PIZZA HUT & WINGSTREET NNN Investment 2001 West Highway 52 Rochester, Minnesota 55901 7486 La Jolla Boulevard, Suite 173 La Jolla, California 92037
EXECUTIVE SUMMARY PROPERTY Pizza Hut & WingStreet Restaurant LOCATION 2001 West Highway 52, Rochester, Minnesota 55901 SALES PRICE $1,545,000 CAPITALIZATION RATE 5.5% RENT Year 1-5 Years 6-10 Year 11-15 Years 16-20 Monthly $7,083 $7,792 $8,571 $9,428 Annual $85,000 $93,500 $102,850 $113,135 BUILDING SIZE Large 2,925 square feet contemporary building that was constructed in approximately 1986. LAND PARCEL SIZE Approximately 25,468 square feet with plentiful parking. PRIMARY LEASE TERM & OPTION PERIODS New 20 year lease term commencing July 1, 2018 with four additional 5 year options to extend at the same terms and conditions. RENTAL INCREASES 10% rent increases every 5 years including options. 2 7486 La Jolla Boulevard, Suite 173, La Jolla, California 92037
EXECUTIVE SUMMARY TENANT INFORMATION MUY Pizza Minnesota LLC is a Pizza Hut franchisee who currently operates 59 Pizza Hut restaurants throughout the state of Minnesota and Iowa that was founded in 2013. Prior to MUY Pizza Minnesota LLC operating the restaurants they were all operated by another Pizza Hut Franchisee for 20+ years. MUY Pizza Minnesota is part of the MUY Pizza Companies who operate another 218 Pizza Hut restaurants primarily in Houston, San Antonio, and the South Texas market to the Mexican border. MUY Pizza also operates another 90 Pizza Hut Restaurants in 5 Southeast states. Collectively, the 3 MUY Pizza Hut companies own and operate 364 Pizza Hut restaurants and are one of the largest Pizza Hut franchisees in America. The MUY companies also own & operate 79 Taco Bell restaurants in 6 north east states, and 312 Wendy s restaurants in Texas, New York, Ohio and Kentucky. The collective MUY Companies own & operate 754 restaurants and were recently recognized as the 5th largest franchisee in America with revenues approaching $1 billion. Please visit the company website at www.muycompanies.com for additional information on the company. 3
EXECUTIVE SUMMARY COMMENTS The Rochester Pizza Hut is a very seasoned restaurant that has successfully operated in the location since 1986 with over 30+ years of success operations. The restaurant is strategically located in the heart of Rochester s retail trade area on Highway 63 at the 19th Street NW exit. The excellent location is surrounded by dense residential neighborhoods of north Rochester, a number of major retail power centers, and several large employers which creates a strong daytime population. The Rochester Pizza Hut was remodeled in 2014 to feature Pizza Hut s current image standards and dining room designs. The Rochester Pizza Hut is conveniently located at the Highway 63 freeway offramp which is the coming home side of the street so it is a convenient and popular location for pick up for residents returning home the neighborhoods after work. The freeway oriented location is also convenient to access all of north Rochester residential neighborhoods for delivery drivers as well. the art technology campus which currently employs approximately 3,000 people. The Pizza Hut site is also close to 400+ student Lourdes Catholic High School which is considered one of Rochester s most prestigious private high schools. With an estimated metropolitan area population of 215,884, Rochester is the third-largest city in Minnesota outside of Minneapolis-St. Paul MSA. Rochester is also home to the Mayo Clinic which is an academic medical & research center focused on integrated clinical practice, education, and research. It employs more than 4,500 physicians and scientists and 58,400 administrative and allied health staff. The Mayo Clinic specializes in treating difficult cases through tertiary care. It spends over $660 million a year on research and employs over 3,000 full-time research. The 19th street retail corridor is home to the 100+ acre Costco retail center which features a number of national restaurants along with 3 hotels. Another 48 acre West Circle Shopping Center is currently under construction along west Circle Drive & 19th Street across from Costco. The Northwest Plaza Power Center is anchored by Walmart, Sam s Club, Petco and other national retailers. The Super Target and Home Depot Power center is also located close to the Pizza Hut restaurant. Pizza Hut is also very close to the Rochester IBM Campus which is a 3 million SF state of 4 7486 La Jolla Boulevard, Suite 173, La Jolla, California 92037
EXECUTIVE SUMMARY 5 7486 La Jolla Boulevard, Suite 173, La Jolla, California 92037
EXECUTIVE SUMMARY LAND SURVEY SUBJECT PROPERTY 6 7486 La Jolla Boulevard, Suite 173, La Jolla, California 92037
AERIAL VIEWS 52 SUBJECT PROPERTY 19th Street NW 7
AERIAL VIEWS 2017 Demographics 1 Mile 3 Miles 5 Miles Population 4,662 53,506 98,050 Median Age 31 35 36 Avg. HH Income $67,645 $78,393 $79,924 Rochester Marketplace Shopping Center Rochester IBM Campus Costco Center & Restaurants Future W. Circle Commercial Development Mayo Medical Labratories Lourdes High School Rochester Athletic Club SUBJECT PROPERTY 8
MAPS SUBJECT PROPERTY SUBJECT PROPERTY 9
TRADE AREA Costco Center Aldi Grocery Store Cinemax 12 Plex Theatre McDonalds Restaurant 5 West Restaurants & 2 Hotels Staybridge Suites Hotel 10
TRADE AREA Northwest Plaza Shopping Center Walmart Sam s Club Petco & Retail Shops Wells Fargo Bank Texas Roadhouse Grill Hyvee Grocery Store & Center 11
TRADE AREA Super Target Staples & Petsmart Home Depot Kwik Trip Gas & C Store Sherwin Williams Paints Sleep Inn Hotel 12
F 828 459 3066 7486 La Jolla Boulevard, Suite 173 La Jolla, California 92037