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OFFERING MEMORANDUM | 4809 N 75th Avenue Phoenix, Arizona
4809 N 75th Avenue | Phoenix, AZ
W Camelback Rd
N 91st A
ve
83rd A
ve
W Bethany Home Rd
N 75th A
ve
Exclusively Listed by
Jenette Bennett, [email protected]
Table of Contents
INVESTMENT SUMMARY01
FINANCIAL ANALYSIS02
LOCATION OVERVIEW03
TENANT PROFILE04
Investment Summary
01
4
The Camelback and 75th Avenue Dairy Queen is a single tenant absolute triple net leased asset located in Phoenix, Arizona near Westgate Entertainment District and the Arizona Cardinals Stadium. This investment opportunity is conveniently located within three miles of the Loop 101, and on Camelback Road which is one of the highest trafficked arteries in Metro Phoenix. The Dairy Queen consists of 1,169 square feet sitting on a 0.28 acre parcel. The building has street frontage on 75th Avenue and access to allow left-in and left-out for easy access to the drive-thru.
This Dairy Queen has 8 years left on their initial 10-year lease, with options for two additional 5-years options to extend. With the absolute NNN lease, the landlord has zero responsibilities and no management obligations, making this a very passive investment in real estate. The tenant is responsible for procuring and pay all the operating expenses including real estate taxes, insurance and all utilities directly. The tenant is also responsible for the repairs and replacements of the building, sidewalks, parking areas, roof and structure. The lease is guaranteed by the franchisee, which operates seven Dairy Queen locations and expanding. The Dairy Queen went through a significant renovation at the start of their lease in 2018.
Offering Memorandum | Dairy Queen
INVESTMENT HIGHLIGHTS
STABLE, LONG-TERM CASH FLOW WITH ESCALATIONS
Absolute NNN lease structure provides passive income with 8 years left on a 10 year initial term.
NEWLY RENOVATED BUILDING
New renovations completed in 2018 to meet the Dairy Queen redesign brand standard.
STRATEGICALLY POSITIONED
Drive-thru buildling conveniently located at the busy intersection of Camelback Road and 75th Avenue, less than 3 miles off I-10 and Westgate Entertainment District.
STRONG DEMOGRAPHICS
Close proximity to dense housing with over 56K households in a 3-mile radius.
SECURE MULTI-UNIT OPERATOR
Successful franchisee with 7 locations, and the state’s top producing Dairy Queen located in Goodyear, Arizona.
$963,636OFFERING PRICE
5.5%CAP RATE
8 yrsLEASE TERM REMAINING
2018YEAR RENOVATED
5
PROPERTY INFORMATION
PROPERTY NAME Dairy Queen
ADDRESS 4809 N 75th Avenue, Phoenix, AZ
BUILDING
YEAR BUILT 1980
GROSS LEASABLE SQUARE FEET 1,169 SF
STORIES One (1)
SIGNAGE Monument and building
SITE
LAND AREA ACRES 0.28 AC
LAND AREA SQUARE FEET 12,197 SF
PARCEL NUMBER 144-37-403E
COUNTY Maricopa
MARKET Phoenix
ACCESS Full-turn access off 75th Avenue
FRONTAGE 75th Avenue
ZONING C-2, City of Phoenix
6
SITE PLAN
DAIRY QUEEN
W Camelback Rd
N 75th A
ve
7
W Bethany Home RdW Bethany Home Rd
N 91st A
ve
N 83rd
Ave
N 75th A
ve
W Camelback Rd
W Indian School Rd
DAIRY QUEEN
NHS - COPPER CANYON HIGH SCHOOL BICENTENIAL NORTH SCHOOL
BICENTENIAL SOUTH SCHOOL
Financial Analysis
02
9
RENT ROLL
TENANT SIZE (SF) % GLAMONTHLY RENT
ANNUAL RENT
ANNUAL RENT/SF
LEASE TYPEOCCUPANCY START
CURRENT TERM END
% INCREASE
Dairy Queen 1,169 SF 100% $4,416.67 $53,000.00 $45.34/SF Absolute NNN 10/1/2017 9/31/202710% starting month 61
COMMENTS
2, 5-year renewal options with a one-time 10% increase at the start of each 5-year period.
Security deposit $4,858.33
RENT ROLL
$963,636OFFERING PRICE
5.5%CAP RATE
8 yrsLEASE TERM REMAINING
2018YEAR RENOVATED
03 Location Overview
N 75th Ave
W C
amel
back
Rd
DAIRY QUEEN
11
Location Overview
Phoenix’s retail sector continues to steadily improve in 2018. Store closures, which have been much less frequent this year, have had a negligible impact on fundamentals. Retail vacancies in the Valley are well below their historical average and rent growth is accelerating heading into 18Q4.
Overall, strong tenant demand—bolstered by robust job and population growth—has enabled absorption to outpace supply additions this cycle, a trend poised to continue into 2019. The emergence of e-commerce and evolving buying patterns have moderated retail construction in Phoenix compared to the last cycle, but this could reduce the supply-side risk that many Sun Belt metros are facing.
Phoenix is a fairly liquid retail market, and the healthy state of fundamentals has resulted in an uptick in investment in 2018. Sales volume through this year’s first three quarters has already exceeded last year’s total, and plenty of investors are coming from outside of the state.
PHOENIX, ARIZONA
AREA HIGHLIGHTS
Stable, Long-Term Cash Flow With Escalations
Absolute NNN lease structure provides passive income with 8 years left on a 10 year initial term.
High Traffic Location
31,473 cars per day
Strategically Positioned
Conveniently located at the busy intersection of Camelback Road and 75th Avenue, less than 3 miles off I-10 and Westgate Entertainment District.
Strong Demographics
Close proximity to dense housing with over 56K households in a 3-mile radius.
Secure Multi-Unit Operator
Successful franchisee with 7 locations, and the state’s top producing Dairy Queen located in Goodyear, Arizona.
12
AREA DEMOGRAPHICS
1 MILE 3 MILES 5 MILES
2018 27,556 205,696 436,409
2023 29,715 223,251 473,182
POPULATION
1 MILE 3 MILES 5 MILES
2018 $53,894 $48,684 $49,180
2022 $60,851 $55,094 $55,988
AVERAGE HOUSEHOLD INCOME
$
1 MILE 3 MILES 5 MILES
2018 7,110 56,955 129,549
2023 7,659 61,819 140,463
HOUSEHOLDS
N
3 MILES
5 MILES
1 MILE
DAIRY QUEEN
GLENDALE
PHOENIX
PEORIA
REPRESENTATIVE PHOTO
04 Tenant Profile
14
DAIRY QUEEN
International Dairy Queen Inc., (IDQ), based in Minneapolis, Minnesota, is the parent company of American Dairy Queen Corporation (ADQ), Orange Julius of America (OJA), Dairy Queen Canada (DQX) and Unified Supply Chain, Inc (USC). Through its subsidiaries, IDQ develops, licenses and services a system of more than 6,800 locations in the United States, Canada and more than 25 other countries. IDQ is a subsidiary of Berkshire Hathaway Inc.
DQ Grill & Chill locations feature hot food, treats, table delivery, and self-serve soft drinks. It is the new concept for new and renovated full-service restaurants. Stores are larger than older-style locations and feature a completely new store design. In most cases, they offer an expanded menu including breakfast, Grill Burgers, and grilled sandwiches, as well as limited table service (customers still place orders at the counter). They also contain self-serve soft drink fountains allowing free refills. Some of the older stores have upgraded to the new format. However, there are still older stores that have not upgraded to the new format. In December 2001, Chattanooga, Tennessee was the site of the first two Dairy Queen Grill and Chill restaurants in the United States. The nation’s largest DQ Grill & Chill is located in Bloomington, Illinois.
Source(s): Dairy Queen & Wikipedia
Tenant: Dairy Queen Grill & Chill
Guarantor: Personal and AR Central 2, LLC
Type: Franchise
Headquarters: Minneapolis, Minnesota
Tenant Profile
DAIRY QUEEN
Jenette Bennett, CCIMFirst Vice [email protected]
Kidder Mathews 2555 E Camelback Rd Suite 100 Phoenix, AZ 85016
kiddermathews.com
