Jiffy lube –CORPORATE ABSOLUTE NNN LEASE

REPRESENTATIVE PHOTO
EXCLUSIVE OFFERING | $1,445,000 / 5.85% CAP
Jiffy lube – CORPORATE ABSOLUTE NNN LEASE
902 Ferris Ave, Waxahachie, TX
214.915.8890
JOE CAPUTO
[email protected]
BOB MOORHEAD
[email protected]
RUSSELL SMITH
[email protected]
Property. 3,553+ SF building on 0.36+ acres.
Tenant. Jiffy Lube, 2,000+ businesses in North America offering oil changes and other automotive services.
Lease structure. Brand new, 20-year, corporate absolute NNN lease with 10% rent increases every 5-years in primary term & options.
Location. Jiffy Lube is strategically located along U.S. 77 (26,835 VPD), just south of U.S. 77’s intersection with U.S. 287 (47,620 VPD). U.S. 77 is
Waxahachie’s central retail corridor, with numerous national credit tenants located in a variety of shopping centers along the entirety of its length. The site is
surrounded by retailers such as AutoZone, Sherwin Williams, Comerica, Church’s Chicken, CVS and is directly east of Waxahachie Global High School. Major
credit tenants within 1-mile of the site include Walmart, Lowe’s, Home Depot, Best Buy, Belk, Discount Tire, Petsmart, Starbucks, Chick-fil-a, and countless others.
Waxahachie is located 30-miles south of downtown Dallas, TX. The 2015 estimated population within 1-mile of the site is 10,403 people.
Table of contents
Jiffy lube
902 Ferris Ave, Waxahachie, TX
PAGE 1:
COVER
PAGE 2:
TABLE OF CONTENTS
PAGE 3:
INVESTMENT OVERVIEW
PAGE 4-5:
AERIAL PHOTOS
PAGE 6:
SITE PLAN
PAGE 7:
LOCATION OVERVIEW
PAGE 8-9:
LOCATION MAPS
PAGE 10:
DEMOGRAPHICS
Subject Property (Pre Conversion)
Disclaimer
Trivanta. (“Agent”) has been engaged as an agent for the sale of the property located at
902 Ferris Ave, Waxahachie, TX by the owner of the Property (“Seller”). The Property is
being offered for sale in an “as-is, where-is” condition and Seller and Agent make no
representations or warranties as to the accuracy of the information contained in this
Offering Memorandum. The enclosed materials include highly confidential information and
are being furnished solely for the purpose of review by prospective purchasers of the
interest described herein. The enclosed materials are being provided solely to facilitate the
prospective investor’s own due diligence for which it shall be fully and solely responsible.
The material contained herein is based on information and sources deemed to be reliable,
but no representation or warranty, express or implied, is being made by Agent or Seller or
any of their respective representatives, affiliates, officers, employees, shareholders,
partners and directors, as to the accuracy or completeness of the information contained
herein. Summaries contained herein of any legal or other documents are not intended to be
comprehensive statements of the terms of such documents, but rather only outlines of
some of the principal provisions contained therein. Neither the Agent nor the Seller shall
have any liability whatsoever for the accuracy or completeness of the information contained
herein or any other written or oral communication or information transmitted or made
available or any action taken or decision made by the recipient with respect to the Property.
Interested parties are to make their own investigations, projections and conclusions without
reliance upon the material contained herein. Seller reserves the right, at its sole and
absolute discretion, to withdraw the Property from being marketed for sale at any time and
for any reason. Seller and Agent each expressly reserves the right, at their sole and
absolute discretion, to reject any and all expressions of interest or offers regarding the
Property and/or to terminate discussions with any entity at any time, with or without notice.
This offering is made subject to omissions, correction of errors, change of price or other
terms, prior sale or withdrawal from the market without notice. Agent is not authorized to
make any representations or agreements on behalf of Seller. Seller shall have no legal
commitment or obligation to any interested party reviewing the enclosed materials,
performing additional investigation and/or making an offer to purchase the Property unless
and until a binding written agreement for the purchase of the Property has been fully
executed, delivered, and approved by Seller and any conditions to Seller’s obligations
hereunder have been satisfied or waived. By taking possession of and reviewing the
information contained herein, the recipient agrees that (a) the enclosed materials and their
contents are of a highly confidential nature and will be held and treated in the strictest
confidence and shall be returned to Agent or Seller promptly upon request; and (b) the
recipient shall not contact employees or tenants of the Property directly or indirectly
regarding any aspect of the enclosed materials or the Property without the prior written
approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied
or otherwise reproduced without the prior written authorization of Seller and Agent.
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Investment overview
Jiffy lube
902 Ferris Ave, Waxahachie, TX
Lease overview
PRICE:
$1,445,000
CAP RATE:
Lease Term:
20 Years with 4, 5-year options to extend
5.85%
Projected Rent Commencement:
June 2015
NET OPERATING INCOME:
$84,503
Projected Lease Expiration:
June 2035
BUILDING AREA:
3,553+ Square Feet
Lease Type:
Absolute NNN
LAND AREA:
0.36+ Acres
Rent Increases:
10% Every 5 Years In Primary Term & Options
YEAR REMODELED:
2015
Annual Rent Yrs 1-5:
$84,503
Option 1 | Yrs 21-25:
$123,720
LANDLORD RESPONSIBILITY:
None
Annual Rent Yrs 6-10:
$92,953
Option 2 | Yrs 26-30:
$136,092
Annual Rent Yrs 11-15: $102,248
Option 3 | Yrs 31-35:
$149,702
OWNERSHIP:
Fee Simple Interest
Annual Rent Yrs 16-20: $112,473
Option 4 | Yrs 36-40:
$164,672
ROFR to Purchase:
Tenant overview
JIFFY LUBE INTERNATIONAL, INC., a Delaware Corporation
Yes
Rent is based on a formula that includes a % of total improvement costs and will be adjusted accordingly
upon building completion. Annual Rent shown above are estimates. Consequently, the Purchase Price
may change but the agreed upon CAP rate will not.
Jiffy Lube | http://www.jiffylube.com
Jiffy Lube is a chain of over 2,000 businesses in North America offering oil changes and other automotive services. The company is based in Houston, Texas, and
is a subsidiary of Shell Oil. Jiffy Lube consists of more than 2,000 franchised service centers throughout North America and Canada, serving approximately 24
million customers each year. Jiffy Lube service centers are 100% franchise-owned, independently owned and operated by 252 entity groups. The company was
ranked first on National Oil and Lube News 2011 Tops in the Fast Lubes Industry Rankings. Also, Jiffy Lube was ranked number 15 in Entrepreneur Magazine’s
2012 Franchise 500 and number 73 on Franchise Times 2011 Top 200 Franchise Chains by Worldwide Sales.
The first Jiffy Lube store was established on 36th Street in Ogden, Utah by Edwin H. Washburn as early as 1971. Over the following years, Washburn franchised a
number of Jiffy Lube centers in within Utah. In 1979, then-football coach at Western Maryland College W. James Hindman bought out Washburn's seven
franchises and established Jiffy Lube International, relocating to Baltimore, Maryland. It is this year which Jiffy Lube generally states as its founding date with
Hindman as its founder. Jiffy Lube went public in 1987, and had opened 1,020 franchises and company stores by 1989. At this point, Jiffy Lube posted a $39
million loss on $350 million in sales and declared bankruptcy. This is the equivalent of $72.2 million and $648 million respectively in present day terms. In 1991,
Jiffy Lube became a subsidiary of Pennzoil. Following the merger of Pennzoil and Quaker State in 1998, the 581 Q Lube stores were merged into the Jiffy Lube
brand, then possessing 1,541 stores, with overlapping operations being closed down. Pennzoil-Quaker State was ultimately purchased by Shell Oil in 2002.
The core offering of Jiffy Lube remains the Jiffy Lube Signature Service® Oil Change, a service that offers customers more than just a standard oil and filter
change. In June 2011, Jiffy Lube introduced a new program called Oil Change Schedule (OCS). The new program allows Jiffy Lube customers to choose how
often they have their oil changed based on a number of variables including vehicle manufacturer recommendations, driving habits, and road conditions. The OCS
program moves away from the old model of changing oil every 3,000 miles and provides a schedule that is unique for each driver.
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Aerial photo
Jiffy lube
902 Ferris Ave, Waxahachie, TX
4
Aerial photo
Jiffy lube
902 Ferris Ave, Waxahachie, TX
Waxahachie
Global High
School
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Aerial photo
Jiffy lube
902 Ferris Ave, Waxahachie, TX
6
Location overview
Jiffy lube
902 Ferris Ave, Waxahachie, TX
IMMEDIATE TRADE AREA
DALLAS – FT. WORTH - ARLINGTON MSA
Jiffy Lube is strategically located along U.S. 77 (26,835 VPD), just south of
U.S. 77’s intersection with U.S. 287 (47,620 VPD). U.S. 77 is Waxahachie’s
central retail corridor, with numerous national credit tenants located in a variety
of shopping centers along the entirety of its length. The site is surrounded by
retailers such as AutoZone, Sherwin Williams, Comerica, Church’s Chicken,
CVS and is directly east of Waxahachie Global High School. Major credit
tenants within 1-mile of the site include Walmart, Lowe’s, Home Depot, Best
Buy, Belk, Discount Tire, Petsmart, Starbucks, Chick-fil-a, and countless
others.
The Dallas–Fort Worth–Arlington Metropolitan Statistical Area (MSA)
encompasses 12 counties within the U.S. state of Texas. It is the economic and
cultural hub of the region commonly called North Texas or the Metroplex and is
the largest land-locked metropolitan area in the United States.
WAXAHACHIE / ELLIS COUNTY, TX
Waxahachie is the county seat of Ellis County, TX with a population of 29,621
located approximately 30 miles south of Dallas and 42 miles southeast of Fort
Worth. The city is growing with an average annual population growth rate of
3.7% and $34 million of commercial development and $20 million of residential
development is 2010 alone. The city is conveniently located at the intersection
of I-35 and US Highway 287 providing easy access to both Dallas and Fort
Worth. Most of the city’s retail is based along US Highway 77 running north to
south parallel to I-35.
Waxahachie maintains its own independent school district, Waxahachie ISD,
which has thirteen campuses and has been identified as a rapidly growing
district, with multiple campuses currently under construction. Waxahachie is
also home to a campus of two-year public college Navarro College and fouryear university Southwestern Assemblies of God University which has over
2,000 students enrolled. Waxahachie has a vibrant and diverse downtown
shopping district that includes many local boutiques, clothing shops, a
bookstore, antique dealers, and eateries. Around the rest of town are many
national chain retailers including Best Buy, JC Penney, Lowe’s, Office Depot,
and Wal-Mart among many others.
Ellis County is a southern county in the Dallas/Fort Worth Metroplex. Its
population has grown by at least 30% every decade since 1990. Other cities in
Ellis County include Midlothian, Ennis, Red Oak, and Ferris
The official 2011 U.S. Census estimate has the Dallas-Fort Worth Metroplex at
6,526,548. During the 12-month period from July 2008 to July 2009, the DallasFort Worth-Arlington metropolitan area gained 146,530 new residents, more
than any other metropolitan area in the United States. The area's population
has grown by about 1 million since the last census was administered in 2000.
The Dallas–Fort Worth–Arlington MSA is, by population, the largest
metropolitan area in Texas, the largest in the South, the 4th largest in the
United States, and the 10th largest in the Americas. The metropolitan area has
the 6th largest gross metropolitan product (GMP) in the United States, and
approximately 10th largest by GMP in the world.
The Metroplex has one of the highest concentrations of corporate headquarters
in the United States. 20 Fortune 500 companies are headquartered in the area.
The city of Dallas alone has the 3rd largest concentration of Fortune 500
headquarters in the country. The Metroplex also contains the largest
Information Technology industry base in the state (often referred to as Silicon
Prairie or the Telecom Corridor), due to the large number of corporate IT
projects and the presence of numerous electronics, computing and
telecommunication firms. The Telecom Corridor located just north of Dallas in
Richardson is home to more than 5,700 companies including Texas
Instruments which employs over 10,000 people at its headquarters. HP
Enterprises Services, Dell Services, i2, AT&T, Ericsson, CA and Verizon also
have headquarters or major operations in and around Dallas. The Texas
farming and ranching industry, based in Fort Worth adds to the economic
diversification of the area. Several major defense manufacturers, including
Lockheed Martin, Bell Helicopter Textron, and Raytheon, maintain significant
operations in the Metroplex. ExxonMobil, the #1 corporation on the Fortune 500
listings, is headquartered in Irving, Texas.
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Location map
Jiffy lube
902 Ferris Ave, Waxahachie, TX
8
Location map
Jiffy lube
902 Ferris Ave, Waxahachie, TX
9
Demographics
Jiffy lube
902 Ferris Ave, Waxahachie, TX
902 Ferris Ave
902 Ferris Ave
1 mi radius 3 mi radius 5 mi radius
2010 Census Population
9,846
26,258
33,914
2000 Census Population
Projected Annual Growth 2015 to 2020
9,278
1.6%
20,474
1.5%
24,889
1.4%
Historical Annual Growth 2000 to 2015
0.8%
2.6%
3.2%
2015 Estimated Households
3,825
10,438
13,217
2020 Projected Households
2010 Census Households
4,153
3,483
11,280
9,379
14,256
11,884
2000 Census Households
3,238
7,074
8,483
Projected Annual Growth 2015 to 2020
Historical Annual Growth 2000 to 2015
1.7%
1.2%
1.6%
3.2%
1.6%
3.7%
2015 Est. Population Under 10 Years
14.1%
14.5%
14.3%
2015 Est. Population 10 to 19 Years
13.9%
13.8%
14.1%
2015 Est. Population 20 to 29 Years
2015 Est. Population 30 to 44 Years
18.3%
16.8%
17.8%
17.8%
16.4%
18.2%
2015 Est. Population 45 to 59 Years
16.7%
16.8%
17.9%
2015 Est. Population 60 to 74 Years
2015 Est. Population 75 Years or Over
13.4%
6.9%
12.9%
6.3%
13.2%
5.9%
32.7
32.5
33.5
2015 Est. Male Population
2015 Est. Female Population
48.2%
51.8%
48.1%
51.9%
48.8%
51.2%
2015 Est. Never Married
28.3%
28.4%
26.5%
2015 Est. Now Married
47.9%
48.3%
51.6%
MARITAL STATUS
& GENDER
INCOME
2015 Est. Separated or Divorced
2015 Est. Widowed
16.4%
7.4%
16.8%
6.5%
16.0%
5.9%
2015 Est. HH Income $200,000 or More
2.1%
1.4%
2.3%
2015 Est. HH Income $150,000 to $199,999
2.6%
2.3%
3.0%
2015 Est. HH Income $100,000 to $149,999
2015 Est. HH Income $75,000 to $99,999
11.6%
14.7%
13.8%
14.3%
14.6%
14.6%
2015 Est. HH Income $50,000 to $74,999
2015 Est. HH Income $35,000 to $49,999
22.8%
11.8%
21.8%
12.7%
22.3%
12.0%
2015 Est. HH Income $25,000 to $34,999
10.7%
10.8%
10.3%
2015 Est. HH Income $15,000 to $24,999
2015 Est. HH Income Under $15,000
12.5%
11.3%
11.4%
11.5%
10.4%
10.4%
2015 Est. Average Household Income
$65,105
$63,755
$67,921
2015 Est. Median Household Income
2015 Est. Per Capita Income
$52,984
$24,282
$54,504
$23,746
$58,002
$24,751
LABOR FORCE
36,652
39,232
OCCUPATION
28,334
30,392
TRANSPORTATION
TO WORK
10,403
11,219
TRAVEL TIME
2015 Estimated Population
2020 Projected Population
2015 Est. Median Age
1 mi radius 3 mi radius 5 mi radius
Waxahachie, TX 75165
CONSUMER EXPENDITURE
AGE
HOUSEHOLDS
POPULATION
Waxahachie, TX 75165
2015 Est. Labor Population Age 16 Years or Over
2015 Est. Civilian Employed
2015 Est. Civilian Unemployed
61.8%
8,167
22,034
63.8%
28,468
64.4%
2.9%
2.9%
2.9%
2015 Est. in Armed Forces
2015 Est. not in Labor Force
35.3%
33.3%
32.7%
2015 Labor Force Males
2015 Labor Force Females
47.5%
52.5%
47.3%
52.7%
48.0%
52.0%
2010 Occupation: Population Age 16 Years or Over
4,291
11,764
15,459
2010 Mgmt, Business, & Financial Operations
13.9%
12.8%
14.4%
2010 Professional, Related
2010 Service
19.1%
20.7%
20.0%
19.4%
19.3%
17.9%
2010 Sales, Office
24.7%
25.3%
25.2%
2010 Farming, Fishing, Forestry
2010 Construction, Extraction, Maintenance
1.4%
7.8%
0.6%
8.9%
0.6%
10.0%
2010 Production, Transport, Material Moving
12.4%
12.9%
12.6%
2010 White Collar Workers
2010 Blue Collar Workers
57.7%
42.3%
58.1%
41.9%
58.9%
41.1%
2010 Drive to Work Alone
79.9%
83.3%
83.8%
2010 Drive to Work in Carpool
11.2%
10.0%
9.7%
2010 Travel to Work by Public Transportation
2010 Drive to Work on Motorcycle
0.3%
0.5%
0.3%
0.5%
0.3%
0.5%
2010 Walk or Bicycle to Work
2010 Other Means
3.6%
-
2.2%
0.2%
1.7%
0.2%
2010 Work at Home
4.4%
3.6%
3.8%
2010 Travel to Work in 14 Minutes or Less
52.7%
43.4%
40.0%
2010 Travel to Work in 15 to 29 Minutes
2010 Travel to Work in 30 to 59 Minutes
23.9%
15.9%
24.7%
22.7%
25.1%
25.5%
2010 Travel to Work in 60 Minutes or More
7.6%
9.2%
9.4%
2010 Average Travel Time to Work
14.1
18.2
19.7
2015 Est. Total Household Expenditure
2015 Est. Apparel
$200 M
$6.95 M
$538 M
$18.7 M
$711 M
$24.7 M
2015 Est. Contributions, Gifts
$12.5 M
$33.3 M
$45.2 M
2015 Est. Education, Reading
$7.17 M
$19.3 M
$26.0 M
2015 Est. Entertainment
$11.1 M
$29.9 M
$39.7 M
2015 Est. Food, Beverages, Tobacco
$31.3 M
$84.2 M
$111 M
2015 Est. Furnishings, Equipment
2015 Est. Health Care, Insurance
$6.72 M
$17.9 M
$18.1 M
$48.1 M
$24.1 M
$63.0 M
2015 Est. Household Operations, Shelter, Utilities
2015 Est. Miscellaneous Expenses
$61.9 M
$3.01 M
$166 M
$8.13 M
$220 M
$10.7 M
2015 Est. Total Businesses
566
1,320
1,536
2015 Est. Personal Care
$2.61 M
$7.01 M
$9.26 M
2015 Est. Total Employees
5,104
14,033
15,967
2015 Est. Transportation
$38.7 M
$104 M
$138 M
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