Jacksonville, FL 32218 Confidentiality and Disclaimer
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Boston’s Restaurant and Sports Bar Exclusive Net- Lease Offering Subject Property Offering Memorandum 13070 City Station Dr., Jacksonville, FL 32218 Confidentiality and Disclaimer Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square sales with little or no record of actual performance, or footage of the property and improvements, the presence or The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable; intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify, As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus & responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein. to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc. the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package. evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective written consent of Marcus & Millichap. This Marketing Brochure customers. Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS. this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation, guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the 13070 City Station Dr., Jacksonville, FL 32218 Table of Contents Investment Highlights 4 Financial Analysis 5 Tenant Overview 6 Surrounding Area 7 Location Overview 8 Property Photos 9 Maps 10-11 Demographics / Market Overview 12-13 Subject Property Investment Highlights PRICE: $3,688,827 | CAP: 7.50% | RENT: $276,662 About the Investment New 10-Year Triple-Net (NNN) Lease 2019 Remodel with Significant Tenant Investment Strong 10-Year Operating History at this Location Attractive Rental Increases Corporate Guarantee* About the Location Dense Retail Corridor | Lowe’s, Wal*Mart, Cracker Barrel, McDonald’s, Chick-Fil-A, Hardee’s, Panera Bread, Chili’s, Red Lobster, Best Buy, Olive Garden, Taco Bell, Dunkin Donuts, Logan’s Roadhouse, Tropical Smoothie, Buffalo Wild Wings and Many More Nearby Several National Hotels | Crown Plaza, Days Inn, Comfort Inn, Marriott, Hilton, Holiday Inn, Hyatt, and Many More Subject Property Robust Demographics | Population Exceeds 65,160 Individuals Within a Five-Mile Radius | Projected to Grow 12.7% by 2023 Representative Photo Exceptional Real Estate Fundamentals | 3 Miles from JAX International Airport | 4 Miles from New Amazon Fulfillment Center Strong Traffic Counts | I-95 | 77,233 ADTC About the Tenant / Brand Boston Pizza is the Predominant Casual Dining Restaurant Concept in all of Canada 370 Locations in Canada, US, and Mexico with Plans to Expand to 400+ Locations Across North America Publicly Traded on Toronto Stock Exchange Subject Property Representative Photo Boston's – Jacksonville, FL 4 Financial Analysis PRICE: $3,688,827 | CAP: 7.50% | RENT: $276,662 Property Description RENT SCHEDULE Property Boston’s Restaurant and Sports Bar Lease Year(s) Monthly Amount Annual Amount Escalation (%) Property Address 13070 City Station Dr. City, State, ZIP Jacksonville, FL Year 1 $23,055.17 $276,662.00 - Year Built | Renovated 2008 | 2019 Year 2 $23,055.17 $276,662.00 - Building Size 6,434 SF Year 3 $23,055.17 $276,662.00 - Lot Size +/- 1.29 Acres Year 4 $23,055.17 $276,662.00 - Type of Ownership Fee Simple Year 5 $23,055.17 $276,662.00 - The Offering Year 6 $24,207.93 $290,495.10 5% Year 7 $24,207.93 $290,495.10 - Purchase Price $3,688,827 Year 8 $24,207.93 $290,495.10 - CAP Rate 7.50% Year 9 $24,207.93 $290,495.10 - Annual Rent $276,662 Year 10 $24,207.93 $290,495.10 - Price / SF $573.33 Option Period 1 $25,419.66 $305,035.94 5% Rent / SF $43.00 Option Period 2 $26,492.00 $317,903.94 4% Lease Summary Property Type Net Leased Restaurant INVESTMENT SUMMARY Tenant / Guarantor Corporate* Marcus & Millichap is pleased to present the exclusive listing for a Boston’s Ownership Type Public Restaurant and Sports Bar located at 13070 City Station Dr., Jacksonville, FL Original Lease Term 10 Years 32218. The site is being remodeled with significant tenant investment, and sits on approximately 1.29 acres Lease Commencement June 1, 2019 Lease Expiration August 31, 2029 Boston’s Pizza is subject to a brand new, 10-year Triple-Net (NNN) lease. The Lease Term Remaining 10+ Years annual rent is $276,662. There are Two (2), Five (5) year tenant renewal options Lease Type Triple-Net (NNN) bringing the total term to 20 years. Roof & Structure Tenant Responsible Rent Increases Five Percent (5%) Every Five (5) Years Options to Renew Two (2), Five (5) Year Options Increases in Options See Rent Schedule *[Corporate] Guarantor's liability under this Guaranty shall terminate upon expiration of the sixtieth (60th) full calendar month of the Lease Term. Boston's – Jacksonville, FL 5 Tenant Overview About Boston’s Gourmet Pizza General Information Founded 1964 1964: Gus Agioritis opened the first “Boston Pizza and Spaghetti House” Website in Edmonton, Alberta. https://www.bostons.com/ 1968: Jim Treliving, a young officer with the Royal Canadian Mounted Headquarters Richmond, British Columbia, Canada Police, opened his first franchise location. Ownership Public (Toronto) | BPF-UN.TO 1973: Jim partnered with George Melville and over the next 10 years Market Cap CAD 386.30 Million (as of 7/15/2019) they opened a total of 16 restaurants. 1983: Jim and George purchased the entire 44-unit chain, then known as Current Location Count 370 Locations “Boston Pizza.” Boston Pizza is now the predominant casual dining Expansion Plans 400+ Locations restaurant concept in all of Canada, and Jim owns and oversees operations for over 370 locations.