1 8 8 8 2 5 5 0 S O U T H S T R E E T W E S T H A V E N, U T A H 8 4 4 0 1 BURGER KING WEST HAVEN, UTAH offering memorandum
INVESTMENT OVERVIEW Marcus and Millichap is pleased to present this Burger King in West Haven, Utah; located just 38 miles north of Salt Lake City. There are more than 19 years remaining on this absolute net lease, leaving the landlord with zero responsibilities. This lease offers a hedge against inflation with annual 1.25 percent rental increases. The lease is corporately guaranteed by Meridian Restaurant Unlimited, Limited Company. Meridian Restaurant Unlimited, Limited Company is a 100-unit franchisee restaurant operator across multiple concepts. The subject property sits on the signalized hard-corner of 2550 S Street and S 1900 West with more than 30,000 vehicles per day. The surrounding market is a high traffic area, sitting less than a mile from Interstate 15, boasting more than 94,000 vehicles per day. Burger King also benefits from the significant population growth in the area, with an increase of seven percent in residents between 2010 and 2017. Located in a dense retail corridor, the subject asset has more than one million square feet of retail within five miles. Utah as a state ranked among top 10 states in percentage population, third overall fastest growing state. Salt Lake City and the surrounding areas were ranked as the ninth best market for quick-servicerestaurant (QSR) to open new locations. INVESTMENT HIGHLIGHTS New Construction Burger King in West Haven, UT 38 Miles North of Salt Lake City Absolute Net Structure Zero Landlord Responsibilities More Than 19 Years Remaining is Corporately Guaranteed by Meridian Restaurant Unlimited, Limited Company 100-Unit Franchisee Restaurant Operators Across Multiple Concepts Hedge Against Inflation 1.25 Percent Annual Rental Increases Signalized Hard-Corner Location More Than 30,000 Vehicles Per Day Explosive Population Growth More Than Seven Percent Between 2010 and 2017 Utah Third Fastest Growing State Ideal Location to Open a New Quick Service Restaurant Location Salt Lake City and Surrounding Area Ranked Ninth Best to Expand Into 2 Additional Retailers in the Immediate Vicinity Include: T.J. Maxx, JCPenney, Lowe s Home Improvement, Texas Roadhouse, Starbucks, The Home Depot, and Many More. 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: Z033083
FINANCIAL OVERVIEW 1888 2550 SOUTH STREET WEST HAVEN, UTAH 84401 PRICE $2,442,478 CAP RATE 5.65% NOI $138,000 PRICE PER SQUARE FOOT $548.87 RENT PER SQUARE FOOT $31.01 YEAR BUILT 2017 APPROXIMATE LOT SIZE 1.16 Acres GROSS LEASEABLE AREA 4,450 TYPE OF OWNERSHIP Fee Simple LEASE GUARANTOR Meridian Restaurants Unlimited, Limited Company (L.C) 4 LEASE TYPE ROOF AND STRUCTURE Absolute Net 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: Z033083
LEASE SUMMARY LEASE COMMENCEMENT DATE 12/1/2017 LEASE EXPIRATION DATE 11/30/2037 ANNUALIZED OPERATING DATA BASE RENT ANNUAL RENT MONTHLY RENT 12/1/2017 11/30/2018 $138,000.00 $11,500.00 12/1/2018 11/30/2019 $139,725.00 $11,643.75 1.25% 12/1/2019 11/30/2020 $141,471.56 $11,789.30 1.25% 12/1/2020 11/30/2021 $143,239.96 $11,936.66 1.25% LEASE TERM 20 Years 12/1/2021 11/30/2022 $145,030.46 $12,085.87 1.25% 12/1/2022 11/30/2023 $146,843.34 $12,236.94 1.25% 12/1/2023 11/30/2024 $148,678.88 $12,389.91 1.25% TERM REMAINING INCREASES 19+ Years 1.25 Percent Annually 12/1/2024 11/30/2025 $150,537.36 $12,544.78 1.25% 12/1/2025 11/30/2026 $152,419.08 $12,701.59 1.25% 12/1/2026 11/30/2027 $154,324.32 $12,860.36 1.25% 12/1/2027 11/30/2028 $156,253.37 $13,021.11 1.25% 12/1/2028 11/30/2029 $158,206.54 $13,183.88 1.25% OPTIONS TO RENEW 4, 5-Years 12/1/2029 11/30/2030 $160,184.12 $13,348.68 1.25% 12/1/2030 11/30/2031 $162,186.42 $13,515.54 1.25% 12/1/2031 11/30/2032 $164,213.76 $13,684.48 1.25% 12/1/2032 11/30/2033 $166,266.43 $13,855.54 1.25% 12/1/2033 11/30/2034 $168,344.76 $14,028.73 1.25% 12/1/2034 11/30/2035 $170,449.07 $14,204.09 1.25% 5 12/1/2035 11/30/2036 $172,579.68 $14,381.64 1.25% 12/1/2036 11/30/2037 $174,736.93 $14,561.41 1.25% 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: Z033083
TENANT OVERVIEW Every day, more than 11-million guests visit Burger King restaurants around the world. And they do so because Burger King restaurants are known for serving high-quality, great-tasting, and affordable food. Founded in 1954, Burger King is the second largest fast food hamburger chain in the world. The original Home of the Whopper, Burger King s commitment to premium ingredients, signature recipes, and family-friendly dining experiences is what has defined their brand for more than 50 successful years. In 2010, 3G Capital, a global multi-milliondollar investment firm focused on long term value creation, purchased Burger King Corporation, making it a privately-held company. In 2014, Burger King purchased Tim Hortons, and after the deal closed Burger King was renamed Restaurant Brands International, Incorporated. As of June 2017, 3G capital owns more than 96 percent of Restaurant Brands International. TENANT TRADE NAME OWNERSHIP TENANT LEASE GUARANTOR NUMBER OF LOCATIONS TENANT PROFILE Burger King Private NDM Restaurants, Limited Company Meridian Restaurants Unlimited, Limited Company 100 Units 7 Meridian Restaurants was founded in 2002 with 14 restaurants, and in 2016 they attained a long-term goal of 100 restaurants consisting of three top-tier brands across eight mid-western states: Burger King, El Pollo Loco, and Chili s. The tenant; NDM Restaurants, Limited Company; is a wholly owned subsidiary of Meridian Restaurants Unlimited, Limited Company. The lease is corporately guaranteed by Meridian Restaurants Unlimited, Limited Company; as well as a full-term personal guaranty from the entity s principals: David A. Harper and Stephan L Ralston. HEADQUARTERED South Ogden, Utah 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: Z033083
ABOUT WEST HAVEN West Haven is a city in Weber County, Utah. The confluence of the Weber and Ogden Rivers is located inside the northeastern portion of the city. It is part of the Ogden-Clearfield, Utah Metropolitan Statistical Area. The economy of West Haven employs 6,143 people, specializing in Management of Companies and Enterprises, Public Administration, and Manufacturing. West Haven is a city that has shown continuous growth since its inception in 1991. OGDEN West Haven is also conveniently located near Ogden, the largest city and county seat of Weber County, Utah. The city of Ogden serves as a major railway hub through much of its history, and still handles a great deal of freight rail traffic which makes it a convenient location for manufacturing and commerce. As the principal city of the second largest MSA in Utah, Ogden serves as an economic hub for the northern part of the state. Ogden is also known for its many historic buildings, proximity to the Wasatch Mountains, and as the home of Weber State University. 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: Z033083
15 162 158 Warren Plain City 134 89 235 Harrisville Ed 134 158 Reese West Side Estates West Weber Marriott-Slaterville 89 39 39 39 5 MILE RADIUS Taylor 134 3 MILE RADIUS 37 108 1 MILE West Haven 126 15 SITE Ogden-Hinckley Airport Ogden 89 79 203 South Ogden 26 37 Hooper 97 37 Roy Sunset Clinton Riverdale Washington Terrace 15 84 1 Mile 3 Mile 110 5 Mile 108 1 Mile 3 Mile 5 Mile South Weber 1 Mile 3 Mile 5 Mile 2000 Population 580 23,289 138,420 2000 Households 195 7,668 47,716 2010 Population 1,159 28,972 154,914 2010 Households 416 9,884 53,802 2018 Population 1,501 33,013 166,397 2018 Households 551 11,470 57,691 60 89 Woodland Estates Uintah 2018 Average HH Income 2018 Median HH Income 2018 Per Capita Income 84 $65,219 $68,411 $66,408 $60,724 $59,838 $56,478 $23,941 $23,769 $23,024
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.
BURGER KING WEST HAVEN, UTAH offering memorandum 1 8 8 8 2 5 5 0 S O U T H S T R E E T W E S T H A V E N, U T A H 8 4 4 0 1 BROKER OF RECORD: CODY CANNON MARCUS & MILLICHAP SALT LAKE CITY, UTAH LICENSE: 5880842-PB00