,031 2015 Estimated Households 657 2,269 3,191 2020 Projected Households 634 2,195 3,104 2010 Census Households 691 2,379 3,316 2000 Census Households 650 2,450 3,472 DISTANCE TO POINTS OF INTEREST 3.3 MILES Lavender Open Pit Mine 4.7 MILES Mule Mountains 4 MILES Turquoise Valley Golf 6.5 MILES Bisbee Municipal Airport 2015 Estimated White 81.91% 81.64% 80.23% 2015 Estimated Black or African American 1.06% 0.96% 1.16% 2015 Estimated Asian or Pacific Islander 0.75% 0.47% 0.44% 2015 Estimated American Indian or Native Alaskan 1.25% 1.34% 1.39% 2015 Estimated Other Races 12.58% 11.91% 12.94% Estimated Hispanic 53.44% 48.23% 46.71% 2015 Estimated Average Household Income $48,506 $44,769 $44,945 2015 Estimated Median Household Income $37,457 $35,518 $35,651 2015 Estimated Per Capita Income $19,695 $19,944 $20,307 0.06 MILES 0.2 MILES 2015 Estimated Total Businesses 128 446 502 2015 Estimated Total Employees 1,365 4,290 4,791 0.2 MILES 0.2 MILES
RENT ROLL 11 Burger King Starbucks Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coff ee worldwide. The company operates in four locations segments: in approxi- Americas, Europe, Africa, and China/Asia Pacific. Starbucks stores off er coff ee and tea beverag- Burger King is the second largest fast food hamburger chain in the world. The original HOME Company Type: Subsidiary to (NYSE: QSR) OF THE WHOPPER, the Burger King system operates more than14,000 QSR 2015 Revenue:... $4 Billion QSR 2015 Assets:... $1.37 Billion mately 100 countries and U.S. territories. Almost 100 percent of es, Burger packaged King Restaurants roasted whole are bean and ground coff ees, and other bottled beverages. Its stores also provide fresh food owned and operated by independent franchisees, many of them off erings family-owned such as operations pastries, breakfast QSR 2015 sandwiches, Net Income: and... lunch $375 items. Million As of August QSR 2015 27, 2015, Equity: Starbucks... operates $4.63 Billion 21,000 that have been in business for decades. The Burger King brand stores. is Starbucks owned by Restaurant was founded in 1985 and is headquartered in Seattle, Washington. Brands International Inc. (TSX,NYSE:QSR), one of the world s largest quick service restaurant companies with more than $23 billion in system sales and over 19,000 restaurants. The Company was founded in 1954 and is headquartered in Miami-Dade County, Florida. Tenant Name Square Feet Lease Start Lease End Begin Monthly Annually Recovery Type Options: 4 (5-Year) Burger King 1,852 TBD 19 Years Current $7,955 $95,464 Abs. NNN @ Annual 1% increases Apr 2021 $8,035 $96,419 Apr 2022 $8,115 $97,383 Note: 1% annual rental increases starting 2021 FINANCIAL INFORMATION Price:...$1,705,000 Net Operating Income:...$95,464 Cap Rate:...5.60% Lease Type:... Absolute NNN PROPERTY SPECIFICATIONS Address:...101 Naco Highway, Bisbee, AZ 85603 Year Built / Remodeled:... 1989 / 2008 Rentable Area:... 1,852 SF Parcel Number:...102815063B REPRESENTATIVE PHOTO
REPRESENTATIVE PHOTO