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Available Individually or as part of a three property portfolio:Dayton, Ohio – Springboro (Cincinnati MSA), Ohio – Toledo, Ohio
Offering Memorandum
PAPA JOHN'S - TOLEDO OHPAPA JOHN'S - TOLEDO OH2531 Key St • Toledo, OH 436142531 Key St • Toledo, OH 43614
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap 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 Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
PAPA JOHN'S - TOLEDO OHToledo, OHACT ID ZAA0360068
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N E T L E A S E D D I S C L A I M E R
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.
As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.
Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.
Like all 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 performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
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OFFERING SUMMARY
Price $216,373Net Operating Income $21,638Capitalization Rate – Current 10.0%Price / SF $149.22Rent / SF $18.21Lease Type Modified GrossGross Leasable Area 1,450 SFYear Built / Renovated 1970 / 2013Lot Size 0.24 acre(s)
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EXECUTIVE SUMMARY
OFFERING SUMMARY
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FINANCING
Down Payment All CashNet Cash Flow 10.00% / $21,638Cash on Cash Return 10.00%Total Return 10.00% / $21,638
PAPA JOHN'S - TOLEDO OH
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PAPA JOHN'S - TOLEDO OH
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OFFERING SUMMARY
MAJOR REGIONAL EMPLOYERS
EMPLOYER # OF EMPLOYEES *
ProMedica Health Systems 14,465
Mercy Health 8,827
University of Toledo 6,662
Whirlpool Corporation 6,182
FCA US LLC 6,159
Bowling Green State University 3,399
Sauder 2,850
St. Rita's Medical Center 2,492
Marathon Petroleum Co., LLC 2,200
Cooper Tire & Rubber Co. 2,000
Magna International 2.000
General Motors Powertrain 1,971
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2018 Estimate Pop 11,014 66,119 163,248
2010 Census Pop 11,064 66,086 162,178
2018 Estimate HH 4,924 29,684 67,320
2010 Census HH 5,029 30,142 67,806
Median HH Income $53,308 $50,091 $52,408
Per Capita Income $29,901 $30,014 $30,261
Average HH Income $66,668 $66,620 $72,402
*
PAPA JOHN'S - TOLEDO OH
OFFERING SUMMARY
§ Net Lease - Tenant Pays Insurance and Utilities
§ One 5-Year Renewal Option with 9 Percent Rent Increase
§ Occupied Since 2011
§ Long Term Operator with 130+ Locations
§ 2.6 Years Remaining on First Five-Year Extension
INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to exclusively present for sale a single-tenant net-leased Papa John's located at 2531 Key Street in Toledo, Ohio. The investment opportunity is a single-net (N) lease which has over two years of term remaining. The lease commenced on November 1, 2011 and the first option was exercised on November 1, 2016. The tenant pays for Insurance and utilities. The current NOI is $21,637. The tenant has one five-year option remaining with a 9% rent increase.
Retail tenants in the immediate area include Dollar General, Ohio Bureau of Motor Vehicles, Toledo Police Federal Credit Union, Huntington Bank and several small shopping strips. The subject property is situated in close proximity to Glendale Feilbach Elementary School, St. Patrick of Heatherdowns School, Lucas County Recreation Center, and Fairfield Elementary School. The one-mile population is 11,014 with an average household income of $66,668.
INVESTMENT OVERVIEW
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TENANT PROFILES
PAPA JOHN'S - TOLEDO OH
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Toledo-Bajco Ohio a Bajco Global Management company
Papa John’s International, Inc., operates and franchises pizza delivery and carryout restaurants
Papa John’s began operations in 1984. At December 30, 2018, there were 5,303 Papa John’s
restaurants in operation, consisting of 645 Company-owned and 4,658 franchised restaurants
operating domestically in all 50 states and in 46 countries and territories.
General Information
Tenant Name Toledo-Bajco Ohio a Bajco Global Management company
Website https://www.papajohns.com
Parent Company Papa John's International, Inc.
Headquartered Louisville, KY
Rentable Square Feet 1,450 SF
Percentage of RBA 100.00%
Lease Commencement 11/1/2011
Lease Expiration 10/31/2021
No. of Locations 5,303
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CLOSE PROXIMITY TO:
2531 Key St, Toledo, OH 43614
§ 27,750 Traffic Count (ADV) (Heatherdowns Blvd)
§ 66,119 / 163,248 3-Mile / 5-Mile Population§ $50,091 / $52,408 3-Mile / 5-Mile Median
Household Income§ Multiple Points of Ingress and Egress
The Papa John's Location at 2531 Key Street in Toledo, Ohio consist of a 1,450-square foot single-story building located on a 0.24 acre lot near the intersection of Heatherdowns Blvd. and Eastgate Rd.
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEPAPA JOHN'S - TOLEDO OH
PRICING AND VALUATION MATRIX
PROPERTY NAME
PAPA JOHN'S - TOLEDO OH
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LOCATION OVERVIEW
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2531 Key St, Toledo, OH 43614
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEPAPA JOHN'S - TOLEDO OH
PRICING AND VALUATION MATRIX
PROPERTY NAME
PAPA JOHN'S - TOLEDO OH
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REGIONAL AND LOCAL MAP
AERIAL PHOTO
PAPA JOHN'S - TOLEDO OH
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PROPERTY SUMMARY
OFFERING SUMMARY
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NOTES
PAPA JOHN'S - TOLEDO OH
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OFFERING SUMMARY
MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.
We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.
Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues to the benefit of our clients.
National platform operating
within the firm’s brokerage offices
$6.24 billion billion total
national volume in 2018
Access to more capital sources than any other firm in the industry
Optimum financing solutions to enhance value
Our ability to enhance buyer pool by expanding finance options
Our ability to enhance seller control
• Through buyer qualification support
• Our ability to manage buyers finance expectations
• Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings
• By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file
WHY MMCC?
Closed 1,678 debt and equity
financings in 2018
ACQUISITION FINANCING
PAPA JOHN'S - TOLEDO OH
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MARKET OVERVIEW
OVERVIEWTOLEDO
PORT ACTIVITY The Port of Toledo houses two 240-ton cranes, the largest crane facilities of any Great Lakes port. Roughly 8.8 million tons of cargo are shipped annually.
LOWER COST OF LIVINGToledo’s home prices are below larger Ohio metros, allowing 63 percent of households to own a home, similar to the national rate.
LARGE EMPLOYERS BOLSTER PAYROLLSLocal health systems are hiring at a metro-leading pace, with auto manufacturers and suppliers expanding facilities.
The Toledo metro is situated in northwest Ohio and contains Lucas,
Wood and Fulton counties. Portions of the metro border Michigan and
Lake Erie, with Detroit roughly an hour drive north and Cleveland two
hours east. The city of Toledo accounts for nearly half of the metro’s total
population of 611,300, with 285,000 citizens. Metro’s population is
forecast to rise slowly over the next five years.
§ Universities and hospital systems drive Toledo’s employment growth. ProMedica, the University of Toledo, MercyHealth and Bowling Green State University are the metro’s largest employers.
§ The metro remains a hub for auto-related production. GM runs Toledo Transmission, a 2 million-square-foot plant. A Fiat Chrysler plant assembles Jeep Wranglers and producer Dana Holdings Corp. recently constructed a 300,000-square-foot manufacturing facility.
§ In addition to general cargo, the Port of Toledo ships Iron ore, coal, limestone, grain and liquid bulk. § Other employment segments that provide a host of jobs include transportation and retail sales.
DEMOGRAPHICS
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ECONOMY
METRO HIGHLIGHTS
* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
PAPA JOHN'S - TOLEDO OH
611K2018
POPULATION:
243K2018
HOUSEHOLDS:
37.62018
MEDIAN AGE:
$50,4002018 MEDIAN
HOUSEHOLD INCOME:
U.S. Median:
38.0U.S. Median:
$58,8001.9%
Growth2018-2023*:
1.1%
Growth2018-2023*:
MARKETING TEAM
Source: © 2015 Experian
PROPERTY NAME
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CREATED ON APRIL 4, 2019
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEPAPA JOHN'S - TOLEDO OH
PRICING AND VALUATION MATRIX
PROPERTY NAME
PAPA JOHN'S - TOLEDO OH
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DEMOGRAPHICS
1 Miles 3 Miles 5 Miles
POPULATION2023 Projection 11,031 66,226 166,357
2018 Estimate 11,014 66,119 163,248
2010 Census 11,064 66,086 162,178
2000 Census 11,100 68,229 158,775
INCOME
Average $66,668 $66,620 $72,402
Median $53,308 $50,091 $52,408
Per Capita $29,901 $30,014 $30,261
HOUSEHOLDS
2023 Projection 5,005 30,033 69,210
2018 Estimate 4,924 29,684 67,320
2010 Census 5,029 30,142 67,806
2000 Census 4,932 30,378 65,251
HOUSING
2018 $143,479 $137,892 $140,750
EMPLOYMENT
2018 Daytime Population 16,729 85,358 189,353
2018 Unemployment 2.99% 4.14% 4.59%2018 Median Time Traveled 22 21 21
RACE & ETHNICITY
White 80.82% 75.69% 74.17%
Native American 0.01% 0.04% 0.03%
African American 12.88% 17.47% 18.15%
Asian/Pacific Islander 2.07% 1.99% 2.31%
www.MarcusMillichap.com
Lisa A. Sickinger
First Vice President Investments
Director, Net Leased Properties GroupCincinnati OfficeTel: (937) 299-4958
Fax: (513) 878-7710
License: OH SAL.2005015714
P R E S E N T E D B Y