EPRESENTATICE Freddy s Frozen Custard 100 E HIGHWAY 260 PAYSON, Lakewood, AZ 85541 CO Offering Memorandum
AERIAL PHOTO BEELINE HIGHWAY - 20,900 CPD 18,730 CPD NAVIT PAYSON HIGH SCHOOL RIM COUNTY MIDDLE SCHOOL McDonald s 2
AERIAL PHOTO Starbucks 18,730 CPD COMING SOON 3
AERIAL PHOTO N. BEELINE HIGHWAY - 20,900 CPD COMING SOON 4
AERIAL EXECUTIVE PHOTO SUMMARY 100 E Highway 260 Payson, AZ 85541 FINANCIAL SUMMARY Price $2,160,000 Down Payment 100% $2,160,000 Cap Rate 5.0% Building SF 2,800 SF Net Cash Flow 5.0% $108,000 ANNUALIZED OPERATING DATA LEASE YEARS ANNUAL RENT CAP RATE Current - 8/31/2018 $108,000.00 5.00% 9/1/2018-8/31/2023 $118,800.00 5.50% 9/1/2023-8/31/2028 $130,680.00 6.05% 9/1/2028-8/31/2033 $143,748.00 6.65% Year Built 2013 Lot Size LEASE SUMMARY Lease Type Tenant Roof & Structure Original Lease Term.73 Acres Absolute Triple-Net (NNN) Ground Lease Emerald Restaurant Partners (William Leto) Tenant Responsible 20 Years BASE RENT $108,000 Net Operating Income $108,000 Total Return 5.0% $108,000 Rent Commencement Date September 1, 2013 Lease Expiration Date August 31, 2033 Lease Term Remaining Rental Increases Renewal Options 16 Years 10% Every 5 Years 4, 5 Year Options 5
TENANT AERIAL OVERVIEW PHOTO During the last 65 years Carl s Jr. has built a reputation as America s premier burger chain. Today, there are more than 1,100 Carl s Jr. restaurants worldwide, with more than 300 dual-branded Carl s Jr./Green Burrito restaurants. Carl s Jr. is looking for exceptional new franchise candidates in select markets in the U.S. and around the world. Carl s Jr. consistently out-delivers the competition with an innovative menu strategy that focuses on developing premium, sit-down restaurant quality menu items. The Carl s Jr. line of 100% Black Angus Beef Six Dollar Burgers is perfectly complemented by the brand s Hand-Scooped Ice Cream Shakes & Malts. This best-in-class menu supports a premium franchise opportunity. FRANCHISEE OVERVIEW: EMERALD RESTAURANT PARTNERS Emerald Restaurant Partners, an Arizona limited partnership is a single asset entity managed by Bill Leto. Based out of Scottsdale, Arizona Leto has been a Carl s Jr. franchisee since 2003 and operates approximately 21 locations throughout Arizona. 6
AERIAL PROPERTY PHOTO DESCRIPTION INVESTMENT HIGHLIGHTS Absolute Triple-Net (NNN) Lease with No Landlord Responsibilities 16 Years Remaining 10% Rental Increases Every Five Years - Next Increase in 2018, Cap Rate Goes to 5.5% Visible to 40,000 Cars per Day from Position at Signalized Hard Corner Directly off of Beeline Highway - Payson s Primary Thoroughfare Out Parcel to Bashas Anchored Center and Minutes from Walmart Supercenter Situated in the Town s Only Retail Corridor A 6,000-Student/253 Acre University Has Been Approved for Development in Payson - Construction is Expected to Commence May of 2019 DEMOGRAPHICS Population 3-Miles 5-Miles 10-Miles 2021 Projection 15,704 19,196 21,084 2016 Estimate 14,887 18,196 20,001 Growth 2016-2021 5.49% 5.50% 5.41% Households 3-Miles 5-Miles 10-Miles 2021 Projections 7,122 8,651 9,534 2016 Estimate 6,660 8,088 8,924 Growth 2016-2021 6.94% 6.96% 6.84% Income 3-Miles 5-Miles 10-Miles 2016 Est. Average Household Income $58,321 $58,852 $58,728 2016 Est. Median Household Income $45,893 $46,219 $46,240 2016 Est. Per Capita Income $26,392 $26,414 $26,436 LOCATION OVERVIEW Nestled among the majestic mountains of the Mogollon Rim-a 7,000-foot, 200-mile-long escarpment, lays the serene town of Payson, Arizona. Graced with spectacular natural beauty, this small town is located between the Sierra Ancha and the Mazatzal Mountain Ranges. Giant saguaros march up the low hill, forests cover their higher slopes, and rivers run rampantly through surrounding canyons. Residents like to brag that their town is situated in one of only three, pure air ozone belts in the world. At an elevation of 5,000 feet, the area enjoys a mild climate that accommodates year-round outdoor exploration, but not at the expense of missing out on seasonal changes. Residents and tourists alike enjoy snow covered, fragrant Starbucks pine trees while cross-country skiing in the winter and extremely pleasant temperatures in the spring, summer, and fall while theyhunt, fish, camp or hike. The surrounding Tonto National Forest is a major recreational draw for outdoor enthusiasts, hosting the world s largest stand of ponderosa pine trees. Just minutes away from town are several beautifulrim lakes, countless trout streams, and miles of mountain biking, hiking andhorse trails. Payson is a friendly community where people know each other and enjoy getting together to socialize at many of the areas special activities and events. The back drop for many of these events is the spacious 40-acre Green Valley Park. This park is an excellent fishing, picnic, and recreation destination. Although Payson is a modern town with an array of first-classaccommodations, dining, and shopping opportunities, it also boasts a downtown main street rich in Western Heritage, featuring art galleries,antique stores, and first-rate restaurants. Complete with acasino, museums and other attractions, there is something for everyone in Payson. 7
PROPERTY PHOTOS REGIONAL AERIAL PHOTO MAP 8
LOCAL AERIAL MAP PHOTO MAP Starbucks Williams-Sonoma 9
REGIONAL AERIAL PHOTO MAP MAP Williams-Sonoma 10
Net Leased Disclaimer Confidentiality Agreement Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property. 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. 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.
Exclusively listed by: Jamie Medress Senior Managing Director PHOENIX OFFICE Tel: (602) 687-6778 Fax: (602) 687-6717 jmedress@marcusmillichap.com Mark Ruble Senior Managing Director PHOENIX OFFICE Tel: (602) 687-6766 Fax: (602) 687-6710 mruble@marcusmillichap.com Chris Lind Vice President PHOENIX OFFICE Tel: (602) 687-6780 Fax: (602) 687-6710 chris.lind@marcusmillichap.com OFFICES NATIONWIDE www.marcusmillichap.com