CHRIS HOLLENBECK +1 602 224 4475 [email protected] Exclusively Listed By: 2555 E Camelback Rd, Suite 400 Phoenix, Arizona main +1 602 954 9000 fax +1 602 253 0528 SALE LEASEBACK OPPORTUNITY PHOENIX, ARIZONA
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.
Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ
3
Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ
Table of ContentsExecutive Summary
Investment Highlights
Lease Abstract
Tenant Information
Area Information
4
Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ
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 (Rokerij): ±3,000 SF
Property Size (Richardson’s): ±2,000 SF Inside±1,000 SF Patio
Property Size Total: 8,775 SF
Parcel Number: 164-37-039D; 164-37-039E
5
Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ
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
6
Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ
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
7
Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ
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.
8
Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ
9
Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ
MARYLAND AVE
16TH
ST
4 ,369 VPD
19,2
24 V
PD
25
,13
6 V
PD
SHAREDPATIO
10
Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ
MARYLAND AVE
BETHANY HOME RD
CAMELBACK RD
16TH ST
20TH ST
12TH ST
SITE
4,369 VPD
19,224 V
PD
25,136 VPD
11
Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ
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
12
Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ
B E T H A N Y H O M E R D
M A R Y L A N D AV E
12T
H S
T
16T
H S
T
SITE
25,1
36 V
PD
28,171 VPD
19,2
24 V
PD
149
,038
VP
D
13
Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ
·r
·r
·r
·r
·r
·r
·r·r
·r
·r
·r·r
·r
·r
·r
MIL
LER
RD
APAC
HE R
D WAT
SON
RD
RAIN
BOW
RD
DEAN
RD
AIRP
ORT
RD
JACK
RABB
IT T
RL
PERR
YVIL
LE R
D
CITR
US R
D
COT T
ON L
N
ESTR
ELLA
PKW
Y
SAR I
VAL
AVE BU
LLAR
D AV
E
LITC
HFIE
LD R
D
DYSA
RT R
D
EL M
IRAG
E RD
AVON
DALE
BLV
D
107T
H AV
E
99TH
AVE
91ST
AVE
83RD
AVE
75TH
AVE
67TH
AVE
VA N B UR EN ST
BUCK EYE R D
LOWE R B UCK EYE RD
BR OA DWAY RD
SOU THE R N AV E
BA SE L I NE RD
DOBB I NS RD
THO MA S R D
IN DI A N SCH OOL R D
CA M EL BA CK R D
BE THA N Y HO ME R D
GL E NDA L E A VE
NOR THE R N A VE
59TH
AVE
51ST
AVE
43RD
AVE
35TH
AVE
211T
H AV
E
CROZ
IER
RD
227T
H AV
E
203R
D AV
E
187T
H AV
E
171S
T AV
E
DA L E L N
JOMA X RD
163R
D AV
E
JOMA X RD
HA PPY VA L L EY R D
PIN N ACL E PE A K R D
UNI ON HI L LS DR
BE LL R D
GR E EN WAY R D
THU NDE R BI RD R D
BULL
ARD
AVE
REEM
S RD
SAR I
VAL
AVE
19TH
AVE
7TH
AVE
7TH
ST 16TH
ST
CAVE
CRE
EK R
D
CAVE
CRE
EK R
D
LONE MO UNTA IN RD
DIX IL E TA DR
DYN A MI TE B LVD
JOMA X RD
SCOT
TSDA
LE R
D
TATU
M B
LVD
40TH
ST
56TH
ST
CA CTUS RD
SH EA B LV D
136T
H ST
144T
H ST
152N
D ST
160T
H ST
168T
H ST
SCOT
TSDA
LE R
D
HAYD
EN R
D56TH
ST
48TH
ST
CA M EL BA CK R D
LI N COL N DRMCDON A LD D R
CH A PA RR A L R D
IN DI A N SCH OOL R D
THO MA S R D
MCDOWE L L RD
MCKE L L IPS R D
40TH
ST24
TH S
T
32ND
ST
MOU
NTAI
N V I
EW R
D
GOLD
FIEL
D RD
TOM
AHAW
K RD
IDAH
O RD
IRON
WOO
D DR
MER
IDIA
N RD
SIGN
AL B
UTTE
RD
CRIS
MON
RD
ELLS
WOR
TH R
D
BR OWN RD
UNI VE R SI TY DRMA IN ST
BR OA DWAY RD
SOU THE R N AV E
BA SE L I NE RD
GREE
NFIE
LD R
D
VAL
VIST
A DR
LIND
SAY
RD
GILB
ERT
RD
COOP
ER R
D
MCQ
UEEN
RD
ARIZ
ONA
AVE
ALM
A SC
HOOL
RD
DOBS
ON R
D
MCC
LINT
OCK
DR
RURA
L RD
KYRE
NE R
D
PRIE
ST D
R
GUA DA LU PE R D
EL L IOT R D
WAR N ER RD
RAY R D
CH A NDL E R B LVD WI L LI A MS FIE L D R D
PECOS R D
GE R MA NN RD
HIGL
EY R
D
RECK
ER R
D
POW
ER R
D
SOSS
AMAN
RD
OCOTI LL O RD
CH A NDL E R H E IG HT S R D
VINE
YARD
RD
MER
IDIA
N RD
SURPRISE
AVONDALE
GOODYEAR
GLENDALE
SCOTTSDALE
CAVE CREEK
CHANDLER
MESA
TEMPE
GILBERT
PHOENIX
FOUNTAINHILLS
PARADISEVALLEY
SUN CITY WEST
SUN CITY
PEORIA
ANTHEM
QUEENCREEK
TOLLESON
14
Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ
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
15
Richardson’s & Rokerij | Sale Leaseback OpportunityPHOENIX, AZ
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
16