OFFERING MEMORANDUM EXCLUSIVE LISTING APPLEBEE S OCALA, FL. CALKAIN REALTY ADVISORS Licensed Real Estate Broker. Representative Photo CONTACT

Transcription

1 EXCLUSIVE LISTING CALKAIN REALTY ADVISORS Licensed Real Estate Broker CONTACT APPLEBEE S OCALA, FL Representative Photo TEAL HENDERSON DIRECTOR (813) thenderson@calkain.com DAVID SOBELMAN EXECUTIVE VICE PRESIDENT & MANAGING PARTNER (813) dsobelman@calkain.com MID-ATLANTIC NORTHEAST SOUTHEAST OFFERING MEMORANDUM

2 ASKING PRICE $4,492,400 CAP RATE 5.25% 2615 SW 19th Avenue Road Ocala, FL Net Operating Income (NOI) $235,851 Rentable Square Feet 5,616+/- Land Area Tenant Brand Website Credit Rating Guarantor Ownership Type Lease Type Landlord Responsibilities 1.44+/- Acres Neighborhood Restaurant Partners Florida, LLC. Applebee s Private Franchisee Fee Simple NNN None Store Built 2003 Investment Highlights Long Term NNN Lease No Landlord Responsibilities Rent Determined at Below Market Rent to Sales Ratio Highly Reusable Real Estate Florida No Income Tax State LOCATION HIGHLIGHTS Located within the major retail corridor of Ocala Outparcel to Regal Cinemas Located across the from a Walmart Supercenter and Michael s anchored shopping center F I N A N C I A L S U M M A R Y Lease Term 20 Years Rent Commencement May 22, 2012 Increases Options 1% Annually Six (6), Five (5) Year 2

3 TENANT OVERVIEW FRANCHISOR: DINEEQUITY, INC. DineEquity, Inc is based in Glendale, California. DineEquity, Inc., through its subsidiaries, franchises and operates restaurants under the Applebee s Neighborhood Grill & Bar and IHOP brands. With more than 3,600 restaurants combined in 18 countries, over 400 franchisees and approximately 200,000 team members (including franchisee- and company-operated restaurant employees), DineEquity is one of the largest fullservice restaurant companies in the world. Fiscal 2014 Highlights IHOP s domestic system-wide same restaurant sales increased 3.9% for fiscal 2014 compared to fiscal 2013, representing the strongest full-year sales increase since fiscal APPLEBEE S 2014 RANK 2013 RANK GLOBAL SALES ($M) US UNITS INT L UNITS TOTAL UNITS % FRANCHISED SALES GROWTH UNIT GROWTH ,515 1, ,011 99% 0.3% -1.1% Applebee s domestic system-wide same-restaurant sales increased 1.1% for fiscal 2014 compared to fiscal T E N A N T O V E R V I E W BRAND Applebee s is the world s largest casual dining brand. Founded in 1980 in Atlanta, Georgia by Bill and T.J. Palmer. Applebee s has always been dedicated to full service, consistently good food, reasonable prices and quality service in a neighborhood setting. Today, they are focused on building upon this heritage and revitalizing the Applebee s brand to become more competitive and differentiated in the casual dining segment of the restaurant industry. Applebee s is a casual-dining chain with 1,885 U.S. locations and more than $4.5 billion in U.S. system wide sales. Applebee s has reached its goal of becoming an almost-all franchised brand. About 99% of Applebee s locations are franchised. 3

4 TENANT OVERVIEW ARGONNE CAPITAL GROUP Argonne Capital Group is a private investment firm, founded in 2003, based out of Atlanta, GA. Led by Michael Klump, Founder and President, and Karl Jaeger, Managing Director, the firm focuses on the acquisition and growth of positive cash flow businesses primarily in the real estate, restaurant, and retail industries. Argonne owns concepts in addition to franchises and has grown its relationship with DineEquity (NYSE: DIN) to become one of its largest operators. Argonne s portfolio includes over 830 Krystal, IHOP, Applebee s, and On the Border locations in 39 states. System wide revenues total in excess of $1,500,000,000. Summary of Affiliate Companies Owned by Argonne Capital CONCEPT ENTITY NUMBER OF LOCATIONS NEIGHBORHOOD RESTAURANT PARTNERS Neighborhood Restaurant Partners Florida, LLC ( Tenant ) was formed in May 2012 to acquire 51 Applebee s locations in Tampa and Orlando, FL. In December 2012, NRP Florida acquired 15 additional restaurants in Florida, Georgia and Alabama through a wholly owned subsidiary, Neighborhood Restaurant Partners Florida 2, LLC. In addition, NRP Florida recently opened three additional stores in Florida. These 69 restaurants combine to generate approximately $190 million in gross sales. By implementing a similar store remodel and growth strategy to that of its other portfolio companies, Argonne expects meaningful continued growth in the system. LOCATION OF STORES SYSTEM WIDE SALES Applebee s NRP Florida 69 FL, GA, AL $192,000,000 T E N A N T O V E R V I E W Applebee s NRP 50 GA, TX $113,000,000 IHOP Sunshine Restaurant Partners 153 FL, GA $244,000,000 IHOP ACG Texas 67 TX $133,000,000 IHOP Peak Restaurant Partners 39 7 Western States $49,000,000 Krystal The Krystal Company Southeast States $408,000,000 On The Border On The Border States $383,000,000 TOTAL 858 $1,522,000,000 4

5 2615 SW 19th Avenue Road Ocala, FL McDonald s L O C A T I O N O V E R V I E W 5

6 2615 SW 19th Avenue Road Ocala, FL College of Central Florida Paddock Mall L O C A T I O N O V E R V I E W SUBJECT SITE McDonald s 6

7 MARKET OVERVIEW OCALA, FL Tucked into north central Florida in a region known as horse country, Ocala offers visitors winding community pathways lined with oak trees and dangling trellises of Spanish moss, and the opportunity to explore miles of untainted nature. If the prospect of canoeing down a crystal clear stream amid the largest sand pine forest in the world sounds appealing, Ocala and surrounding Marion County are more than worth your time. The region s freshwater streams, rolling hills and clean air remain unspoiled and have been used for Hollywood movies. Nearby is Silver Springs, a national landmark and nature theme park on 350 acres. Silver Springs is Florida s original attraction. Downtown Ocala, a quiet, compact district surrounded by modern-day stores and hotels, preserves the commercial buildings and ornate Victorian homes from its boom era in the 1930s. Delis, pubs and antiques and other shops take up residence behind brick façades around a pretty little gazebo park. In the residential historic district along Fort King Avenue, more than 200 wooden, steamboat-era mansions range in style from Queen Anne Revival to Italianate. Other attractions in Ocala include the Appleton Museum of Art, an eclectic collection of priceless treasures; the Don Garlits Museum of Drag Racing, honoring a local citizen who made it big on the oval track, with classic dragsters and other antique automobiles; and Discovery Center, with hands-on indoors and outdoors exhibits. The Ocala National Forest spreads at Ocala s backdoor, providing recreational access to the area s pristine spring lands and preserving vast acreage of pine forest laced with rivers, streams and the lakes they form. The forest is immense - more than 383,000 acres, 19 developed campgrounds and two day-use recreational areas. Most popular among the camping recreational areas, Juniper Springs is beautified by an old waterwheel and mill at its refreshing swimming hole, naturally climate controlled to 72 degrees year round. Alexander Springs is best for canoeists. One of its hiking trails takes you down the path of ancient civilizations, explaining how the Timucuan Indians used different plants for food, clothing and entertainment. Other trails in and around the forest are part of the Florida National Scenic Trail. Cyclists can pedal along the 22-mile-long Paisley Woods Trail, which connects Alexander Springs in the north to Clearwater Lake in the south. Since 1878, the biggest attraction in the area has been Silver Springs, actually considered Florida s first tourist park. It attracted folks with its sparkling spring waters and the first-ever glass-bottom boats for spying at the fish and archaeological artifacts at the springs bottom. Many a movie and TV show have used the lush location for filming, including Tarzan, Sea Hunt and Creature from the Black Lagoon. Today, live animals, a Jeep safari, boat tours, a tots play land and top-name country entertainment keep the park lively. D E M O G R A P H I C S 7

8 RADIUS 1 MILE 3 MILE 5 MILE POPULATION 2010 Population 5,230 31,525 68, Population 5,276 32,288 70, Population 5,297 32,876 72, Annual Rate 0.17% 0.46% 0.41% Annual Rate 0.08% 0.36% 0.50% 2015 Male Population 45.2% 49.3% 48.3% 2015 Female Population 54.8% 50.7% 51.7% 2015 Median Age HOUSEHOLDS 2010 Households 2,373 12,451 28, Total Households 2,370 12,652 28, Total Households 2,382 12,913 29, Annual Rate -0.02% 0.31% 0.36% Annual Rate 0.10% 0.41% 0.54% 2015 Average Household Size MEDIAN HOUSEHOLD INCOME 2015 Median Household Income $36,071 $35,888 $37, Median Household Income $42,482 $41,578 $44, Annual Rate 3.33% 2.99% 3.12% AVERAGE HOUSEHOLD INCOME 2015 Average Household Income $52,762 $54,817 $59, Average Household Income $60,425 $62,369 $66, Annual Rate 2.75% 2.61% 2.49% PER CAPITA INCOME 2015 Per Capita Income $23,479 $22,402 $24, Per Capita Income $26,802 $25,426 $27, Annual Rate 2.68% 2.56% 2.49% D E M O G R A P H I C S 8

9 CALKAIN COMPANIES OVERVIEW Calkain Companies is a national commercial real estate services firm, focusing on net lease investments. We provide brokerage and advisory services for both private and institutional clientele. Calkain has utilized our extensive network of solid relationships to successfully complete over $11 billion in sales and has consistently ranked as one of the top national net lease investment brokerage firms and is constantly sought after for industry expertise, commentary, news and trends. OUR HISTORY MORE THAN $11 BILLION IN TRANSACTIONS Since opening our first office in Reston, VA (a Washington, DC suburb), Calkain has been an innovator in the net lease space and has been recognized throughout the nation s investment community as such. While Calkain has grown tremendously, we ve stayed true to the basics; client service. Since its inception, Calkain has grown to multiple strategically located offices throughout the Northeast, Mid-Atlantic and Southeast markets. Calkain has also added service lines that assist our clients in the entire life cycle of net lease property ownership; from the many services required for a successful acquisition through the ongoing ownership of an asset and ultimately to a profitable disposition. Calkain consistently delivers acquisition and disposition services to clients seeking to capitalize and invest in office, industrial and retail net leased assets. Additionally, it has begun ground breaking advances with a new specialization in urban communities as well as net lease investment research. Calkain has been a proven industry leader in providing its clients with the most up-to-date information and strategies for working with their income producing assets. Most notably, Calkain s principals wrote the only published book solely dedicated to Triple Net Lease Investments entitled The Little Book of Triple Net Lease Investing (Hipp, Jonathan and Sobelman, David: Createspace: 2010), with the Second Edition released in Calkain has developed a culture of excellence that is evident in every interaction with our professionals. This culture ultimately helps attract and retain the best people and benefits our clients with the wealth of experience each member of Calkain s team possesses. Our commitment to our clients has made Calkain the industry standard for service in the net lease industry. Also, by promoting public service and philanthropy to its employees, Calkain demonstrates its commitment to the communities we do business in. Contact a Broker C O M P A N Y O V E R V I E W 9

10 WASHINGTON DC HEADQUARTERS Worldgate Drive Suite 150 Herndon, VA T: (703) F: (703) NORTHEAST 101 Federal Street Suite 1900 Boston, MA T: (617) SOUTHEAST 400 N. Tampa Street Suite 2660 Tampa, FL T: (813) F: (813) S. Pine Island Road Suite 300 Fort Lauderdale, FL T: (954) Village Parkway, Building 200, Suite 202 Marietta, GA T: (404) DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain Companies and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain Companies. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain Companies and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain Companies and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain Companies and its subsidiaries or the Seller conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.