$1,363,600 Investment Details

Transcription

1 Eldorado Parkway & Frisco Street, Frisco, Texas File photo $1,363,600 Investment Details 20 year NNN ground lease with five 5-year options Lease to commence mid-may 2018 New 2018 construction Last of the few remaining retail opportunities with Eldorado frontage on a booming anchor corridor Flexible zoning and no restrictive covenants Affluent Dallas-Ft Worth MSA with average household income is $130,431 within a one mile radius from the site Located just north of the Frisco Center Business Park True passive investment in a tax free state Escalations every five years, written into the lease, to hedge against inflation

2 THE OFFERING Overview Price $1,363,600 Gross Leasable Area (Estimate) 5,000 Lot Size (Square feet) 40,598 Year Built 2018 Net Operating Income $75,000 CAP Rate 5.50% Price Per Square Foot $0.54 SF of lot / Ground Lease Lease Abstract Lease Type NNN Original Lease Term 20 Years Lease Start (estimate) May 2018 Lease Expiration (estimate) May 2038 Renewal Options Remaining 5x5 Increases Every 5 -years Roof and Structure Tenant Return On Investment Years NOI Cap Rate 1-5 $75, % 6-10 $82, % $90, % $99, % Option 1 $109, % Option 2 $120, % Option 3 $132, % Option 4 $146, % Option 5 $160, %

3 TENANT OVERVIEW Andy's Frozen Custard has always been fanatical about custard, and has served it with pride since March 19, For more than three decades, only the freshest ingredients have been used for a frozen custard experience you can t get anywhere else. The Andy s Frozen Custard tradition started in Osage Beach, Missouri when John and Carol Kuntz embarked on a new frozen custard endeavor. Their treat quickly became a legend at the lake, and soon took nearby Springfield, Missouri by storm. It was at the original Springfield location where John and Carol s son Andy (and his wife Dana) worked long hours learning the business from the ground up. Their fanaticism for a supreme product and unmatched customer service never wavered. Always striving to expand and improve Andy s Frozen Custard, they have taken the brand to new heights, with locations throughout Missouri, Arizona, Arkansas, Colorado, Kansas, North Carolina, Oklahoma, Tennessee, Texas, and Illinois, with plans for locations in Florida and South Carolina in the near future. Company Profile Tenant Trade Name Ownership Andy s Frozen Custard Private Revenue Proforma Projections of Franchisee $12,160,000 Lease Guarantor No. of Locations Headquarters Website Franchisee (Rancher s Custard) Franchisee 9 units as of 2017 w/development for 50+/- projected Springfield, MO

4 FRANCHISE OVERVIEW Eric Reed, co-owner and CEO of Ranchers Custard Company dba Andy s Frozen Custard, has been the CEO since February 2015 and a field operator of new store development for Andy s since He assisted in the development of the Andy s franchise working all facets of the business ranging from franchise candidate qualifications, real estate selection and corporate training. 9 operational units as of 2017 w/60+/- development location opportunities Rated Best Thing in Many Regional Area Codes Guarantor: Ranchers Custard Ranchers Custard Company owns and operates multiple units at any given time and they have the development rights for several territories in Oklahoma, Texas and Florida. Prior to joining the Andy s family, he was the Director of Operations for Blimpie s, Inc.

5 SITE PLAN

6 ELEVATION RENDERING

7 Future Site WalMart scheduled to open 2018 Frisco High School (built 2017) Wakeland High School Frisco Gymnastic School

8 SALE COMPARABLES Comparable sales trends for 2017 thru YTD in the immediate and surrounding Frisco, Texas areas of similar QSR tenancy, similar franchise sizes and lease terms, shows that the average cap rate of sold QSR s in a 100 mile radius from the subject property sold for an average cap rate of 5.54% and an average sale price of $1.8(mil). On market and pending sale trends with the same parameters shows the average on market cap rate of 5.03% cap and a listing price of $2.3(mil). LOCATED DIRECTLY NEXT TO SUBJECT PROPERTY Sonic Ground Lease Adjacent to subject site, Frisco, TX Taco Cabana Fee Simple 6600 Camp Bowie Blvd, Fort Worth, TX Close Of Escrow 1/2017 Days On Market 90 days Sales Price $2,315,789 Price/SF $1,362,.23 CAP Rate 4.75% GLA 1.02 Acres Year Built 2016 / 2017 Close Of Escrow 12/2017 Days On Market N/A Sales Price $1,771,739 Price/SF $ CAP Rate 5.82% GLA 3,876 SF Year Built 1993 Whataburger Fee Simple Close Of Escrow On Market Days On Market 60 days Sales Price $2,881,000 Price/SF $ CAP Rate 5.00% GLA 3,140 SF Year Built 2004 These comparables are for fee-simple locations, not ground leases, which further makes the subject property a unique find. Industry dictates that ground leases sell for bps less than fee simple projects (i.e. fee simple cap of 5.50%, as a ground lease would sell for 4.50% cap).

9 Frisco, Texas Frisco, Texas: An affluent city located in Collin, Texas and Denton, Texas counties in Texas. It is part of Dallas - Fort MSA and is located approximately 25 miles (40 km) from both Dallas Love Field and Dallas/Fort Worth International Airport. Frisco was the fastest-growing city in the United States in 2009, and also the fastest-growing city in the nation from 2000 to In the late 1990s, the northern Dallas Fort Worth suburban development tide hit the northern border of Plano and spilled into Frisco, sparking explosive growth into the 2000s. Like many of the cities located in the booming northern suburbs of Dallas, Frisco serves as a bedroom community for many professionals who work in the Dallas-Fort Worth Metroplex. Population 1-Mile 3-Mile 5-Mile ,620 56, , ,616 72, , Household Incomes 1-Mile 3-Mile 5-Mile Average $130,431 $132,954 $130,281 Since 2003, Frisco has received the designation "Tree City USA" by the National Arbor Day Foundation.

10 Eldorado Parkway & Frisco Street, Frisco, Texas Presented By Lior Regenstreif Senior Managing Director Investments Senior Director, Net Leased Properties Group Tel: (818) Fax: (818) License: CA #