Golden Corral NNN Investment - Hesperia Offering Memorandum

Transcription

1 Golden Corral NNN Investment - Hesperia Offering Memorandum Main Street Hesperia, CA 92344

2 Primary Contacts: Steve Liu Senior Vice President tel CA # No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may be trademarks of their respective companies. NAI Capital, Inc. CA BRE Lic. #

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4 Table of Contents 5 Section 1 Property Information 11 Section 2 Location Information 18 Section 3 Financial Analysis 20 Section 4 Demographics

5 Golden Corral NNN Investment - Hesperia Property Information Executive Summary Property Description Complete Highlights Additional Photos Tenant Profiles

6 Executive Summary 1 PROPERTY INFORMATION Property Details Location Map Sale Price $6,000,000 Cap Rate 6.07% NOI $364,000 Lot Size Building Size 1.58 Acres 11,229 SF Year Built 2010 Zoning Market Sub Market Cross Streets RC - Regional Commercial Inland Empire North San Bernardino Key Pointe Avenue Demographics 1 Mile 5 Miles 10 Miles Total Households: ,006 82,922 Total Population: 2,039 85, ,310 Average HH Income: $68,927 $68,486 $61,893 6

7 Property Description 1 PROPERTY INFORMATION Property Overview The offering consists of a 11,229 SF Golden Corral restaurant situated on a 1.58 acres parcel within the High Desert Gateway Shopping Center. The opportunity is a sale leaseback with 8 years in initial term and two 5-year options to renew. The High Desert Gateway Shopping Center consists of 369,800 SF and is anchored by national tenants like: Super Target, Ross, Marshalls, Pier 1 Imports and Joann. Other name brand retailers include: GNC, AT&T, Famous Footwear, Leslies Pool Supplies, Planet Fitness, Sally Beauty, Sleep Number, Chase Bank, Verizon Wireless, and Pacific Dental. Other restaurants in the center include: Menchies, Waba Grill, Subway, Juice It Up, Starbucks, Pizza Hut, Farmer Boys, and Five Guys Burgers. Location Overview The opportunity is located with the High Desert Gateway Shopping Center in the city of Hesperia. The site is located just west of the 15 freeway on/off ramps on Main Street and offers exellent freeway visibility. The location is situated at the gateway to the High Desert trade area. The site is also strategically located on the way and back to Las Vegas, Nevada, where 30% of the 42 million annual visitors are from California. 7

8 Complete Highlights 1 PROPERTY INFORMATION Property Highlights Golden Corral NNN Investment 11,229 SF Restaurant and 1.58 Acres Parcel Reciprocal Parking Rights Throughout Entire Shopping Center Within "High Desert Gateway" - 369,800 SF Shopping Center Great Synergy with Neighboring Retailers and Restaurants Excellent Freeway Visibility and access Busy Retail Corridor, New Developments Still Underway Big Box Anchored Shopping Center Location 2010 Construction Building in Exellent Condition Experienced Operators w/ Over 30 Years in Restaurant Business 8

9 Additional 1 PROPERTY INFORMATION Photos 9

10 Tenant Profiles 1 PROPERTY INFORMATION Golden Corral Golden Corral s first 175-seat, 4,800-square-foot family steakhouse first opened in Fayetteville, NC, in The chain grew steadily during the next decade, principally in smaller cities from Virginia to Texas, offering our guests wholesome foods in a family-friendly atmosphere at a great value. In the mid-1980s, guests requests for additional entrees and expanded salad bar prompted Golden Corral to reinvent itself by introducing a 400+ seat,11,000+ square-foot Buffet & Grill building design, with food preparation performed in full view of the dining area to emphasize product freshness and quality. Tenant Highlights Named the #1 franchisor in the U.S. among family steakhouses for the 20th year by Entrepreneur Magazine. The focal point was the Golden Choice Buffet which featured 160 hot and cold items; a carving station for roast beef, roast pork, ham, sausage and turkey; plus The Brass Bell Bakery and Dessert Café along with its selection of homemade yeast rolls, muffins, cookies, pies, and cakes. More than 40 years later, Golden Corral is well known as America's #1 buffet and grill with over 480 restaurants open in 41 states. Ranked #1 in the grill-buffet segment for the 14th year by Nations' Restaurant News. Over 481 (408 franchised, 73 corporate) locations in 41 states. $1.696 billion sales in % market share within $4.5 billion buffet category. 10

11 Golden Corral NNN Investment - Hesperia Location Information Regional Map Location Maps Aerial Map Retailer Map Site Plan Parcel Map

12 Regional Map 2 LOCATION INFORMATION 12

13 Location Maps 2 LOCATION INFORMATION 13

14 Aerial Map 2 LOCATION INFORMATION 14

15 Retailer 2 LOCATION INFORMATION Map 15

16 Site Plan 2 LOCATION INFORMATION 16

17 Parcel Map 2 LOCATION INFORMATION 17

18 Golden Corral NNN Investment - Hesperia Financial Analysis Financial Summary

19 Financial Summary 3 FINANCIAL ANALYSIS Investment Overview Price $6,000,000 Price per SF $534 CAP Rate 6.07% Cash-on-Cash Return (yr 1) 4.17 % Net Operating Income $364,000 Debt Service $280,603 Cash Flow $83,397 Proposed Financing Data Down Payment $2,000,000 Loan Amount (67% LTV) $4,000,000 Debt Service $280,603 Interest Rate 5.00% Amortization Debt Coverage Ratio 25 Years

20 Golden Corral NNN Investment - Hesperia Demographics Demographics Map

21 Demographics Map 4 DEMOGRAPHICS Population 1 Mile 5 Miles 10 Miles TOTAL POPULATION 2,039 85, ,310 MEDIAN AGE MEDIAN AGE (MALE) MEDIAN AGE (FEMALE) Households & Income 1 Mile 5 Miles 10 Miles TOTAL HOUSEHOLDS ,006 82,922 # OF PERSONS PER HH AVERAGE HH INCOME $68,927 $68,486 $61,893 AVERAGE HOUSE VALUE $327,894 $306,846 $276,234 Race 1 Mile 5 Miles 10 Miles % WHITE 74.8% 69.5% 68.3% % BLACK 6.2% 9.5% 10.9% % ASIAN 2.7% 3.4% 3.3% % HAWAIIAN 0.0% 0.2% 0.3% % INDIAN 2.0% 1.0% 1.1% % OTHER 11.6% 13.1% 11.8% Ethnicity 1 Mile 5 Miles 10 Miles % HISPANIC 47.7% 47.6% 45.0% 21