pdq tempe...the tempe autoplex, the arizona cardinals practice facility, ikea, costco, walmart,...

Confidential Offering MemorandumTempe, AZ

PDQ Tempe

© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 2

Table of Contents

01 Investment Summary 03

02 Property Overview 05

03 Market Overview 07

04 Tenant Overview 11

05 JLL Contacts 13


Investment SummaryPDQ – Tempe, AZ

PDQ | Tempe, AZ


Investment Summary

JLL is pleased to offer for sale the ground interest in a brand new construction PDQ (the “Property”, or “Asset”) located in Tempe, Arizona.

As a brand new construction PDQ, the Property was completed in January 2019 and has commenced a 20 year absolute triple net ground lease (“NNN Ground”)

guaranteed by Evergreen Restaurant Group. The lease features zero landlord responsibilities, 10 percent increases every five years, and four, five-year options for

renewal, making it an outstanding long term investment for anyone seeking an appreciating passive investment. Additionally, the residual value of the underlying

real estate adds value, as Phoenix is one of the top growing MSAs in the nation over the past ten years. The Property is perfectly positioned just 1,500 feet from

the exit ramp off Interstate 10 (218,000+ VPD) along West Warner Road (32,300 VPD) and is proximate to many of the main economic drivers of Tempe including

the Tempe AutoPlex, the Arizona Cardinals practice facility, IKEA, Costco, Walmart, Target and the hundreds of thousands of residents living in Tempe. This

offering represents an outstanding opportunity for passive, long term cash flows which grow every 5 years and are guaranteed by a historically successful

restaurant group.

PROPERTY SUMMARYINVESTMENT HIGHLIGHTS

• Long Term Commitment to Location: The tenant signed a 20 year absolute

NNN ground lease which commenced in January 2019.

• Outstanding Restaurant/Retail Site: The Property sits just 1,500 feet off the

exit ramp of Interstate 10 (218,000+ VPD) along West Warner Road (32,300

VPD).

• Surrounding Economic and Traffic Drivers: Tempe AutoPlex, the Arizona

Cardinals practice Facility, and retailers such as IKEA, Costco, Walmart, Target,

Lifetime Fitness, and countless others bring tremendous traffic to this corridor.

• Rapidly Expanding Market Anticipating Continued Growth: The Phoenix MSA

has been one of the most rapidly expanding markets in the nation over the past 10

years; Phoenix’s population is expected to continue to increase by over 42 percent

over the next fifteen years.

• Strong Operator Guaranty: Evergreen Restaurant Group, LLC is a 31+ unit

franchisee operator. They are based out of Redmond, Washington and operate

Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill restaurants in the

northwest. Alaska, Oregon, Washington, Utah, Wyoming, Montana, Idaho, and

Arizona.

Address 8905 S Harl Ave, Tempe, AZ 85284

Price $2,910,000

NOI $160,000

Cap Rate 5.50%

Lease Type Absolute NNN Ground

Square Footage 3,340 SF

Site Size +/- 1.17 acres

Year Built 2019

Tenant PDQ Warner Harl, LLC

Guarantor Evergreen Restaurant Group

Owner Interest Ground

Remaining Term 20 years

Rental Increases 10% every 5 years

PDQ | Tempe, AZ


Property Overview

The Property is a brand new construction for PDQ just off Interstate 10 on Warner Road in Tempe, benefiting from over 32,300 vehicles passing daily.

Additionally, proximity to the Tempe Auto Mall, IKEA, Target, Life Time Fitness, the Arizona Cardinals practice facility, and many office and industrial parks will

drive heavy traffic to the location. Just east of the Property is the San Sonoma luxury apartment community, with over 300 units and outstanding amenities

providing an immediate customer base for the newly opening restaurant.

The PDQ is an outparcel to the Agave Center Commerce Park, a 300,000 square foot office/flex park comprised of 5 buildings in Tempe. The complex is home to

over 40 businesses including Arizona State University, Tyler Technologies, McFarlane Toys, Logicalis, Lennar Sales Corporation, Eagle Home Mortgage, Radiall,

Qwaltec, and many more. There are several thousand employees in the park and the Property will benefit directly from the lunch and after work dinner crowd.

BUILDING AND LEASE SPECIFICATIONS

Address 8905 S Harl Ave, Tempe, AZ 85284

Year Built 2018/2019

Ownership Interest Ground

Parcel Size +/- 1.17 acres

Parking Spaces TBD

Property Type Freestanding Retail

Property Size 3,340 square feet

Tenant (Guarantor) PDQ Warner Harl, LLC (Evergreen Restaurant Group, LLC)

Lease Type Absolute NNN Ground

Lease Expiration 1/31/2039

Lease Term Remaining 20 years

Renewal Options 4, 5-year options

Net Operating Income $160,000

Rental Increases 10% every 5 years

Sales Reports Annually

Lease Year Annual Rent Monthly Rent % Increase

1-5 $160,000 $13,333 -

6-10 $176,000 $14,667 10.00%

11-15 $193,600 $16,133 10.00%

16-20 $212,960 $17,747 10.00%

Option 1 $234,256 $19,521 10.00%

Option 2 $257,682 $21,473 10.00%

Option 3 $283,450 $23,621 10.00%

Option 4 $311,795 $25,983 10.00%

RENT SCHEDULE

PDQ | Tempe, AZ


Property Overview

Property Photography


Market Overview PDQ – Tempe, AZ

PDQ | Tempe, AZ


Market Overview

Known as “The Valley of the Sun”, Greater Phoenix area sees more sunshine than any other metro area in the country. Phoenix is the sixth largest city in

the United States and consistently outpaces the United States population growth rate. Phoenix is well known for its warm climate, beautiful setting, great

cultural and recreational amenities and low cost of living.

Phoenix is the best place to get a sampling of all the state has to offer. Its downtown area may be characterized by sleek, ultramodern office buildings, but

the city center is not all about work. Phoenix also contains ample opportunities to play. Recently built sports stadiums, along with updated arts and

shopping districts fringe downtown, as do some of the area's finest eateries.

Phoenix has consistently outpaced the U.S. population growth. Over the last 35 years, the population of Metro Phoenix has nearly tripled, growing from 1.6

million people in 1980, to approximately 4.7 million residents today. The population is projected to grow more than 42% over the next 13 years, surpassing

6.5 million residents by 2030.

4.7 millionResidents call Phoenix metro home. Tripling in size over the

last 35 years, since 1980.

300+Phoenix enjoys over 300 days of sunshine

per year

75°Phoenix has an average year-

round temperature of 75°

#1 Arizona State University –

Tempe is ranked the “Most Innovative School in America” – US News

4.9% corporate

income tax rate

2.2% projected job growth in 2017(compared to U.S. annual project growth of 0.8%) –

Moody’s

+30% Of population hold’s

bachelor degrees or

higher

Economy

300K+ More than 300K students in Metro

Phoenix, lead by Arizona State

University

Center for Higher Education

Phoenix Population Growth

42%Phoenix is projected to grow

more than 42% over the next 15

years.

Job Growth

#2 State with the fastest job growth -

Kiplinger

Top 10 Busiest Airport

43 million+ Phoenix Sky Harbor International Airport in 2017

5 Teams5 Professional sports teams call Phoenix home: Cardinals (NFL),

Diamondbacks (MLB), Suns (NBA), Coyotes (NHL) Mercury (WNBA)

Passengers passed through

Phoenix, AZ

PDQ | Tempe, AZ


Location Overview

Area Overview.

PDQ | Tempe, AZ


Market Overview

Market Positioning.

Demographic Information1-Mile 3-Mile 5-Mile

Population

2018 Population 10,302 102,336 242,435

2018 Number of Households 4,786 42,401 97,439

2023 Proj. Population 11,477 108,933 258,310

2023 Proj. Households 5,254 45,030 103,606

2018-2023 Annual Growth 2.18% 1.26% 1.28%

2018-2023 Total Growth 11.41% 6.45% 6.55%

2018 Daytime Population 20,389 116,801 269,364

2018 Daytime Pop Increase 97.91% 14.13% 11.11%

Income

Average HH Income $78,079 $97,921 $91,705

Median HH Income $58,793 $72,350 $68,724

Less than $35,000 22.1% 19.3% 20.9%

$35,000 - $49,999 17.2% 13.4% 13.5%

$50,000 - $74,999 23.3% 18.7% 19.2%

$75,000 - $99,999 12.8% 14.4% 14.3%

More than $100,000 24.5% 34.2% 32.0%


Tenant OverviewPDQ – Tempe, AZ

PDQ | Tempe, AZ

PDQ


Tenant Overview

• Founded in 2011, PDQ - short for "People Dedicated to Quality" - is blurring the lines between fast

food and fast casual with its high-touch, high-integrity approach to fresh food, fast. Beloved

amongst its customer base for its hand-breaded chicken tenders, PDQ crafts delicious salads,

sandwiches, and hand-spun milkshakes fresh in store, every day. In addition, PDQ is committed to

creating deep roots in its local communities and gives thousands of dollars to local charities,

schools, and organizations in need every year. The concept now has 72 locations throughout

Alabama, Arizona, Florida, Georgia, Illinois, Nevada, New Jersey, New York, North Carolina,

Oklahoma, South Carolina, Texas, and Utah.

• Outback Steakhouse co-founder Bob Basham and MVP Holdings CEO Nick Reader are the two

principal owners of PDQ. Reader was CFO of the NFL franchise Tampa Bay Buccaneers from

2003-2008. Along the way, PDQ has attracted the interest of some heavyweight investor-partners,

including former NFL quarterback Tim Tebow, fellow Outback founder Tim Gannon, and DeBartolo

Development, best known for its high-profile retail projects in Florida.

• With about 75 employees per store, PDQ promises a level of hospitality designed to out-service

traditional quick service restaurants. The digital menu boards are at counter height to encourage

eye contact between customer and server. Rather than a speaker at the drive-thru, an employee

takes customer orders within the drive-thru line using a mobile POS to enhance the customer-

employee interaction. “Squawk boxes are not conducive to hospitality,” says Basham.

Tenant Overview

Tenant: PDQ Warner Harl, LLC dba PDQ

Guarantor: Evergreen Restaurant Group

Number of Locations: 74

Company Type: Private

Founded: 2011

Headquarters: Tampa, FL

Sector: Fast Casual/QSR

PDQ | Tempe, AZ

13

JLL Contacts

ADVISORS

Tivon MoffittSenior Vice President

JLL Capital Markets

+1 602 282 6348

[email protected]

3131 E Camelback Rd. | Phoenix, AZ 85016

www.us.jll.com/capitalmarkets

Copyright © Jones Lang LaSalle IP, Inc. 2018This publication is the sole property of Jones Lang LaSalle and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle.

The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information.

We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance

on this publication. Jones Lang LaSalle Americas, Inc., California license # 01223413. Jones Lang LaSalle Americas, Inc. License # 19262.

Contact Information

Peter BaumanSenior Vice President

JLL Capital Markets

+1 602 282 6348

[email protected]

Broker of Record

Bill HonsackerManaging Director

AZ License #: BR516372000

mailto:[email protected]

http://www.us.jll.com/capitalmarkets

mailto:[email protected]

pdq tempe...the tempe autoplex, the arizona cardinals practice facility, ikea, costco, walmart,...

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