CYCLE GEAR - 11 YR RENEWAL - 1040 SOUTH COUNTRY CLUB DRIVE, MESA, ARIZONA - OFFERING MEMORANDUM
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CYCLE GEAR - 11 YR RENEWAL
1040 SOUTH COUNTRY CLUB DRIVE, MESA, ARIZONA
OFFERING MEMORANDUM
MESA RIVERVIEW
51,585 STUDENTS
202
VILLAGE SQUARE
AT DANA PARK
TEMPE MARKETPLACE
20,400 STUDENTS
60
101
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. © 2021 Marcus Millichap.
MARCUS & MILLICHAP 2 // Cycle Gear
Executive Summary
1040 South Country Club Drive, Mesa, AZ 85210
APN: 134-17-022K
FINANCIAL SUMMARY ANNUALIZED OPERATING DATA
Price $2,210,000 Lease Years Annual Rent Cap Rate
Cap Rate 6.0% 3/1/2022 - 2/28/2027 $132,611.16 6.00%
Building Size 9,280 SF 3/1/2027 - 2/28/2032 $139,200.00 6.30%
Net Cash Flow $132,611 (1)
Year Built 1978 Base Rent $132,611
Lot Size .79 Acres Net Operating Income $132,611
LEASE SUMMARY
Total Return 6.0% $132,611
Lease Type Triple-Net (NNN) Lease
Tenant Cycle Gear, Inc.
Guarantor Cycle Gear, Inc., a California Corporation
Lease Commencement Date March 30, 2000
Lease Expiration Date February 28, 2032
Lease Term Remaining 11 Years
Rental Increases See Rent Chart
Renewal Options None Remaining
(1) Rent from March 1, 2021 through February 28, 2022 is $135,209.60.
MARCUS & MILLICHAP 3 // Cycle Gear
248,840 CPD
US-60 FWY
60
MCDONALD’S
40,500 CPD
S COUNTRY CLUB DR
W EMERALD AVE
MARCUS & MILLICHAP 4 // Cycle Gear
20,400 STUDENTS
248,840 CPD
US-60 FWY
60
40,500 CPD
S COUNTRY CLUB DR
W EMERALD AVE
MARCUS & MILLICHAP 5 // Cycle Gear
Property Description DEMOGRAPHICS 1-mile 3-miles 5-miles
Population
2025 Projection 25,238 171,779 416,472
2020 Estimate 24,207 168,257 408,453
Growth 2020 - 2025 4.26% 2.09% 1.96%
Households
2025 Projection 8,932 64,501 162,003
2020 Estimate 8,530 62,779 157,465
Growth 2020 - 2025 4.72% 2.74% 2.88%
Income
INVESTMENT HIGHLIGHTS 2020 Est. Average
$46,736 $61,682 $73,089
Household Income
» Triple-Net (NNN) Corporate Lease with 11 Years Remaining on Lease Term
2020 Est. Median
$36,648 $46,149 $55,237
» Long Term Occupancy - Tenant has been at Site for 21 Years Household Income
» 408,453 Residents in Growing Mesa Trade Area - Phoenix MSA 2020 Est. Per
$16,901 $23,181 $28,298
Capita Income
» Households and Population Projected to Increase 4%+ in Immediate Area by 2025
» Situated in Country Club Plaza, Anchored by Goodwill, Bookmans Entertainment
Exchange, and 99 Cents Only Store
» Nearby Retailers Include Harley-Davidson, McDonald’s, Denny’s, Taco Bell, Starbucks,
Arby’s, and More
» Easily Accessible via South Country Club Drive (40,500 Cars/Day)
» Strong Daytime Population - 399,650+ Employees in Surrounding Area
» Minutes from Mesa Community College (20,400 Students) and Arizona State
University (51,585+ Students)
» Less Than 1 Mile Off the US-60 Freeway
MARCUS & MILLICHAP 6 // Cycle Gear
Tenant Overview
Cycle Gear Benicia, California 1974 148 www.cyclegear .com
Company Headquarters Founded Locations Website
Cycle Gear is the largest and fastest-growing retailer of motorcycle parts, gear, support and donates to many local and national motorcycle charities. Cycle Gear
and apparel in America. The first store opened in Northern California in 1974 also participates in thousands of various motorcycle events and races every year
and has since grown to over 140 stores in 37 U.S. states. Brands offered at Cycle and hosts over 1,000 bike nights annually at stores across the country.
Gear include Bilt, Rev’It, Sedici, Street & Steel, Fox, O’Neal, and more. Cycle Gear is part of the Comoto Family of Brands, which also includes RevZilla
In addition to being an industry leading retailer, Cycle Gear is also on the forefront and J&P Cycles. Comoto is America’s largest and fastest growing omni-channel
of developing the sport of motorcycling. The company offers grassroots racer platform in the powersports aftermarket-products industry.
MARCUS & MILLICHAP 7 // Cycle Gear
Location Overview 3 Miles
to Mesa Community
College
6 Miles
to Arizona State
University
12 Miles
to Phoenix Sky Harbor
International Airport
17 Miles
to Downtown Phoenix
Mesa is the third largest city in Arizona, after Phoenix and Tucson, and the than 30 incorporated and more than 30 unincorporated towns and cities. Since
38th largest city in the U.S. It is home to numerous higher education facilities, 2000, the population in the metro increased by more than 38 percent. The
including the Polytechnic campus of Arizona State University. The city’s top largest city is Phoenix, which encompasses about 520 square miles, is the capital
employers include Banner Health, Boeing, Walmart, Fry’s Food & Drug, and The city and boasts a population of more than 1.5 million.
Home Depot. As one of the primary beneficiaries of the massive shift in the U.S. population
With dynamic recreational, educational and business opportunities, Mesa enjoys from north to south, the Phoenix metro has had little difficulty finding workers;
the best in a variety of amenities including parks within easy walking distance the challenge, though, is attracting high-paying jobs. Phoenix claims five Fortune
from home, a variety of sports facilities that cater to athletes young and old, highly 500 headquarters, including Freeport-McMoRan, Republic Services, Insight
rated golf courses for every skill level, a diversity of special events and community Enterprises, Avnet and PetSmart. Construction, high-tech manufacturing,
festivals, and Mesa’s ever-popular Chicago Clubs and Oakland A’s Spring Training healthcare and tourism dominate the Phoenix economy. The local economy has
baseball. strengthened since the recession, with retail sales projected above 8 percent this
The Phoenix metro consists of Maricopa and Pinal counties, and includes more year and hotel occupancy levels rising.
MARCUS & MILLICHAP 8 // Cycle Gear[ 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
