OFFERING MEMORANDUM Buffalo Wild Wings 7916A S BROADWAY AVE - TYLER, TX
EXCLUSIVELY LISTED BY Jake Seijas Associate Jake.Seijas@matthews.com DIR (310) 919-5776 MOB (415) 847-0566 LIC # 01974332 (CA) Calvin short FVP & Senior Director Calvin.Short@matthews.com DIR (949) 432-4506 MOB (310) 567-3525 LIC # 01927216 (CA) C O N T E N T S 5 INVESTMENT OVERVIEW 6 FINANCIAL ANALYSIS 8 TENANT OVERVIEW Kyle Matthews BROKER OF RECORD LIC # 9005919 10 PROPERTY OVERVIEW 14 AREA OVERVIEW
4 Buffalo Wild Wings - Tyler, TX I N V E S T M E N T O V E R V I E W
INVESTMENT HIGHLIGHTS 5+ years remaining on corporately guaranteed lease Absolute NNN lease, with one of the most popular restaurant concepts in the country, whose market cap exceeds $1.5 billion 9% rental increases every 5 years in the base term, 5% increase in the first option, and 8% increases in options 2 & 3 Previously a franchisee operated store before corporate chose to take over in 2015 Buffalo Wild Wings is continuing to offer Fast Break lunch specials, delivery, and convenient take out to engage their customers & fit their needs Oversized Parcel at 1.39 acres with ±85 parking spaces Strong demographics with ±73,000 residents located within a 5-mile radius of the subject property & HH incomes over $75,000 Located in a strong retail area, just north of the new Village at Cumberland Park shopping center development MATTHEWS 5
6 Buffalo Wild Wings - Tyler, TX F I N A N C I A L A N A L Y S I S
Buffalo Wild Wings 7916A S Broadway Ave Tyler, TX 75703 List Price...$ 3,137,673 CAP Rate...8.00% (1) Gross Leasable Area...± 6,000 SF Lot Size...± 1.39 Acres (60,331 SF) Year Built... 2007 (1) Based on renewal rent on 1.21.2018 Annualized Operating Data Monthly Rent Annual Rent Increases Cap Rate 1/21/2018-1/31/2023 $20,917.82 $251,013.84 9% 8.00% Option 1 $21,963.71 $263,564.53 5% 8.40% Option 2 $23,720.81 $284,649.69 8% 9.07% Option 3 $25,618.47 $307,421.67 8% 9.80% Tenant Summary Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Original Lease Term Buffalo Wild Wings Fee Simple Corporate NNN 15 years Rent Commencement Date 1/1/2008 Lease Expiration Date 1/31/2023 Term Remaining on Lease Increases Options ± 5.25 years 9% Increases every 5 years in the base term 5% increase in Option 1 8% increases in Options 2 and 3 Three 5-Year Options MATTHEWS 7
8 Buffalo Wild Wings - Tyler, TX T e n a n t O v e r v i e w
Property Name Property Type Parent Company Trade Name Ownership Stock Symbol Revenue Net Income Buffalo Wild Wings Net Leased Casual Dining Buffalo Wild Wings, inc. Public BWLD $1.94 B $416 M No. of Locations ± 1,200 No. of Employees ± 6,600 Headquartered Minneapolis, MN Website www.buffalowildwings.com Year Founded 1982 TENANT OVERVIEW Operating since 1982, Buffalo Wild Wings has locations in every U.S. state, Canada, Mexico and The Philippines. The first Buffalo Wild Wings was founded near the Ohio State University and began franchising their restaurants in 1991. The restaurant chain became public in November of 2003. It is a premier destination for sports fans and those seeking a family-friendly casual dining environment. They are popularly known for their Buffalo and New York-style chicken wings, offered in 21 different sauces and seasonings. In addition to wings and sports, BWW offers competitions such as trivia and video games in their restaurants. BWW continues to expand every year and promote their brand. Buffalo Wild Wings launched a re-franchising program in June 2017. The company has picked 83 restaurants to be re-franchised in regions including: Canada, Central and Eastern Pennsylvania, Northeast U.S., South Texas, and Washington, D.C. The restaurant also recently retained the Cypress Group, A leading restaurant, and franchise investment banking firm, with 25 years of multi-unit M&A and corporate re-franchising experience, to manage the initiative. MATTHEWS 9
10 Buffalo Wild Wings - Tyler, TX P r o p e r t y O v e r v i e w
The Offering Parcel Map Property Name Property Address Buffalo Wild Wings 7916A S Broadway Ave Tyler, TX 75703 Zoning C-1 Parcel Number 15000-0115-00-0002000 Site Description Number of Stories One Year Built 2007 Gross Leasable Area (GLA) Lot Size Type of Ownership Parking Parking Ratio Landscaping ± 6,000 SF ± 1.39 Acres (60,331 SF) Fee Simple ± 85 Surface Spaces 14.16 : 1,000 SF Professional N Oceanside Blvd ± 31,792 MATTHEWS 11
S u r r o u n d i n g T e n a n t s 12 Buffalo Wild Wings - Tyler, TX
MATTHEWS 13
14 Buffalo Wild Wings - Tyler, TX a r e a O v e r v i e w
Tyler, TX As the Rose Capital of the United States and the economic hub of northeast Texas, Tyler is a great location to live and do business. Tyler is in Smith county and is by far the largest city in the county and it is the principal city of the Tyler Metropolitan Area. The city is home to America s largest rose garden, which is why it claims the title of the Rose Capital. Considering its size, Tyler has a lot to offer. From outdoor adventure including golf, lakes, zip lining, farms, water parks, horse parks and so much more. Downtown Tyler also has an assortment of attractions from the Legrand Home and Museum, Discovery Science Place, and several breweries. Tyler has various museums, zoos, wineries and history for people of all interests. Tyler is only an hour and a half from, TX. It s location makes it convenient for those traveling and in need of access to a larger metro area. Tyler Demographics POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 4,729 34,989 78,297 2017 Estimate 4,440 32,489 73,987 2010 Census 4,120 29,316 69,053 2000 Census 3,479 23,253 58,071 Growth 2010-2017 7.77% 10.82% 7.14% Growth 2017-2022 6.51% 7.70% 5.83% HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2022 Projection 2,051 15,405 32,756 2017 Estimate 1,922 14,317 30,954 Growth 2017-2022 6.71% 7.60% 5.82% INCOME 1 Mile 3 Mile 5 Mile 2017 Est. Average Household Income $77,757 $87,756 $81,172 MATTHEWS 15
, TX FORTUNE 500 COMPANIES is a major city in the state of Texas. It is the ninth most populated city in the United States with the -Fort Worth metroplex is the fourth most populated metropolitan area in the nation. A majority of is in county, although it does spread into four other counties. The area offers everything from downtown city life, surrounding suburban areas, historic sites, and a thriving economy. has a rich history that helped form what the country is today. There are many different historic sites around to explore, although has always been known to be the leader in creative, new ways to help build up the area for the better. Even with the large numbers, works within the city to make sure each area is as best as it can be. From a great night in the city to catching a fierce Texas high school football game, always has something going on. Company Exxon Mobil AT&T Energy Transfer Equity American Airlines Group Tenet Healthcare Southwest Airlines Kimberly-Clark Fluor Corporation Holly Frontier Texas Instruments J.C. Penney Jacobs Engineering D.R. Horton GameStop Dean Foods Alliance Data Systems Trinity Industries Dr Pepper Snapple Group Commercial Metals Celanese Energy Future Holdings Location Irving Fort Worth Irving Irving Plano Fort Worth Grapevine Plano Plano Irving 16 STAPLES - BRONX, NY
OFFERING MEMORANDUM Buffalo Wild Wings 7916A S BROADWAY AVE - TYLER, TX EXCLUSIVELY LISTED BY Jake Seijas Associate Jake.Seijas@matthews.com DIR (310) 919-5776 MOB (415) 847-0566 LIC # 01974332 (CA) Calvin short FVP & Senior Director Calvin.Short@matthews.com DIR (949) 432-4506 MOB (310) 567-3525 LIC # 01927216 (CA) Kyle Matthews BROKER OF RECORD LIC # 9005919
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Buffalo Wild Wings located at 7916A S Broadway Ave, Tyler TX 75703 ( 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.
Information About Brokerage Services Texas law requires all real estate license holders to give the following informaɵon about brokerage services to prospecɵve buyers, tenants, sellers and landlords. 11-2-2015 TYPES OF REAL ESTATE LICENSE HOLDERS:. A BROKER is responsible for all brokerage acɵviɵes, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker s own interests; Inform the client of any material informaɵon about the property or transacɵon received by the broker; Answer the client s quesɵons and present any offer to or counter-offer from the client; and Treat all parɵes to a real estate transacɵon honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a wriʃen lisɵng to sell or property management agreement. An owner's agent must perform the broker s minimum duɵes above and must inform the owner of any material informaɵon about the property or transacɵon known by the agent, including informaɵon disclosed to the agent or subagent by the buyer or buyer s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a wriʃen representaɵon agreement. A buyer's agent must perform the broker s minimum duɵes above and must inform the buyer of any material informaɵon about the property or transacɵon known by the agent, including informaɵon disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parɵes the broker must first obtain the wriʃen agreement of each party to the transacɵon. The wriʃen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaɵons as an intermediary. A broker who acts as an intermediary: Must treat all parɵes to the transacɵon imparɵally and fairly; May, with the parɵes' wriʃen consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instrucɵons of each party to the transacɵon. Must not, unless specifically authorized in wriɵng to do so by the party, disclose: ᴑ that the owner will accept a price less than the wriʃen asking price; ᴑ ᴑ that the buyer/tenant will pay a price greater than the price submiʃed in a wriʃen offer; and any confidenɵal informaɵon or any other informaɵon that a party specifically instructs the broker in wriɵng not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacɵon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker s duɵes and responsibiliɵes to you, and your obligaɵons under the representaɵon agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This noɵce is being provided for informaɵon purposes. It does not create an obligaɵon for you to use the broker s services. Please acknowledge receipt of this noɵce below and retain a copy for your records. Kyle Matthews/Matthews Retail Group Inc. 678067 kyle.matthews@matthews.com (310) 919-5757 Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone Kyle Matthews 678067 kyle.matthews@matthews.com (310) 919-5757 Designated Broker of Firm License No. Email Phone Licensed Supervisor of Sales Agent/ Associate License No. Email Phone Sales Agent/Associate s Name License No. Email Phone Regulated by the Texas Real Estate Commission Buyer/Tenant/Seller/Landlord Initials Date InformaƟon available at www.trec.texas.gov IABS 1-0