4716 e ray road | phoenix, az...phoenix, arizona. uniquely located near the borders of phoenix,...

OFFERING MEMORANDUM | 4716 E Ray Road Phoenix, Arizona

4716 E Ray Road | Phoenix, AZ

4716 E RAY ROAD

E Ray Rd

S 48th St

S 50t

h St

Exclusively Listed by

Jenette Bennett, [email protected]

Table of Contents

INVESTMENT SUMMARY01

FINANCIAL ANALYSIS02

LOCATION OVERVIEW03

TENANT PROFILE04

Investment Summary

01

4Offering Memorandum | Boston Market

The Ray Road Boston Market is a single tenant triple net leased asset in Phoenix, Arizona. Uniquely located near the borders of Phoenix, Chandler, and Tempe in one of the most dense retail corridors in the Phoenix-Metro market. Less than a mile from I-10, the primary arterial in and out of the city that boasts the highest traffic counts in the area. The Boston Market consists of 3,096 square feet sitting on a 0.61 acre parcel. This is considerable street frontage and several points of ingress and egress allowing convenient access from the heavily utilized road.

This Boston Market has 7 years left on their initial 18-year lease, with three additional options to extend at 8 years, 8 years, and 10 years respectively. With the triple net lease, expenses are passed through to the Tenant including real estate taxes, insurance, and all operating expenses including landscaping, trash removal, parking lot maintenance, and lighting. The lease is guaranteed by Boston Market Corporation, which operates over 80 locations nationwide. The tenant provides monthly sales reporting and has shown strong and increasing sales.

INVESTMENT HIGHLIGHTS

STABLE, LONG-TERM CASH FLOW WITH ESCALATIONS

NNN lease structure provides passive income with 7 years left on an 18-year initial term.

NO LANDLORD RESPONSIBILITIES

Absolute NNN lease ideal for a 1031 exchange investor.

STRATEGICALLY POSITIONED

With 3M SF of retail in the trade area, Boston Market is located on high profile outparcel in Target-anchored center, and near such tenants as AMC Theaters, Best Buy, Sprouts, Party City, JoAnn, Petco, and more.

STRONG DEMOGRAPHICS

Close proximity to large employers including Intel, Wells Fargo, Bank of America, PayPal, Northrop Grumman and Microchip Technology.

ACTIVE PHOENIX/CHANDLER LOCATION

Conveniently located off I-10 near borders of Phoenix, Chandler, and Tempe.

SECURE CORPORATE OPERATOR

Boston Market Corporation operates 80+ locations in the nation.

Investment Summary$2,779,129.41OFFERING PRICE

6.8%CAP RATE

7 yrsLEASE TERM REMAINING

08/2007LEASE COMMENCEMENT


PROPERTY INFORMATION

PROPERTY NAME Boston Market

ADDRESS 4716 E Ray Road, Phoenix, AZ

BUILDING

YEAR BUILT 1994

GROSS LEASABLE SQUARE FEET 3,096 SF

STORIES One (1)

SIGNAGE Building and Dedicated Monument

SITE

LAND AREA ACRES 0.61 AC

LAND AREA SQUARE FEET 26,484 SF

PARCEL NUMBER 301-58-881

COUNTY Maricopa

MARKET Phoenix

ACCESS Ray Road

ZONING C-C


SITE PLAN

E Ray Rd

S 4

8th

St

S 4

6th

Pl


N

BOSTON MARKET

FOOTHILLS PARK PLACE

AHWATUKEE FOOTHILLS TOWNE CENTER

THISTLE LANDING OFFICE PARK

MOUNTAIN POINTE HIGH SCHOOL

E Ray Rd

N 56th St

S Priest Dr

S 48th St

THE SHOPPES AT CASA PALOMA

CHANDLER PAVILIONS

W Ray Rd

AMENITIES MAP


N

Guadalupe Rd

Warner Rd

Elliot RdWarner Elliot Loop

W Ray RdE Ray Rd

E Chandler Blvd W Chandler Blvd

S M

cClinto

ck Dr

S R

ural Rd

S K

yrene Rd

AUTONATION TEMPE

BOSTON MARKET

FOOTHILLS PARK PLACE

THE SHOPPES AT CASA PALOMA

CHANDLER FASHION CENTER

CHANDLER PAVILIONS

AHWATUKEE FOOTHILLS TOWNE CENTER

PHOENIX PREMIUM OUTLETS

Financial Analysis

02


RENT ROLL

TENANT SIZE (SF) %GLAMONTHLY RENT

ANNUAL RENT

ANNUAL RENT/SF

LEASE TYPEOCCUPANCY START

CURRENT TERM END

% INCREASE

Boston Market 3,096 100% $15,748.40 $188,980.80 $61.04 Absolute NNN 8/28/2007 8/31/2025 2%

– Increases either 2% or 2x increases on CPI

– Renewal periods are 8-years, 8-years, and 10-years

–Overage rent is 9% of the gross annual sales of $1,163,157.00

$XXXXOFFERING PRICE

XX%CAP RATE

XX yrsLEASE TERM REMAINING

XXXXYEAR RENOVATED

$2,779,129.41OFFERING PRICE

6.8%CAP RATE

7 yrsLEASE TERM REMAINING

08/2007LEASE COMMENCEMENT

03 Location Overview

E Ray Rd

S 46th Pl

S 48th St

BOSTON MARKET


Location Overview

Phoenix’s retail sector continues to steadily improve in 2018. Store closures, which have been much less frequent this year, have had a negligible impact on fundamentals. Retail vacancies in the Valley are well below their historical average and rent growth is accelerating heading into 18Q4.

Overall, strong tenant demand—bolstered by robust job and population growth—has enabled absorption to outpace supply additions this cycle, a trend poised to continue into 2019. The emergence of e-commerce and evolving buying patterns have moderated retail construction in Phoenix compared to the last cycle, but this could reduce the supply-side risk that many Sun Belt metros are facing.

Phoenix is a fairly liquid retail market, and the healthy state of fundamentals has resulted in an uptick in investment in 2018. Sales volume through this year’s first three quarters has already exceeded last year’s total, and plenty of investors are coming from outside of the state.

PHOENIX, ARIZONA

AREA HIGHLIGHTS

Strategically Positioned

Anchored by Target, Big 5 and Hobby Lobby, and conveniently located in a dense retail corridor including AMC Theaters, Best Buy, Sprouts, Party City, JoAnn, Petco, and more

High Traffic Location

33,495 cars per day 186,879 cars per day via I-10

Strong Demographics

Close proximity to large employers including Intel, Wells Fargo, Bank of America, PayPal, Northrop Grumman and Microchip Technology

Active Phoenix/Chandler Location

Conveniently located off I-10 near borders of Phoenix, Chandler, and Tempe


AREA DEMOGRAPHICS

1 MILE 3 MILES 5 MILES

2018 17,821 86,634 200,257

2023 18,694 92,337 213,806

POPULATION


2018 $80,739 $102,492 $96,879

2023 $94,486 $118,770 $111,963

AVERAGE HOUSEHOLD INCOME

$


2018 7,918 35,759 79,826

2023 8,285 38,010 85,022

HOUSEHOLDS

N

3 MILES

5 MILES

1 MILE

BOSTON MARKET

PHOENIX

TEMPE

04 Tenant Profile


BOSTON MARKET

Boston Market Corporation, known as Boston Chicken until 1995, is headquartered in Golden, Colorado. It is owned by private equity firm Sun Capital Partners, which is headquartered in Boca Raton, Florida.

Boston Market was founded by Steven Kolow and Arthur Cores in December 1984 in Newton, Massachusetts. The chain expanded rapidly in the early and mid-1990s and was purchased by McDonald’s Corporation in May 2000. On August 6, 2007, McDonald’s announced plans to sell the chain to Sun Capital Partners, a transaction that was completed on August 27, 2007.

Boston Market has its greatest presence in the Northeastern United States but also has a large presence in Florida, Texas, and California. As of January 2018, the chain has approximately 450 company-owned restaurant locations in 28 states, with 14,000 employees. In the early 2000s, Boston Market operated two locations in Toronto, Ontario, Canada. In early 2002, Boston Market entered the Australian market, opening nine stores in the Sydney metropolitan area by 2004, before converting some stores to McDonald’s and quietly exiting the Australian market later that year due to competitive pressures. In June 2016, Boston Market IP Company, Ltd., an affiliate of Boston Market Corporation, signed an area development agreement with Al-Ghunaim Trading Co. Ltd. that will open dozens of Boston Market restaurants in the Middle East.

Source: Wikipedia

Tenant: Boston Market

Signer: Boston Market

Type: Corporate

Headquarters: Golden, Colorado

Tenant Profile

BOSTON MARKET

E Ray Rd

S 46th Pl

S 48th St

Jenette Bennett, [email protected]

Kidder Mathews 2555 E Camelback Rd Suite 100 Phoenix, AZ 85016

kiddermathews.com

4716 e ray road | phoenix, az...phoenix, arizona. uniquely located near the borders of phoenix,...

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