OFFERING MEMORANDUM - POPEYES - NNN ...
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Representative Photo
POPEYES
EXCLUSIVE NET -LEASE OFFERING
OFFERING
MEMORANDUM 1275 Gateway Blvd, Cottage Grove, OR 97424
Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected
Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square
sales with little or no record of actual performance, or footage of the property and improvements, the presence or
The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the
obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical
Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial
information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s
investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject
no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure
accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable;
intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify,
As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus &
responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters
completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding
purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All
thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of
opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein.
to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release
Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE
Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising
Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc.
the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any
net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package.
evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended
to indicate or imply affiliation with, or sponsorship or
Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or
should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing
leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing
suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective
written consent of Marcus & Millichap. This Marketing Brochure customers.
Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information
risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE
and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE
the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS.
this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation,
guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the
Table of Contents
Investment Highlights 4
Financial Analysis 5
Concept & Guarantor Overview 6
Surrounding Area 7
Location Overview 8
Local Map 9
Regional Map 10
Demographics / Market Overview 11-12
Representative Photo
Investment Highlights
PRICE: $3,708,089 | CAP: 4.50%| RENT: $166,864
About the Investment
✓ Brand New 20 Year Lease That That Commences at Close of Escrow
✓ Rent Commences on April 1, 2022 | Seller will Credit Buyer Rent at Closing
✓ Triple Net (NNN) Lease with Zero Landlord Responsibilities
✓ Attractive Rental Increases of 1.75% Percent Annually Beginning in Year 6
✓ Four (4) Tenant Renewal Periods of Five (5) Years Each
About the Location
✓ Dense Retail Corridor | Walmart, Walgreens, Bi-Mart, Grocery Outlet, O’Reilly Auto
Parts, AutoZone Auto Parts, Arby’s, McDonalds, Jack in the Box, Subway and More
✓ Strong Traffic Counts | I-5 and Row River Rd | Boasts Average Daily Traffic Counts of
Approximately 27,699 and 14,500 Vehicles, Respectively
✓ Large Academic Presence | Cottage Grove High School is Located Just Over Two-
Miles from the Subject Property | Combined Enrollment of 800 Students Representative Photo
About the Tenant / Brand
✓ Popeyes is the World’s Second Largest Quick Service Chicken Concept
✓ Popeyes is a Unique, Highly-Differentiated Brand - Internationally-recognized
Louisiana heritage since 1972
✓ Ambrosia QSR is a Well-Funded Developer and Operator of Burger King and Popeyes
Locations Throughout Washington and Oregon
✓ Lease Guaranteed by Ambrosia QSR II, LLC | A 12-Unit Popeyes Entity with Plans for
Expansion
Representative Photo
Popeyes 4
Financial Analysis
PRICE: $3,708,089 | CAP: 4.50%| RENT: $166,864
PROPERTY DESCRIPTION RENT SCHEDULE
Property Popeyes Lease Year Annual Rent Monthly Rent Rent Escalation
Property Address 1275 Gateway Blvd Year 1 $166,864 $13,905 -
City, State ZIP Cottage Grove, OR 97424 Year 2 $166,864 $13,905 -
Year Built / Renovated New Construction - Expected to Open March 2022 Year 3 $166,864 $13,905 -
Year 4 $166,864 $13,905 -
Building Size (SF) 2,333
Year 5 $166,864 $13,905 -
Lot Size (Acres) +/- 1.00 Acres
Year 6 $169,784 $14,149 1.75%
Type of Ownership Fee Simple Year 7 $172,755 $14,396 1.75%
THE OFFERING Year 8 $175,779 $14,648 1.75%
Year 9 $178,855 $14,905 1.75%
Purchase Price $3,708,089
Year 10 $181,985 $15,165 1.75%
CAP Rate 4.50%
Year 11 $185,169 $15,431 1.75%
Annual Rent $166,864 Year 12 $188,410 $15,701 1.75%
LEASE SUMMARY Year 13 $191,707 $15,976 1.75%
Property Type Year 14 $195,062 $16,255 1.75%
Net-Leased Restaurant
Year 15 $198,475 $16,540 1.75%
Tenant / Guarantor Ambrosia QSR II, LLC
Year 16 $201,949 $16,829 1.75%
Rent Commencement April 1, 2022 Year 17 $205,483 $17,124 1.75%
Original Lease Term 20 Years Year 18 $209,079 $17,423 1.75%
Lease Commencement At Close of Escrow Year 19 $212,738 $17,728 1.75%
Lease Expiration 20 Years from Store Opening Year 20 $216,461 $18,038 1.75%
Lease Term Remaining 20 Years INVESTMENT SUMMARY
Lease Type Triple Net (NNN) Marcus & Millichap is pleased to present the exclusive listing for a Popeyes located at
1275 Gateway Boulevard in Cottage Grove, OR. The property consists of 2,333 square
Roof & Structure Tenant Responsible feet of building space and is situated on an estimated 1.00-acres of land. The tenant is
Rental Increases 1.75% Annually Starting Year 6 subject to a 20-year absolute triple net (NNN) lease, that commences at the close of
escrow. The base rent is $166,864 and will increase by 1.75% percent annually starting
Options to Renew Four (4), Five (5)-Year Options in year six and continuing throughout the base term and into each of the four (4), five
(5)-year tenant renewal option periods.
*Principals of the NNN Pro Group and Marcus and Millichap, are part fee owners of this property. They are licensed real estate salespeople for Marcus and Millichap in the State of New York.
Popeyes 5
Concept & Guarantor Overview
About Popeyes
Founded in 1972, Popeyes is the world’s second largest quick service
chicken concept as measured by total number of restaurants (only
behind KFC). As of December 31, 2018, Popeyes owned or franchised
a total of 3,102 restaurants. Popeyes restaurants are quick service
restaurants that distinguish themselves with a unique “Louisiana”
style menu featuring spicy chicken, chicken tenders, fried shrimp and
other seafood, red beans and rice and other regional items. Popeyes
was acquired on March 27, 2017 for a total consideration of $1.7
billion by Restaurant Brands International (NYSE: QSR).
Fun Facts:
➢ Global Leadership in Chicken Segment - One of the largest players Representative Photo
with rapidly-growing market share
➢ Unique, Highly-Differentiated Brand - Internationally-recognized
Louisiana heritage since 1972 Ambrosia QSR
➢ Highly-Attractive Unit Economics - >$1.4mm ARS and strong Ambrosia QSR is a well-funded developer and operator of Popeyes and
Burger King locations. They are based out of Vancouver, WA with over
franchisee EBITDA margins
100 locations throughout the Pacific Northwest. With new capital
➢ Nearly Fully-Franchised Business Model - 98% franchised, leading
investors, the tenant is looking to expand, and the strength of the
to healthy margins and cash flow operator will only continue to grow over the next few years. The operator
➢ Significant Expansion Opportunity in the U.S. - Consistent track is following a tactical and sophisticated development thesis by selecting
record of successful growth across the country high quality locations with tremendous upside potential. The guarantor is
➢ International Growth Acceleration - Numerous development Ambrosia QSR II, LLC, a 12-unit Popeyes entity.
agreements signed in last few years
Popeyes 6
Surrounding Area Popeyes 7
Location Overview
The Popeyes property on Gateway Boulevard which serves as an access road to I-5
and intersects with Row River Rd. I-5 and Row River Road which experience
average daily traffic counts of 27,699 and 14,350 vehicles per day, respectively.
There are approximately 17,318 individuals within a five-mile radius of the subject
property and 28,400 individuals within a ten-mile radius.
ADTC: 14,350
The subject property benefits from being located in a dense retail corridor
surrounded by national and local tenants, shopping centers, car dealerships, and
medical facilities. Major national tenants in the area include Walmart, Walgreens,
Bi-Mart, Grocery Outlet, O’Reilly Auto Parts, AutoZone Auto Parts, Arby’s,
McDonalds, Jack in the Box, Subway, as well as many more. The subject property
benefits from being located less than a mile rom Cottage Grove Community
Hospital. The facility provides 24-hour emergency care and a 14-bed inpatient unit.
The subject property is located within a five-mile radius of several academic
intuitions. Most notable of these Cottage Grove High School, located two-miles
from the subject property with a total enrollment of approximately 800 students.
Cottage Grove is a city in Lane County, Oregon, United States. It is the third largest
city in Lane County. The city is located on Interstate 5, Oregon Route 99, and the
main Willamette Valley line of the CORP railroad. Cottage Grove is located just over
twenty-miles from Eugene. Eugene is the state's third most populous city (after
Portland and Salem) and the county seat of Lane County. The Eugene-Springfield,
Oregon metropolitan statistical area (MSA) is the 146th largest metropolitan
statistical area in the US and the third-largest in the state, behind the Portland
Metropolitan Area and the Salem Metropolitan Area. Eugene is home to the
University of Oregon, Northwest Christian University, and Lane Community
College. The city is also noted for its natural environment, recreational
opportunities, such as bicycling, running/jogging, rafting, and kayaking, and its ADTC: 27,699
focus on the arts. Eugene’s official slogan is “A Great City for the Arts and
Outdoors.” It is also referred to as the “Emerald City” and as “Track Town, USA.”
The Nike corporation had its beginnings in Eugene. In 2021, the city will host the
18th Track and Field World Championships.
Popeyes 8Local Map Popeyes 9
Regional Map
OREGON
Popeyes 10Demographics
3 Miles 5 Miles 10 Miles
Population Trends:
2010 Population 14,115 16,337 27,001
10 Miles 2020 Population 15,095 17,318 28,400
2025 Population Projection 16,012 18,343 30,040
Growth 2010 - 2020 0.70% 0.60% 0.50%
Growth 2020 - 2025 1.20% 1.20% 1.20%
5 Miles Population by Race (2020):
White 13,931 15,996 26,334
Black 68 76 132
American Indian/Alaskan Native 254 284 431
Asian 228 258 385
3 Miles Hawaiian & Pacific Islander 12 15 30
Two or More Races 603 688 1,088
Hispanic Origin 1,160 1,257 2,051
Household Trends:
2010 Households 5,661 6,541 10,665
2020 Households 6,057 6,932 11,227
2025 Household Projection 6,426 7,343 11,878
Growth 2010 - 2020 0.30% 0.20% 0.10%
Growth 2020 - 2025 1.20% 1.20% 1.20%
Owner Occupied 4,077 4,803 8,257
Renter Occupied 2,349 2,540 3,621
Average Household Income (2020): $58,658 $60,499 $66,357
Households by Household Income (2020):Market Overview
Cottage Grove is a city in the U.S. state of Oregon, in the
Pacific Northwest located just under twenty miles from Eugene. Eugene is at the
southern end of the verdant Willamette Valley, near the confluence of the
McKenzie and Willamette Rivers, about 50 miles east of the Oregon Coast. Eugene
is the state's third most populous city (after Portland and Salem) and the county
seat of Lane County. The Eugene-Springfield, Oregon metropolitan statistical area
(MSA) is the 146th largest metropolitan statistical area in the US and the third-
largest in the state, behind the Portland Metropolitan Area and the Salem
Metropolitan Area. The city's population for 2018 was estimated to be 171,245 by
the US Census. Eugene is home to the University of Oregon, Northwest Christian
University, and Lane Community College. The city is also noted for its natural
environment, recreational opportunities, such as bicycling, running/jogging,
rafting, and kayaking, and its focus on the arts. Eugene’s official slogan is “A Great
City for the Arts and Outdoors.” It is also referred to as the “Emerald City” and as
“Track Town, USA.” The Nike corporation had its beginnings in Eugene. In 2021,
the city will host the 18th Track and Field World Championships.
Eugene’s largest employers are PeaceHealth Medical Group, the University of
Oregon, and the Eugene School District. Eugene’s largest industries are wood
products manufacturing and recreational vehicle manufacturing. Eugene has
quickly made a name for itself as a culinary hub in Oregon. The city has over 25
breweries, offers a variety of fine dining options with a local focus; the city is
surrounded by award-winning wineries.
Eugene, Oregon
Popeyes 12E XC LU S I V E N E T L EA S E O F F E R I N G Adam Lewis Broker of Record 111 SW 5th Ave., Ste. 1950 Portland, OR 97204 P: (503) 200-2000 1275 Gateway Blvd, Cottage Grove, OR 97424 Lic #: 201209561 Firm Lic #: 200709023
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