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Offering Memorandum
Actual Location
Starbucks & Subway 1340 East 71st Street | Tulsa, Oklahoma
Price: $1,472,000Cap: 7.0%
Actual Location
Actual Location
Page 2 Chad Byerly | [email protected] THE NET LEASE AUTHORITY®
Confidential DisclaimerThis Confidential Memorandum has been prepared by Stan Johnson Company (“SJC”) and is being furnished to you solely for the purpose of your review of the commercial property located at 1340 East 71st Street | Tulsa, OK 74136 (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of Stan Johnson Company (“Broker”).
By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to SJC as soon as practicable together with all other materials relating to the Property which you may have received from SJC; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of SJC.
This Confidential Memorandum has been prepared by SJC, based upon certain information pertaining to the Property and any information obtained from SJC to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by SJC to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluating this offering without reliance upon SJC, the Broker or any of their respective affiliates or any of the information set out in the Materials. Neither SJC, the Broker, nor any of their respective affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred.
SJC, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. The terms and conditions described herein are subject to change without notice.
This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of security. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum you agree to release SJC and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. SJC reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time.
Offered Exclusively ByChad Byerly
Associate Director [email protected]
In association with: Stan L. Johnson
OK license #:068607
Stan Johnson Company 6120 S. Yale Ave | Suite 813
Tulsa, OK 74136 P: 918.494.2690 | F: 918.494.2692
www.stanjohnsonco.com
Page 3 Chad Byerly | [email protected] THE NET LEASE AUTHORITY®
Table of ContentsAbout the Investment
Pricing & Property Overview 4
Starbucks – Tenant Overview, Lease Abstract & Rent Schedule 5
Subway – Tenant Overview, Lease Abstract & Rent Schedule 6
Location Information
Location Overview 7
Surrounding Area 8
Area Maps 9 - 10
Property Photos 11 - 12
Demographics 13
Page 4 Chad Byerly | [email protected] THE NET LEASE AUTHORITY®
Pricing Overview
1340 East 71st Street | Tulsa, OK 74136
Offering Price: $1,472,000
Offering Cap Rate: 7.0%
NOI: $103,070
Tenants: Starbucks Subway
N
Property Overview
Building Size: +/- 3,580 SF
Land Area: +/- .61 Acres
Year Built: Built 1983, renovated 2004/Planned 2015
Encumbrances: Delivered Free and Clear
Building: New roof in 2012
Drive-Thru: Both tenants have the convenience of and feature drive thru windows
Occupancy: Starbucks and Subway have been occupying space at this location for over ten (10) years
Page 5 Chad Byerly | [email protected] THE NET LEASE AUTHORITY®
Lease Abstract
Tenant: Starbucks
Location: 1340 East 71st Street Tulsa, OK 74136
Lease Commencement:
May 2004
Lease Expiration: February 28, 2025
Lease Term Remaining:
10.5 years
Construction: Built 1983, renovated 2004 Planned 2015
Square Feet: +/- 1,830 SF
Land Area: +/- 0.61 Acres
Current Rent: $48,806 Expires March 2015
Rent Per SF: $26.67 Expires March 2015
Options: Four (4), Five (5) year options
Increases: 10% increase in each option period
Expenses: Landlord pays all expenses and is reimbursed by tenant for its share of CAM, taxes and insurance
*In April 2014, tenant committed to a new 10 year lease term starting March 1, 2015. Sale price is based on the new projected rent of $56,126.
Note 1 – Tenant has option to terminate the lease at any date with at least 120 days written notice.
Note 2 – Starbucks in 2015 is projected to invest roughly $300K of their own dollars on building improvements as a result of tenant extending the lease.
Rent Schedule
Years Rent PSF Annual Rent Monthly Rent
Current Term 1 - 5 $30.67 $56,126* $4,677
6 - 10 $33.67 $61,616 $5,135
Option Period 1 11 - 15 $37.04 $67,778 $5,648
Option Period 2 16 - 20 $40.74 $74,556 $6,213
Option Period 3 21 - 25 $44.81 $82,012 $6,834
Option Period 4 26 - 30 $49.27 $90,213 $7,518
Tenant OverviewStarbucks Corporation is an American global coffee company and Italian-style coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 19,972 stores in 60 countries, including 12,937 in the United States, 1,273 in Canada, 971 in Japan, 790 in Great Britain, 657 in China, 453 in South Korea, 356 in Mexico, 276 in Taiwan, 200 in the Philippines, 158 in Thailand and 1 in India.
Starbucks locations serve hot and cold beverages, whole-bean coffee, microground instant coffee, full-leaf teas, pastries, and snacks. Most stores also sell pre-packaged food items, hot and cold sandwiches, and items such as mugs and tumblers. Many of the company’s products are seasonal or specific to the locality of the store.
As of March 30, 2014 Starbucks Corporation reported total revenues of $15.66 billion, a net income of $2.62 billion and a net worth of $4.95 billion. The company currently holds an A- credit rating with Standard & Poor’s.
Page 6 Chad Byerly | [email protected] THE NET LEASE AUTHORITY®
Lease Abstract
Tenant: Subway
Location: 1340 East 71st Street Tulsa, OK 74136
Lease Commencement:
March 2004
Lease Expiration: March 2017
Lease Term Remaining:
Three (3) years (approx.)
Year Built: 1983, renovated 2004
Square Feet: +/- 1,750 SF
Land Area: +/- 0.61 Acres
Current Rent: $46,944
Rent Per SF: $26.83
Options: Three (3), Five (5) year options
Renewal Options: One (1), Five (5) year option
Increases: 10% increase in each option period
Expenses: Landlord is responsible for roof, structure, parking, HVAC replacement, insurance and CAM
Rent Schedule
Years Rent PSF Annual Rent Monthly Rent
Option Period 2 (Current)
10 - 14 $26.83 $46,944 $3,912
Option Period 3 15 - 19 $29.35 $51,368 $4,281
Tenant OverviewSUBWAY® is an American fast food restaurant franchise that primarily sells submarine sandwiches (subs) and salads. Subway is one of the fastest growing franchises in the world with 40,000 restaurants in 102 countries and territories. It is the largest single-brand restaurant chain and the largest restaurant operator globally.
SUBWAY Restaurant’s main operations office is in Milford, Connecticut; five regional centers support Subway’s growing international operations. The regional offices for European franchises are located in Amsterdam, Netherlands; the Australia and New Zealand locations are supported from Brisbane, Australia; the Asian locations are supported from offices located in Beirut, Lebanon, and Singapore; and the Latin America support center is in Miami, Florida.
SUBWAY Restaurants is Cofounded by Fred DeLuca and Dr. Peter Buck in 1965, their partnership marked the beginning of a journey and paved the way for thousands of entrepreneurs to build and succeed in operating their own business.
This location is owned and operated by Doctor’s Associates, Inc., a franchise for Subway. This operator has been in the Subway business for approximately 15 years and has operated multiple, successful Subway units in the Tulsa MSA.
Page 7 Chad Byerly | [email protected] THE NET LEASE AUTHORITY®
Downtown, Las Vegas, NV
Location OverviewTulsa is the second-largest city in Oklahoma and 45th-largest city in the United States. Tulsa has a population of 391,906 and is the principal municipality of the Tulsa Metropolitan Area, a region with 955,866 residents in the MSA (2012). The city serves as the county seat of Tulsa County, the most densely populated county in Oklahoma, and extends into Osage, Rogers, and Wagoner counties.
The city’s historical residential core lies in an area known as Midtown, containing upscale neighborhoods built in the early 20th century. A large portion of the city’s southern half, including the area where the subject property is located, has developed since the 1970s. This region, marked by secluded homes and suburban neighborhoods, contains one of the state’s largest shopping malls, Woodland Hills Mall, as well as Southern Hills Country Club, and Oral Roberts University.
The subject property is located off of E 71st Street (34,159 VPD), a heavily trafficked thoroughfare that runs through the heart of South Tulsa, and is in between S Lewis Avenue (28,868 VPD) and Riverside Drive (37,480 VPD). Located along Riverside Drive is the new state-of-the-art River Spirit Casino. This $195 million dollar casino features the latest in high-tech machines, casual and fine dining and free live entertainment. Coming soon to this area is the $250 million dollar expansion that will soon become the Jimmy Buffett’s Margaritaville Casino and Restaurant; just south of the subject property.
Other nearby retail tenants include: QuikTrip, Walgreens, McDonald’s, Burger King, IHOP, Qdoba, Office Depot, Bank of America, Walmart and more.
ORU Mabee Center River Spirit Casino
Riverside Drive
Tulsa Hills Shopping Center Tulsa Hills Shopping Center
Page 8 Chad Byerly | [email protected] THE NET LEASE AUTHORITY®
The WALK in Tulsa Hills a retail centerAt the southeast intersection of Highway 75 and 81st Street in…..TULSA, OKLAHOMA
Presentation by: TERRY G. MOORE [email protected]
972.968.0000or nationwide at 1.800.968.9623
GARRETT MOORE COMPANY a c o l l a b o r a t i o n o f r e a l e s t a t e s e r v i c e s
14860 Montfort, Suite 104, LB 27 ♦ Dallas, Texas 75254 USA ♦ t: 972.968.0000 ♦ f 972.968.0610 Member ICSC…….International Council of Shopping Centers
www.GarrettMooreCompany.com
The Walk in Tulsa Hills
Tuscany Hills
Hyde Park Tulsa Hills
The Stonebrooke Community
Surrounding AreaThe retail corridor located southwest of the subject property is known as Tulsa Hills Shopping Center. It is Tulsa’s largest retail development since Woodland Hills Mall, hosting giant retailers, restaurants, technology outlets and speciality shops. The $105 million retail center is anchored by Target, Belk and Lowe’s. Other retailers include: Dick’s Sporting Goods, Marshalls, Ulta, Best Buy, Ross, Books-A-Million, Bed Bath and Beyond, Mcdonald’s, Chick-fil-a, Arby’s, Chili’s, Panera Bread, Cracker Barrel, Panda Express, and many more.
The Walk at Tulsa Hills, a $32.5 million, 23-acre development in the works since at least 2010 at 81st Street and U.S. 75 immediately south of Tulsa Hills shopping center has new life under a new developer who plans a March 2014 groundbreaking.
The development, which will connect directly to Tulsa Hills, is expected to feature a 47,000-square-foot movie theater, a grocery store, restaurant space and an “outdoor living store.
The project, eyed for completion in October 2014, is expected to create 500 permanent jobs, generate $50 million in gross sales and contribute nearly $1.2 million annually to the city in sales tax revenue.
The Stonebrooke Community is a 141 acre master planned neighborhood with all the elements for a successful residential living environment. Stonebrooke has four distinct phases, separated by a 30 plus acre, park-like greenbelt which includes 4 lakes, natural creeks and paved walking trails that connect with the community pool, clubhouse and playground. Amenities also include sidewalks, security cameras, Homeowner’s Association, rustic covered bridge, Architectural Review committee, and beautifully landscaped entries with walls of brick and stone.
Tuscany Hills Apartment is Tulsa’s newest in luxury living. The complex offers a fully equipped fitness center and a large, modern swimming pool. The apartments offer convenience of washer/dryer connections.
Hyde Park Tulsa Hills is Tulsa’s resort style community for active adults 55 + featuring luxury low maintenance single family homes. The Hyde Park lifestyle boasts an amazing $2 Million Clubhouse offering extensivere creational activities
The combination of Jenks School System and the City of Tulsa utilities/public services make this up-and-coming area an extremely desirable location with easy access to all parts of Tulsa, making for short commutes to most employment locations. It is conveniently located close to Tulsa’s newest shopping center, Tulsa Hills, and within 2 miles of I-44, the Creek Turnpike, and Highway 75.
Page 9 Chad Byerly | [email protected] THE NET LEASE AUTHORITY®
Open Bible Fellowship
SUBJECT
Willbros Engineers
Jewish Community Day School
Utica Park Clinic
Victory Christian
CenterOral Roberts University &
Mabee Center
Oklahoma Surgical Hospital
71ST STREET 30,293 VPD
81ST STREET 17,184 VPD
LEWIS A
VE 28,868 V
PD
RIVERSIDE PKY 37,480 VPD
71ST STREET 34,159 VPD
71ST STREET 34,159 VPD
Dish Network
Office Bldg.
Area Map
River Oaks
Business Park
Page 10 Chad Byerly | [email protected] THE NET LEASE AUTHORITY®
SUBJECT
River Spirit Casino
Richard L. Jones, Jr Airport
Tulsa Hills Shopping
Center
71ST STREET 36,034 VPD
Arkansas River
Area Map
US 75 52,237 V
PD
RIVERSIDE PKWY 32,870 VPD
Page 11 Chad Byerly | [email protected] THE NET LEASE AUTHORITY®
Actual Location Actual Location
Actual Location Actual Location
Page 12 Chad Byerly | [email protected] THE NET LEASE AUTHORITY®
Actual Location
Actual Location
Actual Location
Actual Location
Page 13 Chad Byerly | [email protected] THE NET LEASE AUTHORITY®
Demographics 1340 E 71ST ST, TULSA, OK 74136 0 - 1 miles % 0 - 3 miles % 0 - 5 miles %
Population
2019 Projection 13,388 66,542 167,875
2014 Estimate 13,198 65,619 163,239
2010 Census 13,133 65,259 160,186
Growth 2010 - 2014 0.50% 0.55% 1.91%
Growth 2014 - 2019 1.44% 1.41% 2.84%
Households
2019 Projection 6,329 30,043 73,457
2014 Estimate 6,247 29,499 71,429
2010 Census 6,228 29,198 70,149
Growth 2010 - 2014 0.29% 1.03% 1.83%
Growth 2014 - 2019 1.31% 1.85% 2.84%
2014 Est. Population by Single Classification Race 13,198 65,619 163,239
White Alone 6,414 48.60 45,821 69.83 124,116 76.03
Black or African American Alone 2,968 22.49 7,123 10.86 11,943 7.32
American Indian and Alaska Native Alone 775 5.87 3,443 5.25 8,385 5.14
Asian Alone 819 6.21 1,917 2.92 3,864 2.37
Native Hawaiian and Other Pacific Islander Alone 25 0.19 75 0.11 108 0.07
Some Other Race Alone 1,115 8.45 3,089 4.71 5,475 3.35
Two or More Races 1,083 8.21 4,151 6.33 9,347 5.73
2014 Est. Average Household Income $40,532 $63,838 $73,807
2014 Est. Median Household Income $27,818 $41,653 $48,295
Chad Byerly Associate Director
In association with: Stan L. Johnson
OK license #:068607
Stan Johnson Company 6120 S. Yale Ave | Suite 813
Tulsa, OK 74136 P: 918.494.2690 | F: 918.494.2692
www.stanjohnsonco.com
The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notice.
