offering memorandum 1036 s. country club dr., Mesa, aZ 85210

Transcription

offering memorandum
el pollo loco | single tenant absolute nnn ground lease
1036 S. Country Club Dr., Mesa, AZ 85210
Eric Carlton
Senior Advisor
License No. 01809955
949.724.5561
[email protected]
Jereme Snyder
Executive Vice President
949.724.5552
[email protected]
John Sharpe
Investments
949.724.5546
[email protected]
The SNYDER/CARLTON Team
Colliers NNN Group
3 Park Plaza Ste. 1200
Irvine, CA 92614
www.colliersnnn.com
table of contents
executive summary..................................................................................................3
tenant overview........................................................................................................5
financial overview....................................................................................................9
property overview...................................................................................................11
market & area overview........................................................................................ 17
Colliers International | 3 Park Plaza, Suite 1200 | Irvine, CA 92814 | Snyder/Carlton Team
Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to,
warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s). 2012. All rights reserved.
El Pollo Loco | 1036 S. Country Club Dr. | page 2
executive summary
Colliers NNN Group
www.colliersnnn.com
investment highlights
STRONG FRANCHISE GUARANTEE:
>>
Multi-Unit Operator (13 Locations) - Preferred Franchisee for Arizona
>>
National Brand Tenant- El Pollo Loco Inc. – Trimaran Capital Partners
>>
Nation’s #1 Leading Quick-Service Restaurant Chain Specializing in Flame-Grilled Chicken
>>
QSR Magazine “Top 50 Restaurants” for 2011 - Over 450 Locations and Growing
>>
Voted “Best Chicken Place” Nine Consecutive Years by Readers of the Orange County Register
>>
Ranked in “Top 100 Movers & Shakers” by Fast Casual Magazine - 2011
STABLE INCOME- EASE OF MANAGEMENT:
PROPERTY OVERVIEW
The property consists of a fee simple, absolute NNN ground lease (5 Years remaining with 4-5 yr. options) with
12.5% increases every 5 years, including all options. The Lease is with Pack-Huynh, LLC and Arizona Colorado
Enterprises, LLC whom are preferred Franchisees for the state of AZ and current operate 13 locations in CA
and AZ. Moe Pack and Phong Huynh are extremely successful restaurant franchisee Operators since 1969,
starting with Pioneer Chicken. Phong has overseen 72 El Pollo Loco restaurants and supervised the expansion
into new markets such as Chicago, Denver, Georgia and now Arizona. Their remarkable ability to improve store
performance earned them the “Most Improved Sales Award” at the 2012 El Pollo Loco Convention.
Spanish for “The Crazy Chicken,” is the nation’s flame-grilled chicken leader with more than 450 restaurants
(aggressively expanding) in California, Arizona, Nevada, Texas, Illinois, Connecticut, Oregon, and Utah. Founded
in Guasave, Mexico in 1975, El Pollo Loco’s long-term success stems from the unique preparation of its awardwinning “pollo” - fresh chicken marinated in a special recipe of herbs, spices and citrus juices passed down from
the founding family.
Their Headquarters are located in Costa Mesa, California, a privately held company owned by Trimaran Capital
Partners and company management. Since 1995, the Timaran Fund has invested $1.6 billion of equity in fiftynine portfolio companies; transactions totaling in excess of $10 billion and developed a systematic approach
to identifying markets with attractive growth prospects, in which businesses can be acquired or formed at
attractive valuations, and then growing their earnings. Recently, El Pollo Loco was named in Nation’s Restaurant
News Top 100 and QSR Magazine’s Top 50 Restaurants. For nine consecutive years running, EPL has been
voted ”Best Chicken Place” by readers of the Orange County Register while also ranked by Franchise Times
Top 200 Restaurants.
>>
Absolute NNN Ground Lease - 5 Years Remaining with 4-5 Year Options
>>
12.5% Rental Increases Every 5 Years - Including All Options - Effective Inflation Hedge
>>
Zero Management Responsibilities - Tenant Pays All Expenses - Fee Simple Ownership
>>
Single Tenant Free Standing Building with Drive-Thru – New Prototype Remodel
>>
Over $120K in Tenant Improvements Scheduled in 2013
EXCELLENT RETAIL LOCATION- STRONG DEMOGRAPHICS:
>>
Premiere Hard Corner Location - Outparcel PAD to 99c Neighborhood Shopping Center
>>
Excellent Traffic/Street Visibility - Monument Signage - Main Retail Trade Area for Mesa Community
>>
Surrounded by Dense Residential & Retail Location - Infill City - Minimal Competition in the Region
>>
Surrounding National Retailers Include; Target, Wal-Mart, 99c Store, Home Depot, BigLots, Costco,
Family Dollar, Denny’s, Goodwill, Sizzler, Pizza Hut, Mesa Financial Plaza and Mes a Community College
>>
Just Off Highway 60 - Near Arizona State University - Strong Demographics - Over $52,583 HHI
PERFECT 1031 EXCHANGE PROPERTY:
>>
12.5% Rent Bumps Every 5 Years - Below Market Rents - Limited Downside Risk
>>
No Existing Financing in Place – Newer Prototype Construction - Established Location
>>
Zero Management Responsibilities - Absolute NNN Ground Lease
>>
Strong Mesa Fast Food Retail Location – Neighbors ASU Campus - High Barriers to Entry
>>
Rare Opportunity to Own National QSR Retailer at Low Price Point - Proven Operator
tenant overview
Colliers NNN Group
www.colliersnnn.com
lease summary
LEASE SUMMARY
Tenant Trade Name
Lease Guarantor
Lease Commencement
Lease Expiration
Lease Term
El Pollo Loco
Pack-Huynh LLC, Arizona &
Colorado Enterprises LLC
June 1, 1998
April 30, 2018
20 Years
Term Remaining On Lease
5 Years
Current Annual Base Rent
$75,600
Option Periods
Roof and Structure
Building Area
Lease Type
Right of First Refusal
APN
4-5 Year Options
12.5% Rent Bumps Every Option
05/01/2018 $84,900.00
05/01/2023 $95,508.00
05/01/2028 $107,448.00
05/01/2033 $120,876.00
POPULATION
1-MILE
3-MILE
5-MILE
Tenant Responsible
Estimated Population (2013)
20,950
153,584
372,814
3,060 SF
Projected Population (2018)
21,222
155,560
378,186
Projected Annual Growth
1.30%
1.29%
1.44%
Average Household Income (2013)
$37,632
$45,773
$52,583
Single Tenant Absolute NNN Ground Lease
No
134-17-022-D
tenant description
It all began in Guasave, Mexico in 1975. El Pollo Loco was originally
a roadside chicken stand. Its signature menu item? “Pollo,” of course:
fresh chicken marinated in a special recipe of herbs, spices and fruit
juices. Needless to say, El Pollo Loco quickly became a local favorite.
By 1980, the very first American El Pollo Loco opened on Alvarado Street
in Los Angeles. While a lot has happened over the past few decades, El
Pollo Loco’s commitment to fresh, authentic food has not. At el pollo
loco, pronounced “l po-yo lo-co” and spanish
for “the crazy chicken,” they go to crazy lengths
for their signature citrus-marinated, fire-grilled
chicken. First, they marinate fresh, whole chickens
in a special recipe of herbs, spices, fruit juices and
garlic. The whole chickens are then fire-grilled,
hand-cut, and served with their chicken meals,
burritos, salads, soups, tacos and quesadillas.
2012: In January, El Pollo Loco launched major
remodel program that celebrates the brand’s
heritage and updates the dining room and building exterior.
is then fire-grilled, hand-cut and served
hot off the grill with warm tortillas, freshly
prepared salsas, and a wide assortment
of side dishes. Rounding out the menu
are fresh, flavorful entrées inspired by
the kitchens of Mexico, including grilled
burritos, salads, tacos, quesadillas and their original Pollo Bowl®.
Type:
Industry:
Founded:
Headquarters:
Locations:
Key people:
Products:
Owner:
Website:
Privately Held Company
Fast food
Guasave, Sinaloa, 1975
Costa Mesa, California
450
Steve Sather
President, CEO
Flame-Grilled Chicken
Mexican Food
Trimaran Capital Partners
www.elpolloloco.com
El Pollo Loco’s success stems from the unique preparation of its awardwinning pollo: fresh chicken marinated in a signature recipe of herbs,
spices, garlic and fruit juices passed down over the years. Their chicken
AWARDS
pack-huynh, llc
Financial
Moe Pack is an extremely successful multi-unit restaurant franchisee with multiple brand
and unit experience since 1969. He started in the industry with Pioneer Take Out Chicken
as a hands-on owner/operator of nine units. In 1993 he purchased his first El Pollo Loco
restaurant located in San Diego, CA, eventually acquiring and developing five additional
units throughout Southern California. With 20 years experience as an El Pollo Loco
franchisee, Moe has proven his ability to successfully grow and manage multiple locations.
Qualifications
Phong Huynh is truly an American success story who is still writing ever impressive
chapters. A refugee from Vietnam and raised as an orphan, he started working at El Pollo
Loco during high school as part of the nigh cleaning crew, eventually working his way
up to Director of Franchise Operations overseeing 72 restaurants and all new restaurant
openings for the Franchisor. He directly supervised the brand expansion into new markets including Chicago, Denver, Georgia, Connecticut, Northern California, and
Arizona. In addition, Phong worked in the El Pollo Loco Training Department as the Franchise Training Consultant in charge of providing and monitoring training for
162 franchise restaurants and is the author of the current Training Restaurant Certification Program. He is widely considered the most knowledgeable and capable
operator in the entire El Pollo Loco chain.
Operations
Moe and Phong are approved for this 9 unit transaction and future developments in Arizona by the Franchisor.
Moe and Phong have a proven track record of increasing sales through improved operations. They emphasize service through careful training of the crew, keeping
the facilities in top notch condition and providing consistent high quality product. Phong will be at these restaurants every day to raise and sustain the quality of the
customer experience.
In addition to improving quality of service and product, significant capital will be reinvested into the businesses. Within the first year, 5 of 9 stores will be remodeled
to franchisor standards and all units will receive significant store beautification. New Point-of-Sale equipment and new drive-tru headgear/speakers will be purchased
and installed in all nice stores, and new kitchen equipment will be installed including holding cabinets and rice cookers to provide the consistent quality produce Moe
and Phong demand .
financial overview
Colliers NNN Group
www.colliersnnn.com
financial analysis
Tenant
Bldg Square
Footage
El Pollo Loco
3,060
TOTALS
3,060 SF
Lease Start
6/1/1998
Lease Expiration
4/30/2018
Rent/
Sq. Ft.
$24.71
Annual Rent
$75,600.00
Options
Flat
4- 5 Year Options
12.5% Rent Bumps Every Option
05/01/2018 $84,900.00
05/01/2023 $95,508.00
05/01/2028 $107,448.00
05/01/2033 $120,876.00
$75,600
PRICING
OPERATING EXPENSE DATA
Price
$1,260,000
NOI
$75,600
Cap Rate
Increases
6.00%
Taxes
NNN
Insurance
NNN
CAM
NNN
property overview
Colliers NNN Group
www.colliersnnn.com
property information
Address / Location
Zoning
1036 S. Country Club Dr. | Mesa, AZ 85210
C-G (General Commercial)
Market/Submarket
Year Built/Renovated
Mesa
Built in 1998
Price
Renovated in 2010 / Planned Renovation 2013
$1,260,000
Current NOI
$75,600
Cap Rate
6.00%
Parcel
APN#: 134-17-022-D
Land Area
Approximately 21,609 SF (.50 Acres)
Building Area
Approximately 3,060 SF
Visibility And Frontage
Excellent visibility and frontage along W. Emerald Ave.
Access
Easy access from the 60 Freeway
Over 235,988 CPD
property photos
site plan
Barber
1 Insurance
2 Massage
3
4 CONV. MARKET
5
Samurai
Comics
11 12
14
13
J&K
Trading
7
17
GG & D Financial
& Check Cashing
10
15 16
GCB Sports Exchange
United Beauty
Supply
18 19 20
22
21
8 9
23
30
27
Rent
1St
28
Gold
Exchange
29
25
26
24
Subject
property
Emerald Avenue
31
BOSA
DONUTS
Southern Avenue
6
Country Club Drive
property aerial
W. 8th Ave.
Crossroads
Focus School
Southern
Sunset
Plaza
W. 10th Ave.
W. Southern Ave.
S. Center St.
CPD 36,500
S. Country Club Dr.
S. Extension Rd.
Ida Redbird
Elementary
School
CPD 39.600
W. Emerald Ave. CPD 13,400
Industrial
CubeSmart
Self Storage
Burke Basic
School
Country Cousins
Mobile Park
N. Stapley Dr.
Brown Rd.
Mobile Home
N. Horne
Broadway Rd.
W. Southern Ave.
60
Manor
S. Val Vista Dr.
Fiesta
Mall
E. University Dr.
N. Mesa Dr.
CPD 169,297
101
S. Country Club Dr.
W. Main St.
Dobson Rd.
Apache Blvd.
N. Center St.
Mesa
S. McClintock Dr.
S. Rural Rd.
E. Rio Salado Pkwy.
Mountain View
High School
S. Lindsay Rd.
CP
D
202
N. Gilbert Rd.
40
11
8,0
N. Val Vista Dr.
property aerial
CPD 235,988
W. Baseline Rd.
E. Baseline Rd.
Dobson Ranch
market & area overview
Colliers NNN Group
www.colliersnnn.com
location overview
suburban environment. Just 15 miles east of Phoenix, Mesa covers 132 square miles with
dynamic recreational, educational and business environments. Mesa enjoys the best in a
variety of amenities including parks within easy walking distance from home, a variety of
sports facilities that cater to athletes young and old, highly rated golf courses for every
skill level, a diversity of special events and community festivals, and Mesa’s ever-popular
Chicago Cubs Spring Training baseball.
This high traffic location along Country Club Dr. boasts over 39,600 CPD (235,988 CPDHwy 60) and enjoys highly visible monument signage. There are over 372,814 people
within 5 miles and demographics well suited for El Pollo Loco restaurant. With strong
future growth, this property offers tremendous long term stability.
POPULATION
The property is located at the hard corner of S. Country Club Dr. and W. 10th Ave,
1-MILE
3-MILE
5-MILE
Estimated Population (2013)
20,950
153,584
372,814
Projected Population (2018)
21,222
155,560
378,186
Historical Annual Growth 2000-2010
-0.98%
-6.38%
-4.11%
just off Highway 60 in the City of Mesa, AZ. As an outparcel to a 99c Store Anchored
Projected Annual Growth 2013-2018
1.30%
1.29%
1.44%
Shopping Center, this location enjoys high visibility along the main retail corridor
HOUSEHOLDS
1-MILE
3-MILE
5-MILE
servicing this suburb of Phoenix. El Pollo Loco restaurant is strategically located
Estimated Households (2013)
7,241
57,314
143,680
near the campus of Arizona State University and Mesa Financial Plaza, generating
both large numbers of daytime and evening traffic. This dense residential community
Projected Households (2018)
7,429
58,917
147,873
Historical Annual Growth 2000-2010
-6.26%
-5.99%
-0.53%
Projected Annual Growth 2013-2018
2.59%
2.80%
2.92%
provides strong retail demand along with surrounding National Tenants such as; Target,
INCOME
1-MILE
3-MILE
5-MILE
Wal-Mart, Dick’s Sporting Goods, Petsmart, Ross, 99c Store, Home Depot, BigLots,
Avg. Household Income (2013)
$37,632
$45,773
$52,583
Costco, Family Dollar, Denny’s, Goodwill, Sizzler, Pizza Hut and many more. The
Median Household Income (2013)
$31,266
$35,086
$40,527
demographics offer both upscale and working class families, with neighboring Dobson
Ranch Golf Resort. Mesa, located in Maricopa County, is one of the nation’s fastest-
DAYTIME DEMOS
1-MILE
3-MILE
5-MILE
Total # of Businesses (2012)
1,011
6,917
14,355
growing cities, the third-largest city in Arizona and the nation’s 38th-largest city. The
Total # of Employees (2012)
10,570
82,928
156,650
Employee Pop. per Business
10.45
11.98
10.91
City provides the advantages of a thriving metropolis while maintaining the feel of a
Residential Pop. per Business
20.72
22.20
25.97
area profile
The greater Phoenix region is a dynamic, vibrant, growing area that offers businesses and residents
prosperity and an enriching quality of life Mesa, located in Maricopa County, is one of the nation’s fastestgrowing cities. Mesa is the third-largest city in Arizona and the nation’s 38th-largest city. The City provides
the advantages of a thriving metropolis while maintaining the feel of a suburban environment.
Just 15 miles east of Phoenix, Mesa covers 132 square miles. With
dynamic recreational, educational and business environments, Mesa
enjoys the best in a variety of amenities including parks within easy
walking distance from home, a variety of sports facilities that cater to athletes young and old, highly rated golf
courses for every skill level, a diversity of special events and community festivals, and Mesa’s ever-popular
Chicago Cubs Spring Training baseball.
Mesa is home to an impressive array of top-rated educational institutions and collaborative partnerships that
focus on producing a workforce that is not only technologically prepared,
but also possesses a strong work ethic. Included are the following: Arizona
State University Polytechnic; Northern Arizona University; Arizona School
of Health Sciences; Mesa Community College; Chandler-Gilbert Community
College; DeVry Institute of Technology; East Valley Institute of Technology;
Keller Graduate School of Management; UND Aerospace and the
University of Phoenix.
regional map
confidentiality agreement
This Offering Memorandum contains select information pertaining to the business and affairs of El Pollo Loco, Mesa, AZ It has been prepared by Colliers International. This
Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum
is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any
other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial
information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the
accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers
should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum from Colliers, you agree:
1. The Offering Memorandum and its contents are confidential;
2. You will hold it and treat it in the strictest of confidence; and
3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the
interest of the Seller.
Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to
terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the
purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of El Pollo Loco, Mesa, AZ or in the future you discontinue such negotiations, then you agree to purge all
materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale
of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective
purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees,
or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs
of the Property since the date this Offering Memorandum.
For More Information, contact:
Eric Carlton
Senior Advisor
949.724.5561
[email protected]
Jereme Snyder
Executive Vice President
949.724.5552
[email protected]
John Sharpe
Investments
949.724.5546
[email protected]
Colliers NNN Group
3 Park Plaza Ste. 1200
Irvine, CA 92614
www.colliersnnn.com

offering memorandum 1036 s. country club dr., Mesa, aZ 85210

Transcription

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