Kuna Retail
Center
D
Kuna
,I
Fully-Occupied Retail Center
In Boise MSA
1027 E Kuna Road, Kuna, ID, 83634
[ www.CapitalPacific.com ]
Kuna Retail
Center
>Fully-occupied retail center leased to Domino’s Pizza and
World Finance.
>10-year lease extension recently executed by Domino’s Pizza
with 12-year historical tenancy since construction.
PRICE: $835,000
CAP: 6.10%
OCCUPANCY. . . . . . . . . . . . . . . . . . 100%
>NNN lease structures with minimal Landlord responsibility.
>2015 Domino’s expansion and remodel to new Domino’s corporate
image concept with $100K invested by Landlord.
>Significant upgrades provided by Landlord to World Finance space and
LEASABLE SF. . . . . . . . . . . . . . . . . ±3,117 SF
parking lot reseal in 2016.
PRICE PER SF. . . . . . . . . . . . . . . . . $268
>Annual rent growth of both tenants provide upside.
LAND AREA. . . . . . . . . . . . . . . . . . . ±13,939 SF
YEAR BUILT. . . . . . . . . . . . . . . . . . . 2005/2015 Renovation
AVG CURRENT RENTS . . . . . . . . . $16.77/SF
PARKING. . . . . . . . . . . . . . . . . . . . . ±13 Spaces or 4.5/1,000 SF
>Located in fastest growing community of Idaho with an overall increase in
population of 195% in the last fifteen years.
>Ideal Boise bedroom community location.
>Frontage on main arterial driving traffic to and from Boise via
Interstate-84 north of the Subject.
>Recent 165-acre annexation and expanded impact boundary lines to
ADDRESS:
accommodate increased population and development.
1027 E Kuna Road, Kuna, ID, 83634
KUNA RETAIL CENTER | 2
About the Tenants
ABOUT
1,200
BRANCHES ACROSS
15 STATES
ABOUT
1962
OPENING YEAR
1 Million
DPZ
11,250+
TOTAL LOCATIONS
NASDAQ
$2B
10%
Increase
CUSTOMERS ANNUALLY
3,500
EMPLOYEES
21 Branches
IN IDAHO
Kuna lease signed by World Finance Company of Idaho, LLC.
2014 REVENUE
=
YEAR OVER YEAR
Kuna lease signed by 2 Bits Pizza, LLC, a three-unit franchisee dba
Domino’s. Lease includes personal guarantee.
Retail Corridor
H&R BLOCK
Kuna Retail Center
E AVALON ST
E KUNA RD
10,189 VPD
KUNA RETAIL CENTER | 4
Site Plan
Pylon Sign
SITE PLAN KEY
E KUNA RD
PARCEL OUTLINE:
LAND AREA:
±13,939 SF
BUILDING AREA: ±3,117 SF
SUBJECT:
NOT A PART:
INGRESS/EGRESS:
RECIPROCAL EASEMENT AGREEMENT
An Easement Agreement is in place between
the Subject and the adjacent parcel, permitting
access to customers and employees via the
adjoining parcel and the use of five unassigned
parking spaces.
Site Plan Not To Scale
KUNA RETAIL CENTER | 5
Construction Details
CONSTRUCTION TYPE
HVAC
Concrete framing.
3 roof-mounted HVAC units.
BUILDING EXTERIOR
LANDSCAPING
Rock wainscot across the front base with
tan synthetic stucco siding and dark red
stucco at Domino’s storefront.
Lawn at building frontage with low maintenance
shrubs and gravel at south property boundary.
WINDOWS
Fixed dual pane glass windows with aluminum
frames and awnings over storefronts.
ROOF
ENVIRONMENTAL TESTING
Flat, built-up membrane.
A Phase I was completed by Materials Testing
& Inspection in March 2016. No recognized
environmental conditions (RECs) were observed.
FOUNDATION
Concrete slab on grade.
DOORS
Swinging glass aluminum doors.
PARKING
±13 Spaces or 4.5/1,000 SF
KUNA RETAIL CENTER | 6
Financial Summary
Target Price Range
PRICE
$835,000
Capitalization Rate
6.10%
Price Per Foot
NET OPERATING INCOME SUMMARY
SCHEDULED INCOME
Scheduled Rent:
Plus: Rent Increases Through:
Plus: Expense Reimbursement
Equals: Scheduled Gross Income
Current Vacancy
Equals: Effective Gross Income (EGI)
Less: OPERATING EXPENSES
CAMS
Property Taxes
Insurance
Management Fee
Reserves
Total Operating Expenses
$268
6/1/2017
5/31/2018
3%
3.0% of EGI
Equals: NET OPERATING INCOME
Per SF
$16.77
$0.30
$5.28
$22.36
($0.67)
$21.69
$52,277
$949
$16,458
$69,685
($2,091)
$67,594
Per SF
$2.10
$2.03
$0.42
$0.65
$0.10
$5.30
$6,559
$6,335
$1,304
$2,023
$312
($16,533)
$16.38
$51,061
This information 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. Buyer must verify the information and bears all risk for any inaccuracies.
This information 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. Buyer must verify the information and bears all risk for any inaccuracies.
KUNA RETAIL CENTER | 7
Rent Roll
Rent Roll
TENANT INFO
LEASE TERMS
Tenant Name
Suite
Size
% of SF
2 Bits Pizza, LLC dba Domino's
1027
2,200
70.58%
CURRENT RENT
Occupancy
Date
8/30/05
Lease
Expiration
9/30/25
Monthly Base
Rent
$3,210
1/1/17
2/29/20
RENT INCREASES
$17.51
Date of
Increase
10/1/17
$1,146
$15.00
1/1/18
$4,356
$16.77
Rent/SF/YR
Comments: Personally guaranteed, new 10-year lease commenced 10/1/2015 upon assignment to new
Operator. Tenant to provide annual operating statement to Landlord. Tenant has exclusive use for the sale of
pizza and pizza delivery within a 500 foot radius at any property directly or indirectly owned or managed by
Landlord.
World Finance Company of Idaho, LLC dba World Finance
1029
917
29.42%
Comments: Tenant responsible for HVAC maintenance and repair following first 12 months capped at $500
alongside cost of scheduled maintenance. Landlord has termination right if Tenant "goes dark" for a period in
excess of 30 consecutive days.
Totals:
3,117
100%
OPTIONS
Monthly Base Additional
Rent
Annual
$3,307
$777
Annual 3% Increases
$1,181
Annual 3% Increases
$172
LEASE
TYPE
NNN
1-3 Yr
90 Day's Notice
FMR
NNN
$949
This information 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.
Buyer must verify the information and bears all risk for any inaccuracies.
This information 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. Buyer must verify the information and bears all risk for any inaccuracies.
KUNA RETAIL CENTER | 8
Operating Expenses
Operating Expenses
PROJECTED OPERATING EXPENSES
REIMBURSEMENTS
Total
/SF
Notes
CAMS
$6,559
$2.10
1
$6,559
Property Taxes
$6,335
$2.03
2
$6,335
Insurance
$1,304
$0.42
3
$1,304
Management
$2,023
$0.65
4
$2,260
$312
$0.10
5
$16,533
$5.30
Reserves
Total Expenses
$16,458
Notes:
1) Based on 2016 Budget with assumed 3% increase.
2) Based on 2016 Tax Assessment.
3) Based on 2015 P&L with assumed 3% increase.
4) Based on 3.0% of EGI. Reimbursements include Admin Fees.
5) Methodology: $0.10/SF.
4/13/2017
This information 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. Buyer must verify the information and bears all risk for any inaccuracies.
[ www.CapitalPacific.com ]
<
>
KUNA RETAIL CENTER | 9
Reimbursements
Reimbursements
Tenant Name
Pro Rata %
Expense Total
CAMS
Property
Taxes
Insurance
Management
$6,559
$6,335
$1,304
$2,023
2 Bits Pizza, LLC dba Domino's
70.58%
$4,629
$4,471
$920
$1,428
World Finance Company of Idaho, LLC dba World Finance
29.42%
$1,930
$1,864
$384
$0
100.00%
$6,559
$6,335
$1,304
$1,428
TOTAL
Admin Fee
Admin
Collected
Notes
Tenant Totals
15%
$832
1
$12,281
$4,177
$832
$16,458
Notes:
1) Admin based on CAMs and insurance.
This information 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. Buyer must verify the information and bears all risk for any inaccuracies.
KUNA RETAIL CENTER | 10
Kuna Development & Growth
E DEER FLAT RD
POPULATION & DEVELOPMENT GROWTH
Kuna is a bedroom community of Boise, whose population has increased
dramatically in the last five years, with an overall increase of 182% between
2000-2010. Kuna houses a growing number of residents, spurring new
housing developments including lots for 800 new homes in 2015-2016
and a brand new 165-acre tract of annexed land slated for primarily
residential development. Kuna’s growth is attracting a wealth of national
tenants new to the city.
Click HERE for more information.
A brand new $130 million plant for C.S. Beef Packers was built in 2016
and is estimated to bring 700 jobs to Kuna and neighboring communities.
The new plant is located just inside Kuna City limits per a 2017 165-acre
annexation approved by the City.
N MERIDIAN RD
COMMERCIAL DEVELOPMENTS UNDERWAY
PROFILE RIDGE SUBDIVISION
821 N Meridian Rd., Kuna, ID 83634
SIZE: 17 Acre subdivision of Profile Ridge
NOTES: Brand new center anchored by Tractor Supply,
Dollar Tree and newly-approved Bi-Mart; 80,000 SF of pad space.
COMPLETION DATE: Fall 2016 / Bi-Mart-Underway
IDAHO CENTRAL CREDIT UNION BRANCH
Kuna Retail Center
NOTES: Brand new built-to-suit pad site of Ridley’s.
COMPLETION DATE: Underway - Fall 2017
REEL THEATRE
NOTES: Highly-anticipated nine-screen theatre.
COMPLETION DATE: Underway - 2017
E KUNA RD
Area Intel
MERIDIAN
BOISE METROPOLITAN AREA OVERVIEW
Boise is the capital and most populous city of the state of Idaho, as well as the county seat
of Ada County. Located on the Boise River, it anchors the Boise City-Nampa metropolitan
area and is the largest city between Salt Lake City, Utah and Portland, Oregon. The Boise
metropolitan area is home to approximately 616,500 people and is the most populous
metropolitan area in Idaho, containing the state’s three largest cities; Boise, Nampa, and
Meridian.
2016 HOUSEHOLD INCOMES
Median Average
1-Mile
$53,139 $63,401 3-Mile
$54,844 $64,095 Boise is the headquarters for several major companies, such as Boise Cascade LLC,
Albertsons, J.R. Simplot Company, Idaho Pacific Lumber Company, Idaho Timber,
WinCo Foods, Bodybuilding.com, and Clearwater Analytics. Other major industries
are headquartered in Boise or have large manufacturing facilities present. The state
government is also one of the city’s largest employers.
93,000
IDAHO HAS THE
11th FASTEST
NEW JOBS
IN IDAHO
GROWING POPULATION
REPLACED 60,000 LOST
DURING THE RECESSION
IN THE UNITED STATES
3.8%
POPULATION
2010
2016
2021
1-Mile
4,337 4,817 5,270 3-Mile
16,748 18,849 20,627 Kuna Retail Center
Boise
25 Min
18 Miles
1-Mile
3-Miles
Nampa
19 Min
11 Miles
5-Miles
Kuna
5-Mile
22,490
25,166
27,599
80%
POPULATION
GROWTH SINCE
2000
UNEMPLOYMENT
RATE STATEWIDE
Meridian
18 Min
10 Miles
5-Mile
$57,044
$68,943
3rd LARGEST
CITY IN IDAHO
A unique HUMAN
RESULTS-DRIVEN
client experience
THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS
[ www.CapitalPacific.com ]
SEAN MACK
PETER DUNN
MICHAEL HORWITZ
SEAN TUFTS
[email protected] | (503) 675-8378
[email protected] | (503) 675-8381
[email protected] | (503) 607-0197
KEVIN ADATTO
[email protected] | (503) 675-7726
[email protected] | (206) 693-3352
[ Copyright © 2017 Capital Pacific LLC ]