peter piper pizza freddy’s frozen custard

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

PETER PIPER PIZZA1463 N DYSART RDAVONDALE, AZ 85323

Offering Memorandum

AERIAL PHOTO PETER PIPER PIZZA

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 Z0070244


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N DYSART RD34,950 CPD

McDonald’sI -10 FWY182,500 CPD

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PETER PIPER PIZZA



Walgreens AGUA FRIAHIGH SCHOOL

N DYSART RD34,950 CPD

EXECUTIVE SUMMARY


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PETER PIPER PIZZA

PETER PIPER PIZZA1463 N Dysart Rd

Avondale, AZ 85323

FINANCIAL SUMMARY

Price $3,750,000

Down Payment 100% $3,750,000

Cap Rate 6.0%

Building SF 10,000 SF

Net Cash Flow 6.0% $225,000

Year Built 2003

Lot Size 1.36 Acres

LEASE SUMMARY

Lease Type Double-Net (NN) Lease

Tenant CEC Entertainment, Inc.

Roof & Structure Landlord Responsible

Lease Commencement Date February 9, 2004

Lease Expiration Date February 28, 2029

Lease Term 11 Years

Rental Increases 5% Every 3 Years

Renewal Options 2, 6 Year Options

BASE RENT $225,000

Net Operating Income $225,000

Total Return 6.0% $225,000

EXECUTIVE SUMMARY

ANNUALIZED OPERATING DATA

LEASE YEARS ANNUAL RENT CAP RATE

2/9/2019 - 2/29/2020 $225,000.00 6.00%

2/9/2020 - 2/29/2023 $236,300.04 6.30%

2/9/2023 - 2/29/2026 $248,200.08 6.62%

2/9/2026 - 2/29/2029 $260,700.00 6.95%

OPTIONS ANNUAL RENT CAP RATE

Option 13/1/2029 - 2/29/2032

$273,735.00 7.30%

3/1/2032 - 2/28/2035 $287,421.84 7.66%

Option 23/1/2035 - 2/28/2038

$301,793.04 8.05%

3/1/2038 - 2/28/2041 $316,882.80 8.45%

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PETER PIPER PIZZA



TENANT OVERVIEW

Peter Piper Pizza is an Arizona-based pizza chain with locations in Arizona, California, Florida, New Mexico, Texas, Oklahoma, Nevada, and Mexico. Known as the kid’s party place, Peter Piper Pizza offers indoor party venues with pizza, games, and customized service. Restaurants usually have a large dining area that adjoins a game room with playground equipment and classic arcade games. Anthony M. “Tony” Cavolo founded Peter Piper Pizza in Phoenix, Ari-zona in 1973 with the first location located in Glendale, Arizona. There are 139 corporate and franchised restaurants in the United States and Mexico.

In 2013, Peter Piper Pizza celebrated their 40th year in business by launching Peter Piper 2.0; an evolution of the everyday dining experience to meet the needs of millennial families. After extensive market research, the company underwent some rebranding to appeal to this new market. The new concept in-cluded creating a “food theater”, where the kitchen is moved towards the front so customers can easily view their food being freshly prepared. Additionally, the main dining area is now separated from the arcade room with glass win-dows and there are more televisions and modern fixtures in the restaurants. www.peterpiperpizza.com

TENANT OVERVIEW - CEC ENTERTAINMENT, INC.For 40 years, CEC Entertainment has served as the nationally recognized lead-er in family dining and entertainment with both its Chuck E. Cheese’s and Peter Piper Pizza venues. As America’s #1 place for birthdays, Chuck E. Cheese’s goal is to create positive, lifelong memories for families through fun, food, and play and is the place Where A Kid Can Be A Kid ®. Committed to providing a fun, safe environment, Chuck E. Cheese’s helps protect families through indus-try-leading programs such as Kid Check ®. As a strong advocate for its local communities, Chuck E. Cheese’s has donated more than $14 million to schoolsthrough its fundraising programs and supports its national charity partner, Boys and Girls Club of America. Peter Piper Pizza, with its neighborhood piz-zeria feel, features dining, entertainment and carryout. The solution to ‘the family night out’, Peter Piper Pizza takes pride in delivering a food first, parent friendly experience that reconnects family and friends. Expanding nationally, Peter Piper Pizza recently opened locations in Oklahoma, Nevada New Mexico, Arizona and Texas featuring an all new prototype design. As of December 31, 2017 the Company and its franchisees operated a system of 605 Chuck E. Cheese’s and 149 Peter Piper Pizza venues, with locations in 47 states and 13 foreign countries and territories. For more information, visit chuckecheese.com and peterpiperpizza.com.




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LOCATION OVERVIEWINVESTMENT HIGHLIGHTSAvondale is a modern city near the heart of the Phoenix metropolitan area. Over the last decade, population growth took place at a rate of over 114%, making the city one of the fastest growing in Maricopa County. Subsequent development resulted in a conglomeration of styles and architecture in the city, typical of small western towns. Recently, the city has seen tremendous growth in new development, both residential and commercial, while the Old Town area along Western Avenue preserves the historic business district and safeguards opportunities for small, independent businesses.

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 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. Phoenix claims five Fortune 500 headquarters, including Freeport-McMoRan, Republic Services, Insight Enterprises, Avnet and PetSmart. Construction, hightech 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.

PROPERTY DESCRIPTION

• New 11 Year Corporate Lease Renewal

• Proven Location - 15 Year Operating History

• Five Percent Increases Every Three Years

• Adjacent to The Home Depot, Sam’s Club, and Ashley HomeStore

• Directly Off the Interstate-10 Freeway (182,500+ Cars per Day) - Primary Connector for the Southwest

• One Mile from Agua Fria High School (1,736 Students)

• Visible to 34,950+ Cars per Day Along N Dysart Rd

• 194,600+ Residents in Growing Avondale Trade Area

• Close Proximity to Target, Walmart Supercenter, PetSmart, JCPenney, Lowe’s, etc.

• Situated in Tremendous Growth Area - Households Expected to Increase 27%+ in Surrounding Area by 2022

• Over 151,645 Daytime Employees in 5-Mile Radius

• 20 Minutes from Downtown Phoenix

DEMOGRAPHICS

Income 1-Mile 3-Miles 5-Miles

2017 Est. Average Household Income $51,629 $72,546 $77,186

2017 Est. Median Household Income $38,492 $59,261 $62,377

2017 Est. Per Capita Income $16,964 $22,666 $24,352

Population 1-Mile 3-Miles 5-Miles

2022 Projection 9,147 107,251 241,293

2017 Estimate 8,711 88,252 194,603

Growth 2017 - 2022 5.00% 21.53% 23.99%

Households 1-Mile 3-Miles 5-Miles

2022 Projections 3,008 34,427 78,177

2017 Estimate 2,762 27,498 61,285

Growth 2017 - 2022 8.91% 25.20% 27.56%

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PETER PIPER PIZZA



REGIONAL MAP




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REGIONAL MAP REGIONAL MAP

Williams-Sonoma

MAP

10 MILESWestgate Entertainment

District

17 MILESDowntown

Phoenix

20 MILESPhoenix Sky HarborInternational Airport

26 MILESArizona State

University

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

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 mat-ters. 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 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 docu-ments related to the property and tenant. While the tenant’s past performance at this or oth-er 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 as well as the Property Owner and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase

Net Leased Disclaimer

exclusively listedExclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

MARK RUBLESenior Managing DirectorPHOENIX OFFICETel: (602) 687-6766Fax: (602) [email protected]

JAMIE MEDRESSSenior Managing DirectorPHOENIX OFFICETel: (602) 687-6778Fax: (602) [email protected]

CHRIS LINDFirst Vice PresidentPHOENIX OFFICETel: (602) 687-6780Fax: (602) [email protected]

peter piper pizza freddy’s frozen custard

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