absolute net corporate hardee s

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1 absolute net corporate hardee s long history of occupancy below replacement value [ ] 629 W. Main Street, Benton, IL

2 PROperty Summary hardee s is located in benton, il, just off of interstate 57 on the main arterial. The property is adjacent to daily needs retailer cvs, and complementary quick service tenants like taco bell, arby s and Phillip s 66 service station. The site boasts a tall monument sign that is visible from the interstate. PRICE: $965,000 CAP: 6.00% Rentable SF...2,448 SF Price per SF...$ lot size Acres noi...$57,908 Lease Expiration...6/30/2028 Listing Team Contact Info chris kostanecki ck@capitalpacific.com (415) CA BRE# zeb ripple zripple@capitalpacific.com (415) CA BRE# chris peters cpeters@capitalpacific.com (415) CA BRE# jack navarra jnavarra@capitalpacific.com (415) CA BRE# In conjunction with IL Licensed Broker: Keeler Real Estate, LLC (312) Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. hardee s 2

3 core characteristics this Freestanding hardee s is located on the major retail arterial in benton, il, with direct access via off-ramp to interstate 57 Strong store sales & below market rent corporate lease/historical occupancy This is a corporate lease guaranteed by Hardee s. The tenant has been at this location since 1973 and is an established restaurant with strong reported annual sales. Over the past 3 years alone, annual sales have grown by over 18.5%. The tenant recently extended the lease for 10 years, demonstrating their continued commitment to this location. low occupancy costs/ below market lease rate The annual base rent for this property is approximately $20,363 and the store sales produce percentage rent for the owner. Store sales have increased 18.5% over the previous three years and have provided a 30% increase in the percentage rent paid out. In 2013, percentage rent paid was $33,410, in 2014 it was $35,865 and in 2015 it was $43,362. Tenant s fiscal year ends in June and percentage rent is paid and due 90 days thereafter. lease highlights The lease is corporately guaranteed and is an absolute net lease with the tenant responsible for the structure, grounds, taxes and insurance. below replacement value The property is being offered for sale at below replacement value. hardee s 3

4 zoomed-in aerial located on major arterial near freeway off-ramp N Main Street BENTON MUNICIPAL AIRPORT 34,8 00 D AIL Y 57 FRANKLIN COUNTY REND LAKE PLAZA FRANKLIN COUNTY FRANKLIN COUNTY 14 W Main Street E Main Street W Main Street 13,200 DAILY S Main Street 57 CHICAGO hardee s 4

5 income & expense [ across from subject property ] PRICE $965,000 Price Per Square Foot: $ Capitalization Rate: 6.00% Total Rentable Area (SF): 2,448 Lot Size (AC): 0.54 STABILIZED INCOME Per Square Foot Scheduled Rent $8.32 $20,363 Percentage Rent* $15.34 $37,546 Effective Gross Income $23.66 $57,908 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $57,908 *Based on the average percentage rent paid over the previous 3 years. Percentage Rent Summary: 2013 $33, $35, $43,362 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. hardee s 5

6 rent roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT Yearly Rent/FT Percentage Rent Breakpoint Hardee s 2,448 08/01/73 06/30/23 $20,363 $1,697 $20,363 $0.69 $8.32 $407,251 07/01/23 06/30/28 $3,333 $40,000 $1.36 $16.34 $800,000 Option 1 07/01/28 06/30/33 $3,667 $44,000 $1.50 $17.97 $880,000 Option 2 07/01/33 06/30/38 $4,033 $48,400 $1.65 $19.77 $968,000 Option 3 07/01/38 06/30/43 $4,437 $53,240 $1.81 $21.75 $1,065,000 Option 4 07/01/43 06/30/48 $4,880 $58,564 $1.99 $23.92 $1,171,000 Option 5 07/01/48 06/30/53 $5,368 $64,420 $2.19 $26.32 $1,288,000 Totals: 2,448 $20,363 $1,697 $20,363 $0.69 $8.32 Percentage rent is equal to the amount by which 5% of gross sales exceeds minimum rent. Breakpoint at $407,251: Landlord collects 5% of sales in excess of natural breakpoint. Tenant s fiscal year ends in June and percentage rent is paid and due 90 days thereafter. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. [ surrounding retail ] hardee s 6

7 site plan 13,200 DAILY POLE SIGN W Main Street 14 POLE SIGN W Washington Street *For illustrative purposes only. Please consult survey/plot map to verify This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. hardee s 7

8 tenant overview Hardee s Hardee s Restaurants LLC, is an American fast-food restaurant chain, operating in the Southern and Midwestern U.S. Since opening in Greenville, NC in 1960, the chain has been best known for their biscuits, that are made from scratch, and charbroiled 100% Black Angus Beef Thickburgers. The company has evolved through several corporate ownerships and is now owned and operated by CKE Restaurants, the parent company of Carl s Jr., which aligned the menus, logos and advertising of the two brands. CKE Restaurants, Inc., through its subsidiaries, currently has 3,500+ franchised or company operated restaurants in 42 states and in 33 countries, 1,771+ of which are Hardee s restaurants. For 2016, CKE has a pipeline of over 500 development commitments and plans to open 100 new international restaurants. In 2015, Hardee s ranked #17 on Entrepreneur s Franchise 500 List. TOTAL SALES $2.15 Billion LOCATIONS 1,771 Fiscal 2014 hardee s 8

9 location & demographics benton, il Overview Benton had a 2010 population of over 7,000 and is the seat of Franklin County, which had a 2010 population of nearly 40,000. The small, mining town of Benton is also part of the Metro Lakeland, that refers to an area of southern Illinois that is centered on the intersections of I-57, I-24, and Illinois Route 13. Metro Lakeland has a combined population of approximately 210,000. Top Employers in franklin county Employer # of Employees* Crowline Boats Inc. 600 Bombardier of America 380 Franklin-Williamson Human Services 300 Benton School District 215 Population 1-Mile 3-Mile 5-Mile ,651 9,311 10, ,487 9,084 10, ,400 8,992 10, Household incomes 1-Mile 3-Mile 5-Mile Average $42,022 $45,293 $46,457 Median $32,556 $34,736 $35,367 *Approximate 34,800 DAILY 13,200 DAILY benton hardee s 9

10 surrounding retail Subject Property is located between Pizza Hut & Arby s and in close proximity to CVS, Autozone, O Reilly & Phillips 66 Service Station hardee s 10

11 A unique HUMAN RESULTS-DRIVEN client experience The capital pacific experience - our daily commitment to our clients [ ] chris kostanecki ck@capitalpacific.com (415) CA BRE# chris peters cpeters@capitalpacific.com (415) CA BRE# zeb ripple zripple@capitalpacific.com (415) CA BRE# jack navarra jnavarra@capitalpacific.com (415) CA BRE# rick sanner john andreini dave lucas karla zens Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. bob sanner joe caccamo gregg steele zandy smith In conjunction with IL Licensed Broker: Keeler Real Estate, LLC (312) [ Copyright 2016 Capital Pacific ]