KWIKSHOP & TACO JOHN'S DRIVE-THRU GROUND LEASE - 656 SOUTH WEST STREET, WICHITA, KANSAS
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KWIKSHOP & TACO JOHN’S DRIVE-THRU
GROUND LEASE
656 SOUTH WEST STREET, WICHITA, KANSAS
OFFERING MEMORANDUM
15,000 STUDENTS
MCDONALD'S
MCDONALD'S
burger king
235
DOWNTOWN
WICHITA
400
135
1.5+MIL PASSENGERS 2,700+ STUDENTS
N
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 // KwikShop & Taco John’s Ground Lease
Executive Summary
656 South West Street, Wichita, KS 67213
FINANCIAL SUMMARY ANNUALIZED OPERATING DATA
Price $2,667,000 Lease Years Annual Rent Cap Rate
Cap Rate 4.50% 8/26/2019 – 8/1/2034 $120,000 4.50%
Building SF 5,200 SF Lease Years Annual Rent Cap Rate
Net Cash Flow 4.50% $120,000 8/2/2034 – 8/1/2039 $126,000 4.72%
8/2/2039 – 8/1/2044 $132,300 4.96%
Year Built 2019
8/2/2044 – 8/1/2049 $138,900 5.21%
Lot Size 1.39 Acres 8/2/2049 – 8/1/2054 $145,845 5.47%
LEASE SUMMARY 8/2/2054 – 8/1/2059 $153,137 5.74%
Lease Type Absolute Triple-Net (NNN) Ground Lease 8/2/2059 – 8/1/2064 $160,794 6.03%
8/2/2064 – 8/1/2069 $168,834 6.33%
Tenant Kwik Shop, Inc.
8/2/2069 – 8/1/2074 $177,276 6.65%
Guarantor (1) EG Retail (America), LLC 8/2/2074 – 8/1/2079 $186,140 6.98%
Lease Term 15 Years 8/2/2079 – 8/1/2084 $195,447 7.33%
Lease Commencement Date August 26, 2019 8/2/2084 – 8/1/2089 $205,219 7.69%
8/2/2089 – 8/1/2094 $215,480 8.08%
Lease Expiration Date August 1, 2034
8/2/2094 – 8/1/2099 $226,254 8.48%
Rental Increases 5% Every 5 Years in Options Only 8/2/2099 – 8/1/2104 $237,567 8.91%
Renewal Options 15, 5 Year Options 8/2/2104 – 8/1/2109 $249,445 9.35%
Right of First Refusal 30 Days
Base Rent $120,000
Net Operating Income $120,000
FOOTNOTES:
(1) – Guarantor will be released from liability if the Lease is assigned to an assignee with a net worth of not less
than $10,000,000. Total Return 4.50% $120,000
MARCUS & MILLICHAP 3 // KwikShop & Taco John’s Ground Lease
MCDONALD'S
burger king
20,755 CPD
SOUTH WEST STREET
KELLOGG DRIVE
94,400 CPD
U.S. ROUTE 400
N
MARCUS & MILLICHAP 4 // KwikShop & Taco John’s Ground Lease
WESTGATE MARKET SQUARE
SHOPPING MALL
46,200 CPD
INTERSTATE 235 KANSAS SHOPPING
MALL
20,755 CPD
SOUTH WEST STREET
94,400 CPD
U.S. ROUTE 400
KELLOGG DRIVE
N
MARCUS & MILLICHAP 5 // KwikShop & Taco John’s Ground Lease
DOWNTOWN
WICHITA
2,700+ STUDENTS
94,400 CPD
U.S. ROUTE 400
KELLOGG DRIVE
20,755 CPD
SOUTH WEST STREET
N
MARCUS & MILLICHAP 6 // KwikShop & Taco John’s Ground Lease
Property Description DEMOGRAPHICS 3-miles 5-miles 10-miles
Population
2025 Projection 72,579 196,290 438,655
2020 Estimate 72,088 194,528 429,294
Growth 2020 – 2025 0.68% 0.91% 2.18%
Households
2025 Projection 31,862 80,904 174,542
2020 Estimate 31,382 79,501 169,823
Growth 2020 – 2025 0.15% 1.76% 2.78%
Income
2020 Est. Average
$53,197 $59,781 $70,480
INVESTMENT HIGHLIGHTS Household Income
2020 Est. Median
» 15 Year Ground Lease with Franchisee Guarantee & 15, 5-Year Renewal Options Household Income
$41,231 $45,291 $52,673
» Rare C-Store Drive-Thru Taco John’s & Cinnabon 2020 Est. Per
$23,517 $24,712 $28,101
Capita Income
» 194,500+ Residents within a 5-Mile Radius - Growing Wichita Trade Area
» Minutes from Downtown Wichita and Dwight D. Eisenhower International Airport
» Excellent Visibility at Signalized Hard-Corner Location along Kellogg Drive/ US Route
400 (94,400 Cars/Day) and South West Street (20,755 Cars/Day)
» Situated in Dense Retail Corridor beside Westgate Market Square Shopping Center &
Towne Square West Shopping Mall
» Immediate Proximity to US Route 400 and I-235 Freeway, Major Connectors for the
Wichita Area and Interstate Traffic
» Average Household Income Exceeds $59,000 within 5 Miles of Subject Property
MARCUS & MILLICHAP 7 // KwikShop & Taco John’s Ground Lease
Tenant Overview
Hutchinson, Kansas Public 127 1959 www.kwikshop.com
Headquarters Company Type Locations Founded Website
Founded in 1959 by Dick Dillon, with The Founding Family of Dillon Stores, convenience. In addition, many Kwik Shop locations offer pay-at-the-pump
Kwik Shop convenience stores combined the time-saving personalized service of gasoline to service customers on the go.
small retail locations with supermarket-level efficiency in management, inventory EG America, owners of Kwik Shop since 2018, is one of the fastest growing
control, and merchandising. Expanding to 127 convenience stores chains as of convenience store retailers in the United States. With its new national headquarters
2020, Kwik Shop stores were purchased by the EG Group in 2018. situated in Westborough, MA since 2019, the company has continued to grow,
Kwik Shop stores offer services such as ATMs, lottery tickets, and pre-paid seeing 1,600+ stores with locations across the United States. The convenience
calling cards, cold beverages, coffee, snack items, and general foods. All stores store chains owned by EG America include Cumberland Farms, Turkey Hill, Kwik
are open late, with many locations remaining open 24-hours a day for consumer Shop, Loaf ‘N Jug, Tom Thumb, Quik Stop, Minit Mart, Fastrac, and Certified Oil.
MARCUS & MILLICHAP 8 // KwikShop & Taco John’s Ground Lease
Tenant Overviews
Cheyenne, Wyoming 1969 400 www.tacojohns.com
Headquarters Founded Locations Website
The originators of “Taco Tuesday,” Taco John’s has always taken tacos Taco John’s famous. Taco John’s menu continues to evolve to include
seriously from day one. Offering one-of-a-kind tacos and bold flavors, Taco bold originals like Potato Olés, Meat and Potato Burritos, and their holiday
John’s is the destination for handmade salsas, classic Crispy Tacos with specialty: Nachos Navidad.
freshly-made shells, and signature Potato Olés. As of 2021, Taco John’s operates and franchises nearly 400 restaurants in
From the first taco stand location in Cheyenne, WY, Taco John’s restaurants 23 states – making it one of the largest Mexican quick-service restaurant
spread all across the Midwest, improving along the way to include drive- brands in America. Not only is the brand commited to flavor, but also a high
thrus and interior seating to bring customers the unique flavors that made standard of consistency in quality, boldness, and real ingredients.
Atlanta, Georgia 1985 1,200+ www.cinnabon.com
Headquarters Founded Locations Website
Spreading from a single bakery in the SeaTac Mall in Seattle, Washington, store aisles. With signature ingredients like Makara Cinnamon, fresh-baked
and one perfect cinnamon roll recipe, Cinnabon now has over 1,200 dough, and gooey cream cheese frosting, Cinnabon’s rolls and confections
locations across the United States and in over 50 countries worldwide. also go hand-in-hand with Cinnabon’s special coffee selection.
As one of the world’s most-recognized brands, Cinnabon provides original With a global reach, Cinnabon proudly supports philanthropic organizations
cinnamon rolls and decadent baked treats to customers in every destination such as Operation Gratitude and The DAISY Foundation – upholding the
as they shop, travel, dine, and play. values of warmth, community, and service to make a difference for those
Shoppers can even find Cinnabon cinnamon rolls in their local grocery who give selfless effort on behalf of others.
MARCUS & MILLICHAP 9 // KwikShop & Taco John’s Ground Lease
MARCUS & MILLICHAP 10 // KwikShop & Taco John’s Ground Lease
Location Overview 0.5 Miles
to Newman University
2.5 Miles
to Wichita Dwight
D. Eisenhower
International Airport
4 Miles
to Downtown Wichita
8 Miles
to Wichita State
University
Wichita is the largest city in the State of Kansas and the 49th-largest city in the Air Force Base was activated in 1951 and has remained an important factor in
United States. Located in south-central Kansas on the Arkansas River, Wichita the community. Additionally, Airbus maintains a workforce in Wichita. The city has
is the county seat of Sedgwick County and the principal city of the Wichita long been known as a center of entrepreneurship. In addition to aircraft pioneers
metropolitan area. In 2018, the estimated population of the Wichita metropolitan Walter Beech, Clyde Cessna, and Bill Lear, Fred Koch founded Koch Industries
area was 644,888. Major highways, including the Kansas Turnpike, US 400 in Wichita, and Dan and Frank Carney founded Pizza Hut. Coleman, Freddy’s
and Interstate I-135, link the city with a large trade area that encompasses a Frozen Custard, and many other successful companies began in Wichita.
population of more than a million people within a 100-mile radius. The nearest Wichita has evolved into a cultural and entertainment center. The downtown
large cities are Denver to the west, Kansas City to the northeast, Oklahoma City to district offers restaurants, retail shops, museums and parks. INTRUST Bank
the south, and Tulsa to the southeast. Arena, located in downtown Wichita, features a total potential capacity of over
Since the growth of the aircraft industry during the inter-war years, Wichita has 15,000. Several universities are located in Wichita, the largest being Wichita State
been a leading producer of general aviation and commercial aircraft. McConnell University. Friends University and Newman University are also located in Wichita.
MARCUS & MILLICHAP 11 // KwikShop & Taco John’s Ground Lease[ exclusively listed by ]
Mark J. Ruble Chris N. Lind Colby Haugness
Executive Managing Director Senior Vice President Broker of Record
602 687 6766 602 687 6780 License #: 00241410
mruble@marcusmillichap.com chris.lind@marcusmillichap.com
Offices Nationwide
www.marcusmillichap.com
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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.
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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
