Jiffy Lube Mesa, AZ

offering memorandum.
Jiffy Lube
Mesa, AZ
S COUNTRY CLUB DR (AADT: 48,800)
S EXTENSION RD (AADT: 11,700)
SUPERSTITION FWY (AADT: 228,400)
American
Refridgeration
Supplies
Tierra Del Sol
Apartments
W IRON AVE
Juvenile Community
Center
Empire Industrial Center
Empire
South West
W JUANITA AVE
Office Space
Multi-Family
Residentialv
Hand In Hand
Child Care
Southwest Ambulance
Baseline
Pavilion
W BASELINE RD
W BASELINE RD (AADT: 25, 800)
S E
XTE
NS
ION
RD
••
••
••
25-Year NNN Lease with 11 Years
Remaining
10% Rental Increase in 2015
Excellent Traffic Counts: 37,500 Average
Weekday Volume at Intersection
This property is listed in conjunction with Arizona-licensed
Retail Advisors S.W. (James Mitchell, designated broker).
S COUNTRY CLUB DR
Actual Site
$1,044,000
8.00% Return
8.80% Return Beginning in Year 2
9.68% Return Beginning in Year 6
Odyssey
Professional Park
••
••
N FIESTA BLVD
Best Friends Animal
Hospital
Surrounded by High-Density Commercial
and Residential
Franchisee Operates Approximately 70
Other Jiffy Lube Locations
www.maffiateam.com
Confidentiality & Disclosure
Cornish & Carey Commercial Newmark Knight Frank (“Broker”) has been retained on an exclusive basis to market the property
described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title
and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to
purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase
based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and
such other matters as the Seller deems appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of
the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the
express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that
a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and
has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners,
shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own
investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections
contained in the pro forma.
Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to
accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed
to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
Michael Maffia
Senior Managing Director
415.445.5144
[email protected]
Lic #01340853
Putnam Daily
VP/Transaction Manager
415.445.5107
[email protected]
Lic #01750064
901 Mariners Island Blvd, Suite 120 • San Mateo, CA 94404 • Tel 415.373.4060 • Fax 415.373.4060 • www.maffiateam.com
Table of Contents
•Property Information........................................................................................................................1
•Tenant Information.......................................................................................................................... 2
•About the Area................................................................................................................................ 3
•Site Plan......................................................................................................................................... 4
•Aerials............................................................................................................................................ 5
•Location Maps................................................................................................................................ 8
•Demographics............................................................................................................................... 11
Property Information
Location
The property is located at 828 West Baseline Road in Mesa, Arizona.
Lot Size
Approximately 0.27474 acres, or 11,968 square feet.
Improvements
Construction was completed in 1982 of a 1,589 square foot quick oil change facility for Jiffy Lube. There are three drive-thru
service bays.
Lease
Leased to A.G.A. Inc., dba Jiffy Lube, and personally guaranteed by Robert Bove, for 25 years from January 26, 1999, to
February 28, 2024. Pursuant to a lease amendment, the current annual net rent of $62,523 will increase to $83,523 on
March 1, 2014; and increase by 10% on February 1, 2015, and on February 1, 2019. There are two five-year options to renew
the lease, each with a 10% increase in the rent. The lease is triple net, with the tenant responsible for taxes, insurance,
and all maintenance, including roof and structure.
Net Operating
Income
Period
01/15/99 - 02/29/12
03/01/12 - 02/28/14
03/01/14 - 01/31/15
02/01/15 - 01/31/19
02/01/19 - 01/31/24
02/01/24 - 01/31/29
(Option 1)
02/01/29 - 01/31/34
(Option 2)
Price
$1,044,000 (8.00% Return)
Annual Rent
n/a
$62,523
$83,523
$91,872
$101,059
$111,165
$122,282
Return
n/a
n/a
8.00%
8.80%
9.68%
10.65%
11.71%
The price is calculated by capitalizing the annual rent effective as of February 1, 2014. The seller will credit any difference
in the rent at close of escrow.
Financing
The property will be delivered free and clear of permanent financing.
1
Tenant Information
Jiffy Lube International, Inc. (JLI), with more than 2,000 franchised service centers in North America, and Jiffy Lube®
franchisees serve approximately 22 million customers each year. Headquartered in Houston, Texas, JLI is a wholly
owned, indirect subsidiary of Shell Oil Company. Jiffy Lube® service centers are 100% franchise-owned - independently
owned and operated by more than 250 entity groups.
Jiffy Lube® is the largest system of franchised service centers in North America and is consistently ranked as one of the
top franchising opportunities for entrepreneurs:
••••
••
In 2012, Jiffy Lube ranked #15 overall in Entrepreneur Magazine’s Franchise 500 and #1 in our category
In 2011, Forbes Magazine declared Jiffy Lube #13 on its list of “Top 20 Franchises to Start”
For the 20th year in a row, Jiffy Lube secured the top spot in National Oil & Lube News’ annual TOPS in the Fast Lube
Industry Ranking
This location is owned and operated by franchisee and lessor A.G.A. Inc., a subsidiary of Bove Enterprises, which operates approximately 70 Jiffy Lube® locations in the Phoenix metro area. Guarantor Robert Bove is the President of Bove
Enterprises.
2
About the Area
Site
Information
The property is located on an outparcel to Baseline Pavilion and adjacent to 7-Eleven. The combined average weekday
traffic volume at the intersection of Extension Road and Baseline Road is 37,500 (City of Mesa, 2012). Baseline Pavilion
is a strip center tenanted by local tenants including a Chinese restaurant, a chiropractor, a home healthcare provider, a
beauty supply store, and a massage therapist. Jiffy Lube is within close proximity of Fry’s Food Stores, Costco, two Walgreens, and just a mile from the Fiesta Mall, a 926,325 square foot regional shopping center anchored by Macy’s, Best
Buy, Sears, Dillard’s Clearance Center, and Dick’s Sporting Goods. A large facility for Southwest Ambulance is located
half a block east of the property.
Located in the heart of the Dobson Ranch area of Mesa, Jiffy Lube is ideally surrounded by a mixture of single-family residential, condominiums, and townhouses along with several schools, churches, a municipal complex, a police substation,
a fire station, and a branch of the city library. Dobson Ranch is adjacent to two busy freeways (Superstition Freeway / Highway 60 going east-west and Price Freeway / Highway 101 going north-south) for direct routes to neighboring cities. Nearby
employers include Banner Desert Medical Center, Boeing, Intel, Mesa Community College, and Arizona State University.
General
Overview
Mesa, 15 miles east of Phoenix in Maricopa County, is one of the nation’s fastest-growing cities and the third-largest city in
Arizona. The city is in the East Valley section of the Phoenix Metropolitan Area. As of the 2010 U.S. Census, Mesa became
Arizona’s center of population and has a population of 439,041. The city is 18 miles from east to west; as a result, the city
is generally broken up into East Mesa and West Mesa, with Center Street dividing the two halves.
In addition to Fiesta Mall, West Mesa is also home to Mesa Riverview, a new outdoor destination retail center. At build-out,
the center will include 1.3 million square feet of retail space, including Bass Pro Shops, Cinemark, Walmart, and The Home
Depot. East Mesa is home to Superstition Springs Center, which features an outdoor amphitheater and fountain which
convert to a stage. Dillard’s, JCPenney, Macy’s, and Sears anchor Superstition Springs Center.
Employers with more than 1,000 employees include Mesa Public Schools (9,500 employees), Banner Health (8,650), Boeing (4,260), City of Mesa (3,442), Walmart (2,503), Mesa Community College (2,201), and Fry’s Food and Drug (1,276).
3
Site Plan
R
GA
BA
S EXTENSION RD
GE
1,589 SQ. FT.
CARPORT
W BASELINE RD
4
Hand In
Hand
Childcare
Baseline
Pavilion
S EXTENSION RD (AADT: 11,700)
Aerial | Close-Up View
W BASELINE RD
W BASELINE RD (AADT: 25,800)
S EXTENSION RD
Best Friends
Animal
Hospital
W JEROME AVE
S REVERE ST
Aerial | North View
Multi-Family
Residential
W JEROME AVE
S EXTENSION RD (AADT: 11,700)
Hand In
Hand
Childcare
Southwest Ambulance
Baseline Pavilion
W BASELINE RD (AADT: 25,800)
S E
XTE
N SION RD
Office Space
Best Friends
Animal
Hospital
Aerial | Top-Down View
American
Refridgeration
Supplies
Tierra Del Sol
Apartments
W IRON AVE
Juvenile Community
Center
S COUNTRY CLUB DR (AADT: 48,800)
S EXTENSION RD (AADT: 11,700)
SUPERSTITION FWY (AADT: 228,400)
Empire Industrial Center
Empire
South West
W JUANITA AVE
Office Space
Multi-Family
Residentialv
Hand In Hand
Child Care
Southwest Ambulance
Baseline
Pavilion
W BASELINE RD
W BASELINE RD (AADT: 25, 800)
S COUNTRY CLUB DR
S E
XTE
NS
ION
RD
Odyssey
Professional Park
N FIESTA BLVD
Best Friends Animal
Hospital
7
Location Map
Site
Location Map
Site
Location Map
Site
Demographics
828 W Baseline Rd
Mesa, AZ 85210
Market Profile
Jiffy Lube
828 W Baseline Rd, Mesa, AZ, 85210
Rings: 1, 3, 5 mile radii
Population Summary
2000 Total Population
2010 Total Population
2012 Total Population
2012 Group Quarters
2017 Total Population
2012-2017 Annual Rate
Household Summary
2000 Households
2000 Average Household Size
2010 Households
2010 Average Household Size
2012 Households
2012 Average Household Size
2017 Households
2017 Average Household Size
2012-2017 Annual Rate
2010 Families
2010 Average Family Size
2012 Families
2012 Average Family Size
2017 Families
2017 Average Family Size
2012-2017 Annual Rate
Housing Unit Summary
2000 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
2010 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
2012 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
2017 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
Median Household Income
2012
2017
Median Home Value
2012
2017
Per Capita Income
2012
2017
Median Age
2010
2012
2017
Latitude: 33.37887
Longitude: -111.8494
1 mile
3 miles
5 miles
15,650
14,298
14,815
57
15,822
1.32%
145,366
138,971
139,988
1,250
143,161
0.45%
414,839
397,434
403,751
2,688
418,211
0.71%
6,096
2.56
5,852
2.43
6,070
2.43
6,487
2.43
1.34%
3,540
3.02
3,628
3.02
3,875
3.04
1.32%
53,439
2.70
52,372
2.63
52,879
2.62
54,239
2.62
0.51%
31,924
3.27
31,865
3.27
32,656
3.28
0.49%
150,939
2.73
150,022
2.63
152,849
2.62
158,861
2.62
0.77%
91,744
3.26
92,276
3.25
95,630
3.26
0.72%
6,581
44.2%
48.4%
7.4%
57,458
51.4%
41.6%
7.0%
160,994
55.1%
38.6%
6.2%
6,609
41.3%
47.3%
11.5%
6,780
39.6%
50.0%
10.5%
7,205
39.7%
50.4%
10.0%
59,114
45.2%
43.4%
11.4%
59,709
42.6%
46.0%
11.4%
61,414
42.5%
45.8%
11.7%
168,620
47.7%
41.2%
11.0%
171,424
45.2%
44.0%
10.8%
178,358
45.3%
43.8%
10.9%
$52,516
$58,253
$47,935
$55,079
$50,617
$56,965
$141,948
$165,009
$124,949
$143,109
$131,243
$151,794
$26,546
$28,731
$22,949
$25,417
$23,945
$26,456
32.5
32.6
33.1
31.3
31.5
32.1
31.2
31.4
32.0
Data Note: Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households.
Persons in families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income represents the income received by
all persons aged 15 years and over divided by the total population.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
11
Market Profile
Demographics
828 W Baseline Rd
Mesa, AZ 85210
Jiffy Lube
828 W Baseline Rd, Mesa, AZ, 85210
Rings: 1, 3, 5 mile radii
Latitude: 33.37887
Longitude: -111.8494
1 mile
3 miles
5 miles
6,070
6.4%
52,879
11.2%
152,849
11.6%
10.3%
12.4%
17.4%
22.7%
14.4%
10.9%
12.0%
17.7%
21.1%
12.2%
9.8%
11.3%
16.5%
21.2%
12.4%
11.4%
3.2%
1.7%
$64,437
10.5%
2.8%
1.6%
$59,837
12.0%
3.2%
1.9%
$62,617
6,487
5.9%
8.2%
54,239
10.5%
8.2%
158,861
10.9%
7.3%
9.4%
14.3%
27.3%
17.6%
8.6%
15.1%
25.8%
15.1%
8.1%
13.8%
25.8%
15.3%
12.1%
3.5%
1.7%
$69,733
11.7%
3.3%
1.7%
$66,159
13.1%
3.7%
2.1%
$69,015
2,682
2.1%
11.5%
25,412
3.7%
26.5%
77,477
3.2%
22.9%
$100,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
43.4%
31.0%
8.2%
39.7%
19.5%
6.3%
38.2%
20.4%
8.4%
$250,000 - $299,999
$300,000 - $399,999
3.0%
0.5%
2.5%
1.3%
3.5%
2.2%
$400,000 - $499,999
$500,000 - $749,999
$750,000 - $999,999
0.1%
0.0%
0.0%
0.3%
0.1%
0.0%
0.6%
0.4%
0.1%
0.0%
$147,695
0.0%
$133,034
0.1%
$144,535
2012 Households by Income
Household Income Base
<$15,000
$15,000
$25,000
$35,000
$50,000
$75,000
-
$24,999
$34,999
$49,999
$74,999
$99,999
$100,000 - $149,999
$150,000 - $199,999
$200,000+
Average Household Income
2017 Households by Income
Household Income Base
<$15,000
$15,000 - $24,999
$25,000
$35,000
$50,000
$75,000
-
$34,999
$49,999
$74,999
$99,999
$100,000 - $149,999
$150,000 - $199,999
$200,000+
Average Household Income
2012 Owner Occupied Housing Units by Value
Total
<$50,000
$50,000 - $99,999
$1,000,000 +
Average Home Value
2017 Owner Occupied Housing Units by Value
Total
2,859
26,091
80,717
<$50,000
$50,000 - $99,999
$100,000 - $149,999
1.0%
6.2%
29.3%
2.5%
19.5%
32.6%
2.0%
16.3%
30.6%
$150,000 - $199,999
$200,000 - $249,999
$250,000 - $299,999
$300,000 - $399,999
$400,000 - $499,999
$500,000 - $749,999
$750,000 - $999,999
$1,000,000 +
Average Home Value
45.0%
12.8%
4.7%
0.8%
0.2%
0.1%
0.0%
0.1%
$166,580
29.7%
9.8%
3.7%
1.7%
0.3%
0.2%
0.1%
0.0%
$149,731
29.7%
12.4%
5.0%
2.7%
0.5%
0.6%
0.1%
0.1%
$161,797
12
Data Note: Income represents the preceding year, expressed in current dollars. Household income includes wage and salary earnings, interest dividends, net rents,
pensions, SSI and welfare payments, child support, and alimony.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
Market Profile
Demographics
828 W Baseline Rd
Mesa, AZ 85210
Jiffy Lube
828 W Baseline Rd, Mesa, AZ, 85210
Rings: 1, 3, 5 mile radii
Latitude: 33.37887
Longitude: -111.8494
1 mile
3 miles
5 miles
14,298
7.3%
138,971
8.1%
397,435
7.6%
5-9
10 - 14
15 - 24
25 - 34
35 - 44
6.0%
6.1%
16.7%
17.7%
12.8%
7.1%
6.7%
16.6%
17.5%
13.6%
7.0%
6.7%
17.5%
17.0%
13.1%
45
55
65
75
85
14.6%
12.0%
4.5%
1.7%
0.6%
13.1%
9.7%
4.5%
2.2%
1.1%
13.2%
9.6%
4.7%
2.5%
1.1%
76.9%
74.1%
74.6%
14,814
7.3%
139,989
8.0%
403,750
7.6%
5-9
10 - 14
15 - 24
25 - 34
35 - 44
6.0%
6.0%
16.5%
17.9%
12.4%
7.0%
6.6%
16.4%
17.7%
13.1%
6.9%
6.6%
17.4%
17.2%
12.7%
45
55
65
75
85
14.1%
12.6%
4.9%
1.7%
0.6%
12.7%
10.2%
4.9%
2.2%
1.2%
12.8%
10.1%
5.1%
2.5%
1.2%
77.2%
74.6%
75.1%
2010 Population by Age
Total
0-4
- 54
- 64
- 74
- 84
+
18 +
2012 Population by Age
Total
0-4
- 54
- 64
- 74
- 84
+
18 +
2017 Population by Age
Total
15,823
143,160
418,212
0-4
5-9
10 - 14
7.4%
6.0%
6.1%
8.1%
7.0%
6.6%
7.5%
6.8%
6.6%
15 - 24
25 - 34
15.4%
18.2%
15.4%
17.9%
16.4%
17.4%
35 - 44
45 - 54
55 - 64
12.1%
13.1%
13.3%
12.9%
11.8%
10.8%
12.4%
11.8%
10.6%
65 - 74
75 - 84
85 +
18 +
6.0%
1.8%
0.7%
77.3%
6.0%
2.4%
1.3%
74.7%
6.3%
2.8%
1.3%
75.3%
7,123
7,175
69,998
68,973
199,516
197,918
7,393
7,421
70,609
69,379
203,059
200,692
7,901
7,921
72,095
71,066
210,093
208,118
2010 Population by Sex
Males
Females
2012 Population by Sex
Males
Females
2017 Population by Sex
Males
Females
13
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
Market Profile
Demographics
828 W Baseline Rd
Mesa, AZ 85210
Jiffy Lube
828 W Baseline Rd, Mesa, AZ, 85210
Rings: 1, 3, 5 mile radii
2010 Population by Race/Ethnicity
Total
White Alone
Black Alone
American Indian Alone
Asian Alone
Pacific Islander Alone
Some Other Race Alone
Two or More Races
Hispanic Origin
Diversity Index
2012 Population by Race/Ethnicity
Total
White Alone
Black Alone
American Indian Alone
Asian Alone
Pacific Islander Alone
Some Other Race Alone
Two or More Races
Hispanic Origin
Diversity Index
2017 Population by Race/Ethnicity
Total
White Alone
Black Alone
American Indian Alone
Asian Alone
Pacific Islander Alone
Some Other Race Alone
Two or More Races
Hispanic Origin
Diversity Index
2010 Population by Relationship and Household Type
Total
In Households
In Family Households
Householder
Spouse
Child
Other relative
Nonrelative
In Nonfamily Households
In Group Quarters
Institutionalized Population
Noninstitutionalized Population
Latitude: 33.37887
Longitude: -111.8494
1 mile
3 miles
5 miles
14,298
73.9%
138,970
67.8%
397,434
71.1%
4.9%
3.1%
3.3%
0.6%
10.5%
4.8%
3.4%
3.1%
0.6%
16.3%
4.5%
2.9%
3.5%
0.4%
13.7%
3.7%
23.7%
64.9
4.1%
35.7%
74.9
3.9%
31.6%
71.0
14,815
72.9%
139,988
66.8%
403,751
70.2%
5.0%
3.3%
3.4%
0.6%
10.9%
4.9%
3.6%
3.2%
0.6%
16.7%
4.6%
3.0%
3.6%
0.5%
14.0%
3.8%
24.6%
66.2
4.2%
36.5%
75.8
4.0%
32.3%
72.0
15,822
70.4%
143,160
64.6%
418,211
68.0%
5.4%
3.8%
3.7%
0.6%
11.8%
5.2%
4.0%
3.6%
0.6%
17.5%
4.9%
3.4%
4.0%
0.5%
14.8%
4.2%
26.8%
69.5
4.6%
38.5%
77.8
4.4%
34.4%
74.4
14,298
99.6%
138,971
99.1%
397,434
99.3%
78.1%
24.8%
79.0%
23.0%
78.6%
23.1%
16.1%
29.3%
4.7%
14.7%
31.7%
5.8%
15.3%
31.6%
5.2%
3.2%
21.5%
0.4%
0.1%
0.3%
3.8%
20.1%
0.9%
0.2%
0.7%
3.4%
20.7%
0.7%
0.2%
0.5%
Data Note: Persons of Hispanic Origin may be of any race. The Diversity Index measures the probability that two people from the same area will be from different
race/ethnic groups.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
14