OFFERING MEMORANDUM Arby s 3475 Braselton Hwy Dacula, GA Arby s, Dacula, GA 1
EXCLUSIVELY LISTED BY JON PRATER Associate jon.prater@matthews.com DIR 949.432.4516 MOB 626.483.0780 LIC # 02013987 (CA) ARON CLINE SVP & Senior Director aron.cline@matthews.com DIR 949.432.4509 MOB 818.632.0233 LIC # 01904371 (CA) BROKER OF RECORD KYLE MATTHEWS BROKER OF RECORD LIC # 363764 (GA)
CONTENT 04 ASSET OVERVIEW 08 TENANT OVERVIEW 10 PROPERTY DETAILS 14 AREA OVERVIEW Arby s, Dacula, GA 3
ASSET OVERVIEW Arby s 3475 Braselton Hwy Dacula, GA 30019 List Price...$2,950,000 CAP Rate - Current... 5.90% Gross Leasable Area... ± 3,378 SF Lot Size... ± 0.98 Acres Year Built...2005 INVESTMENT HIGHLIGHTS Strong Retail Corridor Position: Surrounded by National Tenants including Publix, Starbucks, Five Guys, Home Depot, Kohl s, Petco, ALDI, McDonald s, Zaxby s, Wendy s and Wells Fargo Bank Highly traveled intersection that sees traffic counts of ± 35,000 ADT Excellent Demographics: Population of ± 118,000 within a 5-mile radius of the subject property Exceptional Double-Digit Growth: 15% population increase in the last 7 years with a projected 10% in the next 5 years Affluent Population: The average household income within a 1-mile radius exceeds $114,000 Major residential development less than 3 miles away: 75 New singlefamily homes and 15 townhomes, a church and school Corporate Guarantee with Arby s Restaurant Group Absolute NNN: Zero Landlord Responsibilities 10% fixed rental increases every 5 years of both primary term and options Four (4), Five (5) year options to renew 4 Offering Memorandum
Annualized Operating Data Monthly Rent Annual Rent Rent/SF Cap Rate Year 10-15 $14,503 $174,036 $51.52 5.90% Year 15-20 $15,953.30 $191,439.60 $56.67 6.49% Option 1 $17,548.63 $210,583.56 $62.34 7.14% Option 2 $19,303.49 $231,641.92 $68.57 7.85% Option 3 $21,233.84 $254,806.11 $75.43 8.64% Option 4 $23,357.23 $280,286.72 $82.97 9.50% Tenant Summary Tenant Trade Name Arby s Type of Ownership Fee Simple Lease Guarantor Arby s Restaurant Group Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 20 Years Lease Commencement Date 6/17/2004 Lease Expiration Date 12/31/2024 Term Remaining on Lease ± 7.54 Years Increases 10% Increases Every Five (5) Years Options Four (4), Five (5) Year Options Arby s, Dacula, GA 5
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Arby s, Dacula, GA 7
TENANT OVERVIEW Parent Company Trade Name Arby s Restaurant Group, Inc. No. of Locations ± 3,500 No. of Employees ± 130,000 Headquartered Sandy Springs, Georgia Year Found 1964 Arby s Private www.arby s.com OVERVIEW Arby s Fast Crafted restaurant services feature a unique blend of quick-serve speed combined with the quality and made-for- you care of fast casual. Arby s Restaurant Group, Inc. is the franchisor of the Arby s Brand and is headquartered in Atlanta, GA. Arby s Restaurant Group (ARG) operates the Arby s fast food chain popular for its hot roast beef sandwiches. In addition to roast beef sandwiches, its menu features chicken sandwiches, salads, and some dessert items. More than 1,100 Arby s locations are company-owned, while the rest are franchised. ARBY S RECORD YEAR Arby s had a record year in 2016 and pushed sales over $3.6 billion according to QSR magazine. Arby s outperformed the quick service industry by 2.3 percentage points and marked 25 consecutive quarters of SSS growth. The fourth quarter of 2016, marked 11 consecutive quarters of transaction growth and 16 consecutive quarters of industry performance for the brand. Arby s plans to continue high volume sales by inking deals with new and exciting Arby s franchisees for the development of 167 new restaurants system wide. REBRANDING AND REMODELING STRATEGY Arby s is looking to revitalize its guest experience by remodeling 229 restaurant systemwide in the Inspire design. Arby s has re-engineered its restaurants to reduce development costs, expand site selection options, and deliver an upgraded guest experience. Arby s has improved ROI by stripping out some of the costs of opening or remodeling a restaurant. The Inspire design reduces development and remodeling costs, increases restaurant efficiency, and is highly adaptable to a wide range of site opportunities. 8 Offering Memorandum
Arby s, Dacula, GA 9
PROPERTY DETAILS THE OFFERING Property Name Property Address Assessor s Parcel Number Zoning Arby s 3475 Braselton Hwy Dacula, GA 92056 3-002A-311 C2, County Oceanside Blvd ± 31,792 Site Description Number of Stories One Year Built 2005 Gross Leasable Area (GLA) ± 3,378 SF Lot Size ± 0.98 Acres (42,689 SF) Type of Ownership Fee Simple Parking ± 40 Surface Spaces Parking Ratio 3.17 : 1,000 SF Landscaping Professional Topography Generally Level Construction Foundation Framing Exterior Parking Surface Roof Concrete Slab Wood Brick Asphalt Flat PARCEL MAP 10 Offering Memorandum
Hamilton Creek Parkway Braselton Highway SURROUNDING TENANTS Arby s, Dacula, GA 11
PROPERTY DEMOGRAPHICS POPULATION 1-Mile 3-Mile 5-Mile 2022 Projection 6,171 53,294 131,645 2017 Estimate 5,600 48,047 118,677 Subject Property Growth 2017-2022 10.20% 10.92% 10.93% Growth 2010-2017 19.39% 22.55% 22.93% HOUSEHOLDS 1-Mile 3-Mile 5-Mile 2022 Projection 1,946 15,849 40,260 2017 Estimate 1,777 14,399 36,582 Growth 2017-2022 9.51% 10.07% 10.05% INCOME 1-Mile 3-Mile 5-Mile 2017 Est. Average Household Income $114,520 $99,767 $97,345 PROXIMAL LOCATION TO INTERSTATE 85, WHICH SEES TRAFFIC COUNTS OF ± 35,000 ADT HAMILTON ROAD AND BRASELTON HIGHWAY INTERSECTION, WHICH SEES TRAFFIC COUNTS OF ± 50,000 ADT 12 Offering Memorandum
Braselton Highway IMMEDIATE TRADE AREA Arby s, Dacula, GA 13
AREA OVERVIEW Atlanta, GA Designated as the Atlanta-Sandy Springs-Roswell, GA Metropolitan Statistical Area, Metro Atlanta is the most populous metropolitan area in the state of Georgia and the ninth largest in the United States with an estimated population of 5.7 million people. The large, energetic and cosmopolitan area is a thriving regional center for the growing and increasingly prosperous American South. Playing a role as a transportation crossroads for both ground and air transport, Atlanta has become a vital regional and headquarters business center for large corporations. Atlanta, which is considered an alpha world city, is the metropolitan area s economic, cultural and demographic center. Encompassing $304 billion, Metro Atlanta is the eight-largest economy in the world. 14 Offering Memorandum
Major Employers Economic Snapshot Atlanta is Georgia s capital and most populous city, as well as the economic and cultural hub of the Atlanta metropolitan area. The rapidly growing city contains the country s third largest concentration of Fortune 500 companies and is the global headquarters of corporations such as The Coca-Cola Company, The Home Depot, Delta Air Lines, AT&T Mobility, Chick-fil-A, UPS, and Newell-Rubbermaid. Drawn to the area due to the city s educated workforce, over 75 percent of Fortune 1000 companies conduct business operations in the Atlanta metropolitan area, and the region hosts offices of about 1,250 multinational corporations. Ranked 8th in the nation with a gross domestic product of $270 billion, Atlanta s economy is diverse. Dominant industries in the economy consist of logistics, professional and business services, media operations and information technology. Arby s, Dacula, GA 15
Culture Culturally, Atlanta sits at the crossroads between the old and new South largely due to a substantial influx of immigrants and migrants from other parts of the U.S. Old economy and agrarian interests coincide with modern corporate America and numerous technology and research interests. Atlanta s unique cultural combination has manifested itself in the city s contributing role in the development of various genres of American music, ranging from country music to Southern rock. Midtown Atlanta is the center of Atlanta s performing arts district, which features the Atlanta Symphony Orchestra and the Alliance Theatre at the Woodruff Arts Center. Containing a notable amount of historical museums and sites and outdoor attractions, Atlanta continues to be the seventh-most visited city in the United States with over 35 million visitors per year. As the world s largest indoor aquarium, the Georgia Aquarium is the most popular attraction among visitors Getting Around Since its founding, Atlanta has played a role as a transportation crossroads. It serves as home to Hartsfield-Jackson Atlanta International Airport, the world s busiest airport as measured by passenger and aircraft traffic. Hartsfield-Jackson offers air service to over 150 U.S. destinations and more than 80 international destinations in 52 countries. A heavy rail rapid transit system is provided by the Metropolitan Atlanta Rapid Transit Authority, connecting many key destinations such as the airport, Downtown, Midtown, Buckhead and Perimeter Center. The city s subway system is the eighth busiest in the country in lieu of the heavy automotive usage throughout the city. 16 Offering Memorandum
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Dacula, GA Dacula is a city in Gwinnett County located in the Atlanta Metropolitan Statistical area at the center of Georgia s innovation crescent. The innovation crescent is a geographic area and a coalition of fifteen counties and other entities. It includes Gwinnett County and all of the City of Dacula. But Dacula is much more than that. The unique small-town experience created and maintained in Dacula has helped to shape a sense of community found nowhere else. Dacula maintains a hometown feel and extend to residents and visitors southern hospitality. Dacula is a good place to raise a family and the vision for Dacula is to be known as an inclusive community where businesses thrive and residents maximize potential through world-class schools, opportunities for life-long, a vibrant economy, diverse partnerships, and a superior quality of life. The Innovation Crescent covers nearly 40 percent of Georgia s population. This is Georgia s hub for life sciences. It is Georgia s answer to the Research Triangle in North Carolina. The crescent includes top research organizations such as Emory University, Georgia Institute of Technology, the University of Georgia. The Innovation Crescent is becoming the hub of life science in the Southeast. The City of Dacula has always supported a superior educational system, producing many professionals in the arts, medicine, law, and life sciences. Gwinnett County Public Schools is considered to be a premier primary and secondary system producing students that achieve in higher education. Schools in the Dacula Cluster continue to provide excellent educational opportunities. 18 Offering Memorandum
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CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Arby s located at 3475 Braselton Hwy, Dacula, GA 30019 ( 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 JON PRATER Associate jon.prater@matthews.com DIR 949.432.4516 MOB 626.483.0780 LIC # 02013987 (CA) BROKER OF RECORD KYLE MATTHEWS BROKER OF RECORD LIC # 363764 (GA) ARON CLINE SVP & Senior Director aron.cline@matthews.com DIR 949.432.4509 MOB 818.632.0233 LIC # 01904371 (CA) Arby s 3475 Braselton Hwy Dacula, GA Arby s, Dacula, GA 21