Habit Burger (Yum! Brands) & Wss Shoes
Total Page:16
File Type:pdf, Size:1020Kb
HABIT BURGER (YUM! BRANDS) & WSS SHOES 5120 & 5210 WEST INDIAN SCHOOL ROAD, PHOENIX, ARIZONA OFFERING MEMORANDUM 22,000 STUDENTS 17 DESERT SKY MALL 60 17,000 STUDENTS 10 DOWNTOWN INDUSTRIAL PARK PHOENIX The information in this package 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. © 2021 Marcus Millichap MARCUS & MILLICHAP 2 // Habit Burger (Yum! Brands) & WSS Shoes Executive Summary Lessee Information as of June 2021 5120 & 5210 West Indian School Road, Phoenix, AZ 85031 FINANCIAL SUMMARY Price $8,230,000 Cap Rate 5.55% Total Net Operating Income $456,800 Building Size 13,100 SF Year Built 2020 Lot Size 2.02 Acres Rent Roll STREET % OF ANNUAL APPROX. LEASE LEASE LEASE RENEWAL RENTAL TENANT GLA LEASE TERM NO. GLA RENT RENT PSF COMMENCEMENT EXPIRATION TYPE OPTIONS INCREASES WSS Shoes 4, 5 Year 10% Every 5 5120 10,100 77% $282,800 $28.00 6/1/2019 5/31/2029 10 Years NN (Eurostar, Inc.) Options Years The Habit 3, 5 Year 10% Every 5 5210 3,000 23% $174,000 $58.00 9/1/2020 8/31/2030 10 Years Abs. NNN Burger Grill Options Years Total 13,100 SF 100% $456,800 MARCUS & MILLICHAP 3 // Habit Burger (Yum! Brands) & WSS Shoes Lease Summaries TENANT Eurostar, Inc. TENANT The Habit Restaurants, LLC (Yum! Brands) GUARANTOR Eurostar, Inc. GLA 3,000 SF GLA 10,100 SF LEASE TERM 10 Years LEASE TERM 10 Years ANNUAL RENT $174,000 ANNUAL RENT $282,800 OPTIONS 3, 5 Year Options OPTIONS 4, 5 Year Options LANDLORD None RESPONSIBILITIES LANDLORD Roof & Structure RESPONSIBILITIES TAXES Tenant shall pay its pro rata share. TAXES Tenant shall pay its pro rata share. INSURANCE Tenant shall pay its pro rata share. INSURANCE Tenant shall pay its pro rata share. ASSIGNMENT Tenant shall not assign or sublet without Landlord’s consent. & SUBLETTING ASSIGNMENT Tenant shall not assign or sublet without Landlord’s consent. & SUBLETTING TERMINATION OPTION None FIRST RIGHT OF 10 Days REFUSAL TERMINATION OPTION None MARCUS & MILLICHAP 4 // Habit Burger (Yum! Brands) & WSS Shoes MARYVALE HIGH SCHOOL 2,860 Students SPRING TRAINING Walgreens 46,200 CPD W INDIAN SCHOOL RD 44,890 CPD N 51ST AVE CAR WASH MARCUS & MILLICHAP 5 // Habit Burger (Yum! Brands) & WSS Shoes DOWNTOWN PHOENIX SPRING TRAINING CAR MCDONALD’S WASH Walgreens 44,890 CPD N 51ST AVE 46,200 CPD W INDIAN SCHOOL RD MARCUS & MILLICHAP 6 // Habit Burger (Yum! Brands) & WSS Shoes Property Description DEMOGRAPHICS 1-mile 3-miles 5-miles Population 2025 Projection 25,171 220,496 494,898 2020 Estimate 24,914 219,345 490,040 Growth 2020 – 2025 1.03% 0.52% 0.99% Households 2025 Projection 6,336 59,650 147,891 2020 Estimate 6,293 59,438 146,191 Growth 2020 – 2025 0.69% 0.36% 1.16% INVESTMENT HIGHLIGHTS Income » 10-Year Leases with 10% Rental Increases Every 5 Years 2020 Est. Average $50,930 $48,700 $53,353 » Corporate Guaranty with WSS Shoes (Eurostar, Inc.) Household Income 2020 Est. Median » Absolute Triple-Net Lease with The Habit Burger Grill (Drive-Thru Location) $40,434 $38,106 $41,288 Household Income » 490,040 Residents within a 5-Mile Radius - Dense Phoenix Infill 2020 Est. Per $12,877 $13,259 $16,013 » Outparcel to Walmart Supercenter Capita Income » Situated in Major Retail Corridor - Walmart, Ross, Ace Hardware, McDonald’s, Raising Cane’s, El Super, and More » High Traffic Location Along West Indian School Road, a Major Thoroughfare - Visible to Over 46,200 Cars/Day » Across from American Family Fields of Phoenix Baseball Park, Spring Training Home to the Milwaukee Brewers » Nearly 91,000 Cars/Day at the Indian School & 51st Avenue Intersection » Less Than 10 Minutes from Grand Canyon University (22,000+ Students) MARCUS & MILLICHAP 7 // Habit Burger (Yum! Brands) & WSS Shoes Tenant Overview Los Angeles, California Eurostar, Inc. 1984 80+ www.shopwss.com Headquarters Parent Company Founded Locations Website WSS is a retail chain of shoe stores headquartered in Los Angeles, California enjoys a diverse and loyal customer base due to their focus on relationships, not with over 80 retail outlets. The company primarily serves working-class, under- just transactions. WSS offers customers the brands they want at everyday values, served communities within bustling, city neighborhoods. WSS retail outlets are including Nike, Adidas, Vans, Converse, Puma, and Jordan. located throughout California, Arizona, Texas, and Nevada. WSS benefits their Eurostar, Inc. operates as a footwear retailer for, specializing in the sale of mens’, communities by hiring locally and consistently promoting within. Today, WSS womens’, and childrens’ footwear. MARCUS & MILLICHAP 8 // Habit Burger (Yum! Brands) & WSS Shoes Tenant Overview Irvine, California Yum! Brands 1969 300+ www.habitburger.com Headquarters Parent Company Founded Locations Website The Habit Burger Grill is a burger-centric, fast casual restaurant concept that The first Habit Burger Grill opened in Santa Barbara, California in 1969 and has specializes in preparing fresh, made-to-order chargrilled burgers and sandwiches since grown to more than 300 restaurants in U.S. states including California, featuring USDA choice tri-tip steak, grilled chicken, and sushi-grade albacore Arizona, Florida, Idaho, Maryland, Nevada, New Jersey, Utah, Virginia, and tuna cooked over an open flame. The menu also features made-to-order salads Washington, as well as internationally in Cambodia and China. In March 2020, and an array of sides, shakes, and malts. Yum! Brands, the parent company of Taco Bell and KFC, acquired Habit Burger. MARCUS & MILLICHAP 9 // Habit Burger (Yum! Brands) & WSS Shoes Property Photos MARCUS & MILLICHAP 10 // Habit Burger (Yum! Brands) & WSS Shoes Location Overview 3 Miles to Grand Canyon University 7 Miles to Downtown Phoenix 8 Miles to Westgate Entertainment District 12 Miles to Phoenix Sky Harbor International Airport The Phoenix metro consists of Maricopa and Pinal counties, and includes more High-tech manufacturing has been a powerful driver in the local economy for than 30 incorporated and more than 30 unincorporated towns and cities. Since two decades. The region’s relatively low cost of doing business has encouraged 2000, the population in the metro increased by more than 38 percent. The several manufacturers to remain and expand in the area, while luring others. The largest city is Phoenix, which encompasses about 520 square miles, is the capital strengthening economy has drawn job seekers to the area, boosting the housing city and boasts a population of more than 1.5 million. market. Phoenix offers a lower cost of living than other metros its size, a moderate As one of the primary beneficiaries of the massive shift in the U.S. population climate, and a wide variety of recreational and cultural activities. from north to south, the Phoenix metro has had little difficulty finding workers. The Phoenix region boasts almost 300 days of sunshine annually, low humidity Phoenix claims five Fortune 500 headquarters, including Freeport-McMoRan, and mild winters. In addition to hiking, camping and boating, sports enthusiasts Republic Services, Insight Enterprises, Avnet and PetSmart. Construction, high- can enjoy one of the most complete lineups of major league teams found in any tech manufacturing, healthcare and tourism dominate the Phoenix economy. The city, including teams in all four major sports. The Cactus League holds spring local economy has strengthened since the recession, with retail sales projected training baseball throughout the Valley, and the area has numerous golf courses above 8 percent this year and hotel occupancy levels rising. and tennis courts. MARCUS & MILLICHAP 11 // Habit Burger (Yum! Brands) & WSS Shoes [ exclusively listed by ] Mark J. Ruble Chris N. Lind Executive Managing Director Senior Vice President 602 687 6766 602 687 6780 [email protected] [email protected] Offices Nationwide www.marcusmillichap.com NET LEASED DISCLAIMER entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property. property at this time, please return this offering memorandum to Marcus & Millichap. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, This offering memorandum has been prepared to provide summary, unverified financial and physical information Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any to prospective purchasers, and to establish