GREASE MONKEY - LoopNet€¦ · internationally. As one of the nation’s largest franchisers of automotive preventive maintenance centers, Grease Monkey has over 300 locations in

O F F E R I N G M E M O R A N D U M

GREASE MONKEYPHOENIX, AZ

TABLE OF CONTENTS

01THE

INVESTMENT

PAGES 3-8

02THE

PROPERTY

PAGES 9-12

03THE

MARKET

PAGE 13-16

04THE

OFFER

PAGE 17-19

PHOENIX, AZ

Drew IsaacFirst Vice President InvestmentsDirector, Net Leased Properties Group& National Retail [email protected]

Brian BaileyAssociate DirectorNet Leased Properties GroupThe Isaac [email protected]

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THE INVESTMENT

01

O F F E R I N G P R I C E

$540,000C A P R AT E

7.93%

13202 N C AV E C R E E K R OA D, P H O E N I X , A Z

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THE OFFERING

Gross Leaseable Area 1,808 SF

Lot Size 13,303 SF

Type of Ownership Fee Simple

Year Built 1990

LEASE SUMMARY

Lease Type Double Net (NN)

Roof & Structure Landlord

Lease Guarantor GMI Montana, LLC (3 Units)

Original Lease Term 5 Years

Lease Commencement Date 5/1/2017

Lease Expiration Date 4/30/2022

Remaining Lease Term 4 Years

Increases 2% Increases Every Year

Options 2 X 5-Year Options

ROFR Yes, 14 Days

ANNUALIZED OPERATING DATA

YEAR ANNUAL RENT MONTHLY RENT

5/1/2018 - 4/30/2019 $42,840 $3,570

5/1/2019 - 4/30/2020 $43,697 $3,641

5/1/2020 - 4/30/2021 $44,571 $3,714

5/1/2021 - 4/30/2022 $ 45,462 $3,789

Option 1

5/1/2022 - 4/30/2023 $46,371 $3,864

5/1/2023 - 4/30/2024 $47,299 $3,942

5/1/2024 - 4/30/2025 $48,245 $4,020

5/1/2025 - 4/30/2026 $49,210 $4,101

5/1/2026 - 4/30/2027 $50,194 $4,183

Option 2

5/1/2027 - 4/30/2028 $51,198 $4,266

5/1/2028 - 4/30/2029 $52,222 $4,352

5/1/2029 - 4/30/2030 $53,266 $4,439

5/1/2030 - 4/30/2031 $54,331 $4,528

5/1/2031 - 4/30/2032 $55,418 $4,618

NOI $42,840 $3,570

PRICING

Price $540,000

NOI $42,840

CAP Rate 7.93%

Price/SF $299

O F F E R I N G S U M M A R Y13202 N C AV E C R E E K R OA D, P H O E N I X , A Z 85022

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I N V E S T M E N T O V E R V I E W

An established auto repair location since 1990, Grease Monkey took occupancy of the subject property in May 2017 and signed a 5 year double net (NN) lease.

4 Y E A R S R E M A I N I N G O N P R I M A R Y T E R M

The property is occupied by an experienced, successful, three (3) unit Grease Monkey franchisee.

F R A N C H I S E E G UA R A N T E E

The tenant is responsible for property taxes, property insurance, and all common area maintenance. The landlord is responsible for capital repairs to roof, structure, and parking lot.

D O U B L E N E T ( N N ) L E A S E

The lease calls for two percent annual rent increases throughout the primary term and the two five-year options to renew.

2% R E N T I N C R E A S E S A N N UA L LY

Compared to the rest of the NNN market, this offering provides a below average price point and an above average CAP rate

LO W P R I C E P O I N T A N D AT T R AC T I V E C A P R AT E

P H O E N I X , A Z LO C AT I O N The subject property is located on North Cave Creek Road in Phoenix, AZ (pop. 1.615M). The property is located on a major thoroughfare in a dense auto-related corridor.

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T E N A N T O V E R V I E WGrease Monkey International, Inc., a Colorado corporation, was incorporated in September of 1978,

for the sole purpose to franchise quick lube centers throughout the US and selected countries

internationally. As one of the nation’s largest franchisers of automotive preventive maintenance

centers, Grease Monkey has over 300 locations in the United States, Latin America and China. They

offer a complete line of fluid, filter and other automotive maintenance services. With each Full Service

Oil Change, Grease Monkey provides a complete review of the vehicle’s maintenance needs according

to the owner’s manual.

In July 2012, Mr. John Adams joined Grease Monkey as President and CEO with over 25 years of

experience in the franchise industry. Prior to joining Grease Monkey, Mr. Adams was the President

of Big O Tires for eight years, where he oversaw growth of the brand from 220 units to 574 units. Mr.

Adams added 155 Big O Tires locations in 2001 to 2003, significantly out stripping the previous run

rate of 20 stores per year.

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 in transaction value.

300+LOCATIONS

HEADQUARTERED IN

Denver, CO

F O U N D E D

1970S E R V I N G O V E R

C U S T O M E R S / Y E A R

2 MILLION

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THEPROPER T Y

02

RegionalMap

PHOENIX

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11

Aerial Map

Larkspur Elementary School

Dream CityChurch

Cave

Cre

ek R

oad

E Sweetwater Avenue

E Larkspur Drive

E Cactus Road

H a c i e n d aD e l S o l

N e i g h b o r h o o d

Pa ra d i s e Vi e wM o b i l e Pa r k

Ca c t u s G a rd e n sN e i g h b o r h o o d

Ph o e n i x M o u nt a i n s

Pre s e r ve

ArizonaMini Storage

Downtown Phoenix12 Miles

South

Joe’s Auto Care

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THEMARKE T

03

The Phoenix metro is often referred to as the Valley of the

Sun and consists of Maricopa and Pinal counties. The region

is hemmed in by mountains to the north and east. American

Indian reservations to the east and south limit development

in those directions, leaving the southeastern corridor and

western half of the metro as the primary growth areas. The

most populous city is Phoenix, which encompasses about

520 square miles, is the capital city and boasts a population

of nearly 1.6 million. Interstate 10 is a major trucking route

directly connecting the region to Southern California, which is

supporting a growing distribution industry. Various rail and air

lines connect the metro to cities around the world.

LOCATION OVERVIEWPHOENIX, AZ METRO HIGHLIGHTS

EMPLOYMENT GROWTHJob gains will increase faster than the national rate during the next five years, drawing new residents to the metro.

HIGH-TECH MANUFACTURING BASEIntel Corp., Motorola Inc., Honeywell and others have large Phoenix operations, attracting additional companies serving these corporations.

ACTIVE TOURISM INDUSTRYWarm winters and amenities including golf courses and resorts draw vacationers.

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D E M O G R A P H I C S5 Mile radius

POPULATION 1-MILE 3-MILES 5-MILES

2022 Projection

Total Population 11,693 120,405 330,916

2017 Estimate


2010 Census


2000 Census


Current Daytime Population

2017 Estimate 9,978 102,559 312,477

HOUSEHOLDS 1-MILE 3-MILES 5-MILES

2022 Projection

Total Households 5,098 51,431 139,712

2017 Estimate


Average (Mean) Household Size 2.3 2.35 2.38

2010 Census


2000 Census


Occupied Units

2022 Projection 5,098 51,431 139,712

2017 Estimate 5,259 53,066 144,286

HOUSEHOLDS BY INCOME 1-MILE 3-MILES 5-MILES

2017 Estimate

$150,000 or More 11.43% 9.84% 9.88%

$100,000 - $149,000 13.93% 12.63% 12.76%

$75,000 - $99,999 12.54% 11.15% 11.75%

$50,000 - $74,999 19.21% 18.03% 18.29%

$35,000 - $49,999 14.12% 14.98% 14.69%

Under $35,000 28.77% 33.39% 32.62%

Average Household Income $85,908 $78,251 $78,980

Median Household Income $58,606 $51,876 $53,060

Per Capita Income $36,900 $32,869 $32,776

HOUSEHOLD BY EXPENDITURE 1-MILE 3-MILES 5-MILES

Total Average Household Retail Expenditure $76,707 $71,201 $72,310

Consumer Expenditure Top 10 Categories

Housing $19,823 $18,674 $18,928

Transportation $14,122 $12,970 $13,162

Shelter $11,736 $11,057 $11,232

Food $7,432 $7,106 $7,176

Personal Insurance and Pensions $6,907 $6,266 $6,442

Health Care $4,982 $4,610 $4,640

Utilities $4,122 $3,873 $3,926

Entertainment $3,058 $2,808 $2,841

Apparel $2,298 $2,175 $2,218

Cash Contributions $2,239 $2,029 $2,050

POPULATION PROFILE 1-MILE 3-MILES 5-MILES

Population By Age

2017 Estimate Total Population 11,640 119,139 328,416

Under 20 20.63% 22.74% 23.37%

20 to 34 Years 18.25% 21.31% 21.35%

35 to 39 Years 5.44% 6.38% 6.35%

40 to 49 Years 14.28% 13.15% 13.31%

50 to 64 Years 25.56% 21.13% 20.89%

Age 65+ 15.85% 15.30% 14.71%

Median Age 44.44 39.67 39.14

§Population 25+ by Education Level

2017 Estimate Population Age 25+ 8,545 84,488 230,530

Elementary (0-8) 0.91% 3.85% 3.34%

Some High School (9-11) 3.04% 6.20% 6.35%

High School Graduate (12) 23.12% 23.94% 23.62%

Some College (13-15) 28.81% 25.51% 24.80%

Associate Degree Only 11.14% 9.22% 8.39%

Bachelors Degree Only 19.47% 18.49% 20.38%

Graduate Degree 13.05% 11.71% 12.04%

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PopulationIn 2017, the population in your selected geography is 11,640. The population has changed by -0.72% since 2000. It is estimated that the population in your area will be 11,693.00 five years from now, which represents a change of 0.46% from the current year. The current population is 47.82% male and 52.18% female. The median age of the population in your area is 44.44, compare this to the US average which is 37.83. The population density in your area is 3,704.81 people per square mile.

Households There are currently 4,983 households in your selected geography. The number of households has changed by 3.23% since 2000. It is estimated that the number of households in your area will be 5,098 five years from now, which represents a change of 2.31% from the current year. The average household size in your area is 2.30 persons.

Income In 2017, the median household income for your selected geography is $58,606, compare this to the US average which is currently $56,286. The median household income for your area has changed by 20.62% since 2000. It is estimated that the median household income in your area will be $68,664 five years from now, which represents a change of 17.16% from the current year. The current year per capita income in your area is $36,900, compare this to the US average, which is $30,982. The current year average household income in your area is $85,908, compare this to the US average which is $81,217.

Race and Ethnicity The current year racial makeup of your selected area is as follows: 85.03% White, 2.81% Black, 0.07% Native American and 3.61% Asian/Pacific Islander. Compare these to US averages which are: 70.42% White, 12.85% Black, 0.19% Native American and 5.53% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 14.66% of the current year population in your selected area. Compare this to the US average of 17.88%.

Housing

The median housing value in your area was $251,115 in 2017, compare this to the US average of $193,953. In 2000, there were 3,120 owner occupied housing units in your area and there were 1,707 renter occupied housing units in your area. The median rent at the time was $648.

Employment In 2017, there are 2,474 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 71.04% of employees are employed in white-collar occupations in this geography, and 29.69% are employed in blue-collar occupations. In 2017, unemployment in this area is 5.30%. In 2000, the average time traveled to work was 26.00 minutes.

IncomeIn 2016, the median household income for your selected geography is$77,654, compare this to the US average which is currently $54,505.The median household income for your area has changed by 15.08%since 2000. It is estimated that the median household income in yourarea will be $85,742 five years from now, which represents a changeof 10.42% from the current year.

The current year per capita income in your area is $31,059, comparethis to the US average, which is $29,962. The current year averagehousehold income in your area is $91,380, compare this to the USaverage which is $78,425.

PopulationIn 2016, the population in your selected geography is 8,415. Thepopulation has changed by 7.86% since 2000. It is estimated that thepopulation in your area will be 8,475.00 five years from now, whichrepresents a change of 0.71% from the current year. The currentpopulation is 48.21% male and 51.79% female. The median age ofthe population in your area is 38.89, compare this to the US averagewhich is 37.68. The population density in your area is 2,678.71 peopleper square mile.

HouseholdsThere are currently 2,860 households in your selected geography. Thenumber of households has changed by 12.82% since 2000. It isestimated that the number of households in your area will be 2,902five years from now, which represents a change of 1.47% from thecurrent year. The average household size in your area is 2.93 persons.

EmploymentIn 2016, there are 4,581 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that71.61% of employees are employed in white-collar occupations inthis geography, and 28.03% are employed in blue-collar occupations.In 2016, unemployment in this area is 3.31%. In 2000, the averagetime traveled to work was 32.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:72.22% White, 12.18% Black, 0.02% Native American and 4.50%Asian/Pacific Islander. Compare these to US averages which are:70.77% White, 12.80% Black, 0.19% Native American and 5.36%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 23.24% of the current yearpopulation in your selected area. Compare this to the US average of17.65%.

PROPERTY NAME

MARKETING TEAM

4902 ROWLETT RD

HousingThe median housing value in your area was $131,169 in 2016,compare this to the US average of $187,181. In 2000, there were2,326 owner occupied housing units in your area and there were 209renter occupied housing units in your area. The median rent at thetime was $595.

Source: © 2016 Experian

DEMOGRAPHICS

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PROPERTY NAME

MARKETING TEAM

4902 ROWLETT RD



DEMOGRAPHICS

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PROPERTY NAME

MARKETING TEAM

4902 ROWLETT RD



DEMOGRAPHICS

11








PROPERTY NAME

MARKETING TEAM

4902 ROWLETT RD



DEMOGRAPHICS

11








PROPERTY NAME

MARKETING TEAM

4902 ROWLETT RD



DEMOGRAPHICS

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PROPERTY NAME

MARKETING TEAM

4902 ROWLETT RD



DEMOGRAPHICS

11

D E M O G R A P H I C S5 M I L E R A D I U S

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THE OFFER

04

I N T E R E S T O F F E R E DMarcus & Millichap is marketing for sale to qualified investors an opportunity to acquire 100 percent fee simple Interest in the subject property. Sell-er shall assign to purchaser all leases encumbering the property at closing.

O F F E R I N G P R O C E S SThe property is being offered on an open bid basis. Prospective purchasers will be notified if a call for offers or best and final date is set; however, Seller intends to review offers as they are submitted and will respond promptly to all offers. Please contact the listing brokers to discuss submitting a Letter of Intent to purchase.

F I N A N C I N GThe property is being offered free & clear of any existing debt and prospective purchasers shall be afforded the opportunity to obtain a new financing for acquisition. Prospective purchasers are encouraged to submit proof of funds, expected loan terms, and a preliminary approval from lender with a Letter of Intent. Marcus & Millichap Capital Corp. has also sourced potential lenders for this acquisition and the listing brokers can provide terms upon request.

CO O P E R AT I V E B R O K E R AG E CO M M I S S I O NMarcus & Millichap is offering a cooperative brokerage commission equal to 50% of the gross commission by seller to brokers that represent purchas-ers that were not directly contacted by the listing brokers and that successfully close on the property at terms acceptable to seller.

P R O P E R T Y TO U R SProspective purchasers are encouraged to visit the subject property prior to submitting a Letter of Intent; however, all property tours must be arranged with the listing broker or landlord only. Under no circumstances should any prospective purchaser or related entity contact the tenant, on-site management, or employees. Recipients of this offering memorandum acknowledge that such contact may damage the tenant’s operations which may impair the financial results. The landlord/seller reserves the right to seek legal redress for any damage that may occur from such interfer-ence with their relationship with tenant.

S U M M A R Y O F T E R M S

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NON-DISCLOSURE NOTICEThe information contained in the following 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, 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 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.

NON-ENDORSEMENT NOTICEMarcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this market-ing 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 M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

DO NOT CONTACT TENANTAll property showing are by appointment with the listing broker or landlord only. Un-der no circumstances, should any prospective purchaser or related entity contact the tenant or any of the employees at these stores. Recipients of this offering memoran-dum 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.

NET LEASE DISCLAIMERMarcus & Millichap 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 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 confi rm 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 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 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.

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

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01

GREASE MONKEYPHOENIX, AZ

Brian Bailey Associate DirectorNet Leased Properties GroupDENVERTel: (303) [email protected]

Drew Isaac First Vice President InvestmentsNet Leased Properties GroupDENVERTel: (303) [email protected]

Madison SChaffnerDirector of Marketing & OperationsThe Isaac GroupDENVERTel: (303) [email protected]

James RassenfossAssociateThe Isaac GroupDENVERTel: (303) [email protected]

Kaitlin O’malleyAnalyst / Escrow ManagerThe Isaac GroupDENVERTel: (303) 328-2031kaitlin.o’[email protected]

DENOTES TRANSACTION LEAD

* **

Documents

GREASE MONKEY - LoopNet€¦ · internationally. As one of the nation’s largest franchisers of automotive preventive maintenance centers, Grease Monkey has over 300 locations in