A TWO TENANT SPROUTS FARMERS MARKET ...files.constantcontact.com/0d3c1cb6001/ac1cd60e-0eee-44d2...T E N A N T S U M M A R Y TENANT Sprouts Farmers Markets, LLC, an Arizona Limited

EX

EC

UT

IVE

SU

MM

AR

YPROPERTYA Two Tenant Sprouts Farmers Market Investment Property

TENANTSSprouts Farmers Market & Jumpstreet 4, LLC

a Arizona limited liability company (NYSE: SFM)

LOCATION5665 W Bell Road, Glendale, Arizona 85308

SALES PRICE$11,900,000

CAPITALIZATION RATE6.57%

TOTAL ANNUAL RENT$782,190 NNN

PRIMARY LEASE TERMSee Tenant Lease Summaries

BUILDING SIZEApproximately 61,302 square feet

PARCEL SIZEApproximately 5.675 acres or 247,204 square feet

APN: 200-50-204

LANDLORD’S MAINTENANCE AND REPAIR OBLIGATIONSLandlord, at Landlord’s expense, shall maintain in good

condition and repair the structural components and foundation,

the roof structure and membrane, and the structural

components of the exterior walls of the premises in good

condition and repair. Additionally, Landlord shall maintain the

exterior surfaces of the exterior walls of the Premises, including

graffiti removal (if and when necessary) and the repainting of

the premises, although, Tenant acknowledges that the cost of

such maintenance and/or repair shall be included within the

Common Area Costs. In 2014, the Landlord invested $90,000

for a new roof coating that includes a 10 year roof warranty.

COMMENTS

We are pleased to offer an excellent opportunity to acquire an irreplaceable fee simple

investment property located in the heart of Glendale’s vibrant retail trade area. The property

features a 61,000 + square foot retail building occupied by Sprouts Farmers Market and

Jumpstreet. The building is situated on over 5.5 acres of land which provides abundant parking

and excellent access from Glendale’s main thoroughfare, Bell Road. Bell Road is the main east-

west corridor that carries over 45,000 cars per day directly in front of the subject property and

into the surrounding trade area. There are dozens of national and regional retailers surrounding

the property, including a Super Wal-Mart, Winco Foods, Kohl’s, LA Fitness, Mor Furniture, Big 5,

Walgreens and numerous national fast food and full service restaurant chains. The property is also

located next door the AAA Corporate Regional Center which employs over 1,400 employees and

provides an estimated $42 million in capital investment to the city of Glendale. Additionally, the

entire retail trade area is surrounded and supported by a dense residential population base with

over 118,000 residents within a 3 mile radius and over 340,000 within a 5 mile. When Sprouts

opened this store in 2002 it was their 3rd store and since then they have grown to operate over

220 grocery stores across the United States. Since opening in 2010, Jumpstreet has enjoyed

tremendous success and continues to be rewarded with a loyal customer base and strong gross

unit sales. We believe this is a dynamic opportunity to own a superbly located property situated

in one of Arizona’s most vibrant retail trade areas.

POTENTIAL DEVELOPMENT OPPORTUNITY

Under separate ownership, the vacant pad adjacent to the Sprouts building is currently available

for sale and can be developed into additional retail space. The pad consists of approximately

1.68 gross acres with a net usable of approximately 1.21 acres. Based on the current site plan an

investor can develop approximately 7,000 square feet and potentially up to 12,000 square feet.

Please inquire with agent for pricing and more details.

GREG VELASQUEZ

1804 Garnet Ave, Suite 406 • San Diego, CA. 92109

858.456.5101 office • 858.459.3066 fax

[email protected]

A TWO TENANT SPROUTS FARMERS MARKET INVESTMENT PROPERTY

TE

NA

NT

SU

MM

AR

YTENANTSprouts Farmers Markets, LLC,

an Arizona Limited Liability Company

PRIMARY LEASE TERMThe original 20 year lease commenced on

October 29, 2002 and expires on February 2, 2023

PREMISESApproximately 30,000 square feet

MINIMUM ANNUAL RENTAL RATEPRIMARY TERM:

3/1/13 - 2/28/18: $532,400

3/1/18 - 2/28/23: $585,640

EXTENTION OPTIONSFour (4) Five-Year Options

Option Periods Rent Schedule:

3/1/23 – 2/28/28: $644,204

3/1/33 – 2/28/33: $708,624

3/1/38 – 2/28/38: $779,486

3/1/38 – 2/28/43: $857,435

TENANT’S MAINTENANCE AND REPAIR OBLIGATIONSExcept for the portion and components of the

Premises to be maintained by Landlord, Tenant shall

keep the Premises and all utility facilities and systems

exclusively serving the Premises in good condition and

repair and shall make all replacements necessary to

keep the Premises and the Tenant utility facilities in

such condition. Tenant shall also be obligated to

maintain, repair and/or replace the HVAC systems

servicing the Premises. Tenant shall also reimburse

Landlord 100% of Landlord’s common area costs,

including the cost of a property manager.

TENANTJumpstreet 4, LLC, an Arizona Limited Liability Company

PRIMARY LEASE TERMThe original Lease commenced on August 1, 2010 and expires on June 30, 2020

PREMISESApproximately 31,302 square feet

ANNUAL RENTAL RATE JUMPSTREET’S ANNUAL GROSS SALESPRIMARY TERM: 2014: $2,123,752

7/1/2016 – 6/30/2017: $249,790 2015: $2,294,947

7/1/2017 – 6/30/2018: $257,302 2016: $2,295,845

7/1/2018 – 6/30/2019: $265,128

7/1/2019 – 6/30/2020: $272,953

OPTIONS AND RENT SCHEDULEOne (5) Five-Year Option

Option 1: Rent shall be adjusted based on market rents

TENANT’S MAINTENANCE AND REPAIR OBLIGATIONSTenant shall at all times keep all portions of the Premises (not specified to be maintained by Landlord)

including maintenance of exterior entrances, all glass and show windows and their moldings and all

partitions, doors, door jambs, door closures, door hardware, fixtures, equipment and appurtenances thereof

(including electrical, lighting, heating and plumbing, and plumbing fixtures, and any air condition systems,

including leaks around ducts, pipes, vents, or other parts of the air conditioning, heating or plumbing systems

which protrude through the roof) and any replacement thereof, in good order, condition and repair.

ABOUT JUMPSTREETJumpstreet offers you the chance to bond while bouncing around a 20,000 + square foot indoor

trampoline park! Owner Tim Crawford’s concept has taken such hold that there are now sixteen

locations across Colorado, Arizona, Texas, Tennessee, and Georgia. Whether you’re a first-timer or an

old pro, everyone is welcome to bounce around Jumpstreet’s trampoline wonderland. And there’s more

than just standard trampolines. “My personal favorite activity at Jumpstreet is our trampoline dodge

ball court,” says Kint. “It gives the game a new twist and encourages guests to work together as a

team. No matter if your skill is throwing, dodging, or catching the balls, there is a chance for everyone

involved to participate and have a good time” According to Kint, the dodgeball court is a favorite

activity for corporate team-building events. As one might imagine, Jumpstreet frequently hosts

birthday parties, with packages that even include cake and pizza. For adults, Jumpstreet’s late hours

on Fridays and Saturdays mean that you can plan a unique date night or night out with friends.

Jumpstreets gross sales at the subject location are extremely strong and have been steady since they

opened for business. Please see agent for sale volume details and feel free to visit Jumpstreet’s

company website for additional company information:

GREG VELASQUEZ


858.456.5101 office • 858.459.3066 fax

[email protected]


TE

NA

NT

PR

OF

ILE

ABOUT SPROUTS

In 1943, Henry Boney began Sprouts' longstanding legacy of providing fresh,

natural food available to anyone interested in eating well and spending less

when he opened a San Diego fruit stand. Our company was founded by

members of the Boney family, long-time San Diego grocers with a focus on

making fresh foods affordable. Our founders opened the first Sprouts store in

Chandler, Ariz. in 2002 with abundant produce and thousands of natural,

organic and great-tasting foods at remarkably low prices. Our story continued

with a period of rapid growth through acquisitions and new store

development. In 2011, Sprouts joined with Henry's Holdings, which ran 35

Henry's Farmers Markets stores and eight Sun Harvest Market stores. A year

later, Sprouts bought Sunflower Farmers Market, which ran 37 stores. Sprouts

became a public company traded on the NASDAQ Stock Market in August,

2013. In recent years, we expanded into the Southeast by adding new stores in

Georgia, Missouri, Alabama and Tennessee. Today, Sprouts is one of the fastest

growing retailers in the country. Sprouts (New York Stock Exchange under

“SFM”) employs more than 22,000 team members and operates more than 224

stores in 13 states from coast to coast. For more information, visit sprouts.com.

Please also view Bloomberg’s story on Sprout’s market growth:

www.bloomberg.com/news/videos/b/fdbca187-47db-48ce-ba9a-76bf28804240

TIMELINE

1943

Henry Boney starts his first fruit stand – he later creates Speedee Mart,

Boney's and other operations

1969

Two of Henry's sons, Stan and Steve, create a second generation Boney's

store in Ramona, CA. From that beginning came Windmill Farms and

Boney's, and in 1997 the family renames the chain "Henry's Marketplace," in

honor of their dad

1999

The Boney family sells Henry's Marketplace to Wild Oats

2002

Stan and his son Shon Boney, along with family friends Scott Wing and

Kevin Easler, create Sprouts, based in Phoenix, AZ

2004

Sprouts expands to Texas, opening its first store in Plano

2005

Sprouts expands to California, repurchasing store in El Cajon previously run by

the Boney Family

2007

Wild Oats is sold to Whole Foods Market

2007

Whole Foods divests itself of Henry's, selling the chain to Smart & Final, Inc.

(which, as of early 2007, is owned by Apollo Management, LP)

2008

Sprouts expands to Colorado, opening first stores in Westminster and Parker

2009

Sprouts grows rapidly, opening 23 new stores in a 17-month period

2010

Sprouts opens 50th store, and first one in Northern California, in Sunnyvale

2011

Henry's and Sprouts merge under Apollo, creating one of the largest natural food

grocers in the Western U.S. with annual revenues in excess of $1 billion

2012

Sunflower and Sprouts merge under Apollo, expanding Sprouts presence to

nearly 150 stores throughout eight states: AZ, CA, CO, NM, NV, OK, TX and UT

2013

Sprouts Farmers Market becomes a public company traded on the NASDAQ

Stock Market

2014

Sprouts expands into the Southeast by adding new stores in Georgia.

2015

Sprouts expands to three new states, MO, AL and TN, bringing

"Healthy Living for Less" coast to coast with more than 200 stores in 13 states

GREG VELASQUEZ


858.456.5101 office • 858.459.3066 fax

[email protected]


SU

BJE

CT

PR

OP

ER

TY

GREG VELASQUEZ


858.456.5101 office • 858.459.3066 fax

[email protected]


SP

RO

UT

S/J

UM

PS

TR

EE

TC

TR

GREG VELASQUEZ


858.456.5101 office • 858.459.3066 fax

[email protected]


SP

RO

UT

SIN

TE

RIO

R

GREG VELASQUEZ


858.456.5101 office • 858.459.3066 fax

[email protected]


JU

MP

ST

RE

ET

INT

ER

IOR

GREG VELASQUEZ


858.456.5101 office • 858.459.3066 fax

[email protected]


TR

AD

EA

RE

AG

EN

ER

ATO

RS

GREG VELASQUEZ


858.456.5101 office • 858.459.3066 fax

[email protected]


WALMART MOR FURNITURE FOR LESS

LF MARKET

KOHL’S

WINCO FOODS MICHAELS CRAFT STORE

TR

AD

EA

RE

AG

EN

ER

ATO

RS

GREG VELASQUEZ


858.456.5101 office • 858.459.3066 fax

[email protected]


AAA BIG 5 SPORTING GOODS

TUTOR TIME PRESCHOOL

LA FITNESS

STEIN MART

AE

RIA

L V

IEW

GREG VELASQUEZ


858.456.5101 office • 858.459.3066 fax

[email protected]


DEVELOPMENTOPPORTUNITY

AE

RIA

L V

IEW

GREG VELASQUEZ


858.456.5101 office • 858.459.3066 fax

[email protected]


57

TH

AV

EN

UE

BELL ROAD

CORPORATE CENTER

(1,400 EMPLOYEES)

SIT

E P

LA

N

GREG VELASQUEZ


858.456.5101 office • 858.459.3066 fax

[email protected]


PROPOSEDDEVELOPMENTOPPORTUNITY

MA

PS

GREG VELASQUEZ


858.456.5101 office • 858.459.3066 fax

[email protected]


Documents

A TWO TENANT SPROUTS FARMERS MARKET ...files.constantcontact.com/0d3c1cb6001/ac1cd60e-0eee-44d2...T E N A N T S U M M A R Y TENANT Sprouts Farmers Markets, LLC, an Arizona Limited