walmart anchored shops freddy’s frozen custard

Freddy’s Frozen CustardLakewood, CO

Offering Memorandum

WALMART ANCHORED SHOPS9550 SAGE ROAD SWALBUQUERQUE, NM 87121

Shops

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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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y00702328


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WALMART ANCHORED SHOPS

SageMarketplace

Walgreens

Truman Middle School

Edward GonzalesElementary Schools

Helen CorderoElementary School

Jimmy CarterMiddle School

Tower PondPark

40

SAGE RD

CENTRAL AVE

CORONADO FWY

UNSER BLVD

98TH ST

45

10.8 Acre PlAnned retAil develoPment

Shops

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3This 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y00702328



Future WAlmArt GAs

Shops

SAGE ROAD - 11 ,200 CP98TH S

TREET - 23 ,0

00 CPD

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Future WAlmArt GAs

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EXECUTIVE SUMMARY


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WALMART ANCHORED SHOPS9550 Sage Road SWAlbuquerque, NM 87121

SUITE#

TENANT NAME

APPROX. RENTABLE SF

PERCENT OCCUPANCY

LEASE COMMENCE.

LEASE EXP. LEASE TYPE RENTAL

INCREASESRENEWAL OPTIONS

APPROX RENT PSF

BASE RENT PER MONTH

ANNUAL RENT

A100 H & R Block 1,258 5.95% 11/1/2007 4/30/2020 NNN None None $33.78 $3,540.76 $42,489

A101 My Peak Wireless 1,241 5.87% 10/1/2017 1/31/2021 NNN4.8% on 3/1/2019, then 3% annually

in options2, 5 Yr $21.00 $2,171.75 $26,061

A103 Domino's Pizza 1,197 5.66% 11/8/2006 4/30/2022 NNN 2% Annual Increases None $31.77 $3,169.34 $38,032

A104 Rainbow Dollar Store 1,869 8.84% 10/7/2007 12/31/2018 GROSS None None $22.47 $3,500.00 $42,000

A105 Anytime Fitness 5,002 23.67% 2/1/2017 1/31/2020 NNN$5,000 Increase after Year 1 and in

First Option Period1, 3 Yr $14.00 $5,835.67 $70,028

B101-106 Family Dollar 7,764 36.74% 4/18/2011 6/30/2021 NNN 10% Increase in Each Option 2, 5 Yr $14.00 $9,058.00 $108,696

B107 Chinese Restaurant 1,201 5.68% 12/11/2006 3/31/2022 NNN 3% Annually Starting on 4/1/2019 1, 5 Yr $29.48 $2,950.36 $35,404

B108 Nail Salon 1,600 7.57% 3/1/2017 2/28/2022 NNN 3% on 3/1/2020 1, 5 Yr $29.26 $3,901.73 $46,821

TOTAL SF 21,132 100% MONTHLY INCOME $34,128

OCCUPIED SF 21,132 100% ANNUAL INCOME: $409,531

AVAILABLE SF 0 0% *AVERAGE NNN RENT $19.03

*Accounts for equivalent of Gross leases being NNN


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EXECUTIVE SUMMARY WALMART ANCHORED SHOPS

TENANT NAME SQ.FT. LEASE END JAN FEB MARCH APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL SQ.FT.

H & R Block 1,258 04/30/20 $3,540.76 $3,540.76 $3,540.76 $3,540.76 $3,540.76 $3,540.76 $3,540.76 $3,540.76 $3,540.76 $3,540.76 $3,540.76 $3,540.76 $42,489 $33.78

My Peak Wireless 1,241 01/31/21 $2,171.75 $2,171.75 $2,171.75 $2,171.75 $2,171.75 $2,171.75 $2,171.75 $2,171.75 $2,171.75 $2,171.75 $2,171.75 $2,171.75 $26,061 $21.00

Domino's Pizza 1,197 04/30/22 $3,169.34 $3,169.34 $3,169.34 $3,169.34 $3,169.34 $3,169.34 $3,232.73 $3,232.73 $3,232.73 $3,232.72 $3,232.72 $3,232.72 $38,412 $32.09

Rainbow Dollar Store 1,869 12/31/18 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $42,000 $22.47

Anytime Fitness 5,002 01/31/20 $5,835.67 $6,252.50 $6,252.50 $6,252.50 $6,252.50 $6,252.50 $6,252.50 $6,252.50 $6,252.50 $6,252.50 $6,252.50 $6,252.50 $74,613 $14.92

Family Dollar 7,764 06/30/21 $9,058.00 $9,058.00 $9,058.00 $9,058.00 $9,058.00 $9,058.00 $9,058.00 $9,058.00 $9,058.00 $9,058.00 $9,058.00 $9,058.00 $108,696 $14.00

Chinese Restaurant 1,201 03/31/22 $2,950.36 $2,950.00 $2,950.00 $2,950.00 $2,950.00 $2,950.00 $2,950.00 $2,950.00 $2,950.00 $2,950.00 $2,950.00 $2,950.00 $35,400 $29.48

Nail Salon 1,600 02/28/22 $3,901.73 $3,901.73 $3,901.73 $3,901.73 $3,901.73 $3,901.73 $3,901.73 $3,901.73 $3,901.73 $3,901.73 $3,901.73 $3,901.73 $46,821 $29.26

TOTAL RENTABLE SF 21,132 100.00% $34,128 $34,544 $34,544 $34,544 $34,544 $34,544 $34,607 $34,607 $34,607 $34,607 $34,607 $34,607 $414,493 $19.61

PROJECTED RENT SCHEDULE

(FOR PERIOD JANUARY 1, 2018 THROUGH DECEMBER 31, 2018)

EXECUTIVE SUMMARY


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Total Square Feet Per Leases: 21,132 SF

Occupancy as of November 2017: 100%

INCOME

Scheduled Base Rent $414,493

Estimated Total Potential Base Rent $414,493

Plus Expense Reimbursements $93,352

GROSS INCOME $507,845

5% Vacancy Reserve/Loss Allowance $15,235

EFFECTIVE GROSS INCOME 492,610

OPERATING EXPENSES PSF

CAM Expense $50,000 $2.37

Property Taxes $23,000 $1.09

Insurance $10,566 $0.50

Management @ 3% $12,435 $0.59

TOTAL OPERATING EXPENSES $96,001 $4.54

NET OPERATING INCOME $396,609

OFFERING PRICE $5,370,000

CAPITALIZATION RATE 7.40%

PRICE PER SQUARE FOOT $254.12

PRO FORMA INCOME & EXPENSE SUMMARY

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WALMART ANCHORED SHOPSTENANT OVERVIEW

H&R Block is a global consumer tax services provider, having prepared more than 680 million tax returns since 1955. There are approximately 12,000 company-owned and franchise retail locations in all 50 states, Puerto Rico and other U.S. territories, and on U.S. military bases around the world. An H&R Block branded retail office is located within five miles of most Americans.In fiscal 2015, H&R Block had revenues over $3.1 billion and prepared 24.2 million tax returns worldwide.www.hrblock.comcorporate lease

My Peak Wireless, an authorized Verizon dealer, offers prepaid wireless plans from Verizon - the nation’s largest network.The lease is guaranteed by Card Limited, LLC

Founded in 1960, Domino’s is the recognized world leader in pizza delivery operating a network of company-owned and franchise-owned stores in the United States and international markets. Domino’s is a company of exceptional people on a mission to be the best pizza delivery company in the world. Domino’s is 97% franchise-owned and there are nearly 800 independent franchise owners in the U.S. Domino’s operates 14,200 stores in more than 85 countries around the world.www.biz.dominos.comThe award winning franchisee, Pecos Valley Pizza, Inc., has been owning and operating Domino’s restaurants for 30 years. Today, they oerate 53 excellent locations throughout Colorado and New Mexico and employ over 1000 people, with plans to build and purchase more Domino’s stores. Domino’s Pizza, Inc. has recognized Brian Bailey “Team Bailey” (franchise owner) with the “Franny” award 11 times, the highest award bestowed upon a franchisee. Additionally, the Corporation has awarded both National Supervisor of the Year and National Rookie Manager of the Year to great Team Bailey emloyees; and several employees have gone on to be successful Domino’s Pizza Franchisee’s themselves.

Rainbow Retailing LLC is a local dollar store located in Albuquerque. Single Unit Operator.The lease is personally guaranteed

rAinboW dollAr store

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WALMART ANCHORED SHOPSTENANT OVERVIEW

Anytime Fitness was founded in 2002 in Cambridge, MN. More than 3,000 gyms are now open in 50 states and nearly 30 countries. They are the world’s “fastest-growing fitness club” and “largest co-ed fitness franchise.” An average of 300 new gyms have opened each year for the past 8 years.

www.anytimefitness.comThis location is operated by Myriad Southwest Mesa, Inc., a Single Unit Operator.

The lease is personally guaranteed

Full-service nail salon offering manicures, pedicures, and more.The lease is personally guaranteed

One of the nation’s fastest growing retailers, Family Dollar offers a compelling assortment of merchandise for the whole family ranging from household cleaners to name brand foods, from health and beauty aids to toys, from apparel for every age to home fashions, all for everyday low prices. While shoppers can find many items at $1 or less, most items in the store are priced below $10, which makes shopping fun without stretching the family budget.corporate lease

neW drAGon chinese restAurAnt

Restaurant serving typical Chinese dishes.

orly nAil sAlon

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WALMART ANCHORED SHOPSPROPERTY DESCRIPTION

LOCATION OVERVIEWINVESTMENT HIGHLIGHTSThe Albuquerque metropolitan area spans Bernalillo, Sandoval, Torrance and Valencia counties. The metro has grown by 25 percent since 2000, to nearly 911,500 citizens. Albuquerque is the largest city with roughly 558,700 residents followed by Rio Rancho. Over the next five years, the population of the metro will increase by 1.1 percent annually.

Albuquerque’s economic activity relies partially on the government and defense sectors, which are increasing payrolls in the metro. The largest employer of the region is Kirtland Air Force Base, with more than 30,000 civilians and thousands of additional military workers. Additionally, Sandia National Laboratories, Honeywell Defense & Space Electronic Systems and Northrop Grumman provide a substantial amount of the vocational opportunities in the region.

The major drivers of the Albuquerque economy are government, defense, manufacturing and high tech. Since recovering from the recession, the local economy is now accelerating. The U.S. military plays a vital role in the local economy, attracting private and government high-tech institutions, a well-trained labor force and capital investment to the region. The local government shows strong support for the expansions and relocations of business. Both government and business officials in the region have aggressively sought to provide tax incentives and create economic zones to encourage such growth.

The Albuquerque metro offers a wide array of recreational opportunities. Skiing, golfing, mountain biking, camping and hiking are a few of the activities available in the Sandia and Manzano mountains to the east of Albuquerque. The Sandia Peak Tramway provides access to ski resorts and an outstanding view of the beautiful mountains. Furthermore, the region is home to more than 400 miles of trails for biking and hiking.

• Anchored by One of the Best Performing Walmart Neighborhood Markets in Albuquerque

• 100% Leased

• Signalized Hard Corner Intersection

• Excellent Ingress / Egress

• Average NNN Rent is $19.03/psf

• 10.8 Acre Planned Commercial Retail Development Directly Across the Street

• Residential Growth in the Immediate Area

• 2016 Construction

• Visible to 34,200 Cars per Day from Sage Road and 98th Street

• Future Walmart Gas Going In on the Pad in Front of Shops

• 154,618 Residents in a 5-Mile Radius

Income 1-Mile 3-Miles 5-Miles

2016 Est. Average Household Income $53,221 $50,698 $54,312

2016 Est. Median Household Income $45,487 $40,970 $41,354

2016 Est. Per Capita Income $15,679 $15,744 $18,383

Population 1-Mile 3-Miles 5-Miles

2020 Projection 30,168 101,003 171,606

2016 Estimate 26,167 87,521 154,618

Growth 2016 - 2021 15.29% 15.40% 10.99%

Households 1-Mile 3-Miles 5-Miles

2021 Projections 8,932 31,479 57,922

2016 Estimate 7,709 27,170 52,111

Growth 2016 - 2020 15.87% 15.86% 11.15%

DEMOGRAPHICS

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WALMART ANCHORED SHOPSSITE PLAN

Shops

Future Walmart Gas

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WALMART ANCHORED SHOPSREGIONAL MAP

Shops

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WALMART ANCHORED SHOPSLOCAL MAP

Shops

Marcus & Millichap hereby advises all prospective purchasers of Net Leased prop-erty as follows:

By accepting this Marketing Brochure, you agree to treat the information con-tained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investiga-tion regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before complet-ing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or compa-rable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

NET LEASED DISCLAIMER

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical 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, PCBs or asbestos, the compliance with local, 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 offering memorandum 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CONFIDENTIALITY AGREEMENT

exclusively listedExclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

SCOTT RUBLENET LEASE ADVISORY GROUPTel: (602) 687-6845Fax: (602) [email protected]

MATT REEVESBROKER OF RECORDTel: (505) 585-5700 License: 19583

walmart anchored shops freddy’s frozen custard

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