Freddy s REPRESENTATIVE PHOTO Meridian, ID New Construction idaho falls NNN Opportunity 355 N. Woodruff Avenue, Idaho Falls, ID SEAN MACK smack@capitalpacific.com (503) 675-8378 ID BRE# SP34992 KEVIN ADATTO kadatto@capitalpacific.com (503) 675-7726 ID BRE# SP39857 MICHAEL HORWITZ mhorwitz@capitalpacific.com (503) 675-8371 ID BRE# DB39718 PETER DUNN pdunn@capitalpacific.com (503) 607-0197 ID BRE# SP41756
FREDDY S FROZEN CUSTARD AND STEAKBURGERS IS A SINGLE TENANT ABSOLUTE NET LEASED PAD TO A GROCERY ANCHORED SHOPPING CENTER IN IDAHO FALLS, IDAHO. Investment Highlights SURROUNDING RETAIL This offering presents an opportunity to acquire a Freddy s Frozen Custard building that is currently under construction with a scheduled completion date of December 2014. The property offers a new 15-year NNN lease with annual 1.5% rental increases and two 10- year option periods. Freddy s Frozen Custard Idaho Falls is located at the southwest corner of the intersection of N Woodruff Ave and Caribou Street. The property is also a pad to a WinCo Foods grocery anchored shopping center. PRICE: $2,416,723 CAP: 6.5% RENTABLE SF... 3,328 SF SITE AREA... 43,560 SF LEASE TYPE........ NNN YEAR BUILT... 2014 ADDRESS: 355 N. Woodruff Avenue, Idaho Falls, ID FREDDY S 2
Investment Highlights REPRESENTATIVE PHOTO PERSONAL GUARANTEES Lease is signed by a strong entity and has two personal guarantees BRAND NEW 15 YEAR LEASE 1.5% Annual rental increases NEW 15-YEAR LEASE Franchisee executed a 15-year lease that commences at completion of building construction with 1.5% annual rental increases in both the primary term and two 10-year option periods. Operator s rent as a percentage of sales for existing locations is less than 6%. NEW CONSTRUCTION Construction is expected to be completed in December 2014 NNN LEASE PROVIDES PASSIVE MANAGEMENT Tenant is responsible for taxes, insurance, utilities, and repair and maintenance of the roof and all structural elements of the building REGIONAL HUB Idaho Falls serves as a hub to all of eastern Idaho and much of western Montana, due to its relative economic vitality, high quality of life, and proximity to world-class outdoor recreation, it is often featured in various publications lists of best places to live. NATIONAL RECOGNITION Idaho Falls was named by Business Week as one of the 2010 List of Best Places to Raise Kids, Forbes.com selected Idaho Falls as one of the 2010 Best Small Places for Business & Careers,and Money.CNN.com included Idaho Falls as one of its Top 100 Cities in 2010. FREDDY S 3
Aerial 20 Falls Valley Compass Academy Seminary H&R BLOCK Holy Rosary S Holmes Avenue Emerson High School Linden Park S Woodruff Avenue 1st Street TETON VILLAGE Hawthorne W 17th Street E 17th Street Edgemont AMMON TOWN CENTER eh igh GRAND TETON PLAZA S Hitt Road GRAND TETON MALL ws ton SY ello BOISE N Hitt Road Compass Academy BUS wa y Aaron s Albertsons Bed Bath & Beyond Best Buy Big 5 Big Lots Big O Tires Dillard s Dollar Tree BU 20 S Harbor Freight W Bro Tools adw ay Jack in the Box Str eet JCPenny 15Kohl s Lowe s Macy s Michaels O Reilly Auto Pa Papa John nc he Petco ri D riv PetSmart e Ross Sam s Club Sears ShopKo Smith s Sonic Sports Authority Subway Target TJ-Maxx Toys R Us Verizon Walgreens Walmart WinCo Foods N Woodruff Avenue PINECREST MUNICIPAL GOLF COURSE 20 OTHER RETAILERS IN THE AREA Longfellow Hillcrest High School SPECTRUM W Sunnyside Road E Sunnyside Road FREDDY S 4
Income & Expense PRICE $2,416,723 Price Per Square Foot: $726.18 Building Size (SF): 3,328 Site Area (SF): 43,560 Capitalization Rate: 6.50% Year Built: 2014 STABILIZED INCOME Per Square Foot Rent $47.20 $157,087 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses $0.00 EQUALS NET OPERATING INCOME $157,087 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. REPRESENTATIVE PHOTO FREDDY S 5
Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT Yearly Rent/FT Freddy's 3,328 1 $157,087 $13,091 $157,087 $3.93 $47.20 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Option 1 16 25 Option 2 26 35 $13,287 $159,444 $3.99 $47.91 $13,486 $161,835 $4.05 $48.63 $13,689 $164,263 $4.11 $49.36 $13,894 $166,727 $4.17 $50.10 $14,102 $169,228 $4.24 $50.85 $14,314 $171,766 $4.30 $51.61 $14,529 $174,343 $4.37 $52.39 $14,747 $176,958 $4.43 $53.17 $14,968 $179,612 $4.50 $53.97 $15,192 $182,306 $4.56 $54.78 $15,420 $185,041 $4.63 $55.60 $15,651 $187,817 $4.70 $56.44 $15,886 $190,634 $4.77 $57.28 $16,124 $193,493 $4.85 $58.14 1.5% Annual increases 1.5% Annual increases Current Totals: 3,328 $157,087 $13,091 $157,087.00 $3.93 $47.20 *Projected opening date is December 2014 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. BETHEL JUNCTION FREDDY S 6
SURROUNDING RETAIL PHOTOS Lease Abstract PREMISES/TERM TENANT Freddy s Frozen Custard SQUARE FEET 3,328 SF EXPECTED RENT COMMENCEMENT December 2014 OPTIONS Two 10-year with1.5% annual rental increases REIMBURSEMENTS This is a standard NNN lease, Tenant shall pay directly for taxes, insurance and Common Area Maintenance. TENANT REPAIRS Tenant is responsible for maintaining, repairing and replacing all structural elements of the Building, including the exterior of the Property. FREDDY S 7
Freddy s REPRESENTATIVE PHOTOS LEASE SIGNED & GUARANTEED BY VERY STRONG FRANCHISEE ABOUT FREDDY S FROZEN CUSTARD Freddy s Frozen Custard & Steakburgers is a quick-service restaurant chain based in Wichita, Kansas. The company opened its doors in 2002, franchised in 2004, and now there are currently 129 Freddy s restaurants across more than 20 states. From sandwiches to sundaes, Freddy s makes food fresh to order. Freddy s Frozen Custard has again been recognized by Franchise Times Magazine, this time on its inaugural Fast and Serious list in the March issue. The list uses a 10-point formula to identify fast-growing franchise systems that also have staying power. It is based on three years of impressive unit and sales growth, and includes brands in other industries, not just restaurants. For 2013, Freddy s was again named among Entrepreneur Magazine s Franchise 500, repeated its recognition by QSR magazine as one of four Rising Stars in the Best Franchise Deals issue, Franchise Times Magazine s Next 300 Franchise Chains and was included among Inc. Magazine s 500/5000 list of Fastest Growing Private Companies. In 2012, besides those recognitions repeated in 2013, Freddy s was named one of Business Insider s 8 Better Burger Chains Poised to Conquer America. ABOUT FRANCHISEE The franchisee is an investor group of very strong guarantors (ask agent for more details) who have a 40-unit franchise agreement with Freddy s in Arizona, Utah, Montana, and Idaho. They have been operating on behalf of this franchise for over 3 years. They have 7 open locations in Arizona, Utah, Montana, and Idaho with leases signed to have over 10 total stores next year, and intend to open a total of 20 stores within 3 years. There are two separate personal guarantees on the lease. FREDDY S 8
Market Intel & Demos IDAHO FALLS AREA OVERVIEW ECONOMY BOISE METROPOLITAN AREA OVERVIEW Idaho Falls is the county seat of Bonneville County, Idaho, United States, and is the largest city in Eastern Idaho Falls hosts the headquarters of the United Potato Boise Idaho. is the It is capital the state s and most largest populous city outside city of the Boise state of metropolitan Idaho, as well area as the and county the third-largest seat of Ada County. metro Located area on Growers the Boise of Idaho and District 7 of the Idaho Department of River, behind it anchors Boise City-Nampa the Boise City-Nampa and Coeur metropolitan d Alene, which area is and connected is the largest to the city larger between Spokane, Salt Lake Washington. City, Utah and The Portland, Health Oregon. and Welfare. It is the home to several small to medium As city of serves the 2010 as Census, a hub to the all population of eastern of Idaho Boise was and 205,671. much of It western is also the Montana. 99th largest Due U.S. to city its by relative population. economic The 2012 sized U.S. Census national corporations such as North Wind, Inc., Press-A- Population vitality, high Estimates quality that of life, 212,303 and proximity people reside to world-class within the outdoor city. The recreation, Boise metropolitan is often area featured is home in to various about 616,500 Print, people and Melaleuca, Inc. Idaho Falls was ranked number 16 and publications is the most lists populous of best metropolitan places to live. area Idaho in Idaho, Falls containing was named the by state s Business three Week largest as cities; one of Boise, the Nampa, 2010 List and Meridian. of the 30 bet places in the nation to find a job, while boasting of Best Places to Raise Kids. In addition, Forbes.com selected Idaho Falls as one of the 2010 Best Small an unemployment rate of 6%, well below national average. Places for Business & Careers. Also, Money.CNN.com included Idaho Falls as one of their Top 100 Cities in 2010. SURROUNDING POPULATION 3-Miles 5-Miles 2010 65,387 91,755 2013 67,357 94,697 2018 70,798 99,884 2013 HOUSEHOLD INCOMES 1-MIle 3-Miles 5-Miles Average $43,929 $54,886 $59,981 84 Boise Twin falls FREDDY S 9
Construction Details FOUNDATION EXTERIOR WALLS ELECTRICAL PLUMBING Concrete footings with 4 on grade concrete slab Metal stud with insulation, exterior skin is a combination of EIFS and brick veneer 208/120 volt service Main water service is a 1.5 line AMERICANS WITH DISABILITIES Property is ADA compliant. HVAC Three HVAC units- Two 7.5 tons and one 12.5 tons ROOF 60mm Thermoplastic Membrane Roofing with 20-year warranty PARKING 38 parking stalls with a cross access agreement for parking lot with Mattress Firm REPRESENTATIVE PHOTO FREDDY S 10
REPRESENTATIVE PHOTO A unique HUMAN RESULTS-DRIVEN client experience THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS [ www.capitalpacific.com ] SEAN MACK smack@capitalpacific.com (503) 675-8378 ID BRE# SP34992 KEVIN ADATTO kadatto@capitalpacific.com (503) 675-7726 ID BRE# SP39857 MICHAEL HORWITZ mhorwitz@capitalpacific.com (503) 675-8371 ID BRE# DB39718 PETER DUNN pdunn@capitalpacific.com (503) 607-0197 ID BRE# SP41756