REPRESENTATICE VIEW AERIAL TOUR Offering Memorandum TACO BELL GROUND LEASE MOUNTAINFreddy’s RANCH MARKETPLACE Frozen Custard 17676Lakewood, W ELLIOT CO RD GOODYEAR, AZ 85338 AERIAL PHOTO TACO BELL GROUND LEASE S ESTRELLA PKWY Walgreens 15,135 CPD McDonald’s W ELLIOT RD 8,915 CPD STARPOINTE RESIDENTS CLUB 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 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 2 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 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. © 2013 Marcus & Millichap ACT ID Y0070402 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0070402 8 8 E F 19 21 COMMUNITY MAP 12 TACO BELL GROUND LEASE AERIAL PHOTO 13 4 16 10 20 E1 F 6 2 19 21 1212 14 13 3 D 4 16 10 20 MOUNTAIN RANCH 1 The original community with North and South lakes, 2 6 Starpointe Residents Club and the Golf Club of Estrella.TM 14 3 D A Golf Canyon David Weekley Homes 5 MOUNTAIN The Enclave •RANCH 480.768.4995 The originalThe Reserve community • 480.768.4997 with North and South lakes, TM StarpointeB Golf Ridge Residents William Club Ryan and Homes the Golf • Club623.386.8871 of Estrella. C B A C Inspire Shea Homes • 480.367.3655 A Golf Canyon David Weekley Homes D Overlook Beazer Homes • 623.399.4760 5 The Enclave • 480.768.4995 CustomThe Reserve Home Sites• 480.768.4997 11 B Golf Ridge William Ryan Homes • 623.386.8871 C B E Sonoran Vistas • 623.386.1000 A C Inspire Shea Homes • 480.367.3655 F Hidden Hills • 623.386.1000 18 D Overlook Beazer Homes • 623.399.4760 Custom Home Sites 17 11 E Sonoran Vistas • 623.386.1000 F Hidden Hills • 623.386.1000 18 9 17 9 15 22 MONTECITO G J Showcases the natural beauty of the Sonoran Desert with miles 15 of natural trails connecting Presidio, neighborhoods and open space. I 22 H MONTECITOG Tranquility William Ryan Homes • 623.386.8871 G J Showcases the natural beauty of the Sonoran Desert with miles ofH natural Palazzo trails Gehan connecting Homes Presidio, • 602.441.5885 neighborhoods and open space. Mirador Terrata Homes • 877.968.3688 I I H GJ TranquilityStone Canyon William KB Home Ryan •Homes 623.217.2372 • 623.386.8871 H Palazzo Gehan Homes • 602.441.5885 I Mirador Terrata Homes • 877.968.3688 J Stone Canyon KB Home • 623.217.2372 ®† 7 CANTAMIA 23 K Our active adult community features its own Village Center†† and culture that blends seamlessly with the Estrella community. ®† 7 CANTAMIA 23 K Our active adult community features its own Village Center†† K CantaMia AV Homes (55–Plus) • 623.474.6960 and culture that blends seamlessly with the Estrella community. K CantaMia AV Homes (55–Plus) • 623.474.6960 2/17 Map not to scale. This artist rendering is for illustration purposes only based upon current development concepts which are subject to change without notice. Actual development may vary from developer’s vision. No guarantee can be made that development will proceed as described. AMENITIES 2/17 Map not to scale. This artist rendering is for illustration purposes only based upon current development concepts which are subject to change without notice. Actual development may vary from developer’s vision. No guarantee can be made that development will proceed as described. AMENITIES1 Information Center 9 Bougainvillea Park 17 Westar Elementary School Paths & Trails 2 North Lake 10 D-Votion Field 18 Estrella Foothills High School Proposed Commercial 1 Information Center 9 Bougainvillea Park 17 Westar Elementary School Paths & Trails 3 South Lake 11 Foothills Community Park 19 Phoenix Children’s Academy Planned Commercial 2 North Lake 10 D-Votion Field 18 Estrella Foothills High School Proposed Commercial 4 Starpointe Residents Club 1212 Mountain Ranch Marketplace 20 Estrella Mountain Preschool Proposed Park 3 South Lake 11 Foothills Community Park 19 Phoenix& Community Children’s Church Academy Planned Commercial 5 Golf Club of Estrella††† 13 Elliot Market Water/Waste Water Campus 4 Starpointe Residents Club 12 Mountain Ranch Marketplace 2021 Estrella Banner MountainHealth Center Preschool Proposed Park 6 Estrella Yacht Club 14 Estrella Mountain Ranch Industrial ††† &at Community Mountain Ranch Church Medical Commons 5 Golf Club of Estrella 13 ElliotPublic Market Safety Facility Water/Waste Water Campus 7 CantaMia Village Center Banner Health Center 2122 Elementary School (proposed) Industrial 6 Estrella Yacht Club 1415 EstrellaPresidio Mountain Ranch at Mountain Ranch Medical Commons 8 Star Tower Public Safety Facility 23 Future Fire Station (proposed) 7 CantaMia Village Center 16 Estrella Mountain Elementary School 22 Elementary School (proposed) 15 Presidio 8 Star Tower 23 Future Fire Station (proposed) 16 Estrella Mountain Elementary School 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 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 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 3 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0070402 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0070402 EXECUTIVE SUMMARY TACO BELL GROUND LEASE TACO BELL GROUND LEASE 17676 W Elliot Rd Goodyear, AZ 85338 FINANCIAL SUMMARY ANNUALIZED OPERATING DATA Price $1,555,555 LEASE YEARS ANNUAL RENT CAP RATE Down Payment 100% $1,555,555 1 - 5 $70,000.00 4.50% Cap Rate 4.50% 6 - 10 $77,000.00 4.95% Building SF 2,527 SF 11 - 15 $84,700.00 5.45% Net Cash Flow 4.50% $70,000 16 - 20 $93,170.00 5.99% Year Built 2014 Lot Size 0.61 Acres OPTIONS ANNUAL RENT CAP RATE Option 1 $102,487.00 6.59% LEASE SUMMARY Option 2 $112,735.70 7.25% Lease Type Absolute Triple-Net (NNN) Ground Lease Option 3 $124,009.27 7.97% Tenant Hot Tacos, Inc. an Arizona corporation Option 4 $136,410.20 8.77% Lease Commencement Date December 17, 2015 BASE RENT $70,000 Lease Expiration Date December 16, 2035 Net Operating Income $70,000 Lease Term Remaining 17.5 Years Total Return 4.50% $70,000 Rental Increases 10% Every 5 Years Renewal Options 4, 5 Year Options 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 4 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. © 2013 Marcus & Millichap ACT ID Y0070402 TENANTAERIAL OVERVIEWPHOTO TACO BELL GROUND LEASE Taco Bell Corp., a subsidiary of Yum! Brands, Inc., (NYSE: YUM), is the nation’s leading Mexicaninspired quick serve restaurant (QSR). Taco Bell serves made-to-order and cus- tomizable tacos, burritos, and specialties such as the ex- clusive Doritos Locos Tacos, gourmet inspired Cantina Bell Menu and lower calorie Fresco Menu. The company encour- ages customers to “Live Más,” both through its food and in ways such as its Feed the Beat music program and nonprofit organization, the Taco Bell Foundation for Teens. Headquarters Irvine, CA Founded 1962 Stock Symbol NYSE: YUM Locations ~7,000 Employees ~175,000 Website www.tacobell.com FRANCHISEE OVERVIEW Desert de Oro Foods (DDO) is Arizona’s largest franchisee of Taco Bell restaurants. The company is owned and oper- ated by a unique team: a brother and sister who have found growing success in the industry over the last three decades. Krystal Burge and Mark Peterson currently operate 230 Res- taurants in 7 States. DDO employs over 3,200 people in the Southwest, who Burge and Peterson regard as the company’s greatest assets. The company’s main focus is service, paired with a dedication to creating happy, repeat customers instilled in the manage-ment at all of DDO’s franchises.