sale leaseback opportunity - loopnet › d2 › hu-nqbzm76g0mziiy0...sale leaseback opportunity...

CHRIS HOLLENBECK+1 602 224 [email protected]

Exclusively Listed By:

2555 E Camelback Rd, Suite 400Phoenix, Arizonamain +1 602 954 9000fax +1 602 253 0528

SALE LEASEBACK OPPORTUNITYPHOENIX, ARIZONA

Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ

OFFERING MEMORANDUM

EXCLUSIVELY LISTED BY:

CHRIS HOLLENBECKSenior Director

+1 602 224 [email protected]

2555 East Camelback Road, Suite 400Phoenix, Arizona 85016

Offering Statement/DisclaimerCushman & Wakefield (“Agent”) has been engaged as the exclusive agent for the sale leaseback of Richardson’s & Rokerij at 6343 & 6335 North 16TH Street, Phoenix, AZ (the “Property”),

by the owner of the Property (“Seller”).

The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this

Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest

described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express

written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed, should be registered with Cushman & Wakefield as a “Registered Potential Investor” or as “Buyer’s

Agent” for an identified “Registered Potential Investor.” The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the

confidentiality agreement furnished by Agent prior to delivery of this Offering Memorandum.

The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is

based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives,

affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or

other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither

the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information

transmitted or make available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and

conclusions without reliance upon the material contained herein.

Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves

the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with

or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not

authorized to make any representations or agreements on behalf of Seller.

Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the

Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations

thereunder have been satisfied or waived.

By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will

be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property

directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials

may be copied or otherwise reproduced without the prior written authorization of Seller or Agent or as otherwise provided in the Confidentiality and/or Registration Agreement executed

and delivered by the recipient(s) to Cushman & Wakefield.


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Table of ContentsExecutive Summary

Investment Highlights

Lease Abstract

Tenant Information

Area Information

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Executive SummaryCushman & Wakefield is pleased to offer to qualified investors a new, 10 year

absolute NNN investment leased to Richardson’s & Rokerij, two famous Arizona

restaurants on one iconic property. The new 10 year lease has annual rental

increases and no landlord obligations. The asking price is $5,500,000, which

equates to an average CAP rate of approximately 6.59% for the term of the lease.

Richardson’s and Rokerij are both owned and created by Richardson Browne and

are currently operating in Phoenix, Arizona. The founder of both restaurants also

owns the bar and restaurant known as Dick’s Hideaway off 16th St and Bethany

Home. The lease will be set up with attractive 2% annual increases with 2,

five year, renewal options. The sale includes Richardson’s, Rokerij, their shared

patio, and the C Store on the northern portion of the property. The C Store

Is currently used as storage and food prep but has the potential to provide

additional revenue.

The North Central Phoenix location is located near the affluent Phoenix Biltmore

and Paradise Valley submarkets. Within a 5 mile radius, the existing residents

are forecasted to spend in excess of $452,000,000 (esri) at restaurants and

$74,000,000 (esri) on alcoholic beverages. In addition, 28% of the population

in a one mile radius dine out at a family restaurant/ steak house more than

once a week.

Some of the major employers nearby are Merrill Lynch, UBS Financial Services,

Gallagher & Kenney law firm, and Blackrock Financial Management. The proximity

to the 51 freeway has also enabled these restaurants to be highly successful

and stable since 1988.

Property Location 6343 & 6335 N 16th StPhoenix, AZ 85016

Property Type: Freestanding Restaurant

Property Size Total: 8,775 SF

Parcel Number: 164-37-039D; 164-37-039E

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Demographics1 Mile 3 Mile 5 Mile

Population 15,151 118,653 369,386

AVG. HH Income $82,099 $80,498 $70,024

Daytime Population 15,166 152,144 244,560

Investment HighlightsOffering Price: $5,500,000

Cap Rate: 6%

• Highly desireable restaurant location in North Central Phoenix

• Absolute NNN lease by Richardson’s & Rokerij (richardsonsnm.com) for 10 years

• Year 1 NOI of $330,000.00

• 2% annual increases

• Sale includes C Store (2,080 SF) with potential for additional revenue.

• Strong real estate appreciation with high barriers to entry near the historic, affluent neighborhoods of North Central Phoenix

• Tenant financials available upon request

• Low rent to sales ratio set below 6% to keep Richardson’s & Rokerij in a healthy financial situation

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Lease Abstract Rent ScheduleProperty Location 6343 & 6335 N 16th St

Phoenix, AZ 85016

Offering Price: $5,500,000

Initial Cap Rate: 6%

Average Cap Rate: 6.59%

Tenant: Vino Di Rico LLC dba Richardson’s & Rokerij

Building Size (Rokerij): ±3,254 SF Upstairs | ±1,418 SF Downstairs

Building Size (Richardson’s): ±2,023 SF Inside | ±1,000 SF Patio

Building Size (C Store): ±2,080 SF

Land Area: ±41,933 SF

Base Term: 10 Years

Rent Commencement: Close of Escrow

Lease Expiration: 10 Years from Close of Escrow

Renewal Options: Two (2) Five (5) Year Options

Expenses: Absolute NNN

Financials: Available Upon Request

Monthly Yearly

Year 1 $27,500.00 $330,000.00

Year 2 $28,050.00 $336,600.00

Year 3 $28,611.00 $343,332.00

Year 4 $29,183.22 $350,198.64

Year 5 $29,766.88 $357,202.61

Year 6 $30,362.22 $364,346.67

Year 7 $30,969.47 $371,633.60

Year 8 $31,588.86 $379,066.27

Year 9 $32,220.63 $386,647.60

Year 10 $32,865.05 $394,380.55

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Tenant Info

The Richardson’s family of restaurants have been popular and successful establishments since the debut of Richardson’s Restaurant in 1988. The restaurant was a success due to

its hearty New Mexican inspired dishes such as carne adovada, smoked turkey enchiladas, and bacon wrapped shrimp. Richardson’s and Rokerij are known as upscale but cozy local restaurants with copper topped bars, southwestern rug clad walls, and a viga-covered patio.

Richardson’s and Rokerij are also known for the expansive collection of wines they offer. Their collection includes wines crafted in Italy, Spain, Argentina, France, Sonoma, and Napa. All can be enjoyed at Richardson’s and Rokerij’s luxurious yet rustic atmosphere.

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MARYLAND AVE

16TH

ST

4 ,369 VPD

19,2

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25

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SHAREDPATIO

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MARYLAND AVE

BETHANY HOME RD

CAMELBACK RD

16TH ST

20TH ST

12TH ST

SITE

4,369 VPD

19,224 V

PD

25,136 VPD

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MARYLAND AVE

BETHANY HOME RD

CAMELBACK RD

16TH ST

20TH ST

12TH ST

GLENDALE AVE

ESPLANADE

DOWNTOWNPHOENIX

MIDTOWNPHOENIX

SITE

SKY HARBORINTERNATIONAL

AIRPORTPHOENIX COUNTRY

CLUB

SOUTH MOUNTAINPARK

19,224 V

PD

25,136 VPD

38,130 VPD54,400 VPD

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Location & Market Summary - Metro Phoenix

Arizona and Phoenix: Outstanding for BusinessArizona is one of the fastest growing states in the country. With a median age of 35.9 years old, the state is populated by a vibrant workforce attracted to quality jobs and quality of life. The state’s population of 6.5 million people is expected to nearly double in the next two decades.

CNBC ranks Arizona among the top 5 friendliest states for business and #1 for quality and availability of workforce. Arizona is home to 15 institutions of higher learning, including University of Arizona, Northern Arizona University and the Thunderbird School of Global Management. Phoenix is home to Arizona State University – not only the state’s largest, but also the nation’s largest university.

Phoenix Anchors the StatePhoenix is also the 6th largest metro area in the United States. Its strategic Southwest location has made it a major business and distribution hub for aerospace, high-technology, logistics, financial services, bioscience and sustainable technology companies. It is well known for its warm climate, beautiful setting and great cultural and recreational amenities.

The real estate market in the greater Phoenix area is deep and diverse, with more than 289 million square feet of industrial space among all submarkets and nearly 97 million square feet of office space.

Rapidly Improving Regional EconomyPhoenix has resumed its pre-recession pattern of high growth:

• Recent employment growth was 2.3%, ranking 8th in the nation behind only technology and energy dominated markets

• Housing and construction industries are significantly improving, with housing permits in 2014 and 2015 expected to increase 200% - 300% from market lows

• Home price increases are leading the nation

• 4,200 apartment units are under construction with 20,000 more planned

Phoenix has resumed its pre-recession pattern of high growth

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Location & Market Summary - Metro Phoenix

Phoenix’s historically strong housing, construction and real estate industries are just beginning to improve. These industries are now poised for a strong rebound, adding strong potential for Phoenix to regain its position as one of the leading growth markets in the nation.

Phoenix has a Vibrant, Diversified EconomyPhoenix has a highly diversified base of industries, led by aerospace, high-tech manufacturing, distribution/ logistics, financial services and corporate/regional headquarters. Phoenix has recently seen many companies move or expand from California, including eBay/PayPal, Amazon.com, Dunn Edwards, Power One, and American Presidential Lines. Phoenix also is ranked among the top in the country for its solar/renewal energy sector, and has a rapidly growing healthcare/biomedical industry.

• Inc. Magazine named Phoenix one of the top 20 cities in the country for start-up companies; Phoenix ranks third in the country for entrepreneurs per 1,000 people

• Phoenix is top 10 for financial services employment

• Major data processing, credit card and customer service companies are attracted by Greater Phoenix’s telecommunications infrastructure, predictable climate, and low catastrophic risk – no earthquakes, tornados, coastal flooding, or hurricanes

• Arizona has some of the world’s largest solar generation projects

MAJOR PHOENIX METRO EMPLOYERS

AEROSPACE AND AVIATIONHoneywellBoeingCessnaGeneral DynamicsHawker BeechcraftOrbital Sciences Corporation

HIGH-TECH MANUFACTURING/DISTRIBUTIONIntelAvnetFreescale SemiconductorMicrochip TechnologyIridium CommunicationsInsight Enterprises

DISTRIBUTION/LOGISTICS CENTERSAmazon.comDick’s Sporting GoodsGap, Inc.TargetMacy’sWalmart

FINANCIAL/BUSINESS/DATA SERVICESJP Morgan ChaseBank of AmericaAmerican ExpresseBay/PayPalVanguard SecuritiesCharles SchwabUberNorthern TrustState Farm Regional Headquarters

CORPORATE/REGIONAL HEADQUARTERSFreeport McMoran Copper and GoldUS AirwaysApollo Group/University of PhoenixPetSmartDial Corporation/HenkelGo Daddy

HEALTHCARE/BIOTECH/RENEWABLE ENERGYMayo ClinicUnited HealthcareTGenInternational Genomic ConsortiumFirst SolarKyocera

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sale leaseback opportunity - loopnet › d2 › hu-nqbzm76g0mziiy0...sale leaseback opportunity...

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