Offering Memorandum BURGER KING 3368 RAILROAD AVENUE BAMBERG, SC 29003
CONTENTS 03 04 06 08 EXECUTIVE SUMMARY FINANCIAL OVERVIEW TENANT OVERVIEW AREA OVERVIEW LISTED BY Gary Chou SVP & 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) BROKER OF RECORD LAWRENCE SHAW BROKER OF RECORD LIC # 26145 (SC)
3 EXECUTIVE OVERVIEW INVESTMENT HIGHLIGHTS STABLE LONG-TERM INVESTMENT Long Term Lease - High growth franchisee tenant recently signed a brand new 20-year lease Tenant currently operates 8 units Pride of Ownership - The subject property is a brand-new construction Burger King featuring the BKs 20/20 prototype Scheduled Rental Increases - There are 10% increases every 5 years - Fantastic hedge against inflation Absolute NNN Investment - Tenant takes care of maintenance, taxes, insurance, roof and structural components of the property, leaving ZERO landlord responsibilities - Excellent investment for out of state investors MAIN RETAIL CORRIDOR Outparcel to BI-LO Other national tenants in the immediate area include Wells Fargo, Pizza Hut, Hardee s, Rite Aid, Dollar General and Fred s, to name a few TIME-TESTED CONCEPT Iconic Brand - Established in 1954, Burger King has grown into over 15,000 units worldwide and is one of the top quick service restaurants serving hamburgers globally Restaurant Brands International (RBI), the parent company of Burger King and Tim Horton s, recently purchased Popeyes for $1.8 billion - Ability to purchase indicates strength and performance of current concepts 3G Capital, the private equity firm that also owns time-tested brands such as Kraft Foods and Heinz, holds a majority stake in RBI
FINANCIAL OVERVIEW EXECUTIVE SUMMARY FINANCIAL HIGHLIGHTS Property Name Burger King Property Street 3368 Railroad Ave City, State, Zip Bamberg, SC 29003 GLA ±3,072 SF LIST PRICE CAP RATE TERM REMAINING Lot Size 0.50 AC (±21,780 SF) Year Built 2017 $1,985,000 6.50% ±19.5 Years TENANT SUMMARY Tenant Trade Name Burger King Corp. Type of Ownership Fee Simple Lease Guarantor Stix & Co. Inc. (8 Units) Lease Type NNN Roof & Structure Tenant Responsible Original Lease Term 20 years Rent Commencement Date 9/15/2017 Lease Expiration Date 9/14/2037 Term Remaining ±19.5 years Increases 10% every 5 years Options Four, 5-year options ANNUAL OPERATING DATA Monthly Rent Annual Rent Price/SF Cap Rate Year 1-5 $10,747.50 $128,970 $41.98 6.50% Year 6-10 $11,822.25 $141,867 $46.18 7.15% Year 11-15 $13,004.48 $156,054 $50.80 7.86% Year 16-20 $14,304.92 $171,659 $55.88 8.65% Option 1 $15,735.41 $188,825 $61.47 9.51% Option 2 $17,308.96 $207,707 $67.61 10.46% Option 3 $19,039.85 $228,478 $74.37 11.51% Option 4 $20,943.84 $251,326 $81.81 12.66% 4
SURROUNDING AREA Subject Property 5
TENANT OVERVIEW 6 6
COMPANY TRADE NAME RESTAURANT BRANDS INTERNATIONAL, INC BURGER KING REVENUE $1.15 B 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 standalone 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. NET INCOME ±$233.70 M HEADQUARTERED MIAMI, FL NO. OF EMPLOYEES ±34,248 WEBSITE WWW.BK.COM # OF LOCATIONS ±15,000 YEAR FOUNDED 1953 7
AREA OVERVIEW 8 Bamberg, SC Bamberg is the county seat of Bamberg County, South Carolina. Bamberg s cost of living is 18.90% below the national average. Being the county seat of Bamberg County, the city is home to the Bamberg County Library, County Health Department, County Office, the County Historical Society, and the County Economic Development Commission. The city is filled with southern charm with a tree-lined walking trail that runs along Highway 78. The town is continuously striving to better the community in both business and quality of life. Bamberg is 55 miles south of Columbia, SC and 61 miles southeast of Augusta. Demographics POPULATION 1 Mile 3 Mile 5 Mile 2023 Projection 2,671 4,420 5,578 2018 Estimate 2,778 4,597 5,804 2010 Census 3,124 5,166 6,556 HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2023 Projection 1,028 1,771 2,162 2018 Estimate 1,058 1,825 2,229 INCOME 1 Mile 3 Mile 5 Mile 2018 Est. Average Household Income $47,855.75 $48,828.92 $48,617.30
Columbia, SC Columbia is the capital city of South Carolina. The City also serves as the county seat of Richland County in central South Carolina. The South Carolina State House is in Columbia and serves as the center of government for the state. Columbia offers so much to both visitors and residents. The City has various museums and historical sites along with a zoo & garden, art galleries, and expansive shopping districts. The City also offers a variety of outdoor recreation including fishing, boating, camping, canoeing and kayaking at any of the parks found in Columbia. The University of South Carolina is the state s flagship city is located in Columbia. There is a constant flow of sporting events to attend at the NCAA DI University of South Carolina. Other universities in Columbia include Allen University, Benedict College, and Columbia College. Columbia is also home to Fort Jackson, the largest United States Army Installation for Basic Combat Training. Just 15 miles Southeast of Fort Jackson is McEntire Joint National Guard Base, which is operated by the U.S. Air Force. 9
10 Economy Columbia has taken on the term as The New Southern Hotspot, with its significant growth and revitalization, it has become a hub for talent, business, and recreation. Columbia is home to a variety of manufacturers that focus on high tech products. Manufacturing plays a key role in Columbia economy and overall growth of the area. Key players in the Columbia Manufacturing industry include Westinghouse Electric, FN manufacturing, and Intertape Polymer Group. Healthcare is another major contributor to the Columbia economy. The Medical University of South Carolina is a major influencer in research and advancing the health science field in the area. There are three major hospitals are also just short distances from downtown Columbia and all contribute to health being a top employer in the Capital City of South Carolina. Other major employers and industries in the area include Information Technology: Blue Cross Blue Shield, USC Technology Incubator, and IT-ology.
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Burger King s located at 3368 Railroad Ave, Bamberg, SC 29003 ( 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.
EXCLUSIVELY LISTED BY Gary Chou SVP & 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) BROKER OF RECORD LAWRENCE SHAW BROKER OF RECORD LIC # 26145 (SC) L BURGER KING 3368 RAILROAD AVENUE BAMBERG, SC 29003