ZAXBY’S - Jesse Lee

ACTUAL PHOTO

ZAXBY’S DAPHNE (MOBILE MSA), ALABAMA9 YRS. REMAINING ON ABSOLUTE NNN 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. © 2015 Marcus & Millichap ACT ID W0090345

29053 US Highway 98Daphne, AL 36526

Price $2,720,000

Gross Leasable Area (GLA) 3,400 SF

Price / SF $800.00

CAP Rate 7.75%

Net Operating Income $210,760

Year Built 2004

Lot Size 0.96 +/- Acres

Type of Ownership Fee Simple

FINANCIAL OVERVIEW

RENT SCHEDULE

LEASE SUMMARYLease Type Absolute NNN

Roof & Structure Tenant Responsible

Lease Term 20-Year

Rent Commencement 6/14/2004

Lease Expiration 6/13/2024

Term Remaining 9 Years

Increases 3% Annually & 10% at Each Option

Options Two, 5-Year

Option to Terminate None

Option to Purchase None

Right of First Refusal None

TERM ANNUAL RENT MONTHLY RENT

7/1/2015 - 6/30/2016 $210,760 $17,563

7/1/2016 - 6/30/2017 $217,082 $18,090

7/1/2017 - 6/30/2018 $223,595 $18,633

7/1/2018 - 6/30/2019 $230,303 $19,192

7/1/2019 - 6/30/2020 $237,212 $19,768

7/1/2020 - 6/30/2021 $244,328 $20,361

7/1/2021 - 6/30/2022 $251,658 $20,971

7/1/2022 - 6/30/2023 $259,208 $21,601

7/1/2023 - 6/13/2024 $266,984 $22,249

Option 1 $293,682 $24,474

Option 2 $323,050 $26,921

NET OPERATING INCOME $210,760

TOTAL RETURN 7.75% / $2,720,000

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TENANT OVERVIEW

Ownership Private

Tenant Franchisee - Jubilee Food Group

Number of Locations 4

Headquartered Athens, Georgia

Website www.zaxbys.com

Zaxby’s is a Southeast favorite for chicken fingers and wings and one of the nation’s fastest-growing restaurant chains. Zaxby’s focuses on prepared-at-order chicken fingers, wings, sandwiches and salads. The chain operates more than 665 locations in 16 mostly Southeastern states. Recently, the company has continued expansion into western states, including Utah, Nevada and Arizona.

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INVESTMENT OVERVIEW

Marcus & Millichap is pleased to present the Zaxby’s in Daphne, Alabama. Zaxby’s occupies a 3,400 square-foot freestanding building with a drive-thru on 0.96 acres and has 9 years remaining on a 20-year absolute NNN lease. There are 3% annual increases and 10% increases at each of the two, 5-year renewal options.

Zaxby’s is strategically located along Highway 98 with 39,800 cars per day and is immediately off of I-10 with 69,000 cars per day. The subject property is positioned within an affluent Mobile suburb with an average household income that exceeds $82,000 in a three and five-mile radius. Zaxby’s is situated in Daphne’s primary retail trade area and is ½ mile from Jubilee Square anchored by Home Depot, Dick’s Sporting Goods, Hobby Lobby, and Carmike Cinemas. Zaxby’s is also within a 1/3 mile of six hotels, including Microtel Inn & Suites and Eastern Shore Motel, which are directly across the street.

Located at the junction of the Mobile River and Mobile Bay on the northern Gulf of Mexico, Mobile is the only seaport in Alabama. The Port of Mobile has always played a key role in the economic health of the city, and is supplemented with growing sectors in aerospace and retail. Additionally, steel manufacturers have dramatically increased state-of-the-art steel production. Mobile is ranked one of the nation’s best places to live and grow a business. The low cost of doing business, diverse business base, availability of professional and skilled workforce, intermodal transportation hub and quality lifestyle continue to attract people and business.

• 9 Years Remaining

• Absolute NNN Lease, Zero Landlord Responsibilities

• Rare 3% Annual Increases

• Upward Trending Sales, Above National Average

• 10+ Year Operating History at this Location

• Directly Off Interstate 10 With 69,000 Cars Per Day

• Direct Access & Frontage Along Highway 98 with 39,800 Cars Per Day

• Affluent, Rapidly-Expanding Suburb of State’s 2nd Fastest-Growing County

• Average HH Income Exceeds $82,000 in a 3 and 5 Mile Radius

• 1/2 Mile from Jubilee Square with Home Depot, Dick’s Sporting Goods, Hobby Lobby and Carmike Cinemas

• 1/3 Mile from Six Hotels, Including Two Across the Street

• 1.5 Miles to Spanish Fort Town Centre, a 230 Acre Class A Mixed-Use Development Including 216 Luxury Apartments

• Convenient to the Central Business District, Port of Mobile ($8 Billion Economic Impact), and Numerous Top Employers


REGIONAL MAP


SITE PLAN


AERIAL PHOTO


DEMOGRAPHIC REPORT

POPULATION 3-MILES 5-MILES 10-MILES

2000 Population 17,075 25,357 81,365

2010 Population 20,428 33,420 90,446

2014 Population 21,443 35,761 94,810

2019 Population 21,315 36,172 95,632

HOUSEHOLDS 3-MILES 5-MILES 10-MILES

2000 Households 6,732 9,885 30,646

2010 Households 8,373 13,636 35,509

2014 Households 8,786 14,603 37,266

2019 Households 8,790 14,907 37,842

2014 Average Household Size 2.42 2.47 2.45

2014 Daytime Population 6,994 13,224 53,029

2000 Owner Occupied Housing Units 69.40% 70.10% 56.80%

2000 Renter Occupied Housing Units 22.32% 20.15% 31.36%

2000 Vacant 8.27% 9.75% 11.85%



2014 Vacant 6.01% 6.34% 10.95%



2019 Vacant 5.72% 5.95% 10.89%

INCOME 3-MILES 5-MILES 10-MILES

$ 0 - $14,999 6.6% 7.7% 16.3%

$ 15,000 - $24,999 8.2% 7.9% 11.3%

$ 25,000 - $34,999 7.4% 6.8% 8.6%

$ 35,000 - $49,999 12.7% 12.0% 12.9%

$ 50,000 - $74,999 23.6% 23.0% 18.5%

$ 75,000 - $99,999 15.5% 15.4% 11.6%

$100,000 - $124,999 10.9% 10.8% 8.6%

$125,000 - $149,999 5.5% 6.1% 4.8%

$150,000 - $199,999 5.8% 6.3% 4.2%

$200,000 - $249,999 1.7% 1.8% 1.4%

$250,000 + 2.0% 2.2% 1.8%

2014 Median Household Income $65,939 $66,576 $51,188

2014 Per Capita Income $33,663 $34,448 $27,488

2014 Average Household Income $82,035 $84,194 $69,370

CONFIDENTIALITY & DISCLAIMER

The 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.

NON-ENDORSEMENT NOTICE

Marcus & 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.

NET-LEASED DISCLAIMER

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 obli-gation 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.

exclusive offeringPresented By:

OFFICES NATIONWIDE

www.marcusmillichap.com

Phil SambazisFirst Vice President InvestmentsSAN DIEGOTel: (858) 373-3174Fax: (858) [email protected] License: CA 01474991

Eddie GreenhalghBroker of RecordBIRMINGHAMLicense: AL: 0000882980

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ZAXBY’S - Jesse Lee