OREGANO'S PIZZA BISTRO - LoopNet
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OFFERING MEMORANDUM SINGLE TENANT NET LEASED INVESTMENT
PRICE: $3,495,555
CAP RATE: 6.75%
OREGANO’S
PIZZA BISTRO
±3,860 SF
523 WEST UNIVERSITY DRIVE | TEMPE ARIZONA | 85281
PREPARED BY
2398 East Camelback Road, Suite 950
Phoenix, AZ 85016 CONTENTS
TIM WESTFALL
01 EXECUTIVE
Managing Director
602 952 3822 | twestfall@ngkf.com
SUMMARY
RYAN MORONEY
Director
602 952 3820 | rmoroney@ngkf.com
DAVID GUIDO
Managing Director
602 952 3875 | dguido@ngkf.com
02 FINANCIAL &
LEASE SUMMARY
AFFILIATED BUSINESS DISCLOSURE
03
Newmark Knight Frank (the “Agent”) has been engaged as the exclusive sales representative
for the sale of 523 West University Drive, Tempe, Arizona 85281 (the ”Property”) by ‘Ownership’
(the “Seller”). TENANT
This Memorandum does not constitute a representation that the business or affairs of the Property or Seller
since the date of preparation (1/16/2020 of this Memorandum have remained the same. Analysis and
PROFILE
verification of the information contained in this Memorandum are solely the responsibility of the prospective
purchaser.
Additional information and an opportunity to inspect the Property will be made available upon written
request of interested and qualified prospective purchasers. Seller and Agent each expressly reserve the
right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property,
04
and/or terminate discussions with any party at any time with or without notice. Seller reserves the right to
change the timing and procedures for the Offering process at any time in Seller’s sole discretion. Seller
shall have no legal commitment or obligations to any party reviewing this Memorandum, or making an offer AREA
to purchase the Property, unless and until such offer is approved by Seller, and a written agreement for the
purchase of the Property has been fully executed and delivered by Seller and the Purchaser thereunder. OVERVIEW
This Memorandum and the contents, except such information which is a matter of public record or is
provided in sources available to the public, are of a confidential nature. By accepting this Memorandum,
you agree that you will hold and treat it in the strictest confidence, that you will not forward, photocopy or
duplicate it, that you will not disclose this Memorandum or any of the contents to any other entity (except to
outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal
and from whom you have obtained an agreement of confidentiality) without the prior written authorization of
Seller or Agent, and that you will not use this Memorandum or any of the contents in any fashion or manner
detrimental to the interest of Seller or Agent.
Oreganos Tempe 2
01 EXECUTIVE
SUMMARY
Oreganos Tempe 3
THE OFFERING
...just 1 block from Mill Avenue & Arizona State University
Newmark Knight Frank (NKF), as exclusive advisor, is pleased to
present the opportunity to acquire the Oregano’s Pizza Bistro (the
with a 3-mile population of 118,646
Property) absolute net leased offering, a 3,860-square-foot Italian
restaurant in Tempe, named the most walkable city in Arizona. BUILDING
523 West University Drive | Tempe, Arizona | 85281
ADDRESS
This single-story building is located on ±0.64 acres with frontage on
one of Tempe’s busiest arterials, University Drive, leading directly to TENANT Oregano’s Pizza Bistro
Arizona State University’s Tempe campus (±51,585 students).
YEAR
BUILT
1995
The Property, with a 3-mile population of ±118,646, is just 1
TOTAL
block from ASU’s bustling restaurant and entertainment district of BUILDING ±3,860, including ±1,234 SF Patio
AREA
Mill Avenue and only 2 blocks from Sun Devil Football Stadium,
LAND
Desert Financial Basketball Arena, and ASU Gammage Auditorium. ±0.64 Acres
AREA
Boasting increasing PSF sales YOY along with its proximity to the TRAFFIC East/West University Drive: ±27,003 VPD
largest university in the country, this property provides a stable COUNTS North/South Roosevelt Street: ±10,790 VPD
investment asset for years to come.
Oreganos Tempe 4
Oreganos Tempe 5
OFFERING HIGHLIGHTS
• Irreplaceable Real Estate – property has direct frontage on University Drive and sits across the street from the largest
university in the country, Arizona State University, which consists of 51,585 on-campus students
• Award Winning Restaurant – ability to invest in a coveted restaurant concept with tremendous brand recognition and
rich Arizona history
• Corporate Guaranty – Lease backed by Oregano’s parent company. Oregano’s currently has 24 locations including
21 in Arizona and several more in development
• Built-In Customer Base– Adjacent to 1M+ SF of Class A office space with 210,000 employees and 4,556 apartment
units, all located within 1-mile walking distance from the site
• Unit Performance – Tenant continues to perform at a high level, posting strong sales YOY
• Passive Deal Structure – Absolute NNN lease with ZERO Landlord responsibilities
• Attractive Yield – Property offers buyer a strong return beginning day 1 of ownership
• Surrounding Neighboring Developments – Brand new Whole Foods 1 block away with 286 residential units slated to
deliver Q2 2020 along with new restaurant/fitness oriented projects within the immediate area
Oreganos Tempe 6
Encompasses ±664 acres
±51,585 students
R
Thai Basil
Tops Liquor
Youth
Resource
Taste of Tops Bar
Center Loving Hut Vegan
D
VP
03
7,0
±2
IVE
DR
ITY
RS
IVE
UN
ROOSEVELT STREET ±10,790 VPD
Oreganos Tempe 7
Tempe/Mill Avenue Bridges
±172,909 VPD
VPD
003
E ±27,
RIV
R S I TY D
E
UNIV
RO
OS
EV
EL
TS
TR
EE
T±
10
,79
0V
PD
Oreganos Tempe 8
02 FINANCIAL &
LEASE SUMMARY
Oreganos Tempe 9
FINANCIAL & LEASE SUMMARY
FINANCIAL SUMMARY LEASE SUMMARY
PRICE $3,495,555 TENANT Oregano’s Tempe Lease, LLC
CAP RATE 6.75%
LEASE
GUARANTOR
Corporate
NOI / ANNUALLY $235,950
LEASE
FINANCING Free & Clear TYPE
NNN
NOI /
ANNUALLY
$235,950 (as of May 2020)
Tenant is responsible to keep, maintain and preserve
TENANT
RESPONSIBILITY
the Premises in good, clean safe order, condition
and repair, including structural repairs.
LANDLORD
RESPONSIBILITY
None
LEASE
COMMENCEMENT
May 1, 2010
LEASE
EXPIRATION
April 30, 2025
ORIGINAL
LEASE TERM
15 Years
REMAINING
TERM
~5 Years
LEASE
OPTIONS
Two 10-Year Options
This absolute NNN lease has approximately 5 years RENTAL
10% Increases in Each Option
INCREASES
remaining on its original 15-year term with two10-
year options to renew & 10% increases in each option
period. Oreganos Tempe 1003 TENANT
PROFILE
Oreganos Tempe 11At your neighborhood pizza joint we serve
great food with ice cold specialty drinks
and a side of good laughs. So whether
you’re bringing the whole family for dinner,
your co-workers for a business lunch or
looking for second date insurance (wink,
wink), we’ll treat every meal like it’s a big
deal.
Founded in 1993, Oregano’s history starts
where every good Italian restaurant begins
– in the family kitchen of our founder, Mark
S. Russell. Using authentic family recipes, TENANT Oregano’s Tempe Lease, LLC
Oregano’s has grown to 21 restaurants
across the Phoenix metro area, including LEASE GUARANTOR Corporate
Tucson and Flagstaff and 3 in Colorado.
LEASE EXPIRATION April 30, 2025
LOCATIONS 24 locations; 21 in Arizona, 3 in Colorado
www.oreganos.com
Oreganos Tempe 1204 AREA
OVERVIEW
Oreganos Tempe 13AREA OVERVIEW
TEMPE
With its central location in the Greater Phoenix area, more than 200,000
people work in the community of 182,000 residents. The reason? Easy
commutes, great companies and an unparalleled quality of life. Tempe’s
more than 150 annual special events combined with world-class research
facilities and major corporations make Tempe a place to learn and grow.
Tempe is home to 11 institutions of higher learning, including Arizona
State University, the #1 most innovative university in the U.S.
Tempe attracts companies that will generate the new ideas of tomorrow,
including: advanced business services, technology and manufacturing.
The City maintains one of the most thriving economic environments in
the country. Top research firms, Fortune 500 companies and start-ups
all find what they need to start, grow and thrive here.
5-MILE DEMOS
285,636 125,590 35.4 $59,000
POPULATION HOUSEHOLDS MEDIAN AGE AVERAGE HH INCOME
Oreganos Tempe 14DOWNTOWN
PHOENIX
,79 0 VPD
R E E T ±10 UNIV
T
E LT S ERSI
RO OSEV TY D
RIVE
±27,
003
VPD Youth
Resource
Center
Oreganos Tempe 15PREPARED BY
2398 East Camelback Road, Suite 950
Phoenix, AZ 85016
TIM WESTFALL RYAN MORONEY DAVID GUIDO
Managing Director Director Managing Director
+1 602 952 3822 +1 602 952 3820 +1 602 952 3875
twestfall@ngkf.com rmoroney@ngkf.com dguido@ngkf.com
Newmark Knight Frank (the “Agent”) has been engaged as the exclusive sales representative for the sale of 523 West University Drive, Tempe, Arizona 85281(the ”Property”) by ‘Ownership’ (the “Seller”). The information contained herein has been obtained from sources deemed reliable but has
not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.You can also read
