Domino`s - Capital Pacific

Domino’s
Meridian, ID
Meri
, ID
an
di
NEW Build-to-suit ASSET With
Absolute NNN 10-year LEASE
2295 E Cinema Dr., Meridian, ID 83642
[ www.CapitalPacific.com ]
DOMINO’S IS A NEW CONSTRUCTION, SINGLETENANT ASSET WITH ANNUAL RENT GROWTH
IN MERIDIAN, IDAHO.
The offering provides an opportunity to acquire an Absolute Net
Domino’s on a brand new 10-year lease. The Property is currently
scheduled to be completed in September 2016, with rent to
commence in November 2016. The lease provides for annual rent
growth, increasing an investor’s yield nearly 175 basis points by the end
of the term.
Domino’s benefits from excellent exposure to both Interstate 84 and Overland Road with
combined traffic counts exceeding 120,000 vehicles per day. The Property also benefits from
a dense demographic area with strong purchasing power. Close-in demographics display
average household incomes of nearly $100,000 annually, while the surrounding five-mile
radius exhibits a population of more than 188,000.
PRICE: $920,000
CAP: 5.75%
LEASABLE SF. . . . . . . . . . . . . . . ±2,200 SF
PRICE PER SF. . . . . . . . . . . . . . . $417
LAND AREA. . . . . . . . . . . . . . . . ±13,765 SF
LEASE TYPE. . . . . . . . . . . . . . . . .Absolute NNN
YEAR BUILT. . . . . . . . . . . . . . . . . 2016 (Under Construction)
RENT COMMENCEMENT. . . . . 11/15/2016 (Estimated)
PARKING. . . . . . . . . . . . . . . . . . . ±11 Spaces or 5.0/1,000 SF
ADDRESS:
2295 E Cinema Dr., Meridian, ID 83642
NORTH ELEVATION
WEST ELEVATION
DOMINO’S | 2
Core Characteristics
ABSOLUTE NET LEASE WITH ANNUAL RENT BUMPS
Domino’s Pizza is responsible for all taxes, insurance, maintenance, repair and any other operating expenses relating to the Premises. There are no landlord responsibilities
per the lease in-place.
GLOBAL BRAND WITH LONG TERM COMMITMENT
Domino’s is the second largest franchised pizza chain in the U.S. and has recognized excellent same store sales growth in recent years. The tenant has signed a new 10year lease with a personal guarantee from the franchisee, who operates four Domino’s locations.
BUILD-TO-SUIT-ASSET
The Property is currently under construction and scheduled to be delivered to the tenant in September 2016. The new restaurant is being constructed with split-faced
CMU block construction with decorative stucco and a modern metal accent wall showcasing the tenant’s logo.
STRONG DEMOGRAPHIC AREA WITH HIGH TRAFFIC COUNTS
Domino’s location in Meridian benefits from high annual household incomes of nearly $100,000 within a one-mile radius of the Property. Close-in residents exhibit
very strong purchasing power and demonstrate nearly 25% higher incomes than residents within a five-mile radius. Strong household incomes are complimented by
a dense five-mile population of more than 188,000 residents. The Property is exposed to combined traffic counts in excess of 120,000 vehicles per day along Overland
Road and Interstate 84.
SOUTH ELEVATION
EAST ELEVATION
DOMINO’S | 3
Quick Stats
CONSTRUCTION TIMELINE
DELIVERY TO TENANT
AUGUST 1ST, 2016
CONSTRUCTION START
JUNE 12, 2016
RENT COMMENCEMENT
NOVEMBER 15, 2016
TENANT IMPROVEMENT
COMPLETION
SEPTEMBER 15, 2016
G RA N D
OPENING
November 2016
EXPECTED GRAND
OPENING DATE
12.0%
TENANT INFORMATION
7.5%
5.4%
12,500+
LOCATIONS ACROSS 73
COUNTRIES
260,000
TOTAL EMPLOYEES
4
LOCATIONS OPERATED BY
SUCCESSFUL MULTI-UNIT
OPERATOR
2013
2014
2015
SAME STORE SALES
GROWTH IN U.S.
DOMINO’S | 4
Surrounding Retail
THE VILLAGE AT MERIDIAN
AT&T
Big Al’s
Blaze Pizza
Boise Co-op
Buckle
Cafe Zupas
Chick-fil-A
Chico’s
Chipotle
Gap Outlet
Gordmans
LOFT
Marshalls
Michael’s
Nike Factory Store
Noodles & Company
Petco
Pier 1 Imports
Sur La Table
Toys “R” Us
Village Cinema
E FAIRVIEW AVE
FULL LIST OF VILLAGE AT
MERIDIAN RETAILERS
MERIDIAN CROSSROADS
51,000 VPD
Massage Envy Spa
Office Depot
Old Navy
Palm Beach Tan
Panda Express
Payless ShoeSource
PetSmart
Ross
Shopko
Sportsman’s Warehouse
E EAGLE RD
Applebee’s
Arby’s
Ashley Furniture
Baja Fresh Mexican Grill
Bed Bath & Beyond
Carl’s Jr
Craft Warehouse
Dollar Tree
GameStop
Goodwood Barbecue
IHOP
116,500 VPD
OTHER RETAIL
Albertsons
Baskin Robbins
Big Lots
Buffalo Wild Wings
Burger King
Del Taco
DeMeyer Furniture
Denny’s
Dutch Bros. Coffee
Fred Meyer
Goodwill
Great Floors
Home Depot
Jiffy Lube
Jimmy John’s
Majestic Cinemas
McDonald’s
O’Reilly Auto Parts
Panda Express
RC Willey
Red Robin
Starbucks
Subway
Taco Bell
WinCo Foods
84
DOMINO’S
21,589 VPD
E OVERLAND RD
DOMINO’S | 5
Aerial
116,500 VPD
S LOCUST GROVE RD
84
DOMINO’S
FUTURE
DEVELOPMENT
21,589 VPD
E OVERLAND RD
DOMINO’S | 6
E CINEMA DR
Site Plan
SITE PLAN KEY
PARCEL OUTLINE:
LAND AREA:
±13,765 SF
LEASABLE SF: ±2,200 SF
INGRESS/EGRESS:
CROSS-PARKING EASEMENT
The Property has entered into a cross-parking
agreement with the adjacent parcel to the east.
The agreement has granted a non-exclusive
right of access over and across the parking areas
of each property to be used by the tenants,
employees, customers, vendors and visitors alike.
Site Plan Not To Scale
DOMINO’S | 7
Elevations
Elevations Not To Scale
WEST ELEVATION
NORTH ELEVATION
EAST ELEVATION
SOUTH ELEVATION
DOMINO’S | 8
Financial Summary
PRICE
$920,000
Capitalization Rate:
Per Square Foot:
5.75%
2,200 Square Feet
NET OPERATING INCOME SUMMARY
SCHEDULED INCOME
Scheduled Rent:
11/15/2016
Equals: Effective Gross Income
Less: OPERATING EXPENSES
CAMS
Property Taxes
Insurance
Total Operating Expenses
Equals: NET OPERATING INCOME
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. Buyer must verify the information and bears all risk for any inaccuracies.
$418
Per SF
$24.00
$24.00
$52,800
$52,800
Per SF
NNN
NNN
NNN
NNN
$52,800
DOMINO’S | 9
Rent Roll
Rent Roll
RENT SUMMARY
TENANT INFO
TERM
Tenant Name
Size
Date*
Monthly Rent
2 Bits Pizza LLC dba Domino's Pizza
2,200
11/15/2016
12/1/2017
$4,400
$4,532
Percent
Increase
Annual Rent
PSF
Cap Rate
$52,800
$24.00
5.75%
3.0%
$54,384
$24.72
5.91%
Estimated Occupancy Date :
9/15/2016
12/1/2018
$4,668
3.0%
$56,016
$25.46
6.09%
Estimated Rent Commencement :
11/15/2016
12/1/2019
$4,808
3.0%
$57,696
$26.23
6.27%
Lease Expiration :
11/30/2026
12/1/2020
$4,953
3.0%
$59,433
$27.01
6.46%
12/1/2021
$5,101
3.0%
$61,210
$27.82
6.65%
12/1/2022
$5,254
3.0%
$63,046
$28.66
6.85%
12/1/2023
$5,411
3.0%
$64,937
$29.52
7.06%
12/1/2024
$5,574
3.0%
$66,885
$30.40
7.27%
12/1/2025
$5,741
3.0%
$68,892
$31.31
7.49%
12/1/2026
$5,913
3.0%
$70,959
$32.25
7.71%
12/1/2027
$6,091
3.0%
$73,088
$33.22
7.94%
12/1/2028
$6,273
3.0%
$75,280
$34.22
8.18%
12/1/2029
$6,462
3.0%
$77,539
$35.24
8.43%
12/1/2030
$6,655
3.0%
$79,865
$36.30
8.68%
12/1/2031
$6,855
3.0%
$82,261
$37.39
8.94%
12/1/2032
$7,061
3.0%
$84,729
$38.51
9.21%
12/1/2033
$7,273
3.0%
$87,270
$39.67
9.49%
12/1/2034
$7,491
3.0%
$89,889
$40.86
9.77%
12/1/2035
$7,715
3.0%
$92,585
$42.08
10.06%
$52,800
$24.00
5.75%
Option 1
Option 2
Lease Notes
Comments: Absolute Net lease. Tenant is responsible for taxes, insurance, maintenance and repairs. The lease has a personal guarantee.
Current Totals:
2,200
$4,400
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.
Buyer must verify the information and bears all risk for any inaccuracies.
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. Buyer must verify the information and bears all risk for any inaccuracies.
DOMINO’S | 10
Lease Abstract
BASE
RENT
LEASE YEAR
2 Bits Pizza, LLC dba Domino’s
Chad and Shelby Bittner
±2,200 SF
February 3, 2016
August 1, 2016
November 15, 2016 (60 Days
following possession)
November 30, 2026
OPTION PERIOD(S):
Two, five-year options with annual 3% increases in base rent. Tenant must
provide at least six months’ notice to exercise option periods.
UTILITIES
Lessee shall pay, at its own expense for all utilities and services to the
Premises including water, gas, electrical, trash removal, sewer services,
telephone, cable, janitorial and other services used.
OPTION 2
TENANT
PERSONAL GUARANTOR
SQUARE FEET
LEASE COMMENCEMENT
DELIVERY OF PREMISES
RENT COMMENCEMENT
EXPIRATION
OPTION 1
PREMISES/TERM
MONTHLY RENT
11/15/2016
12/1/2017
12/1/2018
12/1/2019
12/1/2020
12/1/2021
12/1/2022
12/1/2023
12/1/2024
12/1/2025
12/1/2026
12/1/2027
12/1/2028
12/1/2029
12/1/2030
12/1/2031
12/1/2032
12/1/2033
12/1/2034
12/1/2035
$4,400
$4,532
$4,668
$4,808
$4,953
$5,101
$5,254
$5,411
$5,574
$5,741
$5,913
$6,091
$6,273
$6,462
$6,655
$6,855
$7,061
$7,273
$7,491
$7,715
PER SF
ANNUAL RENT
$24.00$52,800
$24.72$54,384
$25.46$56,016
$26.23$57,696
$27.01$59,433
$27.82$61,210
$28.66$63,046
$29.52$64,937
$30.42$66,885
$31.31$68,892
$32.25$70,959
$33.22$73,088
$34.22$75,280
$35.24$77,539
$36.30$79,865
$37.39$82,261
$38.51$84,729
$39.67$87,270
$40.86$89,889
$42.08$92,585
LANDLORD MAINTENANCE OBLIGATIONS
Lessor has no maintenance obligations under the terms of the Absolute
Net lease.
REAL ESTATE TAXES
Lessee shall pay, before delinquency, all real property taxes levied or
assessed against the Premises.
TENANT MAINTENANCE RESPONSIBILITIES
Tenant, at its own cost and expense is responsible for the maintenance,
repair of the entire Premises including all structural portions of the
Property.
INSURANCE
Lessee shall maintain general liability coverage as well as fire and extended
coverage insurance.
DOMINO’S | 11
Construction Details
LANDSCAPING
Manicured lawn with landscape boulders and
low maintenance shrubs and perennials on the
edges of the building as well as on the parcel
exterior bordering Cinema Drive. Landscape
also includes a mix of deciduous trees and one
larger coniferous tree placed in the front of the
property.
Shared monument signs; one
along Overland Road and a
larger sign on the north end of
the larger center well exposed to
the interstate traffic.
Concrete slab on grade.
Three roof-mounted
units providing sufficient
ventilation for the
restaurant use. Gas heat
is also supplied to the
site.
Wood-framed construction with decorative
stucco and a modern metal wall panel with
tenant logo display. Sleek blue metal awnings
cover all entryways to the building.
ROOF
WINDOWS & DOORS
FOUNDATION
One men’s restroom with
toilet and sink and one
women’s restroom with
toilet and sink. Multiple
hand-washing stations as
well as prep sink, typical for
restaurant use.
HVAC
EXTERIOR WALLS
SIGNAGE
PLUMBING
Red anodized aluminum
cased doors and windows,
typical of retail storefronts.
Sloped, built-up TPO
membrane roof.
ELECTRICAL
400 Amp – Single phase
power.
PARKING
Total: ±11 Spaces or
5.0/1,000 SF
YEAR BUILT
2016 (Under Construction)
LOT SIZE
±13,765 SF
BUILDING SIZE
±2,200 SF
DOMINO’S | 12
Area Intel
BOISE METROPOLITAN AREA OVERVIEW
Boise is the capital and most populous city of the state of Idaho, as well as the county seat
of Ada County. Located on the Boise River, it anchors the Boise City-Nampa metropolitan
area and is the largest city between Salt Lake City, Utah and Portland, Oregon. The Boise
metropolitan area is home to approximately 616,500 people and is the most populous
metropolitan area in Idaho, containing the state’s three largest cities; Boise, Nampa, and
Meridian.
Boise is the headquarters for several major companies, such as Boise Cascade LLC,
Albertsons, J.R. Simplot Company, Idaho Pacific Lumber Company, Idaho Timber,
WinCo Foods, Bodybuilding.com, and Clearwater Analytics. Other major industries
are headquartered in Boise or have large manufacturing facilities present. The state
government is also one of the city’s largest employers.
IDAHO HAS THE
11th FASTEST
GROWING POPULATION
IN THE UNITED STATES
93,000
POPULATION – RADIUS
2010
2016 2021
1-Mile3-Mile5-Mile
5,928 57,269 166,176
6,460 64,908 188,684
7,425 71,600 207,517
2016 HOUSEHOLD INCOMES – RADIUS
Median Average
1-Mile3-Mile 5-Mile
$73,138 $60,372 $60,421
$99,242 $81,684 $80,106
MERIDIAN
3rd LARGEST
CITY IN IDAHO
80%
POPULATION
GROWTH SINCE
2000
3.8%
NEW JOBS
IN IDAHO
REPLACED 60,000 LOST
DURING THE RECESSION
UNEMPLOYMENT
RATE STATEWIDE
5-MILES
3-MILES
Boise
Meridian
1-MILE
23 Min
13.5 Miles
16 Min
11.3 Miles
DOMINO’S
Nampa
DOMINO’S | 13
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[ REPRESENTATIVE PHOTO ]
SEAN MACK
PETER DUNN
KEVIN ADATTO
SEAN TUFTS
smack@capitalpacific.com | (503) 675-8378
kadatto@capitalpacific.com | (503) 675-7726
pdunn@capitalpacific.com | (503) 607-0197
stufts@capitalpacific.com | (206) 743-8468
[ Copyright © 2016 Capital Pacific LLC ]
MICHAEL HORWITZ
mhorwitz@capitalpacific.com | (503) 675-8381