Applebee s ground lease

Transcription

1 Applebee s ground lease newly constructed applebee s 1540 Main Street, Los Lunas, NM Zandy Smith zsmith@capitalpacific.com [415] CA DRE#: Chris Kostanecki ck@capitalpacific.com [415] CA DRE#: Zeb Ripple zripple@capitalpacific.com [415] CA DRE#: Chris Peters cpeters@capitalpacific.com [415] CA DRE#: Listed in conjunction with NM licensed broker: Sean P. McMullan, CCIM, McMullan & Company Real Estate sean@mcmullanrealestate.com

2 PRICE.... $1,627,700 CAP RATE % $/SF... $25.42 RENTABLE SF... 61,420 SF LAND AREA Acres YEAR BUILT Investment Highlights NEWLY CONSTRUCTED 20-YEAR APPLEBEE S GROUND LEASE NEW STORE FORMAT > Subject property is a new store model and only the second to be constructed in the United States > Subject property is quipped with 17 televisionsshowing various sporting events and several displays of art depicting paintings showing local scenes throughout Valencia County EXCELLENT LOCATION > Pad to a Lowes Home Improvement; located directly off Interstate 25 which connects Los Lunas, to Albuquerque, NM (26 miles North) > National tenants within ½ mile: Home Depot, AutoZone, Walgreens, Wendy s, Sonic, Starbucks, Shell, Valero, Walmart, Walmart Distribution Center, KFC, Carl s Jr. > A brand new Village Inn will be built adjacent to the Applebee s property CREDIT TENANT > Apple American Group, LLC is the guarantor for the first 5 years of the lease. Apple American Group, LLC operates 447 Applebee s properties with $1.1 billion in sales and employing over 25,000 people. > Apple New Mexico, LLC is comprised of 9 locations and they will be the guarantor after the 5th lease year. See their website: aspx#new Mexico LEASE HIGHLIGHTS > 20 year ground lease with 4-5 year options; 10% rental increases every 5 years in the primary term and option periods > Kick out Clause: In the event that Tenant s gross receipts for the 10th lease year do not exceed $2.1 million, Tenant has the one-time right to terminate the lease. The average sales for an Applebee s location are $2.4 million. APPLEBEE S 2

3 DISTRIBUTION CENTER reet NE Los Lunas High School Mai n St 6 Katherine Gallegos Elementary Ma 10 in Str,53 eet 3 D SW AI LY Raymond Gabaldon Elementary Los Lunas Elementary Los Lunas Middle School Main RIVER POINTE Stree t SE rro Loop N El Ca Dainiel Fernandez Elementary 85 ALBUQUERQUE APPLEBEE S 3

4 Income & Expense PRICE $1,627,700 Price Per Square Foot: $25.42 Capitalization Rate: 6.00% Total Rentable Area (SF): 64,033 Lot Size (Acres): 1.47 STABILIZED INCOME Per Square Foot Scheduled Rent $1.53 $97,662 Effective Gross Income $1.53 $97,662 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses $0.00 EQUALS NET OPERATING INCOME $97,662 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. APPLEBEE S 4

5 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 Applebee s 64,033 12/1/13 11/30/18 $97,662 $8,139 $97,662 $0.13 $ /1/18 11/30/23 $8,952 $107,428 $0.14 $ /1/23 11/30/28 $9,848 $118,171 $0.15 $ /1/28 11/30/33 $10,832 $129,988 $0.17 $ /1/33 11/30/38 Option 1 $11,916 $142,987 $0.19 $ /1/38 11/30/43 Option 2 $13,107 $157,286 $0.20 $ /1/43 11/30/48 Option 3 $14,418 $173,014 $0.23 $ /1/48 11/30/53 Option 4 $15,860 $190,316 $0.25 $2.97 Totals: 64,033 $97,662 $8,139 $97,662 $0.13 $1.53 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. APPLEBEE S 5

6 Applebee s ABOUT APPLEBEE S Founded nearly three decades ago on the principles of exceptional value and family fun, Applebee s Services, Inc., develops, franchises and operates what is today the largest casual-dining chain in the world. Applebee s continues to grow and prosper, and further differentiates itself with innovative attractions, like the popular Carside to Go service available at many of its restaurants, and its successful Weight Watchers agreement, enabling it to cater to those preferring less-caloric alternatives. Applebee s menu features beef, chicken and pork items, as well as burgers, pasta and seafood, with a selection of signature menu items found only at Applebee s. Applebee s Services Inc., and its affiliates, franchise and operate restaurants under Applebee s Neighborhood Grill & Bar and are a DineEquity, Inc. (NYSE: DIN) brand. Currently, there are over 1,990 Applebee s restaurants operating system-wide in 49 states, 15 international countries and one U.S. territory. The Applebee s system employs approximately 28,000 employees company-wide. Applebee s Services Inc., and its affiliates, franchise and operate restaurants under Applebee s Neighborhood Grill & Bar and are a DineEquity, Inc. (NYSE: DIN) brand REVENUE Million NUMBER OF LOCATIONS 1990 NUMBER OF EMPLOYEES 28,000 ABOUT THE OPERATOR Apple American Group LLC owns and operates approximately 449 Applebee s Neighborhood Grill and Bar restaurants in Alabama, California, Colorado, Delaware, Georgia, Idaho, Indiana, Maine, Massachusetts, Minnesota, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Vermont, Wisconsin, Washington State, and West Virginia. With $1.1 billion in sales and directly employing over 25,000 people, Apple American is the largest Applebee s franchisee, and is one of the two largest franchisees of any concept in the United States. APPLEBEE S 6

7 Photos APPLEBEE S 7

8 Regional Map SUBJECT PROPERTY IS LOCATED DIRECTLY OFF INTERSTATE 25 WHICH CONNECTS LOS LUNAS, TO ALBUQUERQUE, NM (26 MILES NORTH) APPLEBEE S APPLEBEE S 8

9 Los Lunas, NM Los Lunas is the fastest growing city in New Mexico since The population is 14,835 with a 47.8% growth rate since Our immediate trade area is 210,210 people. We are located 22 miles from Albuquerque, a metropolitan statistical area (MSA) of 887,077 people. It is situated on Interstate 25, the major north/south freeway artery in New Mexico. Average daily northbound traffic is 30,500 vehicles; southbound traffic is 10,000 vehicles. In addition, Highway 6 passes east/west through our community with average daily traffic of 24,475 vehicles. The community is comprised of 994 businesses with annual retail sales of $381 million. Our largest employers, ranging from the Walmart Distribution Center to Home Depot, employ over 3,500 people. Los Lunas is also located near major universities and community colleges. UNM Valencia has 1,901 students while the UNM main campus in Albuquerque has 29,056 students. New Mexico Tech has 1,921 students. Central New Mexico, also located in Albuquerque, has 2,698 students. Valencia County is also home to Los Lunas HS, Valencia HS, Belen HS, and the School of Dreams academy. This student population exceeds 3,900. Home to the Rail Runner, their commuter rail system, Los Lunas provides easy access to Albuquerque and Santa Fe. Demographics Population 1 Mile 3 Miles 5 Miles 2010 Population 6,444 17,901 34, Population 6,647 18,665 35, Population (Projection) 6,887 19,401 37, Income 2013 Average Household Income $71,398 $65,361 $65, Median Household Income $53,963 $45,934 $50,336 Top Employers in Albuquerque Employer # of Employees (Approx.) Kirtland Air Force Base 35,690 Alburquerque Public Schools 14,480 University of New Mexico 14,300 Sandia National Laboratories 8,400 Presbyterian Hospital 7,369 Copyright 2014 [Capital Pacific Real Estate Brokerage Company] Albuquerque, NM APPLEBEE S 9

10 A unique HUMAN RESULTS-DRIVEN client experience [ ] THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS ZANDY SMITH zsmith@capitalpacific.com (415) CA DRE #: ZEB RIPPLE zripple@capitalpacific.com (415) CA DRE#: CHRIS KOSTANECKI ck@capitalpacific.com (415) CA DRE#: CHRIS PETERS cpeters@capitalpacific.com (415) CA DRE#: Listed in conjunction with NM licensed broker: Sean P. McMullan, CCIM, McMullan & Company Real Estate sean@mcmullanrealestate.com Copyright 2014 [Capital Pacific Real Estate Brokerage Company]