FILE PHOTO OFFERING MEMORANDUM Buffalo Wild Wings Ground Lease Sacramento, CA www.preservewestcapital.com
TABLE OF CONTENTS HIGHLIGHTS 1 PROPERTY OVERVIEW 3 TENANT INFORMATION 4 SITE PLAN 5 AERIALS 6 ABOUT THE AREA 10 DEMOGRAPHICS 12 Disclaimer Michael Maffia ( Broker ) has been retained on an exclusive basis to market the property described herein ( Property ). Broker has been authorized by the Seller of the Property ( Seller ) to prepare and distribute the enclosed information ( Material ) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate. The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma. Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto. Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information. Michael Maffia Partner 415.373.4060 mike@preservewc.com CA RE License #01340853 Putnam Daily Partner - Brokerage Division 415.445.5107 putnam@preservewc.com CA RE License #01750064 www.preservewestcapital.com
PROPERT Y HIGHLIGHTS ARDEN FAIR MARKET SQUARE Arden Way HOWE BOUT ARDEN CENTER 2018 Completion New 15-Year Absolute Net Ground Lease -- Corporate Location Leased to Blazin Wings, Inc. (NASDAQ: BWLD) -- Fixed 10% Rental Increases Every 5 Years Brand New 2017 Construction Excellent Visibility and Access along Dense & Highly Trafficked Retail Corridor -- Less than 1 Mile from Arden Fair Mall -- 1 Mile from Cal Expo Center Home of California State Fair Centrally Located at Junction of CA-160 & I-80 -- Collective AADT 247,500 Strong Lifestyle, Entertainment and Retail Anchors in the Corridor at the New Howe Bout Arden Center Across Street and at Market Square and Arden Fair Mall -- Tenants in the Corridor Include The Container Store, Nordstrom, Macy s, Walgreens, McDonald s, In-N-Out and Chick-fil-A PRESERVE WEST CAPITAL 1
PROPERTY INFORMATION Location The property is located within the FG Arden Shopping Center at 2053 Arden Way, Sacramento, California. Lot Size Approximately 1.04 acres, or 45,266 square feet. Improvements Construction is scheduled for completion September 15th, 2017 of an approximately 6,441 square foot retail building for Buffalo Wild Wings. There is ample parking onsite with 198 available spaces throughout the center. The improvements are being built and will be owned by the tenant. Upon expiration or termination of the lease, title to all such improvements shall become vested in the Landlord. The improvements are not for sale. Ground Lease Leased for 15 years to Blazin Wings, Inc from an anticipated rent commencement date of either the date Tenant opens for business (estimated for September 15, 2017) or October 12, 2017. There are three (3) five-year options to renew. Annual rent increases 10% in years six and eleven and at the start of each option period. The lease is net with tenant responsible for all taxes, insurance, all maintenance, and proportionate share of Common Area Maintenance costs including a management fee of 10% of operating costs. Increases in the tenant s proportionate share of controllable Common Area Maintenance charges is not to exceed 5% annually on a non-cumulative basis. Right of First Refusal If landlord elects to sell all or any portion of the shopping center, tenant shall have the right of first refusal to meet any bona fide offer of sale from a third party on the same terms and conditions of that offer, however, Tenant shall not be obligated to meet any terms and conditions specific solely to the third-party offeror. Tenant shall notify landlord in writing within ten (10) days whether or not Tenant chooses to exercise its right of first refusal. PRICE $3,667,000 4.50% Return Net Operating Income Years Annual Rent Return 1-5 $165,000 4.50% 6-10 $181,500 4.95% 11-15 $199,650 5.44% 16-20 (Option 1) $219,615 5.99% 20-25 (Option 2) $241,577 6.59% 26-30 (Option 3) $265,734 7.25% Financing This property will be delivered free and clear of permanent financing. PRESERVE WEST CAPITAL 2
ABOUT THE TENANT Buffalo Wild Wings is a leading casual dining restaurant and sports bar chain known for buffalo-style chicken wings, dipping sauces, chicken tenders, burgers, tacos, salads, and deserts. The restaurant was founded in 1982 in Columbus, Ohio, and has since expanded to approximately 1,240 restaurants worldwide. FILE PHOTO Buffalo Wild Wings reported Net Income of $94.75 million in 2016. Blazin Wings, Inc is a wholly owned subsidiary of Buffalo Wild Wings, Inc. (NASDAQ: BWLD). As of December 2016, Buffalo Wild Wings, Inc owned and operated 631 restaurants, including 621 Buffalo Wild Wings locations, 8 R Taco restaurants, and 2 PizzaRev restaurants in the U.S. and Canada. The company plans to open an additional 15 corporate restaurants in 2017 and anticipates similar growth among franchised locations. In 2016, the company reported revenue of $1.89 billion, net income of $94.75 million, and total stockholder equity of $518 million. PRESERVE WEST CAPITAL 3
SITE PLAN 6,441 SF ARDEN WAY
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AERIAL NORTHEAST VIEW CITRUS HEIGHTS CARMICHAEL AMERICAN RIVER COLLEGE MCLELLAN AIRFIELD HAGGIN OAKS COLF COMPLEX TOWN & COUNTRY VILLAGE DEL PASO COUNTRY CLUB wy ity F C l a it Cap ARDEN-ARCADE Watt Ave ARDEN FAIR Ful to na ve HOWE COMMUNITY PARK BURGER MARKET SQUARE a Alt py Ex n e Ard n de Ar y Wa ENCINA PREPARATORY HIGH Ho we Av e HOWE BOUT ARDEN CENTER Arden Way
ABOUT THE AREA SITE General Overview Sacramento (population 485,199) is the seat of Sacramento County and the capitol of California. Located at the confluence of the Sacramento and American rivers in California s Central Valley, Sacramento is the sixth largest city in California and has been named America s Most Diverse City. The Sacramento region s economy has flourished in recent years, growing 3.5% in 2015 to reach a gross domestic product of approximately $119 billion. In a bold statement intended to emphasize the city s commitment to innovation, the City of Sacramento recently awarded nearly $1 million in grants to organizations that will incubate, accelerate, and mentor startup companies willing to invest and grow in Sacramento. Development activity in the Sacramento region abounds; major projects include The Railyards, a 244-acre mixed use development just north of Downtown Sacramento slated to include more than 1 million square feet of retail and 2.3 million square feet of office space, Delta Shores, a 800-acre master planned development in the southern part of the city on one of the last major undeveloped pieces of land in Sacramento which will accommodate 5,200 residents, 1.3 million square feet of retail, and 250,000 square feet of hotel and commercial uses. In Sacramento s thriving River district, the 65-acre Township 9 development will introduce 2,350 housing units, 150,000 square feet of retail, and more than 800,000 square feet of office space. Sacramento is home to California State University, Sacramento, with an enrollment of more than 30,000 students. In addition, the University of the Pacific, National University, and University of San Francisco all have satellite campuses in the region. The University of California, Davis has a graduate center in downtown Sacramento, and the main campus is less than twenty miles away in nearby Davis. The city is served by several major highways: Interstate 80, a major east-west arterial, connects Sacramento to San Francisco in the West and Reno in the East. Interstate 5 connects the city to Redding and Oregon in the North and to the Central Valley in the south. CA State Route 99 spans nearly the entire length of the Central Valley, connecting Sacramento to Fresno, Bakersfield, Merced, Stockton, and Chico, among others. Amtrak provides commuter rail service to the San Francisco Bay Area, Southern California, Oregon, Nevada, Washington, and the Midwest, and is the second busiest Amtrak station in California. The Sacramento International Airport provides air transportation to the region, serving more than 10 million passengers in 2016.
ABOUT THE AREA Site Information The subject property is strategically situated in a strong retail location along the Arden Way (39,103 AADT) retail corridor. Located less than two miles from the junction of CA 160 (37,500 AADT) and I-80 (210,000 AADT), a major east-west arterial, the property benefits from strong visibility along a highly trafficked retail corridor. SITE The property neighbors the Cal Expo fairgrounds, home of the California State Fair, the Sacramento County Fair, and hundreds more events each year is less than 1 mile from the site. In addition to drawing more than 3 million visitors annually, the fairgrounds also features a Raging Waters amusement park, farm tours, the Cal Expo RV park, a sports and wagering center, the Cal Expo September 11th Memorial Plaza, and Papa Murphy s park, a $3 million stadium that seats approximately 12,000. In addition, the property is located in close proximity to Encina Preparatory High and Kaiser Permanente Point West Medical Offices. Major tenants neighboring the property include The Habit Burger Grill, T-Mobile, Cost Plus World Market, Party City, Chuck E. Cheese s, Red Lobster, Outback Steakhouse, Homegoods, Chick-Fil-A, Dollar Tree, Walgreens, In- N-Out Burger, Guitar Center, Chipotle, and Mercedes-Benz of Sacramento. Additionally, the property is located less than 1 mile from Arden Fair mall, with tenants including Sears, JC Penny, Forever 21, Nordstrom, BJ s Restaurant & Brewhouse, Macy s, the Apple Store, Toy s R Us, Starbucks, Lululemon, Starbucks, Barnes and Noble, Ulta Beauty, Best Buy, and more. Other shopping centers neighboring the property include the Point West Plaza shopping center, featuring Hobby Lobby, Old Navy, David s Bridal, Olive Garden, and Kohl s and the Howe Bout Arden Center, with tenants including The Container Store, Mod Pizza, Jamba Juice, Nordstrom Rack, Starbucks, and more. In addition, a new large multiplex Cinemark Movie Bistro theater, featuring food and a full bar, is planned for development in the complex.
DEMOGRAPHICS 2053 Arden Way Sacramento, CA 95825 Major Employers - Sacramento, CA # of Employees 2016 POPULATION 352,270 AVERAGE HOME VALUE $407,229 AVG. HOUSEHOLD INCOME $70,145 State of California 73,676 Sacramento County 11,950 UC Davis Health System 10,145 U.S. Government 10,007 Population Summary 1 Mile 1 3 Miles 5 Miles 2010 Total Population 16,938 127,300 352,270 2016 Total Population 17,458 130,828 347,116 2021 Total Population 18,174 135,816 374,768 2016-2021 Annual Rate 0.81% 0.75% 0.85% Average Household Income 2016 $47,058 $70,145 $67,859 Sutter Health 8,905 Kaiser Permanente 8,885 Dignity Health 7,853 Intel Corporation 6,000 Elk Grove Unified School District 5,863 City of Sacramento 4,300 2021 $48,495 $75,084 $72,779 Average Home Value 2016 $221,717 $407,229 $351,204 2021 $243,336 $452,333 $393,355 PRESERVE WEST CAPITAL 9
FILE PHOTO Michael Maffia Partner 415.373.4060 mike@preservewc.com CA RE License #01340853 Putnam Daily Partner - Brokerage Divison 415.445.5107 putnam@preservewc.com CA RE License #01750064 411 Borel Avenue, Suite 650 San Mateo, CA 94402 D 415.373.4063 F 415.737.6018 www.preservewestcapital.com