offering memorandum max’s fuel & foodthe sale of 1201 east missouri avenue, phoenix, arizona...
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MAX’S FUEL & FOOD GAS STATION & C-STORE
1 2 0 1 E A S T M I S S O U R I A V E N U E | P H O E N I X | 8 5 0 1 4
±2,546 SF SINGLE TENANT NET LEASED INVESTMENT PRICE: $2,000,000.00 CAP RATE: 5.25%
O F F E R I N G M E M O R A N D U M
TIM WESTFALLManaging Director
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 1201 East Missouri Avenue, Phoenix, Arizona 85014 (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 (10/1/19) 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.
DAVID GUIDOManaging Director
602 952 3875 | [email protected]
PREPARED BY
2398 East Camelback Road, Suite 950Phoenix, AZ 85016
RYAN MORONEYAssociate Director
602 952 3820 | [email protected]
01 EXECUTIVE SUMMARY
02 FINANCIAL & LEASE SUMMARY
03 TENANT PROFILE
04 AREA OVERVIEW
CONTENTS
01 EXECUTIVE SUMMARY
THE OFFERING
Newmark Knight Frank (NKF), as exclusive advisor, is pleased
to present the opportunity to acquire the Max’s Fuel & Food (the
Property) on a long-term absolute NNN lease, a 2,546-square-foot
gas station and convenience store (c-store) in Phoenix, Arizona.
This single-story building is located on ±0.366 net acres in the
Uptown submarket, which boasts strong income in the area ($80K+
within 3 miles) with heavy traffic (20K+ VPD).
PROPERTY NAME Max’s Fuel & Food
BUILDING ADDRESS 1201 East Missouri Avenue | Phoenix | 85014
TENANT Max’s Food & Fuel
YEAR BUILT 1987
TOTAL BUILDING AREA 2,546
LAND AREA 0.366 net acres
TRAFFIC COUNTS
North/South: ±12,015 VPDEast/West: ±20,401 VPD
1111 MISSOURIAPARTMENTS
VIRGINIA G PIPERCHARITABLE TRUST
AVENDIA HERMOSA
APARTMENTS
DOWNTOWNPHOENIX
EAST MISSOURI AVENUE: ±
20 ,401 VPD
NORTH 12TH STREET: ±12 ,015 VPD
WITHIN A DENSE, INFILL PHOENIX
TRADE AREA
OFFERING HIGHLIGHTS
ON THE HARD CORNER OF A SIGNALIZED
INTERSECTION
LOW RENT PSF COMPARED TO COMPETING USERS IN THIS CATEGORY
19.1 YEARS REMAINING ON AN ORIGINAL 20-YEAR TERM W/ TWO (2) TEN-YEAR OPTIONS
2% INCREASES EVERY YEAR THROUGHOUT THE INITIAL TERM
OF THE LEASE
TENANT/OPERATOR HAS REPORTED
STRONG UNIT LEVEL SALES
EAST MISSOURI AVENUE: ±
20 ,401 VPD
NORTH 12TH STREET: ±12 ,015 VPD
AVENDIA HERMOSAAPARTMENTS
THE MADISON
VIRGINIA G PIPERCHARITABLE TRUST
1111 MISSOURIAPARTMENTS
124,847 VPD
02 FINANCIAL & LEASE SUMMARY
LEASE SUMMARY
PRICE $2,000,000.00
CAP RATE 5.25%
NOI / ANNUALLY $105,000.00 (as of October 2019)
FINANCING Free & Clear
FINANCIAL SUMMARY
FINANCIAL & LEASE SUMMARY
TENANT Max’s Fuel & Food
LEASE GUARANTOR Sal Markets, LLC (4-Unit Entity & Personal Guarantee)
LEASE TYPE Absolute NNN Lease
NOI / ANNUALLY $105,000.00 (as of October 2019)
RENT PER SF $41.24
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
LEASE COMMENCEMENT 11/30/2018
LEASE EXPIRATION 11/30/2038
ORIGINAL LEASE TERM 20 Years
REMAINING TERM 19.1 Years
LEASE OPTIONS Two 10-Year Options to Renew
RENTAL INCREASES 2% Annually
The absolute NNN lease has 19.1 years remaining on its original 20-year term. There are two 10-year options with increases. This offering provides the rare opportunity for a potential investor to see two percent (2%) annual increases throughout the original lease term.
03 TENANT PROFILE
LEASE EXPIRATION 2038
SF LEASED 100%
70+ COUNTRIES
$113M VOLUNTARY INVESTMENTS
OIL REFINERIES
3.7M NET OIL BARRELS/DAY
In 2018, Shell produced 3.7M net oil-equivalent barrels per day from operations around
the world
Shell is a global group of energy and
petrochemical companies with an average of
86,000 employees in more than 70 countries
which uses advanced technologies and takes an
innovative approach to help build a sustainable
energy future.
Royal Dutch Shell was formed in 1907, although
its history can be traced back to the first half of
the 19th century.
Headquarters are in The Hague, the Netherlands,
and Chief Executive Officer is Ben van Beurden.
The parent company of the Shell group is Royal
Dutch Shell plc, which is incorporated in England
and Wales.
Shell’s strategy is to strengthen its position as a
leading energy company by providing oil and gas
and low-carbon energy as the world’s energy
system changes. Safety and social responsibility
are fundamental to the business approach.
Shell oil operates in over 70 countries
$47 million was spent on local programmes for community development, disaster relief, education, road safety, health and biodiversity. $66 million was in line with our global themes – access to energy, community skills, enterprise development and science, technology, engineering and maths (STEM) education.
Shell has interests in 21 oil refineries around the world
EAST MISSOURI AVENUE: ±20 ,401 VPD
NORTH 12TH STREET: ±12 ,015 VPD
VIRGINIA G PIPERCHARITABLE TRUST
04 AREA OVERVIEW
UPTOWN PHOENIX
Max’s Fuel & Food is located in the well-established infill submarket of Uptown Phoenix.
Uptown Phoenix has become an important district connecting the north end of the city hub. The Uptown district has about 2.6 million square feet of
existing office space in close proximity to downtown, with approximately 400,000 square feet of Class A space.
Uptown Phoenix centers at the light rail-fueled resurgence around Central Avenue and Camelback Road, where eateries, shopping, office space and
residential areas are once again at a premium.
The Uptown district employs approximately 7,000 employees with a median age of 38.9. The most employed occupations are Clerical & Admin,
Healthcare & Education, Service, and Management. 73% of the estimated population in Uptown have Some College education or above.
Projected growth for this area will result in close to 500 new residents (about 3.7% increase) just around the light rail stations by 2020, providing a
continually expanding labor pool.
5-MILE DEMOS
415,013POPULATION
165,942HOUSEHOLDS
35.1MEDIAN AGE
$74,979AVERAGE HH INCOME
AREA OVERVIEW
EA
ST M
ISS
OU
RI A
VE
NU
E: ±2
0,4
01 V
PD
NORTH 12TH STREET: ±12 ,015 VPD
1111 MISSOURIAPARTMENTS
VIRGINIA G PIPERCHARITABLE TRUST
RYAN MORONEYAssociate Director+1 602 952 3820
DAVID GUIDOManaging Director+1 602 952 [email protected]
TIM WESTFALLManaging Director+1 602 952 3822
PREPARED BY
2398 East Camelback Road, Suite 950Phoenix, AZ 85016
Newmark Knight Frank (the “Agent”) has been engaged as the exclusive sales representative for the sale of [insert building address here] (the ”Property”) by ‘Ownership’ (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.