P . 1K N E A D E R S | P A R K E R , C O
KNEADERS BAKERY & CAFÉPARKER, CO (DENVER MSA)
C O N F I D E N T I A L O F F E R I N G M E M O R A N D U M
T O M E T H I N G T O N - L E A D Managing PartnerInvestment Sales
Z A C H W R I G H T - L E A DDirector
Net Lease Investment Sales720.966.1628
R O B E R T E D WA R D SManaging PartnerInvestment Sales
B R A N D O N G AY E S K IAssociate AdvisorInvestment Sales
Table ofContents
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I N V E S T M E N T H I G H L I G H T S
I N V E S T M E N T O V E R V I E W
A E R I A L
P R O P E R T Y P H O T O S
S I T E P L A N
M A P S & D E M O S
L O C A T I O N O V E R V I E W
T E N A N T O V E R V I E W
K N E A D E R S | P A R K E R , C O P . 3
• Located within the Denver MSA in the affluent and rapidly expanding
suburb of Parker
• Long term lease with over 15 years remaining
• 10% rental escalations every five years
• Absolute triple net lease with no landlord responsibilities
• Corporately guaranteed lease by Four Foods Groups
• Recently constructed building (2014)
• Outparcel to a grocery-anchored center that features Safeway, Hobby
Lobby & Planet Fitness
• Just off of the heavily trafficked signalized intersection of S Parker Road
and E Mainstreet (60,000+ VPD)
• Affluent area with average annual household incomes of approximately
$125,000
• National retailers in the immediate trade area include Walmart
Supercenter, Home Depot, Target, Kohl’s, AMC Theatres, Best Buy, Bed
Bath & Beyond and numerous others
• 2019-2024 projected annual population growth of 9.72% within a 5-mile
radius
• Several Fortune 500 companies headquartered minutes away such as
Arrow Electronics, Liberty Media, Charles Schwab and CH2M Hill
InvestmentHighlights
Long term lease with over 15 years remaining
Absolute triple net lease with no landlord responsibilities
Outparcel to a grocery-anchored center that features Safeway, Hobby Lobby & Planet Fitness
19190 Mainstreet, Parker, CO 80134
A D D R E S S
10% rent increases every 5 years
R E N T A L E S C A L A T I O N S
15.5 yearsT E R M R E M A I N I N G
Kneaders Bakery and Cafe
T E N A N T
$3,120,000P R I C E
5.50%C A P R A T E ( C U R R E N T )
Investment Overview
P . 4K N E A D E R S | P A R K E R , C O
*Based upon the Net Operating Income beginning on January 1, 2020. Seller will credit at closing the difference between the future rent ($14,300/month) and the current rent ($13,000/month).
December 31, 2034L E A S E E X P I R AT I O N
Absolute Triple Net (Zero Landlord Responsibilities)
L E A S E T Y P E
$3,120,000P U R C H A S E P R I C E
Kneaders
18,165 SF + 10 Parking Spots(Perpetual Easement)
T E N A N T
L A N D S I Z E
5.50%C A P R AT E
FFG Parker, LLC D/B/A Kneaders Bakery & Cafe
G UA R A N TO R
$171,600*N E T O P E R AT I N G I N C O M E
N O I S C H E D U L E
3,798 SFB U I L D I N G S I Z EDecember 24, 2014
R E N T C O M M E N C E M E N T
10% Every Five YearsR E N TA L E S C A L AT I O N S
Three 5-YearR E N E WA L O P T I O N S
NOI Increase Date Period Cap Rate
$171,600 10% 1/1/2020 Primary Term 5.50%
$188,760 10% 1/1/2025 Primary Term 6.05%
$207,636 10% 1/1/2030 Primary Term 6.66%
$228,400 10% 1/1/2035 Option 1 7.32%
$251,240 10% 1/1/2040 Option 2 8.05%
$276,364 10% 1/1/2045 Option 3 8.86%
Y E A R B U I LT
2014
P . 5K N E A D E R S | P A R K E R , C O
Aerial
O’Brien Park
So
uth
Pa
rke
r Ro
ad
(53
,00
0 V
PD
)
E Mainstreet (17,800 VPD)
N
Downtown Parker
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Aerial
South Parker Road
(53,000 VPD)
E Mainstreet (17,800 VPD)
N
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Neighborhood Map
Stroh Ranch Anthology Submarket Arlington Ranch
6,770 Homes
Stroh Ranch 2.817 Homes
Robinson Ranch124 Homes
Hidden Rivers1,023 Homes
Rowley Downs323 Homes
Parker Vista220 Units
Overlook 844 Homes
Preston Hill193 Homes
Pine Bluffs217 Homes
Old Town449 Homes
Horseshoe Ridge300 Homes
Cherry Creek Highlands41 Homes
Parker North298 Homes
Lincoln Creek Village724 Homes
Parker Road
Chambers Road
Jordan Crossing105 Homes
Bradbury Ranch1,607 Homes
Clark Farms1,561 Homes
Stonegate3,483 Homes
Pine Lane285 Homes
Cottonwood 1,850 Homes
Challenger Park & Cherrywood Apartments
1,307 Units
Country Meadows205 Homes
Town & Country501 Homes
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Site Plan
DRIVE THRU
10 DEDICATED PARKING SPACES
VIA PERPETUAL EASEMENT
E Mainstreet (17,800 VPD)
So
uth
Pa
rke
r R
oa
d (
53
,00
0 V
PD
)
PROPOSED REDEVELOPMENT(NOT INCLUDED)
P . 9Map &Demographics
Map &Demographics
TOTAL POPULATIONPOPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile 8,056
3 mile 66,536
5 mile 104,515
TOTAL HOUSEHOLDSPOPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile 3,302
3 mile 23,514
5 mile 38,629
AVERAGE HH INCOMEPOPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile $86,424
3 mile $121,560
5 mile $124,391
AREA DEMOGRAPHICS
K N E A D E R S | P A R K E R , C O
19190 Mainstreet, Parker, CO 80134
Denver International Airport
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Area Map
2519190 Mainstreet, Parker, CO 80134
P . 1 1K N E A D E R S | P A R K E R , C O
PARKER is a municipality in Douglas County, Colorado and is a part of
the Denver MSA. Parker is ranked as the 19th most populous municipality
in Colorado with a population of approximately 55,000 people. Parker
benefits from its easy access to Denver, Colorado Springs and the rest
of the front range via I-25, E-470 and public transportation. Denver
International Airport is located 30 minutes away and Centennial Airport
is located 10 minutes away. Parker’s thriving economy, robust business
center, family-friendly environment, great schools, and extensive cultural
and recreational activities are the reasons why CNN Money rated it one
of the Best Places to Live in the United States.
The town boasts a median age of 35 years old and a median household
income of over $111,000. Additionally, the town’s favorable demographics
include a low unemployment rate of less than 3%. The Parker trade area
features approximately 126,000 people and is rapidly expanding. The
town boasts a highly talented and educated workforce with several
Fortune 500 companies headquartered minutes away such as Arrow
Electronics, Liberty Media, Charles Schwab and CH2M Hill.
LocationOverview
DENVER is the capital and most populous city of Colorado and is located just east
of the front range of the Rocky Mountains. Denver is nicknamed the Mile High City
because its elevation is exactly one mile above sea level, making it the highest major
city in the United States. Denver is ranked as a Beta- world city by the Globalization
and World Cities Research Network. With an estimated population of 693,060 in 2016,
Denver is the 19th-most populous U.S. city. The Denver MSA had an estimated 2016
population of 2,853,077 and is the 19th most populous US MSA. In 2016, Denver was
named the best place to live in the United States by U.S. News & World Report.
Denver is home to the Denver International Airport which is the 18th busiest airport in the
world. Denver serves as a major hub for United Airlines, is the headquarters for Frontier
Airlines and is the fastest-growing focus city for Southwest Airlines. Denver is served
by five interstates which include I-25, I-225, I-70, I-270, and I-76. Denver is home to four
professional sports teams which include the Denver Broncos, Colorado Avalanche,
Colorado Rockies and Denver Nuggets.
Denver is the largest city within 500 miles which has made it a natural location for
storage and distribution of goods and services to the Mountain states, Southwestern
states as well as Western states. Denver is the headquarters to Dish Network, Vail
Resorts, Western Union, DaVita, Coors Brewing Company, Liberty Interactive, Level 3
Communications, Ball Corp., Envision Healthcare, CH2M Hill and many others. Denver
also has a thriving tourism industry due to its proximity to the Rocky Mountains and
numerous world-class ski resorts.
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KNEADERS BAKERY & CAFE is a fast-casual restaurant chain that serves freshly baked breads, sandwiches, homemade pastries, hearty soups and refreshing salads. Every Kneaders location has a certified baker and pastry chef creating seasonal and signature menu items by hand daily. Kneaders differentiates itself by freshly baking from scratch all of their bread daily in each particular location and using high quality ingredients. For example, their preservative, GMO, and steroid-free turkey is slow-roasted every day at each Kneaders location and is hand pulled before becoming part of their popular sandwiches and salads. Kneaders was founded in Orem, UT in 1997. They currently have over 60 locations in 8 different states (Colorado, Utah, Arizona, Nevada, Idaho, Texas, Kansas, & Missouri).
TenantOverview
WEBSITE www.fourfoodsgroup.com
NUMBER OF LOCATIONS 110+
YEAR FOUNDED 2008
HEADQUARTERS Pleasant Grove, UT
WEBSITE www.kneaders.com
NUMBER OF LOCATIONS 60+
YEAR FOUNDED 1997
FOUR FOODS GROUP is the operator of over 43 Kneaders locations and currently have 11 additional restaurants under development. Four Foods Group was founded in 2008 by Andrew and Shauna Smith when they purchased their first Kneaders location in Utah County. Shortly thereafter, they purchased the rights to a multi-state development to grow the Kneaders concept and were granted the right to develop 110 Kneaders locations.
In addition to Kneaders, Four Foods Group operates 48 Little Caesar restaurants in Alabama and Louisiana. They also operate R&R BBQ which has 8 locations in Utah and is rapidly expanding. They also recently acquired The Soda Shop, an up-and-coming player in the gourmet soda fountain drink arena that is based in Gilbert Arizona. Four Foods Group is headquartered in Pleasant Grove, UT.
The company employs more than 4,000 people and reports over $190 million in annual revenue. Four Foods Group was named the third fastest-growing restaurant operators in 2017 by Franchise Times, is a multi-time winner of “Best Companies to Work For,” and currently holds a 4.9/5.0 Glassdoor rating. Recently, FFG was listed in the Inc. 5000 fastest-growing companies in the nation for the 7th consecutive time.
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Disclaimer
This confidential Offering Memorandum, has been prepared by Blue West Capital, LLC (“Blue West Capital”) for use by a limited number of qualified parties. This Offering Memorandum has been provided to you at your request based upon your assurances that you are a knowledgeable and sophisticated investor in commercial real estate projects and developments. Blue West Capital recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property described herein as Kneaders Bakery and Café (the “Property”) and of all of the information provided herein related to the Property. By accepting this Offering Memorandum, you acknowledge and agree that you shall rely solely upon your own examination and investigation of the Property and you shall not rely on any statements made in this Offering Memorandum or upon any other materials, statements or information provided by Blue West Capital or its brokers.
Blue West Capital makes no guarantee, warranty or representation about the completeness or accuracy of the information set forth in this Offering Memorandum. You are responsible to independently verify its accuracy and completeness. Blue West Capital has prepared the information concerning the Property based upon assumptions relating to the general economy, its knowledge of other similar properties in the market, and on other market assumptions including factors beyond the control of the Blue West Capital and the Owner of the Property. Blue West Capital makes no representation or warranty as to either the accuracy or completeness of the information contained herein, and the information set forth in this Offering Memorandum in not intended to be a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be accurate, Blue West Capital and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further, Blue West Capital and the Property Owner disclaim any and all liability for any express or implied representations and warranties contained in, or for any omissions from, the Offering Memorandum and for any other written or oral communication transmitted or made available to you. Blue West Capital shall make available to you, as a qualified prospective investor, additional information concerning the Property and an opportunity to inspect the Property upon written request.
This Offering Memorandum and the contents are intended to remain confidential except for such information which is in the public domain or is otherwise available to the public. By accepting this Offering Memorandum, you agree that you will hold and treat Offering Memorandum in the strictest confidence, that you will not photocopy or duplicate it, or distribute it. You agree you will not disclose this Offering Memorandum or its contents to any other person or entity, except to outside advisors retained by you and from whom you have obtained an agreement of confidentiality, without the prior written authorization of Blue West Capital. You agree that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the Property. If you determine you have no interest in the property, kindly return the Offering Memorandum to Blue West Capital at your earliest convenience.
P . 1 4K N E A D E R S | P A R K E R , C O
I N V E S T M E N T C O N T A C T S
Z A C H W R I G H T - L E A D
DirectorNet Lease Investment Sales
720.966.1628
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R O B E R T E D WA R D S
Managing PartnerInvestment Sales
720.966.1630
T O M E T H I N G T O N - L E A D
Managing PartnerInvestment Sales
720.966.1624
B R A N D O N G AY E S K I
Associate AdvisorInvestment Sales
720.966.1627