AUTOZONE GROUND LEASE Freddy’s Frozen Custard · ece te ety arcus illic Rel Estte Ivestet Sevices...

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

AUTOZONE GROUND LEASE4836 CHAMBERS RDDENVER, CO 80239

Offering Memorandum

AERIAL PHOTO AUTOZONE GROUND LEASE

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 Z0070126


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GREENWOODELEMENTARY SCHOOL

CHAMBERS RD3 1 , 9 4 5 C P D

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AUTOZONE GROUND LEASE



Starbucks

VILLAGE HOMES DEVELOPMENT700 UNITS UNDER CONSTRUCTION

760+ LUXURYAPARTMENT HOMES

GREEN VALLEY RANCH BLVD14 ,760 CPD

I - 7 0 F W Y117,000 CPD





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AUTOZONE GROUND LEASE4836 Chambers RdDenver, CO 80239

FINANCIAL SUMMARY

Price $1,668,000

Down Payment 100% $1,668,000

Cap Rate 4.50%

Building SF +/- 7,000 SF

Net Cash Flow 4.50% $75,000

Year Built 2017

Lot Size .93 Acres

LEASE SUMMARY

Lease Type Absolute Triple-Net (NNN) Ground Lease

Tenant AutoZone Parts, Inc.

Guarantor AutoZone, Inc.

Lease Commencement Date November 1, 2017

Lease Expiration Date October 28, 2032

Lease Term Remaining 14 Years

Rental Increases No Increases in Initial Term

Renewal Options 4, 5 Year Options

BASE RENT $75,000

Net Operating Income $75,000

Total Return 4.50% $75,000

ANNUALIZED OPERATING DATA

LEASE YEARS ANNUAL RENT CAP RATE

Current - 10/28/2032 $75,000.00 4.50%

OPTION YEARS ANNUAL RENT CAP RATE

Option 1 $78,756.00 4.72%

Option 2 $82,692.00 4.96%

Option 3 $86,820.00 5.21%

Option 4 $138,327.45 8.29%

EXECUTIVE SUMMARY




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TENANT OVERVIEW

AutoZone is the nation’s leading retailer and a leading dis-tributor of automotive replacement parts and accessories with more than 5,000 stores in US, Puerto Rico, Mexico, and Bra-zil. Each store carries an extensive line for cars, sport utility vehicles, vans and light trucks, including new and remanu-factured hard parts, maintenance items and accessories. Au-toZone also sells automotive diagnostic and repair software through ALLDATA, diagnostic and repair information through alldatadiy.com, and auto and light truck parts and accessories through their website. For more than 30 years, AutoZone has been committed to providing the best parts, prices and cus-tomer service in the automotive aftermarket industry. Since opening its first store in Forrest City, Ark. on July 4, 1979, the company has joined the New York Stock Exchange (NYSE: AZO) and earned a spot in the Fortune 500.

Tenant CorporateOwnership PublicHeadquartered Memphis, TNStock Symbol NYSE: AZOLocations 5,000+Employees ~65,000Website www.autozone.com

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Starbucks

LOCATION OVERVIEWINVESTMENT HIGHLIGHTSDenver, the capital of Colorado, is an American metropolis dating back to the Old West era. Nicknamed the Mile High City, Denver’s elevation is exactly one mile above sea level, making it the highest major city in the United States. It is the 19th most populous U.S. city, and has experienced rapid growth.

Downtown Denver is home to art, retail, restaurants, and more. Larimer Square, located in historic Lower Downtown (Lodo), houses Victorian buildings turned restaurants, galleries, shops, and coffee houses. The city also features a light rail, connecting the various neighborhoods of Denver as well as the Denver International Airport.

Many peope are attracted to the Mile High City because of the abundance of outdoor sports and recreational activities. Sports fan can catch a Denver Broncos game at the Sports Authority Field at Mile High or a Colorado Rockies game at Coors Field. Visitors and residents alike enjoy the city parks, bike trails, and ski resorts.

Denver’s economy is expanding, with the annual change in the metro’s gross metropolitan product (GMP) expected to reach 3.8 percent this year. Retail sales rose an estimated 4.4 percent last year, above the national average growth. The area benefits from its position as a regional business and government hub. The state capitol is located in Denver, and the metro is home to nine Fortune 500 firms.

Key drivers of the region’s economy include aerospace, bioscience, energy, financial services, healthcare, aviation, information technology and software development, and telecommunications. There are more than 400 aerospace companies and suppliers in the metro. Defense-related manufacturers such as Lockheed Martin and Raytheon also have significant operations in the metro. Supporting these sectors is a highly educated workforce and a base of companies that serve as a magnet for startups, as Denver is often recognized as fertile ground for entrepreneurs.

• Absolute Triple-Net (NNN) Ground Lease with 14 Years Remaining

• 2017 Construction

• Outparcel to Save a Lot and Planet Fitness

• Infill Denver - 800,828+ Residents in Growing Trade Area

• Situated in Green Valley Ranch, Denver’s Fast Growing Master-Planned Community within Close Proximity to DIA (15 Mins), Downtown Denver (20 Mins), Fitzsimmons Medical Campus (10 Mins), and Denver Tech Center (20 Mins)

• Across from Walmart Neighborhood Market

• Adjacent to New Construction, Village Homes at Denver Connection - Mixed-Use Community with 700 Homes

• Five Miles from the New Gaylord Rockies Resort & Convention Center (See Page 9)

• Visible to 43,000+ Cars per Day at the Intersection of Chambers Rd & Green Valley Ranch Blvd

• Close Proximity to 760+ Luxury Apartment Homes

• One Mile Off the I-70 Freeway (108,000+ Cars per Day)

• Rent Equates to $10.71/SF on the Building

• More Than 204,600 Daytime Employees in 5-Mile Radius

PROPERTY DESCRIPTION

Income 3-Miles 5-Miles 10-Miles

2017 Est. Average Household Income $66,754 $68,761 $79,065

2017 Est. Median Household Income $55,460 $52,303 $55,826

2017 Est. Per Capita Income $19,451 $21,551 $32,017

Population 3-Miles 5-Miles 10-Miles

2022 Projection 74,918 196,710 838,521

2017 Estimate 72,676 186,483 800,828

Growth 2017 - 2022 3.08% 5.48% 4.71%

Households 3-Miles 5-Miles 10-Miles

2022 Projections 22,723 62,907 344,686

2017 Estimate 21,009 57,426 321,775

Growth 2017 - 2022 8.16% 9.54% 7.12%

DEMOGRAPHICS




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GREEN VALLEY RANCH OVERVIEW VILLAGE HOMES AT DENVER CONNECTION

FUTURE PLANS

ABOUT THE DEVELOPER

Green Valley Ranch is Denver’s fastest growing master-planned community within close proximity to DIA and easy access to I-70 for quick trips around town. The community offers affordable homes for sale in Denver from the low $200s to the $300s, consisting of approximately 2,560 acres in the City of Denver and 2,506 acres in the City of Aurora. The Denver property currently has 6,200 homes with approximately 22,000 residents. On complete build out there will be approximately 10,000 homes in Denver and over 9,000 in Aurora. Over 60,000 people will eventually live in Green Valley Ranch.

Village Homes, a proud division of William Lyons Homes, is a new mixed-use Denver Community will include 698 homes at Denver Connection, located adjacent to the subject property (pictured below). Village Homes plans to build 284 single family homes and 414 single family attached homes on the 115-acre site. Residents will enjoy an active lifestyle with 40 acres of parks and amentities, including a 10-acre city park, dog park/wash and “community hub” for entertainment and socializing. New retail amentities are already located on the east side of Denver Connection. The project will also complete a larger and long-awaited regional connection - the expansion of Green Valley Ranch Boulevard from two to four lanes between Chambers Rd and Peña Blvd.

Since the 1990s, HC Development Management Services, Inc. has been developing great communities throughout the metro Denver area. As a master planned community developer, HC Development strives to create great communities with parks, common areas, community events, schools and town centers, giving residents the feeling of a true community.

GREEN VALLEY RANCHMASTER-PLANNED COMMUNITY

• The $800 million Gaylord Rockies Resort broke ground this year and is expected to be completed in 2018. This massive resort and convention center is expected to employ 2,000 people when completed and 10,000 during construction. In the long run this will bring a lot of money and attention to Green Valley Ranch furthering it’s growth.

• Panasonic chose Denver over 22 other cities and they expect to add 400 jobs with an average wage of almost $90,000. Panasonic along with the City of Denver plan to create a new environmentally sustainable community called Pena Station NEXT which be a state of the art, environmentally friendly community, set to be completed in 2018.

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Starbucks

Scheduled to open in late 2018, Gaylord Rockies will be the premier Colorado meeting and convention center with sweeping views of the Rocky Mountain foothills. Nestled in the idyllic All-American City of Aurora, Gaylord Rockies features winding waterways and picture perfect sunset views. Rustic alpine charm and exciting “open-air” activity make this Rocky Mountain Front Range retreat an adventure in itself.

Located 10 minutes from Denver International Airport (DIA), Gaylord Rockies will be over 485,000 square feet of flexible meeting, convetion, outdoor, exhibit, and pre-function space. The signature Old Hickory Steakhouse provides a sophisticated spot for entertaining, while the resort pool and lazy river complex is perfect for rollover stays with the family. Networking spots within the Grand Lodge and throughout the resort ensure that corporate groups maximize their time together.

The resort will feature:

• 1,501 guest rooms, including 114 suites

• 8 dining outlets

• World-class spa and fitness center

• Indoor/outdoor pool, lazy river, and lap pool

• Retail shops

GAYLORD HOTELS

From the scenic banks of the Potomac in Washington, D.C. to the lively heart of Music City in Nashville, Gaylord Hotels - a subsidiary of Marriott - celebrates the heritage of their destinations. Fueled by the brand’s hallmark “Everything in one place” concept, Gaylord Hotels resort vacations blend magnificent settings, luxurious rooms and world-class entertainment.

www.meetgaylordrockies.com




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PROPERTY PHOTOSREGIONAL MAP

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Starbucks

Williams-Sonoma

5 MILESUCHhealth University of Colorado Hospital

13 MILESDowntown

Denver

16 MILESUniversity of

Denver

12 MILESDenver

International Airport

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained 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 investigation 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 completing 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 care-ful, 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 finan-cial 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 fa-cilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable 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 inter-rupted 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

BOB KAPLANCOLORADO BROKER OF RECORDTel: (303) [email protected]: ER100052334

AUTOZONE GROUND LEASE Freddy’s Frozen Custard · ece te ety arcus illic Rel Estte Ivestet Sevices...

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