6 1 0 9 B A Y F I E L D P A R K W A Y C O N C O R D, N O R T H C A R O L I N A 2 8 0 2 7 ARBY S CONCORD, NC offering memorandum
INVESTMENT OVERVIEW Marcus & Millichap is pleased to present Arby s in Concord, North Carolina, 20 miles north of Charlotte. This asset has more than nine years remaining on a triple-net (NNN) lease, where the tenant is responsible for all expenses associated with the asset. This lease features 10 percent rent increases every five years. The lease is guaranteed by Brumit Restaurant Group, Limited Liability Company (LLC). This Arby s franchisee operates over 50 units across both North and South Carolina. The subject property is located in a tremendous retail corridor with more than 750,000 square feet of retail within one mile. More than 100,000 vehicles pass this asset daily. This asset also benefits from being an out parcel to a major strip center anchored by national brand tenants such as Target, CVS Pharmacy, and Dollar Tree. Arby s is in an area that has seen significant population growth area, with Concord experiencing more than 17 percent increase in residents from 2010 to 2017. The average household incomes within five miles are more than $91,000. There s significant capital commitment to this market, highlighted by an $85 million permit for an Amazon Fulfillment Center within five miles of the subject asset and Odell Commons $57 Million mixed-use project. 2 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z0330940
INVESTMENT HIGHLIGHTS Arby s in Concord, North Carolina 20 Miles North of Charlotte More Than Nine Years Remaining on a Triple-Net (NNN) Zero Landlord Responsibilities Hedge Against Inflation 10 Percent Rent Increases Every Five Years Ideally Located on a Parcel to a Major Strip Center Anchor s Include Target, CVS, and Dollar Tree Heavily Trafficked Corridor More Than 100,000 Vehicles Pass This Asset DailY Dense Retail Corridor More Than 750,000 Square Feet of Retail Within One Mile Significant Capital Entering the Concord Active Permits Include $85 Million Amazon Fulfillment Center and $57 Million Odell Commons Mixed-Use Project Strong Demographics Average Household Income of $91,000 Within Five Miles More Than 85,000 Residents Within Five Miles 17 Percent Increase in Population Between 2010 and 2017
FINANCIAL OVERVIEW 6109 BAYFIELD PARKWAY CONCORD, NORTH CAROLINA PRICE $2,400,000 CAP RATE 7.87% NOI $188,760 PRICE PER SQUARE FOOT $731.93 RENT PER SQUARE FOOT $57.57 YEAR BUILT 2007 APPROXIMATE LOT SIZE 1.15 Acres GROSS LEASEABLE AREA 3,279 TYPE OF OWNERSHIP Fee Simple LEASE GUARANTOR Brumit Restaurant Group, Limited Liability Company (LLC) 4 LEASE TYPE ROOF AND STRUCTURE Triple-Net (NNN) Responsibility 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z0330940
LEASE SUMMARY LEASE COMMENCEMENT DATE 6/1/2007 LEASE EXPIRATION DATE 5/31/2027 LEASE TERM 20 Years TERM REMAINING INCREASES 9+ Years 10 Percent Every 5 Years OPTIONS TO RENEW 4, 5-Years ANNUALIZED OPERATING DATA FIRST RIGHT OF REFUSAL Yes BASE RENT ANNUAL RENT MONTHLY RENT 6/1/2017 5/31/2022 $188,760.00 $15,730.00 6/1/2022 5/31/2027 $207,636.00 $17,303.00 10% OPTIONS 6/1/2027 5/31/2032 $228,399.60 $19,033.30 10% 5 6/1/2032 5/31/2037 $251,239.56 $20,936.63 10% 6/1/2037 5/31/2042 $276,363.52 $23,030.29 10% 6/1/2042 6/1/2047 $303,999.87 $25,333.32 10% 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z0330940
TENANT OVERVIEW Arby s is the second-largest quick-service fast-food sandwich restaurant chain in America in terms of units with more than 3,300 restaurants system wide and third in terms of revenue. In October 2017, Food & Wine called Arby s America s second largest sandwich chain (after Subway). Roark Capital Group acquired the company in July 2011 and owns 81.5 percent of the company, with The Wendy s Company owning the other 18.5 percent. In addition to its classic Roast Beef and Beef n Cheddar sandwiches, Arby s products also include delistyle Fresh line of sandwiches, Curly Fries and Jamocha Shakes. Its headquarters are in Sandy Springs, Georgia, a suburb of Atlanta which uses Atlanta mailing addresses. Brumit Restaurant Group, Limited Liability Company (LLC) Brumit Restaurant Group was founded by Joe Brumit in 1988. Joe started as a franchisee in 1988 with 13 Arby s in western North Carolina. Since, Joe has brought on two partners in JoAnn Yoder and Greg Catevenis. This team now operates 50 Arby s restaurants across North and South Carolina. 7 TENANT TRADE NAME OWNERSHIP TENANT LEASE GUARANTOR NUMBER OF LOCATIONS WEB SITE TENANT PROFILE Arby s Private Arby s Brumit Restaurant Group, Limited Liability Company (LLC) 50 Units http://www.brgconnect.com 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z0330940
ABOUT CONCORD Concord is a city in Cabarrus County, in North Carolina. It is the county seat and largest city in Cabarrus County. In terms of population, the city of Concord is the second-largest city in the Charlotte Metropolitan Area and is the eleventh largest city in North Carolina. In 2015, Concord was ranked as the city with the 16th fastest growing economy in the United States. Geographically, the City of Concord has expanded from 23 square miles to over 60 square miles. CULTURE Cabbrus County is known as Where Racing Lives, but there can offer so much more than motorsports. A little something for everyone, Cabbarus County offers the historic Reed Gold Mine, the North Carolina Music Hall of Fame, and a whiskey distillery located in a former prison. Concord s city council implemented Partnerships for Stronger Neighborhoods, program. This program is designed to enhance the lives of residents in the neighborhoods in the city, increasing the quality of both life and events for those calling Concord home. There are currently 45 neighborhoods participating in the program, which contributes to making Concord one of the most sought-after communities for homebuyers in the regional real estate market. The City of Concord provides its neighborhoods with three recreational centers, eight parks, four sport complexes, an aquatics center featuring open swimming and swim lessons, beautiful Lake Fisher, with 3 miles and 534 acres providing leisurely boating, fishing, greenways and bike paths. ECONOMY Concord has a diverse economy comprising shipping and transportation, banking, manufacturing, motorsports, and various sectors. Concord has many small businesses but also has several large employers such as Atrium Health, Cabarrus County Schools, Shoe Show, Inc., Connextions, Roush Fenway Racing, and more. Concord is also home to th large retail venue Concord Mills and Charlotte Motor Speedway. There two are the primary economic driving forces of the city. 8 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z0330940
avidson nelius 115 Caldwell 1 Hopewell 73 3 5 MILE RADIUS 73 3 MILE RADIUS 3 1 MILE SITE 29 Kannapolis 85 73 3 85 Huntersville 115 85 29 601 Concord 3 73 49 77 21 24 485 85 29 115 1 Mile 3 Mile 5 Mile 1 Mile 29 Harrisburg 3 Mile 5 Mile 1 Mile 3 Mile 5 Mile 601 77 Charlotte 485 2018 Average HH 2000 Population 1,699 16,683 50,276 2000 Households 635 5,939 18,816 $95,269 $98,863 $91,352 Income 2010 Population 2,503 22,196 75,789 2010 Households 1,012 8,127 27,905 2018 Population 3,415 26,687 89,153 2018 Households 1,373 9,823 32,841 49 49 2018 Median HH Income 2018 Per Capita Income 601 $79,367 $80,187 $69,632 $38,303 $36,390 $33,651
MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS: The information contained in this ing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This ing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this ing 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 you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. 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 success. 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 ing Brochure you agree to release Marcus & Millichap Real Estate Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
ARBY S CONCORD, NC offering memorandum 6 1 0 9 B A Y F I E L D P A R K W A Y C O N C O R D, N O R T H C A R O L I N A 2 8 0 2 7 BROKER OF RECORD: AARON JOHNSON MARCUS & MILLICHAP KENTUCKY LICENSE: 60872