REPRESENTATIVE PHOTO Arby s 659 Government St, Mobile, AL 36602 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 Arby s located at 659 Government St, Mobile, AL 36602 ( 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 Highlights... 2 Executive Summary... 3 Company Overview... 4 Property Description Physical Description... 7 Birds Eye... 8 Regional Map... 9 Tenant Map... 10 Demographics City Overview Mobile, AL... 14 Demographics Report... 15 EXCLUSIVELY LISTED BY: Gary Chou Director Restaurant Practice Group direct +1.310.919.5827 MOBILE +1.714.928.8016 gary.chou@matthews.com License No. 01911222 Justin Beck Broker of Record License No. 0000811420
Matthews Retail Advisors
Pricing & Financial Analysis
Investment Highlights QUALITY NATIONAL TENANT AND OPERATIONS Arby s Restaurant Group, Inc. is the second largest quick-service sandwich chain in the U.S. with more than 3,400 restaurants Corporate Guarantee: Arby s Restaurant Group, Inc Absolute NNN Investment Zero landlord responsibility making this investment great for out of state investors looking for passive income STRONG RETAIL CORRIDOR Mobile Public Library is within a quarter mile from this location This Arby s is located in the downtown area of Mobile, AL which has a population of over 200,000 people Mobile Civic Center is located to the east and contains a theater, an expo hall, and an arena Large residential area within a mile radius of Arby s National tenants in the area include: McDonald s, Popeye s, CVS, Hardee s, and Wendy s P. 2 Matthews Retail Advisors OFFERING MEMORANDUM Arby s
Executive Summary Arby s 659 Government St Mobile, AL 36602 List Price...$995,000 CAP Rate - Current...9.00% Gross Leasable Area... 3,000 SF Lot Size...0.8 Acres (34,848 SF) Year Built...1986 Annualized Operating Data Monthly Rent Annual Rent CAP Rate Current - 2/28/2017 $7,458.33 $89,500.00 9.00% Option 1-2/28/2022 $7,458.33 $89,500.00 8.99% Option 2-2/28/2027 $7,458.33 $89,500.00 8.99% Tenant Summary Tenant Trade Name Arby's Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 20 Lease Commencement Date 3/3/1997 Rent Commencement Date 3/3/1997 Lease Expiration Date 2/28/2017 Term Remaining on Lease 1.5 Increases None - Percentage Rent Options Two (2) 5-Year Options Arby s OFFERING MEMORANDUM Matthews Retail Advisors P. 3
Company Overview Property Name Arby s Property Type Net Leased Quick Service Restaurant Parent Company Trade Name Arby s Ownership Private Revenue $3.26 B No. of Locations 3,400+ No. of Employees 70,000+ Headquartered Sandy Springs, Georgia Web Site www.arbys.com Year Founded 1964 Arby s Restaurant Group, Inc. is the second largest quick-service sandwich chain in the U.S. with more than 3,400 restaurants system wide. Roark Capital Group acquired the company in July 2011 and owns 81.5% of the company, with The Wendy s Company owning the other 18.5%. In addition to its classic Roast Beef and Beef n Cheddar sandwiches, Arby s products also include delistyle Market Fresh line of sandwiches, Curly Fries and Jamocha Shakes. Its headquarters is in Sandy Springs, Georgia. As of December 31, 2013, there were 956 company-owned restaurants and 2,448 franchised restaurants. There are international locations in four countries outside of the United States: Canada, Turkey, United Arab Emirates and Qatar. P. 4 Matthews Retail Advisors OFFERING MEMORANDUM Arby s
Property Description
P. 6 Matthews Retail Advisors OFFERING MEMORANDUM Arby s
Physical Description THE OFFERING Property Name...Arby s Property Address...659 Government St Mobile, AL 36602 Assessor s Parcel Number... R-02-29-06-40-0-010-239 SITE DESCRIPTION Number of Stories...One Year Built...1986 Gross Leasable Area (GLA)...3,000 SF Lot Size... 0.8 Acres (34,848 SF) Type of Ownership...Fee Simple Parking... 45 Surface Spaces Parking Ratio... 15 : 1,000 SF Landscaping...Professional Topography... Generally Level CONSTRUCTION Foundation...Concrete Slab Framing...Wood Exterior... Painted Stucco Parking Surface...Asphalt Roof...Flat Arby s OFFERING MEMORANDUM Matthews Retail Advisors P. 7
Birds Eye P. 8 Matthews Retail Advisors OFFERING MEMORANDUM Arby s
Regional Map Arby s OFFERING MEMORANDUM Matthews Retail Advisors P. 9
Tenant Map P. 10 Matthews Retail Advisors OFFERING MEMORANDUM Arby s
Arby s OFFERING MEMORANDUM Matthews Retail Advisors P. 11
P. 12 Matthews Retail Advisors OFFERING MEMORANDUM Arby s
Demographics
City Overview Mobile, AL Mobile is the county seat of Mobile County, Alabama. The city is the third most populous city in the State of Alabama, the most populous in Mobile County, and the largest municipality on the Gulf Coast between New Orleans, Louisiana, and St. Petersburg, Florida. Alabama s only saltwater port, Mobile is located at the head of the Mobile Bay and the north-central Gulf Coast. The Port of Mobile has always played a key role in the economic health of the city beginning with the city as a key trading center between the French and Native Americans down to its current role as the 12th-largest port in the United States. Mobile is the principal municipality of the Mobile Metropolitan Statistical Area. As one of the Gulf Coast s cultural centers, Mobile has several art museums, a symphony orchestra, a professional opera, a professional ballet company, and a large concentration of historic architecture. Mobile is known for having the oldest organized Carnival celebrations in the United States. P. 14 Matthews Retail Advisors OFFERING MEMORANDUM Arby s
Demographics Report Population 1-Mile 3-Mile 5-Mile 2020 Projection 9,065 41,514 85,451 2015 Estimate 9,170 42,368 87,733 2010 Census 9,386 43,780 91,309 2000 Census 12,987 52,606 107,913 Growth 2015-2020 -1.14% -2.02% -2.60% Growth 2010-2015 -2.30% -3.23% -3.92% Growth 2000-2010 -27.73% -16.78% -15.39% Households 2020 Projection 3,607 16,809 34,109 2015 Estimate 3,622 16,998 34,755 2010 Census 3,653 17,278 35,694 2000 Census 4,762 20,137 40,876 Growth 2015-2020 -0.42% -1.12% -1.86% Growth 2010-2015 -0.85% -1.62% -2.63% Growth 2000-2010 -23.28% -14.20% -12.68% Income $0 - $15,000 33.16% 30.19% 30.19% $15,000 - $24,999 14.52% 13.79% 13.79% $25,000 - $34,999 11.26% 12.52% 12.52% $35,000 - $49,999 11.46% 12.97% 12.97% $50,000 - $74,999 11.71% 13.17% 13.17% $75,000 - $99,999 5.94% 6.74% 6.74% $100,000 - $124,999 5.05% 4.42% 4.42% $125,000 - $149,999 2.35% 2.19% 2.19% $150,000 - $199,999 2.21% 1.98% 1.98% $200,000 - $249,999 0.94% 0.82% 0.82% $250,000 - $499,999 1.10% 0.96% 0.96% $500,000+ 0.30% 0.25% 0.25% 2015 Est. Average Household Income $46,166 $45,963 $42,599 2015 Est. Median Household Income $27,078 $29,815 $28,598 Arby s OFFERING MEMORANDUM Matthews Retail Advisors P. 15
Arby s 659 Government St Mobile, AL 36602 OFFERING MEMORANDUM Gary Chou Director Restaurant Practice Group direct +1.310.919.5827 MOBILE +1.714.928.8016 gary.chou@matthews.com License No. 01911222 Justin Beck Broker of Record License No. 0000811420 Matthews Retail Advisors 841 Apollo Street, Suite 150 El Segundo, CA 90245 www.matthews.com