Buffalo Wild Wings + Kay Jewelers

Transcription

1 Buffalo Wild Wings + Kay Jewelers offering memorandum ACTUAL PROPERTY 1

2 Investment Overview Marcus & Millichap is pleased to present this newly constructed Buffalo Wild Wings and Kay Jewelers in Prattville, Alabama. This 7,335-square foot retail asset is located just off Interstate 65 and is less than 10 miles northwest of Montgomery. Each tenant signed a 10-year lease with renewal options featuring rental escalations. Both leases are guaranteed by corporate entities. The subject property is well located on Cobbs Ford Road, the main retail corridor of Prattville with over 32,600 vehicles per day. The asset is less than one-halfmile from Interstate 65 with over 56,600 vehicles per day. Cobbs Ford Road is densely populated with retail space. The subject property is adjacent to shopping centers anchored with Target, Home Depot, Publix, J.C. Penney, and Belk. In close proximity are additional shopping centers featuring anchor tenants such as Lowe s, Walmart, Kohl s, Carmike Cinemas, Academy Sports, and Hobby Lobby. Other major tenants in the vicinity include McDonald s, Starbucks, Mattress Firm, Ross, PetSmart, Books A Million, Office Depot, Ashley Furniture, Chipotle and many more. In addition, there are more than six national hotel chains within two miles of the asset. Newly Constructed Buffalo Wild Wings and Kay Jewelers in Prattville, Alabama Less Than 10 Miles Northwest of Montgomery Buffalo Wild Wings Signed a 10-Year Lease ith Four, Five-Year Renewal Options 15 Percent Escalation in Rent in Option One, 10 Percent in Remaining Options Kay Jewelers Signed a 10-Year Lease with Two, Five-Year Renewal Options 10 Percent Escalation in Rent Every Five Years Both Tenant s Leases are Guaranteed by Corporate Entities Highly Visible Location Along Busy Retail Corridor Over 32,600 Vehicles per Day Along Cobbs Ford Road Less Than One-Half-Mile from Interstate 65 Over 56,600 Vehicles per Day Runs Directly Through Montgomery Adjacent to Multiple Shopping Centers Anchored with Target, Publix, Home Depot, J.C. Penney, and Lowe s Other Major Tenants in the Vicinity Include Belk, Carmike Cinemas, Best Buy, McDonald s, Ross, PetSmart, Kohl s, Ashley Furniture, Chipotle, Starbucks, and Many More 2

3 Financial Overview Offering Summary PRICE: $ 3,267,700 CAP RATE: 6.35% NOI: $ 207,500 PRICE PER SQUARE FOOT: $ RENT PER SQUARE FOOT: $ ADDRESS: 2475 Cobbs Ford Road Prattville, AL YEAR BUILT: 2016 LOT SIZE: 1.80 Acres GROSS LEASEABLE AREA: 7,335 SF Annualized Operating Data: Income Base Rent Occupied Space $ 207,500 Gross Potential Rent $ 207,500 Expense Reimbursements Real Estate Taxes $ 11,736 Insurance $ 2,201 CAM $ 22,739 Management Fee $ 8,300 Administrative Fee $ 2,274 Total Expense Reimbursements $ 47,250 Effective Gross Income $ 254,750 Expenses Real Estate Taxes $ 11,736 Insurance $ 2,201 Administrative Fee $ 2,274 CAM $ 22,739 Management Fee (% of EGI) 3.3% $8,300 Total Expenses $ 47,250 Expenses/SF $ 207,500 3

4 Lease Overview Buffalo Wild Wings GLA 5,085 % of Total GLA 69% Lease Commence 12/5/2016 Lease Expire 1/31/2027 Annual Rent $134,753 Rent/SF $26.50 Increases In Options Lease Summary Base Rent Start End Annual Monthly Increase 12/5/2016 1/31/2027 $134,753 $11, Option 1 2/1/2027 1/31/2032 $155,347 $12, % Option 2 2/1/2032 1/31/2037 $170,856 $, % Option 3 2/1/2037 1/31/2042 $187,942 $15, % Option 4 2/1/2042 1/31/2047 $206,756 $17, % KAY Jewelers GLA 2,250 % of Total GLA 31% Lease Commence 11/25/2016 Lease Expire 12/31/2026 Annual Rent $74,993 Rent/SF $33.33 Increases 10% Every 5 Years Lease Summary Base Rent Start End Annual Monthly Increase 11/25/ /31/2021 $74,993 $6, /1/ /31/2026 $,508 $6, % Option 1 1/1/ /31/2031 $90,743 $7, % Option 2 1/1/ /31/2036 $99,833 $8, % 4

5 Tenant Overview - Buffalo Wild Wings Buffalo Wild Wings was founded in 19 at a location near The Ohio State University. In 1991, the company began franchising, and in 2003, they completed an initial public offering. Buffalo Wild Wings is listed on the NASDAQ under the symbol BWLD. In 2015 Buffalo Wild Wings generated $1.8 billion in revenue and had a net worth of $655 million. The company now operators over 1,080 restaurants in the United States, Canada, Mexico, and Philippines. As an established and growing owner, operator, and franchisor, Buffalo Wild Wings offers a variety of boldly-flavored menu items including Buffalo, New York-style chicken wings. A welcoming neighborhood atmosphere that includes an extensive multi-media system, a full bar, and an open layout appeals to sports fans and families alike. Guests have the option of watching sporting events or other popular programs on projection screens or the approximately 50 additional televisions or playing video games. Buffalo Wild Wings restaurants have widespread appeal and have won dozens of Best Wings and Best Sports Bar awards across the country. The menu features traditional chicken wings, boneless wings, and other items including chicken tenders, flatbreads, specialty hamburgers and sandwiches, wraps, Buffalito, soft tacos, appetizers, and salads. The bold flavor of 21 different signature sauces and seasonings enhance Buffalo Wild Wing s made-to-order menu items. The restaurants offer approximately 30 domestic and imported beers on tap, including several local or regional craft micro-brews and a wide selection of bottled beers, wines, and liquor. This award-winning food and memorable experience drives guest visits and loyalty. TENANT TRADE NAME OWNERSHIP TENANT TENANT PROFILE Buffalo Wild Wings Public Blazin Wings, Incorporated (Corporate Buffalo Wild Wings) LEASE GUARANTOR Blazin Wings, Incoporated NUMBER OF LOCATIONS 1,175 HEADQUARTERED Minneapolis, MN WEB SITE SALES VOLUME $1.81 Billion (2015) NET WORTH $655 Million (2015) STOCK SYMBOL BWLD BOARD NASDAQ RANK #19 in Fortune 500 (June 2016) RANK #107 in Fortune 500 (June 2016) 5

6 Tenant Overview - Kay Jewelers Since 1916, Kay Jewelers has grown from one store to more than 900 from coast to coast. As the #1 specialty jewelry brand in the United States, Kay knows that offering fine jewelry at a great price is only part of the story. The company is fully committed to providing a superior shopping experience - both in our stores and online. The staff is empowered with the knowledge to assist each customer. Kay Jewelers is a division of Sterling Jewelers Inc., headquartered in Akron, Ohio. Together with Signet Jewelers, the parent company, they are the largest specialty retail jeweler in the world. Signet Jewelers Limited is listed on the NYSE under the symbol SIG. In 2015 Signet Jewelers had total sales of $6.55 billion and a net worth of $3.06 billion Kay Jewelers has a volume kick out at the end of Year Five if sales do no exceed $1,200,000 in Year Five. The national average for unit level sales is $2,200,000. There is a $37,500 termination fee. TENANT PROFILE TENANT TRADE NAME Kay Jewelers OWNERSHIP Private TENANT Sterling, Incorporated LEASE GUARANTOR Sterling, Incorporated NUMBER OF LOCATIONS 1,500+ HEADQUARTERED Akron, OH WEB SITE $1.81 Billion (2015) SALES VOLUME $6.55 Billion (2015) NET WORTH $3.06 Billion (2015) STOCK SYMBOL SIG BOARD NYSE 6

7 A er i al O verview C o b b s F or d Ro ad - P RATTVILLE, ALABAMA O bs d R d rsta For rm S Inte Cob ld Fa Ln 5 te 6 28, D Cob bs F ord Rd VPD VP D ,30 VP 56, S.. U 000 PROPERTY ADDRESS Capitol Hill Golf Course 2475 Cobbs Ford Road Prattville, Alabama NORTH 65 7

8 Area Overview & Demographics Elmore 31 Booth 5 MILE RADIUS Prattville 3 MILE RADIUS 65 1 MILE 3 SITE Millbrook Coosada 231 Blue ridge Boylston Montgomery Mile 3-Mile 5-Mile Population 2000 Population 1,031 15,635 36, Population 1,727 22,508 46, Population 1,833 24,081 48, Population 1,881 24,505 49,641 1-Mile 3-Mile 5-Mile Households 2000 Households 1,497,729 42, Households 1,860 21,649 56, Households 1,958 23,035 59, Households 2,086 24,591 63,972 1-Mile 3-Mile 5-Mile Household (HH) Incomes 2016 Average HH Income $72,134 $85,2 $87, Median HH Income $55,739 $67,606 $69, Per Capita Income $26,184 $30,330 $31,916 8

9 Market Overview - Prattville, AL Prattville is in Autauga county, which is about 11 miles northwest of Montgomery and 9 miles Southwest of Atlanta. The city is part of the Montgomery metropolitan statistical area (MSA). About 24,303 people live in Prattville, which is also known as Fountain City, named for its abundance of artesian wells that once flowed through the town. Known as the birthplace of industry in Alabama, Prattville s rich history spans the life and accomplishments of its founder, the great industrialist, Daniel Pratt. Prattville features the Daniel Pratt Historic District, listed in the National Register of Historic Places, where some of the sites date back to the Civil War era. The Native Americans initially inhabited Prattville. It was in the 1830s that Daniel Pratt of Temple, New Hampshire, chanced upon the gleaming waters of Autauga Creek. He purchased approximately 1,000 acres of land around the creek from Joseph May. Pratt built manufacturing facilities along the banks of the creek so that water could be used as energy for the machineries in the cotton gins. Prattville remains one of the first planned communities of Alabama with separate areas for residences, businesses, schools, and churches. Prattville boasts a wide variety of natural and recreational attractions, including golfing, canoeing, hiking, fishing, and other means of entertainment. Prattville s cultural and retail attractions, numerous antique and specialty stores, and excellent dining establishments are sure to please almost any taste. The city of Prattville is near several museums including the Peoples Historical Museum, the Buena Vista-Reservations, and the Autauga County Heritage Center. While in the city, one can also visit the local public libraries and churches. There are many parks that offer a range of recreational facilities. The Prattville East Shopping Center, Prattville Plaza Shopping Center, and Skyline Shopping Center are also popular tourist haunts. 9