Freddy’s Frozen Custard...educated workforce and a base of companies that serve as a magnet for...

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

THE LEARNING EXPERIENCE14815 W 64TH AVENUEARVADA, CO 80007

Offering Memorandum

CONSTRUCTION PHOTOAS OF 12/1/2018

AERIAL PHOTO THE LEARNING EXPERIENCE

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 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 Z0070616


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WESTOWN CONDOS180+ UNITS

Walgreens

W 6 4 T H A V E24,600 CPD

MCDONALD’S


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THE LEARNING EXPERIENCE



DOWNTOWNDENVER

MCDONALD’S

W 6 4 T H A V E24,600 CPD

I N D I A N A S T23,370 CPD





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58

COLORADO MILLS

6,100 STUDENTS

OLDE TOWNARVADA

MCDONALD’S


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THE LEARNING EXPERIENCE14815 W 64th AvenueArvada, CO 80007

FINANCIAL SUMMARY

Price $3,785,700

Down Payment 100% $3,785,700

Cap Rate 7.0%

Est. Building SF +/- 10,000 SF

Est. Playground SF 5,000 SF

Net Cash Flow 7.0% $265,000

Year Built / Renovated 2018

Lot Size .86 Acres

LEASE SUMMARY

Lease Type Double-Net (NN) Lease (1)

Tenant TLE at Arvada, LLC

Lease Guarantor (2) The Learning Experience Corp.

Roof & Structure Landlord Responsible

Est. Rent Commencement Date March 2019

Est. Lease Expiration Date March 2035

Lease Term 16 Years

Rental Increases 10% Every 5 Years

Renewal Options 2, 5 Year Options

First Right of Refusal 10 Days

BASE RENT $265,000

Net Operating Income $265,000

Total Return 7.0% $265,000

EXECUTIVE SUMMARY

ANNUALIZED OPERATING DATA

LEASE YEARS ANNUAL RENT CAP RATE

1 - 5 $265,000.00 7.00%

6 - 10 $291,500.00 7.70%

11 - 16 $320,650.00 8.47%

OPTIONS ANNUAL RENT CAP RATE

Option 1 $352,715.00 9.32%

Option 2 $387,986.50 10.25%

(1) 20 Year Roof Warranty

(2) Guarantor is The Learning Experience Corp. and the guaranty of rent shall be limited to a maximum liability amount of $500,000 in the aggregate and this maximum amount shall be reduced by $100,000 on each anniversary of the Effective Date, until such time as said amount has been reduced to Zero, at which time this Guaranty of Rent shall become null, void, and of no further force or effect.




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TENANT OVERVIEW

The Learning Experience was founded more than thirty years ago with a single location in Boca Raton, FL, by the Weissman family. The unique and proprietary programs that the Weissmans developed quickly caught on and expansion soon followed.

The foundation of The Learning Experience® was built on three key educational and care principles: cognitive, physical, and social develop-ment.

The Learning Experience is an industry leader and one of the nation’s fastest growing early education and child care franchises, with a proven track record of success for both students and center franchisees. More than 95% of pre-school graduates read before kindergarten, and more than 70% of center franchisees buy additional units or refer new fran-chisees to the company. As a testament to the opportunities TLE pro-vides, many parents with enrolled children also become franchisees. There are more than 200 The Learning Experience locations open or under development across the country.

Headquarters Deerfield Beach, Florida

Company Type Private

Locations 211

2017 Revenue $57.99 Million

Website www.thelearningexperience.com


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LOCATION OVERVIEWINVESTMENT HIGHLIGHTS

Encompassing nearly 40 square miles and located just 10 miles from downtown Denver, Arvada is one of Colorado’s most affluent cities. Arvada sets itself apart from other cities with its thriving business and commerce environment coupled with its small-town charm. Residents and businesses have easy access to world-class research institutions including the University of Colorado and Colorado School of Mines; in addition, the Arvada campus of Red Rocks Community College provides training assistance to meet employer needs. The city is home to the Arvada Center, the Apex Center, and a historic shopping district, Olde Town. A highly educated workforce, low crime rate and excellent quality of life have contributed to the popularity of Colorado’s 8th-largest city.

Denver, the capital of Colorado, is an American metropolis dating back to the Old West era. Nicknamed the Mile High City, Denver’s elevation is exactly one mile above sea level, making it the highest major city in the United States. It is the 19th most populous U.S. city, and has experienced rapid growth.

Denver’s economy is expanding, with the annual change in the metro’s gross metropolitan product (GMP) expected to reach 3.8 percent this year. Retail sales rose an estimated 4.4 percent last year, above the national average growth. The area benefits from its position as a regional business and government hub. The state capitol is located in Denver, and the metro is home to nine Fortune 500 firms.

Key drivers of the region’s economy include aerospace, bioscience, energy, financial services, healthcare, aviation, information technology and software development, and telecommunications. There are more than 400 aerospace companies and suppliers in the metro. Defense-related manufacturers such as Lockheed Martin and Raytheon also have significant operations in the metro. Supporting these sectors is a highly educated workforce and a base of companies that serve as a magnet for startups, as Denver is often recognized as fertile ground for entrepreneurs.

• Brand New 16-Year Corporate Lease – 2019 Construction

• Ten Percent Rental Increases Every Five Years

• 20 Year Roof Warranty

• Affluent Trade Area – Average Household Income Exceeds $137K in 1-Mile Radius

• Across from King Soopers and Kohl’s-Anchored Center

• 140,254 Residents in Growing Arvada Trade Area – Denver MSA

• Visible to 48,000+ Cars per Day from Indiana Street and W 64th Avenue

• The Learning Experience is Projected to Grow by 35 Centers Annually

• Adjacent to 180+ Luxury Condo Units

• Minutes to Colorado School of Mines (6,100+ Enrolled)

• 25 Minutes to Downtown Denver

PROPERTY DESCRIPTION

Income 1-Mile 3-Miles 5-Miles

2017 Est. Average Household Income $137,994 $122,883 $100,878

2017 Est. Median Household Income $105,650 $93,092 $76,513

2017 Est. Per Capita Income $51,878 $46,080 $41,549

Population 1-Mile 3-Miles 5-Miles

2022 Projection 8,888 62,576 144,880

2017 Estimate 8,290 58,752 140,254

Growth 2017 - 2022 7.22% 6.51% 3.30%

Households 1-Mile 3-Miles 5-Miles

2022 Projections 3,408 23,728 60,264

2017 Estimate 3,111 21,999 57,569

Growth 2017 - 2022 9.53% 7.86% 4.68%

DEMOGRAPHICS

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CONSTRUCTION PHOTOSAS OF 12/1/2018

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N

SITE PLAN

REVISIONS

ByByBy

DescriptionDescriptionDescriptionDate

DateDate

SHEETSNO. OFSHEET NO.PROJECT NO.TITLEST

PM

PLS

Field Date

Scale

Party Chief

PLS Group6843 North Franklin Avenue, Loveland, Colorado 80538

Phone: 970.669.2100 Fax: 970.669.3652

CLIENT

P:\Project\2016\16088\dwg\16088.dwg June 14, 2017 - 2:25pm

NOTICE: According to Colorado law you must commence any legalaction based upon any defect in this survey within three years after youfirst discover such defect. In no event, may any action based upon anydefect in this survey be commenced more than ten years from the dateof the certification shown hereon.

1116088.001Section 1, Township 3 South, Range 70 West, 6th P .M., Jefferson County, Colorado

ALTA/NSPS Land Title Survey

Indiana MarketPlace Minor, Lot 4n/a

MTS

MBS

08.19.2016

1"= 30'

ADS/MTS Doud BTS

NOTES:

This survey is based on a title commitment provided by FIDELITY NATIONAL TITLE COMPANYOrder No. 508-F0559317-017-017, Effective Date: August 16, 2016 at 7:00 AM.

SCHEDULE B - SECTION 2 EXCEPTIONS:

Item# Bk & Pg or Reception # Comments

1. Any facts, rights, interests or claims that are not shown by the Public Records but which could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.2. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.3. Any encroachments, encumbrances, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by Public Records.4. Any lien or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records.5. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the Public Records or attaching subsequent to the effective date hereof but prior to the date the proposed Insured acquires of record for the value the estate or interest or mortgage thereon covered by this Commitment.6. All taxes and assessments, now or heretofore assessed, due or payable NOTE: This tax exception will be amended at policy upon satisfaction and evidence of payment of taxes. 1. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document:

Granted to: Arapahoe Ditch CompanyPurpose: ditchesRecording Date: May 18, 1878Recording No: Book 9 at Page 159 (applies - not plottable)

7. Any tax, lien, fee, or assessment by reason of inclusion of the Land in the North Jeffco Metropolitan Recreation District, as evidenced by instrument(s) recorded November 13, 1956 at Book 1029 at Page 504.(applies-not plottable)8. Terms, conditions, provisions, agreements and obligations contained in the Annexation and Development Agreement as set forth below:

Recording Date: October 13, 1976Recording No.: Book 2914 at Page 791 (applies-not plottable)

9. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document:Granted to: the City of ArvadaPurpose: bicycle and pedestrian uses and equestrian usesRecording Date: June 2, 1977Recording No: Book 3012 at Page 496Affects Lot 4 (applies-shown hereon)

10. Terms, conditions, provisions, agreements and obligations contained in the Subdivider’s Agreement as set forth below:

Recording Date: June 2, 1977Recording No.: Book 3012 at Page 491 (applies-shown hereon)

11. Any tax, lien, fee, or assessment by reason of inclusion of the Land in the Indiana Marketplace Business Improvement District, as evidenced by instrument(s) recorded April 17, 2008 at Reception No.2008036880. (applies-shown hereon)12. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document:

Granted to: Sundyne CorporationPurpose: pedestrian and vehicular ingress and egressRecording Date: April 4, 2007Recording No: Reception No. 2007037906 (applies-shown hereon)

13. Terms, conditions, provisions, agreements and obligations contained in the Annexation Agreement for Indiana Marketplace as set forth below:

Recording Date: August 11, 2005Recording No.: Reception No. 2005064463 (applies-not plotted)

14. Subject to the Covenant Not to Compete in favor of McDonald’s USA, LLC recorded November 16, 2006 at Reception No. 2006136836. (applies-not plottable)15. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document:

Granted to: Public Service Company of ColoradoPurpose: public utilitiesRecording Date: August 14, 2007Recording No: Reception No. 2007094379The exact location not being disclosed in the document.(applies-not plottable)

16. Subject to the Blanket Utility Easements statement, Note numbered 3 and the 28 foot and 31 foot emergency access, drainage and utility easement, the fire hydrant easements, and the 27 foot emergency access easements, all as shown on the plat for Indiana Marketplace Minor Subdivision recorded September 13, 2007 at Reception No. 2007106168. (applies-shown hereon)17. Terms, conditions, provisions, agreements and obligations contained in the Development Agreement for Indiana Marketplace as set forth below:

Recording Date: September 20, 2007Recording No.: Reception No. 2007108497(applies-not plottable)

18. Terms, conditions, provisions, agreements and obligations contained in the Declaration of Restrictions and Easements as set forth below:

Recording Date: October 22, 2007Recording No.: Reception No. 2007119345 (applies-not plottable)

19. Terms, conditions, provisions, agreements and obligations contained in the Memorandum of Lease from Marketplace Investment Co., L.P., as Landlord, to Pacific Dental Services, Inc., as Tenant as set forth below:

Recording Date: December 11, 2008Recording No.: Reception No. 2008111545 (applies-not plottable)

20. Any existing leases or tenancies, and any and all parties claiming by, through or under said lessees.

A. No improvements, other than those shown on this survey, were located at this time.

B. No wetlands determinations were made this date.

C. All utilities are shown using surface evidence only.

D. Bearings are based on of the East Line of the Southeast 1/4 Section 1, Township 3 South, Range 70 West of the 6th P.M. as an assumed bearing N 00°03'01" W being monumented as shown hereon.

E. Distances shown are in U.S. Survey Feet.

F. The Lot 4 contains 0.619 acres and Tract A contains 0.244 acres for a total area of 0.863 acres (37,592 sq. ft.), more or less.

G. Property Address: Corner of 64th and Indiana, Arvada CO (not observed) per title commitment.

H. No recent evidence of earth moving work, building construction, or building additions

I. South Line Subdivider's Agreement Sundstrand Fluid Handling Complex Book 3012, Pages 491-494

J. Parcel Two does not seem to be a real property and therefore was not able to be shown.

K. Elevations based on NAVD88 Datum using GPS observations and Geoid 12B.

L. Conversion: NAVD88 - 2.21 feet = City of Arvada Datum Based on City of Arvada BM 261.

To FIDELITY NATIONAL TITLE COMPANY AND BIG BLACK DOG, LLC A WYOMING limitedliability company.:

This is to certify that this map or plat and the survey on which it is based were made inaccordance with the 2016 Minimum Standard Detail Requirements for ALTA/NSPS Land TitleSurveys, jointly established and adopted by ALTA and NSPS, and includes Items 1, 2, 3, 4, 5,7a, 8, 9, 11 and 16 of Table A thereof. The field work was completed on July 27, 2016.

Date of Plat or Map: August 26, 2016

LEGAL DESCRIPTION:

Parcel One:

Lot 4 and Tract A, Indiana Marketplace Minor Subdivision, as per the plat thereof recordedSeptember 13, 2007 at Reception No. 2007106168, County of Jefferson, State of Colorado

Parcel Two: (see note J below)

Non-exclusive easement for ingress, egress and parking, as more particularly described in the Declaration ofRestrictions and Easements recorded October 22, 2007 at Reception No. 2007119345, County of Jefferson,State of Colorado.

Vicinity Mapscale 1" = 2000'

6.13.2017 mbs added verical datum equation

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Williams-Sonoma

7 MILESColorado School

of Mines

16 MILESDowntown

Denver

34 MILESDenver

International Airport

8 MILESColorado Mills(135+ Stores)

The information contained in the following offering memorandum is proprietary and strictly confidential. 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 confidence. 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, unverified financial 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 financial 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 financial 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 verified, 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.

Confidentiality Agreement

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these mat-ters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial docu-ments related to the property and tenant. While the tenant’s past performance at this or oth-er locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services as well as the Property Owner and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase

Net Leased Disclaimer

exclusively listedExclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

BOB KAPLANBROKER OF RECORDTel: (303) 328-2000Fax: (303) 328-2010License: ER100052334

Freddy’s Frozen Custard...educated workforce and a base of companies that serve as a magnet for...

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