IDEAL 1031 EXCHANGE NEW ORLEANS, LA MSA 803 N Collins Blvd, Covington, LA 70433 NET LEASED RETAIL OF MARCUS & MILLICHAP JOSEPH BLATNER / (503) 200-2029 Joseph.Blatner@marcusmillichap.com :: NetLeasedRetail.com www.marcusmillichap.com Chris Shaheen, Louisiana Broker of Record 10527 Kentshire Ct., Suite B, Baton Rouge, LA 70810
LEGAL DISCLAIMER Marcus & Millichap and any cooperating broker hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap and any cooperating broker has not and will not verify any of this information, nor has Marcus & Millichap and any cooperating broker conducted any investigation regarding these matters. Marcus & Millichap and any cooperating broker 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 and any cooperating broker 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. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and any cooperating broker and hold them harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property. The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified 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 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 Marketing Brochure 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. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. DOMINO S - COVINGTON, LA :: 2
INVESTMENT OVERVIEW SINGLE TENANT ABSOLUTE NET LEASE IN COVINGTON, LA PRICE $315,000 CAP 6.00% NET OPERATING INCOME... $18,876 LEASE TYPE... Absolute Net Lease LEASE COMMENCEMENT... 2/25/2005 LEASE EXPIRATION DATE... 5/31/2020 INCREASES... CPI not to exceed 10% Every 5 Years OPTIONS... (3) Five Year Options GUARANTOR... 130+ Unit Experienced Operator YEAR BUILT... 1987 (Remodeled 2014) LOT SIZE... 0.1 Acres BUILDING SIZE... 1,080 SF DOMINO S - COVINGTON, LA :: 3
ESTABLISHED LOCATION AS DOMINO S FOR 30 YEARS The property was developed in 1987 and has been in operation as Domino s since. In 2014, it was remodeled to Domino s new image. :: REMODELED IN 2014 ABSOLUTE NET LEASE NO LANDLORD RESPONSIBILITIES The absolute net lease structure provides an owner with a passive investment and no landlord responsibilities whatsoever. INVESTMENT DETAILS HIGHLY VISIBLE WITH GREAT ACCESS Domino s is located on N Collins Blvd/ Hwy 190, a main arterial traveling through Covington and connecting to Interstate 12. Domino s signage is visible from both Hwy 190 and Village Walk and lot entrance is accessible from Hwy 190. :: 29,600 DAILY TRAFFIC COUNT EXPERIENCED DOMINO S OPERATOR RPM Pizza LLC has been the largest franchisee of Domino s pizza delivery restaurants in the US for the past 30 years, with over 130 stores. 1 HOUR NORTH OF NEW ORLEANS This historic city of Covington is set on the Bogue Falaya River and is just north of Lake Pontchartrain, which hosts the city of New Orleans on the southern end. DOMINO S - COVINGTON, LA :: 4
RENT ROLL TENANT INFO LEASE TERMS CURRENT RENT RENT INCREASES LEASE NAME SQUARE FEET COMMENCEMENT EXPIRATION ANNUAL BASE RENT DATE ANNUALLY OPTIONS TYPE DOMINO S 1,080 SF 2/25/2005 5/31/2020 $18,876 6/1/2020 CPI* (3) 5 Year Options ABSOLUTE NET *CPI Increases every 5 years not to exceed 10% of the then current rent DOMINO S - COVINGTON, LA :: 5
PARKING VIEW RECENTLY RENOVATED :: DEDICATED DRIVEWAY DOMINO S - COVINGTON, LA :: 6
STREET VIEW LOCATED NEAR SIGNALIZED INTERSECTION :: 30 YEARS IN OPERATION DOMINO S - COVINGTON, LA :: 7
AERIAL Norma s Pizza Shack Furniture Outlet of Covington HEROD ELEMENTARY N N COLUMBIA ST N COLLINS BLVD 29,600 CARS DAILY* Judicial District Court Office The Covington Farmer s Market DOMINO S ---------------- 803 N Collins Blvd 19,700 CARS DAILY* E KIRKLAND ST L O L A RESTAURANT 190 21 Southern Hotel Boston Pub St John s Coffee House Bar & Grill E BOSTON ST 56,400 CARS DAILY* McDonald s * COSTAR 2012 & 2015 DOMINO S - COVINGTON, LA :: 8
DEMOS HOUSEHOLD INCOME 2016 AVERAGE 2016 MEDIAN 1 Mile 3 Miles 5 Miles $69,518 $79,805 $89,643 $40,358 $55,307 $62,019 LOCATED ON HWY 190 WHICH CONNECTS SOUTH TO INTERSTATE 12 POPULATION 2010 2016 2021 1 Mile 3 Miles 5 Miles 3,180 25,431 45,364 3,353 27,473 49,642 3,390 28,253 51,633 :: CENTRAL LOCATION MAJOR AREA EMPLOYERS WITHIN 5-MILE RADIUS Domino s < 1 Mile 5 Miles > Company Name # of Employees Distance (mi) Saint Tammany Prsh Hsptl Svc 1,519 1.56 Chevron USA Inc 1,500 2.58 Lakeview Rgnal Med Ctr Aux Inc 800 4.80 Hornbeck Offshore Services LLC 700 2.61 Consolidated Grain & Barge Inc 550 0.39 Saint Tammany Prsh Hsptl Svc 518 2.42 Hornbeck Offshore Trnsp LLC 350 2.61 Gulf Island Fabrication Inc 300 0.41 Administrators of The Tulane 300 1.86 Wal-Mart Stores Inc 300 2.63 Ochsner Clinic Foundation 257 4.86 Easter Seals Southern Cal Inc 252 3.40 Community Care Ctr Cvngton 231 3.76 Gilsbar Inc 222 0.03 Scp Distributors LLC 210 2.64 Sensus USA Inc 200 2.53 Fse Energy Holdings Inc 200 2.59 Target Stores Inc 200 3.94 Transportation and Dev La Dept 190 3.78 HCA Inc 188 1.86 Greenbrier Hospital Inc 185 3.26 Acadian Ambulance Service Inc 175 0.78 Home Depot USA Inc 175 1.51 DOMINO S - COVINGTON, LA :: 9
COVINGTON, LA ABOUT COVINGTON, LA Covington is a city in and the parish seat of St. Tammany Parish, Louisiana. It is located at a fork of the Bogue Falaya and the Tchefuncte River. Covington is part of the New Orleans Metairie Kenner Metropolitan Statistical Area. :: ART, HISTORY & CULTURE The alluring town of Covington stands at the border of two Louisianas. The first, to the south, is flat and wet, home to New Orleans, and rooted in a French- Catholic culture. North of town is hilly and piney--- a farm country rooted in an Anglo-Protestant tradition. In Covington, you get the best of both worlds. It has top-notch white tablecloth restaurants, boutique shopping and the calendar is filled with a lively cultural scene of gallery openings, main street goings-on and BATON ROUGE COVINGTON GULFPORT the annual Three Rivers Arts Festival. This historic city is set on the Bogue Falaya River, where Columbia Street Landing holds community events, and from which there s access to Lake NEW ORLEANS Pontchartrain. With its proximity to country life, Covington is a launch point for natural excursions, connecting to miles of the Tammany Trace s greendrenched hiking and biking trails. Just a short drive away, horses cavort on rolling, pastured farms. DOMINO S - COVINGTON, LA :: 10
TENANT OVERVIEW RPM PIZZA, LLC RPM Pizza, LLC has been the largest franchisee of Domino s pizza delivery restaurants in the US for the past 30 years, with over 130 stores and employing over 2,500 team members. The quick service restaurants offer a pizza menu featuring a variety of toppings and styles. Patrons can also order a number of side items, including bread sticks, cheese bread, and chicken wings. Like other Domino s eateries, RPM Pizza s restaurants are principally delivery locations and offer limited dine-in seating. Innovations that RPM Pizza, LLC has pioneered include: The heated Heatwave Hotbag system, Portable 3-sided cartop sign, cutter for fresh bread side products, the Domino s Pizza Free Standing Buildings with Drive Thru, and Express Stores. Founder Richard Mueller and his brother CEO Glenn Mueller started the company in 1981. DOMINO S Main Site www.dominos.com Corporate Site biz.dominos.com 10.5% GROWTH IN 2016 in domestic same store sales :: STANDARD & POOR S RATING: B+ Founded in 1960, Domino s Pizza is the recognized world leader in pizza delivery, with a significant business in carryout pizza. It ranks among the world s top public restaurant brands with a global enterprise of more than 13,800 stores in over 85 markets. Domino s generates revenues by selling food, equipment and supplies to franchisees primarily in the U.S. and Canada, and by operating a number of Domino s stores. Domino s had global retail sales of nearly $10.9 billion in 2016, with more than $5.3 billion in the U.S. Emphasis on technology innovation helped Domino s reach an estimated $5.6 billion in global digital sales in 2016, and has produced several innovative ordering platforms including Google Home, Facebook Messenger, Apple Watch, Amazon Echo, Twitter and text message using a pizza emoji. In late 2015, Domino s announced the design and launch of the DXP, a purpose-built pizza delivery vehicle, as well as Piece of the Pie Rewards, its first digital customer loyalty program. 13,800 RESTAURANTS in 85 COUNTRIES DOMINO S - COVINGTON, LA :: 11
NET LEASED RETAIL OF MARCUS & MILLICHAP JOSEPH BLATNER / (503) 200-2029 Joseph.Blatner@marcusmillichap.com :: NetLeasedRetail.com www.marcusmillichap.com Chris Shaheen, Louisiana Broker of Record 10527 Kentshire Ct., Suite B, Baton Rouge, LA 70810