OFFERING MEMORANDUM - NNN Properties
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Representative Photo
BURGER KING
EXCLUSIVE NET-LEASE OFFERING
OFFERING
MEMORANDUM 11204 B Street S
Parkland, WA 98444
Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of guarantors may fail to pay the lease rent or property taxes, or may has not verified, and will not verify, any of the information
Net Leased property as follows: fail to comply with other material terms of the lease; cash flow contained herein, nor has Marcus & Millichap conducted any
may be interrupted in part or in whole due to market, economic, investigation regarding these matters and makes no warranty or
The information contained in this Marketing Brochure has been environmental or other conditions. Regardless of tenant history representation whatsoever regarding the accuracy or
obtained from sources we believe to be reliable. However, Marcus and lease guarantees, Buyer is responsible for conducting his/her completeness of the information provided. All potential buyers
& Millichap has not and will not verify any of this information, nor own investigation of all matters affecting the intrinsic value of the must take appropriate measures to verify all of the information
has Marcus & Millichap conducted any investigation regarding property and the value of any long-term lease, including the set forth herein.
these matters. Marcus & Millichap makes no guarantee, warranty likelihood of locating a replacement tenant if the current tenant
or representation whatsoever about the accuracy or completeness should default or abandon the property, and the lease terms that NON-ENDORSEMENT NOTICE
of any information provided. Buyer may be able to negotiate with a potential replacement
tenant considering the location of the property, and Buyer’s legal Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”)
As the Buyer of a net leased property, it is the Buyer’s ability to make alternate use of the property. is not affiliated with, sponsored by, or endorsed by any
responsibility to independently confirm the accuracy and By accepting this Marketing Brochure you agree to release Marcus commercial tenant or lessee identified in this marketing package.
completeness of all material information before completing any & Millichap Real Estate Investment Services and hold it harmless The presence of any corporation’s logo or name is not intended to
purchase. This Marketing Brochure is not a substitute for your from any kind of claim, cost, expense, or liability arising out of indicate or imply affiliation with, or sponsorship or endorsement
thorough due diligence investigation of this investment your investigation and/or purchase of this net leased property. by, said corporation of M&M, its affiliates or subsidiaries, or any
opportunity. Marcus & Millichap expressly denies any obligation agent, product, service, or commercial listing of M&M, and is
to conduct a due diligence examination of this Property for Buyer. CONFIDENTIALITY AND DISCLAIMER solely included for the purpose of providing tenant lessee
information about this listing to prospective customers.
Any projections, opinions, assumptions or estimates used in this The information contained in the following Marketing Brochure is
Marketing Brochure are for example only and do not represent proprietary and strictly confidential. It is intended to be reviewed ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE
the current or future performance of this property. The value of a only by the party receiving it from Marcus & Millichap and should CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE
net leased property to you depends on factors that should be not be made available to any other person or entity without the DETAILS.
evaluated by you and your tax, financial and legal advisors. written consent of Marcus & Millichap. This Marketing Brochure
has been prepared to provide summary, unverified information to
Buyer and Buyer’s tax, financial, legal, and construction advisors prospective purchasers, and to establish only a preliminary level
should conduct a careful, independent investigation of any net of interest in the subject property. The information contained
leased property to determine to your satisfaction with the herein is not a substitute for a thorough due diligence
suitability of the property for your needs. investigation. Marcus & Millichap has not made any investigation,
and makes no warranty or representation, with respect to the
Like all real estate investments, this investment carries significant income or expenses for the subject property, the future projected
risks. Buyer and Buyer’s legal and financial advisors must request financial performance of the property, the size and square footage
and carefully review all legal and financial documents related to of the property and improvements, the presence or absence of
the property and tenant. While the tenant’s past performance at contaminating substances, PCB’s or asbestos, the compliance with
this or other locations is an important consideration, it is not a State and Federal regulations, the physical condition of the
guarantee of future success. Similarly, the lease rate for some improvements thereon, or the financial condition or business
properties, including newly-constructed facilities or newly- prospects of any tenant, or any tenant’s plans or intentions to
acquired locations, may be set based on a tenant’s projected sales continue its occupancy of the subject property. The information 11204 B Street S
with little or no record of actual performance, or comparable contained in this Marketing Brochure has been obtained from
rents for the area. Returns are not guaranteed; the tenant and any sources we believe to be reliable; however, Marcus & Millichap Parkland, WA 98444
Table of Contents
Investment Highlights 4
Financial Analysis 5
Concept Overview 6
Surrounding Area 7
Location Overview 8
Local Map 9
Regional Map 10
Demographics 11
Market Overview 12
Representative Photo
Investment Highlights
PRICE: $2,735,838 | CAP: 5.00%| RENT: $136,792
Representative Photo
About the Investment
✓ Long-Term, 20-Year Absolute Triple Net (NNN) Lease Commencing Upon the
Close of Escrow
✓ Two Percent (2.00%) Rental Increases Annually Starting in Year 6
✓ Four (4), Five (5)-Year Tenant Renewal Options
About the Location
✓ Brand New Construction | Site is Expected to Open in the March 2022
✓ Dense Retail Corridor | QFC, Starbucks, Taco Bell, UPS Shell, Bank of America,
Subway, U-Haul and Many More
✓ Strong Traffic Counts | WA-512| Boasts Average Daily Traffic Counts of
Approximately 79,000 Vehicles
✓ Compelling Location Fundamentals | Located on the Hard Corner of a Signalized
Intersection
✓ Robust Population | Roughly 700,000 Residents within a 10-Mile Radius
✓ Features High Visibility and Ease of Access
✓ Positive Real Estate Fundamentals | Less Than 35 Miles from Seattle |Just 15 Representative Photo
Minutes from Tacoma City Center
About the Tenant / Brand
✓ Burger King is the #2 Fast Food Hamburger Chain, Globally
✓ Nearly 14,000 restaurants in 100+ countries
✓ Burger King Serves More than 11,000,000 Guests Per Day
✓ 100% of Burger Kings are Owned and Operated by Independent Franchises
✓ Ambrosia QSR Oregon, LLC is a Well-Funded Developer and Operator of Burger
King Locations | They are One of the Top Performing Operators within the
Burger King System
Burger King 4
Financial Analysis
PRICE: $2,735,838 | CAP: 5.00%| RENT: $136,792
PROPERTY DESCRIPTION RENT SCHEDULE
Property Burger King Lease Year Annual Rent Monthly Rent Rent Escalation
Property Address 11204 B Street South Year 1 $136,792 $11,399 -
City, State ZIP Parkland, WA 98444 Year 2 $136,792 $11,399 -
Year 3 $136,792 $11,399 -
Year Built Expected to Open Mar. 2022
Year 4 $136,792 $11,399 -
Building Size (SF) 2,600 Year 5 $136,792 $11,399 -
Lot Size (Acres) +/- 0.41 Acres Year 6 $139,528 $11,627 2.00%
Type of Ownership Fee Simple Year 7 $142,318 $11,860 2.00%
Year 8 $145,165 $12,097 2.00%
THE OFFERING Year 9 $148,068 $12,339 2.00%
Purchase Price $2,735,838 Year 10 $151,029 $12,586 2.00%
CAP Rate 5.00% Year 11 $154,050 $12,837 2.00%
Annual Rent $136,792 Year 12 $157,131 $13,094 2.00%
Year 13 $160,274 $13,356 2.00%
LEASE SUMMARY Year 14 $163,479 $13,623 2.00%
Property Type Net-Leased Restaurant Year 15 $166,749 $13,896 2.00%
Tenant / Guarantor Ambrosia QSR Oregon / Ambrosia QSR III, LLC Year 16 $170,084 $14,174 2.00%
Year 17 $173,485 $14,457 2.00%
Original Lease Term 20 Years
Year 18 $176,955 $14,746 2.00%
Lease Commencement Close of Escrow Year 19 $180,494 $15,041 2.00%
Lease Expiration 20 Years from Close of Escrow Year 20 $184,104 $15,342 2.00%
Lease Term Remaining 20 Years INVESTMENT SUMMARY
Lease Type Triple Net (NNN) Marcus & Millichap is pleased to present the exclusive listing for a Burger King located
at 11204 B Street S in Parkland, WA. The property consists of 2,600 square feet of
Roof & Structure Tenant Responsible building space and is situated on an estimated 0.41 acres of land. The tenant is subject
Rental Increases 2.00% Annually Starting Year 6 to a 20-year absolute triple net (NNN) lease, that will commence upon close of escrow.
The base rent is $136,792 and will increase by 2.00% percent annually starting in year
Options to Renew Four (4), Five (5)-Year Options six and continuing throughout the base term and into each of the four (4), five (5)-year
Final pricing is subject to change based on final development costs. Annual Rent will be adjusted tenant renewal option periods.
based on a CAP Rate equivalent.
Burger King 5
Concept Overview
About Burger King
About Burger King Great Food Comes First
Founded in 1954, Burger King® is the second largest fast food hamburger chain Every day, more than 11 million guests visit BURGER KING® restaurants around
in the world. The original Home of the Whopper, the Burger King® system the world. And they do so because our restaurants are known for serving high-
operates in approximately 14,000 locations serving more than 11 million guests quality, great-tasting, and affordable food. Founded in 1954, BURGER KING® is
daily in 100 countries and territories worldwide. Approximately 100 percent of the second largest fast food hamburger chain in the world. The original HOME
Burger King® restaurants are owned and operated by independent franchisees, OF THE WHOPPER®, our commitment to premium ingredients, signature
many of them family-owned operations that have been in business for decades. recipes, and family-friendly dining experiences is what has defined our brand
for more than 50 successful years.
Tenant Overview
Ambrosia QSR Oregon, LLC is a well-funded developer and operator of Burger
#2 Fast Food Hamburger Chain, Globally
King locations. The guarantor is Ambrosia QSR III, LLC, a 66-unit Burger King • More than $16 billion in annual system-wide sales, and nearly 350,000
entity which has been one of the top performing operators within the Burger team members, worldwide. The concept has a market capitalization of
King system. With new capital investors, the tenant is looking to expand, and roughly $10 billion.
has signed a corporate agreement to develop new Burger Kings each through
2022. The operator is following a tactical and sophisticated development thesis Global Brand Presence | Fully – Franchised Business Model
by selecting high quality locations with tremendous upside potential. • Nearly 14,000 restaurants in 100+ countries. QSR industry-leading EBITDA
margins
Burger King 6
Surrounding Area
WA-512 ADTC:79,000
PACIFIC AVENUE S
112th STREET S ADTC: 15,000
ADTC: 41,000
Burger King 7
Location Overview
The Burger King property is situated on the corner of B Street South and
112th St E. Pacific Avenue S attracts an average daily traffic count of over
41,000 vehicles. Nearby WA 512 boasts an average daily traffic count in
excess of 79,000 vehicles daily. There are approximately 84,908 individuals
residing within a five-mile radius of the subject property and 595,910 ADTC: 79,000
individuals within a ten-mile radius.
The subject property benefits from being located on the hard corner of a
signalized intersection surrounded by national and local tenants, within a
vibrant residential community. Major national tenants in the immediate
area include: QFC, Starbucks, Taco Bell, UPS Shell, Bank of America,
Subway, U-Haul and many more. The subject Burger King benefits from
being within a three-mile radius of several academic institutions. Most
notable of these being, Christensen Elementary School, James Sales
Elementary School, Franklin Pierce High School and Ford Middle School
with an enrollment with a combined of over 3,100 students.
Parkland is a census-designated place (CDP) in Pierce County, Washington, ADTC: 41,000
United States. The population was 24,053 at the 2000 census and had
grown to 35,803 as of the 2010 census. It is an unincorporated suburb of
the city of Tacoma and is home to Pacific Lutheran University.
Parkland is located eight miles south of Tacoma, on the main route to
ADTC: 15,000
nearby Mt. Rainier. It was given its name by early settlers for the park-like
nature of the vast Garry Oak and blue camas flower prairie, and the many
meandering creeks crossing it. In 1890, Norwegian-Americans from the
Midwest chose this area as the site of their new college, which is now
Pacific Lutheran University, home to 3,500 full-time students and the Lutes
varsity sports teams.
Burger King 8Local Map Burger King 9
Regional Map
WASHINGTON
Burger King 10Demographics
3 Miles 5 Miles 10 Miles
POPULATION TRENDS
2010 Population 84,908 212,513 595,910
10 Miles 2021 Population 97,953 247,509 693,160
2026 Population Projection 104,351 264,021 739,094
Annual Growth 2010-2021 1.40% 1.50% 1.50%
Annual Growth 2021-2026 1.30% 1.30% 1.30%
POPULATION BY RACE (2021)
White 58,900 154,656 482,585
5 Miles
Black 12,281 30,698 66,757
American Indian/Alaskan Native 2,252 5,663 13,331
Asian 11,664 25,608 58,417
3 Miles Hawaiian & Pacific Islander 4,021 8,151 15,261
Two or More Races 8,835 22,734 56,809
Hispanic Origin 18,021 42,003 90,042
HOUSEHOLD TRENDS
2010 Households 31,144 78,868 226,975
2021 Households 36,280 91,966 262,956
2026 Household Projection 38,726 98,183 280,420
Annual Growth 2010-2021 1.10% 1.10% 1.00%
Annual Growth 2021-2026 1.30% 1.40% 1.30%
Owner Occupied Households 19026 51882 159329
Renter Occupied Households 19700 46301 121091
Avg Household Income $69,639 $78,380 $91,719
HOUSEHOLDS BY HOUSEHOLD INCOME
(2021)
< $25,000 6,778 15,168 35,065
$25,000 - 50,000 8,982 20,106 49,126
$50,000 - 75,000 7,752 18,690 48,866
$75,000 - 100,000 5,396 13,970 38,956
$100,000 - 125,000 3,228 10,075 33,481
$125,000 - 150,000 1,638 5,270 19,987
$150,000 - 200,000 1,721 5,268 21,149
$200,000+ 785 3,418 16,327
Median Household Income $57,114 $64,082 $74,210
Burger King 11Market Overview
Seattle, Washington Seattle is a seaport city on the West Coast of the United States. It is the
seat of King County, Washington. With a 2019 population of 753,675, it is the
largest city in both the state of Washington and the Pacific Northwest region of
North America. The Seattle metropolitan area's population is 3.98 million, making
it the 15th-largest in the United States. Between 2013 and 2016, Seattle was
rated the fastest-growing major city and remained in the top five in May 2015
with an annual growth rate of 2.1%. In July 2016, Seattle ranked as the fastest-
growing major U.S. city, with a 3.1% annual growth rate, and continuously among
the fastest growing cities in the United States.
Seattle is situated on an isthmus between Puget Sound (an inlet of the Pacific
Ocean) and Lake Washington. It is the northernmost major city in the United
States, located about 100 miles (160 km) south of the Canadian border. A major
gateway for trade with northern Asia, Seattle is the fourth-largest port in North
America in terms of container handling as of 2015.
Among Seattle's prominent annual fairs and festivals are the 24-day Seattle International
Film Festival,Northwest Folklife over the Memorial Day weekend, numerous Seafair events
throughout July and August (ranging from a Bon Odori celebration to the Seafair Cup
hydroplane races), the Bite of Seattle, one of the largest Gay Pride festivals in the United
States, and the art and music festival Bumbershoot, which programs music as well as other
art and entertainment over the Labor Day weekend. All are typically attended by 100,000
people annually, as are the Seattle Hempfest and two separate Independence Day
celebrations.
Other significant events include numerous Native American pow-wows, a Greek Festival
hosted by St. Demetrios Greek Orthodox Church in Montlake, and numerous ethnic
festivals (many associated with Festál at Seattle Center).
Burger King 12E XC LU S I V E N E T - L EA S E O F F E R I N G WA Broker of Record Joel Deis Regional Manager Marcus & Millichap License: 25469
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