Chick-Fil-A Ground Lease Cicero, New York (Syracuse Msa)
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CHICK-FIL-A GROUND LEASE CICERO, NEW YORK (SYRACUSE MSA) OFFERING MEMORANDUM CHICK-FIL-A CICERO, NEW YORK (SYRACUSE MSA) EXCLUSIVELY LISTED BY DUSTIN JAVITCH CRAIG FULLER Senior Associate Senior Vice President Investments Net Leased Properties Group Senior Director, National Retail Group CLEVELAND CLEVELAND Phone: (216) 264-2025 Phone: (216) 264-2043 Fax: (614) 474-1696 Fax: (614) 474-1696 [email protected] [email protected] License: OH SAL.2012000193 License: OH SAL.2008001551 SCOTT WILES ERIN PATTON Senior Vice President Investments Senior Vice President Investments Senior Director, National Retail Group Senior Director, National Retail Group CLEVELAND COLUMBUS Phone: (216) 264-2026 Phone: (614) 360-9035 Fax: (614) 474-1696 Fax: (614) 474-1696 [email protected] [email protected] License: OH SAL.2005013197 License: OH SAL.2004010274 OFFICES NATIONWIDE AND THROUGHOUT CANADA WWW.MARCUSMILLICHAP.COM INVESTMENT OVERVIEW INVESTMENT HIGHLIGHTS Marcus & Millichap is pleased to present a brand new construction ► Brand New Construction Chick-fil-A in Syracuse MSA | Cicero, NY is 10 5,000-square foot Chick-fil-A with drive-thru located in Cicero Miles from Downtown Syracuse CHICK-FIL-A (Syracuse MSA), New York. Chick-fil-A signed a rare twenty-year ► Absolute NNN Ground Lease with 20 Year Lease Term | Zero absolute NNN ground lease featuring ten percent (10%) rental Landlord Responsibilities increases every five years during the initial term and eight, 5-year renewal options. The lease is guaranteed by Chick-fil-A, Incorporated ► 10 Percent Rent Bumps Every Five Years in Initial Term and who registered $8 billion in revenue in 2016 and operates more than Renewal Options 2,100 locations. ► Outparcel to Home Depot and Directly Next to Newly Proposed Starbucks // PROPERTY ANALYSIS PROPERTY // The site is located as an Outparcel to a Home Depot and directly next ► Strong Visibility and Access to 26,820 Vehicles Per Day Along to a soon to be constructed Starbucks. It is located directly along Brewerton Road Brewerton Road, a highly trafficked thoroughfare which sees more ► Corporate Guaranty | 2,100+ Locations with $8 Billion in Revenue than 28,600 vehicles per day. This property benefits from being in 2016 a half mile from the Interstate 481, a major east-west highway in Syracuse which sees more than 51,200 vehicles per day. The site ► Dense Retail Corridor | Outparcel to Home Depot | Next to Wegmans is surrounded by major retailers including Home Depot, Wegmans, Supermarket | More Than 2.1 Million Square Feet of Retail Within Lowe’s, Price Chopper, Marshalls and Panera. The property sits One Mile Radius a building away from the Entrance to Driver’s Village; New York ► Strong Demographic Area | More Than 85,288 Residents With an States only automotive megacenter featuring over 20 car franchises Average Household Income Greater Than $75,179 in the Five Mile including Porsche, BMW, Lexus, Audi and many more. Radius Cicero is located in Northern Onondaga County roughly 10 miles ► Half of a Mile from Interstate-481 | Major East-West Highway with north of downtown Syracuse. Major highways including U.S. Route More Than 51,250 Vehicles Per Day 11, Interstate 81, Interstate 481, and New York State Route 31 all pass through Cicero. 3 SHORT-RANGE RETAILER AERIAL CHICK-FIL-A // PROPERTY ANALYSIS PROPERTY // 4 EXECUTIVE SUMMARY CHICK-FIL-A OFFERING SUMMARY Offering Price $2,750,000 7932 Brewerton Road Cap Rate 4.00% Cicero, NY, 13039 (Syracuse MSA) Annual Rent Years 1-10 $110,000 Gross Leasable Area (GLA) 5,000 SF Price/SF (GLA) $550.00 Year Built/Renovated 2018 CHICK-FIL-A Lot Size 1.19 Acres Occupancy 100% LEASE SUMMARY Tenant Chick-Fil-A Lease Type Absolute NNN Ground Lease // PROPERTY ANALYSIS PROPERTY // Roof and Structure Tenant Ownership Private Lease Guarantor Chick-Fil-A, Inc. Original Lease Term 20 Years Rent Commencement Date 01/02/2018 RENT SCHEDULE Estimated Lease Expriation Date 01/31/2038 Base Term Annual Rent Monthly Rent CAP Rate Remaining Lease Term 20 Years Years 1-5 $110,000.00 $9,166.67 4.00% Renewal Options Eight, 5-Year Years 6-10 $121,000.00 $10,083.33 4.40% Rent Increases 10% Every 5 Years Years 11-15 $133,100.00 $11,091.67 4.84% Option to Terminate None Years 16-20 $146,410.00 $12,200.83 5.32% Option to Purchase None Option Terms Annual Rent Monthly Rent CAP Rate Right of First Offer Yes, 15-Days Written Notice 1st Option: Years 21-25 $161,051.00 $13,420.92 5.86% DEMOGRAPHIC SUMMARY 2nd Option: Years 26-30 $177,156.10 $14,763.01 6.44% 1-Mile 3-Miles 5-Miles 3rd Option: Years 31-35 $194,871.71 $16,239.31 7.09% 2017 Population 5,309 41,926 85,288 4th Option: Years 36-40 $214,358.88 $17,863.24 7.79% 2022 Population Projection 5,288 43,333 87,761 5th Option: Years 41-45 $235,794.77 $19,649.56 8.57% 2017 Households 2,180 17,273 36,400 6th Option: Years 46-50 $259,374.25 $21,614.52 9.43% 2022 Households Projection 2,202 17,984 37,762 7th Option: Years 51-55 $285,311.67 $23,775.97 10.37% Average Household Income $74,256 $78,820 $75,179 8th Option: Years 56-60 $313,842.84 $26,153.57 11.41% Median Household Income $59,975 $65,564 $61,044 5 TENANT OVERVIEW & PROPERTY DETAILS THE OFFERING Tenant Chick-Fil-A CHICK-FIL-A Property Address 7932 Brewerton Road Cicero, NY, 13039 SITE DESCRIPTION Parking 55 Spaces Available Topography Level Number of Tax Parcels One // PROPERTY ANALYSIS PROPERTY // Parcel Number 043.-01-10.2 Atlanta-based Chick-fil-A, Inc. is a family owned and LEASE RESPONSIBILITIES privately held restaurant company founded in 1946. Chick- Roof Tenant Responsibility fil-A is the nation’s largest quick-service chicken restaurant Structure Tenant Responsibility chain renowned for its pioneering innovations and delicious Parking Lot Tenant Responsibility products--including the ever-popular Chick-fil-A Chicken HVAC Tenant Responsibility Plate Glass & Doors Tenant Responsibility Sandwich. Chick-fil-A serves freshly prepared food in more Utilities Tenant Responsibility than 2,200+ restaurants in 43 states and Washington, D.C. Real Estate Taxes Tenant Responsibility Chick-fil-A system sales exceeded $8 billion in 2016, which Property Insurance Tenant Responsibility marks 49 consecutive years of sales growth. Chick-fil-A Liability Insurance Tenant Responsibility ranked first for customer satisfaction in the Limited Service Common Area Maintenance Tenant Responsibility Restaurants industry according to the 2015 American TENANT OVERVIEW Customer Satisfaction Index and received the highest ACSI Ownership Private score ever in the industry. The company was also recognized Estimated Sales Volume $8 Billion (2016) Average Annual Sales Per Unit $3.5 - $4.4 Million* in 2015 as America’s “Top Chicken Restaurant Brand” by Number of Locations 2,200+ The Harris Poll and the only restaurant brand named to the Headquartered College Park, GA 106 Top 10 “Best Companies to Work For” by 24/7 Wall Street. *Depending on source (QSR Magazine or Nation’s Restaurant News) LONG-RANGE RETAILER AERIAL CHICK-FIL-A // PROPERTY ANALYSIS PROPERTY // 7 REGIONAL MAP CHICK-FIL-A CHICK-FIL-A // PROPERTY ANALYSIS PROPERTY // 8 SITE PLAN CHICK-FIL-A // PROPERTY ANALYSIS PROPERTY // 9 DEMOGRAPHICS HIGHLIGHTS CHICK-FIL-A // MARKET OVERVIEW // 85,288 $78,820 POPULATION WITHIN 5 MILES AVERAGE HOUSEHOLD INCOME 3 MILE RADIUS 0.23% 2.89% POPULATION GROWTH SINCE 2010 PROJECTED POPULATION GROWTH IN 5 MILE RADIUS OVER NEXT 5 YEARS IN A 5-MILE RADIUS 10 UNIT TYPE 1 MILE 3 MILES 5 MILES HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES 2017 Estimate 2017 Estimate 5,309 41,926 85,288 Total Population $150,000 or More 6.1% 7.1% 6.7% 2022 Projection $125,000 - $149,999 5.8% 6.6% 5.9% 5,288 43,333 87,761 Total Population $100,000 - $124,999 12.5% 11.5% 10.4% 2010 Census $75,000 - $99,999 14.9% 17.1% 15.7% 5,374 42,058 85,084 Total Population $50,000 - $74,999 20.9% 21.9% 21.7% Projected Growth 2017-2022 $35,000 - $49,999 12.3% 12.3% 13.8% 0% 3.35% 2.89% Total Population $25,000 - $34,999 10.3% 8.5% 9.9% Growth 2010-2017 Under - $25,000 17.3% 15.1% 15.8% 0% 0% 0.23% Total Population CHICK-FIL-A Average Household Income $74,256 $78,820 $75,179 Median Household Income $59,975 $65,564 $61,044 HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES // MARKET OVERVIEW // Population By Age 2017 Estimate Total Population 5,309 41,926 85,288 Under 20 Years 25.2% 25.0% 23.9% 3.74% 20 - 24 Years 5.9% 5.2% 5.4% 25 - 34 Years 12.8% 12.3% 14.1% PROJECTED HOUSEHOLD GROWTH 35 - 44 Years 12.4% 13.2% 12.7% OVER NEXT 5 YEARS IN A 5-MILE RADIUS 45 - 54 Years 14.4% 15.2% 14.5% 55 - 64 Years 14.0% 13.8% 13.6% 65+ Years 15.3% 15.3% 15.8% Median Age 40.0 40.7 40.0 HOUSEHOLDS 1 MILE 3 MILES 5 MILES 2017 Estimate Population 25+ by Education Level 2,180 17,273 36,400 Total Households 2017 Estimate Population Age 25+ 3,655 29,285 60,237 2022 Projection Elementary (0-8) 1.9% 1.4% 1.4% 2,202 17,984 37,762 Total Households Some High School (9-11) 5.9% 4.9% 5.1% 2010 Census High School Graduate (12) 32.5% 30.4% 30.7% 2,191 17,189 36,010 Total Households Associates Degree Only 15.2% 14.0% 13.5% Growth 2017-2022 Bachelors Degree Only 17.9% 19.1% 18.7% 1.0% 4.1% 3.74% Total Households Graduate Degree 8.5% 10.1% 10.3% Growth 2010-2017 Some College, No Degree 17.6% 19.4% 19.7% 0% 0.48% 1.08% Total Households Owner Occupied Population by Gender 1,622 13,391 25,186 Total Households 2017 Estimate Total Population 5,309 41,926 85,288 Renter Occupied Female Population 53.1% 51.5% 51.6% 484 3,219 9,529 Total Households Male Population 46.9% 48.5% 48.4% 11 MARKET OVERVIEW SYRACUSE OVERVIEW The Syracuse metro is the economic and educational hub of Central New York.