GREASE MONKEY · 2020. 6. 9. · grease monkey - longmont, co Rent shall increase every five years based on the cumulative increase in the cost of living index for the prior 60-month

GREASE MONKEY1230 KEN PRATT BLVDLONGMONT, CO 80501

OFFERING MEMORANDUMISAAC | BAILEY

C O N T A C T S

DREW ISAACSenior Vice President Investments

[email protected]

KAITLIN O’MALLEYDirector of Operations

[email protected]

KENDALL KLINEMarketing Coordinator

[email protected]

NIKKI BRITAMarketing & Operations Associate

[email protected]

BRIAN BAILEYVice President Investments

[email protected]

ROCKY MOUNTAIN NATIONAL PARK

ISAAC | BAILEY

DENVER

JOHNSTOWN

FORT COLLINS

LONGMONT

BOULDER

ROOSEVELTNATIONAL FOREST

ROCKY MOUNTAIN NATIONAL PARK

GOLDEN GATE CANYON STATE PARK

GREELEY

TIMNATH

LOVELAND

MEADLYONS

JAMESTOWN

LAKEWOODAURORA

THORNTON

WESTMINSTER

IDAHO SPRINGS

BRIGHTON

KERSEY

TAMPA

DENVER INTERNATIONAL AIRPORT

85

34

287

34

34ESTES PARK

85

287

6

36

34

7070

25

25

76FT. LUPTON

VILLAGE AT THE PEAKS

13 MILES TO BOULDER

6 MILES TO I-25

MAIN

STREET42,001 VPD

NELSON ROAD

35,279 VPD

KEN PRATT BLVD31,928 VPD

14.75 YEARS REMAINING ON ABSOLUTE TRIPLE NET (NNN) LEASE

CORPORATE GUARANTEE FROM GREASE MONKEY INTERNATIONAL (300+ UNITS)

RENT INCREASE FROM 7.50%-12.50% BASED ON CPI

ESSENTIAL BUSINESS THAT IS INTERNET AND RECESSION RESISTANT

PROPERTY OVERVIEW

Address 1230 Ken Pratt Blvd

City, State, Zip Longmont, CO 80501

Lot Size 0.45 AC

Building SF 3,744 SF

Year Built 1985

INVESTMENT HIGHLIGHTS

$1,084,000PRICE

$65,000NOI

6.00%CAP RATE

LOCATED IN DOMINANT RETAIL CORRIDOR NEAR SAFEWAY, CONOCO, AND MANY MORE NATIONAL RETAILERS

KEY LEASE TERMS

Commencement 05/09/2016

Lease Expiration 04/30/2035

Type Absolute Triple Net (NNN)

Guarantor Corporate

Rent Increases CPI, min 7.5% - max 12.5% LONGMONT, COLORADO IS A GROWING COMMUNITY OUTSIDE OF BOULDER AND HAS A POPULATION OF OVER 96,000

SITE HAS HIGH VISIBILITY AND EASY ENTRY AND EGRESS

UNDER MARKET RENT, PRICED BELOW REPLACEMENT COST

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify and bears all risk for any inaccuracies. Any projection, opinions, assumptions, or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Incorporated © 2020 Marcus & Millichap.

6 MILES TO I-25

G R E A S E M O N K E Y1 2 3 0 K E N P R A T T B L V D , L O N G M O N T , C O

LEASE OVERV IEW


TERM MONTHLY RENT ANNUALIZED RENT RENT/SF RENT INCREASES

5/9/2016-4/30/2023 $5,417 $65,000 $17.36 -

5/1/2023 - 4/30/2028 $5,823 - $6,094 $69,875 - $73,125 $18.66 - $19.53 7.50% - 12.50%

5/1/2028 - 4/30/2033 $6,260 - $6,855 $75,116 - $82,266 $20.06 - $21.97 7.50% - 12.50%

5/1/2033 - 4/30/2035 $6,729 - $7,712 $80,749 - $92,549 $21.57 - $24.72 7.50% - 12.50%

5/1/2035 - 4/30/2038 (Option 1) $6,729 - $7,712 $80,749 - $92,549 $21.57 - $24.72 -

5/1/2038 - 4/30/2040 (Option 1) $7,234 - $8,676 $86,805 - $104,117 $23.19 - $27.81 7.50% - 12.50%

5/1/2040 - 4/30/2043 (Option 2) $7,234 - $8,676 $86,805 - $104,117 $23.19 - $27.81 -

5/1/2043 - 4/30/2045 (Option 2) $7,776 - $9,761 $93,316 - $117,132 $24.92 - $31.29 7.50% - 12.50%

PROPERTY NAME GREASE MONKEY

ADDRESS 1230 KEN PRATT BLVD

CITY, STATE, ZIP LONGMONT, CO 80501

INITIAL LEASE TERM 15 YEARS

RENT COMMENCEMENT DATE 05/09/2016

EXPIRATION DATE 04/30/2035

LEASE TERM REMAINING 14.75 YEARS

LOT SIZE 0.45 AC

LEASED SF 3,744 SF

LEASE TYPE ABSOLUTE TRIPLE NET (NNN)

RENT INCREASES EVERY 5 YEARS, CPIMIN. 7.50% - MAX. 12.50%

OPTIONS TO RENEW 2 x 5-YEAR OPTIONS

YEAR BUILT 2002

LEASE GUARANTOR CORPORATE

GREASE MONKEY - LONGMONT, CO

Rent shall increase every five years based on the cumulative increase in the cost of living index for the prior 60-month period based on the United States CPI-U (1982-84 = 100) with the first 60-month beginning May 2016 and ending April 2021. Notwithstanding the foregoing, the minimum increase in rent will be 7 .5% if the cost of living increase as calculated in the prior sentence is lower than 7.5%and the maximum increase in rent will be 12.5% if the cost of living increase as calculated in the prior sentence is higher than 12.5%.

KEN

PRAT

T BLV

D

31,9

28 V

PD

NELSON ROAD35,279 VPD

S BOWEN STREET36,782 VPD

CHURCH

VILLAGE AT THE PEAKS

SHERMAN VILLAGE13 LOCAL RETAILERS

G R E A S E M O N K E YT E N A N T O V E R V I E W


Grease Monkey International was founded in 1978 and headquartered in Denver, Colorado, the Grease Monkey® brand currently operates more than 300 centers internationally with operations in Mexico, China, Colombia and Saudi Arabia. Grease Monkey® is the nation’s largest independent franchisor of automotive oil change centers and is looking to expand in 2020 by opening 30+ new locations. Grease Monkey® International, LLC is the nation’s largest independent franchisor of automotive oil change centers serving more than 2 million customers each year.

A majority of Grease Monkey® centers are franchisee owned and operated. The franchisees are entrepreneurs who come froma wide range of backgrounds and experience. Besides offering needed maintenance services to car and truck owners, GreaseMonkey® franchisees play an important role as business owners, employers, supporters, and good citizens in the communities they serve.

Dallas based private equity firm, CenterOak Partners, LLC announced in November 2017 that they acquired FullSpeed AutomotiveTM, which includes Grease Monkey®, SpeeDee®, LubePro’s®, and Monkey Shine® car wash. CenterOak’s senior leaders and their predecessor funds have managed over $1.8 billion of equity capital commitments and have completed over 100 acquisitions, representing more than $3.3 billion intransaction value.

L O N G M O N T , C OL O C A T I O N O V E R V I E W


Longmont, Colorado is located within Boulder County, has 22 square miles, more than 300 days of sunshine, and a spectacular vista of the Rocky

Mountains. Longmont sits at an elevation of 4,979 feet above sea level. With more than 1,500 acres of parks and open space, Longmont is perfect

for outdoor enthusiasts. Longmont is also home to several high-tech companies and a vibrant restaurant scene. It is conveniently located 40

miles from Denver International Airport, 16 miles from Boulder and 30 miles from Rocky Mountain National Park.

https://www.visitlongmont.org/listing/longmont-downtown-development-authority/19242/

D E M O G R A P H I C S


% WHITE POPULATION 79.06% 81.62% 82.76%

% BLACK POPULATION 1.08% 1.15% 1.08%

% ASIAN 1.41% 3.32% 3.68%

% AMERICAN INDIAN, ESKIMO, ALEUT 0.93% 1.11% 0.97%

% HAWAIIAN OR PACIFIC ISLANDER 0.02% 0.04% 0.05%

% MULTI-RACE 2.92% 3.20% 3.20%

% HISPANIC 33.18% 27.11% 23.60%

% OTHER POPULATION 14.59% 9.56% 8.26%

% MALE POPULATION 50.79% 49.60% 49.54%

% FEMALE POPULATION 49.21% 50.40% 50.46%

P O P U L A T I O N B Y R A C E 1 M I LE 3 M I LES 5 M I LES

$200,000 OR MORE 5.77% 7.57% 8.31%

$150,000 - $199,999 4.60% 8.07% 8.64%

$100,000 - $149,999 15.52% 17.75% 19.20%

$75,000 - $99,999 12.69% 12.77% 13.99%

$50,000 - $74,999 18.12% 15.57% 14.99%

$35,000 - $49,999 17.02% 12.49% 11.64%

$25,000 - $34,999 9.73% 8.56% 7.96%

$15,000 - $24,999 7.69% 8.29% 7.30%

$10,000 - $14,999 3.49% 3.69% 3.39%

UNDER $9,999 5.37% 5.24% 4.58%

H O U S E H O L D S B Y I N C O M E 1 M I LE 3 M I LES 5 M I LES

H O U S E H O L D S 1 M I LE 3 M I LES 5 M I LES

2024 PROJECTION 2,969 29,671 43,582

2019 ESTIMATE 2,847 28,088 40,873

GROWTH 2019 - 2024 4.27% 5.64% 6.63%

2000 CENSUS 2,528 21,054 29,556

2010 CENSUS 2,632 25,361 36,416

GROWTH 2000 - 2010 4.12% 20.46% 23.21%

P O P U L A T I O N

2024 PROJECTION 7,754 75,335 111,173

2019 ESTIMATE 7,526 72,142 105,167

GROWTH 2019 - 2024 3.02% 4.43% 5.71%

2000 CENSUS 7,161 56,478 78,990

2010 CENSUS 7,009 65,567 94,185

GROWTH 2000 - 2010 -2.12% 16.09% 19.24%

1 M I LE 3 M I LES 5 M I LES

$95,845Average Household Income

(3-Mile Radius)

37Median Age

(3-Mile Radius)

78,772Daytime Population

(3-Mile Radius)

GREASE MONKEY - LONGMONT, CO

C O N F I D E N T I A L I T Y& D I S C L A I M E R N O T I C E


NET LEASE DISCLAIMERMarcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this marketing package 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 package 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 package 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 for 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 package, you agree to release Marcus & Millichap Real Estate Investment Services

and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or

purchase of this net leased property.

NON-DISCLOSURE NOTICEThe information contained in the following marketing package is proprietary and strictly confidential. It is intended to be reviewed by only the party receiving it from Marcus & Millichap Real Estate Investment Services and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This marketing package 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, PCB’s 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 package 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.

NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

DO NOT CONTACT TENANTAll property showings are by appointment with the listing broker or landlord only. Under no circumstances, should any prospective purchaser or related entity contact the tenant or any of the employees at these stores. Recipients of this marketing package acknowledge that such contact may damage the tenant’s operation which would impair the financial results. Landlord reserves the right to seek legal redress for any damage that may occur from such interference with landlord’s relationship with tenant.

SPECIAL COVID-19 NOTICEAll potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)

ISAAC | BAILEY

GREASE MONKEY1230 KEN PRATT BLVDLONGMONT, CO 80501

OFFERING MEMORANDUM

Documents

GREASE MONKEY · 2020. 6. 9. · grease monkey - longmont, co Rent shall increase every five years based on the cumulative increase in the cost of living index for the prior 60-month