OFFERING MEMORANDUM. Jack in the Box 4703 GREENVILLE AVE DALLAS, TX

Transcription

1 OFFERING MEMORANDUM Jack in the Box 4703 GREENVILLE AVE DALLAS, TX

2 EXCLUSIVELY LISTED BY kevin chang Associate DIR (310) MOB (951) LIC # (CA) Gary chou FVP & Senior Director Gary.Chou@matthews.com DIR (310) MOB (714) LIC # (CA) Kyle Matthews Broker of Record 2 Matthews Lic Real # Estate Investment Services

3 C O N T E N T S 4 INVESTMENT OVERVIEW Investment Highlights 6 FINANCIAL ANALYSIS Executive Summary Annualized Operating Data Tenant Summary 8 TENANT OVERVIEW Jack in the Box Overview 10 PROPERTY OVERVIEW Site Description Parcel Map Surrounding Retail 14 AREA OVERVIEW Overview MSA Overview Jack in the Box,, TX 3

4 investment Highlights RARE GENERATIONAL ASSET CLOSE PROXIMITY TO SOUTHERN METHODIST UNIVERSITY SMU is ranked #56 on U.S. News & World Report s 2017 National Universities list and is home to over 11,700 Mustangs each academic season (2016) As an NCAA Division 1 school, SMU hosts a variety of sporting events year-round supplying a healthy flow of business to surrounding retailers DALLAS IS THE 9TH LARGEST MSA IN THE COUNTRY AND IS RANKED #24 ON FORBES 2017 LIST OF AMERICA S FASTEST GROWING CITIES US Census reports that the -Fort Worth-Arlington, Texas, and Houston-The Woodlands-Sugar Land, Texas, metro areas were the two largest numeric-gaining metro areas between 2015 and 2016, increasing by more than 100,000 each. IRREPLACEABLE REAL ESTATE FUNDAMENTALS There are over 30 different apartment complexes in a 1-mile radius from the property - Over 24,500 people in a 1-mile radius, 186,000 people in a 3-mile radius and 434,500 people in a 5-mile radius Average Household incomes in a 1, 3 and 5-mile radius exceeds $103,000. HEALTHY TRAFFIC COUNTS Greenville Ave supports over 25,000 vehicles per day and U.S. Hwy 75 supports over 346,000 in daily commuter traffic Jack in the Box can be easily seen and accessed from both directions of traffic! ABSOLUTE NNN INVESTMENT ZERO landlord responsibilities with maintenance, taxes and insurance paid by tenant for the landlord Ideal for out of state investors looking for passive income INCOME TAX FREE STATE Texas has no state income tax making this a great investment for investors also living in an income tax free state! EXCELLENT TENANT WITH STRONG INCENTIVE TO STAY CORPORATELY GUARANTEED LEASE Jack in the Box, Inc. is among the nation's leading fast-food hamburger chains, with more than 2,250 quick-serve restaurants in 21 states GROUND LEASE INVESTMENT Jack in the Box holds the right to depreciate the improvements and is paying lower rent than many other quick service tenants on new ground leases in this area (Raising Cane s and El Pollo Loco to name a few) HIGH BARRIERS TO ENTRY/EXIT The dense location makes it difficult for competitors to enter and take Jack in the Box s market share Jack in the Box will find it difficult to leave because of the lack of comparable real estate at the current rent they are paying 4 Matthews Real Estate Investment Services

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6 Jack in the Box 4703 Greenville Ave, TX List Price... $3,250,000 CAP Rate - Current % Gross Leasable Area... ± 2,896 SF Lot Size... ± 0.75 Acres Year Built Annualized Operating Data Monthly Rent Annual Rent Rent/SF Cap Rate Current - 4/8/2021 $11, $141,441 $ % Option 1: 4/9/2021-4/8/2026 $13, $162,657 $ % Option 2: 4/9/2026-4/8/2031 $15, $187,056 $ % Option 3: 4/9/2031-4/8/2036 $17, $215,114 $ % Option 4: 4/9/2036-4/8/2041 $20, $247,381 $ % Tenant Summary financial Analysis 6 Matthews Real Estate Investment Services Tenant Trade Name Jack in the Box Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 20 Years Lease Commencement 2/26/2001 Rent Commencement 4/9/2001 Lease Expiration 4/8/2021 Term Remaining ± 3.47 Years Increases 15% Every 5 Years Options Four (4), 5-Year Options

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8 Tenant Overview Tenant Overview 8 Matthews Real Estate Investment Services

9 Company Name Ownership Jack in the Box Inc. (NASDAQ: JACK) Public No. of Locations ± 2,250 No. of Employees ± 22,200 Website Headquartered San Diego, California Year Founded 1951 JACK IN THE BOX OVERVIEW Jack in the Box is among the leading quick-service restaurant businesses in the US. The company operates and franchises about 2,250 of its flagship hamburger outlets in California, Texas, and more than 20 other states. Jack in the Box offers such standard fast-food fare as burgers, fries, and soft drinks, as well as salads, tacos, and breakfast items. About 415 locations are company-owned, while the rest are franchised. In addition to its mainstay burger business, the company runs a chain of more than 660 Qdoba Mexican Grill fast-casual eateries through its Qdoba Restaurant subsidiary. STRATEGY Unlike some of its fast-food rivals, Jack in the Box has traditionally had a large number of corporate locations compared to its franchised outlets. In recent fiscal years, the company has moved towards refranchising more locations to bring its franchise ownership rate closer to 80%. Jack in the Box leans on quirky marketing efforts and an almost constant stream of new menu items. Additionally, Jack in the Box has also been working to upgrade many of its outlets with modern interior designs, complete with flat-screen televisions and ceramic tile floors. Jack in the Box,, TX 9

10 the offering Property Name Property Address Assessor s Parcel Number Site Description Number of Stories Jack in the Box 4703 Greenville Ave, TX E One Year Built 2001 Gross Leasable Area (GLA) Lot Size Type of Ownership Parking Landscaping Topography ± 2,896 SF ± 0.75 Acres (32,840 SF) Ground Lease ± 50 Surface Spaces Professional Generally Level Parcel MAp College Blvd ± 40,116 Property overview 10 Matthews Real Estate Investment Services

11 Tenant MAp Greenville Ave ± 27,000 ADT Jack in the Box,, TX 11

12 Northbound ± 30 Apartment Complexes Knockouts Vespa E. University Blvd Greenville Ave ± 27,000 ADT Subject Property 12 Matthews Real Estate Investment Services

13 Southbound Downtown 5 Mockingbird Apartments Mockingbird Flats Lincoln on University Apartments Vespa Greenville Ave ± 27,000 ADT Subject Property Jack in the Box,, TX 13

14 Downtown 5 Mockingbird Apartments Mockingbird Apartments Southern Methodist University Hwy 75 ± 346,000 ADT Subject Property Greenville Ave 14 Matthews Real Estate Investment Services

15 , TX Area Overview The -Fort Worth Metroplex is the largest metropolitan area in the South, and the fourth largest in the United States. It is a center for sporting events, tourism and manufacturing. and its suburbs have one of the highest concentrations of corporate headquarters in the United States. Business management and operations is a major part of the economy. The Metroplex also contains the largest Information Technology industry base in the state. Additionally, like the state overall, North Texas has been experiencing booming population growth. Property Demographics POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 23, , , Estimate 22, , , Census 20, , , Census 21, , ,862 Growth % 5.69% 6.39% Growth % 7.73% 9.60% HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2022 Projection 11,340 83, , Estimate 10,627 79, , Census 9,512 72, ,974 Growth % 6.07% 6.96% INCOME 1 Mile 3 Mile 5 Mile 2017 Est. Average Household Income $118,457 $125,346 $111,245 FORTUNE 500 COMPANIES Company Location Exxon Mobil Irving AT&T Energy Transfer Equity American Airlines Group Fort Worth Tenet Healthcare Southwest Airlines Kimberly-Clark Irving Fluor Corporation Irving Holly Frontier Texas Instruments J.C. Penney Plano Jacobs Engineering D.R. Horton Fort Worth GameStop Grapevine Dean Foods Alliance Data Systems Plano Trinity Industries Dr Pepper Snapple Group Plano Commercial Metals Irving Celanese Energy Future Holdings 15 Matthews Real Estate Investment Services Jack in the Box,, TX 15

16 Southern Methodist University (SMU) Founded in 1911, Southern Methodist University (SMU) is a private research university in. The university is owned by the South Central Jurisdiction of the United Methodist Church. There are also two satellite campuses in Plano, Texas and Taos, New Mexico. The main campus has seven schools for departments in humanities and sciences, engineering, arts, education, theology, business, and law. They accept over 11,000 students each semester. SMU has been recognized several times, including #1 in Executive MBA Programs and 5th out of the top 100 entrepreneurship. The Mustangs, SMU s athletic teams participate in the NCAA s Division 1. The football team has brought home many victories and have been a leading force in college football. They have made several bowl appearances in recent years and always play against their rivals, Texas Christian University, for the Iron Skillet. SMU has produce a large amount of notable professional football players, including Doak Walker, Erick Dickerson, and Jerry Ball. 16 Matthews Real Estate Investment Services

17 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Jack in the Box located at 4703 Greenville Ave,, TX ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Jack in the Box,, TX 17

18 Information About Brokerage Services Texas law requires all real estate license holders to give the following informaɵon about brokerage services to prospecɵve buyers, tenants, sellers and landlords TYPES OF REAL ESTATE LICENSE HOLDERS:. A BROKER is responsible for all brokerage acɵviɵes, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker s own interests; Inform the client of any material informaɵon about the property or transacɵon received by the broker; Answer the client s quesɵons and present any offer to or counter-offer from the client; and Treat all parɵes to a real estate transacɵon honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a wriʃen lisɵng to sell or property management agreement. An owner's agent must perform the broker s minimum duɵes above and must inform the owner of any material informaɵon about the property or transacɵon known by the agent, including informaɵon disclosed to the agent or subagent by the buyer or buyer s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a wriʃen representaɵon agreement. A buyer's agent must perform the broker s minimum duɵes above and must inform the buyer of any material informaɵon about the property or transacɵon known by the agent, including informaɵon disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parɵes the broker must first obtain the wriʃen agreement of each party to the transacɵon. The wriʃen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaɵons as an intermediary. A broker who acts as an intermediary: Must treat all parɵes to the transacɵon imparɵally and fairly; May, with the parɵes' wriʃen consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instrucɵons of each party to the transacɵon. Must not, unless specifically authorized in wriɵng to do so by the party, disclose: ᴑ that the owner will accept a price less than the wriʃen asking price; ᴑ ᴑ that the buyer/tenant will pay a price greater than the price submiʃed in a wriʃen offer; and any confidenɵal informaɵon or any other informaɵon that a party specifically instructs the broker in wriɵng not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacɵon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker s duɵes and responsibiliɵes to you, and your obligaɵons under the representaɵon agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This noɵce is being provided for informaɵon purposes. It does not create an obligaɵon for you to use the broker s services. Please acknowledge receipt of this noɵce below and retain a copy for your records. Kyle Matthews/Matthews Retail Group Inc kyle.matthews@matthews.com (310) Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Phone Kyle Matthews kyle.matthews@matthews.com (310) Designated Broker of Firm License No. Phone Licensed Supervisor of Sales Agent/ Associate License No. Phone Sales Agent/Associate s Name License No. Phone Regulated by the Texas Real Estate Commission Buyer/Tenant/Seller/Landlord Initials Date InformaƟon available at IABS 1-0

19 OFFERING MEMORANDUM Jack in the Box 4703 GREENVILLE AVE DALLAS, TX exclusively listed by kevin chang Associate DIR (310) MOB (951) LIC # (CA) Gary chou FVP & Senior Director Gary.Chou@matthews.com DIR (310) MOB (714) LIC # (CA) Kyle Matthews Broker of Record Lic # Jack in the Box,, TX 19