Meineke/Econo Lube N’ TuneMeineke Car Care Centers, formerly Meineke Discount Mufflers, is owned...
Transcript of Meineke/Econo Lube N’ TuneMeineke Car Care Centers, formerly Meineke Discount Mufflers, is owned...
M e i n e k e / E c o n o L u b e N ’ Tu n e , G a r d e n G r o v e , C A | 1
Meineke/Econo Lube N’ Tune6 9 6 2 W C h a p m a n A v e n u e | G a r d e n G r o v e , C A
O F F E R I N G M E M O R A N D U M™
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E X E C U T I V E S U M M A R Y
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e x c l u s i v e ly l i s t e d b yW e s l e y c o n n o l ly, M B A
Senior Associate
Wesley.Connol [email protected] (949) 432-4512MOB (707) 477-7185LIC # 01962332 (CA)
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I n v e s t m e n t S u m m a r y
Wesley Connolly of Matthews Real Estate Investment Services have been retained by the ownership to exclusively present the sale of this fee simple NNN investment property in Garden Grove, CA. The property has historically been leased as an automotive repair and maintenance shop operating as a Meineke/Econo Lube N’ Tune dual concept, which is under the umbrella of Driven Brands. There are just over three years remaining on the original 15 year lease with five – 5-year renewal options and attractive 3% annual rental increases.
The property is ideally located on a hard corner at the intersection of Chapman Ave and Knott St in the dense and affluent Orange County (CA) market. The location benefits from immediate traffic counts in excess of 31,604 VPD and a 5-mile demographic population near 640,000.
There are many nearby national retail tenants and notable attractions in the area including Knott’s Berry Farm theme park, Disneyland, Los Alamitos Army Airfield and several elementary, intermediate and high schools; cementing the fundamental strengths of this real estate.
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M e i n e k e / E c o n o L u b e N ’ T u n e6962 W Chapman AvenueGarden Grove, CA 92845
List Price .................................................................................................................. $1,882,800
CAP Rate - Current ...........................................................................................................7.00%
Gross Leasable Area ...............................................................................................± 3,153 SF
Lot Size .................................................................................................................± 0.36 Acres
Year Built ............................................................................................................................... 1978
Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate
Current - 1/1/2018 $10,983 $131,796 $41.80 7.00%
1/2/2018 - 1/1/2019 $11,312 $135,759 $43.05 7.21%
1/2/2019 - 1/1/2020 $11,651 $139,822 $44.35 7.43%
1/2/2020 - 1/1/2021 $12,001 $144,017 $45.68 7.65%
Tenant Summary
Tenant Trade Name Meineke Care Care Center/Econo Lube N’ Tune
Type of Ownership Fee Simple
Lease Guarantor Corporate
Lease Type Absolute NNN
Roof and Structure Tenant Responsible
Original Lease Term 15 Years
Lease Commencement Date 1/26/2006
Rent Commencement Date 4/1/2006
Lease Expiration Date 1/1/2021
Term Remaining on Lease ± 3.5 Years
Increases Annually at min. 3% or CPI adjusted if greater
Options Five, 5-Year renewal options
*Five, 5-year options to renew with 3% annual rental increases
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Property Name Meineke
Parent Company Trade Name Driven Brands, Inc.
Ownership Private
No. of Locations ± 1,000
Headquartered Charlotte, North Carolina
Website www.meineke.com
Year Founded 1972
TENANT OVERVIEW
Meineke Car Care Centers, formerly Meineke Discount Mufflers, is owned by Driven Brands, which also franchises the Maaco and Econo Lube ‘N Tune brands, among others in its portfolio. Since its founding in Houston in 1972, the ideals of founder Sam Meineke are an essential part of the company’s corporate and franchise culture. Meineke continues to repair brakes, align wheels, install tires, provide factory-scheduled maintenance and other services. From the company website, customers can learn about vehicle maintenance and safety, print coupons and apply for the Meineke credit card.
GEOGRAPHIC OUTREACH
Meineke Car Care Centers have more than 1,000 franchised stores located throughout the US, Canada, Mexico, the Caribbean, Saudi Arabia, South Korea and China.
STRATEGY
Driven Brands prides itself in its dedication to helping entrepreneurs reach their highest level of success and growth potential throughout the automotive franchise industry. Under the veteran leadership of senior executive teams, Driven Brands subsidiaries operate via a series of established procedures and through the use of historically successful company systems. With a focus on quality products, workmanship and consistent vehicle maintenance, Meineke has been able to become one of the most trusted and recognized brands in the United States. Future plans of expansion for Meineke Car Care Centers is primarily focused on the Buffalo Niagara region. The full-service automotive repair center is aiming to open 13 more area locations in the next five years.
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Property Name Meineke/Econo Lube N’ Tune
Property Address 6962 W Chapman Avenue
Garden Grove, CA 92845
Assessor’s Parcel Number 130-174-01
Site DescriptionNumber of Stories One
Year Built 1978
Gross Leasable Area (GLA) ± 3,153 SF
Lot Size ± 0.36 Acres (15,625 SF)
Type of Ownership Absolute NNN
Landscaping Professional
Topography Generally Level
p a r c e l m a p
W. Chapman Ave ± 33,000 ADT
M e i n e k e / E c o n o L u b e N ’ Tu n e , G a r d e n G r o v e , C A | 1 1
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Eastgate Plaza Shopping
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Garden Grove is a city in northern Orange County, California. Once known for its berry fields, Garden Gove has grown and developed into a city full of residential living, thriving businesses, and an active community. Garden Grove is a family-oriented community and has a low crime rate. With the recent development focused on the increase of residential areas and hotels, the city’s population has increased. The most popular industries are in manufacturing and retail trade, with most occupations in production and sales. The city has recently started to partner with a number of local and international corporations, which has brought the unemployment rate down drastically.
Garden Grove has been known for many things throughout the years. In the early 1920’s, the city was the “chili-pepper capital of the world.” Later they became known as the “poultry capital,” then the “egg capital.” Eventually, Garden Grove went back to their roots and became the “strawberry capital” with an increase of strawberry fields in the area.
G a r d e n G r o v e , C Aa r e a o v e r v i e w
G a r d e n G r o v e d e m o g r a p h i c s
POPULATION 1 Mile 3 Mile 5 Mile
2022 Projection 19,063 250,655 670,104
2017 Estimate 18,357 240,066 642,490
2010 Census 17,652 228,495 611,029
2000 Census 17,411 224,337 596,974
Growth 2017 - 2022 3.85% 4.41% 4.30%
HOUSEHOLDS 1 Mile 3 Mile 5 Mile
2022 Projection 6,126 75,361 205,433
2017 Estimate 5,901 72,111 196,746
2010 Census 5,681 68,652 186,984
2000 Census 5,730 68,730 187,225
Growth 2017 - 2022 3.81% 4.51% 4.42%
Growth 2010 - 2017 3.87% 5.04% 5.22%
INCOME 1 Mile 3 Mile 5 Mile
2017 Est. Average Household Income
$99,140 $83,326 $86,454
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Being known as the “strawberry capital” of the world, the Garden Grove community created the Garden Grove Strawberry Festival that has become one of the largest community festivals in the western United States. Started in 1958, the city celebrates its agriculture past, specifically with an array of chili peppers, oranges, walnuts, and of course, strawberries. Some highlights of the festival include the cutting of the world’s largest strawberry shortcake, carnival rides, parades, and many celebrity sightings.
Garden Grove Strawberry Festival
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L o n g B e a c h , C A
Long Beach, California is located along the Orange County border and is the second largest city in the Los Angeles Metropolitan area. The city expanse along the Pacific Coast, with the Port of Long Beach being the second biggest container port in the United States. Long Beach has something for everyone, from residential areas, great beaches, a well-known downtown area, and many corporate businesses.
The city has recently been named the “Aquatic Capital of America.” Long Beach has a temperate year-round climate, great off-shore sailing waters, industries focused on marine life, and a large population of active water athletes and beach-goers. Even though the Port of Long Beach is extremely popular, the city is constantly thinking of new ways to help the surrounding environment. Long Beach has also produced a long list of Olympians, world champions, and world record holders in different aquatic categories.
p o i n t s o f i n t e r e s t
RMS Queen Mary is a retired ocean liner that sailed through the North Atlantic Ocean from 1936 to 1967. Explore the whole ship and see how people traveled during the early 20th century, or stay the night in on of the cabins. Tours are offered throughout the ship, as well as, a World War II troopship. There are many concerts and events that are held at the Queen Mary,
and brings in thousands of visitors each year.
THE QUEEN MARY CATALINA ISLAND
LONG BEACH HELICOPTER TOURS AQUARIUM OF THE PACIFC
Downtown Long Beach has express boats that will take you to the laid-back Catalina Island. There are many outdoor activities all over the island, such as ziplining, four wheeling, hiking, an scuba diving. Have an elegant dinner at one of the two hotels and watch the sunset, while heading back to Long Beach for a great night
Downtown.
Long Beach is also home to one of the largest Aquariums, the Aquarium of the Pacific. It holds over 11,000 animals in over 50 exhibits that span from Southern California to the Tropical Pacific. They have everything from interacting with sharks, feeding tropical birds, and a chance to meet a penguin. The Aquarium of the Pacific holds late night events, festivals, and many
other programs throughout the year.
If you want to get a full view of Long Beach, take a helicopter tour around the whole city. You will be able to see all the sites and different areas of Long Beach, while also get a great view of the ocean and Catalina. Helicopter Tours is one of the most popular tourist
activities in Long Beach.
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Orange County is situated in between the iconic cities of Los Angeles and San Diego stretching up and down the west coast from Seal Beach to San Clemente. Due to the large population being highly educated and wealthy, the OC has a major economic advantage. It is consistently one of the highest performing economies in Southern California.
Per a recent forecast from economist at Chapman University, Orange County is looking to add 39,000 jobs in 2017 on top of the 43,000 that was added in 2016 making it 254,600 jobs added since 2011, the best seven years of hiring since 1995. The job categories predicted to increase are construction, education and health, and professional and business services.
Additionally, Chapman sees local incomes, retail spending and home prices continuing to rise as relative economic strength is also foreseen nationally and statewide. With the predicted increase in personal income, household budgets are looking to increase providing more room for leisurely spending.
O r a n g e c o u n t y
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E c o n o m yOrange County has a thriving economy with three main industries leading the way: Businesses, Shopping, and Tourism. Some Fortune 500 companies in Orange County include Ingram Micro, First American Corporation, Broadcom, Western Digital, and Pacific Life. Irvine has been a hotspot for start-up companies and is thriving in the technology sector. Some notable companies in the area are Allergan, Standard Pacific, and Blizzard Entertainment.
As for shopping centers, Orange County has many popular shopping centers, specific in Costa Mesa and Fashion Island in Newport Beach. South Coast Plaza is the largest mall in California and the third largest in the United States. This is also become a growing area for businesses. Other notable shopping areas include The Outlets of Orange, Irvine Spectrum Center, and Downtown Disney.
Tourism is a vital sector for Orange County’s economy. Disneyland is the second most visited theme park in the world. Disneyland is a mix of timeless and evolving attractions that bring in billions of people each year. This makes Anaheim the main hub for tourism. Knott’s Berry Farm is another popular theme park that brings in 7 million visitors each year. There are also many different resorts in beach cities that bring in visitors year-round.
This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Meineke/Econo Lube N’ Tune located at 6962 W Chapman Avenue, Garden Grove, CA 92845 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.
By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:
1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;
2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and
3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.
Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.
I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.
A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.
This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.
C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T
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BROKER OF RECORD
e x c l u s i v e ly l i s t e d b y
Meineke/Econo Lube N’ Tune6 9 6 2 W C h a p m a n A v e n u e | G a r d e n G r o v e , C A
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W e s l e y c o n n o l ly, M B A
Senior Associate
Wesley.Connol [email protected] (949) 432-4512MOB (707) 477-7185LIC # 01962332 (CA)