CHEVRONDQ GAS STATION & C-STORE
5 9 6 0 N O R T H O R A C L E R O A D | T U C S O N | 8 5 7 0 4
±3,988 SF SINGLE TENANT NET LEASED INVESTMENT PRICE: $2,990,000.00 CAP RATE: 5.35%
O F F E R I N G M E M O R A N D U M
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 5960 North Oracle Road, Tucson, Arizona 85704 (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 (11/19/19) 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
602 952 3875 | [email protected]
PREPARED BY
2398 East Camelback Road, Suite 950Phoenix, AZ 85016
RYAN MORONEYAssociate Director
602 952 3820 | [email protected]
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 Chevron | DQ (the Property) absolute net
lease offering, a 3,988-square-foot gas station and convenience store
(c-store) in Tucson, Arizona.
This single-story building is located on ±0.84 acres with frontage at a
signalized intersection of one of Tucson’s busiest arterials, Oracle Road.
The Chevron | DQ location on this main arterial is 15 minutes from
Downtown Tucson and the University of Arizona (±44,831 students).
The property boasts strong income in the area ($80K+ within 3 miles)
and ±47,000 vehicles per day on North Oracle Road.
PROPERTY NAME Chevron | DQ
BUILDING ADDRESS 5960 North Oracle Road | Tucson, Arizona 85074
TENANT Chevron & Dairy Queen
YEAR BUILT 1985
TOTAL BUILDING AREA ±3,988 SF
LAND AREA 0.84 AC
TRAFFIC COUNTS ±47,000 VPD
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±4
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WEST RUDASILL ROAD
TUCSON TRAVELERS ASSOC. HOME FURNITURE OF TUCSONGUISEPPE’SKIDS UNLIMITEDSHAFFER DRY CLEANING & LAUNDRY
ARTIQUESALAN’S SHOESLESCO OPTICAL
WITHIN THE HEART, OF NORTH TUCSON DENSE 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
TUCSON MALL±1,287,206 SF
ORACLE RIDGE SHOPPING CENTER
±30,623 SF + PADS and U/C
NORTH ORACLE ROAD: ±47,000 VPD
WEST RUDASILL ROAD
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02 FINANCIAL & LEASE SUMMARY
PRICE $2,990,000.00
CAP RATE 5.35%
NOI / ANNUALLY $160,000.00 (as of November 2019)
FINANCING Free & Clear
FINANCIAL SUMMARY
FINANCIAL & LEASE SUMMARY
LEASE SUMMARY
TENANT Chevron & Dairy Queen
LEASE GUARANTOR Sal Markets, LLC,(4-Unit Entity & Personal Guarantee)
LEASE TYPE Absolute NNN Lease
NOI / ANNUALLY $160,000.00 (as of November 2019)
RENT PER SF $40.12
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 11/1/2018
LEASE EXPIRATION 11/30/2038
ORIGINAL LEASE TERM 20 Years
REMAINING TERM 19.1
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 also provides the rare opportunity for an investor to see two percent (2%) annual increases throughout the original lease term.
TUCSON MALL±1,287,206 SF
ORACLE RIDGE SHOPPING CENTER±30,623 SF + PADs
and U/C
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03 TENANT PROFILE
LEASE EXPIRATION 11/30/2038
WEBSITE chevron.com
180+ COUNTRIES
CHEVRON RANKS
OIL REFINERIES
2.93M NET OIL BARRELS/DAY
In 2018, Chevron produced 2.93 million net oil-equivalent barrels per day from operations around
the world
Chevron Corporation is an American multinational
energy corporation. One of the successor companies
of Standard Oil, it is headquartered in San Ramon,
California, and active in more than 180 countries.
Chevron is engaged in every aspect of the oil, natural
gas, and geothermal energy industries, including
hydrocarbon exploration and production; refining,
marketing and transport; chemicals manufacturing
and sales; and power generation. Chevron is one of
the world’s largest oil companies; as of 2019, it ranked
eleventh in the Fortune 500 list of the top US closely
held and public corporations and 28th on the Fortune
Global 500 list of the top 500 corporations worldwide.
It was also one of the Seven Sisters that dominated the
global petroleum industry from the mid-1940s to the
1970s. Chevron is incorporated in California.Chevron is a multinational
corporation with business and retail locations in more than
180 countries
Chevron ranked 11th in the Fortune 500 list of the top US closely held and public corporations & 28th on the Fortune Global 500 list of the top 500 corporations worldwide.
Chevron ranked 11th in the Fortune 500 list of the top US closely held and public
corporations
LEASE EXPIRATION 11/30/2038
WEBSITE dairyqueen.com
Dairy Queen (DQ) is an American chain of soft serve ice
cream and fast-food restaurants owned by International
Dairy Queen, Inc., a subsidiary of Berkshire Hathaway.
International Dairy Queen, Inc., also owns Orange
Julius and Karmelkorn.
The first DQ restaurant was located in Joliet, Illinois.
It was operated by Sherb Noble and opened for
business on June 22, 1940. It served a variety of frozen
products, such as soft serve ice cream.
The company’s corporate offices are located in the
Minneapolis suburb of Edina, Minnesota.
The company’s stores are operated under several
brands, all bearing the distinctive Dairy Queen logo and
carrying the company’s signature soft-serve ice cream
(along with the trademark “curl”). In the 1970s, most
restaurants were “Brazier” locations with a second floor
for storage, recognizable for their red mansard roofs.
The largest Dairy Queen in the United States is located in
Bloomington, Illinois. The largest store in the world was
built in Riyadh, Saudi Arabia. The busiest store in the
world is located in Charlottetown, Prince Edward Island.
Through its subsidiaries, IDQ develops, licenses and
services a system of more than 6,800 locations in the
United States, Canada and more than 25 other countries.
Today, DQ is a $4.5B brand.
6,800+LOCATIONS
In the United States, Canada and more than
25 other countries.
$4.5 BILLIONBRAND
International Dairy Queen has been positioned as a leader in the quick-service restaurant
industry both in the U.S. as well as internationally. Today, the DQ
system is a $4.5 billion brand
04 AREA OVERVIEW
TUCSON
A diverse and welcoming community, Tucson offers an outstanding quality of life along with a low cost of doing business. Our manufacturers lead the
way in innovation, in sectors as varied as aerospace, biotech, defense, healthcare, information technology, optics, solar, and water.
Tucson has the highest concentration of startups of any U.S. city its size and is ranked as a top five city for entrepreneurs by Entrepreneur Magazine.
Just 60 miles from the Mexico border, with high-capacity border and transportation infrastructure, Tucson is the natural choice for companies doing
business in the U.S. and Mexico.
MARANA
Marana is fast becoming known as the most business supportive community in Southern Arizona. With exceptional access to multimodal transportation,
a newly reorganized Development Services Center and a local government that values corporate investment, businesses both large and small are taking
advantage of development opportunities in Marana.
5-MILE DEMOS
181,437POPULATION
80,096HOUSEHOLDS
39.1MEDIAN AGE
$71,860AVERAGE HH INCOME
AREA OVERVIEW
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NORTH ORACLE ROAD: ±47,000 VPD
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RYAN MORONEYAssociate Director+1 602 952 3820
DAVID GUIDOManaging Director+1 602 952 [email protected]
TIM WESTFALLManaging Director+1 602 952 3822
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.