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15 Year Absolute Net Sale Leaseback with Annual Rental Increases14029 W Waddell Rd. Surprise, AZ 85379
JOHN [email protected] | (415) 274-2715 CA BRE# 01440360
RICK [email protected] | (415) 274-2709 CA BRE# 01792433
BOB [email protected] | (415) 274-2717 CA BRE# 00869657
For more info on this opportunity please contact:
Freddy’s
In conjunction with AZ Licensed Broker: Jessie Zahn - Phone: (480) 214.5088 Ext. 101 Email: [email protected]
CHRIS [email protected] | (415) 274-2701CA BRE# 01002010
RENTABLE SF . . . . . . 3,309 SF
SITE AREA . . . . . . . . . 43,560 SF
LEASE TYPE . . . . . . . . NNN
YEAR BUILT . . . . . . . . 2013
15 YEAR ABSOLUTE NET LEASED SALE LEASEBACK AT 8% RENT TO SALES RATIO IN THE PHOENIX MSA.
PRICE: $2,601,626CAP: 6.15%
Investment Highlights
STRONG SUBMARKET
Average household income of $75,000 in a 1-mile radius
185,000 people in a 5-mile radius
This submarket is continuing to experience explosive population and income growth
PROPERTY HIGHLIGHTSNew construction
Located at dominant intersection with a Safeway anchored shopping center, Fry’s anchored shopping center, and an Imax Movie Theater / Walgreens anchored shopping center
LEASE HIGHLIGHTSLease signed and guaranteed by high net worth entity and personal guarantee
1.5% annual rental increases throughout the base term and option periods
Tenant is responsible for taxes, insurance, utilities, and repair and maintenance of the roof and all structural elements of the building
The subject property is located in a dominant trade area with 3 major shopping centers at the intersection - Safeway anchored shopping center, Fry’s grocery anchored center, and an Imax Theatre / Walgreens anchored center.
FREDDY’S | 2
NRH
Joh
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Bo
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N L
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Road
N D
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N B
ulla
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W Thompson Ranch Road
W Waddell Road
W Bell Road W Bell Road
W Greenway Road
W Thunderbird Road
W Grand Avenue
NW Grand Avenue
60
60
PEBBLEBROOK GOLF COURSE
COYOTE LAKES GOLF CLUB
WILLOW CREEK GOLF COURSE
WILLOW BROOK GOLF COURSE
RIVERVIEW GOLF COURSE
El Mirage Elementary
Thompson Ranch
Elementary
Ashton Ranch Elementary
Parkview Elementary
Countryside Elementary
West Point Elementary
Surprise Elementary
Valley Vista High School
SURPRISE CROSSING
THE BOULEVARD SURPRISE POINTE
H&R BLOCK
CROSSROADSSURPRISE MARKETPLACE
SURPRISE TOWNE CENTER
GRAND VILLAGE CENTER
SUNDOME PLAZA
PHOENIX60
14,000 DAILY
HIGHLY DENSE AREA
Surprise is the 2nd fastest growing municipality in the greater Phoenix metropolitan area.
FREDDY’S | 3
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Income & Expense
PRICE $2,601,626
Price Per Square Foot: $786.23
Building Size (SF): 3,309
Lot Size (SF): 43,560
Capitalization Rate: 6.15%
Year Built: 2013
STABILIZED INCOME Per Square Foot
Rent $48.35 $160,000
LESS Per Square Foot
Taxes NNN $0.00
Insurance NNN $0.00
Total Operating Expenses $0.00
EQUALS NET OPERATING INCOME $160,000
Surrounding Retail
FREDDY’S | 4
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Rent Roll
TENANT INFO LEASE TERMS RENT SUMMARY
Tenant Name Sq. Ft. Term Current Rent Monthly Rent Monthly Rent/FT
Yearly Rent/FT
Freddy’s 3,309 1 $160,000 $13,333 $4.03 $48.35
2 $162,400 $13,533 $4.09 $49.08
3 $164,836 $13,736 $4.15 $49.81
4 $167,309 $13,942 $4.21 $50.56
5 $169,818 $14,152 $4.28 $51.32
6 $172,365 $14,364 $4.34 $52.09
7 $174,951 $14,579 $4.41 $52.87
8 $177,575 $14,798 $4.47 $53.66
9 $180,239 $15,020 $4.54 $54.47
10 $182,942 $15,245 $4.61 $55.29
11 $185,687 $15,474 $4.68 $56.12
12 $188,472 $15,706 $4.75 $56.96
13 $191,299 $15,942 $4.82 $57.81
14 $194,168 $16,181 $4.89 $58.68
15 $197,081 $16,423 $4.96 $59.56
Option 1 16 25 1.5% Annual increases
Option 2 26 35 1.5% Annual increases
Current Totals: 3,309 $160,000 $13,333 $4.03 $48.35
FREDDY’S | 5
ABOUT FREDDY’S FROZEN CUSTARD
Freddy’s Frozen Custard & Steakburgers is a quick-service restaurant chain based in Wichita, Kansas. The company opened its doors in 2002, franchised in 2004, and there are currently 129 Freddy’s restaurants across more than 20 states. From sandwiches to sundaes, Freddy’s makes food fresh to order.
Freddy’s Frozen Custard has again been recognized by Franchise Times® Magazine, this time on its inaugural Fast and Serious list in the March issue. The list uses a 10-point formula to identify fast-growing franchise systems that also have staying power. It is based on three years of impressive unit and sales growth, and includes brands in other industries, not just restaurants.
For 2013, Freddy’s was again named among Entrepreneur Magazine’s “Franchise 500®”, repeated its recognition by QSR® magazine as one of four “Rising Stars” in the Best Franchise Deals issue, Franchise Times® Magazine’s “Next 300 Franchise Chains” and was included among Inc. Magazine’s 500/5000 list of “Fastest Growing Private Companies”. In 2012, besides those recognitions repeated in 2013, Freddy’s was named one of Business Insider’s “8 Better Burger Chains Poised to Conquer America.”
LEASE SIGNED & GUARANTEED
BY VERY STRONG FRANCHISEE
Freddy’s
ABOUT FRANCHISEE
The franchisee is an investor group of very strong guarantors (ask agent for more details) who have a 40-unit franchise agreement with Freddy’s in Arizona, Utah, Montana, and Idaho. They have been operating on behalf of this franchise for over 3 years. They have 7 open locations in Arizona, Utah, Montana, and Idaho with leases signed to have over 10 total stores next year, and intend to open a total of 20 stores within 3 years. There are three separate personal guaranty’s on the lease.
FREDDY’S | 6
Regional Map Surprise AZ
Location
FREDDY’S
TRAFFIC COUNTS IN EXCESS OF
14,000 VPD ON W WADDELL RD
39 Minutes29 Miles
Phoenix
Glendale
Surprise
26 Minutes13.5 Miles
FREDDY’S | 7
SURPRISE, AZ OVERVIEW Surprise, Arizona is located in Maricopa County, approximately 29 miles from Phoenix, the state’s capital, and 13.5 miles from Glendale. With a population of 96,000 in a 3-mile radius, Surprise is the 2nd fastest growing municipality in the greater Phoenix metropolitan area. Money Magazine ranked Surprise as one of the “best small cities to live in” and according to the National Crime Survey, Surprise is the 2nd safest Arizona city to live in.
Surprise is home to Prasada, the largest regional mall in Arizona. Developing in phases since the early 2000’s, Prasada is a master-planned development, built with a vision that working, shopping, and entertaining would blend seamlessly in the community of Surprise. More than 1,200 acres has been dedicated to neighborhood and power centers, including Walmart and Target, a hospital and medical campus, an autoplex and other complementary retail and commercial businesses. Walmart, one of Prasada’s power centers opened in the Spring of 2012 and the Target power center is scheduled to open soon. At full build out, the city expects to realize $60 million per year in sales taxes and projects that Prasada will create, as well as more than 20,000 jobs for the local residents.
In line with the city’s increasing involvement to encourage the community’s efforts for economic development, Surprise built the AZ TechCelerator, a four-building campus, nearly 60,000 square feet in size, designed to accommodate the public’s needs and provide them with the affordable space, tools, and resources to grow an individual’s business venture. In recent news, Rioglass Solar, a solar energy equipment manufacturing company chose Surprise to house its United States headquarters. Temporarily operating out of the AZ TechCelerator site, in 2011, Rioglass Solar built a solar reflector manufacturing facility in Surprise’s Southwest Railplex, creating over a hundred new jobs with approximately $50 million in capital investment.
Location & Demos
2013 HOUSEHOLD INCOMES
1-Mile 3-Mile 5-Mile
2010 11,682 94,556 180,247
2013 12,052 96,963 184,521
2018 12,765 102,351 194,292
1-Mile 3-Mile 5-Mile
Average $75,871 $64,677 $56,913
Median $64,798 $54,312 $45,924
POPULATION
Employer # of Employees*Dysart School District 1,753Walmart 988City of Surprise 631Fry’s Food and Drug 537*Approximate
TOP EMPLOYERS IN SURPRISE
Phoenix, AZ
FREDDY’S | 8
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Copyright © 2014 [Capital Pacific Real Estate Brokerage Company]
JOHN [email protected] | (415) 274-2715 CA BRE# 01440360
RICK [email protected] | (415) 274-2709 CA BRE# 01792433
BOB [email protected] | (415) 274-2717 CA BRE# 00869657
For more info on this opportunity please contact:In conjunction with AZ Licensed Broker: Jessie Zahn - Phone: (480) 214.5088 Ext. 101 Email: [email protected]
CHRIS [email protected] | (415) 274-2701CA BRE# 01002010
