OLIVE GARDEN GROUND LEASE Freddy’s Frozen …...Freddy’s Frozen Custard Lakewood, CO REPRESENTATICE OLIVE GARDEN GROUND LEASE 6970 N 95TH AVE GLENDALE (PHOENIX), AZ 85305 Offering

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

OLIVE GARDEN GROUND LEASE6970 N 95TH AVEGLENDALE (PHOENIX), AZ 85305

Offering Memorandum

REPRESENTATIVE RENDERING

AERIAL PHOTO OLIVE GARDEN GROUND LEASE

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0070187


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UNIVERSITY OF PHOENIX

STADIUM

320 ROOMS

458 ROOMS

RAYMOND S. KELLIS

HIGH SCHOOL (1,878 STUDENTS)

PILLAR AT WESTGATE251 UNITS

COURNTEYVISTA

341 UNITS

METRO APTS

255 UNITS

McDonald’sWalgreens

W GLENDALE AVE - 24,400 CPD

128,

800

CPD

ST. JOSEPH’S WESTGATE

MEDICAL CENTER

N

5 MILLION ANNUAL VISITORS

15 MILLION ANNUAL VISITORS @

INTERSECTION

149 ROOMS

127 ROOMSCOMING

SOON

STONE HAVEN350 ACRES

PLANNED FOR 1,100 HOMES

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OLIVE GARDEN GROUND LEASE



Starbucks

128,800 CPD

UNIVERSITY OF PHOENIX

STADIUM320 ROOMS


251 UNITS

COMING SOON

STONE HAVEN350 ACRES

PLANNED FOR 1,100 HOMES

149 ROOMS

5 MILLION ANNUAL VISITORS

127 ROOMSCOMING

SOON




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128,800 CPDUNIVERSITY OF PHOENIX

STADIUM

320 ROOMS

LUKE AIRFORCE

BASE

COMING SOON

HOTEL COMING SOON

10,000 SF RETAIL

COMING SOON

+/-11,000 SF BOX SPACE

DRIVE THRU RESTAURANT OPPORTUNITY

127 ROOMSCOMING

SOON

149 ROOMS


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OLIVE GARDEN GROUND LEASE6970 N 95th Ave

Glendale (Phoenix), AZ 85305

FINANCIAL SUMMARY

Price $3,333,333

Down Payment 100% $3,333,333

Cap Rate 4.50%

Building SF 7,800 SF

Net Cash Flow 4.50% $150,000

Year Built 2017/Under Construction

Lot Size 2.23 Acres

LEASE SUMMARY

Lease Type Absolute Triple-Net (NNN) Ground Lease

Tenant Olive Garden Holdings, LLC

Lease Guarantor GMRI, Inc.

Landlord Responsibility None

Rent Commencement Date November 2017

Lease Expiration Date November 2027

Lease Term 10 Years

Rental Increases 10% Every 5 Years

Renewal Options 4, 5 Year Options

BASE RENT $150,000

Net Operating Income $150,000

Total Return 4.50% $150,000

ANNUALIZED OPERATING DATA

LEASE YEARS ANNUAL RENT CAP RATE

1 - 5 $150,000.00 4.50%

6 - 10 $165,000.00 4.95%

OPTIONS ANNUAL RENT CAP RATE

1 $181,500.00 5.45%

2 $199,650.00 5.99%

3 $219,615.00 6.58%

4 $241,576.50 7.25%

EXECUTIVE SUMMARY




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LOCATION OVERVIEWINVESTMENT HIGHLIGHTSThe city of Glendale is the sports destination for all of Arizona. Located about 9 miles northwest of Downtown Phoenix, Glendale is home to top shopping and dining districts, the largest Air Force Training base in the world, Midwestern University (metropolitan Phoenix’s first medical school) and a major post-graduate international business school: the Thunderbird School of Global Management. The Phoenix metro consists of Maricopa and Pinal counties, and includes more than 30 incorporated and more than 30 unincorporated towns and cities. Since 2000, the population in the metro increased by more than 38 percent. The largest city is Phoenix, which encompasses about 520 square miles, is the capital city and boasts a population of more than 1.5 million. As of March 2017, Maricopa County, which includes Glendale, had the highest population growth in the country.As one of the primary beneficiaries of the massive shift in the U.S. population from north to south, the Phoenix metro has had little difficulty finding workers; the challenge, though, is attracting high-paying jobs. Phoenix claims five Fortune 500 headquarters, including Freeport-McMoRan, Republic Services, Insight Enterprises, Avnet and PetSmart. Construction, high-tech manufacturing, healthcare and tourism dominate the Phoenix economy. The local economy has strengthened since the recession, with retail sales projected above 8 percent this year and hotel occupancy levels rising.

• Brand New Absolute Triple-Net (NNN) Ground Lease with No Landlord Responsibilities• New 10 Year Lease Term • 10 Percent Rental Increases Every Five Years • 2017 Construction - Breaking Ground in June with November 2017 Targeted Opening• Trophy Location at Signalized Entrance to the Westgate Entertainment District (22 Million Annual Visitors), Anchored by Gila River Arena and Adjacent to the University of Phoenix Stadium, Home to the Arizona Cardinals• Adjacent to 99% Leased Tanger Outlets, a Regional Shopping Destination with 5.4 Million Annual Visitors• Across from Cabelas (+/- 3 Million Annual Visitors)• Westgate is the #1 Sales Location in Arizona for AMC, Yard House, Dave & Busters, Buffalo Wild Wings, Just Sports, & IT’Sugar • Walking Distance from 596 Apartment Units and More than 900 Hotel Rooms• 255,500 Daytime Employees in Trade Area• 327,200+ Residents in Trade Area • 15 Minute Drive from 656,000 Residents• Average Household Income Exceeds $64,000 in a 1-Mile Radius• Visible to 24,400 Cars per day from Glendale Ave & Directly off of Loop 101 (128,800 Cars per Day)• Next to Brand New Retail/Hospitality Component of Westgate

PROPERTY DESCRIPTION

Income 3-Miles 5-Miles 10-Miles2016 Est. Average Household Income $62,352 $56,194 $59,0052016 Est. Median Household Income $51,174 $43,506 $44,8392016 Est. Per Capita Income $20,752 $18,410 $19,829

Households 3-Miles 5-Miles 10-Miles2021 Projections 31,107 115,445 436,8752016 Estimate 28,500 106,672 400,996Growth 2016 - 2021 9.15% 8.22% 8.95%

DEMOGRAPHICSPopulation 3-Miles 5-Miles 10-Miles2021 Projection 92,870 352,470 1,305,7752016 Estimate 85,869 327,285 1,199,231Growth 2016 - 2021 8.15% 7.70% 8.88%

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Starbucks

PROPERTY DESCRIPTION

Westgate Entertainment District, anchored by Gila River Arena off Loop 101 and Glendale Avenue, Westgate is a regional entertainment center for the entire West Valley population of over two million. It has brought 6.5 million square feet of shops, restaurants, offices, theaters and residential units to Glendale. The project’s centerpiece is a 60,000-gallon fountain, modeled after the landmark Bellagio water feature along the Las Vegas Strip. There is a 4,000 seat AMC theater at Westgate and Gila River Arena is there providing sports and entertainment year round.

Gila River Arena hosts more than 100+ concerts and special events each year. It is one of the most flexible and multifunctional arenas in the country. From concerts to rodeos, ice shows to the circus, Gila River Arena can accommodate any event.

• 17,000 person capacity

• Previous concerts/events include: The Rolling Stones, Madonna, Justin Bieber, Taylor Swift , Paul McCartney and many more

The University of Phoenix Stadium, with its retractable roof and field, is unlike any other stadium in North America, and a marvel of design, engineering, and technology. This multi-purpose facility is located in Glendale, Arizona. The primary tenants in the stadium include the NFL’s Arizona Cardinals and the Tostitos Fiesta Bowl. The 63,400-seat stadium (expandable to 72,200) opened on August 1, 2006 after three years of construction. The stadium hosted the 2008 Super Bowl and the 2015 Super Bowl, as well as the 2016 College Football Championship.

• 630,000 Cardinals fans visit annually

• 500,000 visitors/year for non Cardinals events

• Youth sports complex on property




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BUILDING ELEVATIONS

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Starbucks

SITE PLAN




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TENANT OVERVIEW

REPRESENTATIVE RENDERING

Since its founding in Orlando in 1982, Olive Garden has been dedicated to providing a warm and welcoming dining experience to everyone who walks in the door. These principles combined with its delicious food led to rapid expansion until it was the largest chain of Italian themed restaurants in the nation.

Today, the Olive Garden family of 800+ restaurants is evolving the brand with customer favorites in mind. With reinvigorated dishes, a refreshed website, a restructured logo, and remodeling of select restaurants, they aim to make every guest experience feel more like modern Italy. The end result is a dining experience that’s casual, yet stylish, creating an atmosphere of openness, spontaneity and generosity.

Headquarters Orlando, FL

Parent Company Darden Restaurants

Founded 1982

Locations 800+

Website www.olivegarden.com

Darden Restaurants (GMRI Inc.)

Darden is a premier full-service restaurant company featuring a portfolio of category-leading brands that include Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V’s and Yard House.

Today, 165,000 people are working together to make Darden a global leader in hospitality. Through subsidiaries, the company owns and operates more than 1,600 restaurants and serves more than 380 million guests across North America.

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Starbucks

LOCAL MAP




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REGIONAL MAP

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

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

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 care-ful, 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 finan-cial 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 fa-cilities 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 inter-rupted 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.

Net Leased Disclaimer

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical 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, PCBs or asbestos, the compliance with local, 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 offering memorandum 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Confidentiality Agreement

Exclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

Jamie MedressSenior Managing DirectorPHOENIX OFFICETel: (602) 687-6778Fax: (602) [email protected]

Mark RubleSenior Managing DirectorPHOENIX OFFICETel: (602) 687-6766Fax: (602) [email protected]

Chris LindVice PresidentPHOENIX OFFICETel: (602) 687-6780Fax: (602) [email protected]

Documents

OLIVE GARDEN GROUND LEASE Freddy’s Frozen …...Freddy’s Frozen Custard Lakewood, CO REPRESENTATICE OLIVE GARDEN GROUND LEASE 6970 N 95TH AVE GLENDALE (PHOENIX), AZ 85305 Offering