Tempe, AZ - Alamo Drafthouse Cinema
1140 E. Baseline Road | Tempe, AZ 85283
32,570± SF Building Size
SRS Real Estate Partners-West, LLC is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a NN leased, freestanding, Alamo Drafthouse Cinema investment property located in Tempe, AZ. The tenant, Alamo Tempe, LLC, has approximately 13 years remaining in their initial lease term with 2 (5-year) option periods to extend. The lease features a 10% rental increase in December 2022 and rare 2% annual rental increases thereafter throughout the remainder of the initial term and option periods, steadily growing NOI and hedging against inflation. The lease is both personally and franchisee guaranteed, as well as NN in nature with landlord responsibilities limited to roof, structure, and foundation. There is a current roof warranty in place for the subject property, limiting future landlord capital expenditures.
The Alamo Drafthouse Cinema is strategically located along E Baseline Road, an east/west retail and residential thoroughfare that spans for more than 40 miles across Arizona and through Tempe. The asset has excellent visibility along E Baseline Road and benefits from its position near U.S. Highway 60, a major east/west commuter highway that travels through Phoenix, averaging an additional 197,100 vehicles per day. The site is also surrounded by multiple apartment complexes including The Harper (367 units), The Tides at Lakeside (244 units), and City Scape at Lakeshore (214 units), all contributing to more than 151,600 households within a 5-mile radius of the subject property, providing a direct consumer base to draw from. Moreover, the site is within a strong retail corridor and located near several national/credit tenants, including Fry’s Food and Drug, Target, Lowe’s, Big Lots, and more, further increasing consumer draw to the trade area. The 5-mile trade area is supported by a dense population of nearly 377,000 residents and 311,000 employees. The more immediate 1-mile trade area boasts a healthy average household income of $83,600.
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