BURGER KING SPOKANE, WASHINGTON - 1723 N Division St Spokane, WA 99207 - LoopNet
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BURGER KING EXCLUSIVLY LISTED BY:
Clayton J. Brown
SPOKANE, WASHINGTON National Retail Group
206.826.5787
1723 N Division St Spokane, WA 99207 clayton.brown@marcusmillichap.com
THE OPPORTUNITY
Marcus & Millichap has been selected to exclusively market for sale
the Burger King located at 1723 N Division St Spokane, WA 99207.
The property consists of a 4,007-square foot building with drive-
thru on a 26,720-square foot lot. The current Lease is guaranteed
by R U Hungry, LLC, a successful Franchisee with 25+ locations
across the Western United States. The Property benefits from ex-
cellent demographics with over 222,000 people within a 5-mile
radius and daily traffic counts on N Division St of over 26,000 VPD.
PRICE: $1,030,000
CAP RATE: 7.50%
NET OPERATING INCOME $77,244
YEAR BUILT 1988
PRICE/SF $257
BUILDING SIZE 4,007 SF
PARCEL SIZE 26,720 SF
PARCEL 35074.7001
COUNTY SPOKANE
This information has been secured from sources we believe to be reliable, but we make no repre-
sentations 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 Invest- Burger King | 2
ment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0110092
INVESTMENT HIGHLIGHTS
1723 N DIVISION ST SPOKANE, WA 99207
FREESTANDING BUILDING WITH DRIVE-THRU
STRONG STORE SALES - 6.5% RENT/SALES RATIO
31+ YEAR OPERATING HISTORY AT THIS LOCATION
ABSOLUTE NNN LEASE (ZERO LANDLORD MANAGEMENT RESPONSIBILITIES)
STRONG GUARANTEE – EXPERIENCED 25+ LOCATION FRANCHISEE
HIGH-VISIBILITY, HARD CORNER LOCATION WITH DAILY TRAFFIC COUNTS OF
26,000+ VPD
STRONG DEMOGRAPHICS – 222,000+ RESIDENTS WITHIN A 5-MILE RADIUS
INCOME TAX FREE STATE
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.
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
Burger King | 3 of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0110092
LEASE SUMMARY
LEASE GUARANTOR R U HUNGRY, LLC
LEASE COMMENCEMENT 7/29/1986
LEASE EXPIRATION 7/29/2021
LEASE TERM REMAINING 3.5 YEARS
ANNUAL RENT $72,000
PERCENTAGE RENT 6.5% GROSS SALES
ANNUAL RENT PER SF $17.97 / SF
RENT INCREASES PERCENTAGE RENT
RENEWAL OPTIONS ONE, 5-YEAR OPTION
REAL ESTATE TAXES PAID DIRECT BY TENANT
INSURANCE PAID DIRECT BY TENANT
REPAIRS / MAINTENANCE PAID DIRECT BY TENANT
LANDLORD RESPONSIBILITIES NONE
TERMINATION NONE
ROFR YES
Burger King | 4
N Ruby St
25,000 VPD
RETAIL MAP
Subject
Property
North Central
High School
Heath Park
W Mission Ave
14,000 VPD
Department of Social
and Health Services
N Division St.
26,000 VPD
Gonzaga
University
Washington State
University Spokane
Burger King | 5
TENANT MAP
Downtown
Spokane
North Central
High School
Subject
Property
e
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o d
e Sp Cre
r r’s
tu
Fu ache nion
. Te U
N Ave
25 Ru r a
,0 b No ND
00 y S W
VP t. 26 ivisio
,00 n
D 0 V St.
PD
Burger King | 6
SPOKANE AREA DESCRIPTION LOCATION OVERVIEW
Spokane, WA: Spokane is located in the heart of the Inland Northwest and is the second most
populous city in Washington. The Spokane River runs through the city and beautiful Riverfront
Park in downtown Spokane. An array of enjoyable outdoor activities are right out our back door;
including ski resorts, white-water rafting, camping areas, hiking trails, lakes, and the Centennial
trail. Spokane has been selected as an All-America City three times in the past 41 years, includ-
ing in 2015 when it was one of 10 honored throughout the country. The city hosts many great
community events, festivals and gatherings, and is home to the Lilac Bloomsday Run, the largest
timed road race in the nation, and the largest three-on-three basketball tournament, Hoopfest.
Economy Natural resources have historically been the foundation of Spokane’s economy, with 1723 N Division St
the mining, logging, and agriculture industries providing much of the region’s economic activity. Spokane, WA 99207
After mining declined at the turn of the 20th century, agriculture and logging replaced mining
as the primary influences in the economy. Lumberjacks and millmen working in the hundreds of
mills along the railroads, rivers, and lakes of northern Washington and Idaho were provisioning
themselves in Spokane. Agriculture has always been an important sector in the local economy;
the surrounding area, especially to the south, is the Palouse, a productive agricultural region
that supports many vineyards and microbreweries as well.
By the early 20th century, Spokane was primarily a commercial center rather than an industrial
center. In Spokane, wood and food processing, printing and publishing, primary metal refining
and fabrication, electricaland computer equipment, and transportation equipment are leaders in
the manufacturing sector. Gold mining company Gold Reserve, and Fortune 1000 company Pot-
latchCorporation – a forest products company that operates as a real estate investment trust –
are headquartered in the city proper. Mining, forestry, and agribusiness remain important to
the local and regional economy, but Spokane’s economy has diversified to include other
industries, including the high-tech and biotech sectors. Spokane is becoming a more
service-oriented economy in the face of a less prominent manufacturing sector, particularly
as a medical and biotechnology center; Fortune 1000 technology company Itron, for instance,
is headquartered in the area. Avista Corporation, the holding company of Avista Utilities,
is the only company in Spokane that has been listed in the Fortune 500, ranked 299 on
the list in 2002. Other companies with head offices in the Spokane area include technology
company Key Tronic, hotelier Red Lion Hotels Corporation, and microcar maker Commuter
Cars.
As of 2014, economic development in the Spokane area primarily focuses on promoting 1723 N Division St
the following industries: manufacturing (especially aerospace manufacturing), health
Spokane, WA 99207
sciences, professional services, information science and technology, finance and
insurance as well as clean technology, and digital media The Spokane metropolitan
area consists of Spokane, Stevens, and Pend Oreille counties. Directly east of Spokane
County is the Coeur d’Alene Metropolitan Statistical Area, which consists of Kootenai
County, Idaho, anchored by the city of Coeur d’Alene. The urban areas of the two MSAs
largely follow the path of Interstate 90 between Spokane and Coeur d’Alene. The
Spokane area has suffered from suburbanization and urban sprawl in past decades,
despite Washington’s use of urban growth boundaries; the city ranks low among major
Northwest cities in population density and smart growth.The Spokane and Coeur
d’Alene Metropolitan Statistical Areas (MSA) are now included in a single Combined
Statistical Area (CSA) by the Office of Management and Budget.
Burger King | 7
TENANT OVERVIEW
Every day, more than 11 million guests visit
Burger King restaurants around the world.
And they do so because Burger King is known
for serving high-quality, great-tasting, and
affordable food. Founded in 1954, the Burger
King brand is the second largest fast food
hamburger chain in the world. The original Home
of the Whopper, the commitment to premium
ingredients, signature recipes, and family-friendly
dining experiences is what has defined the brand for
more than 50 successful years.
Burger King’s menu has expanded from a basic
offering of burgers, french fries, sodas, and milkshakes
to a larger and more diverse set of products. In 1957, the
“Whopper” became the first major addition to the menu,
and it has become Burger King’s signature product since.
With over half of the nearly 15,000 stores located
internationally, Burger King has tailored their menu for
regional tastes.
In 2010, 3G Capital, a global multi-million dollar investment
firm focused on long term value creation, purchased Burger
King Corporation, making it a privately-held company. 3G
Capital’s strategy is to identify and invest in opportunities that
are well-positioned for profitable, long term growth and success
across a variety of different sectors and regions. The firm’s
management team leverages prior investment experience, industry
expertise and an extensive global network to successfully
implement this strategy.
• Z
Burger King | 8
SITE PLAN
Nora Avenue
Division Street
Burger King | 9TOP EMPLOYERS
HIGHLIGHTS AND DEMOGRAPHICS
TOP EMPLOYERS
COMPANY INDUSTRY EMPLOYEES
Fairchild Air Force Base Military Base 5,935
Providence Health Care Health Services 5,688
State of Washington Consumer Services 2,087
Spokane County Consumer Services 2,087
Kalispel Tribal Economic Authority/ Consumer Services/Gaming 1,792
Northern Quest Resort & Casino
Central Valley School District Education 1,509
1 MILE
3 MILE 5 MILE
PROJECTION 2022 POPULATION 16,444 128,986 231,820
ESTIMATE 2017 POPULATION 15,902 124,105 222,176
2017-2022 HOUSEHOLDS GROWTH 3.64% 4.05% 4.44%
ESTIMATE 2017 HOUSEHOLDS 5,581 51,903 93,243
AVERAGE HOUSE SIZE 2.20 2.30 2.30
MEDIAN 2017 HOUSEHOLD INCOME $23,530 $36,286 $41,774
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, ex-
pressed 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. © 2017
Marcus & Millichap ACT ID Z0110092
Burger King | 10CONFIDENTIALITY AND DISCLAIMER
The information contained in the following Marketing Brochure is proprietary As the Buyer of a net leased property, it is the Buyer’s responsibility to
and strictly confidential. It is intended to be reviewed only by the party receiving independently confirm the accuracy and completeness of all material infor-
it from Marcus & Millichap and should not be made available to any other mation before completing any purchase. This Marketing Brochure is not a
person or entity without the written consent of Marcus & Millichap. This Marketing substitute for your thorough due diligence investigation of this investment
Brochure has been prepared to provide summary, unverified information opportunity. Marcus & Millichap expressly denies any obligation to conduct
to prospective purchasers, and to establish only a preliminary level of interest a due diligence examination of this Property for Buyer.
in the subject property. The information contained herein is not a substitute
for a thorough due diligence investigation. Marcus & Millichap has not made Any projections, opinions, assumptions or estimates used in this Marketing
any investigation, and makes no warranty or representation, with respect to Brochure are for example only and do not represent the current or future
the income or expenses for the subject property, the future projected financial performance of this property.
performance of the property, the size and square footage of the property and
improvements, the presence or absence of contaminating substances, PCB’s The value of a net leased property to you depends on factors that should
or asbestos, the compliance with State and Federal regulations, the physical beevaluated by you and your tax, financial and legal advisors. Buyer and
condition of the improvements thereon, or the financial condition or business Buyer’s tax, financial, legal, and construction advisors should conduct a
prospects of any tenant, or any tenant’s plans or intentions to continue its careful, independentinvestigation of any net leased property to determine
occupancy of the subject property. The information contained in this Marketing to your satisfaction with the suitability of the property for your needs.
Brochure has been obtained from sources we believe to be reliable; however,
Marcus & Millichap has not verified, and will not verify, any of the information Like all real estate investments, this investment carries significant risks.
contained herein, nor has Marcus & Millichap conducted any investigation Buyer and Buyer’s legal and financial advisors must request and carefully
regarding these matters and makes no warranty or representation whatsoever review alllegal and financial documents related to the property and tenant.
regarding the accuracy or completeness of the information provided. All potential While the tenant’s past performance at this or other locations is an import-
buyers must take appropriate measures to verify all of the information ant consideration, it is not a guarantee of future success.
set forth herein.
Similarly, the lease rate for some properties, including newly-constructed
NON-ENDORSEMENT NOTICE facilities or newly-acquired locations, may be set based on a tenant’s pro-
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any jectedsales with little or no record of actual performance, or comparable
commercial tenant or lessee identified in this marketing package. The presence rents for the area. Returns are not guaranteed; the tenant and any guaran-
of any corporation’s logo or name is not intended to indicate or imply affiliation tors may fail to pay the lease rent or property taxes, or may fail to comply
with, or sponsorship or endorsement by, said corporation of Marcus & with other material terms of the lease; cash flow may be interrupted in part
Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial or in whole due to market, economic, environmental or other conditions.
listing of Marcus & Millichap, and is solely included for the purpose of Regardless of tenant history and lease guarantees, Buyer is responsible for
providing tenant lessee information about this listing to prospective customers. conducting his/her own investigation of all matters affecting the intrinsic
value of the property and thevalue of any long-term lease, including the
NET-LEASED DISCLAIMER likelihood of locating a replacement tenant if the current tenant should
Marcus & Millichap hereby advises all prospective purchasers of Net Leased default or abandon the property, and the lease terms that Buyer may be
property as follows: able to negotiate with a potential replacement tenant considering the
location of the property, and Buyer’s legal ability to make alternate use of
The information contained in this Marketing Brochure has been obtained from the property.
sources we believe to be reliable. However, Marcus & Millichap has not and will
not verify any of this information, nor has Marcus & Millichap conducted any By accepting this Marketing Brochure you agree to release Marcus & Milli-
investigation regarding these matters. Marcus & Millichap makes no guarantee, chap Real Estate Investment Services and hold it harmless from any kind
warranty or representation whatsoever about the accuracy or completeness of of claim, cost, expense, or liability arising out of your investigation and/or
any information provided. purchase of this net leased property.
Burger King | 11E X C L U S I V E LY L I S T E D B Y O F F I C E S N AT I O N W I D E
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