BLACK ROCK COFFEE

[Pages:9]BLACK ROCK COFFEE

1202 WEST BROADWAY ROAD, TEMPE, ARIZONA

OFFERING MEMORANDUM

BUILDING RENDERING

TEMPE MARKETPLACE

MESA RIVERVIEW

202

101

10

51,585 STUDENTS

20,400 STUDENTS

60

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. ? 2020 Marcus Millichap.

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Executive Summary

FINANCIAL SUMMARY Price Cap Rate Building Size Net Cash Flow Year Built/Renovated Lot Size LEASE SUMMARY Lease Type Tenant Guarantor Roof & Structure Lease Commencement Date Lease Expiration Date Lease Term Remaining Rental Increases Renewal Options

$1,963,000 5.35%

2,200 SF 5.35% $105,000

1983/2020 .68 Acres

Absolute Triple-Net (NNN) Lease Black Rock Store Operations Co.

Corporate Tenant Responsible

January 1, 2020 December 31, 2029

10 Years 10% Every 5 Years

4, 5 Year Option

ANNUALIZED OPERATING DATA Lease Years 1 - 5 6 - 10 Options Option 1 Option 2 Option 3 Option 4

Base Rent Net Operating Income Total Return

Annual Rent $105,000.00 $115,500.00 Annual Rent $127,050.00 $139,755.00 $153,730.50 $169,103.55

Cap Rate 5.35% 5.88% Cap Rate 6.47% 7.12% 7.83% 8.61%

$105,000 $105,000 5.35% $105,000

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202 INDUSTRIAL

51,585 STUDENTS

STUDENT HOUSING

10

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33,500 CPD

BROADWAY RD

BURGER KING MCDONALD'S

TEMPE HIGH SCHOOL

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Property Description

BUILDING RENDERING

INVESTMENT HIGHLIGHTS ? New 10-Year Absolute Triple-Net (NNN) Corporate Lease ? Grand Opening Scheduled for November 8, 2020 ? Brand New 2020 Renovation ? 10% Rental Increases Every 5 Years ? 304,833 Residents in Growing Tempe Trade Area - Phoenix MSA ? Excellent Location Just Minutes from Arizona State University's Tempe Campus

(51,585+ Students) ? Visible to 33,500+ Cars/Day Along West Broadway Road ? Immediately Off the I-10 Freeway, the Primary Connector for the Phoenix Area ? Down the Road from Tempe High School (1,580+ Students) ? Strong Daytime Population - 610,600 Employees in Surrounding Area ? Average Household Income Exceeds $63K within a 5-Mile Radius

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DEMOGRAPHICS 1-mile 3-miles 5-miles

Population

2023 Projection 2018 Estimate Growth 2018 ? 2023

Households

2023 Projection 2018 Estimate Growth 2018 ? 2023

Income

2018 Est. Average Household Income 2018 Est. Median Household Income 2018 Est. Per Capita Income

8,227 8,139 1.08%

121,309 119,968

1.12%

310,731 304,833

1.94%

3,569 3,463 3.07%

47,482 46,114 2.97%

127,733 122,461

4.31%

$61,802 $58,249 $63,974 $50,130 $43,491 $46,113 $26,434 $23,811 $26,314

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Tenant Overview

BUILDING RENDERING

Private

Company Type

Portland, Oregon

Headquarters

2008

Founded

60+

Locations

br.coffee

Website

Based in Portland, Oregon, Black Rock Coffee Bar is a contemporary coffee chain with locations throughout the West Coast. Through their employee franchise program, employees have the opportunity to open their own locations, ensuring that Black Rock's culture is maintained and consistent at each new location. Currently, there are over 60 locations throughout Oregon, Arizona, California, Nevada, Washington, Idaho, and Colorado with more locations coming soon in each state.

In 2008, three families with experience ranging from construction to coffee teamed up to found Black Rock Coffee Bar. The success of Black Rock can be attributed to its consistent culture; regardless of where the franchise exists, customers are guaranteed a hip, stylish, positive brand experience inside the store and beyond. Black Rock has a variety of store types, including one- and two-window drive thru locations, sit-down/drive thru locations, and sit-down only locations.

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Building Elevations

NORTH ELEVATION

WEST ELEVATION

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SOUTH ELEVATION

EAST ELEVATION

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Location Overview

2 Miles

to Arizona State University

5 Miles

to Phoenix Sky Harbor International Airport

8 Miles

to Scottsdale Fashion Square

9 Miles

to Downtown Phoenix

Located just 10 minutes east of downtown Phoenix, Tempe exudes its own personality and the youthful spirit of a college town. Home to Arizona State University, the largest public university in the United States, Tempe has a vibrant downtown that's active day and night. Visitors will find locally-owned eateries and microbreweries, annual festivals, arts and cultural events. And plenty of opportunities to enjoy over 300 days of sunshine a year on a bike, hiking trail or stand-up paddleboard.

While enjoying dynamic growth, the city has maintained its unique personality and style through a careful and masterful blending of the new with the old. Respecting its heritage and energetically planning for the future, Tempe is a wonderful mix of history and modern urban amenities. Tempe has a distinct identity as an emerging destination city, replete with all the offerings of a city rich

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in economics, technology, culture, tourism and educational resources. Tempe offers a blend of quality new developments, revitalization and redevelopment, prestigious institutions such as Arizona State University, and celebrated traditions. Tempe brings it all together ? bright Arizona sun, rewarding places to work, diverse cultures, a myriad of recreational opportunities, the best in entertainment and an unparalleled Southwestern lifestyle.

Tempe maintains one of the most thriving economic environments in the country, home to top research firms, Fortune 500 companies, and start-ups. The city's largest employers include Arizona State University, State Farm, Salt River Project, Honeywell, Medtronic, and Insight Direct. Tempe has the most educated and technically-skilled workforce in Arizona. It is a young and diverse community, with a median age of 28.1.

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