Strong Corporate Guarantee 15 Year NNN Lease Next to Texas Tech University New Construction Church s Chicken 6410 19th Street Lubbock, TX OFFERING MEMORANDUM Church s Chicken, Lubbock, TX
contents 04 EXECUTIVE SUMMARY 06 08 13 financial OVERVIEW tenant overview area OVERVIEW exclusively listed by chad kurz SVP & National Director Chad.Kurz@matthews.com DIR (214) 692-2927 MOB (562) 480-2937 LIC # 01911198 Calvin Short FVP & Senior Director - STNL Calvin.Short@matthews.com DIR (949) 432-4506 MOB (310) 567-3525 LIC # 01927216 Jake Seijas Associate Jake.Seijas@matthews.com DIR (310) 919-5776 MOB (415) 847-0566 LIC # 01974332 Kyle Matthews BROKER OF RECORD LIC # 678067 Church s Chicken, Lubbock, TX
executive summary investment highlights Property & LEase Corporate guarantee with Church s Chicken parent company, Cajun Global, LLC Brand new 15-year absolute NNN lease 7.50% rent increases every 5 years Brand new, high-quality construction Church s Chicken has over 1,700 in more than 30 countries Store Sales for Church s Chicken in America are in excess of $850,000,000 STRONG SURROUNDING DEMOGRAPHICS Property is located in Lubbock, TX A thriving university city which is home to Texas Tech University Texas Tech University has over 35,000 students Texas Tech University has seen 8 consecutive years of record enrollment Over the past decade, enrollment is up ± 30% Ideal location off of busy street with traffic counts of close to 10 million vehicles per year Strong demographics with nearly 150,000 people in a 5-mile radius with consistent growth Income tax-free state in the booming Texas economy Located about 1-mile away from Lubbock Christian University with enrollment of ± 2,000 students Strong retail synergy, located between CVS and Academy Sports and next to new O Reilly Auto Parts Property is located off of the same street as Texas Tech s southern entrance 4 Matthews Retail Advisors
Church s Chicken, Lubbock, TX
financial overview
Church s Chicken 6410 19th Street Lubbock, TX 79407 List Price... $1,672,727 CAP Rate - Current... 5.50% Gross Leasable Area...± 3,500 SF Lot Size... ± 0.55 Acres Year Built... 2016 Annualized Operating Data Monthly Rent Annual Rent Rent/SF Cap Rate June 1, 2016 $7,666.67 $92,000.00 $40.00 5.50% June 1, 2021 $8,241.67 $98,900.00 $43.00 5.91% June 1, 2026 $8,859.79 $106,317.50 $46.23 6.36% Option 1 $9,524.28 $114,291.31 $49.69 6.83% Option 2 $10,238.60 $122,863.16 $53.42 7.35% Option 3 $11,006.49 $132,077.90 $57.43 7.90% Option 4 $11,831.98 $141,983.74 $61.73 8.49% Tenant Summary Tenant Trade Name Church s Chicken Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 15 Years Lease Commencement Date September 14, 2015 Rent Commencement Date April 6, 2016 Lease Expiration Date April 5, 2031 Term Remaining on Lease 15 Years Increases 7.50% Every 5 Years Options Four (4), Five (5) Year Church s Chicken, Lubbock, TX 7
tenant overview
tenant overview Company Name Ownership Parent Company Trade Name Church s Chicken Private Friedman Fleischer & Lowe No. of Locations ± 1,700 Headquartered Website Sandy Springs, GA www.churchs.com Year Founded 1952 Church s Chicken For more than 60 years, Church s Chicken has been one of the largest quick service restaurant chicken chains in the world. Founded in Texas by George W. Church, Sr., in 1952, Church s Chicken is now an international brand and one of the fastest growing chicken franchises worldwide. In addition to its famous fried chicken, Church s offers a diverse menu that includes chicken wings and sandwiches as well as fried okra and jalapeño cheese bombers as side dishes. A big hit with customers is Church s unique Honey Butter Biscuits, which are hand-made from scratch. With their dedication to providing affordable and flavorful home-style chicken meals in a business model proven to be efficient and profitable, Church s Chicken offers highly attractive franchise opportunities for entrepreneurs. Church s expansion Church s chicken is about to undergo a large-scale domestic 10-year expansion. Some of the new markets slated for this expansion include multiple restaurants in the Nashville, Knoxville, and Chattanooga areas with another 10-restaurant deal expected to follow in 2021. Leaders have estimated that the real estate construction and design value will be more than a $40 million investment. In 2017, Church s Chicken is also looking to expand about 80-100 units in the international market. Church s Chicken is also looking at more non-traditional locations such as airports, bus stops, and malls. Church s Chicken, Lubbock, TX 9
the offering parcel map Property Name Property Address Assessor s Parcel Number Church s Chicken 6410 19th Street Lubbock, TX 79407 R143268 Zoning C-3 Oceanside Blvd ± 31,792 Site Description Number of Stories One Year Built 2016 Gross Leasable Area (GLA) ± 3.500 SF Lot Size ± 0.55 Acres (24,106 SF) Type of Ownership Fee Simple Parking Asphalt Parking Ratio 12 : 1,000 SF Landscaping Professional Topography Generally Level 19th Street ± 25,000 ADT College Blvd ± 40,116 10 Matthews Retail Advisors
bird s eye aerial
East south north
area overview lubbock demographics POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 13,676 66,253 166,238 2017 Estimate 12,596 61,413 155,379 2010 Census 11,367 55,190 140,559 2000 Census 8,656 46,974 120,302 Growth 2017-2022 8.57% 7.88% 6.99% HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2022 Projection 5,604 27,492 65,225 2017 Estimate 5,174 25,419 60,766 Growth 2017-2022 8.31% 8.15% 7.34% INCOME 1 Mile 3 Mile 5 Mile 2017 Est. Average Household Income $59,796 $60,776 $66,501 Church s Chicken, Lubbock, TX 13
lubbock, Texas Lubbock has grown into a vibrant and bustling city. While many things have changed since its incorporation in 1909, one thing has remained the same: Lubbock continues to be known for the charm and hospitality of its people. Today Lubbock is the crossroads of culture in West Texas. It is the hub of art exhibits, awardwinning wineries, live music, theatrical performances and more. Thanks to its thriving and increasingly diverse art and culture scene, Lubbock attracts millions of visitors each and every year. Museums like the Buddy Holly Center and the West Texas Walk of Fame, attract thousands of visitors each year from across the world and are lasting proof of the thriving musical talent developing in Lubbock. The other museums in Lubbock, such as the American Wind Power Museum, the National Ranching Heritage Center, the Museum of Texas Tech University or the Silent Wings Museum, all tell a unique story that grasps the attention of visitors and take you on a journey through history. Texas tech university Tech Tech University is a public institution located in the heart of Lubbock. Texas tech has a total undergraduate enrollment of 29,237. TTU has emerged as one of the top public university systems in the nation and is a dynamic force in higher education. Today, the TTU System consists of four component institutions and operates at multiple campuses and academic sites across state and globe.
regional map Subject Property local map Church s Chicken, Lubbock, TX
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Church s Chicken located at 6410 19th Street, Lubbock, TX 79407 ( 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.
exclusively listed by chad kurz SVP & National Director Chad.Kurz@matthews.com DIR (949) 432-4509 MOB (818) 632-0233 LIC # 0191198 Calvin Short FVP & Senior Director - STNL Calvin.Short@matthews.com DIR (949) 432-4506 MOB (310) 567-3525 LIC # 01927216 Jake Seijas Associate Jake.Seijas@matthews.com DIR (310) 919-5776 MOB (415) 847-0566 LIC # 01974332 Kyle Matthews BROKER OF RECORD LIC # 678067 Church s Chicken 6410 19th Street Lubbock, TX Church s Chicken, Lubbock, TX
Information About Brokerage Services Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. 11-2-2015 TYPES OF REAL ESTATE LICENSE HOLDERS:. A BROKER is responsible for all brokerage activities, 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 information about the property or transaction received by the broker; Answer the client s questions and present any offer to or counter-offer from the client; and Treat all parties to a real estate transaction 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 written listing to sell or property management agreement. An owner's agent must perform the broker s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information 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 written representation agreement. A buyer's agent must perform the broker s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary: Must treat all parties to the transaction impartially and fairly; May, with the parties' written 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 instructions of each party to the transaction. Must not, unless specifically authorized in writing to do so by the party, disclose: ᴑ that the owner will accept a price less than the written asking price; ᴑ ᴑ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and any confidential information or any other information that a party specifically instructs the broker in writing 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 transaction 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 duties and responsibilities to you, and your obligations under the representation 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 notice is being provided for information purposes. It does not create an obligation for you to use the broker s services. Please acknowledge receipt of this notice below and retain a copy for your records.
Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone 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 Buyer/Tenant/Seller/Landlord Initials Regulated by the Texas Real Estate Commission Date Information available at www.trec.texas.gov IABS 1-0