Offering Memorandum - images4.loopnet.comimages4.loopnet.com/d2/KMKwQqWWJl-i9M6ClkV6r_mG6... · imply affiliation with, or sponsorship or endorsement by, said corporation of M&M,

Offering Memorandum

MCDONALD’S - BOUNTIFUL, UT

Marcus & 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 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 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.

Marcus & 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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NON-ENDORSEMENT NOTICE

OFFICES NATIONWIDEwww.marcusmillichap.com

B o u n t i f u l , U t a h

MCDONALD’S

analysisM A R K E T A N D P R O P E R T Y A N A LY S I S

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, expressed 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. Any projections, 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, Inc. © 2015 Marcus & Millichap

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Investment Overview

McDonald’s

Investment Highlights■■ Absolute NNN Ground Lease With 18.5 Years Remaining■■ Signalized Hard Corner Just Off Interstate 15 On 1.14 Acres of

Land■■ Daily Traffic Count of Over 37,900 Vehicles■■ Average Household Income Exceeding $92,000 per Year■■ Near Costco, Lowe's, Cinemark 8, and Walgreens■■ Iconic Property - First Time on Market■■ Daily Traffic Count on Interstate 15 over 142,000 Vehicles■■ One Mile East of 128-Bed Lakeview Hospital

The subject is prominently located on the signalized corner of 500 S and 500 W and just off of Interstate 15. The property has a daily traffic count of over 37,900 vehicles. The building is approximately 4,882 square feet with a land area of 1.14 acres. The property is an absolute triple-net ground lease (NNN) with approximately 18.5 years remaining on the lease with corporate McDonald’s (MCD) which, currently has over 36,000 locations in operation.

This McDonald’s enjoys a population of over 94,000 within a five-mile radius and an average household income exceeding $92,000 per year. The subject property is along a main retail corridor and adjacent tenants include: Walgreens, KFC, Subway, Ross, Michaels, Taco Bell, Burger King, and more. Other nearby tenants include: Costco, Lowe’s, Cinemark 8, Shopko, Petco, and T.J. Maxx. One mile east of the property is Lakeview Hospital a 128-bed, 210,000 sq. ft facility. Within a two mile radius there are 15 K-12 Schools.

Bountiful is a city in Davis County, Utah, and is just 10 miles north of Salt Lake City and is currently Utah’s 15th largest city. Although a part of the Ogden-Clearfield Metropolitan Statistical Area, it serves as a bedroom community to Salt Lake City and the surrounding area.


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Executive Summary

McDonald’s

Demographics1-MILE 3-MILES 5-MILES

2014 Population 12,623 74,969 94,6482019 Population 12,856 78,980 100,9992014 Households 4,843 25,223 31,1612019 Households 4,984 26,767 33,438Median HH Income $53,050 $69,774 $72,697Per Capita HH Income $24,353 $29,632 $30,592Average HH Income $62,969 $87,859 $92,745

EMPLOYERS

Intermountain Health CareUniversity of UtahState of UtahDelta Airlines Corp.Zions BancorporationNovus Credit ServicesCordant Technologies

Major Employers

MCDONALD’S490 S 500 WBountiful, UT 84010

Offering Summary

Offering Price $2,857,000Down Payment 100% / $2,857,000Rentable Square Feet 4,882Price/SF $585.21Year Built 1996/2014

Lot Size 1.14 AcresVital DataCurrent Cap Rate 3.50%

Current Net Operating Income $100,000

Tenant Summary

Tenant Trade Name McDonald’sOwnership PublicTenant Corporate StoreLease Guarantor Corporate GuaranteeLease Type Ground LeaseRoof and Structure Tenant ResponsibleLease Term 20 YearsLease Commencement Date 4/25/1995Rent Commencement Date 4/25/1995Lease Expiration Date 4/29/2036Increases 10% in 2026 & 2031Options None


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Regional Map

Subject Property

McDonald’s


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Local Map

Subject Property

McDonald’s


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Aerial Photo

McDonald’s


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SUBJECT PROPERTY

Aerial Photo

McDonald’s


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McDonald’s

GeographyCentrally located among the major western U.S. markets, Salt Lake City is known as the “Crossroads of the West.” The metro is situated in the Great Salt Lake Valley in northern Utah. The region is hemmed in by the Great Salt Lake to the northwest, the Wasatch Mountain Range to the east and the Oquirrh Mountains to the west. The Salt Lake City, Provo- Orem and Ogden-Clearfield metros together comprise the Wasatch Front.

Market Highlights Employment Growth

■■ Skilled trade and educated workers, attractive outdoor recreation opportunities, and low overhead costs attract employers to the region.

High Income

■■ The metro’s household income is consistently well above the national median, even during recessions.

Large Institutions■■ The Salt Lake City economy benefits from its status as the capital of

Utah, and the headquarters of the Church of Jesus Christ of Latter-day Saints.

Salt Lake City


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McDonald’s

MOST POPULOUS AREASSalt Lake City 195,600

West Valley City 134,400

West Jordan 109,200

Sandy 91,000

Millcreek 65,000

Taylorsville 60,900

2011 Estimate Sources: Marcus & Millichap Research Services, AGS

AIRPORTS ■■ Salt Lake City Internatioanl Airport■■ Two general aviation airports

MAJOR ROADWAYS ■■ Interstates 15, 80 and 215

RAILS■■ Freight - Union Pacific■■ Passenger - Amtrak■■ Light rail - UTA

THE SALT LAKE CITY MSA IS:■■ 425 miles from Las Vegas■■ 535 miles from Denver■■ 690 miles from Los Angeles■■ 740 miles from San Francisco

Metro

The Salt Lake City metro has nearly 1.2 million people in three counties: Salt Lake, Tooele and Summit. Salt Lake City is the largest city, with 195,600 residents. The highest percent-age of population growth continues to occur in the suburban areas such as West Jordan while the entire metro is expected to grow 1.2 percent annually over the next five years.

InfrastructureThree major interstate highways serve the region. Interstate 80 runs east to west, and Interstate 15 reaches southwest to Las Vegas and Southern California and links to Interstate 84 in the north, providing access to the Pacific Northwest. Additionally, Interstate 215 loops around the city, servicing the high-growth areas in the eastern and western portions of the metro.

Air transportation is provided by Salt Lake City International Airport (SLC) and two general aviation airports. More than 20 million passengers each year use SLC, which also serves as a hub for Delta Airlines.

Union Pacific and Amtrak offer freight and passenger rail, while the Utah Transit Authority (UTA) operates a train from Ogden to Salt Lake City and the light rail. UTA also provides the local and regional bus service and rideshare programs.

Salt Lake City


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McDonald’s

LaborSalt Lake City has a growing labor force that is young, educated, bilingual and computer savvy. The employment base of approximately 1.1 million positions is forecast to rise by 1.9 percent annually over the next five years, slightly below the national average. The largest job sector is trade, transportation and utilities, which employs 18 percent of the workforce. This is due primarily to the Delta Airlines’ hub at Salt Lake City International Airport and the wide array of retail establishments in the region. In addition, numerous distribution facilities are located along Interstate 15, which is a major corridor for freight traffic. Employment in this sector is expected to expand by an average 0.9 percent annually through 2019.

Being the state capital city, Salt Lake City is home to many state agencies. Approximately 17 percent of all regional jobs are provided by the government sector, making it the region’s second largest. A five-year forecast projects 1 percent annual growth for government jobs in the area.

The professional and business services segment has become one of the largest employment sectors, accounting for 15 percent of total employment in the metro. Over the next five years, this sector will grow at an average annual rate of 2.8 percent.

The information sector will record the highest employment growth over the next five years, averaging 5.2 percent annually. The increase will come mainly from high-tech companies that are locating data centers in the region.

Salt Lake City


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McDonald’s

EconomySalt Lake City’s economy will grow by 4.8 percent this year as a highly skilled and bilingual workforce and a low cost of doing business attract employers. A stable base of government entities are located in the metro, while growing companies in the private sector include technology leaders eBay and Oracle Corp. These companies, along with Twitter Inc. and the National Security Agency, have located data and service centers in the Salt Lake City metro.

Tourism will remain a top employment generator over the coming years, as several world-class ski resorts, including Brighton, Park City, Alta and Snowbird, are less than an hour drive from the airport. In addition, Salt Lake City can host numerous conventions and trade shows at meeting facilities, such as the 365,000-square foot Salt Palace Convention Center and the Energy Solutions Arena.

Internally generated economic growth is robust, with a significant entrepreneurial element creating new technologies and businesses. Many of these companies are launched from research conducted at the University of Utah and Brigham Young University.

Population-serving industries such as education and healthcare will continue to grow in conjunction with strong population gains.

Salt Lake City


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McDonald’s

DemographicsThe population in the Salt Lake City metro grew at an average rate of 1.5 percent per year since 2000, adding more than 200,000 persons. Expansion will continue at 1.2 percent over the next five years as job opportunities and the low cost of living continue to attract residents.

Area residents are much younger than the nation. The median age, at 31.3 years, is well below the national median of 37.4 years. In addition, 32 percent of residents are younger than 20 years, as opposed to just 26 percent for the country. Large household sizes with children ensure future growth in the metro.

The region benefits from an educated populace, with 29.3 percent of residents age 25 and older possessing a bachelor’s degree, up slightly from 28.5 percent at the U.S. level. The skilled workforce helps attract employers and is reflected in higher incomes. The median household income is $63,900 per year, above the national median of $52,000 annually.

Higher incomes and lower home prices have afforded 65 percent of Salt Lake City residents the ability to own their homes. The median home price is around$241,700.

Salt Lake City


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McDonald’s

EmployersThe Salt Lake City economy contains a significant public sector driven by federal, state and local entities. As the city serves as the state capital, the largest governmental, educational and health institutions in Utah are found here.

With its low cost of doing business, the metro is a competitive location for back-office operations. Numerous financial institutions and service providers have operations in the area, including Goldman Sachs. Many corporations have also located logistical operations in the region. Salt Lake City houses a number of homegrown institutions, such as Zions Bancorporation and Deseret Management Corp.

Many high-tech companies are located in the area, including Convergys Corp., an information and technology firm; ATK Aerospace Group; eBay; Oracle; and many startups. Also, Oracle and Twitter are among the companies that have opened data centers.

The region is also attracting call-center operations for companies such as Marriott Hotels, InterContinental Hotels Group and Delta Airlines, which have reservation facilities in the metro.

Salt Lake City

MAJOR EMPLOYERS

Intermountain Health Care

University of Utah

State of Utah

Delta Airlines Corp.

Zions Bancorporation

Novus Credit Services

Cordant Technologies

Major Employers


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McDonald’s

Quality of LifeSalt Lake City’s low cost of living, scenic views, and wide variety of recreational and cultural activities make it a great place to live. The Wasatch Range provides a multitude of year-round recreational opportunities. The many ski resorts dotting the range offer residents world- class skiing minutes from their doorsteps. Additionally, more than a dozen national parks and monuments are all within a one-day drive of the city.

The metro also offers numerous indoor activities, such as the Hogle Zoo, Clark Planetarium and IMAX Theater, Living Planet Aquarium, and the Utah Museum of Natural History. Abravanel Hall is the home of the Utah Symphony & Opera and host to many other concerts. Other cultural venues include the Rose Wagner Performing Arts Center, Hale Centre Theatre and the Off Broadway Theatre.

Salt Lake City’s major educational institution is the University of Utah, which also contains a medical school. Approximately 31,500 students are enrolled at the university, which is known for its technology transfer program that moves state-of-the-art research into useful applications in the business world. There are10 other colleges and universities in the metro. In addition, two other major educational institutions are located just outside of Salt Lake City: Brigham Young University in Provo and Utah State University in Logan.

Salt Lake City


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Demographic Summary

McDonald’s

INCOME 1-MILE 3-MILES 5-MILES

$ 0 - $14,999 9.1% 5.9% 5.5%

$ 15,000 - $24,999 8.6% 5.9% 6.0%

$ 25,000 - $34,999 11.1% 7.4% 7.0%

$ 35,000 - $49,999 17.8% 12.9% 12.2%

$ 50,000 - $74,999 25.8% 22.1% 21.1%

$ 75,000 - $99,999 13.8% 17.8% 17.8%

$100,000 - $124,999 6.3% 11.1% 11.4%

$125,000 - $149,999 4.1% 7.5% 7.9%

$150,000 - $199,999 1.9% 4.9% 5.7%

$200,000 - $249,999 0.7% 2.0% 2.3%

$250,000 + 0.9% 2.6% 3.2%

2014 Median Household Income $53,050 $69,774 $72,697

2014 Per Capita Income $24,353 $29,632 $30,592

2014 Average Household Income $62,969 $87,859 $92,745

HOUSEHOLDS 1-MILE 3-MILES 5-MILES

2000 Households 4,324 20,278 23,981

2010 Households 4,596 24,074 29,652

2014 Households 4,843 25,223 31,161

2019 Households 4,984 26,767 33,438

2014 Average Household Size 2.62 2.98 3.04

2014 Daytime Population 8,410 24,835 32,532

2000 Owner Occupied Housing Units 56.42% 75.15% 76.25%

2000 Renter Occupied Housing Units 38.82% 21.36% 20.16%

2000 Vacant 4.75% 3.49% 3.59%



2014 Vacant 4.33% 3.18% 3.22%



2019 Vacant 4.30% 3.11% 3.15%

POPULATION 1-MILE 3-MILES 5-MILES

2000 Population 11,929 63,803 76,910

2010 Population 12,083 71,952 90,542

2014 Population 12,623 74,969 94,648

2019 Population 12,856 78,980 100,999


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Demographic data © 2015 by Experian/Applied Geographic Solutions.

McDonald’s

Race and Ethnicity The current year racial makeup of your selected area is as follows: 91.18% White, 0.64% Black, 1.05% Native American and 1.68% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 6.73% of the current year population in your selected area. Compare this to the Entire US average of 17.13%.

Housing In 2000, there were 18,966 owner occupied housing units in your area and there were 5,014 renter occupied housing units in your area. The median rent at the time was $586.

Employment In 2014, there are 32,531 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 68.99% of employees are employed in white-collar occupations in this geography, and 30.83% are employed in blue-collar occupations. In 2014, unemployment in this area is 3.86%. In 2000, the average time traveled to work was 22.1 minutes.

PopulationIn 2014, the population in your selected geography is 94,648. The population has changed by 23.06% since 2000. It is estimated that the population in your area will be 100,999 five years from now, which represents a change of 6.71% from the current year. The current population is 49.56% male and 50.43% female. The median age of the population in your area is 32.0, compare this to the Entire US average which is 37.3. The population density in your area is 1,203.06 people per square mile.

Households There are currently 31,160 households in your selected geography. The number of households has changed by 29.94% since 2000. It is estimated that the number of households in your area will be 33,438 five years from now, which represents a change of 7.30% from the current year. The average household size in your area is 3.03 persons.

Income In 2014, the median household income for your selected geography is $72,696, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 29.46% since 2000. It is estimated that the median household income in your area will be $82,453 five years from now, which represents a change of 13.42% from the current year.

The current year per capita income in your area is $30,591, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $92,745, compare this to the Entire US average which is $74,533.

Geography: 5 Miles

Demographic Summary

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Documents

Offering Memorandum - images4.loopnet.comimages4.loopnet.com/d2/KMKwQqWWJl-i9M6ClkV6r_mG6... · imply affiliation with, or sponsorship or endorsement by, said corporation of M&M,