Offering Memorandum - LoopNet · 7 Jaker's Taco Bell - Boise (Meridian), ID Freddy's Frozen Custard Arby's Ground Lease Black Bear Diner Taco Bell Matrress Firm Pawn 1 Average Cap

JAKER'SMeridian, ID

Offering Memorandum

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to

be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other

person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to

provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of

interest in the subject property. The information contained herein is not a substitute for a thorough due diligence

investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with

respect to the income or expenses for the subject property, the future projected financial performance of the

property, the size and square footage of the property and improvements, the presence or absence of contaminating

substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the

improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or

intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure

has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not

verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding

these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the

information provided. All potential buyers must take appropriate measures to verify all of the information set forth

herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016

Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in

this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply

affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or

subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for

the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

JAKER'S

Meridian, ID

ACT ID X0010616

N E T L E A S E D D I S C L A I M E R

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will

not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee,

warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before

completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus &

Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance

of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to

your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal

and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not

a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based

on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any

guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in

whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting

his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a

replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential

replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost,

expense, or liability arising out of your investigation and/or purchase of this net leased property.

4

OFFERING SUMMARY

Price $3,375,000

Net Operating Income $202,658

Capitalization Rate – Current 6.00%

Capitalization Rate – Year 2017 6.00%

Price / SF $477.00

Rent / SF $28.64

Lease Type NNN

Gross Leasable Area 7,075 SF

Year Built / Renovated 2005

Lot Size 1.78 acre(s)

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

#

FINANCING

Loan Amount $2,025,000

Loan Type Financed - New Loan

Loan to Value 60.00%

Down Payment 40% / $1,350,000

Interest Rate / Amortization 4.40% / 25 Years

Annual Loan Payment $133,692

Net Cash Flow After Debt Service 5.10% / $68,966

Cash on Cash Return 5.11%

Total Return 8.50% / $114,468

JAKER'S

5

JAKER'S

5

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER# OF EMPLOYEES

*

HP 4,913

Scentsy Inc 1,026

Blue Cross 878

Walmart 690

US Post Office 559

McDonalds 533

Ada County Sheriff Department 530

Ada West School District 493

Lowes 450

Power Engineers Incorporated 400

Kona Grill Inc 367

Costco 350

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2015 Estimate Pop 3,372 96,358 212,628

2010 Census Pop 3,035 85,867 189,802

2015 Estimate HH 1,177 33,981 76,138

2010 Census HH 1,060 30,402 68,223

Median HH Income $63,598 $60,419 $59,848

Per Capita Income $28,525 $26,805 $26,982

Average HH Income $80,722 $75,781 $74,931

* # of Employees based on 5 mile radius

6

JAKER'S

PROPERTY PHOTOS

5

JAKER'S

#

OFFERING SUMMARY

Single Tenant NNN Restaurant

A Build to Suit for this Tenant - 20 Year Lease Commenced April 13, 2007

Two Percent Annual Rent Increases

Located on 1.37 Acres, and Surrounded by Many National Retailers

1/2 Mile from I-84 which has Traffic Counts Exceeding 72,000

INVESTMENT HIGHLIGHTS

Marcus & Millichap is proud to offer this exceptional property for sale in Meridian, Idaho. The tenant in this property is a casual dining restaurant "Jakers", named after it's

founder, Jake Jones. In 2007 the Seller built this property as a build-to-suit for the Jaker’s chain. The investment is located in the heart of Meridian, near the intersection of

North Eagle Road and East Pine Avenue. It is extremely well-positioned within the most popular retail corridor. Jaker’s does a tremendous business and is a favorite

throughout the Meridian community as offering a "Good Bang for the Buck", serving ample portions of very good food. The Operator, opened his first restaurant back in

1975 and currently owns and operates five locations in the Intermountain West Region. The subject property is located less than 1/2 mile from I-84, which has average

daily traffic counts in excess of 72,000 and just one mile from new upscale “The Village at Meridian”. Major tenants surrounding this property include: Ross, Petsmart,

Cost Plus, The Ram Restaurant, Washington Trust Bank, Cafe Ole' and more. In summary, this investment offers an owner the opportunity to acquire a successful casual

dining restaurant, situated on a 1.37 acre, fee-simple parcel, situated within a very popular retail section of town. The lease commenced on April 13, 2007 and runs for 20

years until April 2027, with attractive two percent annual increases.

Forbes consistently ranks Boise as one of the top places in the country for business, raising a family, entertainment recreation and high quality of life. Meridian boasts four

times the National growth rate and is the 10th fastest growing city in the U.S. Meridian has seen a boom in job creation and has an unemployment rate of only 4.1 percent.

Many of those jobs are in Healthcare, Administration, Science and other professional fields. The city is also a five time winner of the 100 Best Communities for Young

People, and in 2014 Money Magazine honored Meridian as one of the 50 Best Places to Live.

INVESTMENT OVERVIEW

7

#

CLOSE PROXIMITY TO:

3268 East Pine Avenue, Meridian, ID 83642

7,075 Square Foot Building on 1.37 acres

10.5 Years Remaining on a 20 year NNN Lease

At the intersection of Eagle Road and Pine

Top 50 Cities for Business Growth

#9 Fastest Growing City

#2 Best Cities to Move to in 2015

Boise is not only the State Capital of Idaho, but

the center of commerce, politics, population,

cultural events and the Blue Football Field that

personifies the Boise State Broncos.

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEJAKER'S

PRICING AND VALUATION MATRIX


8

LOCATION OVERVIEW

#

3268 East Pine Avenue, Meridian, ID 83642





9

REGIONAL AND LOCAL MAP

AERIAL PHOTO

JAKER'S

10

#

PROPERTY SUMMARY

OFFERING SUMMARY

#

JAKER'S

11

OFFERING SUMMARY

Please contact: Russ Panowicz650-391-1794 direct650-302-4249 cell

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JAKER'S

COMPARABLES MAP

12

JAKER'S

(SUBJECT)

Taco Bell - Boise (Meridian),

ID

Freddy's Frozen Custard

Arby's Ground Lease

Black Bear Diner

Taco Bell

Matrress Firm

Pawn 1

SALES COMPARABLES

1

2

3

4

5

7

6

13

Avg. 5.67%

0

1

1

2

3

4

4

5

6

6

7

Jaker's Taco Bell -

Boise

(Meridian),

ID

Freddy's

Frozen

Custard

Arby's

Ground

Lease

Black Bear

Diner

Taco Bell Matrress

Firm

Pawn 1

Average Cap Rate


COMPARABLES

Avg. $725

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Jaker's Taco Bell -

Boise

(Meridian),

ID

Freddy's

Frozen

Custard

Arby's

Ground

Lease

Black Bear

Diner

Taco Bell Matrress

Firm

Pawn 1

Average Price Per Square Foot

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM

JAKER'S

COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


14

SALES COMPARABLES

JAKER'S

3268 E PINE AVE, MERIDIAN, ID, 83642

SUBJECT PROPERTY

Asking Price $3,375,000

Price/SF $477.03

CAP Rate 6.00%

GLA 7,075 SF

Year Built 2005

Lease Term Remaining 10.4 Years

TACO BELL - BOISE (MERIDIAN), ID3680 NORTH EAGLE ROAD, BOISE, ID, 83713

1

Close Of Escrow 11/18/2016

Sales Price $3,300,000

Price/SF $1,335.00

CAP Rate 5.24%

GLA 2471 SF

Year Built 2012

FREDDY'S FROZEN CUSTARD2864 E STATE ST, EAGLE, ID, 83616

2



Price/SF $797.00

CAP Rate 5.49%

GLA 3325 SF

Year Built 2016

PROPERTY NAME

MARKETING TEAM

JAKER'S

COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


15

SALES COMPARABLES

ARBY'S GROUND LEASE4501 YELLOWSTONE AVENUE, CHUBBUCK, ID, 83202

3


Sales Price $842,000

Price/SF $391.00

CAP Rate 5.21%

GLA 2152 SF

Year Built 2007

BLACK BEAR DINER190 BULLOCK STREET, CHUBBUCK, ID, 83202

4



Price/SF $529.00

CAP Rate 6.11%

GLA 5200 SF

Year Built 2016

TACO BELL632 NORTH OVERLAND AVENUE, BURLEY, ID, 83336

5



Price/SF $1,199.00

CAP Rate 5.34%

GLA 2664 SF

Year Built 2015

PROPERTY NAME

MARKETING TEAM

JAKER'S

COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


16

SALES COMPARABLES

MATRRESS FIRM510 N COLE RD, BOISE, ID, 83704

6



Price/SF $584.00

CAP Rate 6.25%

GLA 4980 SF

Year Built 2015

PAWN 15724 CLEVELAND BLVD, CALDWELL, ID, 83607

7



Price/SF $240.00

CAP Rate 6.03%

GLA 8828 SF

MARKETING TEAM

Source: © 2015 Experian

PROPERTY NAME

#

CREATED ON DECEMBER 12, 2016





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DEMOGRAPHICS

1 Miles 3 Miles 5 Miles

POPULATION

2020 Projection 3,764 107,693 236,134

2015 Estimate 3,372 96,358 212,628

2010 Census 3,035 85,867 189,802

2000 Census 2,080 60,099 136,227

INCOME

Average $80,722 $75,781 $74,931

Median $63,598 $60,419 $59,848

Per Capita $28,525 $26,805 $26,982

HOUSEHOLDS

2020 Projection 1,329 38,152 84,778

2015 Estimate 1,177 33,981 76,138

2010 Census 1,060 30,402 68,223

2000 Census 718 20,796 48,090

HOUSING

2015 $212,737 $201,343 $200,228

EMPLOYMENT2015 Daytime Population

8,353 91,531 203,611

2015 Unemployment 4.01% 3.63% 3.80%

2015 Median Time Traveled

21 22 21

RACE & ETHNICITY

White 89.70% 88.87% 89.21%

Native American 0.08% 0.12% 0.17%

African American 1.04% 1.08% 1.11%

Asian/Pacific Islander

2.38% 3.37% 2.95%

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Documents

Offering Memorandum - LoopNet · 7 Jaker's Taco Bell - Boise (Meridian), ID Freddy's Frozen Custard Arby's Ground Lease Black Bear Diner Taco Bell Matrress Firm Pawn 1 Average Cap