Starbucks Drive-Thru Offering Anchored NNN Investment ... · Ruidoso has a vibrant economy...

Starbucks Drive-ThruAnchored NNN Investment

Offering Memorandum

6801 Jefferson St. NE, Suite 200 | Albuquerque NM 87109

office 1 505 878 0001 | www.IPArealty.com

2722 Sudderth Dr. | Ruidoso, NM 88355

Cole Flanagan, CPA, MBAcell 505 235 7585 [email protected]

Rich Diller, CCIM, SIOR cell 505 249 7007

[email protected]

A division of NAI Maestas & Ward

Offering Memorandum | 2A division of NAI Maestas & Ward

ConfidentialDisclaimer

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving from NAI Maestas & Ward and should not be made available to any other person or entity without the written consent of NAI Maestas & Ward. 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.

NAI Maestas & Ward 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, NAI Maestas & Ward has not verified, and will not verify, any of the information contained herein, nor has NAI Maestas & Ward 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. Principals of property seller are licensed NM real estate brokers and is a Qualifying Broker for NAI Maestas & Ward; they are selling this property for their own account.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT A NAI MAESTAS & WARD ADVISOR FOR MORE DETAILS.


InvestmentHighlights

Investment Property Advisors is pleased to offer for sale the only Starbucks corporate-leased drive-thru location in Ruidoso, NM. The development is a three tenant retail center servicing both the surrounding neighborhoods, businesses, and tourists, as well as the high traffic that travels by the location each day. The property is located in the heart of Ruidoso, NM, where the main east/west and north/south thoroughfares of Sudderth and Mechem intersect.

Starbucks occupies approximately 2,000 square feet of the approximately 4,993 square foot retail building. Starbucks provides for about 70% of the annual base rent for the center and recently elected extended their lease early for an additional 10 years*. Simply Sugar and Mc E’s Vapor occupy the remaining 2,993 square feet. The building sits on approximately 0.813 acres of land, and the tenants are all on NNN leases, with minimal landlord responsibilities.

The location benefits from visibility to high traffic counts and direct access on a major east/west roadway through the main drag of Ruidoso. The property is centrally located, with quick access to gaming casinos, race tracks, golf courses, horseback riding, ski areas and many more outdoor attractions. The immediate area is the main retail corridor for Ruidoso and is right in the middle of all the tourist activity and local businesses.

* Starbucks has the option to terminate at March 31, 2022.

� Starbucks recent early extension for 10 years*, with Four 5-year renewal options

� NNN leases with minimal landlord responsibilities

� 12% rental increase after 5 years in new base term

� Rental increases of 10% each option

� Strategically located in the heart of Ruidoso, NM, directly on the east/west thoroughfare of Sudderth

� Well-Established Starbucks location with Drive-thru and the only Starbucks in Ruidoso, NM

� Sudderth & Mechem is the busiest intersection in Ruidoso, NM where the main east/west and north/south thoroughfares collide

� Strong retail corridor

Offering SummaryPurchase Price $1,284,000 Net Operating Income $91,406Cap Rate 7.12% Lease Types NNN

Starbucks Drive-Thru

* Starbucks has the option to terminate at March 31, 2022


AMOUNT

Rental Income Starbucks $75,000 Simply Sugar $12,000 Mc E’s Vapor $15,600 TOTAL RENTAL INCOME $102,600

Expense Reimbursements $23,016

TOTAL GROSS INCOME $125,616Vacancy (7%) ($8,793)TOTAL ADJUSTED INCOME $116,823

Estimated Operating ExpensesCAM $18,040Property Tax $5,055

Insurance $2,322

TOTAL OPERATING EXPENSES $25,417

NET OPERATING INCOME $91,406

Operating Summary

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Custom Map

October 21, 2014

Made with Esri Business Analyst©2014 Esri www.esri.com/ba 800-447-9778 Try it Now! Page 1 of 1Offering Memorandum | 5

GrillCaliente S I T E

Retail Corridor

Sudderth Dr.

15,062

MountainSki Shop

Mountain Annie’s

CozyBear Cabins

Steppin Out Shoes

Visions Plaza

Lincoln County

Grill

Grizzly’s Workshop


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Offering Memorandum | 6

PropertyContext

Sudderth Dr.

Mechem Dr.

11,

625

ThriftwaySupermarket

GazeboShopping Center

Grace O’Malley’sIrish Pub

Shrimpy’sRestaurant

Cafe Rio

Cree MeadowsGolf Course

15,062

S I T E

High HorseInteriors

RuidosoMorgage

USA NailsBuffets Candies

Lucy’s Mexicali The Cellar UncorkedBrunell’s

Scoot Over Ruidoso

Ruidoso RiverResort and Inn

Mitchell’s SiverCattilac Style

Win Place Show


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S I T E

70

48

Ruidoso Downs

Alto

Ruidoso

1 Mile 3 Mile 5 Mile

Demographic and Income Profile2722 Sudderth Dr, Ruidoso, New Mexico, 88345 2 Prepared by Esri2722 Sudderth Dr, Ruidoso, New Mexico, 88345 Latitude: 33.33262Ring: 1 mile radius Longitude: -105.67831

Summary Census 2010 2015 2020Population 2,541 2,617 2,654Households 1,215 1,256 1,280Families 711 722 729Average Household Size 2.09 2.08 2.07Owner Occupied Housing Units 836 862 875Renter Occupied Housing Units 379 394 405Median Age 47.4 49.0 50.4

Trends: 2015 - 2020 Annual Rate Area State NationalPopulation 0.28% 0.46% 0.75%Households 0.38% 0.50% 0.77%Families 0.19% 0.34% 0.69%Owner HHs 0.30% 0.52% 0.70%Median Household Income 2.12% 2.64% 2.66%

2015 2020 Households by Income Number Percent Number Percent

<$15,000 225 17.9% 211 16.5%$15,000 - $24,999 205 16.3% 169 13.2%$25,000 - $34,999 97 7.7% 89 7.0%$35,000 - $49,999 248 19.7% 246 19.2%$50,000 - $74,999 217 17.3% 258 20.2%$75,000 - $99,999 140 11.1% 152 11.9%$100,000 - $149,999 66 5.3% 81 6.3%$150,000 - $199,999 43 3.4% 55 4.3%$200,000+ 16 1.3% 19 1.5%

Median Household Income $39,805 $44,213Average Household Income $52,121 $58,402Per Capita Income $24,193 $27,198

Census 2010 2015 2020 Population by Age Number Percent Number Percent Number Percent

0 - 4 136 5.4% 127 4.9% 118 4.4%5 - 9 127 5.0% 143 5.5% 132 5.0%10 - 14 118 4.6% 130 5.0% 154 5.8%15 - 19 140 5.5% 105 4.0% 121 4.6%20 - 24 127 5.0% 115 4.4% 80 3.0%25 - 34 257 10.1% 304 11.6% 258 9.7%35 - 44 277 10.9% 259 9.9% 307 11.6%45 - 54 405 15.9% 354 13.5% 311 11.7%55 - 64 438 17.2% 491 18.8% 462 17.4%65 - 74 315 12.4% 359 13.7% 440 16.6%75 - 84 155 6.1% 176 6.7% 211 8.0%

85+ 46 1.8% 53 2.0% 59 2.2%Census 2010 2015 2020

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 2,118 83.3% 2,078 79.4% 2,102 79.2%Black Alone 16 0.6% 23 0.9% 23 0.9%American Indian Alone 95 3.7% 151 5.8% 155 5.8%Asian Alone 16 0.6% 19 0.7% 19 0.7%Pacific Islander Alone 1 0.0% 1 0.0% 1 0.0%Some Other Race Alone 228 9.0% 265 10.1% 272 10.3%Two or More Races 68 2.7% 80 3.1% 81 3.1%

Hispanic Origin (Any Race) 701 27.6% 808 30.9% 827 31.2%Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.

June 14, 2016

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Summary Census 2010 2015 2020Population 2,541 2,617 2,654Households 1,215 1,256 1,280Families 711 722 729Average Household Size 2.09 2.08 2.07Owner Occupied Housing Units 836 862 875Renter Occupied Housing Units 379 394 405Median Age 47.4 49.0 50.4



<$15,000 225 17.9% 211 16.5%$15,000 - $24,999 205 16.3% 169 13.2%$25,000 - $34,999 97 7.7% 89 7.0%$35,000 - $49,999 248 19.7% 246 19.2%$50,000 - $74,999 217 17.3% 258 20.2%$75,000 - $99,999 140 11.1% 152 11.9%$100,000 - $149,999 66 5.3% 81 6.3%$150,000 - $199,999 43 3.4% 55 4.3%$200,000+ 16 1.3% 19 1.5%



0 - 4 136 5.4% 127 4.9% 118 4.4%5 - 9 127 5.0% 143 5.5% 132 5.0%10 - 14 118 4.6% 130 5.0% 154 5.8%15 - 19 140 5.5% 105 4.0% 121 4.6%20 - 24 127 5.0% 115 4.4% 80 3.0%25 - 34 257 10.1% 304 11.6% 258 9.7%35 - 44 277 10.9% 259 9.9% 307 11.6%45 - 54 405 15.9% 354 13.5% 311 11.7%55 - 64 438 17.2% 491 18.8% 462 17.4%65 - 74 315 12.4% 359 13.7% 440 16.6%75 - 84 155 6.1% 176 6.7% 211 8.0%

85+ 46 1.8% 53 2.0% 59 2.2%Census 2010 2015 2020


Hispanic Origin (Any Race) 701 27.6% 808 30.9% 827 31.2%Data Note: Income is expressed in current dollars.


June 14, 2016



Summary Census 2010 2015 2020Population 7,479 7,628 7,695Households 3,533 3,605 3,645Families 2,096 2,103 2,106Average Household Size 2.12 2.12 2.11Owner Occupied Housing Units 2,511 2,556 2,574Renter Occupied Housing Units 1,022 1,049 1,071Median Age 49.0 50.8 52.2



<$15,000 675 18.7% 626 17.2%$15,000 - $24,999 550 15.3% 448 12.3%$25,000 - $34,999 312 8.7% 284 7.8%$35,000 - $49,999 647 17.9% 635 17.4%$50,000 - $74,999 596 16.5% 695 19.1%$75,000 - $99,999 404 11.2% 439 12.0%$100,000 - $149,999 234 6.5% 285 7.8%$150,000 - $199,999 127 3.5% 163 4.5%$200,000+ 60 1.7% 69 1.9%



0 - 4 369 4.9% 341 4.5% 328 4.3%5 - 9 392 5.2% 385 5.0% 356 4.6%10 - 14 377 5.0% 397 5.2% 415 5.4%15 - 19 382 5.1% 332 4.4% 368 4.8%20 - 24 343 4.6% 311 4.1% 246 3.2%25 - 34 692 9.3% 802 10.5% 697 9.1%35 - 44 759 10.1% 737 9.7% 819 10.6%45 - 54 1,158 15.5% 988 13.0% 872 11.3%55 - 64 1,316 17.6% 1,454 19.1% 1,375 17.9%65 - 74 1,015 13.6% 1,123 14.7% 1,354 17.6%75 - 84 539 7.2% 588 7.7% 669 8.7%

85+ 139 1.9% 168 2.2% 195 2.5%Census 2010 2015 2020


Hispanic Origin (Any Race) 2,042 27.3% 2,332 30.6% 2,376 30.9%Data Note: Income is expressed in current dollars.


June 14, 2016



Summary Census 2010 2015 2020Population 10,522 10,754 10,837Households 4,831 4,945 4,996Families 2,937 2,964 2,968Average Household Size 2.18 2.17 2.17Owner Occupied Housing Units 3,453 3,536 3,569Renter Occupied Housing Units 1,378 1,409 1,427Median Age 48.6 50.6 52.0



<$15,000 934 18.9% 864 17.3%$15,000 - $24,999 747 15.1% 611 12.2%$25,000 - $34,999 430 8.7% 393 7.9%$35,000 - $49,999 878 17.8% 858 17.2%$50,000 - $74,999 845 17.1% 980 19.6%$75,000 - $99,999 535 10.8% 583 11.7%$100,000 - $149,999 326 6.6% 397 7.9%$150,000 - $199,999 165 3.3% 211 4.2%$200,000+ 85 1.7% 98 2.0%



0 - 4 538 5.1% 499 4.6% 482 4.4%5 - 9 567 5.4% 548 5.1% 507 4.7%10 - 14 548 5.2% 568 5.3% 579 5.3%15 - 19 553 5.3% 493 4.6% 533 4.9%20 - 24 477 4.5% 449 4.2% 364 3.4%25 - 34 975 9.3% 1,111 10.3% 985 9.1%35 - 44 1,062 10.1% 1,034 9.6% 1,125 10.4%45 - 54 1,614 15.3% 1,374 12.8% 1,218 11.2%55 - 64 1,848 17.6% 2,030 18.9% 1,922 17.7%65 - 74 1,417 13.5% 1,607 14.9% 1,915 17.7%75 - 84 739 7.0% 822 7.6% 944 8.7%

85+ 182 1.7% 222 2.1% 263 2.4%Census 2010 2015 2020

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 8,731 83.0% 8,566 79.7% 8,603 79.4%Black Alone 53 0.5% 71 0.7% 71 0.7%American Indian Alone 546 5.2% 743 6.9% 769 7.1%Asian Alone 55 0.5% 68 0.6% 68 0.6%Pacific Islander Alone 4 0.0% 4 0.0% 4 0.0%Some Other Race Alone 872 8.3% 998 9.3% 1,014 9.4%Two or More Races 260 2.5% 303 2.8% 306 2.8%

Hispanic Origin (Any Race) 2,915 27.7% 3,292 30.6% 3,335 30.8%Data Note: Income is expressed in current dollars.


June 14, 2016



Demographics1, 3 & 5 Miles

Ruidoso, New Mexico is high in the Rocky Mountains of southeastern New Mexico. Towering above the Village of Ruidoso is Sierra Blanca at 11,981 feet above sea level and the New Mexico ski resort, Ski Apache. Sierra Blanca Peak is the highest point in southern New Mexico. Ruidoso weather is mild and great for enjoying the outdoors and the natural wonders that abound in Ruidoso, Lincoln County and the Lincoln National Forest. Located less than 3 hours from Albuquerque, NM; 2 hours from El Paso, TX; and 4 hours from Lubbock, TX; Ruidoso is the ultimate playground of the Southwest.

The Ruidoso Downs Race Track is home to the richest quarter horse race in the world; the All American Futurity. Ski Apache is the perfect ski resort for both beginning and advanced skiers and snowboarders. The Ruidoso area claims two of New Mexico’s finest casinos; Inn of the Mountain Gods and Billy the Kid Casino. The Spencer Theater for the Performing Arts is a world class performance hall. There is live music at many Ruidoso venues including the renowned country western bar Win Place and Show, outdoor cafes and many Ruidoso restaurants. For the active vacation, Ruidoso offers some of the best outdoor recreation around including top rated golf courses, horseback riding, Golden Aspen Motorcycle Rally, Aspencash Motorcycle Rally, high altitude bicycling, camping , hiking, skiing , golf, tennis, art galleries , museums and shopping aplenty. With all Ruidoso has to offer, the top rated activity in Ruidoso remains relaxing and enjoying the magnificent mountain views and the cool pines.

Ruidoso lodging is unique to other destinations. Known for quaint cabins along the Rio Ruidoso River, lodging includes cabins , resorts, hotels , motels, boutique hotels , bed and breakfasts, RV parks, campgrounds, condos and nightly rentals of private homes . Many lodging establishments are pet friendly . Ruidoso dining and restaurants offer a full range of options to fit any budget or taste.

If you decide to stay or make Southeastern New Mexico your second home, Ruidoso real estate has proven to be a popular investment.


Ruidoso, New Mexico

City Overview



Ruidoso has a vibrant economy specializing primarily in real estate, entertainment and tourism.

Ruidoso has been experiencing explosive growth. Currently, Ruidoso is the 3rd fastest growing city in New Mexico. With approximately 8,690 full-time residents, Ruidoso enjoys a summer time boost of over 40,000 part-time visitors.

Real Estate is picking up in the area, with the new Kokopelli subdivision being built as well as a multi-family housing development in the works. Ruidoso is looking to the State to designate the Community as an “Arts & Cultural District” that is sure to boost out-of-area visitors.

According to the Ruidoso News, business at Sierra Blanca Regional Airport is growing. With nearly a "15% increase in operations" and a "31% increase in jet fuel sales" compared to the previous year, the local attractions are bringing in the tourists.

The busiest weeks for tourism are Labor Day, July 4th, Memorial Day, Christmas, Thanksgiving, and Easter. During these holidays, Ruidoso is typically at capacity for lodging because of the influx of visitors. Ruidoso has events going on all year to ensure tourists never run out of things to experience.

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