Conﬁ dential Offering Memorandum Chuy’s Mesquite …€¦Freddy’s Frozen Custard Lakewood, CO...

Freddy’s Frozen CustardLakewood, CO

DRZFREO OGITI

Confi dential Offering Memorandum

Chuy’s Mesquite Broiler Restaurant

7101 E. 22nd Street

Tucson, AZ 85717

Exclusively Listed By:

The information contained in the following offering memorandum is proprietary and strictly confi dential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confi dence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverifi ed fi nancial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected fi nancial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the fi nancial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verifi ed, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Confi dentiality Agreement

exclusively listedExclusively listed by:

OFFICES NATIONWIDE

www.marcusmillichap.com

Jamie MedressSenior Vice President InvestmentsPHOENIX OFFICETel: (602) 687-6778Fax: (602) [email protected]

Mark RubleFirst Vice President InvestmentsPHOENIX OFFICETel: (602) 687-6766Fax: (602) [email protected]

Investment Sales:

Chuy’s Mesquite Broiler

EXECUTIVE SUMMARYOff ering Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

PROPERTY DESCRIPTIONInvestment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Regional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Aerial Photograph . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Site Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

FINANCIAL ANALYSIS Financial Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Tenant Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

MARKET OVERVIEWMarket Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Demographic Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Table of Contents

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

EXECUTIVE SUMMARY

Th is 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 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 V0070274

2

EX

EC

UT

IVE

SU

MM

AR

Y

PR

OP

ER

TY

DE

SC

RIP

TIO

N

FIN

AN

CIA

L

AN

ALY

SIS

MA

RK

ET

OV

ER

VIE

W


OFFERING SUMMARY

Offering Price $1,044,000

Cap Rate 6.5%

SF 2,500 SF

Lot Size .49 Acres

Price/SF $417.60

Year Built 1982

LEASE SUMMARY

Lease Type Absolute Triple-Net (NNN) Lease

Tenant JBL Restaurant Investments, Inc. dba Chuy’s

Lease Guarantor Personal Guarantee

Original Lease Term 15 Years

Lease Commencement Date November 1, 2014

Lease Expiration Date October 31, 2029

Remaining Lease Term 15 Years

Renewal Options 2, 5 Year Options

Increases 2% Annual Increases

CHUY’S MESQUITE BROILER

7101 E. 22nd StreetTucson, AZ 85717

*There is a billboard lease with Eller Media Company which generates $510 in annual income. The term of the lease is year-to-year and can be canceled at any time.

descriptionP R O P E R T Y D E S C R I P T I O N

EXTERIOR PHOTO

PROPERTY DESCRIPTION

5

EX

EC

UT

IVE

SU

MM

AR

Y

PR

OP

ER

TY

DE

SC

RIP

TIO

N

FIN

AN

CIA

L

AN

ALY

SIS

MA

RK

ET

OV

ER

VIE

W



Chuy’s Mesquite Broiler is located at 7101 E. 22nd Street in Tucson, Arizona. Th e subject is an approximate 2,500-square foot single-tenant retail building on an estimated .49 acres of land. Th e brand new lease with JBL Restaurant Investments, Inc. (2 unit operator) is absolute triple-net (NNN) and commenced on November 1, 2014 for a term of 15 years. Th ere are 2% annual rent increases, two, fi ve year renewal options and a personal guarantee for the term of the lease. Although there is a new lease in place, Chuy’s has been operating at this location since 1997. The Chuy’s concept began in 1978 with locations in Arizona and California. Chuy’s cooks everything on a mesquite grill which is visible from the entrance. Mesquite grilled chicken is the specialty of Chuy’s, but they also serve tri-tip beef and seafood such as fi sh and shrimp. Also included in the offering is a billboard lease with Eller Media Company which generates $510 in annual income. The term of the lease is year-to-year and can be canceled at any time.

Chuy’s is located on the hard signalized corner of 22nd Street and Kolb Road within Palo Verde Plaza. Surrounding tenants within the plaza include Goodwill, Payless, Popeyes, Filiberto’s, Pep Boys, Arby’s and Desert Rat. Across the street from the subject property is a Toyota dealership, 99 cent store, Jack in the Box, Starbucks, SmashBurger, McDonald’s, Bank of America, Wells Fargo, Sally Beauty Supply, ACE Hardware, Brake Masters, Enterprise and Tucson Bowl. Palo Verde High School is also located just one block from the property.

Located in a dense infi ll location, the property is surrounded by rooftops and approximately 218,000+ residents within a 5-mile radius. Th e property also benefi ts from the 97,000+ daily traffi c counts along 22nd Street and Kolb Road.

Investment Overview

• Brand New, 15-Year Extension, Absolute Triple-Net (NNN) Lease with Annual Increases

• Rare Hard Corner Location

• Personal Guarantee from Two-Unit Operator

• Established Location - Operating as a Chuy’s Since 1997

• Offering Includes Additional Income from Billboard Lease ($510 Annually)

• Dense Infill Location with 218,000+ Residents within a 5 Mile Radius

• High Daily Traffi c Counts of 97,000+

Investment Highlights


EX

EC

UT

IVE

SU

MM

AR

Y

PR

OP

ER

TY

DE

SC

RIP

TIO

N

FIN

AN

CIA

L

AN

ALY

SIS

MA

RK

ET

OV

ER

VIE

W



6

Williams-Sonoma

MAP

REGIONAL MAP


7

EX

EC

UT

IVE

SU

MM

AR

Y

PR

OP

ER

TY

DE

SC

RIP

TIO

N

FIN

AN

CIA

L

AN

ALY

SIS

MA

RK

ET

OV

ER

VIE

W



AERIAL PHOTO

PALO VERDE PALO VERDE HIGH SCHOOLHIGH SCHOOL

TUCSON BOWLTUCSON BOWL

PALO VERDE PALO VERDE PARKPARK

22ND STREET22ND STREET

KO

LB R

OA

DK

OLB

RO

AD

WILM

OT

RO

AD

WILM

OT

RO

AD


EX

EC

UT

IVE

SU

MM

AR

Y

PR

OP

ER

TY

DE

SC

RIP

TIO

N

FIN

AN

CIA

L

AN

ALY

SIS

MA

RK

ET

OV

ER

VIE

W



8

SITE PLAN - PALO VERDE PLAZA


9

EX

EC

UT

IVE

SU

MM

AR

Y

PR

OP

ER

TY

DE

SC

RIP

TIO

N

FIN

AN

CIA

L

AN

ALY

SIS

MA

RK

ET

OV

ER

VIE

W



analysisF I N A N C I A L A N A L Y S I S

EX

EC

UT

IVE

SU

MM

AR

Y

PR

OP

ER

TY

DE

SC

RIP

TIO

N

FIN

AN

CIA

L

AN

ALY

SIS

MA

RK

ET

OV

ER

VIE

W

11



FINANCIAL ANALYSISFINANCIAL ANALYSIS

FINANCIAL SUMMARY

Price $1,044,000

Down Payment 100% $1,044,000

Total Rentable Area 2,500 SF

Price per SF $417.60

Cap Rate 6.5%

Net Cash Flow 6.5% $67,838.67

Year Built 1982

Lot Size .49 Acres

Financial Summary

BASE RENT $67,328.76

Annual Billboard Income $510.00

Net Operating Income $67,838.67

Total Return 6.5% $67,838.67

LEASE SUMMARY

Lease Type Absolute Triple-Net (NNN) Lease

Tenant JBL Restaurant Investments, Inc. dba Chuy’s

Lease Guarantor Personal Guarantee

Original Lease Term 15 Years

Lease Commencement Date November 1, 2014

Lease Expiration Date October 31, 2029

Effective Lease Term Remaining 15 Years

Increases 2% Annual Increases Including the Option Periods

Options 2, 5 Year Renewal Options

*There is a billboard lease with Eller Media Company which generates $510 in annual income. The term of the lease is year-to-year and can be canceled at any time.

EX

EC

UT

IVE

SU

MM

AR

Y

PR

OP

ER

TY

DE

SC

RIP

TIO

N

FIN

AN

CIA

L

AN

ALY

SIS

MA

RK

ET

OV

ER

VIE

W



12

FINANCIAL ANALYSIS

Tenant Overview

The Chuy’s concept began in the 1970’s in Arizona and California. The moment customers walk into Chuy’s Mesquite Broiler, they know they are in for a good time. The atmosphere is purposely laid-back. Every inch of wall, ceiling and table space is covered with an eye-catching decoration. The ceiling is painted with a sea motif. Hanging from the ceiling are “schools” of rubber chickens wearing wacky shorts, mermaids with pink hair, oversized Tecate beer cans and at least two Corona beer bottle chandeliers.

Chuy’s cooks everything on a mesquite grill which is visible from the entrance. Mesquite grilled chicken is the specialty of Chuy’s, but they also serve tri-tip beef and seafood such as fish and shrimp.

JBL Restaurant Investments, Inc. is a two-unit operator of Chuy’s in Tucson. The Lease is personally guaranteed by the members of JBL, J. Brian Latta and Diane E. Latta.www.ChuysTucson.com

overviewM A R K E T O V E R V I E W

EXTERIOR PHOTO

MARKET OVERVIEW

15

EX

EC

UT

IVE

SU

MM

AR

Y

PR

OP

ER

TY

DE

SC

RIP

TIO

N

FIN

AN

CIA

L

AN

ALY

SIS

MA

RK

ET

N O

VE

RV

IEW



Tucson, AZTucson is the second largest metro area in Arizona, containing just over one million residents. Th e city of Tucson accounts for more than half of the population with 529,900 individuals. Population growth in the metro will average 1 percent annually through 2018, with outlying areas such as Marana projected to grow at a faster clip.

Tucson has invested in communication systems, utilities and infrastructure to attract new and expanding businesses. Th ese elements, along with rail and surface transport systems, serve as key drivers for the local economy. Union Pacifi c provides freight rail service, while passenger rail service is available on Amtrak.

Interstate 19, the primary international route south to Nogales, Mexico, attracts businesses to the Tucson area. Interstate 10 is a major cross-country route and also connects Tucson to Phoenix.

EconomyTucson has capitalized on its high-tech cluster program, spawning local technology jobs and high-tech companies. In the early 1990s, the Greater Tucson Economic Council targeted businesses in the areas of aerospace and defense, bioscience, solar and information technology. Working with the University of Arizona Science and Technology Park (UA Tech Park), the council has helped attract high-technology manufacturers to the county.

UA Tech Park sits on 1,345 acres in southeast Tucson. Almost 2 million square feet of space has already been developed, featuring high-tech offi ce, R&D and laboratory facilities. Th e Park is also home to the Arizona Center for Innovation, a technology business incubator, and two educational institutions — UA South, and Vail Academy and High School. Th e UA Tech Park contributes nearly $3 billion annually to Pima County’s economy and is one of the region’s largest employment centers.

Tucson is part of a federal empowerment zone program aimed to direct job creation in specifi c locations within the metro. By off ering incentives to companies forming or expanding in low-income areas, these zones seek to strengthen both the local economy and linkage to international trade. Located only 60 miles from the Mexican border, the area benefi ts from increased international trade by way of NAFTA.

Location Overview

Market HighlightsOutperforming national employment growth

Aff ordable labor, material and utility costs lure many businesses.

Low cost of living and doing business

Tucson’s land and home prices are well below West Coast metros.

Growing concentration of high-tech industries

High-tech companies are securing incentives to expand operations in the area.

Th e Tucson Metro Is:• 60 miles from Nogales• 115 miles from Phoenix• 318 miles from Albuquerque• 455 miles from Los Angeles

MARKET OVERVIEW

EX

EC

UT

IVE

SU

MM

AR

Y

PR

OP

ER

TY

DE

SC

RIP

TIO

N

FIN

AN

CIA

L

AN

ALY

SIS

MA

RK

ET

OV

ER

VIE

W



16

Demographic Summary

2013 Income 1-Mile 3-Miles 5-Miles

$200,000 or More 1.39% 1.34% 2.19%$150,000 - $199,999 1.09% 1.37% 2.19%$100,000 - $149,999 5.79% 7.31% 9.19%$75,000 - $99,999 9.31% 10.49% 11.25%$50,000 - $74,999 25.13% 21.04% 20.58%$35,000 - $49,999 18.47% 17.84% 16.24%$25,000 - $34,999 13.92% 13.90% 12.78%$15,000 - $24,999 12.83% 12.91% 12.09%$10,000 - $14,999 6.13% 6.29% 6.06%Under $9,999 5.94% 7.50% 7.44%2013 Est. Average Household Income $53,541 $53,957 $60,4842013 Est. Median Household Income $42,499 $42,033 $44,6772013 Est. Per Capita Income $21,779 $23,523 $26,425

Population 1-Mile 3-Miles 5-Miles

2018 Projection 15,272 119,818 220,6472013 Estimate 15,036 119,134 218,333Growth 2013 - 2018 1.57% 0.57% 1.06%2000 Census 15,504 118,801 217,267

2010 Census 14,911 116,654 214,237

Households 1-Mile 3-Miles 5-Miles

2016 Projections 6,199 52,300 96,4442013 Estimate 6,097 51,525 94,497Growth 2013 - 2018 1.68% 1.50% 2.06%2000 Census 6,331 50,716 91,7252010 Census 6,045 50,601 92,897

Daytime Population 1-Mile 3-Miles 5-Miles

2013 Estimate 4,246 46,139 100,252

exclusively listedExclusively listed by:

OFFICES NATIONWIDE

www.marcusmillichap.com

Jamie MedressSenior Vice President InvestmentsPHOENIX OFFICETel: (602) 687-6778Fax: (602) [email protected]

Mark RubleFirst Vice President InvestmentsPHOENIX OFFICETel: (602) 687-6766Fax: (602) [email protected]

Investment Sales:

Conﬁ dential Offering Memorandum Chuy’s Mesquite …€¦Freddy’s Frozen Custard Lakewood, CO...

Documents

Transcript of Conﬁ dential Offering Memorandum Chuy’s Mesquite …€¦Freddy’s Frozen Custard Lakewood, CO...