DAIRY QUEEN OFFERING MEMORANDUM. 618 North Carol Malone Blvd, Grayson, KY *Actual Photo

Transcription

1 DAIRY QUEEN 618 North Carol Malone Blvd, Grayson, KY OFFERING MEMORANDUM *Actual Photo

2 Dairy Queen Grayson, KY TABLE OF CONTENTS INVESTMENT OVERVIEW 01 Property Overview Regional Map Local Map Aerial Photo SECTION P R E S E N T E D B Y Michael Matusik Vice President of Investments Office Ext 102 Direct Fax mmatusik@primenetlease.com License: CA FINANCIAL ANALYSIS 02 Offering Summary MARKET OVERVIEW 03 Demographics Paul R Matusik Director of Investments Office Ext 101 Direct Fax pmatusik@primenetlease.com License: CA In Association with Dawn Wientjes of Falconite Development Group, a licensed Kentucky Broker (74194)

3 INVESTMENT OVERVIEW 3

4 PROPERTY OVERVIEW PROPERTY OVERVIEW PRICE: $1,056,000 CAP RATE: 6.25% ABOUT THE INVESTMENT Dairy Queen Grill & Chill is a single tenant, quick-service restaurant with that recently renewed a 5 year Absolute NNN lease with one 5 year renewal options. There will be a 10% increase upon the next renewal. The tenant, Frauenshuh Hospitality Group KY/IN, LLC, operates 72 DQ locations in Kentucky and Indiana, backing the performance of the lease. Frauenshuh Hospitality Group MN, LLC is a subsidiary of Fourteen Foods - the largest DQ franchisee in the US with 208 locations. Built originally in 1977, the 3,020 square foot building has successfully operated as a Dairy Queen for 41 years. The property sits along Carol Malone Blvd, a major thoroughfare in the city with direct access to Hwy 60, and the I-64. PROPERTY HIGHLIGHTS Recently Extended Term Showing Commitment to Site. 41 Years Operating at Site! Largest Dairy Queen Operator in the US Superbly located along I-64 (15,408 Vehicles Per Day) Strong Retail Corridor Absolute NNN Lease No Landlord Responsibilities ANNUALIZED OPERATING DATA YEAR ANNUAL RENT Current $60,000 07/01/18-06/30/23 $66,000 07/01/23-06/30/28* $72,600 * Denotes option period LEASE ABSTRACT Tenant: Frauenshuh Hospitality Group KY/IN, LLC Lease Commencement: April 28, 1977 Lease Expiration: June 30, 2023 Rent Increases: Type of Ownership: No. of Tenant Locations: 208+ PROPERTY INFORMATION Address 10% Every 5 Years Fee Simple Offering Price $1,056,000 Price / SF $ Cap Rate 6.25% Net Operating Income $66,000 Year Built /Remodeled 1977 Rentable Square Feet 3,020 Land Area 618 N Carol Malone Blvd Grayson, KY Acres 4

5 SUBJECT PROPERTY PHOTOS PROPERTY PHOTOS 5

6 PROPERTY OVERVIEW TENANT About Dairy Queen Dairy Queen, often abbreviated DQ, is a chain of soft serve ice cream and fast food restaurants owned by International Dairy Queen, Inc, a subsidiary of Berkshire Hathaway. Franchise Times estimates DQ sales worldwide at more than $3 billion, ranking it the 32nd largest franchise chain of the Top 200 Franchise Chains list. History The first DQ restaurant was located in Joliet, Illinois. It was operated by Sherb Noble and opened for business on June 22, The first Canadian DQ store opened in Estevan, Saskatchewan in For additional information regarding the history of the Dairy Queen system, click on the About Us link at the bottom of this web page. The founders of the Dairy Queen system were men and women who introduced a new kind of dessert treat and, in the process, developed the foundation of the franchising industry. The history of the DQ system is a story of a unique product that created an industry. The DQ Grill & Chill concept blends the best of DQ iconic history with the most modern innovations in the quick-service restaurant (QSR) industry. The food menu features the quarter- and halfpound GrillBurger TM made-to-order, as well as other delicious and unique food items, including deli-style Iron Grilled Sandwiches. Other menu offerings include Grilled or Crispy Chicken Sandwiches and Salads; Chicken Strip Baskets; Shrimp Baskets; Quesadillas and Chili Cheese Dogs. American Dairy Queen Corporation (ADQ), which is headquartered in Minneapolis, Minnesota, develops, licenses and services a system of more than 6,700 Dairy Queen stores in the United States, Canada and 21 other countries. (ADQ is part of the Berkshire Hathaway family, a company owned by Warren Buffett, the legendary investor and CEO of Berkshire Hathaway). Website: Founded: 1940 Number of Locations: 6,700 ± Number of Employ 10,000 ± Headquarters: Minneapolis, MN Ownership: Berkshire Hathaway 6

7 REGIONAL MAP 7

8 LOCAL MAP 8

9 Dairy Queen Grayson, Grayson, KY KY AERIAL AERIAL PHOTO MAP 9

10 FINANCIAL ANALYSIS 10

11 OFFERING SUMMARY FINANCIAL ANALYSIS THE OFFERING ANNUALIZED OPERATING INFORMATION Property Dairy Queen INCOME Property Address 618 N Carol Malone Blvd Grayson, KY Net Operating Income $60,000 Price $1,056,000 RENT SCHEDULE Capitalization Rate 6.25% YEAR ANNUAL RENT MONTHLY RENT RENT/SF Price/SF $ Current $60,000 $5,500 $ /01/18-06/30/23 $66,000 $5,500 $21.85 PROPERTY DESCRIPTION 07/01/23-06/30/28 $72,600 $6,050 $24.04 Year Built / Renovated 1977 Gross Leasable Area 3,020 Type of Ownership Fee Simple LEASE SUMMARY Property Subtype Tenant Rent Increases Guarantor Lease Type Net Leased Restaurant Frauenshuh Hospitality Group KY/IN, LLC 10% Every 5 Years Corporate Guarantee Absolute Net Lease Commencement 4/28/1977 Lease Expiration 6/30/2023 Term Remaining on Lease (Years) Renewal Options Five Year Options Landlord Responsibility Tenant Responsibility Right of First Refusal/Offer None Absolute No 11

12 MARKET OVERVIEW 12

13 MARKET OVERVIEW 13

14 MARKET OVERVIEW 14

15 P R E S E N T E D B Y Michael Matusik Vice President of Investments Office Ext 102 Direct Fax mmatusik@primenetlease.com License: CA Paul R Matusik Director of Investments Office Ext 101 Direct Fax pmatusik@primenetlease.com License: CA In Association with Dawn Wientjes of Falconite Development Group, a licensed Kentucky Broker (74194)