Representative Photo. BURGER KING Early (Brownwood), Texas

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1 Representative Photo BURGER KING Early (Brownwood), Texas

2 E X E C U T I V E S U M M A RY Project The Project is a Build-To-Suit development of a free-standing 2,866 square foot quick serve restaurant which will be leased to Burger King (franchisee). The site is currently under construction with a projected delivery to the Tenant on August 1, Price: $1,913,043 Cap Rate: 5.75% Location Tenant 424 Early Boulevard (US Hwy 84), Early, Texas (Brown County) The City of Early is located adjacent to Brownwood in the central portion of the state of Texas and is approximately 100 miles southwest of the Dallas/Fort Worth Metroplex and 135 miles northwest of Austin. The site is located along the primary roadway of the Early/Brownwood area and is near the Heartland Mall, which is anchored by a newly opened Hobby Lobby, Hibbett Sports, Regal Cinemas, Clair s, Bath & Body Works, GNC and Chick Fil A. Landmark & Landmark Group LLC is a Burger King franchisee based in Southlake, Texas. The firm has more than 20 years of franchise operating history and currently operates six Burger King units in the Central Texas area, including a unit within the Wal-Mart in nearby Brownwood. Lease The lease is an absolute NNN lease with a 20 year term and five 5-year options to renew. The initial rental rate will be $110,000 per year with 10% increase every fifth year of the lease and in each option period. Page 2

3 T E N A N T D E S C R I P T I O N / L E A S E S U M M A R Y LEASE SUMMARY Tenant Name: Burger King (Landmark & Landmark Group LLC Franchisee) Guarantor: Personal Guaranty Net Worth: $16+mm Lease Commencement Date: August 1, 2018 (projected) Lease Term: Renewal Options: Lease Type: 20 years beginning on the lease commencement date Five, 5-year options to renew at a 10% rental increase in each option period Absolute NNN Lease Burger King operates over 15,793 outlets in 100 countries; of these, 47.5% are in the United States and 99.5% are privately owned and operated with its new owners moving to an almost entirely franchised model in Landmark & Landmark Group LLC, based out of Southlake, Texas, is an six unit operator of Burger King franchisees with the majority of locations being in small markets of central Texas. The tenant currently operates the Burger King within the Brownwood Wal-Mart (approx. 4 miles from the subject location). This existing instore unit produces annual sales of over $900k. The Early location (subject) will provide for a free-standing unit to capture market share while creating minimal impact to the existing location. Landlord Responsibilities: None Tenant Responsibilities: Tenant is responsible for all utilities, repairs and maintenance, property/liability insurance, property taxes and all structural/roof/parking lot repairs/ replacement Annual Base Rent: Years 1-5: $110,000 Years 5-10: $121,000 Years 10-15: $133,100 Years 15-20: $146,410 Page 3

4 P R O P E R T Y D E S C R I P T I O N PROPERTY DESCRIPTION Address: 424 Early Boulevard Early, (Brown County), Texas Location: The property is located along U.S. Highway 84 (Early Boulevard), approximately one-block north of the Heartland Mall. Tax Assessor ID: Land Size: 35,033 square feet Zoning: Commercial Access: Building Size: Access to the site is provided from US Highway 84 via a cross-access entrance with the neighboring property. Additional access is provided along West Street, which is a feeder road to US Highway 84. 2,866 square feet Building Construction: Brick/stucco veneer over wood frame Drive Areas: Concrete drive areas with concrete curbs and gutters Parking Ratio: 32 parking spaces (11.26 spaces per 1,000sqft) Signage: Traffic Counts One pylon sign along U.S. Highway 84 in addition to building signage on all exterior walls Highway 84: 22,842 vehicles per day Page 4

5 M A R K E T S U M M A RY The property is located in the Brownwood/Early MSA which is located approximately 100 miles southwest of Dallas/Fort Worth and 135 miles northwest of Austin. Brownwood is the county seat of Brown county which has a population of approximately 40,000. Major employers in the area include Kohler, 3M and Superior Essex. Kohler is one of the largest privately held companies with more than 50 manufacturing locations on six continents and employs 1,145 at it s 1.1 million square foot plant in Brownwood. 3M is a Fortune 100 company with 600 employees at it s 910,000 square foot plant in Brownwood. Superior Essex is a global leader in the design, manufacture and supply of wire and cable products with 490 employees at it s 415,000 square foot plant in Brownwood. The Brownwood/Early area is home to Howard Payne University with an enrollment of 1,200 students and Texas State Technical College with 377 students. Page 5

6 A E R I A L M A P Hobby Lobby Page 6

7 A E R I A L M A P Hobby Lobby Page 7

8 D I S C L O S U R E The material contained in this Investment Offering Brochure is furnished solely for the purpose of considering the purchase of enclosed property and is not to be used for any other purposes. This information should not, under any circumstances, be photocopied or disclosed to any third party without written consent of the Broker or the Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Property Owner ( Owner ) in connection with the sale of the Property is ( Broker ), and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Investment Offering Brochure. Neither Broker nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future performance of the Property. This Investment Offering Brochure may include certain statements and estimates by Broker with respect to the projected future performance of the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the Broker and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Investment Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase and Sale Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or Broker, nor any of their officers, employees, representatives, independent contractors, or affiliates, for the accuracy or completeness thereof. Recipients of the Investment Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Investment Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate discussions with any entity at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Investment Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release Owner and Broker from any liability with respect hereto. Page 8

9 Brad Cruickshank