ABSOLUTE NNN GROUND/FEE SIMPLE Ideal Hotel Area - Surrounded by Multiple Hotel Brand 2400 Yale Blvd SE, Albuquerque, NM COLLIERS INTERNATIONAL 3 PARK PLAZA, SUITE 1200 IRVINE, CA 92814 SNYDER/CARLTON TEAM
TABLE OF CONTENTS Investment Overview 05 Lease Summary 06 Investment Highlights 08 Aerial Overview 10 Tenant Overview 14 Proven Tenancy Over A Decade of Successful Operations Perfect Location Next to ABQ Airport & Kirtland AFB Demographics Confidentiality Agreement 18 20 For More Information Contact: Eric Carlton Senior Vice President License No. 01809955 949.724.5561 eric.carlton@colliers.com Broker of Record: Tom Jones Senior Vice President License No. 37218 505.880.7063 tom.jones@colliers.com Jereme Snyder Executive Vice President License No. 01360233 949.724.5552 jereme.snyder@colliers.com Bob Feinberg Senior Vice President License No. 9916 505.880.7060 bob.feinberg@colliers.com John Sharpe Senior Associate License No. 01800769 949.724.5546 john.sharpe@colliers.com SNYDER/CARLTON TEAM - WWW.THENNNETWORK.COM 3 PARK PLAZA, SUITE 1200 IRVINE, CA 92814
INVESTMENT OVERVIEW Property Summary We are pleased to offer to qualified investors a unique absolute NNN net lease investment. Comprised of two separate buildings on one parcel (2.99 acres), this investment offers investors highly dependable, long-term passive income with fixed rental escalations, providing strong inflation protection. Best Western is a 20,547 square foot, 3 story economy hotel located in the rear of the property. Best Western s lease expires in 2058 with no option periods (ground lease only). The second building is a Village Inn casual dining restaurant, located along Yale Blvd, on an absolute NNN (land and building) lease that also expires in 2058 with zero option periods. The next rental increase take place in April 2018. Best Western operates about 4,100 hotels and motels throughout the world, and operates 2,160 hotels in North America. Best Western is one of the most recognized and utilized hotel brands in the world. Village Inn is a casual dining restaurant with roughly 200 locations in about 15 states. The parent company, American Blue Ribbon Holdings, owns brands such as Baker s Square, O Charley s, and Ninety Nine. The property, located along Yale Blvd, is in very close proximity to the Albuquerque International Sunport and Kirtland Air Force Base, enjoying constant demand. The property is located between Gibson Blvd SE and Sunport Blvd, just off the I-25, and is adjacent to the Airport Business Park. This is a unique opportunity to purchase an irreplaceable location with low downside risk, strong long-term upside, and constant passive cash flow with fixed rental escalations, backed by proven brands. List Price $8,000,000 NOI (Best Western) $117,542.04 NOI (Village Inn) $181,600 Land Size 2.99 Acres Annual Rent $299,142.04 Operating Expense Taxes Insurance CAM NNN NNN NNN Net Operating Income $299,142.04 Lease Commencement March 2, 1982 Lease Expiration September 30, 2058 Term Remaining on Ground Lease* Base Ground Rent Pricing Summary Operating Expense Data Notes: Includes Right of First Refusal 2.99 Acres Consists of One Parcel Village Inn is Fee Simple (Land and Building) Ground Lease Abstract (Village Inn-Best Western) Ground Rent Adjustment 10/01/2033* *Buyer (LL) Will Control Ground Rent (Owns same parcel) **Results in $11,000 NOI Increase to LL 41+ Years $12,000.00 Annually $1000.00 Annually BEST WESTERN INN & SUITES P. 4 BEST WESTERN INN & SUITES P. 5
LEASE SUMMARY LEASE ABSTRACT LEASE ABSTRACT Tenant Trade Name Best Western Tenant Trade Name Village Inn Lease Commencement January 10, 1979 Lease Expiration September 30, 2058 Lease Commencement March 01, 1982 Lease Expiration March 31, 2023 Lease Term 75 Years Lease Term 41 Years Term Remaining On Lease 41 Years Term Remaining On Lease 6+ Years Base Rent $117,542.04 Annual Rent PSF $5.63 Base Rent $181,600 Annual Rent PSF $37.73 Rental Adjustments Option Periods Lease Type Roof And Structure Annual CPI Next Increase: 01/01/2018 2033: 3% Annual Increases None NNN Ground Lease Tenant Responsible Parcel Details Building Area 27,122 SF Land Area 2.99 Acres (130,235 SF) Parcel 101605502738820214 Year Built/Renovated 1975/2004 Rental Adjustments 04/01/2018 - $212,960 Option Periods Lease Type Roof And Structure 2-5 Yr. Options 04/01/2023 - $234,256 04/01/2028 - $257,681 Absolute NNN Lease Tenant Responsible Parcel Details Building Area 5,131 SF Land Area 2.99 Acres (130,235 SF) Parcel 101605502738820214 Construction Wood Frame BEST WESTERN INN & SUITES P. 6 BEST WESTERN INN & SUITES P. 7
INVESTMENT HIGHLIGHTS PASSIVE INVESTMENT Absolute NNN Lease Structure - Zero Landlord Responsibilities Long-Term Leases - Expiration in 2058 with Zero Options Best Western: CPI Increases - Village Inn: 10% Increase in April 2018 Proven Tenancy - Over A Decade of Successful Operations Free and Clear of Existing Debt - Unencumbered Property PROVEN BRANDS Best Western: One of the Most Recognized Hotel Brands in the World 4,100 Locations Through World - Approximately 2,160 In North America Over $6 Billion in Revenue - Over 1,300 Employees - Headquartered in AZ Village Inn: Over 212 Locations Across 15 States - Successful Casual Dining Concept Wholly Owned Subsidiary of American Blue Ribbon Holdings - Successful Operator of Casual Dining Retaurant Concepts like O Charleys and Baker s Square BEST WESTERN INN & SUITES P. 8 BEST WESTERN INN & SUITES P. 9
YALE BLVD. SE 29,501 CPD AERIAL OVERVIEW UNM STADIUM PUERTO DEL SOL GOLF COURSE GIBSON BLVD. SE 33,943 CPD EXCELLENT LOCATION 2.79 Acres on Yale Blvd - Perfect Location Next to ABQ Airport & Kirtland AFB Consistent Traveler and Consumer Demand Due to Location Surrounded by Retailers such as Waffle House, FuddRuckers, Applebee s, IHOP, Wells Fargo, Buffalo Wild Wings and Chili s UNIVERSITY BLVD. ALBUQUERQUE INTERNATIONAL SUNPORT Ideal Hotel Area - Surrounded by Multiple Hotel Brands - Low Downside Risk IDEAL 1031 EXCHANGE OPPORTUNITY Low Downside Risk - Proven, Successful Tenancy - Ideal Location Absolute NNN Leases - Passive Income - One Parcel (2.79 Acres) with 2 Tenants OFFICE COMPLEX Lease Expiration in 2058 - Long-Term Income Stream - No Option Periods Land and Building - Can Depreciate Village Inn Building - Infill Location Worldwide Proven Brands - Excellent Staying Power Adjacent to ABQ Airports BEST WESTERN INN & SUITES P. 10 BEST WESTERN INN & SUITES P. 11
AERIAL OVERVIEW 25 CORONADO CENTER 40 181,600 CPD 40 WEST MESA BRIDGE BLVD. SW ALBUQUERQUE COUNTRY CLUB ALBUQUERQUE BIOPARK ZOO BROADWAY BLVD. SE 25 101,298 CPD YALE BLVD. SE 29,501 CPD WINROCK SHOPPING CENTER CENTRAL AVE. 35,609 CPD GIBSON BLVD. SE 33,943 CPD KIRTLAN AFB SOUTH VALLEY ALBUQUERQUE INTERNATIONAL SUNPORT BEST WESTERN INN & SUITES P. 12 BEST WESTERN INN & SUITES P. 13
TENANT OVERVIEW Best Western Hotels & Resorts Best Western Hotels & Resorts, headquartered in Phoenix, Ariz., is a privately held hotel brand with a global network of 4,100 hotels in more than 100 countries and territories worldwide. Best Western offers seven types of hotels to suit the needs of guests for any travel occasion: Best Western, Best Western Plus, Vīb, Best Western Premier, GlōSM Best Western Executive Residency and BW Premier CollectionSM. Recognized for Excellence Best Western Ranked Number One Midscale Hotel, 2014 Business Travel News Chain Survey. Best Western Plus Ranked Number One Upper Midscale Hotel, 2014 & 2015 Business Travel News Chain Survey. Best Western Named AAA/CAA Partner of the Year since 2008. bestwestern.com Named Best Hotel Website by Compuware 2011-2015. Best Western Named Genius In Digital Know - How by L2 Hotels Digital Index. Best Western Rewards Voted Top Three Best Hotel Loyalty Program by U.S. News & World Report and J.D. Power & Associates. Best Western Rewards received American Express Loyalty Award for Excellence in 2014. More than 1,800 Best Western hotels globally received TripAdvisor Certificate of Excellence awards in 2015. Albuquerque Hotel Overview The Albuquerque International Sunport (Airport) is right down the street from the Albuquerque hotel and free airport shuttle service is offered daily. The Kirtland Air Force Base is also nearby, as is Cutter Aviation and the University of New Mexico. Pets are allowed at this airport property and guests are treated to a free full hot breakfast daily. The buffet spread includes piping hot waffles, eggs, sausage, endless sweet pastries and fruits, hot and cold cereals, yogurt, chilled juices and 100% Arabica coffee. The Albuquerque hotel is close to all major hospitals, the Pit Arena, Old Town and downtown. Business travelers in town with Sandia National Labs and the Presbyterian Hospital enjoy the convenience of having everything so close including access to those red eye flights. The Cancer Center, Greyhound Bus Station, UNM Lobo Club and Pit basketball are all just a short drive away. In Close Proximity 4,100+ Hotels Over 100 Countries Best Western Plus Ranked #1 Upper Midscale Hotel 2014 & 2015 Business Travel News Chain Survey ABQ International Sunport Airport ~ 5 Minutes ~ The Kirtlan Air Force Base ~ 7 Minutes ~ The University of New Mexico ~ 7 Minutes ~ Presbyterian Hospital ~ 8 Minutes ~ Pit Arena ~ 5 Minutes ~ Downtown New Mexico ~ 12 Minutes~ BEST WESTERN INN & SUITES P. 14 BEST WESTERN INN & SUITES P. 15
TENANT OVERVIEW Village Inn Village Inn is a casual dining restaurant chain in the U.S. Its restaurants are known for their breakfast menu items, including buttermilk pancakes, skillets, crepes, omelettes, and eggs. Also, they feature a variety of salads, sandwiches, burgers, melts and dinner items. Their pies have won numerous awards from the American Pie Council (APC). ~ Over 212 Locations Across 15 States - Successful Casual Dining Concept ~ As of September 2015, Village Inn operates 212 restaurants in these states: Alaska, Arizona, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, New Mexico, North Dakota, Oklahoma, Oregon, Texas, Utah, Virginia, Washington, Wyoming and the territory of Guam. Village Inn s parent company, American Blue Ribbon Holdings, is based in Nashville, Tennessee. American Blue Ribbon Holdings American Blue Ribbon Holdings is the eighth largest Full Service Restaurant holding company in the United States. American Blue Ribbon Holdings was established in Denver in 2009 and is now headquartered in Nashville, TN. CEO Hazem Ouf specializes in finding, buying, and building restaurant brands that have deep roots in their communities but may have lost their way, their sense of what once made them fixtures on the proverbial American town square. ABRH leverages management expertise and investor insight to execute a very clear corporate philosophy: take what is real and true about each of their brands and rediscover it, enhance it and burnish it to the point of a memorable guest experience. Village Inn Locations BEST WESTERN INN & SUITES P. 16 BEST WESTERN INN & SUITES P. 17
AREA OVERVIEW City of Albuquerque New Mexico Albuquerque is located in the expanding Sunbelt part of the United States and Interstate 40 and Interstate 25. Albuquerque and has a population of approximately 680,000, or roughly 75 percent of all residents in the Albuquerque metro area. More than half of the population of the metro lives within the Albuquerque city limits. The city, which was founded more than 300 years ago, is rich in history and culture but also has the dynamism of a modern, growing city. Several large public and private employers provide the engines for growth in the area. Economy Albuquerque lies at the center of the New Mexico Technology Corridor, a concentration of high-tech private companies and government institutions along the Rio Grande. Larger institutions whose employees contribute to the population are numerous and include Sandia National Laboratories, Kirtland Air Force Base, and the attendant contracting companies which bring highly educated workers to the region. Employment The local labor force consists of nearly 400,000 workers. The largest employment sector is government, which is supported by the largest employer in the metro area, Kirtland Air Force Base. The base employs over 23,000 workers, including 3,400 civil service workers and 12,500 contractors. The base, along with mission partners, the Department of Energy and Sandia National Laboratories, have annual economic impact on the Albuquerque area of more than $4 billion. Government employment in the Albuquerque MSA accounts for nearly one in every four jobs. Other large government employers include the Albuquerque Public Schools (14,800 workers), City of Albuquerque (5,500), State of New Mexico (4,950) and Bernalillo County (2,600). BEST WESTERN INN & SUITES P. 18 BEST WESTERN INN & SUITES P. 19
DEMOGRAPHICS Over 67,150 Residents within a 3-Mile Radius Over 29,860 Households within a 3-Mile Radius $$ Households Income of $51,677 within a 3-Mile Radius 7,864+ Businesses within a 3-Mile Radius Population 1-MILE 3-MILE 5-MILE Households 1-MILE 3-MILE 5-MILE Income 1-MILE 3-MILE 5-MILE Business Facts 1-MILE 3-MILE 5-MILE Estimated Population (2016) 7,734 67,150 187,703 Estimated Households (2016) 3,082 29,860 78,230 Avg. Household Income (2016) $39,937 $51,677 $50,162 Total # of Businesses (2016) 473 7,864 16,583 Projected Population (2021) 7,873 67,781 190,272 Projected Households (2021) 3,136 30,133 79,320 Median Household Income (2016) $20,579 $31,088 $33,148 Total # of Employees (2021) 6,199 112,306 203,901 BEST WESTERN INN & SUITES P. 20 BEST WESTERN INN & SUITES P. 21
CONFIDENTIALITY AGREEMENT For More Information Contact: This Offering Memorandum contains select information pertaining to the business and affairs of Best Western, Albuquerque, NM It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers, you agree: 1. The Offering Memorandum and its contents are confidential; Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of Best Western Albuquerque, NM or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. Eric Carlton Senior Vice President License No. 01809955 949.724.5561 eric.carlton@colliers.com Tom Jones Senior Vice President License No. 37218 505.880.7063 tom.jones@colliers.com Jereme Snyder Executive Vice President License No. 01360233 949.724.5552 jereme.snyder@colliers.com Bob Feinberg Senior Vice President License No. 9916 505.880.7060 bob.feinberg@colliers.com John Sharpe Senior Associate License No. 01800769 949.724.5546 john.sharpe@colliers.com 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92814 Snyder/Carlton Team Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s) 2015. All rights reserved BEST WESTERN INN & SUITES P. 22 BEST WESTERN INN & SUITES P. 23