absolute nnn ground lease - images1.cityfeet.com

1 2 5 5 D E W A R D R I V E | R O C K S P R I N G S , W Y O M I N G 8 2 9 0 1

PRICE: $1,700,000.00 CAP RATE: 4.70%

1 2 0 4 4 N O R T H C A V E C R E E K R O A DP H O E N I X , A R I Z O N A | 8 5 0 2 0

ABSOLUTE NNN GROUND LEASEBRAND NEW CONSTRUCTION INVESTMENT OPPORTUNITY

CAVE CREEK ROAD VPD: ±30,021


CACTUS ROAD VPD: ±42,439


O F F E R I N G M E M O R A N D U M

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VPD: ±129,373VPD: ±129,373

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Take 5 | Phoenix, AZ 2

TIM WESTFALLManaging Director t 602-952-3822

[email protected]

AFFILIATED BUSINESS DISCLOSURE

Newmark Knight Frank (the “Agent”) has been engaged as the exclusive sales representative for the sale of 12044 North Cave Creek Road, Phoenix, Arizona 85020 (the ”Property”) by ‘Ownership’ (the “Seller”).

This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation (7/27/2021) of this Memorandum have remained the same. Analysis and verification of the information contained in this Memorandum are solely the responsibility of the prospective purchaser.

Additional information and an opportunity to inspect the Property will be made available upon written request of interested and qualified prospective purchasers. Seller and Agent each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property, and/or terminate discussions with any party at any time with or without notice. Seller reserves the right to change the timing and procedures for the Offering process at any time in Seller’s sole discretion. Seller shall have no legal commitment or obligations to any party reviewing this Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Seller, and a written agreement for the purchase of the Property has been fully executed and delivered by Seller and the Purchaser thereunder.

This Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not forward, photocopy or duplicate it, that you will not disclose this Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller or Agent, and that you will not use this Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Agent.

PREPARED BY

RYAN MORONEYDirector

t 602-952-3820 [email protected] 01 EXECUTIVE

SUMMARY

02 FINANCIAL & LEASE SUMMARY

03 TENANT PROFILE

04 AREA OVERVIEW

CON T E N T S2398 East Camelback Road, Suite 950 | Phoenix, AZ 85016 Phone: 602-952-3800 | Fax: 602-952-3801

Newmark Knight Frank

JACK MCANDREWAssociate

t 602-952-3821 [email protected]


01 EXECUTIVE SUMMARY

Representative Photo


THE OFFERING

Newmark Knight Frank (NKF), as exclusive advisor, is pleased to

present the opportunity to acquire a brand new Take 5 Oil Change

(the Property) absolute net ground lease offering, a 1,531 square-

foot quick service oil change facility located in Phoenix, Arizona

The freestanding building is located on a ±0.76 acre hard corner

parcel on one of Phoenix’s busiest intersections of Cave Creek

Road and Cactus/Thunderbird Roads, seeing over 73,000 vehicles

per day and located less than two miles east of State Route 51.

The Property, located in a dense retail trade area, with ±413,973 SF

GLA at the intersection, is surrounded by national brands like Home

Depot, AutoZone, Firestone, EoS Fitness, QuikTrip, Denny’s, Circle

K, Taco Bell and Quick Quack Car Wash.

BUILDING ADDRESS

12044 North Cave Creek RoadPhoenix, Arizona 85020

TENANT Take 5 Oil Change

YEAR BUILT 2021

TOTAL BUILDING AREA ±1,531

LAND AREA ±0.76 AC

TRAFFIC COUNTS

Cave Creek Road VPD: ±30,021Cactus/Thunderbird Roads VPD: ±42,439SR 51 @ Cactus Road VPD: ±129,373





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OFFERING HIGHLIGHTS


• Brand new construction – estimated opening in October 2021

• 15-year ground lease with four 5-year options to renew and attractive 10% increases every 5 years to strategically hedge against inflation

• Prime hard corner location on a heavily trafficked signalized intersection – Cave Creek & Thunderbird Roads sees over 73,000 vehicles per day at this corner

• Ideal lease structure – absolute NNN lease with ZERO landlord responsibilities offering the prospective investor a corporately guaranteed, passive deal for a minimum of 15 years

• Strong corporate guarantee from a proven market leader in the oil change category with 550+ current locations in 32 states and growing

• Take 5 Oil is backed by Driven Brands, the largest aftermarket automotive service operator in the United States with nearly 4,200 locations among 13 different brands

• Extremely dense North Phoenix location with a population of 105,000+ people within a 3-mile radius of the site

• Surrounded by a bevy of high traffic and synergistic retailers including Home Depot directly across the street, a brand new 50,000 SF EoS Fitness, Fry’s (Kroger), Safeway, At Home and Goodwill to name a few

• Record-Breaking 2020 Financial Performance – system-wide sales for Driven Brands Holdings, Inc., the parent company for Take 5, in 2020 exceeded $935M – an increase of nearly 25% versus the prior year. The fourth quarter saw a 58% increase in revenue over the prior year while full-year revenue saw a 51% increase versus the prior year.






R

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VPD: ±129,373VPD: ±129,373

780 Students




CACTUS ROAD VPD: ±42,439CACTUS ROAD VPD: ±42,439

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02 FINANCIAL & LEASE SUMMARY



PRICE $1,700,000.00

CAP RATE 4.70%

NOI / ANNUALLY $80,000.00

FINANCIAL SUMMARY

LEASE & FINANCIAL SUMMARY

LEASE SUMMARY

TENANT Take 5 Oil Change

LEASE GUARANTOR Driven Systems, LLC

LEASE TYPE Absolute NNN (Ground Lease)

NOI / ANNUALLY $80,000.00

TENANT RESPONSIBILITY

Tenant shall keep and maintain the Premises and Premises’ Improvements, including maintenance of interior and exterior building, all maintenance/repair of HVAC, plumbing and electrical systems.

LANDLORD RESPONSIBILITY None

RENT COMMENCEMENT October 23, 2021 (estimated)

ORIGINAL LEASE TERM 15 Years

REMAINING TERM 15 Years

RENEWAL OPTIONS Four 5-Year Options

RENTAL INCREASES 10% Every 5 Years

RIGHT OF FIRST REFUSAL None

RENTSCHEDULE

MONTHLYRENT

YEARLY RENT

Years 1 - 5 $6,666.67 $80,000.00

Years 6 - 10 $7,333.33 $88,000.00

Years 11 - 15 $8,066.67 $96,800.00

OPTION PERIODS:

Years 16 - 20 $8,873.33 $106,480.00

Years 21 - 25 $9,760.67 $117,128.00

Years 26 - 30 $10,736.73 $128,840.80

Years 31 - 35 $11,810.41 $141,724.88

LOAN TO VALUE 65%

RATE 3.90%

TERM 5-10 Years

AMORTIZATION 25 Years

PROPOSED FINANCING TERMS


03 TENANT PROFILE



Take 5 Oil Change is an American franchisor

and operator of motor vehicle repair and

maintenance centers based in Metairie,

Louisiana. Founded in 1984 as a traditional

oil change shop, Take 5 Oil Change began to

grow after 1996 when they implemented the

stay-in-your-car model.

By the end of 2020, the company has

expanded into 566 locations located across

the United States. Spanning the country from

locations coast to coast across 21 states, Take

5 Oil Change offers a comfortable and quick

experience by knowledgeable technicians.

TENANT TRADE NAME Take 5

OWNERSHIP Corporate

LEASE GUARANTOR Driven Systems, LLC

LEASE TERM 15 Years

LOCATIONS 556

www.take5oilchange.com


Take 5 Oil Change is (or should be) your

neighborhood go-to oil change spot. We’ve

been doing this for over 35 years now, and

grown our drive-thru style (no fries served

though) to half the country. We keep it friendly

by letting you stay in the comfort of your car or

truck while we change your oil. We’ve all heard

from our dads that oil changes are important

and at Take 5, we agree. We also know they

aren’t the most fun. Here at Take 5 Oil Change

we try to make them the most enjoyable

(and the quickest) as they can be. We pride

ourselves in our friendly technicians, our oil

change expertise and our efficient process that

gets you on your way safely and swiftly.

FRANCHISE HISTORY

OPERATIONAL MOTTO


04 AREA OVERVIEW


P H O E N I X O V E RV I E W

1-MILE RADIUS

DEMOGRAPHIC SNAPSHOT

2020 POPULATION

10,554HOUSEHOLDS

4,695AVG HH INCOME

$97,016MEDIAN AGE

45.1

2020 POPULATION

105,639HOUSEHOLDS

43,596AVG HH INCOME

$91,753MEDIAN AGE

41.6

3-MILE RADIUS

2020 POPULATION HOUSEHOLDS AVG HH INCOME MEDIAN AGE

327,937 136,598 $90,099 39.6

5-MILE RADIUS

E C O N O M I C S

Companies in Greater Phoenix benefit from low business costs, minimal regulation and an advantageous operating environment. The state offers no corporate franchise tax and is constitutionally recognized as a right-to-work state. From aggressive tax credits and incentives to programs designed to increase access to capital, the region boasts as among the top cities for operations while offers direct access to Arizona’s robust, pro-business climate.

Phoenix is the vibrant center of one of the fastest growing job markets and economies in the United States. The 5th largest city in the country, Phoenix is emerging in the new economy with strengths in high technology, manufacturing, bioscience research and advanced business services.

Greater Phoenix offers a pro-business climate with the infrastructure necessary to support your business operations. The region is known for its accessibility, vibrant workforce, and exceptional quality of life as well as being one of the best cities for various industries and operations. Companies from around the world take advantage of all that Greater Phoenix has to offer.

With a population of over 1.6 million, Phoenix is Arizona’s center of government, commerce and culture. Phoenix Sky Harbor Airport is the 13th-busiest airport in the country.

PHOENIX TOP TEN EMPLOYERS

CompanyNumber ofEmployees

Industry

Banner Health 10,754 Health Care

American Express 6,602 Financial

Honeywell 6,067Aerospace/

High Tech Manufacturing

Amazon 5,607 Retail

Fry's Food Store 5,358 Retail

Dignity Health 5,284 Health Care

Chase 5,274 Business Svcs

Bank of America 5,027 Business Svcs

U Haul 4,954 Business Svcs

Phoenix Children's Hospital

4,826 Health Care

RYAN MORONEYDirector

t [email protected]

TIM WESTFALLManaging Directort 602-952-3822

[email protected]

PREPARED BY

Newmark Knight Frank (the “Agent”) has been engaged as the exclusive sales representative for the sale of 12044 North Cave Creek Road, Phoenix, Arizona 85020 (the ”Property”) by Avalon Cave Creek, LLC (the “Seller”). The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.

This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation (7/27/2021) of this Memorandum have remained the same. Analysis and verification of the information contained in this Memorandum are solely the responsibility of the prospective purchaser.

Additional information and an opportunity to inspect the Property will be made available upon written request of interested and qualified prospective purchasers. Seller and Agent each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property, and/or terminate discussions with any party at any time with or without notice. Seller reserves the right to change the timing and procedures for the Offering process at any time in Seller’s sole discretion. Seller shall have no legal commitment or obligations to any party reviewing this Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Seller, and a written agreement for the purchase of the Property has been fully executed and delivered by Seller and the Purchaser thereunder.

This Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not forward, photocopy or duplicate it, that you will not disclose this Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller or Agent, and that you will not use this Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Agent.

JACK MCANDREWAssociate

t [email protected]

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