San Diege, CA 92110 3777 MIDWAY DRIVE A SINGLE TENANT NET LEASED ARBY’S IN A PRIME AND Drive-thru AFFLUENT SAN DIEGO LOCATION WITH OVER FIFTEEN YEARS OF OUTSTANDING OPERATING HISTORY INVESTMENT ADVISORS BRANDON MICHAELS STEVEN SCHECHTER Senior Managing Director of Investments First Vice President Investments Senior Director, National Retail Group National Retail Group Tel: (818) 212-2794 Tel: (818) 212-2793 Fax: (818) 212-2710 Fax: (818) 212-2710 [email protected] [email protected] License: CA #01434685 License: CA #01089464 www.BrandonMichaelsGroup.com www.BrandonMichaelsGroup.com SPECIAL COVID-19 NOTICE All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. 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PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. 1 2 3 4 PROPERTY OVERVIEW FINANCIAL ANALYSIS COMPARABLES ANALYSIS AREA OVERVIEW SOUTHERN CALIFORNIA'S PREMIER SALES TEAM 1 PROPERTY OVERVIEW SEAWORLD UNIVERSITY OF SAN DIEGO SAN DIEGO W MISSION BAY DR PECHANGASPORTS CENTER SEA WORLD DR MIDWAY TEMECULA DISTRICT HEIGHTS MIDWAY DR OCEAN MISSON HILLS BEACH HILLCREST ROBB FIELD SKATE PARK COLUMBIA COLLEGE - SAN DIEGO LOMA PORTAL SAN DIEGO LIBERTY INTERNATIONAL SAN DIEGO • CA STATION AIRPORT The Brandon Michaels Group of Marcus & Millichap is pleased to present for sale a single tenant Arby’s, located at 3777 Midway Drive in San Diego, California. Arby’s has successfully operated at this location for over fifteen years, and recently signed a brand new 15 year absolute triple net lease in April 2020 with three 5 year options and eight percent increases every five years. The lease is backed by a 30+ unit Arby’s franchisee, and also has a personal guarantee in place for five years from the commencement of the lease. San Diege, CA 92110 Strategically located on a signalized corner, less than a mile from the 8 Freeway, Arby’s is ideally located in the 3777 MIDWAY DRIVE affluent Point Loma sub-market of San Diego, a dense and affluent highly-amenities sub-market known as one of Drive-thru the strongest locations throughout San Diego. Centrally located in the heart of the Midway District, the subject property is within close proximity to Sea World, the Pechanga Arena of San Diego, University of San Diego, as well as a plethora of high-end national retailers, restaurants, banks, grocers, pharmacies, and hotels. The 1,793 square foot building is situated on 12,095 square feet of land and benefits from high daily traffic counts A SINGLE TENANT NET north of 20,000 vehicles per day.. Lodging options within half mile radius include the Wyndham, Holiday Inn, LEASED ARBY’S IN A PRIME Heritage Inn, Bay inn, and Green World Inn. AND AFFLUENT SAN DIEGO Arby’s benefits from close proximity to dense single family residential and nearby freeway access to the I-8. The LOCATION WITH OVER FIFTEEN subject property benefits from a dense and affluent local demographic, with a three mile population in excess of YEARS OF OUTSTANDING 113,289 and an average household income of over $91,000 within one mile and over $109,000 within three miles. OPERATING HISTORY Beyond local density, the location sees frequent tourist and visitor traffic. 3777 Midway Drive creates a unique and rare opportunity to purchase a single tenant net leased asset in Southern California’s fast growing residential community of San Diego. The Midway District provides strong daytime vehicle activity as well as nightlife activity from nearby venues such as the Pechango Arena, which seats 12,000 for indoor football, 12,920 for ice hockey and box lacrosse, 14,500 for basketball and tennis, 5,450 for amphitheater concerts and stage shows, 8,900–14,800 for arena concerts, 13,000 for ice shows and the circus, and 16,100 for boxing and mixed martial arts. Arby’s Inc. is a leading global fast-food restaurant chain founded in 1964 with more than 3,500 restaurants worldwide. They currently have franchises in 48 states and 8 countries, and are headquartered in Atlanta Georgia. Annual total sales for 2019 equal 3.9 Billion. They are currently ranked as the third highest sandwich chain in sales. 8 | Arby’s - 3777 Midway Drive, San Diego, CA 92110 Arby’s - 3777 Midway Drive, San Diego, CA 92110 | 9 INVESTMENT HIGHLIGHTS EXCELLENT SAN DIEGO LOCATION STABLE AND SECURE INCOME STREAM WITH STRONG GUARANTEE PECHANGA ARENA Prime Point Loma location in the heart of one of San Diego’s SAN DIEGO • • 30+ Unit Arby’s Franchisee with Personal Guaranty for densest and most affluent sub-markets Five Years CAMINO DEL RIO W • Excellent Visibility and Frontage • Arby’s has over 3500 locations Worldwide • High daily traffic counts along a major San Diego thoroughfare • NNN Lease expires 2035 with three – 5 year options • Located on a signalized corner on Midway Drive • Rental increases of 10% every five years Management Free Investment • Within 1-mile of the I-8 Freeway • SPORTS ARENA BLVD • Scheduled to do full renovation by 2023 • Within .5 Miles of the Pechango Arena • Rare opportunity to acquire a drive-thru restaurant site in MIDWAY DR • Walk Score of 73/100, a very walkable area San Diego • Transit score of 43 • Located along Bus Route • National Retailers in Immediate Area Include Home Depot, Marshalls, Bank of America, Wendy’s, McDonald’s, Jack in the Box • Traffic Counts in Excess of 20,000 vehicles per day San Diege, CA 92110 3777 MIDWAY DRIVE Drive-thru STRONG IMMEDIATE DEMOGRAPHICS & ROSECRANS ST POPULATION DENSITY Average household Income of $91,605 within 1-Mile Radius • PACIFIC HWY • Over 113,289 people within a 3- mile radius • Strong Local Economy with significant job growth over a multitude of diverse sectors 10 | Arby’s - 3777 Midway Drive, San Diego, CA 92110 Arby’s - 3777 Midway Drive, San Diego, CA 92110 | 11 PROPERTY HIGHLIGHTS PRICE BUILDING SF LEASE TYPE $3,250,000$3,520,000 1,7931,793 SFSF $6.13NNN CAP RATE LAND SF LEASE TERM 3.75%3.75% 12,09112,091 SFSF 1515 YearsYears 3777 Midway Drive 3777 Midway Drive ADDRESS (CONTINUED) San Diego, CA 92110 San Diego, CA 92110 PRICE $3,520,000 LEASE START DATE 2005 BUILDING SF 1,793 SF LEASE EXPIRATION DATE 3/31/2035 LAND SF 12,091 SF OPTIONS 3 - 5 years PRICE/SF (BUILDING) $1,963 INCREASES 10% every 5 years PRICE/SF (LAND) $291 SA Food Services LEASE GUARANTOR (30+ locations; personal guarantee for CAP RATE 3.75% initial five years of new lease term) APN NUMBER 441-250-21-00 2018 SALES REVENUE $37,289,511 ZONING Commercial * The tenant just signed a new 15 year lease 4/2020.