Pizza Hut Plymouth Road, Redford, Michigan OFFERING MEMORANDUM

Transcription

1 Pizza Hut Plymouth Road, Redford, Michigan OFFERING MEMORANDUM

2 Confidentiality & Disclaimer Statement This Marketing Brochure contains select information pertaining to the business and affairs of Pizza Hut located at Plymouth Road, Redford, Michigan here to referred to as Property. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc. This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. It is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for the Buyer s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this Property. The value of a net leased property to the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the Property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future performance. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the Property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the Property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the Property, and Buyer s legal ability to make alternate use of the Property. By accepting this Marketing Brochure you agree to release the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property. NON-ENDORSEMENT NOTICE Matthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. 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 Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ii

3 TABLE OF CONTENTS PRICING AND FINANCIAL ANALYSIS Investment Overview Financial Overview Company Overview Property Description Property Overview Bird s Eye Tenant Map Regional Map DEMOGRAPHICS Demographics Report City Overview PRESENTED BY Wesley Connolly Associate License No O M wesley.connolly@matthews.com David Zacharia Broker of Record License No iii

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5 PRICING AND FINANCIAL ANALYSIS

6 Investment Overview Wesley Connolly and the Matthews Retail Advisors have been retained by the ownership to exclusively present the sale of this fee simple Pizza Hut investment. The property is located in Redford, MI, which is just West of Detroit. This location benefits from the strong demographics in the immediate area. The tenant is Redberry Resto Brands, Intl, which operates over 133 locations within the United States and Canada. Furthermore, the base lease is corporately guaranteed by Pizza Hut of America, Inc. If you have any questions or would like more information, please feel free to reach out to Wesley Connolly. Investment Highlights Property Details Absolute NNN lease - Zero landlord responsibilities Established location - Operating history since 1998 Two years remaining on base lease 10% rental increases at option periods (2, 5 year renewal terms) Location Strong demographics - 305,000+ within 5 miles Ideal household incomes - $62,000+ avg HH income Traffic counts in excess of 32,000+ VPD (Plymouth Rd x Inkster Rd) Major retail tade area - nearby national tenants include Taco Bell, Long John Silver s, McDonald s, Checkers, CVS, Arby s and more Tenant Operated by Redberry Resto Brands International locations in U.S. and Canada Base lease corporately guaranteed by Pizza Hut of America, Inc. 2

7 Financial Overview Executive Summary Plymouth Road Redford, Michigan List Price $672,222 Gross Leasable Area ,638 SF CAP Rate - Current % Year Built Lot Size ±0.83 Acres (36,154 SF) Annualized Operating Data Monthly Rent Annual Rent Rent/SF CAP Rate Current-05/31/2018 $5, $60, $ % Option 1 $5, $66, $ % Option 2 $6, $73, $ % Tenant Summary Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof and Structure Original Lease Term Pizza Hut Fee Simple Pizza Hut of America, Inc. NNN Tenant Responsible 5 years Lease Commencement Date 06/10/1998 Rent Commencement Date 06/10/1998 Lease Expiration Date 05/31/2018 Term Remaining on Lease Increases Options 2+ years 10% at options 2 (5) Year Options 3

8 Company Overview Property Name Pizza Hut Property Type Net Leased Quick Service Restaurant Parent Company Trade Name Yum! Brands Ownership Public No. of Locations ±11,139 No. of Employees ±160,000 Headquartered Plano, TX Web Site Year Founded 1958 Pizza Hut, Inc. operates a chain of pizza restaurants in the United States and internationally. It offers pizzas, pastas, wings, and drinks, as well as sides and desserts, such as stuffed pizza rollers, breadsticks, cheese sticks, baked desserts, and cinnamon sticks. The company also offers catering services. In addition, Pizza Hut franchises its restaurants. Further, it provides online ordering. The company was founded in 1958 and is based in Plano, Texas. Pizza Hut, Inc. operates as a subsidiary of Yum! Brands, Inc. Pizza Hut is split into several different restaurant formats; the original family-style dine-in locations; store front delivery and carryout locations; and hybrid locations that offer carry-out, delivery, and dine-in options. Many full-size Pizza Hut locations offer lunch buffet, with all-you-can-eat pizza, salad, bread sticks, and a special pasta. Additionally, Pizza Hut also has a number of other business concepts that are different from the store type; Pizza Hut Bistro locations are Red Roofs which offer an expanded menu and slightly more upscale options. 4

9 Property Description

10 Property Overview THE OFFERING Property Name Pizza Hut Property Address Plymouth Road Redford, Michigan Assessor s Parcel Number SITE DESCRIPTION Number of Stories One Year Built Gross Leasable Area (GLA) ,638 SF Lot Size ±0.83 Acres (36,154 SF) Type of Ownership Fee Simple Parking ± 58 Surface Spaces Parking Ratio : 1000 SF Landscaping Professional Topography Generally Level CONSTRUCTION Foundation Concrete Slab Framing Wood Exterior Painted Stucco Parking Surface Asphalt Roof Pitched 6 PROPERTY DESCRIPTION

11 Bird s Eye 7

12 Tenant Map 8 PROPERTY DESCRIPTION

13 Regional Map 9

14 DEMOGRAPHICS

15 Demographics Report Population 1-Mile 3-Mile 5-Mile 2021 Projection 11,958 99, , Estimate 12, , , Census 12, , , Census 13, , ,745 Growth % -2.53% -2.90% Growth % -3.64% -4.50% Growth % -6.07% % Households 2021 Projection 4,861 41, , Estimate 4,941 41, , Census 5,028 42, , Census 5,174 45, ,255 Growth % -1.58% -1.95% Growth % -1.82% -2.70% Growth % -5.53% -8.15% Income $0 - $15, % 11.98% 15.95% $15,000 - $24, % 10.49% 11.18% $25,000 - $34, % 10.81% 10.84% $35,000 - $49, % 16.48% 14.98% $50,000 - $74, % 20.40% 18.43% $75,000 - $99, % 13.17% 12.04% $100,000 - $124, % 7.51% 7.39% $125,000 - $149, % 3.74% 3.67% $150,000 - $199, % 3.67% 3.51% $200,000 - $249, % 1.07% 1.11% $250,000 - $499, % 0.59% 0.78% $500, % 0.08% 0.12% 2016 Est. Average Household Income $62,907 $62,307 $60, Est. Median Household Income $53,439 $50,286 $47, DEMOGRAPHICS

16 City Overview Redford Redford Township is a charter township in Wayne County located on the western border of Michigan s largest city; Detroit. Redford is home to 15 different parks. These areas can easily be considered one of Redford s most valuable resources. There is everything from a splash park, skate park, ball diamonds, tot lots, walking paths and more. Redford parks have something for everyone. Detroit The Metro Detroit area is a major metropolitan area located in Southeast Michigan. Metro Detroit is known for its automotive heritage, arts, entertainment, popular music, and sports. The area includes a variety of natural landscapes, parks, and beaches, with a recreational coastline linking the Great Lakes. It is one of the nation s largest metropolitan economies, with seventeen Fortune 500 companies. Detroit and the surrounding region constitute a major center of commerce and global trade, most notably as home to America s Big Three automobile companies: General Motors, Ford, and Chrysler. Firms in the region pursue emerging technologies including biotechnology, nanotechnology, information technology, and hydrogen fuel cell development. Metro Detroit is one of the leading health care economies in the U.S., according to a 2003 study measuring health care industry components, with the region s hospital sector ranked fourth in the nation. Casino gaming plays an important economic role, with Detroit the largest US city to offer casino resort hotels. Caesars Windsor, Canada s largest, complements the MGM Grand Detroit, MotorCity Casino, and Greektown Casino in the city. Gaming revenues have grown steadily, with Detroit ranked as the fifth largest gambling market in the United States for

17 Pizza Hut Plymouth Road, Redford, Michigan OFFERING MEMORANDUM Wesley Connolly Associate License No O M wesley.connolly@matthews.com David Zacharia Broker of Record License No Apollo Street, Suite 150 El Segundo, CA