PANDA EXPRESS & FIVE GUYS - 2800 NORTH CAMPBELL AVENUE, TUCSON, ARIZONA - OFFERING MEMORANDUM
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PANDA EXPRESS & FIVE GUYS
2800 NORTH CAMPBELL AVENUE, TUCSON, ARIZONA
OFFERING MEMORANDUM
TUCSON MALL
19 SUBJECT
PROPERTY
44,800 STUDENTS
WEST CAMPUS
DOWNTOWN
TUCSON
The information in this package 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 Z0070501
MARCUS & MILLICHAP 2 // Panda Express & Five Guys
SUBJECT
PROPERTY
36,750 CPD
N CAMPBELL AVE
44,800 STUDENTS
MARCUS & MILLICHAP 3 // Panda Express & Five Guys
Rent Roll
Lessee Information as of February 2021
2800 North Campbell Avenue, Tucson, AZ 85719
APPROX.
PERCENT EST. LEASE EST. LEASE APPROX BASE RENT
TENANT NAME RENTABLE ANNUAL RENT RENTAL INCREASES RENEWAL OPTIONS
OCCUPANCY COMMENCEMENT EXPIRATION RENT PSF PER MONTH
SQ.FT.
3, 5 Year Options;
5% Increase on
Panda Express 3,148 49.8% 6/21/2012 4/30/2028 $40.70 $10,676.97 $128,123.64 Initial 2 Options @ 5% Every 5
5/1/2023
Years; 3rd Option @ FMV
10% Increase on 2, 5Year Options;
Five Guys (1) 3,169 50.2% 9/7/2010 11/30/2030 $40.00 $10,563.33 $126,759.96
12/1/2025 Both Options at FMV
Total SF 6,317 100% Monthly Income $21,240
Occupied SF 6,317 100% Annual Income $254,884
Available SF 0 0% Average Rent PSF $40.35
(1) Tenant may assign lease to a $5M entity; Personal Guarantee (David Vaughan / Jeff Noyce); 6 unit Franchisee.
MARCUS & MILLICHAP 4 // Panda Express & Five Guys
Income & Expense
Summary
Total Square Feet Per Leases 6,317
Lot Size .91 Acres
Year Built 1985
Occupancy as of February 2021 100%
INCOME
Scheduled Base Rent $254,884
Estimated Total Potential Base Rent $254,884
Plus Expense Reimbursements $31,233
EFFECTIVE GROSS INCOME $286,116
ESTIMATED OPERATING EXPENSES PSF
CAM Expense (1) $21,190 $3.35
Insurance $1,627 $0.26
Property Taxes $12,236 $1.94
TOTAL OPERATING EXPENSES $35,053 $5.55
NET OPERATING INCOME $251,063
OFFERING PRICE $4,565,000
CAPITALIZATION RATE 5.50%
PRICE PER SF $722.65
(1) The above CAM reflects both controllable and non-controllable expenses.
Additionally, it includes a management fee. Panda Express has a 2020 CAM
expense cap of $1.74/psf on controllable CAM only, subject to a 3% growth
rate. Five Guys has a 2020 CAM expense cap of $2.32/psf, subject to a 5%
growth rate. The estimated CAM shown above includes a management fee;
Panda Express cannot exceed 10% Administrative Fee on CAM only. Five
Guys has 10% admin fee on CAM only.
MARCUS & MILLICHAP 5 // Panda Express & Five Guys
TUCSON MALL
Walgreens
MCDONALD'S
CASA CLUB
CONDOMINIUMS
SUBJECT
36,750 CPD
N CAMPBELL AVE PROPERTY
19,785 CPD
E GLENN ST
MARCUS & MILLICHAP 6 // Panda Express & Five Guys
44,800 STUDENTS
DOWNTOWN
TUCSON
JIMMY
JOHN'S
SUBJECT
PROPERTY 19,785 CPD
E GLENN ST
36,750 CPD
N CAMPBELL AVE
MARCUS & MILLICHAP 7 // Panda Express & Five Guys
Property Description DEMOGRAPHICS 1-mile 3-miles 5-miles
Population
2025 Projection 15,420 138,783 283,228
2020 Estimate 15,316 137,108 280,438
Growth 2020 – 2025 0.68% 1.22% 0.99%
Households
2025 Projection 7,477 62,679 123,540
2020 Estimate 7,395 61,576 121,572
Growth 2020 – 2025 1.10% 1.79% 1.62%
Income
2020 Est. Average
$59,576 $52,831 $61,615
Household Income
INVESTMENT HIGHLIGHTS 2020 Est. Median
$41,116 $33,855 $39,025
Household Income
» 100% Leased to Panda & Five Guys – Both Have Long Term Occupancy & Just
2020 Est. Per
Extended Their Lease Terms Capita Income
$29,015 $24,648 $27,434
» Rental Increases Occurring in 2023 and 2025
» 280,438 Residents within a 5-Mile Radius - Growing Tucson Trade Area
» Signalized Hard Corner Location, Visible to 56,625 Cars/Day at the Intersection of North
Campbell Avenue and East Glenn Street
» Situated in Campbell Plaza, Outparcel to Ace Hardware, Albertsons, and Ross
» Neighboring Tenants Include Starbucks, Wells Fargo, Walgreens, Popeye's, Jamba
Juice, Pizza Hut, and More
» 2 Miles North of The University of Arizona (44,800+ Students) and Banner University
Medical Center
» Strong Daytime Population - Nearly 402,000 Employees in Surrounding Area
MARCUS & MILLICHAP 8 // Panda Express & Five Guys
Tenant Overviews
Panda Express Private Rosemead, California 2,100+ www.pandaexpress.com
Company Company Type Headquarters Locations Website
Panda Express is an American fast food restaurant chain serving Ameri- The first Panda Express opened in 1983 in Glendale, California. The chain's
can-Chinese cuisine. With over 2,100 locations, 40,000 associates, and $3 American-Chinese cuisine features bold flavors and fresh ingredients in dish-
billion in sales, it is the largest family-owned and operated Asian dining con- es such as The Original Orange Chicken®, Kung Pao Chicken, Broccoli Beef,
cept in the United States. Panda Express also operates in Canada, Guatema- Chow Mein, and Fried Rice.
la, Japan, Mexico, El Salvador, the Philippines, South Korea, and the United Panda Restaurant Group is the world leader in Asian dining experiences and
Arab Emirates. parent company of Panda Inn, Panda Express, and Hibachi-San.
Five Guys Burgers and Fries Private Lorton, Virginia 1,500+ www.fiveguys.com
Company Company Type Headquarters Locations Website
Five Guys Burgers and Fries ("Five Guys") is an American fast casual restau- Five Guys has developed a cult-like following around the world thanks to its
rant chain focused on hamburgers, hot dogs, and french fries, headquartered hand-formed burgers cooked to perfection on a grill, along with fresh-cut
in Lorton, Virginia. The first Five Guys location opened in 1986 in Arlington, fries cooked in pure peanut oil. The company prides itself on only using fresh
Virginia. By 2001, there were five Five Guys locations in the Washington, D.C. ground beef.
metropolitan area. Today, Five Guys has expanded to more than 1,500 loca- Five Guys' menu features Kosher style hot dogs, bacon dogs, hamburgers,
tions across the United States, Canada, United Kingdom, Europe, Asia, and cheeseburgers, bacon burgers, veggie sandwiches, BLTs, french fries, and
the Middle East. vanilla milkshakes with a variety of toppings.
MARCUS & MILLICHAP 9 // Panda Express & Five Guys
MARCUS & MILLICHAP 10 // Panda Express & Five Guys
Location Overview 2 Miles
SUBJECT to The University of
Arizona
PROPERTY
4 Miles
to Downtown Tucson
9 Miles
to Davis Monthan Air
Force Base
10 Miles
to Tucson International
Airport
Tucson is the second largest metropolitan area in Arizona with just over one HomeGoods, all Fortune 500 companies, have added Tucson locations recently.
million residents and serves as an anchor to businesses located in the Southern The University of Arizona is an integral part of Tucson. It has been named a Top
Arizona corridor. Tucson offers its community an outstanding quality of life along 15 US public research institution, and enjoys a large student enrollment of 44,800
with a low cost of doing business. students and 11,000 administration staff members and faculty. The University
Tucson is known for an innovative manufacturing industry in a variety of of Arizona’s science center in Tucson continues to graduate more students in
different sectors such as biotech, aerospace, healthcare, defense, optics, solar, the optics field than any other similar program in the world. Tucson International
information technology and water. Amazon, Raytheon Missile Systems, IBM, Airport (TUS) serves as an international port of entry and offers non-stop service
Texas Instruments, Intuit Inc., Universal Avionics and the University of Arizona to Phoenix, Los Angeles, San Diego, Las Vegas, San Francisco, Seattle, Salt Lake
are some of the top employers in Tucson where each has a significant presence City, Denver, Minneapolis, Milwaukee, Chicago, Atlanta, Houston, Dallas and
within the community. In addition to Caterpillar and Amazon, Comcast and Albuquerque.
MARCUS & MILLICHAP 11 // Panda Express & Five Guys[ exclusively listed by ]
Mark J. Ruble Jamie A. Medress Chris N. Lind
Executive Managing Director Executive Managing Director Senior Vice President
602 687 6766 602 687 6778 602 687 6780
mruble@marcusmillichap.com jmedress@marcusmillichap.com chris.lind@marcusmillichap.com
Offices Nationwide
www.marcusmillichap.com
NET LEASED DISCLAIMER entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees
By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject
confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property. property at this time, please return this offering memorandum to Marcus & Millichap.
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, This offering memorandum has been prepared to provide summary, unverified financial and physical information
Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information
investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any
about the accuracy or completeness of any information provided. 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,
As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal
of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any
due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in
due diligence examination of this Property for Buyer. 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
Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of
represent the current or future performance of this property. The value of a net leased property to you depends on factors the information provided. All potential buyers must take appropriate measures to verify all of the information set forth
that should be evaluated by you and your tax, financial and legal advisors. herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE
of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all DETAILS.
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 documents related to the property and tenant. While the tenant’s past SPECIAL COVID-19 NOTICE
performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due
the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting
on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due
not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment
other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals
or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and
investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions
the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not
terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely
Buyer’s legal ability to make alternate use of the property. solely on their own projections, analyses, and decision-making.
CONFIDENTIALITY AGREEMENT
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 orYou can also read
