PIZZA HUT & WINGSTREET NNN Investment 257 South Marschall Road Shakopee, Minnesota 55379 7486 La Jolla Boulevard, Suite 173 La Jolla, California 92037
EXECUTIVE SUMMARY PROPERTY Pizza Hut & WingStreet Restaurant LOCATION 257 South Marschall Road, Shakopee, Minnesota 55379 SALES PRICE $1,525,000 CAPITALIZATION RATE 5.25% RENT Year 1-5 Years 6-10 Year 11-15 Years 16-20 Monthly $6,667 $7,333 $8,067 $8,873 Annual $80,000 $88,000 $96,800 $106,480 BUILDING SIZE Large 2,720 square feet contemporary building that was constructed in approximately 1977. LAND PARCEL SIZE Approximately 29,550 square feet with plentiful parking. PRIMARY LEASE TERM & OPTION PERIODS New 20 year lease term commencing July 1, 2018 with four additional 5 year options to extend at the same terms and conditions. RENTAL INCREASES 10% rent increases every 5 years including options. 2 7486 La Jolla Boulevard, Suite 173, La Jolla, California 92037
EXECUTIVE SUMMARY TENANT INFORMATION MUY Pizza Minnesota LLC is a Pizza Hut franchisee who currently operates 59 Pizza Hut restaurants throughout the state of Minnesota and Iowa that was founded in 2013. Prior to MUY Pizza Minnesota LLC operating the restaurants they were all operated by another Pizza Hut Franchisee for 20+ years. MUY Pizza Minnesota is part of the MUY Pizza Companies who operate another 218 Pizza Hut restaurants primarily in Houston, San Antonio, and the South Texas market to the Mexican border. MUY Pizza also operates another 90 Pizza Hut Restaurants in 5 Southeast states. Collectively, the 3 MUY Pizza Hut companies own and operate 364 Pizza Hut restaurants and are one of the largest Pizza Hut franchisees in America. The MUY companies also own & operate 79 Taco Bell restaurants in 6 north east states, and 312 Wendy s restaurants in Texas, New York, Ohio and Kentucky. The collective MUY Companies own & operate 754 restaurants and were recently recognized as the 5th largest franchisee in America with revenues approaching $1 billion. Please visit the company website at www.muycompanies.com for additional information on the company. 3
EXECUTIVE SUMMARY COMMENTS The Shakopee Pizza Hut is a very seasoned restaurant that has successfully operated in the location since 1977 with over 40 years of success operations. The restaurant is strategically located in the heart of Shakopee retail trade area which is also adjacent to the majority of Shakopee s residential population, Valley Faire Amusement Park, Canterbury Park, and the major industrial parks in North Shakopee. Shakopee has experienced tremendous population growth doubling in size in the last 15 years with very favorable demographics with average household incomes approach $80,000 per year. Shakopee is also a leader in growth in the industrial market as a number of large employers have clustered in several large North Shakopee industrial parks including an Amazon fulfillment center, Shutterfly, Seagate Technologies, and numerous other industrial and distribution employers. The large number of daytime employees in the trade area generate a strong lunch and after work business at the Pizza Hut location. nearly 600 apartments, 100 townhouses and senior housing, and a boutique hotel which will further strengthen the local trade area. Shakopee is a suburb of the Minneapolis/St. Paul Twin Cities market with approximately 40,000 residents which is located approximately 30 minutes Southwest of downtown Minneapolis on the south side of the Minnesota river. Shakopee is also the county seat of Scott County and houses with all of the Scott County administrative facilities and offices. Shakopee is a member of the Minneapolis-St. Paul metropolitan statistical area - the sixteenth largest in the nation. Starting in 1995 Shakopee began to experience explosive population growth as a bedroom community to the Twin City MSA which has lead to a number of new retail and commercial developments throughout the city. Pizza Hut is also the closest restaurant to the Valleyfair amusement park which is a 125 acre amusement park with over 70 rides and seven acre Soak City water park which draws a large number of visitors during summer months. Pizza Hut receives a considerable amount of dinner and late-night business from Valleyfair visitors. Pizza Hut also receives a considerable amount of dinner and late-night business from Canterbury Park horse racing facility on weekends when the track is open. Canterbury Park has partnered with a local developer for a $400 million project that will eventually include 4 7486 La Jolla Boulevard, Suite 173, La Jolla, California 92037
ROCHESTER PIZZA HUT PHOTOS 5 7486 La Jolla Boulevard, Suite 173, La Jolla, California 92037
AERIAL VIEWS LAND SURVEY SUBJECT PROPERTY 2017 Demographics 1 Mile 2 Miles 5 Miles Population 13,051 35,852 77,843 Average HH Income $77,073 $76,453 $86,794 Total Households 4,539 12,488 27,184 6 7486 La Jolla Boulevard, Suite 173, La Jolla, California 92037
AERIAL VIEWS 1st Ave. E. Marschall Rd. SUBJECT PROPERTY 4th Ave. E. 7
AERIAL VIEWS SUBJECT PROPERTY 169 AMAZON FULFILLMENT WEST JUNIOR HIGH SCHOOL SHAKOPEE CROSSROADS SHOPPING CENTER SHAKOPEE VALLEY MARKETPLACE 169 NORTH SHAKOPEE INDUSTRIAL PARKS CANTERBURY PARK DOWNTOWN SHAKOPEE RESIDENTIAL NEIGHBORHOODS 8
MAPS SUBJECT PROPERTY SUBJECT PROPERTY 9
TRADE AREA 5 West Restaurant & 2 Hotels McDonalds Restaurant Burger King Restaurant Wells Fargo Bank Office Building O Reilly Auto Parts Napa Auto Parts 10
TRADE AREA Shakopee Crossroads Shopping Center Cub Foods Wells Fargo Bank Taco Bell Restaurant Applebee s Restaurant Arby s Restaurant Retail Shops 11
TRADE AREA Shakopee Valley Marketplace Super Target Kohl s Office Max & Party City Auto Zone & Shops Building St. Francis Regional Medical Facility Shakopee Municipal Offices 12
TRADE AREA Office Building Office Building Valley View Center East Retail Center Eagle Crossing Shopping Center Shakopee City Hall & Municipal Office 13
CITY OF SHAKOPEE Employment by Industry in Shakopee Employment in Shapkopee Source: Quarterly Census of Employment and Wages, Minnesota Department of Employment and Economic Development 14 7486 La Jolla Boulevard, Suite 173, La Jolla, California 92037
F 828 459 3066 7486 La Jolla Boulevard, Suite 173 La Jolla, California 92037