NOODLES & COMPANY NNN Investment 2455 Montebello Square Drive Colorado Springs, CO 80908 F 828 459 3066
EXECUTIVE SUMMARY PROPERTY Noodles & Company, a Delaware Corporation LOCATION 2455 Montebello Square Drive, Colorado Springs, CO 80908 SALES PRICE $1,960,000 CAPITALIZATION RATE 5.65% RENT (Option #1) (Option #2) (Option #3) Year 1-5 Years 6-10 Year 11-15 Years 16-20 Years 21-25 Years 26-30 Monthly $8,400 $9,240 $10,164 $11,181.33 $12,299 $13,528.67 Annual $100,800 $110,880 $121,968 $134,176 $147,588 $162,344 BUILDING SIZE 2,800 Square Feet constructed in early 2013. LAND PARCEL SIZE Approximately.785 Acres plus reciprocal access with the Chase Bank parcel PRIMARY LEASE TERM Approximately 10 year & two months remaining primary lease term. RENT ADJUSTMENT DATE Next scheduled adjustment is February 12, 2018. OPTION PERIODS Three five (5) year options with 10% fixed increases. LEASE TYPE NNN except landlord is responsible to maintain, repair, and replace the roof, the foundation, exterior walls, interior structural walls, and structural components of the building. 2
EXECUTIVE SUMMARY TENANT INFORMATION Headquartered in Broomfield, Colorado, Noodles & Company operates and franchises 486 restaurants in over 20 states as of the end of the second quarter of 2017 with annual revenues of approximately $460 to $470 million. The company has been publicly traded on the NASDAQ stock exchange since July 2013 under the NASDAQ symbol (NDLS) with a market capitalization of approximately $180 million as of September 23, 2017. Noodles & Company opened its first restaurant location in Cherry Creek, CO, in 1995. The neighborhood restaurant features made-to-order noodle entrees in a variety of American, Asian, and Mediterranean flavors, from penne pasta to chicken noodle soup. The chain s menu includes noodle and vegetable bowls, soups, and green salads with pasta. It also offers noodle-less dishes, such as mixed grill, sandwiches, and shrimp sauté. Noodles & Company is a fast-casual restaurant chain where globally inspired dishes come together to create a World Kitchen. Recognized by Parents Magazine as a Top Family Friendly Restaurant and Health Magazine as one of America s Healthiest Fast Food Restaurants, Noodles & Company is a restaurant where Japanese Pan Noodles rest comfortably next to Penne Rosa and Wisconsin Mac & Cheese, but where world flavors don t end at just noodles. Inspired by some of the world s most celebrated flavor combinations, Noodles & Company s menu offers soups, salads and shareables, too. Everything is made fresh to order, just as you like it, using quality ingredients. Dishes are delivered to the table allowing guests time to sit and relax or grab a quick bite. 3
EXECUTIVE SUMMARY COMMENTS The subject property is strategically located at the center of the Academy Boulevard Retail Corridor. This retail trade area houses approximately 80% of the retail in El Paso County and offers one of the highest concentrations of retail, restaurants, banking and hotels in the state. The Academy Plaza Neighborhood Shopping center is anchored by Super Target, Safeway, Ross Dress For Less, Chuck E. Cheese restaurant, Wells Fargo Bank and numerous other national retail tenants. Three other major retail centers surround the Noodles property which are anchored by Colorado Ski & Golf, Big Lot s, Big 5 Sporting Goods, and several national and local tenants. There is also a strong daytime population of employees from a number of major bank headquarters, multi-story office buildings, as well as numerous employees in the retail centers surrounding the property. The location is also surrounded by dense residential neighborhoods in all 4 directions that feature very upscale and favorable demographics. There are approximately 100,000 residents in a 3 mile radius of the site with average household incomes which exceed $76,000. The dense residential neighborhoods and strong daytime employee population with over 48,000 daytime employees which all create favorable coming home traffic patterns with traffic counts approach 50,000 vehicles per day on Academy Avenue which are some of the highest traffic counts in the City of Colorado Springs. The Noodles property is prominently featured near the intersection of North Academy & Montebello Drive which offers excellent visibility along this major retail corridor. The Noodles property also shares reciprocal ingress and egress with the adjacent Chase Bank property allowing customers very easy access from all directions into the Noodles property. 4
MONTEBELLO DRIVE WEST AERIAL VIEWS MONTEBELLO SQUARE DRIVE Retaining Walls Trash Retaining Wall Trash 6 Spaces 16 Spaces Not Included 14 Spaces Pond Monument Signs ACADEMY BLVD. (70,000+ VPD) Property Line Not Included For illustra ve purposes only, actual may vary. 5
MONTEBELLO DRIVE WEST AERIAL VIEWS SUBJECT PROPERTY MONTEBELLO SQUARE DRIVE ACADEMY BOULEVARD (70,00+ CPD) 6
AERIAL VIEWS BO CADEMY NORTH A FREEMONT ELEMENTARY SCHOOL NORTH UNION BOULEVARD EXECUTIVE SUMMARY D ULEVAR TO M AH DR IV E MONTEBELLO DRIVE WEST SUBJECT PROPERTY 7 77
AERIAL VIEWS SUBJECT PROPERTY Academy Plaza Shopping Center 2017 Demographics 1 Mile 2 Miles 5 Miles Population 13,119 104,767 270,681 Average HH Income $81,798 $78,529 $85,129 Households 5,610 43,840 108,635 8
TRADE AREA Chase Bank Wendy s Restaurant Mattress Firm & Liquor Store Colorado Ski and Golf Advance Auto and Retail Center Undergoing Redevelopment 9
TRADE AREA ACADEMY PLACE NEIGHBORHOOD SHOPPING CENTER Super Target Safeway Grocery Store Ross & Chuck E. Cheese Restaurant Wells Fargo Bank and AT&T Air Academy Credit Union Academy Plaza Office & Professional Building 10
TRADE AREA YMCA & Youth Sports Facility Great Western Bank Peoples Bank Emerald Plaza Office Building Texas T Bone Steakhouse Big Lots & Big 5 Sporting Goods 11
MAPS COLORADO SPRINGS MAP 61 Miles to Denver Direc ons: From Denver: Take I-25 South to Academy Boulevard Exit (150), turn le onto North Academy Boulevard, le on Montebello Drive then le on Montebello Square Drive. From DIA: Take E-470 Tollway, merge onto E-470 South, Merge onto I-25 South to Academy Boulevard Exit (150), turn le onto North Academy Boulevard, le on Montebello Drive then le on Montebello Square Drive. Academy Blvd Exit N Fort Carson 12
CITY OF COLORADO SPRINGS EL PASO COUNTY El Paso County lies in east central Colorado and encompasses more than 2,158 square miles. The natural physical beauty of the area, situated at the base of Pikes Peak and with an uninterrupted view of the Front Range, offers residents spectacular scenery. This scenery inspired Katharine Lee Bates to write the poem America the Beautiful after her visit here. El Paso County features a mild climate, boasting an average of 285 days of sunshine. With over 150,000 acres (230 square miles) of open space, El Paso County is a year-round sports paradise, offering hunting, fishing, camping, mountain climbing, hiking and soaring. In addition, County residents and visitors can enjoy equestrian and rodeo sports, golf, the United States Olympic Training Center, the Pikes Peak Center, and the World Ice Arena Hall to highlight a few. CITY OF COLORADO SPRINGS The Colorado Springs Metropolitan Area (CSMA), encompassing El Paso County and Teller County, has a population of nearly 650,000. There is a labor force of over 3 million people within an hour radius of the city. Colorado Springs consists of 27 Fortune 500 companies and off ers an extraordinary quality of life with a cost of living that is 70% of coastal communities. In addition, there are numerous recreational parks and outdoor attractions including Pikes Peak National Park, Garden of the Gods, The Air Force Academy, Golden Gate Canyon State Park, Cheyenne Mountain State Park, the Royal Gorge, and much more. Founded in 1871, Colorado Springs, Colorado s second largest city has evolved from a quaint, Victorian spa resort to a sophisticated city, with a charming small town ambiance. With over 50 attractions, Colorado Springs and the Pikes Peak region are the gateway to Southern Colorado s Outdoor Adventure Play Land. Located 60 miles south of Denver s International Airport and 1 and 1/2 hours east of world-class skiing, Colorado Springs is a vacation Mecca, drawing over 6 million visitors annually. The city s average gross income from tourism is near $1 billion, providing a substantial boost to the construction and retail industries. ECONOMY/EMPLOYMENT The city boasts a highly educated and industrious workforce that has been ranked as one of America s 30 smartest cities, off ering employers a diverse, highly educated labor pool, while the median age is only 33. Colorado Springs was recently ranked by Forbes as the #12 best place for business and careers, beating cities like San Diego, Los Angeles, Boston and New York City. The Colorado Springs economy thrives on the military installations in the area, as well as on the aerospace industries, electronics industries and tourism. The military employs one fifth of the work force in the city while infusing over $2.5 billion into the local economy every year. Colorado Springs features numerous military bases including: Fort Carson, The U.S. Air Force Academy, Fort Peterson Air Force Base (AFB), Schriever AFB, and the North American Air Defense Command (NORAD). Colorado Springs is also home to US Northern Command (USNORTHCOM) located at Peterson AFB, a major driver of government contract work. Additionally, Colorado Springs is a Base Realignment and Closure (BRAC) benefi ciary city. Fort Carson received thousands of new soldiers and families under this act and has been rapidly expanding, adding over 11,000 full-time soldiers since 2005. The continued growth of Fort Carson is a positive development for the permanent population growth of the area. Fort Carson, as well as the Air Force Academy and NORAD have helped push annualized growth within the city. Colorado Springs is also home to the U.S. Olympic Committee headquarters, the Olympic Training Center, almost 40 National governing bodies and organizations and the center for space research within the United States. The city is the site of 13
CITY OF COLORADO SPRINGS the Combined Services Space Center and the Consolidated Space Operations Center, which are involved in the Strategic Defense Initiative and handle military missions of the Space Shuttle. CENTRAL BUSINESS DISTRICT The Central Business District (CBD) employs nearly 150,000 people and is home to nearly 120,000 individuals within a 3-mile radius. With immediate access to Interstate 25, Highway 24, and other major roadways, the CBD offers convenient access to the entire city, as well as Denver, Pueblo, and the entire Front Range. The Central Business District has unrivaled amenities and serves as the region s cultural foundation. With several hundred restaurants, shops, and nightclubs in addition to museums, festivals, live theatre, parks, trails, and public spaces, the CBD is continuing to attract people from across the country. The Central Business District is the most competitive and stable submarket in Colorado Springs. Other area attractions include: Colorado College With over 2,000 students, this private liberal arts college was founded in 1874 by General William Palmer. This 90 acre campus is located in the northern part of the CBD. The Broadmoor Nestled at the base of the Foothillsand only 4 miles southwest, is The Broadmoor. This 3,000-acre resort has over 740 rooms, 18 restaurants and cafes, over 185,000 SF of meeting and event space, 3 golf courses, and a world class spa. It is consistently one of the top rated hotels in the nation, with 2010 marking the 50th consecutive year The Broadmoor has achieved Forbes Five-Star rating, the only property to ever do so. The Broadmoor is also the longestrunning consecutive winner of AAA s Five-Diamond award. The Broadmoor East Golf Course hosted the 2011 US Women s Open which drew nearly 150,000 spectators and generated an economic impact of over $25 million to the City of Colorado Springs. The 2008 US Senior Open was also held at the Broadmoor. Additionally, their tennis facilities were recently ranked by Tennis Magazine as the 3rd best in the nation. Garden of the Gods This public park featuring red sandstone rock formations ideal for hiking is one of the city s most renowned landmarks with over 3 million visitors annually. Wyndham Grand Hotel The Mining Exchange Complex is the home to the new, 119-room Wyndham Grand Hotel. The Wyndham Grand Hotel opened it s doors fall 2011, the three building, 135,000 SF hotel represents a $20 million value and attracts more tourists and conferences to the downtown area. 14
F 828 459 3066 7486 La Jolla Boulevard, Suite 173 La Jolla, California 92037