KNEADERS BAKERY & CAFÉ...numerous world-class ski resorts. P O P.12 KNEADERS BAKERY & CAFE is a...

P . 1K N E A D E R S | P A R K E R , C O

KNEADERS BAKERY & CAFÉPARKER, CO (DENVER MSA)

C O N F I D E N T I A L O F F E R I N G M E M O R A N D U M

T O M E T H I N G T O N - L E A D Managing PartnerInvestment Sales

[email protected]

Z A C H W R I G H T - L E A DDirector

Net Lease Investment Sales720.966.1628

[email protected]

R O B E R T E D WA R D SManaging PartnerInvestment Sales

[email protected]

B R A N D O N G AY E S K IAssociate AdvisorInvestment Sales

[email protected]

Table ofContents

7 2 0 . 9 8 9 . 1 0 3 14 0 0 S C O L O R A D O B L V D # 4 2 0

D E N V E R , C O 8 0 2 4 6B L U E W E S T C A P I T A L . C O M

I N V E S T M E N T H I G H L I G H T S

I N V E S T M E N T O V E R V I E W

A E R I A L

P R O P E R T Y P H O T O S

S I T E P L A N

M A P S & D E M O S

L O C A T I O N O V E R V I E W

T E N A N T O V E R V I E W

K N E A D E R S | P A R K E R , C O P . 3

• Located within the Denver MSA in the affluent and rapidly expanding

suburb of Parker

• Long term lease with over 15 years remaining

• 10% rental escalations every five years

• Absolute triple net lease with no landlord responsibilities

• Corporately guaranteed lease by Four Foods Groups

• Recently constructed building (2014)

• Outparcel to a grocery-anchored center that features Safeway, Hobby

Lobby & Planet Fitness

• Just off of the heavily trafficked signalized intersection of S Parker Road

and E Mainstreet (60,000+ VPD)

• Affluent area with average annual household incomes of approximately

$125,000

• National retailers in the immediate trade area include Walmart

Supercenter, Home Depot, Target, Kohl’s, AMC Theatres, Best Buy, Bed

Bath & Beyond and numerous others

• 2019-2024 projected annual population growth of 9.72% within a 5-mile

radius

• Several Fortune 500 companies headquartered minutes away such as

Arrow Electronics, Liberty Media, Charles Schwab and CH2M Hill

InvestmentHighlights

Long term lease with over 15 years remaining

Absolute triple net lease with no landlord responsibilities

Outparcel to a grocery-anchored center that features Safeway, Hobby Lobby & Planet Fitness

19190 Mainstreet, Parker, CO 80134

A D D R E S S

10% rent increases every 5 years

R E N T A L E S C A L A T I O N S

15.5 yearsT E R M R E M A I N I N G

Kneaders Bakery and Cafe

T E N A N T

$3,120,000P R I C E

5.50%C A P R A T E ( C U R R E N T )

Investment Overview


*Based upon the Net Operating Income beginning on January 1, 2020. Seller will credit at closing the difference between the future rent ($14,300/month) and the current rent ($13,000/month).

December 31, 2034L E A S E E X P I R AT I O N

Absolute Triple Net (Zero Landlord Responsibilities)

L E A S E T Y P E

$3,120,000P U R C H A S E P R I C E

Kneaders

18,165 SF + 10 Parking Spots(Perpetual Easement)

T E N A N T

L A N D S I Z E

5.50%C A P R AT E

FFG Parker, LLC D/B/A Kneaders Bakery & Cafe

G UA R A N TO R

$171,600*N E T O P E R AT I N G I N C O M E

N O I S C H E D U L E

3,798 SFB U I L D I N G S I Z EDecember 24, 2014

R E N T C O M M E N C E M E N T

10% Every Five YearsR E N TA L E S C A L AT I O N S

Three 5-YearR E N E WA L O P T I O N S

NOI Increase Date Period Cap Rate

$171,600 10% 1/1/2020 Primary Term 5.50%

$188,760 10% 1/1/2025 Primary Term 6.05%

$207,636 10% 1/1/2030 Primary Term 6.66%

$228,400 10% 1/1/2035 Option 1 7.32%

$251,240 10% 1/1/2040 Option 2 8.05%

$276,364 10% 1/1/2045 Option 3 8.86%

Y E A R B U I LT

2014


Aerial

O’Brien Park

So

uth

Pa

rke

r Ro

ad

(53

,00

0 V

PD

)

E Mainstreet (17,800 VPD)

N

Downtown Parker


Aerial

South Parker Road

(53,000 VPD)


N


Neighborhood Map

Stroh Ranch Anthology Submarket Arlington Ranch

6,770 Homes

Stroh Ranch 2.817 Homes

Robinson Ranch124 Homes

Hidden Rivers1,023 Homes

Rowley Downs323 Homes

Parker Vista220 Units

Overlook 844 Homes

Preston Hill193 Homes

Pine Bluffs217 Homes

Old Town449 Homes

Horseshoe Ridge300 Homes

Cherry Creek Highlands41 Homes

Parker North298 Homes

Lincoln Creek Village724 Homes

Parker Road

Chambers Road

Jordan Crossing105 Homes

Bradbury Ranch1,607 Homes

Clark Farms1,561 Homes

Stonegate3,483 Homes

Pine Lane285 Homes

Cottonwood 1,850 Homes

Challenger Park & Cherrywood Apartments

1,307 Units

Country Meadows205 Homes

Town & Country501 Homes


Site Plan

DRIVE THRU

10 DEDICATED PARKING SPACES

VIA PERPETUAL EASEMENT


So

uth

Pa

rke

r R

oa

d (

53

,00

0 V

PD

)

PROPOSED REDEVELOPMENT(NOT INCLUDED)

P . 9Map &Demographics

Map &Demographics

TOTAL POPULATIONPOPULATION RESIDENTIAL COUNT AVERAGE HH INCOME

1 mile 8,056

3 mile 66,536

5 mile 104,515

TOTAL HOUSEHOLDSPOPULATION RESIDENTIAL COUNT AVERAGE HH INCOME

1 mile 3,302

3 mile 23,514

5 mile 38,629

AVERAGE HH INCOMEPOPULATION RESIDENTIAL COUNT AVERAGE HH INCOME

1 mile $86,424

3 mile $121,560

5 mile $124,391

AREA DEMOGRAPHICS

K N E A D E R S | P A R K E R , C O


Denver International Airport

P . 1 0K N E A D E R S | P A R K E R , C O

Area Map



PARKER is a municipality in Douglas County, Colorado and is a part of

the Denver MSA. Parker is ranked as the 19th most populous municipality

in Colorado with a population of approximately 55,000 people. Parker

benefits from its easy access to Denver, Colorado Springs and the rest

of the front range via I-25, E-470 and public transportation. Denver

International Airport is located 30 minutes away and Centennial Airport

is located 10 minutes away. Parker’s thriving economy, robust business

center, family-friendly environment, great schools, and extensive cultural

and recreational activities are the reasons why CNN Money rated it one

of the Best Places to Live in the United States.

The town boasts a median age of 35 years old and a median household

income of over $111,000. Additionally, the town’s favorable demographics

include a low unemployment rate of less than 3%. The Parker trade area

features approximately 126,000 people and is rapidly expanding. The

town boasts a highly talented and educated workforce with several

Fortune 500 companies headquartered minutes away such as Arrow

Electronics, Liberty Media, Charles Schwab and CH2M Hill.

LocationOverview

DENVER is the capital and most populous city of Colorado and is located just east

of the front range of the Rocky Mountains. Denver is nicknamed the Mile High City

because its elevation is exactly one mile above sea level, making it the highest major

city in the United States. Denver is ranked as a Beta- world city by the Globalization

and World Cities Research Network. With an estimated population of 693,060 in 2016,

Denver is the 19th-most populous U.S. city. The Denver MSA had an estimated 2016

population of 2,853,077 and is the 19th most populous US MSA. In 2016, Denver was

named the best place to live in the United States by U.S. News & World Report.

Denver is home to the Denver International Airport which is the 18th busiest airport in the

world. Denver serves as a major hub for United Airlines, is the headquarters for Frontier

Airlines and is the fastest-growing focus city for Southwest Airlines. Denver is served

by five interstates which include I-25, I-225, I-70, I-270, and I-76. Denver is home to four

professional sports teams which include the Denver Broncos, Colorado Avalanche,

Colorado Rockies and Denver Nuggets.

Denver is the largest city within 500 miles which has made it a natural location for

storage and distribution of goods and services to the Mountain states, Southwestern

states as well as Western states. Denver is the headquarters to Dish Network, Vail

Resorts, Western Union, DaVita, Coors Brewing Company, Liberty Interactive, Level 3

Communications, Ball Corp., Envision Healthcare, CH2M Hill and many others. Denver

also has a thriving tourism industry due to its proximity to the Rocky Mountains and

numerous world-class ski resorts.


KNEADERS BAKERY & CAFE is a fast-casual restaurant chain that serves freshly baked breads, sandwiches, homemade pastries, hearty soups and refreshing salads. Every Kneaders location has a certified baker and pastry chef creating seasonal and signature menu items by hand daily. Kneaders differentiates itself by freshly baking from scratch all of their bread daily in each particular location and using high quality ingredients. For example, their preservative, GMO, and steroid-free turkey is slow-roasted every day at each Kneaders location and is hand pulled before becoming part of their popular sandwiches and salads. Kneaders was founded in Orem, UT in 1997. They currently have over 60 locations in 8 different states (Colorado, Utah, Arizona, Nevada, Idaho, Texas, Kansas, & Missouri).

TenantOverview

WEBSITE www.fourfoodsgroup.com

NUMBER OF LOCATIONS 110+

YEAR FOUNDED 2008

HEADQUARTERS Pleasant Grove, UT

WEBSITE www.kneaders.com

NUMBER OF LOCATIONS 60+

YEAR FOUNDED 1997

FOUR FOODS GROUP is the operator of over 43 Kneaders locations and currently have 11 additional restaurants under development. Four Foods Group was founded in 2008 by Andrew and Shauna Smith when they purchased their first Kneaders location in Utah County. Shortly thereafter, they purchased the rights to a multi-state development to grow the Kneaders concept and were granted the right to develop 110 Kneaders locations.

In addition to Kneaders, Four Foods Group operates 48 Little Caesar restaurants in Alabama and Louisiana. They also operate R&R BBQ which has 8 locations in Utah and is rapidly expanding. They also recently acquired The Soda Shop, an up-and-coming player in the gourmet soda fountain drink arena that is based in Gilbert Arizona. Four Foods Group is headquartered in Pleasant Grove, UT.

The company employs more than 4,000 people and reports over $190 million in annual revenue. Four Foods Group was named the third fastest-growing restaurant operators in 2017 by Franchise Times, is a multi-time winner of “Best Companies to Work For,” and currently holds a 4.9/5.0 Glassdoor rating. Recently, FFG was listed in the Inc. 5000 fastest-growing companies in the nation for the 7th consecutive time.


Disclaimer

This confidential Offering Memorandum, has been prepared by Blue West Capital, LLC (“Blue West Capital”) for use by a limited number of qualified parties. This Offering Memorandum has been provided to you at your request based upon your assurances that you are a knowledgeable and sophisticated investor in commercial real estate projects and developments. Blue West Capital recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property described herein as Kneaders Bakery and Café (the “Property”) and of all of the information provided herein related to the Property. By accepting this Offering Memorandum, you acknowledge and agree that you shall rely solely upon your own examination and investigation of the Property and you shall not rely on any statements made in this Offering Memorandum or upon any other materials, statements or information provided by Blue West Capital or its brokers.

Blue West Capital makes no guarantee, warranty or representation about the completeness or accuracy of the information set forth in this Offering Memorandum. You are responsible to independently verify its accuracy and completeness. Blue West Capital has prepared the information concerning the Property based upon assumptions relating to the general economy, its knowledge of other similar properties in the market, and on other market assumptions including factors beyond the control of the Blue West Capital and the Owner of the Property. Blue West Capital makes no representation or warranty as to either the accuracy or completeness of the information contained herein, and the information set forth in this Offering Memorandum in not intended to be a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be accurate, Blue West Capital and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further, Blue West Capital and the Property Owner disclaim any and all liability for any express or implied representations and warranties contained in, or for any omissions from, the Offering Memorandum and for any other written or oral communication transmitted or made available to you. Blue West Capital shall make available to you, as a qualified prospective investor, additional information concerning the Property and an opportunity to inspect the Property upon written request.

This Offering Memorandum and the contents are intended to remain confidential except for such information which is in the public domain or is otherwise available to the public. By accepting this Offering Memorandum, you agree that you will hold and treat Offering Memorandum in the strictest confidence, that you will not photocopy or duplicate it, or distribute it. You agree you will not disclose this Offering Memorandum or its contents to any other person or entity, except to outside advisors retained by you and from whom you have obtained an agreement of confidentiality, without the prior written authorization of Blue West Capital. You agree that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the Property. If you determine you have no interest in the property, kindly return the Offering Memorandum to Blue West Capital at your earliest convenience.


I N V E S T M E N T C O N T A C T S

Z A C H W R I G H T - L E A D

DirectorNet Lease Investment Sales

720.966.1628

[email protected]

7 2 0 . 9 8 9 . 1 0 3 14 0 0 S C O L O R A D O B L V D # 4 2 0D E N V E R , C O 8 0 2 4 6B L U E W E S T C A P I T A L . C O M

R O B E R T E D WA R D S

Managing PartnerInvestment Sales

720.966.1630

[email protected]

T O M E T H I N G T O N - L E A D

Managing PartnerInvestment Sales

720.966.1624

[email protected]

B R A N D O N G AY E S K I

Associate AdvisorInvestment Sales

720.966.1627

[email protected]

KNEADERS BAKERY & CAFÉ...numerous world-class ski resorts. P O P.12 KNEADERS BAKERY & CAFE is a...

Documents

Transcript of KNEADERS BAKERY & CAFÉ...numerous world-class ski resorts. P O P.12 KNEADERS BAKERY & CAFE is a...