OFFERING MEMORANDUM BURGER KING 5524 E Grant Rd Tucson, AZ 85712
EXCLUSIVE LISTING AGENTS: MITCHELL GLASSON Associate DIR 949 432 4502 MOB 707 364 5650 mitchell.glasson@matthews.com LIC # 02016029 (CA) DON MORTENSEN Broker of Record LIC # LC635678000 WESLEY CONNOLLY Senior Associate DIR 949 432 4512 MOB 707 477 7185 wesley.connoly@matthews.com LIC # 01962332 (CA) OFFERING MEMORANDUM Burger King 5524 E Grant Rd Tucson, AZ 85712
CONTENT EXECUTIVE SUMMARY 3 PROPERTY OVERVIEW 6 TENANT OVERVIEW 9 AREA OVERVIEW 11 fedexground Tucson, AZ 2
EXECUTIVE SUMMARY 3 MATTHEWS REAL ESTATE INVESTMENT SERVICES
OFFERING SUMMARY Wesley Connolly and Mitchell Glasson with Matthews Retail Investment Services have been retained by the ownership to exclusively present the sale of this Burger King net lease investment. The unique thing about the offering is that there are less than three years remaining on the original lease with no tenant options to renew, creating a great possible value add opportunity. The property is located in the affluent northeast Tucson, Arizona market located directly across the street from the expansive Tucson Medical Center. The location benefits from dense demographics with a surrounding population of over 265,000+ in a 5-mile radius. Situated directly off of a major thoroughfare, the average traffic volume is over 62,000 cars per day. If you have any questions or would like more information, please reach out to the listing brokers. Burger King Tucson, AZ 4
BURGER KING 5524 E Grant Rd. Tucson, AZ 85712 PRICE $1,300,000 CURRENT CAP 6.34% GLA 2,277 SF LOT SIZE 0.46 Acres YEAR BUILT 1984 TENANT SUMMARY TENANT Burger King TYPE OF OWNERSHIP Fee Simple LEASE GUARANTEE Franchisee LEASE TYPE NNN ROOF AND STRUCTURE Tenant Responsibility ORIGINAL LEASE TERM 15 Years LEASE COMMENCEMENT DATE 2/1/2005 LEASE EXPIRATION DATE 1/31/2020 TERM REMAINING ± 2.5 Years INCREASES Fixed Schedule OPTIONS None ANNUALIZED OPERATING DATA MONTHLY ANNUAL RENT RENT/SF CAP RATE CURRENT - 1/31/2020 $6,869 $82,428 $36.20 6.34% 5 MATTHEWS REAL ESTATE INVESTMENT SERVICES
PROPERTY OVERVIEW Burger King Tucson, AZ 6
PROPERTY OVERVIEW THE OFFERING ADDRESS 5524 E Grant Rd Tucson, AZ 85712 APN 121-05-023A GLA ± 2,277 SF LOT SIZE ± 0.46 Acres (30,4920 SF) SITE DESCRIPTION E. Grant Road ± 62,000 ADT NUMBER OF STORIES One YEAR BUILT 1984 TYPE OF OWNERSHIP Fee Simple LANDSCAPING Professional TOPOGRAPHY Generally Level 7 MATTHEWS REAL ESTATE INVESTMENT SERVICES
TENANT MAP Burger King Tucson, AZ 8
TENANT OVERVIEW 9 MATTHEWS REAL ESTATE INVESTMENT SERVICES
Property Name Parent Company Trade Name Ownership Burger King Restaurant Brands International, Inc. (NYSE: QSR) Public Credit Rating (Standard & Poor s) B+ Revenue Net Income $1.15 B $233.70 M No. of Locations ± 15,000 No. of Employees ± 34,248 Headquartered Miami, FL Website www.bk.com Year Founded 1953 TENANT OVERVIEW Burger King Worldwide operates the world s #3 hamburger chain by sales with almost 15,000 restaurants in the US and more than 100 other countries. In addition to its popular Whopper sandwich, the chain offers a selection of burgers, chicken sandwiches, salads, and breakfast items, along with beverages, desserts, and sides. Many of the eateries are stand-alone locations offering dine-in seating and drive-through services; the chain also includes units in hightraffic locations such as airports and shopping malls. Burger King Worldwide is owned and operated by Restaurant Brands International. GEOGRAPHIC OUTREACH Burger King has restaurant locations throughout the US and more than 100 other countries. The US and Canada are responsible for about 65% of revenues. Like most other giants of the fast-food industry, Burger King has expanded its nationwide and international presence primarily through franchising. But the company has reduced its domestic expansion efforts recently. Burger King has used joint ventures to expand in countries like China, Mexico, Russia, and Singapore. Burger King Tucson, AZ 10
AREA OVERVIEW 11 MATTHEWS REAL ESTATE INVESTMENT SERVICES
TUCSON, AZ Located along the banks of the Santa Cruz River, Tucson is the second-largest populated city in Arizona behind Phoenix. The population continues to grow at a steady rate each year. The city is situated in the Sonoran Desert, surrounded by multiple mountain ranges including Wasson Peak, Santa Catalina Mountains, Rincon Mountains and the Santa Rita Mountains. While Tucson is a premier vacation destination, it is also a prime place to live and work. With an average of 350 sunny days per year, the city attracts people from all over the United States. Tucson is located in Pima County. The majority of the population in Pima lives in or around Tucson. Pima County is also designated as the Tucson Metropolitan Statistical Area. In the past year, the unemployment rate in the Tucson MSA has continued to drop with the average household income being $56,721. POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 12,572 99,566 260,888 2017 Estimate 12,480 98,293 257,599 2010 Census 12,538 98,669 258,466 Growth 2017-2022 0.74% 1.29% 1.28% HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2022 Projection 6,072 49,079 121,005 2017 Estimate 5,933 47,930 118,231 2010 Census 5,833 47,148 116,416 2000 Census 6,348 47,189 116,356 Growth 2017-2022 2.34% 2.40% 2.35% Growth 2010-2017 1.71% 1.66% 1.56% INCOME 1 Mile 3 Mile 5 Mile 2017 Est. Average Household Income $56,721 $59,019 $61,466 Burger King Tucson, AZ 12
ECONOMY The University of Arizona is the second largest employer in Tucson and most of the city s economic development has been centered around the development of this school. The campus provides many jobs for those who reside in Tucson. The development of high-tech industries has increased due to the presence of U of A. Tourism is another huge industry aside from the university as it alone brings in $2 billion per year and over 3.5 million visitors due to the sunny weather (an average of 350 sunny days per year), resorts, and attractions. 13 MATTHEWS REAL ESTATE INVESTMENT SERVICES
TOP EMPLOYERS # EMPLOYERS EMPLOYEES 1 Raytheon Missile Systems 12,053 2 University of Arizona 12,053 3 Davis Monthan Air Force Base 10,330 4 Walmart 7,629 5 Pima County 6,835 6 Tucson Unified School District 6,771 7 University of Arizona Health Network 6,462 8 United States Army Intelligence Center & Fort Huachuca 6,198 9 U.S. Customs and Border Protection 6,000 10 City of Tucson 5,419 NEARBY CITIES Distance and Population CITY DISTANCE (miles) POPULATION Catalina Foothills 4.5 50,796 Casa Adobes 14 66,795 Marana 25 38,290 Green Valley 33 23,765 Sierra Vista 76 45,129 Phoenix 116 1.5 M Burger King Tucson, AZ 14
POINTS OF INTEREST DAVIS-MONTHAN AIR FORCE BASE OLD TUCSON STUDIOS REID PARK ZOO This non-government funded aerospace museum takes over 127 acres displaying nearly 300 aircrafts. Located next to the Davis-Monthan Air Force Base, the museum started as a place to store historic aircrafts that were used in World War II. From there the display became more and more known and is now a popular historic spot. This old west town was the location for over 300 movies and TV show. The site is now used to offer educational programs about the culture in Sonora during 1850-1912 as well as historic tours, shows and special events. Old Tucson Studios is a prime location for a Western experience. The Reid Park Zoo s mission is to encourage commitment to the conservation of biological diversity and to provide educational and fun experiences for visitors of all ages. The accredited zoo is a 24-acre facility that houses hundreds on animals. In order to be accredited, they go through a thorough investigation to ensure they meet the standards of animal care. ARIZONA-SONORA DESERT MUSEUM ARIZONA-SONORA DESERT MUSEUM The mission of the museum is to inspire those who visit to live in harmony with nature. The Arizona-Sonora Desert Museum was coined as one of the Top 10 Museums in the country and the #1 Tucson attraction by TripAdvisor. The museum spans over 98 acres and is a fusion of a zoo, botanical garden, art gallery, natural history museum, and aquarium. KITT PEAK NATIONAL OBSERVATORY KITT PEAK NATIONAL OBSERVATORY Kitt Peak is home to the largest array of optical and radio telescopes in the entire world. While the center is used as a research facility, it is open to the public. They offer tours, stargazing, programs and exhibits with activities both at night and during the day. SAN XAVIER DEL BAC This church is a National Historic Landmark. It is the oldest intact European structure in Arizona. There are museum hours but the church still retains its original purpose of religion. Parts of the church were damaged in an earthquake in 1887 but have since been restored. 15 MATTHEWS REAL ESTATE INVESTMENT SERVICES
UNIVERSITY OF ARIZONA (U OF A) Founded in 1885, the University of Arizona (U of A) was the first university in Arizona. Since then, the school has become a well-known name, both nationally and internationally. Along with undergraduate programs, the university is affiliated with the region s two medical centers, as well as, the James E. Rogers College of Law. Their graduate program is also nationally ranked. Internationally, they were ranked 68th in the Center for World University Rankings. U of A is the only elected members of the Association of American Universities from the state of Arizona. The university accepts over 43,000 students each academic year, with over 34,000 being undergraduate students. The campus stretches across 380 acres with a total of 179 buildings on the main campus. U of A does not just rank academically, the U of A Wildcats have been Division 1 champions in football, baseball, softball, golf, and basketball. Their well-known motto, Bear Down, Arizona, has become a staple for the school as a whole. Burger King Tucson, AZ 16
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Burger King located at 5524 E Grant Rd., Tucson, AZ 85712 ( Property ). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completweness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
MITCHELL GLASSON Associate DIR 949 432 4502 MOB 707 364 5650 mitchell.glasson@matthews.com LIC # 02016029 (CA) WESLEY CONNOLLY SENIOR ASSOCIATE DIR 949 432 4512 MOB 707 477 7185 wesley.connolly@matthews.com LIC # 01962332 (CA) OFFERING MEMORANDUM Burger King 5524 E Grant Rd Tucson, AZ 85712