Circle K 15410 N 40th St Phoenix, AZ -...

C i r c l e K , P h o e n i x , A Z 8 5 0 3 2 | 1

™Circle K1 5 4 1 0 N 4 0 t h S t | P h o e n i x , A Z 8 5 0 3 2O F F E R I N G M E M O R A N D U M

exclusively listed by

D o n m o r t e n s e nBROKER OF RECORD

LIC # LC635678000

Associate

j e f f e r y m i l l e r

Jeffery.Mi l [email protected] (424) 220-7263

MOB (817) 239-1566LIC # 02013110 (CA)

contents

0 4 E X E C U T I V E S U M M A R Y

1 2 a r e a O V E R V I E W

0 6 p r o p e r t y o v e r v i e w

1 0 t e n a n t O V E R V I E W

k y l e m at t h e w sChairman & CEO

[email protected] (310) 919-5757LIC # 01469842 (CA)

4 | O f f e r i n g M e m o r a n d u m

Dense Demographics and an Excellent Retail Corridor

• Phoenix is the largest city in Arizona with a population increase of 45.3% from 1990 to 2000 and 11.8% from 2010 to 2016. With over +260k people in a 5-mile radius, the dense infill and growing population provides security

• This Circle K is strategically positioned half a mile away from Arizona State Route 51 with over 108,000 VPD and immediately on Greenway Rd with 42,000 VPD and 16,000 VPD on 40th street

Investment Grade Property with Healthy Financials

• A recent 10-year extension demonstrates commitment to the site location and strength of the location

• Successful performing location with a very healthy rent to sales ratio

• Lease is corporate-backed with a strong guarantee from Circle K Convenience Stores, Inc. (BBB Investment Grade Rating)

Strategic Corner Opportunity with great security

• Signalized hard Corner with easy egress and regress at an established location that Circle K has successfully operated out of for over 30 years

• Absolute NNN Lease with no landlord maintenance responsibilities, passive income, and multiple options periods

investment highlights

Executive Summary



Annualized Operating DataYear Monthly Rent Annual Rent Per SF Cap Rate

Current thru 6/30/2022

$5,833 $69,996 $24.94 4.50%

7/1/2022-06/30/2027

$6,125 $73,500 $26.18 4.73%

Option 1 - $6,431 $77,175 $27.49 4.96%

Option 2 - $6,753 $81,034 $28.87 5.21%

Option 3 - $7,090 $85,085 $30.31 5.47%

Option 4 - $7,445 $89,340 $31.83 5.74%

Tenant Summary

Tenant Trade Name Circle K, Inc.

Type of Ownership Ground Lease

Lease Guarantor Corporate

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 10 Years

Lease Commencement Date 7/1/2017

Rent Commencement Date 7/1/2017

Lease Expiration Date 6/30/2027

Term Remaining on Lease ±9.75 Years

Increases 5% Increases in the options

OptionsFour, 5-Year Options followed by Two, 10- Year

Options at FMV

Circle K15410 N 40th StPhoenix, AZ 85032

executive Summary

List Price

$1,555,467

Cap rate

4.50%

GLA

2,807 SF

lot size

0.70 Acres (30,623 SF)

year built

1987


Property Overview



the offeringProperty Name Circle K

Property Address 15410 N 40th St

Phoenix, AZ 85032

Assessor’s Parcel Number 214-34-057A

ConstructionFoundation Concrete Slab

Framing Steel

Exterior Brick

Parking Surface Asphalt

Roof Flat

Site DescriptionNumber of Stories One

Year Built 1987

Gross Leasable Area (GLA) ± 2,807 SF

Lot Size ± 0.70 Acres (30,623 SF)

Type of Ownership NNN

Parking ± 22 Surface Spaces

Parking Ratio 7.83 : 1,000 SF

Landscaping Professional

Topography Generally Level

traffic counts> E Greenway Rd ± 42,000 ADT> N 40th Street ± 16,000 ADT


surrounding tenants

E Greenway Rd ± 42,000 ADT

N 40th ± 16,000 ADT


Retail trade area

S u b j e c t P r o p e r t y

1 0 | O f f e r i n g M e m o r a n d u m

tenant Overview


C i r c l e K , P h o e n i x , A Z 8 5 0 3 2 | 1 1

Circle kSince the 1980s, Circle K has been the largest company-owned convenience store chain

(i.e. of non-franchised stores) in the U.S. In the U.S. Circle K stores feature award-winning

Premium Circle K Coffee,® the Polar Pop® cup, beer, snacks, candy, ATMs, Circle K Gift

Cards, money orders, and much more. Some Circle K stores operate gasoline pumps

selling Union 76-branded motor fuels; others sell Mobil, Marathon, ConocoPhillips, Irving,

BP, Sunoco or Shell-branded fuel. The chain operates internationally, branching into

Mexico and continents such as Asia. Since 2003. Circle K Stores, Inc. operates as a

subsidiary of Alimentation Couche-Tard Inc. The Circle K brand re-entered the Canadian

market in 2008, in connection with Couche-Tard’s acquisition of the Circle K convenience

store network. The chain is primarily located in the Southern, Western, Southwestern, and

Midwestern United States.


Parent Company Trade Name

The Pantry Inc.

Ownership

Publ ic

Credit Rating (S&p)

BBB

revenue

$3.14 B

No. of Locations

10,000


a r e a o v e r v i e warea Overview Phoenix is located in the heart of the fastest growing and most dynamic metropolitan area in the country with a

population of over 4 million people. Phoenix has a population of 1.6 million and is the fifth largest city in the United States, forecast to be at least #4 by 2020. Adjacent cities include Scottsdale, Mesa, Chandler, and Glendale, and other

nearby cities include Tucson, Yuma, and Flagstaff.

The Phoenix-Casa Grande-Tucson corridor has been and is expected to be one of the fastest growing areas in the U.S. in the next decades. The U.S. Census Bureau estimates that by 2030 the population of Phoenix will grow to 2.2 million, and the population of the

metro area will reach 6.3 million. Arizona shares a vibrant border with Mexico that facilitates trade between the U.S. and Latin America. This timeless Southwestern backdrop is the perfect setting for family vacations, weekend adventures or romantic getaways. Each year, 16 million leisure

visitors travel to Greater Phoenix.



demographics

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 15,146 148,483 282,897

2017 Estimate 13,967 136,810 260,422

2010 Census 13,554 129,527 241,055

2000 Census 15,077 136,162 241,513

Growth 2017 - 2022 8.44% 8.53% 8.63%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 5,641 58,675 116,441

2017 Estimate 5,357 55,707 110,584

Growth 2017 - 2022 4.46% 6.88% 9.68%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$84,586 $79,469 $89,245

phoenix at a glance

LARGEST CITY IN ARIZONA (5TH IN THE US)

1

#3 BEST CITY TO FIND A JOB

GROSS METRO PRODUCT

$208.5 B

15 MILLION VISITORS - 2016

PHOENIX MAJOR INDUSTRIES & COMMERCIAL ACTIVITYManufacturing and tourism, traditionally the base of the city’s economy, continue to be important to Phoenix. Major industrial products manufactured by companies located in the metropolitan area include aircraft parts, electronic equipment, agricultural chemicals, radios, air-conditioning equipment, leather goods, and native American crafts.

Tourism is an especially vital part of the economy. With more than 15 million visitors from the throughout the United States and Canada annually visiting for the warm weather and sunshine in the Valley of the Sun, Phoenix continues to be an important resort center. Flights from Phoenix travel to 89 locations within the United States and 17 cities internationally including destinations in Norway, Sweden, Greenland,Mexico, India, and Canada. The airport is constantly seeking to improve its facilities as is demonstrated by the nearly 80 ongoing slated projects costing an upwards of $600 million.

Population and economic growth have made Phoenix the center of the state’s economy. More than a third of the state’s entire labor force works in the Phoenix metropolitan area. Further, many Fortune 500 companies operate within the area such as Boeing, Bank of America, Time Warner Telecom, IBM, and Intel.



• The less than 2 square-mile area of downtown Phoenix has experienced $4.7 billion in development between 2004 and 2015.

• There are almost 3,000 residential units in development or under construction and more than 1,000 more pending requests for proposals.

• The area is about to get 1.1 million more square feet of hotels, retail and educational space and 600 more hotel rooms.

• Sales taxes from hotels, stores, restaurants, and bars have gone up 92 percent since 2008.

• More than 12,500 college students have moved in, as Arizona State University, the University of Arizona’s medical school and Eller College of Management, Northern Arizona State University’s Allied Health Program, Summit Law School, Rio Salado Community College and Phoenix College have opened up in the neighborhood.

• Since 2008, the area has netted 60 new restaurants.

Phoenix Development



PROFESSIONAL SPORTS TEAMS

• Arizona Cardinals 1,083,135 2016 Attendance

• Arizona Diamondbacks 2,036,216 2016 Attendance

• Phoenix Suns 708,639 2016 Attendance

• Arizona Coyotes 536,878 Attendance

TOURISMThe tourist industry is the longest running of today’s top

industries in Phoenix. One of the biggest attractions of the Phoenix area is golf, with over 200 golf courses. Located in

Downtown Phoenix, Scottsdale and other surrounding areas are a large array of cultural activities, including the Phoenix

Symphony Hall, Phoenix Art Museum, Center for Creative Photography, Heard Museum and the Pueblo Grande Museum

and Cultural Park.

ASUArizona State University is a public

metropolitan research university with five campuses across the Phoenix metropolitan

area, and four regional learning centers throughout Arizona. The 2018 university

ratings by U.S. News & World Report rank ASU No. 1 among the Most Innovative Schools in

America for the third year in a row

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Circle K located at 15410 N 40th St, Phoenix, AZ 85032 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T


BROKER OF RECORD

Circle K1 5 4 1 0 N 4 0 t h S t | P h o e n i x , A Z 8 5 0 3 2

™

exclusively listed by

D o n m o r t e n s e nBROKER OF RECORD

LIC # LC635678000

Associate

j e f f e r y m i l l e r

Jeffery.Mi l [email protected] (424) 220-7263

MOB (817) 239-1566LIC # 02013110 (CA)

k y l e m at t h e w sChairman & CEO

[email protected] (310) 919-5757LIC # 01469842 (CA)

Circle K 15410 N 40th St Phoenix, AZ -...

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