Carl’s Jr. Ground Lease · 2019-03-05 · Realtor3,720 SF ClassicAccounting 1,200 SF Available...

Carl’s Jr. Ground LeasePioneer Shopping Center - Yuma, AZ

*Representative Photo

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The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified 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, PCB’s or asbestos, the compliance with 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 Marketing Brochure 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.

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TABLE OF C ONTENT S

INVESTMENT OVERVIEWCarl’s Jr. Ground Lease Terms & Pricing ...................4Tenant Profile ................................................................5Site Plan .........................................................................6Intersection Aerial ........................................................7Local & Regional Map .................................................8Distance Map ................................................................9Actual Site Photos.......................................................10Demographics .............................................................13

Carl’s Jr

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. © 2016 Marcus & Millichap ACT ID ZAA0070028

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EXECUTIVE SUMMARY Las Palmillas

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INVESTMENT SUMMARY Carl’s Jr

Carl’s Jr. Ground Lease11274 S Fortuna Rd, Yuma, AZ 85367

Financial SummaryPrice $1,600,000Down Payment (100%) $1,600,000CAP Rate 4.50%Building SF TBDNet Cash Flow $72,000Year Built 2019Approx. Lot Size 1.27 AcresParcel Number TBD

Lease SummaryLease Type Triple-Net (NNN) Ground LeaseTenant CLK Real Estate, LLCGuarantor Franchisee Roof & Structure Tenant ResponsibleLease Commencement 5/27/18Lease Expiration 5/26/38Lease Term Remaining 19.5 YearsOptions 4, 5 Year OptionsRental Increases 10% Every 5 Years

Base RentNet Operating IncomeTotal Return

$72,000$72,000

4.50% $72,000

Annualized Operating DataLease Years Annual Rent Cap Rate

10/1/18 - 9/30/23 $72,000 4.50%10/1/23 - 9/30/28 $79,200 4.95%10/1/28 - 9/30/33 $87,120 5.45%10/1/33 - 5/26/38 $95,832 5.99%

Options Annual rent Cap RateOption 1

5/27/38 - 5/26/43 $105,415 6.59%Option 2

5/27/43 - 5/26/48 $115,957 7.25%Option 3

5/27/48 - 5/26/53 $127,552 7.97%Option 4

5/27/53 - 5/26/58 $140,308 8.77%

Termination Right: In the event Tenant’s annual gross sales do not exceed $600,000 by the end of the 10th year of the original Lease Term, Tenant shall have the right terminate the Lease, effective 12 months after the date of the notice and including a termination fee equal to the sum of the unamortized value of the Demolition Fee and the leasing commissions paid by Landlord in conection with the parties’ original execution of this lease.


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TENANT PROFILE Carl’s Jr

Carl’s Jr. (CKE Restaurants)

CLK Real Estate, LLCCLK Real Estate, LLC is owned and operated by Carl Leo Karcher. Carl owns and operates 60 Carl’s Jr. reataurants through CLK, Inc. and its subsidiaries. Carl L. Karcher is the son of the late Carl N. Karcher, Carl’s Jr.’ founder. Mr. Karcher has been a Carl’s Jr. franchisee since May 1985.

For more than 17 years prior to that time, Mr. Karcher was employed by CKE Restaurants, Inc. in several capacities,

including Vice President, Manufacturing and Distribution. He has also served multiple terms as a director for CKE.

60Locations in the U.S.

33 Years as a FranchiseeFirst franchise founded in 1985

$1.3 BillionCKE 2016 Revenue

3,664Locations in the U.S. and 3 countries

77 Years in BusinessFounded in 1941

(Tenant)

51 Years with Carl’s Jr.First employed by Carl’s Jr. in 1968

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SITE PL AN Carl’s Jr


Microtel Inn & Suites(Not A Part)

Applebee's

5,689 SF

Pioneer Express Lube

3,420 SF

O'Reilly Auto Parts

7,000 SF

MMS1,3

20 SF

Dairy Q

ueen

2,437

SF

Da Boyz Pizza2,400 SF

UPS Store

1,200

SF

Edward

Jone

s

1,200

SF

KM Gros

s MD

1,200

SF

Pionee

r Title

1,200

SF

Matt Fisc

her

Realto

r3,7

20 SF

Classic

Accou

nting

1,200

SF

Availa

ble1,2

00 SFAva

ilable

1,200

SF

Crazy Earl's5,600 SF

Snap Fitness4,906 SF

FoothillsShoes

2,000 SFYum

a Th

ai1,

000

SF

#1 N

ails

1,420

SF

Paws &

Tails

3,600

SF

Temptations2,400 SF

Subway1,164 SF

Sunshine Herbs1,200 SF

MD Cigars1,420 SF

Wong's Kitchen1,200 SF

RowlinsonChiropractic

1,200 SF

FoothillsUrgent Care

4,680 SF

Del

Sol

Ther

apy

1,61

0 SF

Los

Man

jare

s80

5 SF

99 C

ents

Only

20,55

4 SF

Availa

ble

29,59

7 SF

Radio

Shack

2,620

SF

Al's RV

Service

4,060

SF

Tiki Hut

1,200

SF

Lotus

Day Spa

5,073

SF

Curves

2,400

SF

Woofers1,200 SF

Fratern

alOrde

rOf E

agles

2,400

SF

60.0'

78.3

'20

.0'

20.0

'20

.0'

23.7

'

17.8' 32.2'

50.0

'

19.4

'

60.0'

21.9'

60.0'

23.8'

37.3

'

36.8'

60.0'

60.0'

193.4

'

216.9

'

104.9'

23.3'

88.0'

16.1'

135.9'

193.4

'

29.3'

23.4'

106.6'

60.0'

67.7'

43.7'

20.0'

93.0'

60.0'

40.0'

60.0'

20.0'

52.3'

22.2' 40.0'98.1'

60.0'

50.0

'

40.0

'

140.0'

41.2'

78.4'

60.0'62.0'

20.0'

20.0'

20.0'

20.0'

20.0'

20.0'

20.0'

22.0'

100.0'

70.0'

100.0'

S O U T H F R O N T A G E R O A D

F O

R T

U N

A R

O A

D

4,526 SF

Proposed

45'

42'

1,890 SFProposed

CCA-Acquisition Company, LLC5670 Wilshire Blvd., Suite 1250

Los Angeles, CA 90036(323) 965 - 1510 - Phone

(323) 956-1520 - Fax

CERTAIN ELEMENTS ON THIS PLAN MAY BEINDICATED AS

"FUTURE OR PROPOSED".CCA ACQUISITION COMPANCY, LLC. MAKESNO REPRESENTATION THAT THE FUTUREDEVELOPMENT WILL OCCUR AS SHOWN.

SHEET NUMBER:

DATE:

TITLE:

SKETCHPLAN

SK-01

PIO

NEER

SHO

PPIN

G C

ENTE

RFO

RTUN

A RO

ADYU

MA,

AZ

Sept 11, 2017

DRAWN BY: J. BINKLEY

COPYRIGHT:CCA-ACQUISITION COMPANY, LLC

SITE PLANN

0' 60' 120'

This exhibit is provided for illustrative purposes only, and shall not be deemed to be awarranty, representation or agreement by Landlord that the Center, Common Area,Buildings and/or Stores will be as illustrated on this exhibit, or that any tenants whichmay be referenced on this exhibit will at any time be occupants of the Center. Landlordreserves the right to modify size, configuration and occupants of the Center at any time.

GLA (TOTAL) 140,610PARKING (TOTAL) 1,068

PIONEER SHOPPING

EXISTING

(7.60)SPACE/1,000 SF GLA

CENTER, LLC

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INTERSECTION AERIAL Carl’s Jr


19 RETAIL PROXIMITY MAP PROPERTY OVERVIEW

38,975 VPD

12,8

31 V

PD

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LO CAL & REGIONAL MAPS Carls’s Jr


18 PROPERTY OVERVIEW YUMA LOCAL & REGIONAL MAPS

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.

Subject Property

Subject Property

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DISTANCE MAP Carl’s Jr


Phoenix

San Diego

Los Angeles

157 Miles

147 Miles

229 Miles

Yuma

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ACTUAL SITE PHOTO Carl’s Jr


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6 | 6 |

PioneerExpress Lube

8

County 11th Street (Frontage Road)

MARKET OVERVIEW

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Las PalmillasMARKET OVERVIEW Las PalmillasAREA OVERVIEW Yuma Plaza Shops B


Demographic Summary

OVERVIEWYUMA

The Yuma metro consists of Yuma County in southwestern Arizona near

the California and Mexico borders. The area is know n for its agriculture

and defense industries. The market’s w arm w inter weather draws many

winter visitors and outdoor enthusiasts. The metro is also near the

Imperial Sand Dunes, attracting off-roading fans and filmmakers. The

Yuma metro’s five-year population growth is expected to outpace the

national rate of grow th.

DEMOGRAPHICS

ECONOMY

METRO HIGHLIGHTS

* Forecast Sources: Marcus & Millichap Research Serv ices; BLS; Bureau of Economic Analy sis; Experian; Fortune; Moody ’s Analy tics; U.S. Census Bureau

DEFENSE INDUSTRYThe metro is home to the Marine Corps Air Station and U.S. Army Proving Ground, supporting the area’s strong defense industry.

RENEWABLE ENERGYWith roughly 300 days of sunshine, Yuma has become a destination for solar plants and the AWC Solar Research Park is located here.

HIGHER EDUCATIONThe Arizona Western College is located in the metro and both Northern Arizona University and University of Phoenix have satellite branches here.

The metro’s strongest economic driver is agriculture. The county is the nation’s third largest vegetable producer w ith f irms such as Earthbound Farm Organic, Fresh Leaf Farms and Mission.

Tw o large military facilities are housed in Yuma, along w ith several aviation and defense testing companies, including Boeing and Trax International. The Yuma International Airport also contains a defense contractor complex that provides additional support to the Army and Marine Corps.

The Yuma Regional Medical Center is one of the largest employers in the metro aside from the military bases. Approximately 2,800 individuals are employed at the center.

205K2017

POPULATION:

67K2017

HOUSEHOLDS:

34.52017

MEDIAN AGE:

$40,500 2017 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:37.8

U.S. Median:$56,3008.9%

Growth2017-2022*:

8%Growth

2017-2022*:

MARKET OVERVIEW

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Demographic Summary

Source: © 2017 Experian

POPULA TION 1 Miles 3 Miles 5 Miles 2022 Projection

Total Population 10,055 31,479 49,187 2017 Estimate

Total Population 7,857 27,718 41,937 2010 Census

Total Population 7,778 26,769 40,372 2000 Census

Total Population 4,029 17,968 27,575 Current Daytime Population

2017 Estimate 5,669 21,013 34,629HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection

Total Households 4,564 13,459 20,713 2017 Estimate

Total Households 3,557 11,804 17,622Average (Mean) Household Size 2.33 2.34 2.37

2010 CensusTotal Households 3,502 11,304 16,903

2000 CensusTotal Households 2,027 8,045 12,469

Occupied Units2022 Projection 4,564 13,459 20,7132017 Estimate 6,093 19,979 30,668

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate

$150,000 or More 4.41% 4.95% 4.84%$100,000 - $149,000 6.85% 8.20% 8.53%$75,000 - $99,999 12.19% 12.05% 11.92%$50,000 - $74,999 23.31% 21.64% 21.63%$35,000 - $49,999 17.35% 16.94% 16.76%Under $35,000 35.89% 36.23% 36.33%

Average Household Income $58,175 $60,777 $61,463Median Household Income $47,387 $47,112 $47,113Per Capita Income $26,339 $25,997 $25,973

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure $72,440 $74,070 $73,874 Consumer Expenditure Top 10 Categories

Housing $18,816 $19,046 $19,019Transportation $13,106 $13,471 $13,446Shelter $11,136 $11,252 $11,223Food $6,903 $6,973 $6,990Personal Insurance and Pensions $5,702 $5,965 $5,968Health Care $5,539 $5,638 $5,662Util ities $3,913 $3,977 $3,980Entertainment $2,868 $2,944 $2,959Cash Contributions $2,182 $2,219 $2,220Apparel $1,931 $1,974 $1,968

POPULA TION PROFILE 1 Miles 3 Miles 5 Miles Population By Age

2017 Estimate Total Population 7,857 27,718 41,937Under 20 19.99% 20.02% 20.46%20 to 34 Years 15.96% 15.11% 14.55%35 to 39 Years 5.02% 4.70% 4.72%40 to 49 Years 8.40% 8.57% 8.66%50 to 64 Years 14.19% 15.32% 15.27%Age 65+ 36.45% 36.28% 36.34%Median Age 50.80 51.83 51.86

Population 25+ by Education Level2017 Estimate Population Age 25+ 5,935 20,877 31,390Elementary (0-8) 3.49% 3.17% 3.36%Some High School (9-11) 10.35% 11.26% 11.39%High School Graduate (12) 29.55% 30.05% 30.19%Some College (13-15) 28.87% 29.32% 29.18%Associate Degree Only 9.53% 8.77% 8.08%Bachelors Degree Only 12.23% 11.62% 11.54%Graduate Degree 5.34% 5.14% 5.57%

MARKET OVERVIEW

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Demographic SummaryGeography: --- 5 Miles

IncomeIn 2017, the median household income for your selected geography is$47,113, compare this to the US average which is currently $56,286.The median household income for your area has changed by 35.02%since 2000. It is estimated that the median household income in yourarea will be $55,676 five years from now, which represents a changeof 18.18% from the current year.

The current year per capita income in your area is $25,973, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $61,463, compare this to the USaverage which is $81,217.

PopulationIn 2017, the population in your selected geography is 41,937. Thepopulation has changed by 52.08% since 2000. It is estimated that thepopulation in your area will be 49,187.00 five years from now, whichrepresents a change of 17.29% from the current year. The currentpopulation is 50.14% male and 49.86% female. The median age of thepopulation in your area is 51.86, compare this to the US averagewhich is 37.83. The population density in your area is 534.04 peopleper square mile.

HouseholdsThere are currently 17,622 households in your selected geography.The number of households has changed by 41.33% since 2000. It isestimated that the number of households in your area will be 20,713five years from now, which represents a change of 17.54% from thecurrent year. The average household size in your area is 2.37persons.

EmploymentIn 2017, there are 5,476 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that60.51% of employees are employed in white-collar occupations in thisgeography, and 40.89% are employed in blue-collar occupations. In2017, unemployment in this area is 12.50%. In 2000, the average timetraveled to work was 21.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:81.88% White, 1.83% Black, 0.16% Native American and 1.38%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependentlyof race.

People of Hispanic origin make up 31.38% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.

HousingThe median housing value in your area was $130,080 in 2017,compare this to the US average of $193,953. In 2000, there were11,477 owner occupied housing units in your area and there were 992renter occupied housing units in your area. The median rent at thetime was $511.

Source: © 2017 Experian

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Carl’s Jr Ground Lease Pioneer Shopping CenterYuma, AZ

*Representative Photo*Representative Photo

Broker of Record:Ryan SarbinoffPhoenixAZ: BR023173000

Carl’s Jr. Ground Lease · 2019-03-05 · Realtor3,720 SF ClassicAccounting 1,200 SF Available...

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Transcript of Carl’s Jr. Ground Lease · 2019-03-05 · Realtor3,720 SF ClassicAccounting 1,200 SF Available...