Zaxby's Sale-Leaseback - UNIVERSITY BLVD - Jacksonville, FL Actual Photograph - LoopNet
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Actual Photograph Zaxby’s Sale-Leaseback - UNIVERSITY BLVD. Jacksonville, FL
CONFIDENTIALITY AND DISCLAIMER
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from
Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has
been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.
The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any 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, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and
Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or
intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure 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 regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.
All potential buyers must take appropriate measures to verify all of the information set forth herein.
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Marcus & Millichap, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The
presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its
affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information
about this listing to prospective customers.
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of
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information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR
MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
exclusively listed
Exclusively listed by:
Ethan Armentrout, PE, MBA
Associate
ATLANTA
Tel: (678) 808-2814
Cel: (404) 518-2470
ethan.armentrout@marcusmillichap.com
OFFICES NATIONWIDE License: GA 353676
www.marcusmillichap.com
Actual Photograph
Zaxby’s sale-leaseback - University Blvd. TABLE OF CONTENTS Executive Summary 1 Property Overview 3 Tenant Overview 8 Competitive Property Set 12 Market Overview 18
Actual Photograph
summary
E XECUTIVE SUMMARY
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Zaxby’s sale-leaseback - University Blvd. E X E C U T I VE S U MMARY
OPERATING DATA OPERATING DATA
OFFERING SUMMARY Year Annual Rent Monthly Cap Rate Year Annual Rent Cap Rate
ZAXBY’S SALE-LEASEBACK Year 1 $184,000.00 $15,333.33 6.34% Option 1 Year 16 $221,688.57 7.64%
UNIVERSITY BLVD. Year 17 $224,459.68 7.74%
Year 2 $186,300.00 $15,525.00 6.42%
4210 S University Boulevard
Year 18 $227,265.42 7.84%
Jacksonville, FL 32216 Year 3 $188,628.75 $15,719.06 6.50%
Year 19 $230,106.24 7.93%
Year 4 $190,986.61 $15,915.55 6.59%
OFFERING SUMMARY Year 20 $232,982.57 8.03%
Year 5 $193,373.94 $16,114.50 6.67%
Price $2,900,000 Option 2 Year 21 $235,894.85 8.13%
Cap Rate 6.34% Year 6 $195,791.12 $16,315.93 6.75%
Year 22 $238,843.54 8.24%
Net Operating Income $184,000 Year 7 $198,238.51 $16,519.88 6.84% Year 23 $241,829.08 8.34%
Gross Leasable Area (GLA) 3,932 SF
Year 8 $200,716.49 $16,726.37 6.92% Year 24 $244,851.94 8.44%
Price/SF $738
Year 9 $203,225.44 $16,935.45 7.01% Year 25 $247,912.59 8.55%
Year Built 2012
Year 10 $205,765.76 $17,147.15 7.10% Option 3 Year 26 $251,011.50 8.66%
Lot Size 0.88 +/- Acres
Year 11 $208,337.83 $17,361.49 7.18% Year 27 $254,149.14 8.76%
VITAL DATA Year 28 $257,326.01 8.87%
Year 12 $210,942.06 $17,578.50 7.27%
Year 29 $260,542.58 8.98%
Net Cash Flow After Debt Service $52,033 Year 13 $213,578.83 $17,798.24 7.36%
Year 30 $263,799.37 9.10%
Cash-on-Cash Return 5.98%
Year 14 $216,248.57 $18,020.71 7.46%
Total Return (Principal Reduction) 11.33% / $98,626 Option 4 Year 31 $267,096.86 9.21%
Year 15 $218,951.67 $18,245.97 7.55%
Financing Proposed New Year 32 $270,435.57 9.33%
Base Rent $184,000.00 $15,333.33 6.34%
Year 33 $273,816.01 9.44%
Net Operating Income $184,000.00 $15,333.33 6.34% Year 34 $277,238.71 9.56%
FINANCING
Debt Service $131,967.00 $10,997.25 Year 35 $280,704.20 9.68%
Loan to Value 70%
Debt Coverage Ratio $1.39
Down Payment 30% / $870,000
Loan Amount $2,030,000 Net Cash Flow After Debt Service $52,033.00 LEASE SUMMARY
Lease Type Absolute Net
Loan Type Conventional Principal Reduction $46,593.00
Roof and Structure Tenant Responsible
Interest Rate 4.25% Total Return $98,626.00
Lease Guarantor Corporate
Amortization 25 Years
Original Lease Term 15 Years
Rent Commencement Date Close of Escrow
Lease Expiration Date 2032
Remaining Lease Term 15 Years
Options Four (4), 5-Year Options
Increases 1.25% Annual
1
EXE CU TIVE SUM M A RY Zaxby’s sale-leaseback - University Blvd.
Investment Overview
Marcus & Millichap is pleased to offer this Sale-Leaseback of a Zaxby’s located
in the Jacksonville, FL. Upon closing, Zaxby’s will execute a 15-year Absolute-
Net lease that matches the years remaining in his current franchisee agreement.
The lease will have 1.25% annual escalations and will include 4 x 5-Year
Options that also have these same escalations. The tenant will be responsible
for all expenses associated with the property, including the building’s roof and
structure.
Zaxby’s on S University Blvd (Florida State Route ) is located along a major
retail corridor, just off of I-95. This corridor leads to a centralized medical
hub that is home to Memorial Hospital Jacksonville, Brooks Rehabilitation
Hospital, and several other Medical Office Buildings. The 5-mile daytime
population surges from 177,662 to 295,567 people – a 66% increase - because
of this bustling, high-employment location. Additionally, Virginia College, Investment Highlights
University Christian School, and Englewood High School each provide hungry
students that frequent this store. ■ 15-Year Sale-Leaseback with Annual Escalations
■ Strong Franchisee with 6 Operating Stores, 3 Stores Under
Zaxby’s was recently recognized when Forbes added it to its list of The Best Construction, & Commitment for 14 Additional Stores
Franchises in America 2015, which is based on finances over a five-year period
(www.forbes.com – 6/30/16). The Zaxby’s corporation is based in Athens, ■ Conservative Rent-to-Sales Ratio
Georgia and has over 730 stores. The stores have been located heavily in the ■ Zaxby’s Currently Operates 730+ Locations
southeast and now Zaxby’s is growing its territory into several other states such ■ Dense Retail Corridor Centrally Located at Exit along I-95
as Missouri, Indiana, and Oklahoma. The franchisee has 23 stores at some
stage in his pipeline, setting him up to become one of the strongest Zaxby’s
■ High Employment Area Where Daytime Population Surges 66%
franchisees to be affiliated with the brand. This plan to continue adding stores ■ 5-Mile Population of 177,662; 5-Mile Daytime Population of
will increase the credit of the lease at this location. 295,567
■ Traffic Counts of 40,000 AADT along University Blvd
2property PROPERT Y OVERVIEW
PROPERTY
P R O P E R T YOV
D EERV
S C RIIEW
PTION Zaxby’s sale-leaseback - University Blvd.
Regional Map
Naval Station
Mayport
Jacksonville
Jacksonville Naval
Air Station
4Zaxby’s sale-leaseback - University Blvd. PR OPE RT Y OVE RVI E W
Local Map
ENGLEWOOD
HIGH SCHOOL
5PROPERTY
P R O P E R T YOV
D EERV
S C RIIEW
PTION Zaxby’s Sale-Leaseback - University Blvd.
PROPERTY DESCRIPTION
6PROPERTY
P R O P E R T YOV
D EERV
S C RIIEW
PTION Zaxby’s Sale-Leaseback - University Blvd.
McDONALD’S
JIMMY
Residential JOHN’S
Communities
±177,662 Residents in EMERALD TIGER
5-Miles Radius NUTRITION CENTER
Average HHI $60,561
WALGREEN’S
EAGLE ROCK
ENGLEWOOD APARTMENTS
HIGH SCHOOL
.
.S
DRIFTWOOD
VD
APARTMENTS BL
TY
RSI
I VE
UN
FIRST COAST
HEART & VASCULAR
CENTER
UNIVERSITY BLVD. S.
7tenant TENANT OVERVIEW
FI N
F IANNCIAL
A N C I A LA NA
ANALYSI
LY SSI S Zaxby’s Sale-Leaseback - University Blvd.
TENANT OVERVIEW
Tenant Trade Name Zaxby's
Zaxby’s is a franchised chain of fast casual restaurants offering Ownership Private
chicken wings, chicken fingers, sandwiches and salads. The Tenant Franchisee
company operates primarily in the Southeastern United States Lease Guarantor Franchisee’s Corporate Guaranty
with more than 700 locations across 15 states: Alabama, Arkansas,
Lease Type Absolute Net
Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, Missouri,
North Carolina, South Carolina, Tennessee, Texas, Utah and Virginia. Roof and Structure Tenant
Lease Term 15 Years
The first Zaxby’s was established in Statesboro, Georgia near the Lease Commencement Upon Closing
Georgia Southern University campus, by childhood friends Zach
Rent Commencement Upon Closing
McLeroy and Tony townley. The company operates as a casual
dining restaurant, offering prepared-at-order chicken fingers, Lease Expiration 15 Years
chicken wings, sandwiches, salads, and appetizers. Dipping Sauces Term Remaining on Lease 15 Years
are offered with chicken finger orders, and range from mild, to the Increases 1.25%
moderate “Zax Sauce,” to the intensely hot “Nuclear” and “Insane.” Options 4 x 5-Year Options
Dining rooms at Zaxby’s restaurants are decorated with assorted
Total No. of Locations 730+
whimsical objects and signs, which often vary in theme by location
and region. Some locations in college towns feature objects and Headquarters Athens, Georgia
decorations related to the local university. Web Site www.zaxbys.com
9Zaxby’s Sale-Leaseback FI NANC I AL ANALYS I S
FINA N C I A L A N A LY- SUniversity
IS Blvd.
JUN 30, 2016
Best And Worst Food Franchises: Our Rankings And Inside The Rise of Zaxby's
Some of the fast-food giants that started in the fifties and sixties—think McDonald’s,
Burger King, Subway—still dominate the food-franchise landscape in sales and
scale. But as mature companies, their growth has slowed. Forbes’ 2016 Best and
Worst Franchises list indicates that a different group of quick-serve restaurants is
now expanding and prospering.
Zaxby’s is a fascinating example. The fast-casual chain launched in 1990 with a
menu of fried chicken dishes, entering a category already filled with chicken-
focused chains such as Chick-fil-A, Bojangles, and Popeyes. Yet Zaxby’s sales
topped $1 billion in 2014, with its hundreds of locations averaging more than $2
million in annual revenue—more sales per unit than powerhouses such as Taco Bell
and Wendy’s, according to QSR magazine. What drives Zaxby’s success? A number
of surprising factors.
The first Zaxby’s opened in Statesboro, Georgia, the college town where Georgia
Southern sits. It was a hit with students looking for a fast, inexpensive meal, and the
Statesboro restaurant remains the company’s highest-grossing location. Zaxby’s
has since gone on to replicate the college-town formula repeatedly. Its first location
in Mississippi was in Oxford, home of Ole Miss. Its first location in Kentucky was in Bowling Green, home of the Western Kentucky University. New
franchisees in Norman and Stillwater, Oklahoma say they chose their locations for their proximity to colleges.
In addition, sports are a big part of southern culture, a reality that Zaxby’s has shrewdly embraced. It has secured sponsorships with 25 universi-
ties with strong sports programs, including the University of Alabama and Duke, and dubbed itself “The Official Chicken of College Sports.” Zaxby’s
standardizes its restaurants’ menu and core interior design, but it tailors some decorations to each community. Custom artwork and local football
memorabilia aim to establish a local feel. When you go to its Tuscaloosa, Alabama location, “it feels like Crimson Tide,” says Ted Zoller, a professor of
strategy and entrepreneurship at UNC’s Kenan-Flagler business school. “They’ve mapped it to the culture of the South.”
Robert Ward, who owns four Zaxby’s in and around Nashville, credits the fast-casual model. “It fits into a niche that’s not really hit on by others. It’s
one step above fast food.” For example, Zaxby’s has more dine-in business than Chick-fil-A, says Chris O’Cull, an equity research analyst at KeyBanc
Capital Markets.
UNC professor Zoller also praises the decision of Zaxby’s founders to stay closely involved in the business. Zach McLeroy and Tony Townley each
own stock in more than 100 locations, maintaining a strong vested interest in the chain’s success. Their support of franchisees is visible in the quar-
terly meetings they do with Zaxby’s owners, during which they discuss business and then eat dinner together. Franchisee Robert Ward says he sees
the Zaxby’s corporate officers and his co-franchisees as a family.
10competitive
COMPETITIVE PROPERT Y SETCOMPETITIV
CO M P E T I T I VEE PPRRO
OPP ERTY
E R T Y SSET
ET Zaxby’s Sale-Leaseback - University Blvd.
Comparables Map
7
5
6
Recent Sales 2
1 Zaxby’s - Town Center
2 Zaxby’s - Peachtree City
Zaxby’s - Hwy. 92 S
4 2
3
4 Zaxby’s - Hwy. 85 N
3
5 Zaxby’s - Bartram Park
On Market
Subject - Zaxby’s - University Blvd.
1 1
1 Zaxby’s - Town Center 5
2 Zaxby’s - Oklahoma City, OK
3
3 Zaxby’s - Sanford, FL
4 Zaxby’s - New Port Richey, FL 4
5 Zaxby’s - West Valley, UT
6 Zaxby’s - Tooele, UT
7 Zaxby’s - Sandy, UT
13Zaxby’s
CO M PSale-Leaseback
E T I T I V E P R O P- University
E R T Y S E T Blvd. C OMPE T I T I VE PR OPE RT Y S E T
Recent Sales Comparables
Average Cap Rate
Average Price/ SF
14COMPETITIVE P R O P ERTY SET Zaxby’s Sale-Leaseback - Town Center
Recent Sales Comparables
1 2
Zaxby's Sale-Leaseback -
Zaxby's - Town Center Zaxby's - Peachtree City
University Blvd
4875 Gate Parkway 201 Worth Court
4210 S University Boulevard
Jacksonville, Florida 32246 Peachtree City, Georgia 30269
Jacksonville, Florida 32216
Close of Escrow 3/2/2017 Close of Escrow 2/24/2017
List Price $2,900,000 Sales Price $2,888,000 Sales Price $2,000,000
Percent Down 30% Percent Down 100% Percent Down 100%
Rentable SF 3,932 Rentable SF 3,532 Rentable SF 4,227
Price/SF $737.54 Price/SF $817 Price/SF $473
Cap Rate 6.34% Cap Rate 6.75% Cap Rate 6.45%
Year Built 2012 Year Built 2010 Year Built 2003
15COMPETITIV
CO M P E T I T I VEE PPRRO
OPP ERTY
E R T Y SSET
ET Zaxby’s sale-leaseback - University Blvd.
Recent Sales Comparables
3 4 5
Zaxby's - Hwy 92 S Zaxby's - Hwy 85 N Zaxby's - Bartram Park
130 Hwy 92 South 1325 Highway 85 North 13973 Village Lake Circle
Fayetteville, Georgia 30215 Fayetteville, Georgia 30214 Jacksonville, Florida 32258
Close of Escrow 1/13/2017 Close of Escrow 1/13/2017 Close of Escrow 10/17/2016
Sales Price $2,258,784 Sales Price $2,238,592 Sales Price $2,883,000
Percent Down 100% Percent Down 100% Percent Down 89%
Rentable SF 2,873 Rentable SF 3,590 Rentable SF 3,588
Price/SF $786 Price/SF $623 Price/SF $803
Cap Rate 6.25% Cap Rate 6.25% Cap Rate 6.75%
Year Built 2004 Year Built 2004 Year Built 2009
16Zaxby’s
CO M Psale-leaseback
E T I T I V E P R O P-EUniversity
R T Y S E T Blvd. C OMPE T I T I VE PR OPE RT Y S E T
On Market Comparables
Average Cap Rate
Average Price/ SF
Average Price/ Rentable SF
17Zaxby’s
CO M Psale-leaseback
E T I T I V E P R O P- EUniversity
R T Y S E T Blvd. C OMPE T I T I VE PR OPE RT Y S E T
On Market Comparables
Zaxby's Sale-Leaseback -
University Blvd
4210 S University Boulevard
Jacksonville, Florida 32216
List Price $2,900,000
Percent Down 30%
Rentable SF 3,932
Price/SF $737.54
Cap Rate 6.34%
Year Built 2012
1 Zaxby's - Town Center
4875 Gate Parkway
Jacksonville, Florida 32246
List Price $3,898,360
Rentable SF 3,532
Price/SF 1103
Cap Rate 5.00%
Year Built 2010
2 Zaxby's - Oklahoma City
12215 N. Rockwell Ave
Oklahoma City, OK 73162
List Price $2,543,000
Rentable SF 3,652
Price/SF 696
Cap Rate 6.35%
Year Built 2016
18C OMPETITIVE P R O P ERTY SET Zaxby’s sale-leaseback - University Blvd.
On Market Comparables
Representative Picture
3 Zaxby's - Sanford
3815 S Orlando Drive
Sanford, Florida 32773
List Price $4,227,000
Rentable SF 3,847
Price/SF 1098
Cap Rate 5.75%
Year Built 2017
Representative Picture
4 Zaxby's - New Port Richey
11300 Ridge Road
New Port Richey, Florida 34654
List Price $3,310,000
Rentable SF 3,847
Price/SF 860
Cap Rate 5.75%
Year Built 2017
Representative Picture
5 Zaxby’s - West Valley UT
2683 S High Commons Way
West Valley, UT 84120
List Price $2,897,031
Rentable SF 3,976
Price/SF 728.
Cap Rate 5.50%
Year Built 2014
19Zaxby’s sale-leaseback - University Blvd. C OMPE T I T I VE PR OPE RT Y S E T
Representative Picture
6 Zaxby's - Tooele UT
1064 North Main Street
Tooele, UT 84074
List Price $2,402,690
Rentable SF 3,800
Price/SF 632.
Cap Rate 5.50%
Year Built 2014
Representative Picture
7 Zaxby's - Sandy UT
9446 South Highland Drive
Sandy, UT 84092
List Price $2,571,148
Rentable SF 3,845
Price/SF 668.
Cap Rate 5.50%
Year Built 2014
20market MARKET OVERVIEW
Zaxby’s sale-leaseback - University Blvd. MAR K E T OVE RVI E W
J AC K S ONVIL L E
Market Highlights
Attractive to businesses
The low cost of doing business draws relocating and expanding
companies.
■ Strong population growth, Population growth in the region
continues to outpace the nation.
■ Low cost of living
■ Housing costs in Jacksonville, at a median price of
$199,300, are well below that of the U.S.
■ Favorable Tax Structure
■ There is no state income tax in Florida.
Geography
Major Employers
Jacksonville is located in the northeastern
corner of Florida along the St. Johns River Jacksonville Naval Air Station
and the Atlantic Ocean. The Jacksonville Fidelity National Financial
metro comprises five counties, covering
Fidelity National Information Services
a total of 2,636 square miles south of the
Georgia border. The area has a humid CSX
subtropical climate with mild winters and Mayo Clinic
hot summers. Mayport Naval Station
Blue Cross Blue Shield of Florida
Baptist Health System
Winn-Dixie
Bank of America Corp.
22M A RKET OV ERV I EW Zaxby’s sale-leaseback - University Blvd.
J AC K S ONVIL L E
Metro AIRPORTS
■ Jacksonville International, Jacksonville
The Jacksonville metro consists of Duval, Clay, St. Johns, Nassau and Baker counties. Executive, Herlong and Cecil
Duval is the most populous, with 896,900 people. With approximately 853,000
residents, Jacksonville is the largest city in the metro. More than 110,700 additional MAJOR ROADWAYS
people will reside in the metro over the next five years. ■ Interstates 10, 95 and 295
■ U.S. Highways 1, 17, 90 and 301
Infrastructure RAILS
■ Freight- Florida East Coast, CSX and Norfolk
Jacksonville’s access to road, rail, sea and air transportation has made it an intermodal Southern
hub for the Southeast. Along with several U.S. highways, three interstates serve ■ Passenger- Amtrak
Jacksonville: I-95 runs north and south, I-10 runs east and west, and I-295 acts as
a beltway around the city. Jacksonville International Airport is located 18 miles from PORTS
downtown and accommodates more than 5 million passengers annually. ■ JAXPORT
Jacksonville’s deepwater port JAXPORT is the largest in the Southeast and has THE JACKSONVILLE METRO IS:
terminals equipped to handle break bulk, container, bulk, automotive and refrigerated ■ 325 miles from Fort Lauderdale
cargo. The port also contains a terminal for cruise ships and offers local ferry service. ■ 345 miles from Atlanta
■ 350 miles from Miami
Rail transport along the coast is provided by Florida East Coast Railroad, with ■ 545 miles from New Orleans
connecting service available through CSX and Norfolk Southern
J AXP OR T Quic k Fac ts
C argo, cruis e and ferry facilities
S upports nearly 133,000 jobs
$26.9 billion annual economic impact
Three cargo terminals
8.2 million tons of cargo annually
183,200 embarking cruis e pas s engers
Ferry s ervice acros s S t. J ohns R iver
1,826 ves s el calls
23 Port of JacksonvilleZaxby’s sale-leaseback - University Blvd. MAR K E T OVE RVI E W
J AC K S ONVIL L E
Economy
Once rooted in its military bases, the commercial port and paper mills, the
Jacksonville economy has begun to diversify. The metro is home to three Fortune
500 companies: Fidelity National Information Services, Fidelity National Financial
and CSX.
The city has developed a large financial services sector, led by Bank of America,
Fidelity National and Citibank. The professional and business services sector
has also risen in importance, accounting for 16 percent of total employment.
In addition, Jacksonville has an emerging industrial base in medical products
research and manufacturing.
JAXPORT provides a $26.9 billion annual economic impact to the Jacksonville
metro. More than 8 million tons of cargo pass through the port each year and the
development of cruise ship service will promote further expansion. Facilities at
the port are being expanded to handle the larger ships that will pass through the
widened Panama Canal.
The military remains a large part of the economy, with two naval facilities and more
than 25,000 people employed locally. Many of the naval personnel who retire
from the military stay in the area because of its affordable housing and career
opportunities.
* Forecast
Sources: Marcus & Millichap Research Services; Jacksonville Port Authority; Bureau of Economic Analysis; Moody’s Analytics; U.S. Census Bureau
24M A RKET OV ERV I EW Zaxby’s sale-leaseback - University Blvd.
J AC K S ONVIL L E
Labor
Jacksonville has a large and well-trained employment base of 647,700 jobs, bolstered
by strong educational institutions and highly skilled military retirees. Employment is
projected to grow 2.0 percent annually over the next five years, exceeding the national
rate. During this time, all employment sectors except manufacturing are forecast to
expand.
The largest job segment is trade, transportation and utilities, which employs 21
percent of the workforce. Many of these workers are employed at Jacksonville
International Airport, JAXPORT and at local retailers. This segment is expected to post
0.9 percent annual growth over the coming five years. The professional and business
services, and education and health services sectors account for 16 percent and 15
percent of employment, respectively. Education and health services jobs are projected
to rise approximately 1.1 percent annually over the next five years as more services
are needed to fill the needs of the growing population. Professional and business
services will expand 4.5 annually during this time, with the generation of nearly 25,000
positions, which should support the demand for office space.
The growing construction sector is forecast to jump 6.1 percent annually throughout
2020. The expansion of the construction industry will pave the way for future growth
in the metro.
* Forecast
Sources: Marcus & Millichap Research Services; Jacksonville Port Authority; Bureau of Economic Analysis; Moody’s Analytics; U.S. Census Bureau
25Zaxby’s sale-leaseback - University Blvd. MAR K E T OVE RVI E W
J AC K S ONVIL L E
Employers
Many Jacksonville-area residents are connected to the Navy, either through employment or as a member of a Navy family. The area’s bases
are a major force in the local economy, with more than 25,000 on payroll. A large share of personnel exiting the Navy elect to remain in the
region, providing local companies with a steady stream of skilled workers, especially in electronics, technical maintenance and management.
Jacksonville is growing as a regional center for finance and business. Bank of America and Citibank each employ thousands of local
residents. The low cost of doing business in the metro attracts companies seeking an affordable locale to house back-office operations.
JAXPORT, railways and highways help make Jacksonville a premier center for transportation and trade services. In addition to trade, cruise
service is provided by Carnival Cruise Lines.
Many of the major employers are in healthcare, including St. Vincent’s Medical Center and the Baptist Health System. The Mayo Clinic has
a large presence in the area and UF Health Jacksonville, which is affiliated with the University of Florida Health Science Center, is a teaching
hospital that has one of the few particle beam facilities in the state for cancer treatment.
* Forecast
Sources: Marcus & Millichap Research Services; Jacksonville Port Authority; Bureau of Economic Analysis; Moody’s Analytics; U.S. Census Bureau
26M A RKET OV ERV I EW Zaxby’s sale-leaseback - University Blvd.
J AC K S ONVIL L E
Demographics
Population growth in the Jacksonville metro continues to outperform the nation. Since 2000, the population has expanded by 26 percent to
approximately 1.4 million residents. Population growth of 7.8 percent is expected over the next five years. A substantial portion of these new
residents will arrive in Jacksonville via in-migration.
At 38.0 years old, the median age in the metro is slightly above the U.S. median. The median household income of $53,700 per year is near
the national median, and roughly 19 percent of households have an annual income greater than $100,000. The median household income is
expected to reach $64,800 in 2019.
Income trends in the metro will support an increase in consumer expenditures. The metro remains a competitive alternative to South Florida’s
escalating cost of living. The median home price, at $199,300, is well below those in South Florida markets, allowing more than 66 percent of
area residents to own a home. Through 2020, incomes are expected to rise faster than home prices, increasing the metro’s affordability.
Education levels in the Jacksonville area are rising. Currently, 28 percent of residents age 25 and older have earned at least a bachelor’s degree,
compared with just 23 percent in 2000.
* Forecast
Sources: Marcus & Millichap Research Services; Jacksonville Port Authority; Bureau of Economic Analysis; Moody’s Analytics; U.S. Census Bureau
27Zaxby’s sale-leaseback - University Blvd. MAR K E T OVE RVI E W
J AC K S ONVIL L E
Quality of Life
In addition to warm weather and sunshine, the Jacksonville area offers many recreational events and cultural opportunities. Jacksonville’s
beach communities consist of Atlantic Beach, Neptune Beach and Jacksonville Beach along 50 miles of shoreline, offering sport fishing,
boating and water sport activities.
The area is home to the Professional Golfers Association, the World Golf Village and the World Golf Hall of Fame. The Association of Tennis
Professionals is also based in the area. Sports teams include the Jacksonville Suns, a minor league baseball team, and the Jacksonville
Jaguars of the NFL. Everbank Field hosts the TaxSlayer.com Gator Bowl, and the annual gridiron matchup between the University of Georgia
and the University of Florida.
Cultural opportunities include the Museum of Science & History, Cummer Museum of Art, Mandarin Museum & Historical Society and the
Museum of Contemporary Art Jacksonville. The symphony, theater, ballet and arts festivals, such as the Annual Jazz Festival, anchor a
packed social and cultural calendar.
Other sites of interest include the Jacksonville Zoo and the Jacksonville Landings, a mix of retail and restaurants along the St. Johns River
downtown.
* Forecast
Sources: Marcus & Millichap Research Services; Jacksonville Port Authority; Bureau of Economic Analysis; Moody’s Analytics; U.S. Census Bureau
28M A RKET OV ERV I EW Zaxby’s sale-leaseback - University Blvd.
POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
2010 Populationn 2016 Estimate
Total Population 12,578 72,247 170,094 $ 0 - $ 14,999 16.1% 17.2% 16.7%
2016 Populationn $ 15,000 - $24,999 11.9% 12.9% 13.1%
2016 Daytime Population 20,449 113,750 295,537 $ 25,000 - $34,999 14.7% 13.8% 13.2%
Total Population 12,993 75,365 177,662 $ 35,000 - $49,999 15.5% 14.8% 15.0%
2021 Populationn $ 50,000 - $74,999 20.8% 18.1% 18.2%
Total Population 12,924 76,874 183,905 $ 75,000 - $99,999 11.9% 9.7% 10.0%
HOUSEHOLDS 1 Miles 3 Miles 5 Miles $100,000 - $124,999 4.8% 5.8% 5.7%
Housing Units $125,000 - $149,999 1.9% 3.1% 3.0%
Total Housing Units 5,660 35,813 84,514 $150,000 - $200,000 1.4% 2.2% 2.5%
Occupied Housing Units 85.7% 88.5% 88.3% $200,000 to $249,999 0.5% 0.9% 0.9%
Vacant Housing Units 14.3% 11.5% 11.7% $250,000 + 0.7% 1.5% 1.8%
Housing Units by Tenure Average HH Income $53,076 $58,652 $60,561
Total Households in Tenure 4,849 31,688 74,630 Median HH Income $41,455 $40,798 $41,297
Owner Occupied Housing Units 2,658 16,899 35,485 Per Capita Income $20,485 $24,954 $26,181
Owner Occupied free and clear 34.7% 34.6% 32.8% POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Owner Occupied with a mortgage or loan 65.3% 65.4% 67.2% Age:
Renter Occupied Housing Units 2,191 14,789 39,144 Age 0 - 4 5.8% 6.7% 6.7%
EDUCATIONAL ATTAINMENT: 1 Miles 3 Miles 5 Miles Age 5 - 14 10.7% 11.2% 11.0%
Total Population Age 25+ 9,261 52,817 122,707 Age 15 - 19 5.2% 4.8% 5.0%
Grade K - 8 5.2% 2.9% 2.7% Age 20 - 24 5.9% 5.6% 6.3%
Grade 9 - 12 13.3% 8.8% 8.5% Age 25 - 34 14.9% 17.0% 19.4%
High School Graduate 32.8% 31.3% 29.6% Age 35 - 44 11.7% 12.9% 13.3%
Associates Degree 10.7% 8.9% 8.7% Age 45 - 54 12.9% 12.2% 11.8%
Bachelor's Degree 10.3% 15.7% 17.5% Age 55 - 64 13.4% 12.7% 11.7%
Graduate Degree 3.9% 8.0% 8.4% Age 65 - 74 10.1% 8.9% 8.3%
Some College, No Degree 20.7% 22.6% 23.1% Age 75 - 84 6.2% 5.1% 4.3%
No Schooling Completed 3.3% 1.9% 1.5% Age 85 + 3.4% 3.0% 2.3%
Population by Gender Median Age 41.5 38.4 36.0
Total Population 12,924 76,874 183,905
Total Households 4,861 32,853 78,439
Female Population 6,591 39,670 93,174
Male Population 6,333 37,205 90,731
29M A RKET OV ERV I EW Zaxby’s Sale-Leaseback - University Blvd.
Population Density Employment Density Average Household Income
Theme Low High Theme Low High Theme Low High
Low less than 55 Low less than 9 Low less than $29,000
Below Average 55 475 Below Average 9 96 Below Average $29,000 $48,500
Average 475 4100 Average 96 1025 Average $48,500 $80,000
Above Average 4100 35000 Above Average 1025 10875 Above Average $80,000 $132,000
High 35000 or more High 10875 or more High $132,500 or more
The number of people living in a given area per square mile. The number of people employed in a given area per square mile. Average income of all the people 15 years and older occupying a single
housing unit.
30Actual Photograph
exclusively listed
Exclusively listed by: Investment Sales:
Ethan Armentrout, PE, MBA
Associate
ATLANTA
Tel: (678) 808-2814
Cel: (404) 518-2470
OFFICES THROUGHOUT THE U.S. & CANADA ethan.armentrout@marcusmillichap.com
www.marcusmillichap.com License: GA 353676You can also read
