ABSOLUTE NNN CARL S JR.

Transcription

1 ABSOLUTE NNN CARL S JR Eastex Freeway, Beaumont, TX File Photo Absolute NNN Lease Zero LL Obligations 10% Rent Increases Every 5-Years Long Term Lease 14.5± Years Remaining (Inquire with Broker for Details) High Traffic Counts & Excellent Visibility US 69 (Eastex Fwy) 109,000+ VPD Outparcel to Home Depot Strong Operator Starcorp LLC Recently acquired Frontier Star LLC Assets (160± Units) for $47m

2 PROPERTY OVERVIEW Price $1,820,500 CAP Rate 5.85% NOI $106,500 Lease Term Rent Increases 14.5± Years 10% every 5-years Year Built 2011 Absolute NNN Carl s Jr. located in Beaumont (Houston), TX for $1,820,500 / 5.85% CAP. There are 14.5± years left on the 20 year Lease with 10% rent increases every 5- years. The Tenant is responsible for all property taxes, insurance, and maintenance/repairs including roof & structure and parking lot. There are Zero Landlord Obligations. Excellent Location This Carl s Jr. is situated on a hard corner entrance to a Home Depot, with great visibility from US 69 (Eastex Freeway) and high traffic counts of 109,000± VPD. Dense Location - Total population within 1-mile is 10,485 and almost 100,000 within 5-miles with an Avg HH Income of $64,167. It s two miles from the Parkdale Mall which is anchored by Macy s JCPenney & Dillard s. Other surrounding retailers include: Target, Chevrolet, Cadillac, Dunkin Donuts, Walgreens, AutoZone and much more.

3 INVESTMENT SUMMARY INVESTMENT HIGHTLIGHTS Rent Commencement: Sept 20, 2011 Lease Expiration: Sept 30, 2031 Lease Term Remaining 14.5± Years Rent Increases: 10% Every 5-years Building Size 2,390± SF Lot Size 0.813± AC Tenant Starcorp CJ, LLC Absolute NNN Lease - ZERO LL Responsibilities Long Term Lease 14.5± Years Remaining 10% Rent Increases Every 5-Years Excellent Visibility & High Traffic Counts of 109,000 VPD Located two miles from the Parkdale Mall which is anchored by Macy s, JCPenney & Dillard s Sale Includes BOTH Building & Land (depreciable asset) Upside Potential Rent Increases 20% in 2023 or Sooner (Inquire with Broker for Details) Lease Guarantor Lease Type Roof & Structure Option Periods Traffic Counts Franchisee Fee Simple Absolute NNN Tenant Responsible 4 x 5 year with 10% bumps 109,000± VPD TENANT HIGHTLIGHTS Carl s Jr. - Established Brand & Top 5 Quick Service Burger Restaurant Chain Global Brand - CKE has total 3,664 franchised or company operated restaurants in 44 states and 38 countries Starcorp LLC recently acquired Frontier Star LLC assets (160± units) for $47m 160± Unit Operator of Carl s Jr. & Hardees in Multiple States It is believed that there are 77± units Backing this Lease Executive Operations Team 30 year Veteran Restaurant Entrepreneur and Experienced Hardees Franchise Operator, former board member of the IHFA & CFA

4 AERIAL Derrick Schroeder Single Tenant Net Leased Specialist Solid Investments of Berger Realty Group C: F: O:

5 AERIAL Derrick Schroeder Single Tenant Net Leased Specialist Solid Investments of Berger Realty Group C: F: O:

6 RENT ROLL Lease Year NOI Increase CAP Year 1 5 $120,575 *Year 6 $106, % Year 7 $106, % Year 8 $106, % Year 9 $106, % Year 10 $106, % Year 11 $117, % Year 12 $117, % **Year 13 $146, % Year 14 $146, % Year 15 $146, % Year 16 $162, % Year 17 $162, % Year 18 $162, % Year 19 $162, % Year 20 $162, % Notes: *Rent was reduced by 20% in 2016 as part of the Starcorp takeover agreement. **Rent will increase 20% (back to the original rent schedule) the earlier of i) 7.5 yrs from date the Starcorp took over (5/20/16), or ii) the first month after gross sales reach or exceed $1.2M for a calendar year. Average Carl's Jr. sales are around $1.2M, so sales would only have to get back to average to increase rent back to the normal rent schedule of $133,125 (from years 6-10), which would bump the CAP to 7.31%. Rent Roll assumes the rent increases back to original Rent Schedule 7.5 years from the date Starcorp took over (which will occur in October 2023, if sales don t exceed $1.2M before then).

7 PROPERTY PHOTOS Derrick Schroeder Single Tenant Net Leased Specialist Solid Investments of Berger Realty Group C: F: O:

8 PROPERTY PHOTOS Derrick Schroeder Single Tenant Net Leased Specialist Solid Investments of Berger Realty Group C: F: O:

9 TENANT PROFILE Website - Number of Locations: 3,400 CARL S JR. Carl s Jr. (CKE Restaurants) was created and founded by Carl Karcher in In 1994, Carl s Jr. became a wholly-owned subsidiary of CKE Restaurants, Inc. (CKE.) The CKE system includes 3,664 restaurants in 42 states and in 29 countries and U.S. territories world-wide generating approximately $3.9 billion in system revenues. The company employs a dual branding technique for Carl s Jr. with Green Burrito. Similarly Hardee s has a dual branding strategy with Red Burrito. Carl s Jr. primarily operates in Western US and West Coast regions. In 2013, CKE Restaurants, Inc. was purchased by the private equity firm Roark Capital Group. Roark s franchise and multi-unit portfolio includes 59 brands that collectively have more than 26,000 locations and $23 billion in system-wide revenues across 50 states and 75 countries. Since its inception, the Atlanta-based firm has raised over $6 billion in equity capital and commitments, with its largest investments targeted towards the food and restaurant industry. In 2016, Entrepreneur listed Carl's Jr. as #54 on their Top Franchise 500 list, which ranks the overall financial strength, stability, and growth rate for the top 500 franchisees in any field across the United States. Carl s Jr./Hardee s is the 5th largest fast-food restaurant chain in the United States after Subway, McDonald s, Burger King, and Wendy s. Website - Number of Locations: 160± Starcorp, LLC - Founded in April 2016, the company acquired Frontier Star LLC (former operator) for $47M and currently operates 160± locations in seven states. This Carl's Jr. is operated by Starcorp CJ, LLC. Starcorp HD, Starcorp CJ, and Starcorp, LLC combine to be one of the largest dual-branded franchisees in the CKE restaurant system. It is believed that there are 77± units backing this lease. Executive operations team - 30yr veteran restaurant entrepreneur and experienced Hardees franchise operator, former board member of the IHFA (Independent Hardee s Franchisee Association) and CFA (Coalition of Franchisee Associations). Tenant: DBA: Business Type: Ownership: Tenant Profile Carl s Jr. Carl s Jr. & Hardee s Restaurants Private Founded: 1966 Headquarters: Website: Franklin, TN Derrick Schroeder Single Tenant Net Leased Specialist Solid Investments of Berger Realty Group C: F: O: Dschroe@SolidInvestmentsFL.com

10 ABOUT THE LOCATION Beaumont, Texas Located approximately 85 miles east of Houston, Texas Beaumont is home of Lamar University, a national Carnegie Doctoral Research university with 14,966 students, including undergraduates and post graduates. County seat of Jefferson County Part of the Beaumont-Port Arthur Metropolitan Statistical Area (2009 estimated population of 378,477) According to the U.S. Census, Beaumont s 2010 population was 118,296 Together with Port Arthur and Orange, Beaumont forms the Golden Triangle, a major industrial area of the Gulf Coast The Port of Beaumont, the nations 4th largest seaport by Tonnage, and the 2nd largest military seaport in the world, is a significant element of the regions economy Since 1907, Beaumont has been home of the South Texas State Fair. In 2004, the venue for the fair changed to Ford Park, a new, larger facility on the west end of Beaumont Derrick Schroeder Single Tenant Net Leased Specialist Solid Investments of Berger Realty Group C: F: O: Dschroe@SolidInvestmentsFL.com

11 DEMOGRAPHICS

12 DEMOGRAPHICS

13 NET LEASE DISCLAIMER Solid Investments of Berger Realty Group hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Solid Investments of Berger Realty Group has not and will not verify any of this information, nor has Solid Investments of Berger Realty Group conducted any investigation regarding these matters. Solid Investments of Berger Realty Group makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Solid Investments of Berger Realty Group expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all Legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Solid Investments of Berger Realty Group Real and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property. Derrick Schroeder Single Tenant Net Leased Specialist Solid Investments of Berger Realty Group C: F: O: Dschroe@SolidInvestmentsFL.com

14 Exclusively Marketed By SOLID INVESTMENTS DERRICK SCHROEDER Net Leased Specialist C: F: Berger Realty Group