1765 W Mount Houston Road

Transcription

1 1765 W Mount Houston Road Houston, Texas Investment Overview William (Bill) Kahng WilliamKahng@gmail.com DRE #

2 Investment & Demographic Highlights $2,499,000 (5.92% Cap Rate) Corporate Guarantee Absolute NNN Lease No Landlord responsibilities Signalized intersection with over 21,000 cars per day Strong area demographics with growing population Hard corner lot with easy ingress/egress Surrounded by national retail chains, e.g., McDonald s, Burger King, Subway, etc. Population Estimate Population Estimate 33,178 26,713 20,654 Average HH Income $43,657

3 William (Bill) Kahng DRE # W Mount Houston Road Houston, TX Investment Overview Sale Price $2,499,000 Current CAP Rate 5.92% Building Size 2,900 sq.ft. Lot Size 30,492 Price per SF $ Year Built 2000 Net Income Current Net Income $147,996 Plus Recapture NNN Net Operating Income $147,996 Lease Overview References to square footage, income, expenses and other factors are approximate. Buyer must independently verify the accuracy and completeness Of all information contained herein and bears all risk for any inaccuracies.

4 Guarantee Jack in the Box, Inc (NASDAQ: JACK) Rent Commencement June 1, 2001 Original Lease Expiration May 31, 2019 Current Lease Expiration May 31, 2024 (1 st Option Exercised) Remaining Options 3 x 5 years Rent Increases CPI every 5 years (Max 10%) Next increase in June 1, 2021 Lease Type Absolute NNN (No LL Responsibilities)

5 Investment Description The subject property offers an investor a secure corporate backed lease with Jack in the Box, Inc. Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, California, is a quick service hamburger chain that operates and franchises over 2,200 Jack in the Box restaurants in 21 states across the country, concentrated in California and Texas. The company reported FY 2017 earnings of $138.3 Million, a $12 Million increase over FY This Jack in the Box has operated successfully at the location since June As the end of their original 18-year term approaches in May 2019, the tenant already executed their first 5-year renewal option, making the lease maturing in May This reflects their commitment to the site and perceived long-term profitability at this location. The lease features rent increases in the 3rd year, amount equal to CPI in the Primary Term and the (3) 5year option periods; the next increase is in May The Absolute Triple-Net (NNN) nature of the lease requires the tenant pay for all expenses and building related costs, relieving a potential investor of any landlord responsibilities. The site is located on the hard corner signalized intersection of West Mount Houston Rd (249) & Veterans Memorial Dr., offering outstanding visibility to combined with quick in/out access. This Jack in the Box is surrounded by McDonald's, Burger King, Popeyes Louisiana Kitchen, Little Caesars Pizza, Subway, Domino's Pizza and Walgreens. References to square footage, income, expenses and other factors are approximate. Buyer must independently verify the accuracy and completeness Of all information contained herein and bears all risk for any inaccuracies.

6 Tenant Overview (from their NASDAQ Form 10-K) The Jack in the Box restaurant chain was the first major hamburger chain to develop and expand the concept of drive-thru restaurants. In addition to drive-thru windows, most of our restaurants have seating capacities ranging from 20 to 100 people and are open hours a day. Drive-thru sales currently account for approximately 70% of sales at company-operated restaurants. The average check in fiscal year 2018 was $8.02 for company-operated restaurants. With a presence in only 21 states and one territory, we believe Jack in the Box is a brand with significant growth opportunities. In fiscal 2018, we continued to expand in existing markets. We opened one company-operated restaurant and franchisees opened 11 restaurants during the year. References to square footage, income, expenses and other factors are approximate. Buyer must independently verify the accuracy and completeness Of all information contained herein and bears all risk for any inaccuracies.

7 77038 Profile Population , projected 37,234 for a 12.2% growth rate Household Median Income 2018 $43,657 Owner Occupied Households Total Owner Occupied Homes , projected 5,626 for a 15.5% increase References to square footage, income, expenses and other factors are approximate. Buyer must independently verify the accuracy and completeness Of all information contained herein and bears all risk for any inaccuracies.

8 References to square footage, income, expenses and other factors are approximate. Buyer must independently verify the accuracy and completeness Of all information contained herein and bears all risk for any inaccuracies.

9 Nearby Tenants