WHATABURGER GROUND LEASE - SEC QUEEN CREEK ROAD & GILBERT ROAD CHANDLER, ARIZONA - OFFERING MEMORANDUM
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WHATABURGER GROUND LEASE
SEC QUEEN CREEK ROAD & GILBERT ROAD
CHANDLER, ARIZONA
REPRESENTATIVE PHOTO
OFFERING MEMORANDUM
SANTAN VILLAGE
101
DOWNTOWN
CHANDLER
19,000 STUDENTS
CHANDLER FASHION
CENTER
202
OCOTILLO
CAMPUS
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 // Whataburger Ground Lease
Executive Summary
SEC Queen Creek Road & Gilbert Road, Chandler, AZ 85286
FINANCIAL SUMMARY ANNUALIZED OPERATING DATA
Price $2,667,000 Lease Years Annual Rent Cap Rate
Cap Rate 3.75% 1-5 $100,000.00 3.75%
Building Size 3,751 SF 6 - 10 $110,000.00 4.12%
Net Cash Flow 3.75% $100,000 11 - 15 $121,000.00 4.54%
Year Built 2021 Under Construction Options Annual Rent Cap Rate
Lot Size +/− 1.67 Acres Option 1 $133,100.00 4.99%
LEASE SUMMARY Option 2 $146,410.00 5.49%
Lease Type Triple-Net (NNN) Ground Lease Option 3 $161,051.00 6.04%
Tenant Whataburger Restaurants, LLC
Guarantor Corporate Base Rent $100,000
Roof & Structure Tenant Responsible Net Operating Income $100,000
Rent Commencement Date July 1, 2021
Total Return 3.75% $100,000
Lease Expiration Date June 30, 2036
Lease Term 15 Years
Rental Increases 10% Every 5 Years
Renewal Options 3, 5 Year Options
MARCUS & MILLICHAP 3 // Whataburger Ground Lease
202
162,410 CPD
LOOP 202 (SANTAN FWY)
JIMMY
JOHN’S
CHANDLER
MUNICIPAL MCDONALD’S
AIRPORT
38,450 CPD
S GILBERT RD
7,400 CPD
E QUEEN CREEK RD
1,250 STUDENTS
MARCUS & MILLICHAP 4 // Whataburger Ground Lease
38,450 CPD
S GILBERT RD
CHANDLER
CROSSROADS
BUSINESS PARK
7,400 CPD
E QUEEN CREEK RD
NATIONAL QSR
COMING SOON
1,250 STUDENTS
MARCUS & MILLICHAP 5 // Whataburger Ground Lease
Property Description DEMOGRAPHICS 1-mile 3-miles 5-miles
Population
2025 Projection 10,436 91,326 291,321
2020 Estimate 8,398 79,783 263,165
Growth 2020 - 2025 24.27% 14.47% 10.70%
Households
REPRESENTATIVE PHOTO 2025 Projection 3,024 28,947 100,786
2020 Estimate 2,443 25,263 90,730
Growth 2020 - 2025 23.78% 14.59% 11.08%
Income
INVESTMENT HIGHLIGHTS
2020 Est. Average
» Brand New 15-Year Triple-Net (NNN) Corporate Ground Lease $157,376 $144,245 $127,262
Household Income
» 10% Rental Increases Every 5 Years 2020 Est. Median
$114,301 $106,517 $93,877
Household Income
» 263,165 Residents within a 5-Mile Radius - Phoenix MSA
2020 Est. Per
$45,787 $45,691 $43,895
» Rapidly Growing Trade Area - Households and Population Projected to Increase 24%+ Capita Income
within a 1-Mile Radius by 2025
» Located Near the High Traffic Intersection of Queen Creek Road and Gilbert Road -
45,800+ Cars/Day
» Down the Road from Major Retail Corridor - Target, The Home Depot, Walmart, Hobby
Lobby, JCPenney, PetSmart, Michaels, and More
» Located within the New Layton Lakes Village Retail Center
» 1 Mile Off the Loop 202 (Santan Freeway) - 162,410 Cars/Day
» Average Household Income Exceeds $157,000 within 1-Mile in Affluent Trade Area
MARCUS & MILLICHAP 6 // Whataburger Ground Lease
REPRESENTATIVE PHOTO
Tenant Overview
Private San Antonio, Texas 1950 800+ www.whataburger.com
Company Type Headquarters Founded Locations Website
Whataburger is a privately-held, American regional fast food restaurant chain sandwich), and the Whatachick’n®. The company also has a breakfast menu.
headquartered and based in San Antonio, Texas. The company was founded Today, Whataburger is still family owned and operated with over 43,000
in 1950 in Corpus Christi, Texas by Harmon Dobson who wanted to serve a employees and more than 800 locations across Arizona, Arkansas, Alabama,
burger so big that it took two hands to hold and so good that after a single bite, Florida, Georgia, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. Each
customers couldn’t help but exclaim, “What a burger!” The company’s core and every Whataburger® is made to order, using 100% pure beef and served on
products include the Whataburger®, the Justaburger®, the Whatacatch® (fish a big, toasted five-inch bun.
MARCUS & MILLICHAP 7 // Whataburger Ground Lease
Layton Lakes Village Center Site Plan
RETAIL
6,000 SF
NATIONAL
QSR
COMING
SOON RESTAURANT
4,400 SF
OFFICE SPACE
16,800 SF
MARCUS & MILLICHAP 8 // Whataburger Ground LeaseBuilding Elevations 1 2 3 4 5
MP-1 CM-2
MP-1
TOP OF SCREEN WALL
121' - 8"
MP-1
TOP OF LOWER PARAPET
PT-5 118' - 0"
CM-1
D
T.O. CANOPY A Professional Corporation
112' - 6" 3801 Kirby Dr., Suite 600
Houston, Texas 77098
tel: 713 664 7974
fax: 713 664 9756
G-1
G-1
G-1 PT-5
1 2 3 4 5
TOP OF SLAB
100' - 0"
EAST ELEVATION PC-1
CM-2 CM-1 PT-5 PC-1 CM-1
REV DESCRIPTION
MP-1 CM-2
MP-1
EAST ELEVATION
2 3/16" = 1'-0"
TOP OF SCREEN WALL
121' - 8"
MP-1
TOP OF LOWER PARAPET
MP-1 MP-1 CM-2 PT-5 118' - 0"
CD CM-1
TOP OF SCREEN WALL
S. GILBERT ROAD & E.
MP-1 121' - 8"
QUEEN CREEK ROAD
T.O. CANOPY A Professional Corporation
112' - 6" 3801 Kirby Dr., Suite 600
Houston, Texas 77098
tel: 713 664 7974
fax: 713 664 9756
PT-5 G-1 CM-1
G-1
G-1 PT-5
T.O. CANOPY
112' - 6"
G-1
G-1 TOP OF SLAB
100' - 0"
CHANDLER, AZ
CM-2 CM-1 PT-5 PC-1 CM-1
PC-1 REV DESCRIPTION
2
EAST ELEVATION
3/16" = 1'-0"
NORTH ELEVATION TOP OF SLAB
100' - 0"
WEST ELEVATION
1 3/16" = 1'-0" PC-1
CM-2 CM-1 PT-4 PC-1
MP-1 MP-1 CM-2
and Getwell\SEC Gilbert Rd and Queen Creek_centra 0415.rvt
BC
TOP OF SCREEN WALL
S. GILBERT ROAD & E.
MP-1 121' - 8"
QUEEN CREEK ROAD
PT-5 CM-1
T.O. CANOPY Project No.: 2104398
112' - 6"
Client Project No.: 202006-287
G-1
G-1
CHANDLER, AZ
C:\Users\wdrake\Desktop\Whataburger\Goodman
CM-1 CMU - FIELD BLACK MOUNTAIN
CM-2 CMU - FIELD RUTHERFORD
G-1 ALUMINUM STOREFRONT - CLEAR ANODIZED
GLAZING - 1" INSULATED | IECC COMPLIANT
TOP OF SLAB
100' - 0"
1 WEST ELEVATION
WEST ELEVATION
3/16" = 1'-0" PC-1
CM-2 CM-1 PT-4 PC-1
A
0415.rvt
B
Creek_centra
Drawing Title:
BUILDING ELEVATIONS
Rd and Queen
PT-4 PAINT | SEA GULL |
PT-5 PAINT | ARIZONA CLAY |
MP-1 STANDING SEAM METAL PANEL |
PC-1 PRE-CAST CONCRETE PANEL |
PM
DET454, LRV 22, DUNN EDWARDS COLOR: OATMEAL
DET637, LRV51, DUNN EDWARDS METALSALES | COLOR: SLATE GRAY COLOR
Gilbert 6:30:25
Date: 03/15/21 Phase: DESIG
Designed: Designer
Project No.: 2104398 Drawing No.:
4/15/2021
Drawn : Project
Author
Client No.: 202006-287
A2.8
C:\Users\wdrake\Desktop\Whataburger\Goodman and Getwell\SEC
Checked : Checker
CM-1 CMU - FIELD BLACK MOUNTAIN
CM-2 CMU - FIELD RUTHERFORD
G-1 ALUMINUM STOREFRONT - CLEAR ANODIZED
GLAZING - 1" INSULATED | IECC COMPLIANT
A SOUTH ELEVATION
MARCUS & MILLICHAP 9 // Whataburger Ground Lease
Drawing Title:
BUILDING ELEVATIONS
PT-4 PAINT | SEA GULL |
PT-5 PAINT | ARIZONA CLAY |
MP-1 STANDING SEAM METAL PANEL |
PC-1 PRE-CAST CONCRETE PANEL |
1 6:30:25 PM
DET454, LRV 22, DUNN EDWARDS COLOR: OATMEAL
DET637, LRV51, DUNN EDWARDS METALSALES | COLOR: SLATE GRAY COLOR
Date: 03/15/21 Phase: DESI
Designed: Designer Drawing No.:Location Overview 8 Miles
to Chandler Fashion
Center
18 Miles
to Arizona State
University
23 Miles
to Phoenix Sky Harbor
International Airport
28 Miles
to Downtown Phoenix
Located in Metropolitan Phoenix, Chandler embodies an active lifestyle with easy Over 75 percent of Chandler’s 30,000 manufacturing employees are in high tech
access to outdoor recreation with endless family-fun, award-winning events, fields; the national average is 15 percent.
world-class golf facilities, and a vibrant downtown. Visitors and residents enjoy The Price Corridor is the foremost example of how strategic investment in
the diverse community with its vibrant restaurants of every cuisine, premier infrastructure and long-term planning can positively shape a community. High
shopping, arts and culture and a wide range of things to do all year-round. capacity utilities, preserved employment sites, well placed parks and numerous
In recent years, Chandler’s borders have been expanded and the population has residential options make the area appealing to companies and individuals alike.
boomed from 30,000 in 1980 to more than 240,000 today. The economic base Price Corridor’s commercial real estate mix includes Class “A” office, executive
of Chandler has been diversified. While agriculture is still somewhat of a vital office suites, light industrial parks, mixed-use projects and corporate and
element, Chandler now enjoys a strong manufacturing and electronics sector. technology campus settings.
Motorola and Intel combined have five plants in Chandler, including Motorola’s This burgeoning high-technology center along with friendly neighborhoods,
Iridium and Intel’s Pentium III chip facilities. Other high tech industries are excellent schools and a thriving shopping and dining scene, has made the Price
Rogers, Avnet, AMKOR, SpeedFam, Orbital Sciences and Microchip Technology. Corridor a powerful magnet for both talent and notable industry leaders.
MARCUS & MILLICHAP 10 // Whataburger Ground Lease[ exclusively listed by ]
Chris N. Lind Mark J. Ruble
Senior Vice President Executive Managing Director
602 687 6780 602 687 6766
chris.lind@marcusmillichap.com mruble@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
