OFFERING MEMORANDUM MAX’S FUEL & FOOD · 2020-03-06 · THE OFFERING Newmark Knight Frank (NKF), as exclusive advisor, is pleased to present the opportunity to acquire the Max’s

±2,546 SF SINGLE TENANT NET LEASED INVESTMENT PRICE: $2,000,000.00 CAP RATE: 5.25%

O F F E R I N G M E M O R A N D U M

MAX’S FUEL & FOOD SHELL BRANDED GAS STATION & C-STORE

1201 EAST MISSOURI AVENUE | PHOENIX | 85014

TIM WESTFALLManaging Director

602 952 3822 | [email protected]

AFFILIATED BUSINESS DISCLOSURE

Newmark Knight Frank (the “Agent”) has been engaged as the exclusive sales representative for the sale of 1201 East Missouri Avenue, Phoenix, Arizona 85014 (the ”Property”) by ‘Ownership’ (the “Seller”).

This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation (10/1/19) of this Memorandum have remained the same. Analysis and verification of the information contained in this Memorandum are solely the responsibility of the prospective purchaser.

Additional information and an opportunity to inspect the Property will be made available upon written request of interested and qualified prospective purchasers. Seller and Agent each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property, and/or terminate discussions with any party at any time with or without notice. Seller reserves the right to change the timing and procedures for the Offering process at any time in Seller’s sole discretion. Seller shall have no legal commitment or obligations to any party reviewing this Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Seller, and a written agreement for the purchase of the Property has been fully executed and delivered by Seller and the Purchaser thereunder.

This Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not forward, photocopy or duplicate it, that you will not disclose this Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller or Agent, and that you will not use this Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Agent.

DAVID GUIDOManaging Director


PREPARED BY

2398 East Camelback Road, Suite 950Phoenix, AZ 85016

RYAN MORONEYDirector


01 EXECUTIVE SUMMARY

02 FINANCIAL & LEASE SUMMARY

03 TENANT PROFILE

04 AREA OVERVIEW

CONTENTS

01 EXECUTIVE SUMMARY

THE OFFERING

Newmark Knight Frank (NKF), as exclusive advisor, is pleased

to present the opportunity to acquire the Max’s Fuel & Food (the

Property) on a long-term absolute NNN lease, a 2,546-square-foot

gas station and convenience store (c-store) in Phoenix, Arizona.

This single-story building is located on ±0.366 net acres in the

Uptown submarket, which boasts strong income in the area ($80K+

within 3 miles) with heavy traffic (20K+ VPD).

PROPERTY NAME Max’s Fuel & Food

BUILDING ADDRESS 1201 East Missouri Avenue | Phoenix | 85014

TENANT Max’s Food & Fuel

YEAR BUILT 1987

TOTAL BUILDING AREA 2,546

LAND AREA 0.366 net acres

TRAFFIC COUNTS

North/South: ±12,015 VPDEast/West: ±20,401 VPD

1111 MISSOURIAPARTMENTS

VIRGINIA G PIPERCHARITABLE TRUST

AVENDIA HERMOSA

APARTMENTS

DOWNTOWNPHOENIX

EAST MISSOURI AVENUE: ±

20 ,401 VPD


20 ,401 VPD

NORTH 12TH STREET: ±12 ,015 VPD


WITHIN A DENSE, INFILL PHOENIX

TRADE AREA

OFFERING HIGHLIGHTS

ON THE HARD CORNER OF A SIGNALIZED

INTERSECTION

LOW RENT PSF COMPARED TO COMPETING USERS IN THIS CATEGORY

19.1 YEARS REMAINING ON AN ORIGINAL 20-YEAR TERM W/ TWO (2) TEN-YEAR OPTIONS

2% INCREASES EVERY YEAR THROUGHOUT THE INITIAL TERM

OF THE LEASE

TENANT/OPERATOR HAS REPORTED

STRONG UNIT LEVEL SALES


20 ,401 VPD


20 ,401 VPD



AVENDIA HERMOSAAPARTMENTS

THE MADISON



124,847 VPD

02 FINANCIAL & LEASE SUMMARY

LEASE SUMMARY

PRICE $2,000,000.00

CAP RATE 5.25%

NOI / ANNUALLY $105,000.00 (as of October 2019)

FINANCING Free & Clear

FINANCIAL SUMMARY

FINANCIAL & LEASE SUMMARY

TENANT Max’s Fuel & Food

LEASE GUARANTOR Sal Markets, LLC (4-Unit Entity & Personal Guarantee)

LEASE TYPE Absolute NNN Lease

NOI / ANNUALLY $105,000.00 (as of October 2019)

RENT PER SF $41.24

TENANT RESPONSIBILITY

Tenant shall keep and maintain the Premises and Premises’ Improvements, including maintenance of interior and exterior building, all maintenance/repair of HVAC, plumbing and electrical systems.

LANDLORD RESPONSIBILITY None

LEASE COMMENCEMENT 11/30/2018

LEASE EXPIRATION 11/30/2038

ORIGINAL LEASE TERM 20 Years

REMAINING TERM 19.1 Years

LEASE OPTIONS Two 10-Year Options to Renew

RENTAL INCREASES 2% Annually

The absolute NNN lease has 19.1 years remaining on its original 20-year term. There are two 10-year options with increases. This offering provides the rare opportunity for a potential investor to see two percent (2%) annual increases throughout the original lease term.

03 TENANT PROFILE

LEASE EXPIRATION 2038

SF LEASED 100%

70+ COUNTRIES

$113M VOLUNTARY INVESTMENTS

OIL REFINERIES

3.7M NET OIL BARRELS/DAY

In 2018, Shell produced 3.7M net oil-equivalent barrels per day from operations around

the world

Shell is a global group of energy and

petrochemical companies with an average of

86,000 employees in more than 70 countries

which uses advanced technologies and takes an

innovative approach to help build a sustainable

energy future.

Royal Dutch Shell was formed in 1907, although

its history can be traced back to the first half of

the 19th century.

Headquarters are in The Hague, the Netherlands,

and Chief Executive Officer is Ben van Beurden.

The parent company of the Shell group is Royal

Dutch Shell plc, which is incorporated in England

and Wales.

Shell’s strategy is to strengthen its position as a

leading energy company by providing oil and gas

and low-carbon energy as the world’s energy

system changes. Safety and social responsibility

are fundamental to the business approach.

Shell oil operates in over 70 countries

$47 million was spent on local programmes for community development, disaster relief, education, road safety, health and biodiversity. $66 million was in line with our global themes – access to energy, community skills, enterprise development and science, technology, engineering and maths (STEM) education.

Shell has interests in 21 oil refineries around the world

EAST MISSOURI AVENUE: ±20 ,401 VPD

EAST MISSOURI AVENUE: ±20 ,401 VPD




04 AREA OVERVIEW

UPTOWN PHOENIX

Max’s Fuel & Food is located in the well-established infill submarket of Uptown Phoenix.

Uptown Phoenix has become an important district connecting the north end of the city hub. The Uptown district has about 2.6 million square feet of

existing office space in close proximity to downtown, with approximately 400,000 square feet of Class A space.

Uptown Phoenix centers at the light rail-fueled resurgence around Central Avenue and Camelback Road, where eateries, shopping, office space and

residential areas are once again at a premium.

The Uptown district employs approximately 7,000 employees with a median age of 38.9. The most employed occupations are Clerical & Admin,

Healthcare & Education, Service, and Management. 73% of the estimated population in Uptown have Some College education or above.

Projected growth for this area will result in close to 500 new residents (about 3.7% increase) just around the light rail stations by 2020, providing a

continually expanding labor pool.

5-MILE DEMOS

415,013POPULATION

165,942HOUSEHOLDS

35.1MEDIAN AGE

$74,979AVERAGE HH INCOME

AREA OVERVIEW

EA

ST M

ISS

OU

RI A

VE

NU

E: ±2

0,4

01 V

PD

EA

ST M

ISS

OU

RI A

VE

NU

E: ±2

0,4

01 V

PD

NORTH 12TH STREET: ±12 ,015 VPDNORTH 12TH STREET: ±12 ,015 VPD



RYAN MORONEYDirector

+1 602 952 [email protected]

DAVID GUIDOManaging Director+1 602 952 [email protected]

TIM WESTFALLManaging Director+1 602 952 3822

[email protected]

PREPARED BY

2398 East Camelback Road, Suite 950Phoenix, AZ 85016

Newmark Knight Frank (the “Agent”) has been engaged as the exclusive sales representative for the sale of [insert building address here] (the ”Property”) by ‘Ownership’ (the “Seller”). The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.

Documents

OFFERING MEMORANDUM MAX’S FUEL & FOOD · 2020-03-06 · THE OFFERING Newmark Knight Frank (NKF), as exclusive advisor, is pleased to present the opportunity to acquire the Max’s