PAPA JOHN'S - TOLEDO OH - images4.loopnet.com€¦ · The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement

Available Individually or as part of a three property portfolio:Dayton, Ohio – Springboro (Cincinnati MSA), Ohio – Toledo, Ohio

Offering Memorandum

PAPA JOHN'S - TOLEDO OHPAPA JOHN'S - TOLEDO OH2531 Key St • Toledo, OH 436142531 Key St • Toledo, OH 43614

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe 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. © 2018 Marcus & Millichap. All rights reserved.

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.

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

PAPA JOHN'S - TOLEDO OHToledo, OHACT ID ZAA0360068

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N E T L E A S E D D I S C L A I M E R

Marcus & 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 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 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.

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OFFERING SUMMARY

Price $216,373Net Operating Income $21,638Capitalization Rate – Current 10.0%Price / SF $149.22Rent / SF $18.21Lease Type Modified GrossGross Leasable Area 1,450 SFYear Built / Renovated 1970 / 2013Lot Size 0.24 acre(s)

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EXECUTIVE SUMMARY

OFFERING SUMMARY

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FINANCING

Down Payment All CashNet Cash Flow 10.00% / $21,638Cash on Cash Return 10.00%Total Return 10.00% / $21,638

PAPA JOHN'S - TOLEDO OH

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OFFERING SUMMARY

MAJOR REGIONAL EMPLOYERS

EMPLOYER # OF EMPLOYEES *

ProMedica Health Systems 14,465

Mercy Health 8,827

University of Toledo 6,662

Whirlpool Corporation 6,182

FCA US LLC 6,159

Bowling Green State University 3,399

Sauder 2,850

St. Rita's Medical Center 2,492

Marathon Petroleum Co., LLC 2,200

Cooper Tire & Rubber Co. 2,000

Magna International 2.000

General Motors Powertrain 1,971

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 11,014 66,119 163,248

2010 Census Pop 11,064 66,086 162,178

2018 Estimate HH 4,924 29,684 67,320

2010 Census HH 5,029 30,142 67,806

Median HH Income $53,308 $50,091 $52,408

Per Capita Income $29,901 $30,014 $30,261

Average HH Income $66,668 $66,620 $72,402

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OFFERING SUMMARY

§ Net Lease - Tenant Pays Insurance and Utilities

§ One 5-Year Renewal Option with 9 Percent Rent Increase

§ Occupied Since 2011

§ Long Term Operator with 130+ Locations

§ 2.6 Years Remaining on First Five-Year Extension

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to exclusively present for sale a single-tenant net-leased Papa John's located at 2531 Key Street in Toledo, Ohio. The investment opportunity is a single-net (N) lease which has over two years of term remaining. The lease commenced on November 1, 2011 and the first option was exercised on November 1, 2016. The tenant pays for Insurance and utilities. The current NOI is $21,637. The tenant has one five-year option remaining with a 9% rent increase.

Retail tenants in the immediate area include Dollar General, Ohio Bureau of Motor Vehicles, Toledo Police Federal Credit Union, Huntington Bank and several small shopping strips. The subject property is situated in close proximity to Glendale Feilbach Elementary School, St. Patrick of Heatherdowns School, Lucas County Recreation Center, and Fairfield Elementary School. The one-mile population is 11,014 with an average household income of $66,668.

INVESTMENT OVERVIEW

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TENANT PROFILES


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Toledo-Bajco Ohio a Bajco Global Management company

Papa John’s International, Inc., operates and franchises pizza delivery and carryout restaurants

Papa John’s began operations in 1984. At December 30, 2018, there were 5,303 Papa John’s

restaurants in operation, consisting of 645 Company-owned and 4,658 franchised restaurants

operating domestically in all 50 states and in 46 countries and territories.

General Information

Tenant Name Toledo-Bajco Ohio a Bajco Global Management company

Website https://www.papajohns.com

Parent Company Papa John's International, Inc.

Headquartered Louisville, KY

Rentable Square Feet 1,450 SF

Percentage of RBA 100.00%

Lease Commencement 11/1/2011

Lease Expiration 10/31/2021

No. of Locations 5,303

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CLOSE PROXIMITY TO:

2531 Key St, Toledo, OH 43614

§ 27,750 Traffic Count (ADV) (Heatherdowns Blvd)

§ 66,119 / 163,248 3-Mile / 5-Mile Population§ $50,091 / $52,408 3-Mile / 5-Mile Median

Household Income§ Multiple Points of Ingress and Egress

The Papa John's Location at 2531 Key Street in Toledo, Ohio consist of a 1,450-square foot single-story building located on a 0.24 acre lot near the intersection of Heatherdowns Blvd. and Eastgate Rd.

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEPAPA JOHN'S - TOLEDO OH

PRICING AND VALUATION MATRIX

PROPERTY NAME


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LOCATION OVERVIEW

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2531 Key St, Toledo, OH 43614




PROPERTY NAME


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REGIONAL AND LOCAL MAP

AERIAL PHOTO


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PROPERTY SUMMARY

OFFERING SUMMARY

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NOTES


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OFFERING SUMMARY

MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.

We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.

Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues to the benefit of our clients.

National platform operating

within the firm’s brokerage offices

$6.24 billion billion total

national volume in 2018

Access to more capital sources than any other firm in the industry

Optimum financing solutions to enhance value

Our ability to enhance buyer pool by expanding finance options

Our ability to enhance seller control

• Through buyer qualification support

• Our ability to manage buyers finance expectations

• Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings

• By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file

WHY MMCC?

Closed 1,678 debt and equity

financings in 2018

ACQUISITION FINANCING


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MARKET OVERVIEW

OVERVIEWTOLEDO

PORT ACTIVITY The Port of Toledo houses two 240-ton cranes, the largest crane facilities of any Great Lakes port. Roughly 8.8 million tons of cargo are shipped annually.

LOWER COST OF LIVINGToledo’s home prices are below larger Ohio metros, allowing 63 percent of households to own a home, similar to the national rate.

LARGE EMPLOYERS BOLSTER PAYROLLSLocal health systems are hiring at a metro-leading pace, with auto manufacturers and suppliers expanding facilities.

The Toledo metro is situated in northwest Ohio and contains Lucas,

Wood and Fulton counties. Portions of the metro border Michigan and

Lake Erie, with Detroit roughly an hour drive north and Cleveland two

hours east. The city of Toledo accounts for nearly half of the metro’s total

population of 611,300, with 285,000 citizens. Metro’s population is

forecast to rise slowly over the next five years.

§ Universities and hospital systems drive Toledo’s employment growth. ProMedica, the University of Toledo, MercyHealth and Bowling Green State University are the metro’s largest employers.

§ The metro remains a hub for auto-related production. GM runs Toledo Transmission, a 2 million-square-foot plant. A Fiat Chrysler plant assembles Jeep Wranglers and producer Dana Holdings Corp. recently constructed a 300,000-square-foot manufacturing facility.

§ In addition to general cargo, the Port of Toledo ships Iron ore, coal, limestone, grain and liquid bulk. § Other employment segments that provide a host of jobs include transportation and retail sales.

DEMOGRAPHICS

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ECONOMY

METRO HIGHLIGHTS

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau


611K2018

POPULATION:

243K2018

HOUSEHOLDS:

37.62018

MEDIAN AGE:

$50,4002018 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

38.0U.S. Median:

$58,8001.9%

Growth2018-2023*:

1.1%

Growth2018-2023*:

MARKETING TEAM

Source: © 2015 Experian

PROPERTY NAME

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CREATED ON APRIL 4, 2019




PROPERTY NAME


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DEMOGRAPHICS

1 Miles 3 Miles 5 Miles

POPULATION2023 Projection 11,031 66,226 166,357

2018 Estimate 11,014 66,119 163,248

2010 Census 11,064 66,086 162,178

2000 Census 11,100 68,229 158,775

INCOME

Average $66,668 $66,620 $72,402

Median $53,308 $50,091 $52,408

Per Capita $29,901 $30,014 $30,261

HOUSEHOLDS

2023 Projection 5,005 30,033 69,210

2018 Estimate 4,924 29,684 67,320

2010 Census 5,029 30,142 67,806

2000 Census 4,932 30,378 65,251

HOUSING

2018 $143,479 $137,892 $140,750

EMPLOYMENT

2018 Daytime Population 16,729 85,358 189,353

2018 Unemployment 2.99% 4.14% 4.59%2018 Median Time Traveled 22 21 21

RACE & ETHNICITY

White 80.82% 75.69% 74.17%

Native American 0.01% 0.04% 0.03%

African American 12.88% 17.47% 18.15%

Asian/Pacific Islander 2.07% 1.99% 2.31%

www.MarcusMillichap.com

Lisa A. Sickinger

First Vice President Investments

Director, Net Leased Properties GroupCincinnati OfficeTel: (937) 299-4958

Fax: (513) 878-7710

[email protected]

License: OH SAL.2005015714

P R E S E N T E D B Y

Documents

PAPA JOHN'S - TOLEDO OH - images4.loopnet.com€¦ · The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement