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PRICE
116 NE 117th AveVancouver, WA 98684
$1,500,000
6.00%CAP RATE
MUCHASGRACIAS
Scott LoganFirst Vice President
(503) [email protected]
C O N F I D E N T I A L I T Y & D I S C L A I M E RThe 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2021 Marcus & Millichap. All rights reserved.
THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. 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 the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2021 Marcus & Millichap. All rights reserved.
N O N - E N D O R S E M E N T N O T I C EMarcus & 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.
S P E C I A L C O V I D - 1 9 N O T I C EAll 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.
Marcus & Millichap hereby advises all prospective purchasers of Net Lease 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 Lease property, it is the Buyer’s responsibility to independently confirm 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 Lease 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 Lease 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 Lease property.
Activity ID: ZAC0210381Broker of Record: Joel Deis - License: WA 25469
116 NE 117th Ave, Vancouver, WA 98684
EXCLUSIVELY LISTED BY
MUCHAS GRACIAS
OFFICES NATIONWIDE AND THROUGHOUT CANADA
WWW.MARCUSMILLICHAP.COM
SCOTT LOGANFirst Vice President
Portland OfficeOffice (503) 200-2023
[email protected] OR 201206413
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EXECUTIVE SUMMARY
Marcus & Millichap is proud to present Muchas Gracias Mexican Food on Mill Plain Boulevard in Vancouver, Washington. Muchas Gracias has been at this location for over twenty years and recently committed to a new 10-year lease agreement. The modified NNN lease calls for tenant responsibility of all expense items, with landlord covering capital expenditures above a break-point. Annual rental increases begin in the third year of the lease, with tenant options to extend for two, 5-year periods.
Muchas Gracias was founded as a single restaurant in 1996, and since then has grown to over 20 locations in Oregon and Washington, operated by both franchisees and the franchisor company. This site is located on a dense retail corridor with traffic counts in excess of 50,000 vehicles per day, and neighboring numerous name-brand retailers including Fred Meyer and Trader Joe’s.
LEASE TYPE MODIFIED NNN
NET OPERATING INCOME $90,000
LEASE COMMENCE 9/1/2021
EXPIRE 8/31/2031
REMAINING TERM 10 Years
TENANT SAN LUIS POTOSI, INC (dba Muchas Gracias)
GUARANTY Franchise & Personal
INCREASES Annual, Beginning in Year 3
OPTIONS Two, 5-Year Options
BUILDING SIZE 3,632 Square Feet
LOT SIZE 0.29 Acres
YEAR BUILT 1991
PRICE
$1,500,000 6.00%CAP RATE
MODIFIED NNNLEASE TYPE
5MUCHAS GRACIAS | NET LEASED |
HIGHLIGHTS
• Modified NNN Lease | Minimal Landlord Responsibilities
• New 10-Year Lease Term
• Established Regional Franchise with over 20 Locations
• Lease Backed by Muchas Gracias Founder
• Long History On-Site | 20+ Years
• Annual Rental Increases
• Income Tax-Free State
• High Traffic Intersection | Over 50K VPD
• Growing Market with over 30% Population Growth since 2000
• Proximate to I-205 & National Brands including Fred Meyer,
Trader Joe’s, Petco, Starbucks, and more
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RENT SCHEDULE
YEAR DATE MONTHLY RENT ANNUAL RENT INCREASE
Year One 9/01/2021 – 8/31/2022 $7,500 $90,000 –Year Two 9/01/2022 – 8/31/2023 $7,500 $90,000 –
Year Three 9/01/2023 – 8/31/2024 $7,550 $90,600 0.7%Year Four 9/01/2024 – 8/31/2025 $7,600 $91,200 0.7%Year Five 9/01/2025 – 8/31/2026 $7,700 $92,400 1.3%Year Six 9/01/2026 – 8/31/2027 $7,800 $93,600 1.3%
Year Seven 9/01/2027 – 8/31/2028 $7,900 $94,800 1.3%Year Eight 9/01/2028 – 8/31/2029 $8,000 $96,000 1.3%Year Nine 9/01/2029 – 8/31/2030 $8,100 $97,200 1.3%Year Ten 9/01/2030 – 8/31/2031 $8,200 $98,400 1.2%
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MILL PLAIN BLVD
10MUCHAS GRACIAS | NET LEASED |
TENANT PROFILE
Muchas Gracias Mexican Food first opened for business in 1996 in Vancouver, Washington by entrepreneur Rodolfo Sanchez. Mr. Sanchez moved north from San Diego in 1993 after over ten years of operating a taco stand, bringing with him his original menu, ingredients, and business acumen. Over the course of twenty-five years what started as a single fast-food restaurant has turned into over 20 locations in operation throughout Oregon and southwest Washington. Muchas Gracias’ corporate structure provides them the opportunity and flexibility to open additional locations through their franchise program.
ORIGINAL OWNERSHIP20+ LOCATIONS25-YEAR TRACK RECORD
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The Vancouver metro is part of the Portland-Vancouver metro and encompasses all of Clark County, Washington. Located across the Columbia River, the city itself is 9 miles from downtown Portland. The local economy is characterized by the tax environment, as the state of Washington levies no individual or corporate income taxes and the state of Oregon has no sales tax. This diminishes Vancouver’s retail sector, though development of other types of real estate thrives as Oregon has more rigid development laws.
ECONOMY• The local economy is largely driven by nearby Portland, as many Vancouver
residents choose to commute into Portland for employment opportunities.
• A median household income above the U.S. median has translated into a homeownership rates lightly greater than the national level. In Clark County, 66 percent of housing units are owner-occupied, compared with a national rate of 64 percent.
• Interstates 5 and 205 connect Clark County with major metros in the Pacific Northwest and beyond. In addition to Portland International Airport, Person Field in downtown Vancouver provides air service, while BNSF, Union Pacific and Amtrak offer rail connections.
METRO HIGHLIGHTSHEALTHCARE
• PeaceHealth Southwest Medical Center and Legacy Salmon Creek Medical Center contribute to healthcare being one of the largest employment segments.
TRANSIT OPTIONS• The metro has interstate, rail and
airport access connecting the region with markets across the world.
HIGHER EDUCATION• Enrollment at Washington State
University Vancouver and Clark College tops 15,000, providing the metro with a steady supply of renters and a college-educated workforce.
LOCATION OVERVIEW
$69,756AVERAGE RETAIL EXPENDITURE (3 MILES)
109,218TOTAL POPULATION (3 MILES)
43,703TOTAL HOUSEHOLDS (3 MILES)
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12MUCHAS GRACIAS | NET LEASED |
DEMOGRAPHICS
TOTAL POPULATION 1 MILE 3 MILES 5 MILES
2025 Projection 15,663 115,198 259,410
2020 Estimate 14,953 109,218 245,261
2010 Census 13,550 98,196 219,671
2000 Census 12,072 87,599 188,614
2020 Daytime Populations 17,634 98,392 258,378
TOTAL HOUSEHOLDS 1 MILE 3 MILES 5 MILES
2025 Projection 6,984 46,459 101,094
2020 Estimate 6,611 43,703 94,838
2010 Census 5,900 38,740 83,762
2000 Census 5,072 33,559 70,715
HOUSEHOLDS BY EXPENDITURE 1 MILES 3 MILES 5 MILES
Total Average Household Retail Expenditure $65,869 $69,756 $68,391
Consumer Expenditure Top 10 Categories
Housing $21,087 $22,370 $22,084
Transportation $12,584 $12,950 $12,606
Food $8,506 $8,909 $8,791
Personal Insurance and Pensions $7,521 $8,122 $7,931
Health Care $4,540 $4,908 $4,794
Entertainment $3,563 $3,735 $3,666
Cash Contributions $2,513 $2,780 $2,617
Apparel $1,799 $1,883 $1,838
Gifts $1,429 $1,643 $1,546
Education $981 $1,154 $1,162
HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES
2020 Estimate
$150,000 or More 8.8% 10.8% 10.5%
$100,000 - $149,000 16.3% 19.2% 18.0%
$75,000 - $99,999 16.2% 16.3% 15.8%
$50,000 - $74,999 19.5% 19.3% 19.2%
$35,000 - $49,999 17.8% 14.4% 13.6%
Under $35,000 21.3% 20.0% 22.9%
Average Household Income $82,149 $88,356 $86,016
Median Household Income $63,993 $70,093 $67,221
Per Capita Income $36,401 $35,485 $33,454
POPULATION PROFILE 1 MILES 3 MILES 5 MILES
Population By Age
2020 Estimate Total Population 14,953 109,218 245,261
Under 20 21.7% 24.7% 25.8%
20 to 34 Years 25.7% 21.9% 21.7%
35 to 39 Years 7.5% 7.1% 7.5%
40 to 49 Years 11.7% 12.1% 13.1%
50 to 64 Years 17.8% 18.0% 17.5%
Age 65+ 15.7% 16.2% 14.5%
Median Age 36.6 37.4 36.7
Population 25+ by Education Level
2019 Estimate Population Age 25+ 10,751 75,632 167,161
Elementary (0-8) 2.5% 2.5% 3.3%
Some High School (9-11) 4.5% 5.5% 6.5%
High School Graduate (12) 27.7% 26.4% 25.9%
Some College (13-15) 28.6% 27.5% 27.2%
Associate Degree Only 12.0% 11.1% 10.5%
Bachelors Degree Only 16.6% 17.9% 17.8%
Graduate Degree 8.1% 9.1% 8.8%
PRICE
116 NE 117th AveVancouver, WA 98684
$1,500,000
6.00%CAP RATE
MUCHASGRACIAS
Scott LoganFirst Vice President
(503) [email protected]
