REPRESENTATIVE PHOTO Arby s 2709 Dick Pond Road, Myrtle Beach, SC 29575 Offering Memorandum R E T A I L A D V I S O R S
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Arby s located at 2709 Dick Pond Road, Myrtle Beach, SC 29575 ( Property ). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Matthews Retail Advisors
Table of Contents Pricing & Financial Analysis Investment Highlights... 2 Executive Summary... 3 Company Overview... 4 Property Description Physical Description... 7 Birds Eye... 8 Regional Map... 9 Tenant Map... 10 Demographics City Overview Myrtle Beach, SC... 14 Demographics Report... 15 EXCLUSIVELY LISTED BY: Gary Chou Director Restaurant Practice Group direct +1.310.919.5827 MOBILE +1.714.928.8016 gary.chou@matthews.com License No. 01911222 Lawrence Shaw Broker of Record License No. 143281
Matthews Retail Advisors
Pricing & Financial Analysis
Investment Highlights QUALITY NATIONAL TENANT AND OPERATIONS Arby s Restaurant Group, Inc. is the second largest quick-service sandwich chain in the U.S. with more than 3,400 restaurants Corporate Guarantee: Arby s Restaurant Group, Inc Absolute NNN Investment Zero landlord responsibility making this investment great for out of state investors looking for passive income New Arby s concept STRONG RETAIL CORRIDOR Great access to highway 17 which is a major highway that runs up the east coast Two Big Box centers with anchor tenants Target, Marshals, Kohl s, and Lowe s are located across the street Outparcel to the Walmart Supercenter with a Rite Aid next door Large residential area within a mile radius of Arby s National tenants in the area include: Walmart Supercenter, Rite Aid, Chick-fil-A, Wells Fargo, Wendy s, Office Depot, Hamrick s, Ross, Kohl s, Dollar Tree, Which Which, Waffle House, Zaxby s, Target, and Marshalls P. 2 Matthews Retail Advisors OFFERING MEMORANDUM Arby s
Executive Summary Arby s 2709 Dick Pond Road Myrtle Beach, SC 29575 List Price... $1,302,000 CAP Rate - Current...8.25 % Gross Leasable Area... 3,000 SF Lot Size... 0.85 Acres ( 37,026 SF) Year Built...1995 Annualized Operating Data Monthly Rent Annual Rent CAP Rate Current - 4/19/2016 $8,948.85 $107,386.20 8.25% 4/19/2016-4/19/2017 $9,060.71 $108,728.53 8.35% 4/19/2017-4/19/2018 $9,173.97 $110,087.63 8.46% 4/19/2018-4/19/2019 $9,288.64 $111,463.73 8.56% Option 1 Starts - 4/19/2020 $9,404.75 $112,857.03 8.67% 4/19/2020-4/19/2021 $9,522.31 $114,267.74 8.78% Tenant Summary Tenant Trade Name Arby's Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 20 Lease Commencement Date 4/19/1999 Rent Commencement Date 4/19/1999 Lease Expiration Date 4/19/2019 Term Remaining on Lease 3.6 Increases 1.25%/year Options Two (2) 5-Year Options Arby s OFFERING MEMORANDUM Matthews Retail Advisors P. 3
Company Overview Property Name Property Type Arby s Net Leased Quick Service Restaurant Arby s Restaurant Group, Inc. is the second largest quick-service sandwich chain in the U.S. with more than 3,400 restaurants system wide. Parent Company Trade Name Arby s Ownership Private Revenue $3.26 B No. of Locations 3,400+ No. of Employees 70,000+ Headquartered Sandy Springs, Georgia Web Site www.arbys.com Year Founded 1964 Roark Capital Group acquired the company in July 2011 and owns 81.5% of the company, with The Wendy s Company owning the other 18.5%. In addition to its classic Roast Beef and Beef n Cheddar sandwiches, Arby s products also include delistyle Market Fresh line of sandwiches, Curly Fries and Jamocha Shakes. Its headquarters is in Sandy Springs, Georgia. As of December 31, 2013, there were 956 company-owned restaurants and 2,448 franchised restaurants. There are international locations in four countries outside of the United States: Canada, Turkey, United Arab Emirates and Qatar. P. 4 Matthews Retail Advisors OFFERING MEMORANDUM Arby s
Property Description
P. 6 Matthews Retail Advisors OFFERING MEMORANDUM Arby s
Physical Description THE OFFERING Property Name...Arby s Property Address... 2709 Dick Pond Road Myrtle Beach, SC 29575 Assessor s Parcel Number... 18500-02-160 SITE DESCRIPTION Number of Stories...One Year Built...1995 Gross Leasable Area (GLA)... 3,000 SF Lot Size... 0.85 Acres ( 37,026 SF) Type of Ownership...Fee Simple Landscaping...Professional Topography... Generally Level CONSTRUCTION Foundation...Concrete Slab Framing...Wood Exterior... Painted Stucco Parking Surface...Asphalt Roof...Flat Arby s OFFERING MEMORANDUM Matthews Retail Advisors P. 7
Birds Eye P. 8 Matthews Retail Advisors OFFERING MEMORANDUM Arby s
Regional Map Arby s OFFERING MEMORANDUM Matthews Retail Advisors P. 9
Tenant Map P. 10 Matthews Retail Advisors OFFERING MEMORANDUM Arby s
Arby s OFFERING MEMORANDUM Matthews Retail Advisors P. 11
P. 12 Matthews Retail Advisors OFFERING MEMORANDUM Arby s
Demographics
City PRICING Overview AND FINANCIAL ANALYSIS Myrtle Beach, PROPERTY SC DESCRIPTION DEMOGRAPHICS Myrtle Beach is one of the major centers of tourism in the United States because of the city s warm subtropical climate and extensive beaches, attracting an estimated 14 million visitors each year. Myrtle Beach is a coastal city on the east coast of the United States in Horry County, South Carolina. Hosting over 14 million visitors annually, The Grand Strand is home to an array of tourist attractions, and the area receives a large influx of visitors during all seasons. Nearly 100,000 visitors a year are estimated to come from overseas, with tourists from Canada, Germany and the United Kingdom. Myrtle Beach hosts a variety of special conventions, events, and musical concerts. The area s attractions include its beaches and many golf courses, as well as a number of amusement parks, an aquarium, Legends In Concert, retail developments, a number of shopping complexes and over 1,900 restaurants[6] including seafood restaurants. The area also has dinner theaters, nightclubs, and many tourist shops. Myrtle Beach has an estimated 460 hotels, with many on the beachfront, and approximately 89,000 accommodation units in total. Also in the city is Myrtle Waves, one of the largest water parks on the eastern seaboard. P. 14 Matthews Retail Advisors OFFERING MEMORANDUM Arby s
Demographics Report Population 1-Mile 3-Mile 5-Mile 2020 Projection 1,447 40,880 85,367 2015 Estimate 1,421 37,409 77,911 2010 Census 1,407 33,379 69,283 2000 Census 1,671 24,666 49,255 Growth 2015-2020 1.86% 9.28% 9.57% Growth 2010-2015 1.01% 12.07% 12.45% Growth 2000-2010 -15.81% 35.32% 40.66% Households 2020 Projection 663 17,742 36,947 2015 Estimate 644 16,224 33,787 2010 Census 628 14,435 30,103 2000 Census 756 10,462 21,379 Growth 2015-2020 2.85% 9.36% 9.35% Growth 2010-2015 2.61% 12.39% 12.24% Growth 2000-2010 -17.00% 37.98% 40.80% Income $0 - $15,000 15.99% 13.34% 13.34% $15,000 - $24,999 13.66% 13.38% 13.38% $25,000 - $34,999 11.65% 14.80% 14.80% $35,000 - $49,999 13.51% 18.68% 18.68% $50,000 - $74,999 21.43% 19.30% 19.30% $75,000 - $99,999 10.87% 11.11% 11.11% $100,000 - $124,999 7.14% 4.35% 4.35% $125,000 - $149,999 2.95% 2.14% 2.14% $150,000 - $199,999 1.71% 1.44% 1.44% $200,000 - $249,999 0.47% 0.58% 0.58% $250,000 - $499,999 0.62% 0.78% 0.78% $500,000+ 0.00% 0.12% 0.12% 2015 Est. Average Household Income $54,259 $52,499 $51,821 2015 Est. Median Household Income $44,537 $41,816 $41,609 Arby s OFFERING MEMORANDUM Matthews Retail Advisors P. 15
Arby s 2709 Dick Pond Road Myrtle Beach, SC 29575 OFFERING MEMORANDUM Gary Chou Director Restaurant Practice Group direct +1.310.919.5827 MOBILE +1.714.928.8016 gary.chou@matthews.com License No. 01911222 Lawrence Shaw Broker of Record License No. 26145 Matthews Retail Advisors 841 Apollo Street, Suite 150 El Segundo, CA 90245 www.matthews.com