Burger King OFFERING MEMORANDUM 7581 MOBILE HWY, HOPE HULL, AL 36043
Table of Contents 03 Investment Highlights 04 06 Tenant Overview 10 Financial Overview Area Overview Exclusively Listed By Gary chou FVP & Senior Director Gary.Chou@matthews.com DIR (310) 919-5827 MOB (714) 928-8016 LIC # 01911222 (CA) kevin chang Associate Kevin.Chang@matthews.com DIR (310) 919-5828 MOB (951) 616-8918 LIC # 01976724 (CA) Kyle Matthews Broker of Record Lic # 110253 (AL) 2 Offering Memorandum
Investment Highlights LONG-TERM, WORRY-FREE INVESTMENT Latest Prototype This store was built in 2011 and showcases Burger King s 20/20 prototype! Long-Term Lease Brand new 20-year lease with Four (4), 5-Year options Absolute NNN Lease Tenant takes care of all landlord responsibilities including tax, insurance, maintenance, roof and structure Growing Cash Flow There are 8.00% increases every 5 years Excellent hedge against inflation! EXCELLENT TENANT WITH STRONG GUARANTY Nationally Recognized Operator Premier Kings was named franchise of the year in 2015 for all Burger King operations in North America It received trophies for being the Southeast Operator of the Year for two years in a row and won the marketing excellence award as well! High Growth Operator Established in 2011, Premier Kings currently owns and operates over 130 units with annual revenues exceeding $140M annually. Strong Guarantee - Over 46 units with a long history of successful operations back the lease. STRONG REAL ESTATE FUNDAMENTALS Complementary Mix of National Tenants Fairfield Inn, Hampton Inn, Holiday Inn, Comfort Suites, Quality Inn, Motel 6, Waffle House, Subway, Hardee s/red Burrito, Chevron, McDonald s amongst others. Dense Industrial Park Mobile Hwy is the primary thoroughfare for Hyundai Power Transformers, Hager Hinge, Flowers Baking, FedEx Ground, Lear Corporation, WestRock, Pha Body Systems, Genpak, Viscofan and MS Companies. Active Traffic Counts Interstate 65 supports over 32,000 VPD and Mobile Hwy supports over 10,000 VPD 03
Financial Overview
7581 Mobile Hwy, Hope Hull, AL 36043 List Price $1,818,000 ANNUALIZED OPERATING DATA Monthly Rent Annual Rent Rent/SF Cap Rate Year 1-5 $8,333.33 $100,000 $30.77 5.50% Year 6-10 $8,958.33 $107,500 $33.08 5.91% Cap Rate 5.50% Year 11-15 $9,630.21 $115,563 $35.56 6.36% Year 16-20 $10,352.47 $124,230 $38.22 6.83% Option 1 $11,128.91 $133,547 $41.09 7.35% Option 2 $11,963.58 $143,563 $44.17 7.90% Option 3 $12,860.85 $154,330 $47.49 8.49% Option 4 $13,825.41 $165,905 $51.05 9.12% TENANT SUMMARY Tenant Trade Name Burger King Lot Size ± 0.84 AC GLA ± 3,250 SF Type of Ownership Lease Guarantor Lease Type Roof and Structure Rent Commencement Date Lease Expiration Date Term Remaining on Lease Fee Simple Premier Kings NNN Tenant Responsible COE TBD ± 20 Years Year Built 2011 Increases Options 8% in Options Four, 5-Year Options 05
Tenant Overview
Parent Company Trade Name Restaurant Brands International, INC Ownership Public Revenue $1.15 B No. of Locations ± 15,000 No. of Locations ± 15,000 No. of Employees ± 34,248 Headquartered Miami, FL Website www.bk.com Year Founded 1953 TENANT OVERVIEW Burger King Worldwide operates the world s #3 hamburger chain by sales with almost 15,000 restaurants in the US and more than 100 other countries. In addition to its popular Whopper sandwich, the chain offers a selection of burgers, chicken sandwiches, salads, and breakfast items, along with beverages, desserts, and sides. Many of the eateries are stand-alone locations offering dine-in seating and drive-through services; the chain also includes units in high-traffic locations such as airports and shopping malls. Burger King Worldwide is owned and operated by Restaurant Brands International. GEOGRAPHIC OUTREACH Burger King has restaurant locations throughout the US and more than 100 other countries. The US and Canada are responsible for about 65% of revenues. Like most other giants of the fast-food industry, Burger King has expanded its nationwide and international presence primarily through franchising. But the company has reduced its domestic expansion efforts recently. Burger King has used joint ventures to expand in countries like China, Mexico, Russia, and Singapore. STRATEGY Burger King has been remodeling outdated restaurant interiors and modernizing obsolete technology, thus positioning the company for future growth. Its goal is to have 40% of Burger King restaurants in the US and Canada on a modern image by the end of 2015. The company has also been steadily refranchising locations with the goal of getting to a 100% franchised business model eventually. PREMIER KINGS, INC. Premier Kings, Inc. is an Alabama, Georgia, and Tennessee based Burger King (± 130 unit) franchise. The company is owned by Patrick Sidhu who began working as a dishwasher as a teenager. Learning the restaurant business from the bottom up, he started as a shift manager and moved his way up to assistant manager, district manager, managing partner, director of operations, and finally vice president of operations. In addition to being named the Franchisee of the Year, Sidhu also received trophies for Southeast Operator of the Year two years in a row, segment winner for the 20-plus restaurant category, and won the marketing excellence award. Sidhu helped design the company s franchisee excellence program in 2014, which included the criteria of operations, marketing, sales and development, image and growth and profitability. Sidhu was the overall winner in the category of owning 20-plus stores. 07
Surrounding Tenants ± 32,000 ADT Subject Property 08
Parcel Map APN 14-05-15-0-000-019.005 Lot Size ± 0.84 AC GLA ± 3,250 SF Year Built 2011 Mobile Hwy ± 10,000 ADT 09
Area Overview
Hope Hull, AL Hope Hull is a town that is part of Montgomery County. Also known as McGehees Switch, the small town is located 8 miles southwest of Montgomery. The most common industries in Hope Hull are in construction and public administration. The Hope Hull residents are an active community full of mom and pop shops and family-oriented organizations. It is the perfect place if you are looking for a small-town feel, while just being a couple minutes outside of a large city. DEMOGRAPHICS Population 1 Mile 3 Mile 5 Mile 2023 Projection 4,844 14,164 125,371 2018 Estimate 4,985 14,625 127,322 2010 Census 5,400 16,012 133,838 Households 1 Mile 3 Mile 5 Mile 2023 Projection 1,902 5,393 49,235 2018 Estimate 1,945 5,531 49,743 2010 Census 2,070 5,950 51,698 Income 1 Mile 3 Mile 5 Mile 2018 Average Household Income $42,302.12 $44,588.73 $56,578.22 11
Montgomery, AL Montgomery is the capital of the U.S. state of Alabama and is the county seat of Montgomery County. Named for Richard Montgomery, it is located on the Alabama River, in the Gulf Coastal Plain. As of the 2010 Census, Montgomery had a population of 205,764. It is the second-largest city in Alabama, after Birmingham. The city has a ton to offer. It is one of the biggest arts scenes in the nation with world-renowned museums such as the Montgomery Museum of Fine Arts, the Hank Williams Museum, and The Society of Arts and Crafts that operates a co-op gallery for local artists. The area is also known for recognizing the performing arts. The Davis Theatre of the Performing Arts, located on the Troy University at Montgomery campus, is home to the Montgomery Symphony Orchestra, Alabama Dance Theatre, the Montgomery Ballet, and other theatrical productions. Montgomery has won several national awards including being voted Best Historic City by USA Today, being named an All-America City in 2014 by the National Civic League, being named a Top City For Job Growth in 2014 by ziprecruiter.com, and being named the happiest city in Alabama. Montgomery has also been recognized nationally for its successful, and ongoing downtown revitalization and new urbanism projects with Montgomery having been one of the first cities in the nation to implement Smart Code Zoning.
Economic Overview Montgomery is strategically located at the intersection of Interstate 65 and Interstate 85 at the center of the Black Belt region, making it an economic hub for many industries. It is home to many Alabama government agencies, but also has a strong military presence due to the Maxwell Air Force Base. Public universities like Alabama State University, Troy University, Auburn University at Montgomery, and Faulkner drive revenue into the local economy. Montgomery also has a strong industrial base that includes Hyundai Motor Manufacturing, Mercedes Benz and Honda. In recent years Montgomery has increased employment in the healthcare sector and it serves as a hub for healthcare in central Alabama and the Black Belt Region. This unique diversity provides a well-balanced economic environment that supports and fuels economic growth. Ranked as a Best Place to Start a Business of the most populated cities. Top City for Job Growth by ZipRecruiter.com Best City for First-Time Home Buyers in Alabama Happiest City in Alabama 13
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Burger King located at 7581 Mobile Hwy, Hope Hull, AL 36043 ( Property ). It has been prepared by Matthews Real Estate Investment Services. 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 Real Estate Investment Services. 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 Real Estate Investment Services 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 Real Estate Investment Services 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.
OFFERING MEMORANDUM 7581 MOBILE HWY, HOPE HULL, AL 36043 Exclusively Listed By Gary chou FVP & Senior Director Gary.Chou@matthews.com DIR (310) 919-5827 MOB (714) 928-8016 LIC # 01911222 (CA) kevin chang Associate Kevin.Chang@matthews.com DIR (310) 919-5828 MOB (951) 616-8918 LIC # 01976724 (CA) Kyle Matthews Broker of Record Lic # 110253 (AL)