speedway & dunkin three tenant retail · and 2 locations in new york city. dunkin’s rent is...

SPEEDWAY & DUNKIN THREE TENANT RETAIL2024 Grand Island Boulevard • Grand Island, NY 14072

Market Positioning and Pricing Analysis

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Property Overview

Aerial Photo

FINANCIAL ANALYSIS 02Tenant Summary

Operating Statement

Pricing Detail

Proposal Price

Acquisition Financing

MARKET OVERVIEW 03Market Analysis

Demographic Analysis

SPEEDWAY & DUNKIN THREE TENANT RETAIL

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INVESTMENT

OVERVIEW


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EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Goodyear 1,190

Degraff Memorial Hospital 1,000

General Motors 902

CATHOLIC HEALTH 827

M&T Bank Corporation 686

Fresenius Kabi Usa LLC 450

3M 421

Grand Island Central Schl Dst 383

Westrock Cp LLC 266

Frey Electric Cnstr Co Inc 250

Keller Technology Corporation 250

Sheridan Park Fire District 236

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2019 Estimate Pop 1,054 20,637 81,047

2010 Census Pop 1,020 20,008 80,171

2019 Estimate HH 527 8,076 35,304

2010 Census HH 507 7,780 34,940

Median HH Income $77,193 $88,856 $55,488

Per Capita Income $47,140 $41,265 $30,452

Average HH Income $93,676 $105,231 $69,656

VITAL DATA

100% LEASED YEAR 1

Price $1,950,000 CAP Rate 6.75% 6.75%

Down Payment 100% / $1,950,000Net Operating Income

$131,630 $131,630

Loan Type All CashNet Cash Flow After Debt Service

6.75% / $131,630 6.75% / $131,630

Gross Leasable Area (GLA) 4,470 SF Total Return 6.75% / $131,630 6.75% / $131,630

Price/SF $436.24

Current Occupancy 100%

Year Built / Renovated 1978

Lot Size 1.6 acre(s)

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MAJOR TENANTS

TENANT GLA LEASE EXPIRATION LEASE TYPE

DUNKIN DONUTS 860 SF 12/20/2021 NNN

SPEEDWAY 3,110 SF 10/31/2027 NNN


OFFERING SUMMARY

• Beginning of 2020 Speedway Took Over Sunoco Lease, 7-Eleven Will Be

Acquiring All Speedway Locations

• July 2020 Dunkin Increased Their Percentage Rent by 50 Basis Points

• July 2020 Dunkin Added An Additional Three Five-Year Options

• January 2020 Pizza Amore Extended Their Lease by 10 Years

• Only Dunkin on the Grand Island

• Eight Miles from Niagara Falls State Park (9,500,000 Annual Visitors)

• Adjacent To Heron Pointe (232-units) with 144 More Units In Development

• Three Mile Population Growth of 2.22% by 2024

• 15 miles From Erie County With 918,000 Population

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to exclusively list for sale a 4,470 square foot three tenant retail property located in Grand Island, (Erie County)

New York.

Grand Island is a town located in Erie County, New York. The town of Grand Island is located in the northwestern corner of Erie County, and

on the Canada/US border, although there is no river crossing to Canada. It is northwest of Buffalo and is traversed by Interstate 190 and New

York State Route 324. Paired bridges connect the south end of the island to the town of Tonawanda, and another pair of bridges connects the

northern end to the city of Niagara Falls in Niagara County. The two sets of bridges carry Interstate 190, a branch of the New York State

Thruway (Interstate 90). In addition, New York State Route 324 (Grand Island Boulevard) is conjoined with I-190 at the southern bridges and

reaches its western terminus in the northern part of Grand Island. The major roadways that pass through or near Grand Island are Interstate

190, New York State Route 324, Beaver Island Parkway & West River Parkway.

The asking price of $1,950,000 represents a 6.75% cap rate.

INVESTMENT OVERVIEW

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OFFERING SUMMARY

PROPERTY OVERVIEW

Grand Island is a town located in Erie County, New York. The town of Grand Island is located

in the northwestern corner of Erie County, and on the Canada/US border, although there is no

river crossing to Canada. It is northwest of Buffalo and is traversed by Interstate 190 and New

York State Route 324. Paired bridges connect the south end of the island to the town of

Tonawanda, and another pair of bridges connects the northern end to the city of Niagara Falls

in Niagara County. The two sets of bridges carry Interstate 190, a branch of the New York

State Thruway (Interstate 90). In addition, New York State Route 324 (Grand Island

Boulevard) is conjoined with I-190 at the southern bridges and reaches its western terminus in

the northern part of Grand Island. The major roadways that pass through or near Grand Island

are Interstate 190, New York State Route 324, Beaver Island Parkway & West River Parkway.

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PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Type All Cash

THE OFFERING

Property Speedway & Dunkin Three Tenant Retail

Price $1,950,000

Property Address 2024 Grand Island Boulevard, Grand Island, NY

SITE DESCRIPTION

Year Built/Renovated 1978

Gross Leasable Area 4,470 SF

Ownership Fee Simple

Lot Size 1.6 acre(s)

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AERIAL PHOTO


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AERIAL PHOTO


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AERIAL PHOTO


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PROPERTY PHOTO


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12

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


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TENANT SUMMARY

Tenants pay pro-rate share of taxes, Insurance, CAM

Expenses”. Landlord Responsible for Roof & Structure,

Parking Lot Repair

Dunkin Rent based off of % of Gross Sales, as of July 1,

2020 Dunkin Increased Rent to 8.5% of Gross Sales from

Previous 8.0% of Gross Sales.

Dunkin also added an additional Three Renewal Options To

their term.

FINANCIAL ANALYSIS


OPERATING STATEMENT

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FINANCIAL ANALYSIS


PRICING DETAIL

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TENANT PROFILE


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Pizza Amore

General Information

Tenant Name Pizza Amore

Website www.pizzaamorewoodfire.com

Parent Company Pizza Amoré The Wood Fire Way

Headquartered Grand Island, NY

Rentable Square Feet 500 SF

Lease Commencement 1/1/2020

Lease Expiration 12/31/2030

No. of Locations 1

Wood Fired Brick Oven Pizza, Baked Chicken Wings, Subs and

Chopped Salad Bar. Food Truck. They are a Grand Island

Family owned business since 2011.A personal size pizza can

cook in less than 3 minutes in our 800 degree oven! Wings are

oven baked and charred to perfection, chop salad bar for

Healthy Options and check out the other great foods we have to

offer.

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TENANT PROFILE


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Dunkin Donuts

General Information

Tenant Name Dunkin Donuts

Website www.dunkindonuts.com

Parent Company Dunkin Brand Inc.

Headquartered Canton, MA

Rentable Square Feet 860 SF



No. of Locations 11,300+

Dunkin' Donuts is the world's largest baked goods and coffee

chain. Dunkin' Donuts serves more than 3 million customers on

a daily basis. They also sell more than 52 different kinds of

donuts with an assortment of coffee, bagels, and breakfast

sandwiches. There are more than 11,300 Dunkin' Donuts

worldwide, 8,500 of which are in the United States and located in

41 different states. Dunkin’ Donuts has 3,200 international

restaurants in 36 countries around the world.

Franchise Guarantee from 2024 Narayan LLC with 6 locations in Western NY and 2 locations in New York City. Dunkin’s rent is based off of 8.5% of Gross sales, which was changed in July 2020 from 8% of Gross Sales. Average rent per month from 2019 was $4,100.83 (based off of original agreement of 8.0% Gross Sales). Contact Agent for sales information.

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TENANT PROFILE


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Speedway

General Information

Tenant Name Speedway

Website http://speedway.com/

Parent Company Marathon Petroleum Corporation

Headquartered Enon, OH

Rentable Square Feet 3,100 SF



No. of Locations 3,923

With approximately 3,900 stores located coast to coast,

Speedway is the nation's second largest company owned and

operated convenience store chain. Our success also stems from

our ability to understand people’s needs. We recognize that

there are many gas and convenience store choices, and that

nothing less than outstanding service, a wide selection of

products, and real value for one’s dollar will attract loyal

customers.

MARCUS & MILLICHAP ADVANTAGE

MARCUS & MILLICHAP CAPITAL

CORPORATION CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to

providing superior capital market expertise, precisely managed execution, and

unparalleled access to capital sources providing the most competitive rates and

terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie

Mae, Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues for the benefit of our clients.

Optimum financing solutions to

enhance value

Enhanced control through

investor qualification support


MMCC’s ability to qualify

investor finance contingencies


MMCC’s ability to monitor

investor/due diligence and

underwriting to ensure timely,

predictable closings

Enhanced control through quickly

identifying potential debt/equity

sources, processing, and closing

buyer’s finance alternatives

WHY MMCC?

National platform

operating

within the firm’s

brokerage offices

$ 7.18 billion

total national

volume in 2019

Access to more

capital sources

than any other

firm in the

industry

Closed 1,994

debt and equity

financings

in 2019

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MARKET

OVERVIEW

MARKET OVERVIEW

OVERVIEW

BUFFALO

Containing the popular tourist attraction Niagara Falls and located less than 100

miles from Toronto, the Buffalo metro consists of Erie and Niagara counties, with

the city of Buffalo representing the county seat of Erie County. The metro

generates a significant portion of revenue through tourism, while the economy also

specializes in financial services, healthcare and retailing. The market lies within

500 miles of 40 percent of the U.S. population and a large portion of the Canadian

market.

DEMOGRAPHICS

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ECONOMY

METRO HIGHLIGHTS

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau


CENTRALIZED LOCATIONThree certified Foreign Trade Zones and a centralized location near major

metropolitan areas provide a base of operations for manufacturing and logistics.

ADVANCED MANUFACTURING BASEThere is no state income tax for manufacturing companies, supporting a growing

advanced manufacturing base, with over 63,000 skilled workers in the metro.

WORLD-CLASS LIFE-SCIENCES RESEARCHRoughly 15 percent of local graduates receive degrees in life sciences, making

it the fourth-ranked metro on a per capita basis in the nation.

▪ Comprehensive healthcare systems companies Kaleida Health and Catholic Health employ nearly 20,000

people combined, underscoring the vast healthcare diagnostics and research employment base.

▪ M&T Bank, one of the largest commercial banks in the nation, is headquartered in Buffalo. The firm

employs more than 7,500 workers locally.

▪ The Buffalo Niagara Medical Campus, a 120-plus acre collaborative research park in downtown Buffalo,

provides space for research and development for more than 75 companies in biotech and life sciences.

▪ The metro is the leading dairy producer in the state, while New York is the third largest dairy-producing

state in the nation.

1.2M

2019POPULATION:

482K

2019HOUSEHOLDS:

40.7

2019MEDIAN AGE:

$56,700

2019 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

38.1U.S. Median:

$60,8001.6%

Growth2019-2024*:

0.7%

Growth2019-2024*:

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2019 Experian

Created on July 2020

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2024 Projection

Total Population 1,079 21,098 81,329

▪ 2019 Estimate


▪ 2010 Census


▪ 2000 Census

Total Population 841 18,295 81,440

▪ Current Daytime Population

2019 Estimate 1,296 15,807 76,165

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2024 Projection

Total Households 544 8,329 35,819

▪ 2019 Estimate


Average (Mean) Household Size 2.31 2.53 2.28

▪ 2010 Census


▪ 2000 Census


▪ Occupied Units

2024 Projection 544 8,329 35,819

2019 Estimate 563 8,423 37,831

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2019 Estimate

$150,000 or More 10.72% 14.63% 6.09%

$100,000 - $149,000 24.91% 27.97% 14.70%

$75,000 - $99,999 15.84% 16.58% 13.71%

$50,000 - $74,999 18.06% 16.92% 20.38%

$35,000 - $49,999 10.09% 8.84% 13.20%

Under $35,000 20.41% 15.06% 31.91%

Average Household Income $93,676 $105,231 $69,656

Median Household Income $77,193 $88,856 $55,488

Per Capita Income $47,140 $41,265 $30,452

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure

$82,022 $89,122 $69,257

▪ Consumer Expenditure Top 10 Categories

Housing $24,824 $26,761 $21,171

Shelter $16,887 $18,184 $14,443

Transportation $12,129 $13,266 $10,002

Personal Insurance and Pensions $8,369 $9,665 $6,306

Food $8,169 $8,723 $7,194

Health Care $4,872 $5,233 $3,933

Utilities $3,951 $4,239 $3,397

Entertainment $2,983 $3,397 $2,483

Education $2,646 $3,119 $2,041

Apparel $2,036 $2,134 $1,861

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2019 Estimate Total Population 1,054 20,637 81,047

Under 20 20.78% 22.66% 21.68%

20 to 34 Years 16.68% 16.58% 19.86%

35 to 39 Years 5.02% 5.34% 5.94%

40 to 49 Years 12.63% 12.86% 11.75%

50 to 64 Years 23.74% 24.54% 22.64%

Age 65+ 21.17% 18.01% 18.13%

Median Age 46.64 44.84 42.38

▪ Population 25+ by Education Level

2019 Estimate Population Age 25+ 781 14,845 58,754

Elementary (0-8) 0.76% 0.67% 1.65%

Some High School (9-11) 2.72% 2.83% 6.14%

High School Graduate (12) 19.81% 20.49% 32.32%

Some College (13-15) 17.04% 18.09% 20.22%

Associate Degree Only 12.12% 13.11% 12.84%

Bachelors Degree Only 24.61% 24.00% 14.69%

Graduate Degree 22.11% 20.33% 11.17%

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Income

In 2019, the median household income for your selected geography is

$55,488, compare this to the US average which is currently $60,811.

The median household income for your area has changed by 44.53%

since 2000. It is estimated that the median household income in your

area will be $62,371 five years from now, which represents a change

of 12.40% from the current year.

The current year per capita income in your area is $30,452, compare

this to the US average, which is $33,623. The current year average

household income in your area is $69,656, compare this to the US

average which is $87,636.

Population

In 2019, the population in your selected geography is 81,047. The

population has changed by -0.48% since 2000. It is estimated that the

population in your area will be 81,329.00 five years from now, which

represents a change of 0.35% from the current year. The current

population is 48.77% male and 51.23% female. The median age of the

population in your area is 42.38, compare this to the US average

which is 38.08. The population density in your area is 1,029.67 people

per square mile.

Households

There are currently 35,304 households in your selected geography.

The number of households has changed by 5.10% since 2000. It is

estimated that the number of households in your area will be 35,819

five years from now, which represents a change of 1.46% from the

current year. The average household size in your area is 2.28

persons.

Employment

In 2019, there are 32,909 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

57.76% of employees are employed in white-collar occupations in this

geography, and 42.32% are employed in blue-collar occupations. In

2019, unemployment in this area is 4.41%. In 2000, the average time

traveled to work was 22.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

91.52% White, 2.73% Black, 0.01% Native American and 1.94%

Asian/Pacific Islander. Compare these to US averages which are:

70.07% White, 12.87% Black, 0.19% Native American and 5.66%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 3.89% of the current year

population in your selected area. Compare this to the US average of

18.17%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $118,333 in 2019,

compare this to the US average of $212,058. In 2000, there were

23,418 owner occupied housing units in your area and there were

10,172 renter occupied housing units in your area. The median rent at

the time was $410.

Source: © 2019 Experian

DEMOGRAPHICS

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DEMOGRAPHICS

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and

should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified

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, PCB's or

asbestos, the compliance with 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 Marketing Brochure 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

SPECIAL COVID-19 NOTICE

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary,

especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on

behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus &

Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other

professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma

financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections,

analyses, and decision-making.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name

is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or

commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.


Grand Island, NY

ACT ID ZAB0280350

John Krueger Regional Manager, Manhattan, Lic.# 10311205789

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speedway & dunkin three tenant retail · and 2 locations in new york city. dunkin’s rent is...

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