buffalo wild wings Representative Photo Absolute net buffalo wild wings in new Mexico 2700 E. Main St, Farmington, NM 87401 JOHN ANDREINI jandreini@capitalpacific.com (415) 274-2715 CA BRE# 01440360 BOB SANNER bsanner@capitalpacific.com (415) 274-2717 CA BRE# 00869657 ZEB RIPPLE zripple@capitalpacific.com (415) 274-2702 CA BRE# 0124540 RICK SANNER rsanner@capitalpacific.com (415) 274-2709 CA BRE# 01792433 CHRIS KOSTANECKI ck@capitalpacific.com (415) 274-2701 CA BRE# 01002010 CHRIS PETERS cpeters@capitalpacific.com (415) 274-2703 CA BRE# 01339983
LONG TERM ABSOLUTE NET LEASE TO BUFFALO WILD WINGS IN FARMINGTON, NEW MEXICO, WHICH IS A BOOMING OIL AND GAS TOWN THAT HAS TAPPED INTO VAST REGIONAL SHALE RESERVES (SEE PAGE 8 FOR MORE INFO) Investment Highlights Area Retail Photo PRICE: $2,861,538 CAP: 6.50% RENTABLE SF... 6,178 LAND AREA... 1.24 Acres YEAR BUILT... 2014 YEAR ONE NOI... $186,000 HIGHLIGHTS: > Hard corner signalized intersection on the premier retail corridor in Farmington > Excellent visibility with 25+ foot monument signage and traffic counts of approximately 40,000 VPD > Brand new construction > Area retailers include Home Depot, Staples, Big Lots, Kmart, McDonalds, Taco Bell, and many other national retailers > 2 points of ingress / egress from both E. Main Street & North Hutton Avenue > Large lot with over 100 parking spaces CONCEPT: BUFFALO WILD WINGS: > Very fast growing sit down casual dining concept > Over 1,000 locations > Over $1.25 billion in revenues in 2013 > Net income up approximately 20% over 2012 OPERATOR: FOOD MANAGEMENT SYSTEMS: > Operator of over 125 restaurants spanning multiple concepts with an executive team that has 20-30 years of restaurant experience. > Franchisee of the year 3 times LEASE HIGHLIGHTS: > 15 year lease > Zero landlord responsibilities > Rental increases of 7.5% every 5 years and in option periods BUFFALO WILD WINGS 2
LOCATION HIGHLIGHTS > Hard corner signalized intersection in the premier retail corridor in Farmington > Dominant visibility with 25+ foot monument signage and traffic counts of approximately 40,000 VPD ard wa y ls Boulev Pla ta H igh Pinion Hil et tre S ain La 2,32 ILY 516 EM DA 35 170 ANIMAS VALLEY MALL Northeast Elementary School E 20th Street FOUR CORNERS REGIONAL AIRPORT Hermosa Middle School 18,556 DAILY McKinley Elementary School 7,090 DAILY Farmington High School N Hutton Avenue W 30th Street Animas Elementary School AILY 70 D 32,0 Tibbetts Middle School Swinburne Elementary School 64 Bro W Broadway Avenue ing wn 516 64 Par y 371 kwa 64 y ighwa Bisti H 64 Bloomfield Highway ALBUQUERQUE BUFFALO WILD WINGS 3
Area Retail Photos Income & Expense PRICE $2,861,538 Price Per Square Foot: $463.18 Capitalization Rate: 6.50% Total Rentable Area (SF): 6,178 Lot Size (Acres): 1.24 Year Built: 2014 STABILIZED INCOME Per Square Foot Scheduled Rent $30.11 $186,000 Effective Gross Income $30.11 $186,000 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses $0.00 EQUALS NET OPERATING INCOME $186,000 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. BUFFALO WILD WINGS 4
Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT Yearly Rent/FT Buffalo Wild Wings 6,178 1 5 $186,000 $15,500 $186,000 $2.51 $30.11 6 10 $16,667 $200,000 $2.70 $32.37 11 15 $18,333 $220,000 $2.97 $35.61 Option 1 16 20 $20,167 $242,000 $3.26 $39.17 Option 2 21 25 $22,183 $266,200 $3.59 $43.09 Current Totals: 6,178 $186,000 $15,500 $186,000 $2.51 $30.11 *Rent is scheduled to commence on June1 st, 2014 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. Area Retail Photo BUFFALO WILD WINGS 5
Tenant BRAND BUFFALO WILD WINGS 600+ RESTAURANTS Buffalo Wild Wings is a casual dining restaurant and bar that is best known as a great place to gather with friends, watch sports, and eat chicken wings. The company opened their first restaurant in 1982 in Columbus, OH, and has since grown to over 1,000 restaurants in almost every U.S. state. They are headquartered in Minneapolis, Minnesota, and both franchise and directly own their restaurants. For the fiscal year 2013, the company reported revenues of more than $1.25 billion, as well as net income growth of approximately 20%. OPERATOR/ FRANCHISEE FOOD MANAGEMENT PARTNERS FRANCHISEE/ GUARANTOR ALAMO WINGS There are four unconditional guarantors of the lease, Alamowing Farmington, LLC, Alamowing, NM partners, LLC, Alamowing NM Partners II, LLC, and BII Wing, LLC. The operator of the store, Food Management Partners is a multi-concept operator of both franchised and independent brands with over 125 currently operating restaurants. It was co-founded in 1999 by three industry veterans with 20-30 years of experience and is based in San Antonio, Texas. FMP was a founding franchisee of Smashburger, and one of the largest Buffalo Wild Wings & Little Caesar s franchisees. They currently operate over 35 Buffalo Wild Wings restaurants in three states, and was franchisee of the year 3 times. They recently acquired 34 Don Pablo s restaurants in 14 states in January 2014. Representative Photo BUFFALO WILD WINGS 6
Regional Map Farmington,NM Location TRAFFIC COUNTS APPROXIMATELY 40,000 VPD ON MAIN ST. ZOE S KITCHEN BUFFALO WILD WINGS Farmington Area Retail Photo Albuquerque BUFFALO WILD WINGS 7
Location & Demos FARMINGTON, NM OVERVIEW Farmington is a city in San Juan County, New Mexico, which is located at the junction of the San Juan River, the Animas River, and the La Plata River, and is located on the Colorado Plateau. Farmington and the surrounding San Juan County make up one of the four MSA s in New Mexico. The primary industries of San Juan County are in the mining of petroleum, natural gas, and coal. Major coal mines include the Navajo and San Juan mines, which are operated by BHP Billiton. The coal from these mines is used entirely for fuel for the nearby Four Corners Generating Station and San Juan Power Plant to produce electric power. In 2013 there were only 2 drilling rigs, with the current rig count of 5 rigs, and the expectations of 8-9 rigs with 200-300 new hires per rig. WPX expects to drill 40 wells, which costs about $5M per well to build. Encana announced earlier this year that they will be spending $600M in drilling activities this year. Logos announced that they received $100M to build a number of wells as well. This is approximately $1 billion in investments made into Farmington. On April 22nd, 2014 Farmington approved the annexation of 888 acres, which incorporates many large businesses including FedEx, San Juan Regional Medical Center, Triple P Oilfield Services, and US West Communications. Only 6% of all the land in San Juan County is owned by private individuals with the remainder owned by Navajo Indian Reservation and the US Government This means that there very limited land available to develop new commercial or residential land. POPULATION 1-Mile 3-Mile 5-Mile 2013 5,231 39,695 49,612 2013 HOUSEHOLD INCOMES 1-Mile 3-Mile 5-Mile Average $44,362 $64,597 $67,127 Median $36,493 $48,272 $48,991 TOP EMPLOYERS IN FARMINGTON Employer # of Employees* San Juan Regional Medical Center 1,600 Farmington Public Schools 1,197 Central Consolidated Schools 1,157 BHP Billiton 1,035 *Approximate BUFFALO WILD WINGS 8