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Speedway Ground Lease, Mesa, AZ

Speedway Ground Lease

Mesa, AZ 85212

Price $3,742,000
Cap Rate 4.25%
NOI $159,000
Lease Term 20 Years
Lease Type Absolute NNN Ground Lease, with Tenant Responsible for All Taxes, Insurance, and Maintenance, Including Roof, Structure, and Parking Lot
Rental Increases 10% Rental Increases Every Five (5) Years
Year Built 2020
Building Size 4,600 SF
Lot Size 2.36 Acres (102,672 SF)
Status Available
Lead Broker Information Michael T. Yuras, CCIM
Cushman & Wakefield
415.481.0788
michael.yuras@cushwake.com
CA RE License #01823291

Scott Crowle
Managing Director
415.604.4288
scott.crowle@cushwake.com
CA RE License #01318288

Vincent Aicale
Cushman & Wakefield
415.690.5522
vince.aicale@cushwake.com
CA RE License #01728696

Ryan Forsyth
Cushman & Wakefield
415.413.3005
ryan.forsyth@cushwake.com
CA RE License #01716551

Investment Highlights

20-YEAR ABSOLUTE NNN GROUND LEASE WITH SCHEDULED RENTAL INCREASES
» 20-year initial term, plus five option periods of five years
» No landlord management, ideal for an out-of-area investor
» 10 percent rental increases every five years, providing an excellent hedge against inflation
» Speedway is the nation’s second largest company-owned and operated convenience store chain (3,900 locations)
» Is being acquired 7-Eleven for $21B, bolstering an already very strong credit

HIGH TRAFFIC LOCATION IN DENSELY POPULATED AND AFFLUENT AREA
» Hard-corner location at the signalized intersection of East Pecos Road and South Ellsworth Road (combined 41,356 AADT)
» Convenient access to Santan Freeway (State Route 202), greatly increasing commuter traffic to the site (55,000 AADT)
» 130,173 residents and an average annual household income of $110,934 within a five-mile radius of the site, establishing a strong customer base for Speedway
» Projected 18 percent AAHI increase within one mile of the site in the next five years, poising Mesa for continued growth

LOCATED NEAR LARGE EMPLOYERS, SCHOOLS, AND COMMUNITY HUBS IN MAJOR METROPOLITAN CITY EXPERIENCING RAPID GROWTH
» Key location in a new and major mixed-use development, which will include industrial and retail centers
» Surrounding trade area is experiencing rapid residential growth, with an expected 25,000 new homes to be built in the immediate future
» Convenient access to Phoenix-Mesa-Gateway Airport (1.8 million passengers in 2018)
» Beneficial proximity to Chandler Gilbert Community College (14,030 students, 364 employees)
» Population increase of 67 percent within five miles of the location since 2010
» Gateway to Phoenix, the most populous city in Arizona (1,660,272 residents)

0.5 MILES FROM LEGACY SPORTS PARK
» $250M, 320-acre sports and entertainment facility (Q1 2022 completion)
» Upon completion, will include: 24 soccer fields, 8,000 seat stadium, 62 indoor volleyball courts, 8 baseball fields, 75k SF E-Sports arena, 50k SF gymnastics arena, restaurants, retail, and many other fields/courts
» First complex of this size in the western United States



Property Description

The property has an easily accessible hard-corner location at the signalized intersection of East Pecos Road and South Ellsworth Road, a high-traffic Mesa intersection with visibility and access to a combined 41,356 vehicles per day. Visibility is increased by the site’s location in a densely populated area, with 130,173 residents living within a five-mile radius of the location. The property is also situated in an affluent community, with an average household income of $110,934 within five miles of the site. The property is primed to grow along with the surrounding area, with a projected 18 percent average annual household income increase within one mile of the site in the next five years. The property is centrally located in a new and major mixed-use development, as well as industrial and retail centers currently or slated to soon be under development. The surrounding trade area is experiencing rapid residential growth as well, with an expected 25,000 new homes to be built in the immediate future.

The site benefits from its central location near large employers, schools, and community hubs in a major metropolitan city experiencing rapid growth. The property benefits from its convenient accessibility to Phoenix-Mesa-Gateway Airport (1.8 million passengers in 2018) and Chandler Gilbert Community College (14,030 students, 364 employees). The area surrounding the site has experienced explosive expansion in the past decade, with a population increase of 67 percent within five miles of the location since 2010. The site also serves as a common gateway to Phoenix, the most populous city in Arizona (1,660,272 residents), and benefits from its proximity to Santan Freeway (State Route 202), which experiences 55,000 AADT, directing nearby commuter traffic to the property.

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