bk-75th & glendale - om€¦ · this burger king franchisee currently has over 37 stores under...

Offering Memorandum

Burger King Absolute NNN LeaseGlendale, AZ

TABLE OF CONTENTS

Burger King Absolute NNN Lease7490 W. Glendale Ave, Glendale, AZ 85303

THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. 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.

Absolute NNN Lease

• Pricing and Financial Analysis• Franchisee History• Property Description• Aerials• Site Plans• Property Photos• Map• Demographic Information• Net Leased Disclaimer & Confidentiality


FINANCIAL SUMMARY


Price $3,000,000

Down Payment 100% / $3,000,000

Rentable Square Feet 3,935

CAP Rate 5.00

Year Built 1998

Type of Ownership Fee Simple

Annualized Operating Data

Rent Increases Annual Rent Monthly Rent

Base Rent Years 1-5 ($39.12 PSF) $150,000 $12,500

Owner Expenses: NONE

Net Operating Income $150,000

Capital Reserves $0

Total Return 5.00% / $150,000

Tenant Summary

Tenant Trade Name Burger King

Ownership Private

Tenant Barnett Krispin II, LLC; a Franchisee formed LLC (Largest Franchisee in Arizona); 3 Stores operating under Tenant Entity

Lease Guarantor Personal Guaranty

Lease Term 15+ (to coincide with expiration of the current 20-Year Franchise Agreement)

Lease Commencement Date 01/01/2018

Lease Expiration Date 12/31/2033

Increases 8% Increases Every 5 Years

Options Four, 5-Year Options with 5% Increases Every 5 Years

Property Building sits on +/- 1.98 Acre parcel; $550,000 Remodel Completed September, 2013

Offering Terms: Purchase Price - $3,000,000 NOI - $150,000 CAP Rate – 5.00%



This Burger King franchisee currently has over 37 stores under the operating entity Barnett Management Company (“BMC”) --Tom Barnett, Shelley Krispin, Shane Jacobs (principals). BMC was named the Burger King Franchisee of the Year in 2014 by Burger King Corporate, and continues to be recognized for its exemplary operations. BMC operates all of its stores in the State of Arizona, making them the largest franchisee in the state. In addition to its operating locations,BMC has 10+ new restuarants planned over the next 18 months, all in various stages of the development process.

Tom Barnett is a graduate of the Air Force Academy, received his MBA from UCLA and served as a fighter pilot in Vietnam. He is married to Georgia, and they have 2 children. Tom opened his first Burger King restaurant in 1980 and has never looked back. Tom is proud to be part of the Burger King system. Tom and his partners were responsible for the development and growth of the twenty-four Good Egg and Eggery Restaurants in Arizona until that concept was sold to First Watch in 2014. Tom surrounds himself with great people in order to run operationally superior restaurants profitably. Tom enjoys traveling with his family, piloting his own airplane, and snow skiing.

Shelley Krispin joined the organization in 1984 and became a partner in 1991. She oversees Operations, Development, and Finance. Shelley serves on Burger King Corporation’s Marketing Council. Her past service includes Burger King Corporation’s Excellence Council, President of the Southwest Franchise Association, and a Board Member of the National Franchise Association. Shelley earned a B.S. in Accounting and an M.B.A. from Arizona State University. She enjoys the families of her 6 children (including 17 grandkids!) as well as reading, walking, and birding.

Shane Jacobs oversees the daily operations of Barnett Management’s 37 Burger King restaurants in Arizona. He began his Burger King career as a 16 year old, working in the kitchen. Shane serves on the Restaurant Council, a national Burger King Corporation committee of 17 franchisees that collaborate with BKC in operational decisions. Shane is married with five children.

FRANCHISEE HISTORY

PROPERTY DESCRIPTION


+/- 3,935 SF Burger King restaurant operating at an established retail intersection in Glendale, Arizona.

Surrounded by dense residential neighborhoods

Multiple national and regional retailers at this grocery anchored shopping center in the West Valley (Anchored by Wal-Mart Neighborhood Market)

+23,000 vehicles per day on Glendale Ave

+14,000 vehicles per day on 75th Avenue



Intersection Aerial



Aerial Photo


75th Avenue – 14,000 VPD


Site Plan



Shopping Center Plan


North


PROPERTY PHOTO



INTERIOR PROPERTY PHOTOS


2850 E Camelback Rd, Ste 180 Phoenix, AZ 85016 www.fronteradevelopment.com


DEMOGRAPHICS


NET LEASED DISCLAIMER Frontera Development, LLC hereby advises all prospective purchasers of NetLeased property as follows:

The information contained in this brochure has been obtained from sources wedeem to be reliable. However, Frontera Development has not and will not verifyany of this information, nor has Frontera Development conducted anyinvestigation regarding this information. Frontera Development makes noguarantee, warranty, or representation whatsoever about the accuracy orcompleteness of any of the information provided.

As the Purchaser of a Net Leased property, is the Purchaser's responsibility toindependently confirm the accuracy and completeness of all materialinformation before completing any purchase. This brochure is not a substitutefor your thorough due-diligence investigation of this investment opportunity.Frontera Development expressly denies any obligation to conduct a due-diligence examination of this property for Purchaser.

Any projections, opinions, assumptions, or estimates used in this brochure arefor example only and do not represent the current or future performance of thisproperty. The value of a Net Leased property to you depends upon factors thatshould be evaluated by you and your tax, financial, and legal advisors.

Purchaser and Purchaser's tax, financial, legal, and construction advisorsshould conduct a careful, independent investigation of any net-leased propertyto determine the suitability of the property for its needs.

As with all real-estate investments, this investment carries significant risks.Purchaser and Purchaser's legal and financial advisors must request andcarefully review all legal and financial documents related to the property andtenant. While the tenant's past performance at this or other locations is animportant consideration, it is not a guarantee of future success. Similarly, thelease rate for some properties, including newly constructed facilities or newlyacquired locations, may be set based on a tenant's projected sales with little orno record of actual performance or comparable rents for the area. Returns arenot guaranteed; the tenant and any guarantors may fail to pay the lease rent orproperty taxes, or may fail to comply with other material terms of the lease; cashflow may be interrupted in part or in whole due to market, economic,environmental, or other conditions. Regardless of tenant's history and leaseguarantees, Purchaser is responsible for conducting its own investigation of allmatters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant should thecurrent tenant default or abandon the property, the lease terms that Purchasemay be able to negotiate with a potential replacement tenant considering thelocation of the property, and the Purchaser's legal ability to make alternate useof the property.

By accepting this brochure, you agree to release Frontera Development and holdit harmless from any claim, cost, expense, or liability arising out of yourinvestigation and/or purchase of this net-leased property.

CONFIDENTIALITYThe information contained in the following brochure is proprietary andconfidential. It is intended to be reviewed only by the party receiving it fromFrontera Development, LLC and should not be made available to any otherperson or entity without the written consent of Frontera Development, LLC Thisbrochure has been prepared to provide summary, unverified information toprospective purchasers and to establish only a preliminary level of interest inthe subject property. The information contained herein is not a substitute for athorough due-diligence investigation. Frontera Development, LLC has not madeany investigation and makes no warranty or representation with respect to theincome or expenses for the subject property, the future projected financialperformance of the property, the size and square footage of the property andimprovements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physicalcondition of the improvements thereon, or the financial condition or businessprospects of any tenant or any tenant's plans or intentions to continue itsoccupancy of the subject property. The information contained in this brochurehas been obtained from sources we deem to be reliable; however, FronteraDevelopment, LLC has not verified and will not verify any of the informationcontained herein, nor has Frontera Development, LLC conducted anyinvestigation regarding these matters and makes no warranty or representationwhatsoever regarding the accuracy or completeness of the informationprovided. All potential buyers must take appropriate means to verify all of theinformation set forth herein.

NON-ENDORSEMENT NOTICE

Frontera Development, LLC (“Frontera”) is not affiliated with, sponsored by, orendorsed by any commercial tenant or lessee identified in this brochure. Thepresence of any corporation's logo or name is not intended to indicate or implyaffiliation with or sponsorship or endorsement by said corporation of Frontera,its affiliates, or subsidiaries, or any agent, product, service, or commerciallisting of Frontera, and is solely included for the purpose of providing tenantlessee information about this listing to prospective customers.

ALL SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT LISTINGAGENT FOR MORE INFORMATION


OFFERING MEMORANDUM


Exclusively listed by:

Steve LenzPartner, Frontera Development, LLC480-315-9612 (Direct)480-315-9607 (Fax)[email protected]

Mark HolingerPartner, Frontera Development, LLC480-315-9623 (Direct)480-315-9607 (Fax)[email protected]

Jay R. SchneiderBroker480-315-9600

bk-75th & glendale - om€¦ · this burger king franchisee currently has over 37 stores under...

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