Offering Memorandum. Naples, FL

Transcription

1 Offering Memorandum Naples, FL

2 CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap Real Estate Investment Services of Florida, Inc. ( Marcus & Millichap ) and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property 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. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. NON-ENDORSEMENT NOTICE Marcus & Millichap Real Estate Investment Services, Inc. ( M&M ) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

3 exclusively listed Investment Sales: Exclusively listed by: OFFICES NATIONWIDE James Medefind Jim Shiebler First Vice President Investments Associate TAMPA, FL TAMPA, FL Director, National Retail Group National Retail Group (813) (239) License: SL License: SL

4 Table of Contents Investment Summary... 6 Property Details Property Photos... 8 Regional Map Local Map...11 Investment Overview Lease Detail...15 Tenant Detail COMPETITIVE SET Sales Comparables Map Sales Comparables Overview Sales Comparables Detail S Demographic Summary Demographic Analysis...27 LOCATION Location Detail... 30

5 description

6 EXECUTIVE SUMMARY Investment Highlights Located on Airport Pulling Road., just off Pine Ridge Road with a combined average daily traffic count of 84K+ Located in the center of a busy retail corridor surrounded by Target, Publix, Bealls and Ross Doherty Enterprises Inc. Guaranteed lease by Regional powerhouse franchisee with 140+ restaurants Unparalleled Trade Area Demographics Investment Summary Marcus & Millichap is pleased to present for sale this absolute-net leased, fee-simple Applebee s which is operated by Doherty Enterprises, Inc, a franchisee of seven national restaurant brands with over 140 locations throughout Florida, Georgia, New York, and New Jersey. The lease is guaranteed by Doherty Apple Florida,LLC, a subsidiary of Doherty Enterprises with an estimated 43 locations. This well-located Applebee s is near the corner Airport Pulling Road and Pine Ridge Road, a major intersection in Naples. It is an outparcel to a 50,000+ square-foot shopping center anchored by Walmart and across the street from a Publix anchored shopping center and Target anchored shopping center. This restaurant benefits from the heavy traffic of surrounding retailers. Adjacent outparcels include Fifth Third Bank, Boston Market, Wells Fargo, CVS, Arby s, Taco Bell, Bank of America and Chase Bank. Pine Ridge Road is the main East-West thoroughfare that connects I-75 and the city of Naples with an average daily traffic count of over 44,000 cars per day. Airport Pulling Road is a major North-South artery within the city of Naples and provides direct access to several dozen planned residential developments, high income golf communities, and is a convenient bypass for locals to avoid the heavy traffic on I-75. Naples is a principal city of the Naples-Marco Island, Florida MSA, which has a population of 322,000+. With a convenient location in southwest Florida, Naples is known for its world class fishing and average annual temperature of 75 degrees. It is one of the wealthiest cities in the United States, with the second highest proportion of millionaires per capita in the US. This is an excellent opportunity to acquire a strategically located passive, absolute net leased investment that benefits from Florida s No State Income Tax. 6

7 THE OFFERING Property Applebee's Property Address 5082 AIRPORT PULLING RD N, Naples, FL SITE Gross Leasable Area 4,909 SF Ownership Fee Simple Year Built 1995 Number of Stories 1 Parking 90 Spaces Parking Ratio 18.33:1,000 SF PARCELS # of Tax Parcels 1 APN Acres +/ Acres CONSTRUCTION Foundation Slab on Grade Framing Concrete Block Exterior Stucco Parking Surface Asphalt ZONING Registered Land Use PUD MECHANICAL HVAC Fire Protection Central Yes 7

8 EXECUTIVE SUMMARY 39,000+ Cars Per Day Pine Ridge Road Walgreens 57,000+ Cars Per Day Airport Pulling Road Residential Barron Collier High School Subject Property 8

9 Airport Pulling Road Subject Property 9

10 EXECUTIVE SUMMARY Regional Map Subject Property 10

11 Local Map Subject Property 11

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13 financials

14 Investment Overview EXECUTIVE SUMMARY OFFERING Price $4,508,000 Down Payment $1,352,400 Cap Rate 5.40% Price Per Foot $918 Net Operating Income $243,453 INVESTMENT Property Name Applebee's Property Address 5082 AIRPORT PULLING RD N, Naples, FL Property Sub-Type Net Leased Restaurant Ownership Fee Simple Tenant Doherty Enterprises, Inc. Lease Guarantor Franchisee Headquartered Allendale, NJ Franchisee No. of Locations 140+ Units Website Stock Symbol APPB Options to Renew Four, 5-Year Options Options to Terminate None First Right of Refusal Yes FINANCING Proposed or Existing Proposed New Loan-to-Purchase Price Ratio 70% Interest Rate 5% Term 7-10 Years Amortization Period 25 Years 14

15 Lease Detail LEASE ABSTRACT Rent Commencement 7/31/2007 Lease Expiration 7/31/2027 Gross Leasable Area 4,909 SF Original Term 20 Years Available Options Four, 5-Year Options Lease Term Remaining 10.5 Years Lease Type NNN Roof & Structure Tenant Responsible Increases 2.00% Every Two Years Other Provisions Percentage Rent Clause Yes Assignment & Subletting Yes Right of First Refusal Yes Right to Terminate None Lease Guarantee Franchisee RENT SCHEDULE Base Term Annual Rent Annual Rent PSF Current Rent $243,453 $ /1/2019 to 12/31/2020 $248,323 $ /1/2021 to 12/31/2022 $253,289 $ /1/2023 to 12/31/2024 $258,355 $ /1/2024 to 12/31/2026 $263,522 $ /1/2027 to 7/31/2027 $268,792 $

16 EXECUTIVE SUMMARY Tenant Summary Tenant Summary Applebee s International, Incorporated, is an American company which develops, franchises and operates the Applebee s Neighborhood Grill and Bar restaurant chain. The tenant operating this location is Doherty Enterprises, Incorporated, which is a seasoned restaurant franchisee. In 1985, Ed Doherty started Doherty Enterprises, Incorporated (Doherty) a company focused on growing franchise restaurants through partnerships with strong national brands who are leaders in their restaurant categories and possess strong marketing teams. Today, Doherty is a regional powerhouse with over 140 restaurants representing eight different concepts in New York, New Jersey, Georgia and Florida with a strategic plan that calls for continued new unit growth. Doherty, is currently a franchisee of seven iconic national brands including Applebee s, Chevy s, Noodles & Company, Panera Bread, Quaker Steak & Lube, the Shannon Rose and Spuntino Wine Bar. Recently, Doherty acquired 38 Applebee s Neighborhood Grill & Bar restaurants throughout Florida and Georgia. The acquisition is the largest ever for the company, which now owns 140 restaurants, 100 of which are Applebee s locations. 16

17 Applebee s started with the same philosophy they follow today, which is a focus on serving good food to good people. The Applebee s chain was started by Bill and T. J. Palmer who opened their first restaurant, T.J. Applebee s Rx for Edibles & Elixirs, in Decatur, Georgia, on November 19, After opening their second restaurant the pair sold their company to W. R. Grace and Company in As part of the transaction, Bill Palmer was named president of the Applebee s Division, an indirect subsidiary of W. R. Grace and Company. In that capacity, Palmer guided the operation from its entrepreneurial beginnings to a full-fledged franchise system. He became an Applebee s franchisee in 1985 and today owns more than three dozen Applebee s restaurants. Today, Applebee s Neighborhood Grill & Bar restaurants are known for their fun and family-friendly neighborhood atmosphere and signature grill & bar menu items that guests can only get at Applebee s. On July 16, 2007, IHOP Corp. announced that it agreed to buy Applebee s International for about $2.1 billion. Applebee s shareholders would receive $25.50 in cash per share, representing a 4.6 percent premium to the closing price on July 13, After the acquisition, IHOP Corporation changed its name to DineEquity, Incorporated, which now franchises nearly all of its restaurants. With more than 3,700 Applebee s and IHOP restaurants in 19 countries and a 99 percent franchised system of more than 400 franchisee partners, DineEquity is one of the largest full-service restaurant companies in the world. 17

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19 comparables SALE

20 EXECUTIVE SUMMARY Recent Sales Map Recent Sale Comparables Subject Property Applebee's, Maitland, FL Applebee's, Ocala, FL Applebee's, Delray Beach, FL Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved.

21 Sales Comp Overview Average Cap Rate: 5.38% Average Price Per Foot: $717 $1, % $1,000 $ % 7.00% $ % $ % $600 $500 $ % 5.00% 4.50% $300 Subject Property Applebee's Maitland, FL Applebee's Ocala, FL Applebee's Delray Beach, FL Series2 $918 $845 $775 $531 Series1 5.40% 5.39% 5.25% 5.50% 4.00% 21

22 Site Plan EXECUTIVE SUMMARY Applebee's 298 Southhall Lane, Maitland, FL Price (Sold) $4,080,000 Date Sold 12/31/2016 Gross Leasable Area 4,831 Price Per SF $845 Year Built/Renovated 2001 Capitalization Rate 5.39% Lease Type NNN Lease Expiration 15 Years Remaining Increases 1% Annual Applebee's 2615 SW 19th Avenue Road, Ocala, FL Price (Sold) $4,350,000 Date Sold 7/6/2016 Gross Leasable Area 5,616 Price Per SF $775 Year Built/Renovated 2003 Capitalization Rate 5.25% Lease Type NNN Lease Expiration 16 Years Remaining Increases 1% Annual 22 Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved.

23 Applebee's Jog Road, Delray Beach, FL Price (Sold) $2,525,000 Date Sold 4/7/2016 Gross Leasable Area 4,755 Price Per SF $531 Year Built/Renovated 2001 Capitalization Rate 5.50% Lease Type NNN Lease Expiration 6 Years Remaining Increases 5% Every Five Years 23

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25 demographics AREA S

26 EXECUTIVE SUMMARY Demographic Summary Geography: 5 Miles Population In the identified area, the current year population is 136,898. In 2010, the Census count in the area was 127,791. The rate of change since 2010 was 1.11% annually. The five-year projection for the population in the area is 147,551 representing a change of 1.51% annually from 2016 to Currently, the population is 48.3% male and 51.7% female. Households The household count in this area has changed from 56,297 in 2010 to 60,342 in the current year, a change of 1.12% annually. The five-year projection of households is 65,085, a change of 1.52% annually from the current year total. Average household size is currently 2.26, compared to 2.26 in the year The number of families in the current year is 38,540 in the specified area. Income Current median household income is $57,496 in the area, compared to $54,149 for all U.S. households. Median household income is projected to be $67,080 in five years, compared to $59,476 for all U.S. households. Current average household income is $92,994 in this area, compared to $77,008 for all U.S. households. Average household income is projected to be $103,878 in five years, compared to $84,021 for all U.S. households. Current per capita income is $40,802 in the area, compared to the U.S. per capita income of $29,472. The per capita income is projected to be $45,574 in five years, compared to $32,025 for all U.S. households. Race & Ethnicity Persons of Hispanic origin represent 23.0% of the population in the identified area compared to 17.9% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race/ethnic groups, is 52.8 in the identified area, compared to 63.5 for the U.S. as a whole. Housing Currently, 46.7% of the 83,528 housing units in the area are owner occupied; 25.5%, renter occupied; and 27.8% are vacant. Currently, in the U.S., 55.4% of the housing units in the area are owner occupied; 32.9% are renter occupied; and 11.7% are vacant. In 2010, there were 77,985 housing units in the area % owner occupied, 22.5% renter occupied, and 27.8% vacant. The annual rate of change in housing units since 2010 is 3.10%. Median home value in the area is $405,696, compared to a median home value of $198,891 for the U.S. In five years, median value is projected to change by 1.03% annually to $427,

27 S 1-MILE 3-MILES 5-MILES INCOME S 1-MILE 3-MILES 5-MILES 2016 Population 7,451 50, , Median Household Income $55,850 $61,584 $57, Population 8,205 55, , Median Household Income $62,423 $73,022 $67, Households 3,791 24,483 60, Average Household Income $99,309 $103,382 $92, Households 4,169 26,712 65, Average Household Income $111,035 $115,760 $103, Owner Occupied Housing Units 2,251 16,559 39, Per Capita Income $49,992 $50,177 $40, Renter Occupied Housing Units 1,540 7,924 21, Per Capita Income $55,839 $56,188 $45,574 HOUSEHOLDS 1-MILE 3-MILES 5-MILES INCOME 1-MILE 3-MILES 5-MILES 2010 Households 3,510 22,318 56,297 $0 - $14, % 9.1% 9.3% 2016 Households 3,791 24,483 60,342 $15,000 - $24, % 8.0% 8.9% 2021 Households 4,169 26,712 65,085 $25,000 - $34, % 9.3% 10.8% 2016 Average Household Size $35,000 - $49, % 14.2% 14.3% 2016 Owner Occupied Housing Units 2,251 16,559 39,041 $50,000 - $74, % 16.8% 17.4% 2016 Renter Occupied Housing Units 1,540 7,924 21,301 $75,000 - $99, % 11.9% 11.4% 2016 Median Age $100,000 - $149, % 12.8% 13.1% 2021 Average Household Size $150,000 - $199, % 5.8% 5.5% 2021 Owner Occupied Housing Units 2,464 18,027 41,968 $200, % 12.1% 9.3% 2021 Renter Occupied Housing Units 1,705 8,684 23,117 Median Household Income $55,850 $61,584 $57, Median Age Average Household Income $99,303 $103,382 $92, Annual Population Rate 2.0% 1.7% 1.5% Per Capita Income $49,992 $50,177 $40, Annual Households Rate 1.9% 1.7% 1.5% 27

28 EXECUTIVE SUMMARY Traffic Counts Rings: 1, 3, 5 Miles 28

29 location & AREA

30 EXECUTIVE SUMMARY Naples Perched on the Gulf of Mexico in southwest Florida, Naples is well known for its highend shopping, world-class culture and sophisticated dining. It s an affordable family destination that appeals to nature lovers and beach aficionados. Fifth Avenue South and Third Street South are the focal points for Naples shopping in the historic downtown area, with numerous art galleries, clothing boutiques, and décor shops. Naples has many up-scale hotels and resorts to compliment miles of gulf shore beaches. Sports enthusiasts spend glorious days pursuing their favorite activity, from golf and tennis, to deep sea fishing. There are restaurants to suit every taste and budget. Even though it is a busy and cosmopolitan city, Naples offers easy access to secluded islands and the wilderness of the Everglades. 30

31 Metro Naples is a principle city of the Naples-Marco Island, Florida Metro Area with a population of about 322,000. Located in southwest Florida off of U.S. Highway 41 between Miami to the east and Fort Myers to the north, this area s mild climate and abundant fish and game likened it to the sunny Italian peninsula. Naples s economy is based largely on tourism and was historically dependent on real estate development and agriculture. Due to its proximity to the Everglades and Ten Thousand Islands, Naples is very popular among ecotourists. With more than 1.8 million visitors staying in hotels and other vacation rentals, Collier County generated over $1.95 billion just in the past year. The average household income in Naples is above the state average at $78,000 with a median age of 65, making it a popular, upscale retirement community. In the past year, Naples topped the list of metropolitan areas that are expected to see the most economic growth with an expected forecast of 4.9 percent in

32 EXECUTIVE SUMMARY Infrastructure Collier County has a strong infrastructure in place including four airports, close proximity to the Southwest Florida International Airport, and direct access to I-75. Naples is world renowned for its beautiful beaches, limitless recreational opportunities and over 80 championship golf courses and is known as one of the wealthiest retirement areas in the U.S. Many retirees are sitting on strong investments that have skyrocketed with the strong equity markets over the past five years. These gains are fueling spending on construction and consumer goods in the area and are promoting heavy tourism throughout the southwest Florida region. 32

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34 exclusively listed Exclusively listed by: OFFICES NATIONWIDE