Kyle (Austin MSA) Burger King Sale Leaseback Portfolio (Individual or Portfolio Sale) Austin & San Antonio MSA s

Transcription

1 Kyle (Austin MSA) Buda (Austin MSA) New Braunfels (San Antonio MSA) Burger King Sale Leaseback Portfolio (Individual or Portfolio Sale) Austin & San Antonio MSA s

2 TABLE OF CONTENTS TABLE OF CONTENTS I. Executive Summary Portfolio Overview Portfolio Highlights List of Properties Location Maps II. Individual Property Profiles Buda, TX Kyle, TX New Braunfels, TX III. Tenant & Location Overviews Tenant Profile Location Overviews

3 DISCLAIMER STATEMENT DISCLAIMER STATEMENT: The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes 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.

4 PORTFOLIO SUMMARY PORTFOLIO SUMMARY: The Boulder Group is pleased to exclusively market for sale a three property Burger King sale leaseback portfolio. Each of the properties can be purchased individually or as a portfolio. Two of the properties are located within the Austin MSA and one of the properties is located within the San Antonio MSA. Each property is strategically located within areas experiencing significant population growth and along Interstate 35. Interstate 35 connects San Antonio to Austin. The portfolio is being offered free and clear of any financing. Each Burger King lease will have 16 years remaining upon close of escrow. The leases will feature 5% rental escalations ever five years throughout the primary term and renewal option periods. The leases will be absolute triple net. The guarantor is an experienced Burger King operator.

5 PORTFOLIO HIGHLIGHTS PORTFOLIO HIGHLIGHTS: All three properties are located within the Austin and San Antonio MSA s Long term leases with 16 years remaining 5% rental escalations in year 6, 11 and in each renewal option period Absolute triple net leases with no landlord responsibilities Experienced Burger King operator Strategic locations along Interstate 35 Tax free state Ability to acquire a critical mass of assets in one particular rapidly expanding geographic region Buda (Austin MSA) Kyle (Austin MSA) New Braunfels (San Antonio MSA)

6 PORTFOLIO OVERVIEW PORTFOLIO OVERVIEW: Price: $6,700,000 Cap Rate: 6.00% Net Operating Income: $402,000 Tenant: Lease Type: Total Building Size: Average Building Size: Burger King NNN 10,688± SF 3,563± SF Average Property Price: $2,233,333 Number of Properties: 3 Average NOI: $134,000 Average Remaining Lease Term: 16 Years Upon Close of Escrow Average Year Built: 2003 New Braunfels (San Antonio MSA)

7 LIST OF PROPERTIES LIST OF PROPERTIES: Property Address City State Building Size Year Built Lease Term NOI Cap Rate Price Burger King S. Interstate 35 Frontage Road Buda TX 2,296 SF Years $122, % $2,033,333 Burger King S. Interstate 35 Frontage Road Kyle TX 4,196 SF Years $140, % $2,333,333 Burger King 101 Farm to Market Road 306 New Braunfels TX 4,196 SF Years $140, % $2,333,333 Totals: 10,688 SF $402, % $6,700,000

8 PORTFOLIO MAP

9 15705 INTERSTATE HIGHWAY 35 BUDA, TX (AUSTIN MSA)

10 15705 INTERSTATE HIGHWAY 35 BUDA, TX (AUSTIN MSA) The 2,296 square foot Burger King building is strategically located along Interstate 35 in a dominant retail corridor in the Austin MSA. Interstate 35 is the only interstate in the Austin MSA and connects Austin to Dallas to the north and San Antonio to the south. Interstate 35 is a significant thoroughfare in the state of Texas. The Burger King has excellent visibility to the approximately 130,000 vehicles per day that travel along Interstate 35. The Burger King is well located in a major retail destination that is anchored by Cabela s, Walmart Supercenter, and HEB. The surrounding area is experiencing tremendous expansion with annual population growth projected to be over 5% within three miles. There are over 45,000 people living within a five mile radius earning average annual household incomes in excess of $95,000. The property is being offered as part of a three property Burger King sale leaseback portfolio but could be purchased individually. The lease will have 16 years remaining upon close of escrow and will feature 5% rental escalations in year 6, 11, and each renewal option period. The leases will be triple net and feature zero landlord responsibilities. Property Overview: (130,000 VPD) 35 INTERSTATE - 35 FRONRAGE ROAD Lease Commencement: Upon Close of Escrow Lease Term: 16 Years Net Operating Income: $122,000 Rental Escalations: 5% in Year 6, 11 & Each Renewal Option Period Renewal Options: Five 5-Year Lease Type: NNN Year Built: 2010 Building Size: 2,296 SF Land Size: 0.80 Acres Property Highlights: Located within the Austin MSA Long term lease with 16 years remaining upon close 5% rental escalations in year 6, 11, and each renewal option period Absolute triple net lease with no landlord responsibilities 5.18% annual projected population growth within three miles of the property Located along Interstate 35 with excellent visibility to approximately 130,000 VPD Dominant retail destination that features Cabela s, Walmart Supercenter, and HEB Recently constructed building Average household incomes in excess of $95,000 annually within five miles

11 15705 INTERSTATE HIGHWAY 35 BUDA, TX (AUSTIN MSA) Demographic Report: Population 3-Mile 5-Mile 7-Mile Total Population 20,445 45, ,023 Total Households 6,782 15,593 43,773 Annual Population Growth 5.18% 4.48% 3.64% Income 3-Mile 5-Mile 7-Mile Median Household Income $77,120 $79,563 $71,449 Average Household Income $91,229 $95,073 $86,470 INTERSTATE 35 (130,000 VPD)

12 18600 INTERSTATE HIGHWAY 35 KYLE, TX (AUSTIN MSA)

13 18600 INTERSTATE HIGHWAY 35 KYLE, TX (AUSTIN MSA) The 4,196 square foot Burger King building is strategically located along Interstate 35. Interstate 35 is the only interstate in the Austin MSA and connects Austin to Dallas to the north and San Antonio to the south. Interstate 35 is a significant thoroughfare in the state of Texas. The Burger King has excellent visibility to the approximately 115,000 vehicles per day that travel along Interstate 35. The Burger King is well located adjacent to a Home Depot and recently opened Evo Entertainment. Evo Entertainment is a 70,000 square foot hybrid entertainment center that features an eleven screen movie theatre, a 14 lane bowling center, an arcade, and a full service restaurant and bar. Amberwood Residential Community, a 600 home neighborhood, is located immediately to the east of the property. Additional retailers located in close proximity to the property include Lowe s, Target, HEB Plus, Kohl s, and Walgreens. The surrounding area is experiencing tremendous expansion with annual population growth projected to be over 5% within three miles. Because of the rapid population growth, Austin Community College recently opened their Hays Campus, which is located less than two miles from the Burger King. There are approximately 65,000 people living within a five mile radius earning average annual household incomes in excess of $81,000. The property is being offered as part of a three property Burger King sale leaseback portfolio but could be purchased individually. The lease will have 16 years remaining upon close of escrow and will feature 5% rental escalations in year 6, 11, and each renewal option period. The leases will be triple net and feature zero landlord responsibilities. Property Overview: Lease Commencement: Upon Close of Escrow Lease Term: 16 Years Net Operating Income: $140,000 Rental Escalations: 5% in Year 6, 11 & Each Renewal Option Period Renewal Options: Five 5-Year Lease Type: NNN Year Built: 2000 Building Size: 4,196 SF Land Size: 0.75 Acres KYLE C INTERSTATE - 35 FRONTAGE ROAD (115,000 VPD) 35 Property Highlights: Located within the Austin MSA Long term lease with 16 years remaining upon close 5% rental escalations in year 6, 11, and each renewal option period Absolute triple net lease with no landlord responsibilities 5.03% annual projected population growth within three miles of the property Located along Interstate 35 with excellent visibility to approximately 115,000 VPD Adjacent to a Home Depot and Evo Entertainment (11-screen theater & bowling alley) Additional retailers located in close proximity to the property include Lowe s, Target, HEB Plus, Kohl s, and Walgreens Approximately 65,000 people living within a five mile radius earning average annual household incomes in excess of $81,000

14 18600 INTERSTATE HIGHWAY 35 KYLE, TX (AUSTIN MSA) Demographic Report: Population 3-Mile 5-Mile 7-Mile Total Population 30,230 63,348 78,324 Total Households 9,429 19,683 24,658 Annual Population Growth 5.03% 4.38% 4.11% FUTURE INTERSTATE 35 (115,000 VPD) Income 3-Mile 5-Mile 7-Mile Median Household Income $65,411 $69,068 $71,708 Average Household Income $75,180 $81,126 $85,010 AMBERWOOD RESIDENTIAL COMMUNITY (600 HOMES)

15 101 FARM TO MARKET 306 NEW BRAUNFELS, TX (SAN ANTONIO MSA)

16 101 FARM TO MARKET 306 NEW BRAUNFELS, TX (SAN ANTONIO MSA) 306 The 4,196 square foot Burger King building is strategically located along Interstate 35 in a dominant retail corridor in the San Antonio MSA. The Burger King has excellent visibility to the approximately 115,000 vehicles per day that travel along Interstate 35. The Burger King is well located in a major retail destination. The property is located across the interstate from the Town Center at Creekside, which is anchored by Target, JCPenney, Best Buy, Belk, Dick s Sporting Goods, TJ Maxx, Hobby Lobby and Walgreens. Additionally, the property is benefitted by its proximity to the recently constructed Resolute Health Hospital (138 beds). The Burger King is located in the immediate vicinity to a 1.3 million square foot Walmart distribution center that employs over 700 people. The surrounding area is experiencing tremendous expansion with annual population growth projected to be over 3.1% within three miles. There are approximately 60,000 people living within a five mile radius earning average household incomes of $73,000. The property is being offered as part of a three property Burger King sale leaseback portfolio but could be purchased individually. The lease will have 16 years remaining upon close of escrow and will feature 5% rental escalations in year 6, 11, and each renewal option period. The leases will be triple net and feature zero landlord responsibilities. Property Overview: Lease Commencement: Upon Close of Escrow Lease Term: 16 Years Net Operating Income: $140,000 Rental Escalations: 5% in Year 6, 11 & Each Renewal Option Period Renewal Options: Five 5-Year Lease Type: NNN Year Built: 2000 Building Size: 4,196 SF Land Size: 0.78 Acres S INTERSTATE - 35 FRONTAGE ROAD 35 (115,000 VPD) Property Highlights: Located within the San Antonio MSA Long term lease with 16 years remaining upon close 5% rental escalations in year 6, 11, and each renewal option period Absolute triple net lease with no landlord responsibilities 3.16% annual projected population growth within three miles of the property Located along Interstate 35 with excellent visibility to approximately 115,000 VPD Dominant retail destination that features Target, JCPenney, Best Buy, Belk, Dick s Sporting Goods, TJ Maxx, Hobby Lobby and Walgreens Immediate vicinity to a 1.3 million square foot Walmart distribution center that employs over 700 people

17 101 FARM TO MARKET 306 NEW BRAUNFELS, TX (SAN ANTONIO MSA) Demographic Report: Population 3-Mile 5-Mile 7-Mile Total Population 22,665 58,491 78,141 Total Households 8,475 22,025 28,653 Annual Population Growth 3.16% 2.55% 3.01% INTERSTATE 35 (115,000 VPD) DISTRIBUTION CENTER Income 3-Mile 5-Mile 7-Mile Median Household Income $55,756 $57,643 $60,047 Average Household Income $69,949 $72,998 $76,904 (138 BEDS)

18 TENANT PROFILE TENANT PROFILE: Burger King (NYSE: BKW) is a global chain of hamburger fast food restaurants. It is the second largest fast food hamburger chain in the world. As of December 5, 2014, Burger King operated approximately 14,000 locations in 79 countries worldwide. Burger King primarily sells hamburgers, cheeseburgers, chicken, french fries and is famous for their signature menu item, the Whopper. Burger King offers customers counter service as well as drive-thru service. As an effort to enhance cash flow and strengthen relationships with key franchisees, Burger King is working towards a 100% franchised business model. Currently, over 99% of all Burger King locations are privately owned and operated by franchisees. The Burger King franchisee in the sale leaseback is an experienced operator. He worked for Burger King corporate for over fifteen years in senior operations positions and an additional fifteen years as a franchisee. He participated in the development of one of the first co-branded Burger King in a convenience store. He later left Burger King to partner with the convenience store owners to develop approximately thirty co-branded locations throughout Texas. Today, there are five Burger King locations that the franchisee operates. Website: Number of Locations: 14,000 Stock Symbol: BKW: NYSE Market Capitalization: $11 billion Year Founded: 1954 Headquarters: Miami, FL

19 LOCATION OVERVIEWS LOCATION OVERVIEWS: Austin is the capital of Texas and the seat of Travis County. Located in Central Texas, Austin is the 11th most populous city in the United States and the fourth-most populous city in Texas. The Austin-Round Rock MSA had a 2013 estimated population of 1,883,051. Forbes ranked Austin the fastest growing metropolitan area in the country. Austin is home to the University of Texas at Austin, the flagship institution of the University of Texas System with over 50,000 students and is also home to Austin Community College, the 15th largest college in the United States with enrollment in excess of 70,000 students. Government and education play a vital role in the Austin economy. Additionally, Austin is a hub for the technology industry with a strong presence of semiconductor manufacturing and software. Austin s largest employers include the Austin Independent School District, the City of Austin, Dell, the U.S. Federal Government, Freescale Semiconductor, IBM, St. David s Healthcare Partnership, Seton Family of Hospitals, the State of Texas, the Texas State University, and the University of Texas at Austin. Forbes listed Austin as the city with the most economic momentum moving forward. Keep Austin Weird has been a local motto for years, featured on bumper stickers and T-shirts. This motto has not only been used in promoting Austin s eccentricity and diversity, but is also meant to bolster support of local independent businesses. Austin is home to a plethora of notable events including Austin City Limits, South by Southwest, the Formula One United States Grand Prix, and the X-Games. Austin lies between two major north-south freeways: Interstate 35 to the east and the Mopac Expressway (Loop 1) to the west. U.S. Highway 183 runs from northwest to southeast, and State Highway 71 crosses the southern part of the city from east to west, completing a rough box around central and north-central Austin. Austin is the largest city in the United States to be served by only one Interstate Highway. Austin is served by the Austin-Bergstrom International Airport, which is located approximately five miles southeast of the city.

20 LOCATION OVERVIEWS LOCATION OVERVIEWS: San Antonio is the seventh most populous city in the United States of America and is the second most populous city in the state of Texas with a population of 1,409,019. It was the fastest growing of the top 10 largest cities in the United States from 2000 to 2010, and the second from 1990 to As of 2013, the San Antonio MSA had an estimated population of 2,270,000 people, making it the 25th largest metropolitan area in America. More than 26 million people visit San Antonio per year. According to Forbes, San Antonio is the ninth fastest growing metro area. Additionally, Forbes ranked San Antonio second nationally for the most economic momentum moving forward. San Antonio is home to six Fortune 500 companies and the South Texas Medical Center, the only medical research and care provider in the South Texas region. The Fortune 500 companies headquartered in San Antonio include Valero Energy Corporation, Tesoro Corporation, USAA, CST Brands Inc, NuStar Energy, and Clear Channel. San Antonio is strategically located as a significant distribution hub for products exchanged between Mexico and the United States. Over 50% of all goods exchanged between the US and Mexico travel through San Antonio. San Antonio holds much of its economic base in the tourism, health, and biotech industries but has also experienced strong and growing activity related to exploration and production in the Eagle Ford Shale. Over 26 million people visit San Antonio per year. The Alamo and the Riverwalk remain amongst the most visited destinations. The city is home to the five-time NBA champion San Antonio Spurs and hosts the annual San Antonio Stock Show & Rodeo, one of the largest such events in the country. San Antonio is served by four major interstates: Interstate 35, Intestate 10, Interstate 37, and Interstate 410. The San Antonio International Airport (SAT) is located in Uptown San Antonio, approximately eight miles north of Downtown.

21 Randy Blankstein President John Feeney Vice President Dundee Road, Suite 1801 Northbrook, IL