APPLEBEE S 11227 SHAW AVE, MEADVILLE, PA 16335 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 Applebee s located at 11227 Shaw Ave, Meadville, PA 16335 ( 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 OVERVIEW... 2 EXECUTIVE SUMMARY...3 COMPANY OVERVIEW...4 PROPERTY DESCRIPTION PHYSICAL DESCRIPTION...7 BIRDS EYE... 8 REGIONAL MAP... 9 TENANT MAP...10 DEMOGRAPHICS CITY OVERVIEW MEADVILLE, PA...12 DEMOGRAPHICS REPORT...13 EXCLUSIVELY LISTED BY: Calvin Short Partner DIRECT +1.310.919.5770 MOBILE +1.310.567.3525 calvin.short@matthews.com License No. 01927216 Robin R Zellers, SIOR Broker of Record License No. RB024320A
Matthews Retail Advisors
PRICING & FINANCIAL ANALYSIS Pricing & Financial Analysis
INVESTMENT OVERVIEW Investments Highlights BRAND NEW 20 YEAR SALE-LEASEBACK New 20-year lease to be signed at close of escrow 7.50% increases every 5 years Absolute NNN investment - Zero landlord responsibilities Healthy 7.60% rent/sales - provides for sustainable operating margins 2015 annual store sales of $2,785,000 Extensive renovation in excess of $250,000 completed in June of 2014 PROVEN FRANCHISEE OPERATOR Scott Enterprises has been successfully operating in the Applebee s system since 1994 and currently operates 5 Applebee s restaurants in the greater Erie market The tenant currently operates 27 individual concepts, including 14 restaurants, 8 hotels, 2 resorts and 5 projects current under development Scott Enterprises has been a part of the Erie community for over 70 years and brings in over 4 million visitors to the area, annually IDEAL 1031 EXCHANGE PROPERTY Property delivered free and clear of debt The offering affords a buyer the opportunity to invest in a growing entity, as Scott Enterprises was recently welcomed into the IHOP system and is scheduled to develop and operate 2 new IHOP locations in the Erie market in 2016 An investor has the opportunity to take advantage of historically low interest rates - see page 3 for debt quotes P. 2 Matthews Retail Advisors OFFERING MEMORANDUM Applebee s
PRICING ANALYSIS EXECUTIVE SUMMARY APPLEBEE S 11227 SHAW AVE MEADVILLE, PA 16335 List Price...$3,548,283 CAP Rate - Current...6.00% Gross Leasable Area... ± 5,095 SF Lot Size... ± 0.86 Acres ( 37,461 SF) Year Built...1997; R-2014 Annualized Operating Data Monthly Rent Annual Rent Rent/SF CAP Rate Year 1-5 $17,741.42 $212,897.00 $41.79 6.00% Year 6-10 $19,072.02 $228,864.28 $44.92 6.45% Year 11-15 $20,502.42 $246,029.10 $48.29 6.93% Year 16-20 $22,040.11 $264,481.28 $51.91 7.45% Option 1 $23,693.11 $284,317.37 $55.80 8.01% Option 2 $25,470.10 $305,641.18 $59.99 8.61% Option 3 $27,380.36 $328,564.26 $64.49 9.26% Tenant Summary Debt Quote Loan Term 10 Years Interest Rate 4.50% Amortization 25 Year LTV 65% Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof and Structure Original Lease Term Lease Commencement Date Lease Expiration Date Increases Options Applebee s Fee Simple Franchisee NNN Tenant Responsible 20 Years Close of Escrow 20 Years from COE 7.50% Every 5 Years Three (3) Five (5) Year Applebee s OFFERING MEMORANDUM Matthews Retail Advisors P. 3
BRAND OVERVIEW Property Name Applebee s Gross Leasable Area ± 5,095 SF Property Type Casual Dining Parent Company Trade Name DineEquity, Inc Ownership Public Credit Rating B Revenue $4.54 Billion Net Income $21.9 Million Stock Symbol DIN Board NYSE No. of Locations ±2,003 No. of Employees ±28,000 Headquartered Glendale, CA Web Site www.applebees.com Year Founded 1980 With more than 2,000 restaurants in 49 states, 16 countries and one U.S. territory, Applebee s is the world s largest casual dining brand. Founded in 1980 in Atlanta, Georgia by Bill and T.J. Palmer, Applebee s has always been dedicated to full service, consistently good food, reasonable prices and quality service in a neighborhood setting while continuously introducing fresh, innovative dishes for guests to enjoy. Applebee s Services Inc., and its affiliates, franchise and operate restaurants under Applebee s Neighborhood Grill & Bar and are a DineEquity, Inc. brand. P. 4 Matthews Retail Advisors OFFERING MEMORANDUM Applebee s
PROPERTY DESCRIPTION
P. 6 Matthews Retail Advisors Representative Photo OFFERING MEMORANDUM Applebee s
PROPERTY PHYSICAL DESCRIPTION THE OFFERING Property Name... Applebee s Property Address...11227 Shaw Ave, Meadville, PA 16335 Assessor s Parcel Number...0387-4146-19 SITE DESCRIPTION Number of Stories...One Year Built...1997 Gross Leasable Area (GLA)... ± 5,095 SF Lot Size... 0.86 Acres (37,461 SF) Type of Ownership...Fee Simple Parking...60 Surface Spaces Parking Ratio... 9.23 : 1,000 SF Landscaping...Professional Topography... Generally Level Applebee s OFFERING MEMORANDUM Matthews Retail Advisors P. 7
BIRDS EYE Interstate 6 CPD: 27,000 P. 8 Matthews Retail Advisors OFFERING MEMORANDUM Applebee s
PROPERTY REGIONAL DESCRIPTION MAP Applebee s OFFERING MEMORANDUM Matthews Retail Advisors P. 9
PROPERTY TENANT MAP DESCRIPTION P. Applebee s 10 Matthews OFFERING Retail Advisors MEMORANDUM OFFERING Matthews MEMORANDUM Retail Advisors Applebee s P. 10
PROPERTY DESCRIPTION
DEMOGRAPHIC ANALYSIS CITY OVERVIEW MEADVILLE, PA Founded in 1788 and apart of Crawford County, the city of Meadville has always been a dynamic, energetic city continually transforming itself. Today, the Meadville area remains a leader in tooling, machining and advance manufacturing and the city serves as the region s center for banking, education and social services. Crawford County situated in northwest Pennsylvania was founded in 1800. Named for Colonel William Crawford - a soldier, surveyor, farmer and life-long friend of George Washington - Crawford County reflects the rich rural traditions of its diverse settlers and first inhabitants. Visitors and residents alike enjoy the treasures of Crawford County year-round. Covering an area of 1013 square miles, Crawford County is largely agricultural, with a strong industrial base of tool and plastics manufacturers centered in the Meadville area. A solid base of goods and service-oriented businesses is complemented by a flourishing tourism industry based on Crawford County s natural beauty and the environmental health of the region. Our communities share a rich and varied cultural life linked by country roads, railroads and scenic trails. Due to its unique geological history, Crawford County s landscape is unique in its variety. The terrain changes from plains and broad low valleys in the west to near-mountainous features in the east. In between is a vast area of rolling hills, clean streams, glacial lakes and marshes. French Creek, one of the world s most biologically diverse streams, runs through our county. Also calling Crawford County home is the 8,777-acre Erie National Wildlife Refuge - one of only two in the entire commonwealth. P. 12 Matthews Retail Advisors OFFERING MEMORANDUM Applebee s
DEMOGRAPHICS ANALYSIS REPORT Population 1-Mile 3-Mile 5-Mile 2020 Projection 990 18,603 25,984 2015 Estimate 984 18,734 26,202 2010 Census 983 19,005 26,621 2000 Census 962 19,010 26,830 Households 1-Mile 3-Mile 5-Mile 2020 Projection 476 7,958 10,953 2015 Estimate 468 7,957 10,981 2010 Census 461 7,983 11,054 2000 Census 438 7,923 10,824 Applebee s OFFERING MEMORANDUM Income 1-Mile 3-Mile 5-Mile $0 - $15,000 17.54% 20.48% 17.57% $15,000 - $24,999 14.67% 16.26% 15.19% $25,000 - $34,999 10.81% 11.75% 11.83% $35,000 - $49,999 14.70% 14.55% 14.64% $50,000 - $74,999 15.18% 15.15% 16.55% $75,000 - $99,999 12.17% 10.11% 11.15% $100,000 - $124,999 6.28% 5.47% 6.28% $125,000 - $149,999 3.90% 2.63% 2.85% $150,000 - $199,999 2.65% 1.95% 2.05% $200,000 - $249,999 0.92% 0.69% 0.76% $250,000 - $499,999 1.05% 0.81% 0.93% $500,000+ 0.13% 0.14% 0.21% 2015 Est. Average Household Income $57,255 $50,808 $54,520 2015 Est. Median Household Income $42,120 $36,555 $40,551 Matthews Retail Advisors P. 13
APPLEBEE S 11227 Shaw Ave Meadville, PA 16335 OFFERING MEMORANDUM Calvin Short Partner DIRECT +1.310.919.5770 MOBILE +1.310.567.3525 calvin.short@matthews.com License No. 01927216 Robin R Zellers, SIOR Broker of Record License No. RB024320A Matthews Retail Advisors 841 Apollo Street, Suite 150 El Segundo, CA 90245 www.matthews.com