Actual Site Photo - LoopNet · Marcus & Millichap is pleased to announce the exclusive right to...
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Offering Memorandum
$2,202,500| Investment Details
Over $200,000 price reduction – Seller motivated Perfect for risk averse buyer – Proven QSR operator New 15 year NNN leases to commence upon close of escrow Seasoned location having occupied the site for the last 3 years Located at a signalized hard corner with drive thru Strong traffic count with more than 26,235 vehicles passing in
front of the site daily Located 4 miles north of Tooele Army Depot – Storage Site for war
reserve and training ammunitions Growing Salt Lake Suburb where average household income
exceeds $71,000 within a one mile radius from the site Forbes has Zaxby’s listed as one of the best growing franchisees
in the country Lease calls for 10% rent escalations every five years including
option periods, hedging against inflation
Actual Site Photo
1064 N Main Street, Tooele, Utah 84074
TENANT OVERVIEW
Parent Company: Zaxby’s
Franchised operator: MJM 5G / 9 unit operator with combined net worth > $9.5(mil)
Private Ownership / Franchisee Guarantee
Zaxby’s operates 800 stores in the Southern United States
Headquarters – Athens, Georgia
Website – www.zaxbys.com
Zaxby’s is a franchised chain of casual restaurants offering chicken wings, tenders, sandwiches and salads. The first Zaxby’s was established in Stateboro, Georgia near the university by Zach McLeroy and Tony Townley. They restaurants are known for their tangy and zesty sauces that go from mild to nuclear. The dining rooms are decorated in assorted whimsical objects and signs which often vary in theme by location and region. Some locations in college towns feature objects and decorations related to the local university, making them unofficial college student school spirit go-to joints.
For more information about the success of this QSR, please click on the link entitled BEST AND WORST FOOD FRANCHISES: OUR RANKINGS AND INSIDE THE RISE OF ZAXBY’S CHAIN IN THE US, dated June 30, 2016 (Forbes).
TENANT INFO
SITE PHOTO
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Performance Ford & Chevrolet Dealership
Overview
Price $2,202,500
Gross Leasable Area (estimate) 3,800
Lot Size 1.09 Acres
Net Operating Income $132,148
CAP Rate 6.00%
Year Built 2014
Lease Abstract
Lease Type Modified NNN*
Lease Term 15 Years
Lease Start Close of Escrow
Renewal Options 4x5
Increases 10% Every five years
Roof and Structure Landlord Responsible
THE OFFERINGMarcus & Millichap is pleased to announce the exclusive right to list for sale the within Zaxby’s. Offering a passive investor the opportunity to purchase anewly constructed QSR with one of the fastest growing restaurant chains in the country. A new 15 year modified NNN lease will commence upon close ofescrow, giving a buyer a full 15 years of return on investment. The lease also calls for 10% rent escalations every five years which hedges against inflation.
Years Rent
COE (Years 1-5) $132,148
Years 6-10 $145,362
Years 11-15 $159,899
Option 1 $175,888
Option 2 $193,477
Option 3 $212,825
Option 4 $234,108
* Tenant reimburses landlord for taxes, insurance and premises maintenance as additional rents (monthly). Landlord is responsible for roof & structure repairs and maintenance.
Beehive Storage
Copper Canyon Elem School
Performance Ford & Chevrolet Dealership
Scholar Academy
All Star Bowling
Definition Value
APN 02-127-0-0060
Building SF (ESTIMATE) 3,800
Lot Size 1.09 Acres
SITE PLAN / PARCEL
SALT LAKE CITYOVERVIEW
Centrally located among the major Western U.S. markets, Salt Lake City is known as theCrossroads of the West. The metro consists of three counties: Salt Lake, Tooele andSummit. It is situated in the Great Salt Lake Valley in northern Utah. The region ishemmed in by the Great Salt Lake to the northwest, the Wasatch Mountain Range to theeast and the Oquirrh Mountains to the west. The metro houses 1.2 million people. SaltLake City is the largest city, with approximately 200,000 residents. The highestpercentage of population growth continues to occur in the suburban areas such as Southand West Jordan. The Salt Lake City, Provo-Orem and Ogden-Clearfield metrostogether comprise the Wasatch Front.
MARKET OVERVIEW
METRO HIGHLIGHTS
EMPLOYMENT GROWTHSkilled trade and educated workers, attractive outdoor recreation opportunities and low overhead costs lure employers to the region.
EXPANDING HOUSEHOLD INCOMESThe metro’s household income is consistently well above the national median.
LARGE INSTITUTIONSThe Salt Lake City economy benefits from its status as the capital of Utah and the headquarters of the Church of Jesus Christ of Latter-day Saints.
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REGIONAL OVERVIEW
ECONOMY A stable base of government entities are located in the metro, while growing companies in
the private sector include technology leaders eBay and Oracle Corp. Various companies have located data centers in the metro, including Twitter Inc., Goldman
Sachs and the National Security Agency. Tourism will remain a top employment generator over the coming years. The metro is home
to several world-class ski resorts, including Brighton, Park City, Alta and Snowbird. The Salt Palace Convention Center and the Energy Solutions Arena host conventions and trade shows.
SHARE OF 2016 TOTAL EMPLOYMENT
MAJOR AREA EMPLOYERS
Intermountain Health Care
University of Utah
State of Utah
Delta Airlines Corp.
Zions Bancorporation
Novus Technologies
Cordant Technologies
Smith’s Food and Drug
Wells Fargo Bank
Salt Lake City Community College* Forecast
MANUFACTURING8%
GOVERNMENT
HEALTH SERVICESEDUCATION AND
+OTHER SERVICES
3%
LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES
20%AND UTILITIES
TRADE, TRANSPORTATION CONSTRUCTION
PROFESSIONAL ANDBUSINESS SERVICES
3%INFORMATION
18%
5%
15% 8% 8%
12%
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REGIONAL OVERVIEW
DEMOGRAPHICS
SPORTS
EDUCATION
ARTS & ENTERTAINMENT
The metro is expected to add nearly 70,000 people through 2021, resulting in the formation of roughly 20,000 households.
Median incomes above the national average allow 66 percent of households to afford to own a home, compared with the national rate of 64 percent.
Roughly 30 percent of people age 25 and older hold bachelor’s degrees; of those residents, 10 percent also have obtained a graduate or professional degree.
The Wasatch Range provides a multitude of year-round recreational opportunities,
including ski resorts and more than a dozen national parks and monuments. Cultural
venues include Abravanel Hall, the Rose Wagner Performing Arts Center, Hale Centre
Theatre and the Off Broadway Theatre. Salt Lake City’s major educational institution is the
University of Utah, which also contains a medical school. The university is known for its
technology transfer program that moves state-of-the-art research into useful applications
in the business world. There are 10 other colleges and universities in the metro. In addition,
two other major educational institutions are located just outside of Salt Lake City: Brigham
Young University in Provo and Utah State University in Logan.
322016
MEDIAN AGE:
U.S. Median:
37.7
$64,300 2016 MEDIAN
HOUSEHOLD INCOME:
U.S. Median:
$54,500
1.2M2016
POPULATION:
Growth2016-2021*:
5.7%
392K2016
HOUSEHOLDS:
5.8%
Growth2016-2021*:
QUALITY OF LIFE
2016 Population by Age
0-4 YEARS
8%5-19 YEARS
23%20-24 YEARS
7%25-44 YEARS
31%45-64 YEARS
21%65+ YEARS
10%
* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
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REGIONAL OVERVIEW
DEMOGRAPHICS
$71,0731-mile radius average HH Income
36,734 11,3865-mile population density 5-mile Number of households
1064 N Main Street, Tooele, Utah 84074
EXCLUSIVELY REPRESENTED BY:
Lior RegenstreifSenior Managing Director InvestmentsSenior Director Net Leased Properties Group
16830 Ventura Blvd., Suite 100Encino, CA 91436818.907.9525 DirectE-mail: [email protected]
IN STATE BROKER OF RECORD:
Gary Mangum36 S State St., Suite 2650Salt lake City, UT 84111801.736.2600 Direct
E-mail: [email protected]