Wendy’s Absolute NNN
I-10 & YARBROUGH, EL PASO TX
• Established Wendy’s location
•New 20-Year Absolute NNN lease
•7.5% rent growth every 5 years
•135 store Wendy’s operator
•IA Remodel after close of escrow
Representative Photo - Montaño & I-25 IA Remodel, ABQ NM
BASE 5
RETAIL PARTNERS
In association with:
Highlands Real Estate
Melissa Twomey
Texas Brokers Lic. 0498897
8080 North Central Expressway, Suite 1220
Dallas Texas 75206
COUNT ON US
The information contained herein and attached is
provided from sources deemed reliable. However,
we do not guarantee any of the information as it is
subject to errors, omissions, withdrawal from market,
or change in terms, all without notice. All information
should be independently verified.
Kino James
David Chavez
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
TABLE OF CONTENTS
Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Tentant Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Albuquerque Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Trade Area Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Competitors Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Major Retailers Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Aerial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Albuquerque Market Overview . . . . . . . . . . . . . . . . . 12
Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Wendy’s Company . . . . . . . . . . . . . . . . . . . . . . . . . . 15
BASE 5
RETAIL PARTNERS
COUNT ON US
HIGHLANDS REAL ESTATE
MELISSA TWOMEY
TEXAS BROKERS LIC. 0498897
8080 NORTH CENTRAL EXPRESSWAY, SUITE 1220
DALLAS TEXAS 75206
Kino James
David Chavez
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
INVESTMENT OVERVIEW
Investment Highlights
• New 20-Year Lease at close of escrow
• Absolute Triple-Net (NNN)
• Zero Landlord Responsibilities
• 7.5% Increases Every 5 Years
• Lease guaranty with experienced 135 store operator
• Wendy’s prototype IA concept remodel after close of escrow
Base 5 Retail is pleased to present this absolute NNN Wendy’s investment
opportunity in El Paso, TX. Upon close of escrow, the existing Wendy’s
operator will sign a brand new 20-year absolute triple-net lease, with no
Landlord responsibilities. The lease includes 7.5% rent increases every 5
years with four 5-year option terms.
In 2013, Wendy’s Company (NASDAQ: WEN) ranked #2 for hamburger
chains with sales of $8.78B exceeding those of Burger King for the first
time in the company’s history.
Kino James
BASE 5
RETAIL PARTNERS
COUNT ON US
David Chavez
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
3
FINANCIAL OVERVIEW
Location
1176 N Yarbrough Dr,
El Paso, TX 79925
FINANCIAL OVERVIEW
SUMMARY
Sale Price
CAP Rate
Building SF
Land Area
Rent Increases
Tenant
Guaranty
Term
Lease Type
$3,280,000
5.0%
2,378 SF
8,800 SF
7.50% Every 5 Years
JAA Restaurants Holdings LLC
JAE Restaurants Holdings LLC
20 Years
Absolute NNN
Primary Term *Year 1 based on 8.5% rent to sales
Years
Annual Rent
Monthly Rent
Years 1 - 5
$164,000.00
$13,666.67
Years 6 - 10
$176,300.00
$14,691.67
Years 11 - 15
$187,522.50
$15,793.54
Years 16 - 20
$203,736.69
$16,978.06
Option Terms
First Option
Second Option
Third Option
Fourth Option
$219,016.94
$235,443.21
$253,101.45
$272,084.06
Kino James
BASE 5
RETAIL PARTNERS
COUNT ON US
David Chavez
$18,251.41
$19,620.27
$21,091.79
$22,673.67
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
4
TENANT INFORMATION
Founders of JAA Restaurant Holdings: Jhonny Mercado, Andres Garcia, Angelo Freites, Ben Mansoor
Wendy’s
•135 Locations in
Florida,
New Mexico &
El Paso, TX
•56 locations in
Venezuela
•18 locations in
Mexico
•8 locations in
Panama
Corner Bakery
•5 Corner Bakery’s in Florida (with
growth plan for 15)
Pizza Hut
•10 Pizza Huts in
Venezuela
T.G.I. Friday’s
•11 T.G.I. Friday’s in
Venezuela (in
pipeline)
Suki Hana
•9 Suki Hana’s
locations in
Venezuela
Miga’s
•11 Miga’s Bakery
Cafe and Deli in
Venezuela
Local management team
COO with 25 years of corporate experience
Operations Manager with 25+ years experience
Kino James
BASE 5
RETAIL PARTNERS
COUNT ON US
David Chavez
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
5
EL PASO MAP
Kino James
BASE 5
RETAIL PARTNERS
COUNT ON US
David Chavez
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
6
TRADE AREA MAP
Demos
3-Mi
Trade Area
Population:136,858193,044
Day Time Pop:61,087 69,886
Avg HH Income: $49,979
$53,273
Kino James
BASE 5
RETAIL PARTNERS
COUNT ON US
David Chavez
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
7
COMPETITORS MAP
Kino James
BASE 5
RETAIL PARTNERS
COUNT ON US
David Chavez
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
8
MAJOR RETAILERS MAP
Kino James
BASE 5
RETAIL PARTNERS
COUNT ON US
David Chavez
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
9
AERIAL
Kino James
BASE 5
RETAIL PARTNERS
COUNT ON US
David Chavez
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
10
SURVEY
Kino James
BASE 5
RETAIL PARTNERS
COUNT ON US
David Chavez
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
11
EL PASO MARKET OVERVIEW
The city of El Paso is nestled between the rugged Franklin Mountains and the historic Rio
Grande. This border community combines the advantages of a major metropolitan center
with the neighborly charm of a modern western town.
The Metro Statistical Area includes the cities of El Paso, Sunland Park, Soccorro, Horizon,
and the Ft. Bliss Army Post, with an estimated population base of 845,625, an average
household income level of $56,133. El Paso is connected by Interstate 25 to Albuquerque,
NM (270 miles and San Antonio, TX (548 miles).
El Paso ‘s location presents a unique array of opportunities. El Paso and its sister city, Ciudad
Juarez, (located in the Mexican state of Chihuahua) comprise the largest metropolitan area
on the border between the United States and Mexico; in fact, the downtown areas of these
two cities are within walking distance of each other. El Paso ‘s proximity to Mexico furnishes
an excellent opportunity for businesses to capitalize on NAFTA, the maquiladora industry,
and other prospects in Central and South America, especially when used in conjunction
with El Paso ‘s Foreign Trade Zone (FTZ) #68. Encompassing over 2,500 acres in 17 noncontiguous sites, FTZ #68 is the lowest cost and second highest volume general purpose
FTZ in the United States.
El Paso is also known for it’s low crime rate and an extremely favorable cost of living. The
National Crime Prevention Council has consistantly ranked the city of El Paso among the
top three safest cities since 1997. El Paso is regularly ranked as one of “Six Safer Cities”
across the nation for cities with a population of over 500,000 in the US .
El Paso provides state-of-the-art educational and medical facilities, abundant cultural and
year-round sports and outdoor recreation.
There are tree main school districts; El Paso Independent School District, Ysleta Independent
School District and Socorro Independent School District. Combined, these districts provide
the city with 22 high schools, 33 middle/junior high schools, 101 elementary schools, 8
specialty schools, 3 adult learning centers, an international language school, an academy
of science and technology, an entrepreneur center, an early childhood center, and two
alternative schools.
El Paso and Juarez are the centers for several institutions of higher learning and have a
reputation for promoting diversity within academics. The most prominent area institutions
are:
The University of Texas at El Paso
New Mexico State University
El Paso Community College
The University of Phoenix
In addition to UTEP, NMSU, and EPCC, the El Paso region also offers various other high
quality alternatives in higher education including Howard Payne University, the University
of Phoenix, Webster University and the Texas Tech University Health Sciences Center at El
Paso.
Kino James
BASE 5
RETAIL PARTNERS
COUNT ON US
David Chavez
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
12
SITE OVERVIEW
Subject Site
The subject site is located at 1176 N Yarbrough Dr in the city of El Paso, TX. The area
encompasses I-54 on the west, 375 Loop on the east, Montana on the north, and
the TX/MX border to the south. The trade area is comprised of 193,044 population
and a daytime employment of 69,886. There are currently 5 Wendy’s locations
open in this trade area, with one new site under construction.
The subject site is strategically positioned at the northeast intersection of
I-10 (190,000 CPD) and N. Yarbrough Dr (31,000 CPD) which is a major north/
south traffic corridor. Other retailers at the intersection include Walmart
Supercenter, Burlington, Ross, Los Altos Ranch Market, Jo-Ann Fabrics,
McDonalds, Burger King, LJS, Corner Bakery, Dunkin Doughnuts, Buffalo
Wild Wings, among others. Additionally, the site is directly adjacent to
several hotels, Las Palmas Del Sol Regional Hospital, Bel Air High School
(2,200 enrollment) and very dense neighborhoods.
N Yarbrough has a long track record of proven sales volume at this
location (build in 1976), and Tenant will complete the IA remodel on
this store after close of escrow.
Kino James
BASE 5
RETAIL PARTNERS
COUNT ON US
David Chavez
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
13
Lat/Lon: 31.7549/-106.3429
RS1
1 mi radius
POPULATION
El Paso, TX 79925
13,733
61,900
136,858
2020 Projected Population
14,498
65,438
144,666
2010 Census Population
13,835
63,036
139,673
2000 Census Population
14,724
65,559
145,671
Projected Annual Growth 2015 to 2020
1.1%
1.1%
1.1%
Historical Annual Growth 2000 to 2015
-0.4%
-0.4%
-0.4%
38.3
36.3
36.4
2015 Estimated Households
4,983
22,969
49,500
2020 Projected Households
5,419
25,022
53,935
2010 Census Households
4,836
22,599
48,789
2000 Census Households
4,799
21,945
47,114
Projected Annual Growth 2015 to 2020
1.8%
1.8%
1.8%
Historical Annual Growth 2000 to 2015
0.3%
0.3%
0.3%
82.9%
81.6%
82.0%
2015 Estimated Black or African American
4.0%
3.8%
3.4%
2015 Estimated Asian or Pacific Islander
0.8%
1.0%
1.0%
2015 Estimated American Indian or Native Alaskan
0.5%
0.7%
0.7%
2015 Estimated Other Races
11.9%
12.9%
13.0%
2015 Estimated Hispanic
83.4%
83.3%
84.5%
2015 Estimated Average Household Income
$51,482
$49,428
$49,979
2015 Estimated Median Household Income
$37,181
$39,750
$41,340
2015 Estimated Per Capita Income
$18,781
$18,383
$18,113
2015 Estimated Elementary (Grade Level 0 to 8)
15.0%
15.2%
14.4%
2015 Estimated Some High School (Grade Level 9 to 11)
11.8%
10.3%
9.1%
2015 Estimated High School Graduate
24.3%
25.1%
26.9%
2015 Estimated Some College
23.2%
23.3%
23.9%
2015 Estimated Associates Degree Only
5.6%
6.7%
6.6%
2015 Estimated Bachelors Degree Only
14.0%
13.4%
13.5%
2015 Estimated Graduate Degree
6.1%
6.1%
5.8%
2015 Estimated Total Businesses
869
2,802
5,406
2015 Estimated Total Employees
11,751
32,407
61,087
2015 Estimated Employee Population per Business
13.5
11.6
11.3
2015 Estimated Residential Population per Business
15.8
22.1
25.3
HOUSEHOLDS
INCOME
RACE AND
ETHNICITY
2015 Estimated White
EDUCATION
(AGE 25+)
3 mi radius
2015 Estimated Population
2015 Median Age
BUSINESS
2 mi radius
6, Sites USA, Chandler, Arizona, 480-491-1112
page 1 of 1
Kino James
BASE 5
RETAIL PARTNERS
COUNT ON US
David Chavez
This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty.
1176 N Yarbrough Dr
Demographic Source: Applied Geographic Solutions 11/2015, TIGER Geo
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
14
Brand Transformation
“Wendy’s brand transformation
is re-energizing all of our touch
points with consumers. From bold
restaurant design to innovative food
that consumers’ want, to improved
customer service, this exciting
evolution of our brand reinforces
our mission to position Wendy’s
as A Cut Above.” - Emil Brolick, The
Wendy’s Company President & CEO
All elements of Wendy’s brand
transformation are coming
together in a powerful way
in our sleek, contemporary
Image Activation restaurants.
Not only do these
restaurants
deliver
a
striking
street
appearance, they are
designed to greatly enhance the
customer experience. Prominent
features include fireplaces; a variety
of inviting seating options,
including lounge chairs and
booths; Wi-Fi and flat-screen
TVs; digital menuboards and
more.
Coupled with friendly,
courteous
service,
we’re working to create a
welcoming ambiance that truly
stands out.
Kino James
BASE 5
RETAIL PARTNERS
COUNT ON US
David Chavez
Wendy’s Company
(NASDAQ: WEN)
6,545 restaurants worldwide (#3
for hamburger chains)
$8.78B sales in 2013 (#2 for
hamburger chains)
$2.5B revenue in 2013
#505.807.0605
BASE5RETAIL.COM
115 GOLD AVE SW SUITE 203G
ALBUQUERQUE, NM 87102
15