REPRESENTATIVE PHOTO EXCLUSIVE OFFERING $1,771,000-6.25% CAP Washington DC metro EXP DALLAS 214.522.7200 BOB MOORHEAD bob@exp1031.com JOE CAPUTO joe@exp1031.com property. 5,700+ SF building on 1.41+ acre site. tenant. TGI Friday s: 900+ locations in 59 countries. 2011 revenue: $2.6 billion. lease structure. Ground Lease Absolute NNN. Recent 5-year option to renew exercised. 20% rent increases in each option period. location. TGI Friday s is directly located on the east side of Sudley Road (67,377 Cars / Day) on the north side of Manassas, VA. Sudley Road is one of Manassas s main north/south thoroughfares that leads commuters to Interstate 66 (128,640 Cars / Day). Other nearby retailers include Kohl s, Bed Bath & Beyond, Home Depot, Room Store, Ross, Dick s Sporting Goods. The Washington D.C. area is home to hundreds of major research universities, think tanks, and non-profit organizations. Washington-Arlington-Alexandria, DC-VA-MD-WV MSA Population: 5,860,342 7 th largest MSA in US
Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5-6: PAGE 7: PAGE 8-9: PAGE 10: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW SITE PLAN AERIAL PHOTO LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS Disclaimer Retail Resource Group, Inc. and EXP Realty Advisors, Inc. ( Agents ) have been engaged as agents for the sale of the property located at by the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, whereis condition and Seller and Agents make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agents or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agents each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agents are not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agents or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agents; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agents. 2
Investment overview PRICE: $1,771,000 CAP RATE: 6.25% NET OPERATING INCOME: $110,634 BUILDING AREA: 5,700+ Square Feet LAND AREA: 1.41+ Acres YEAR BUILT REMODELED: 1992 2012 Lease overview Current Lease Term: 5-Yrs & (1) 5-Year Option to Renew Current Rent Commencement: March 2014 Lease Expiration: February 2019 Lease Type: Ground Lease Absolute NNN Rent Increases: 20% In Option Period (Option 2 3/09-2/14): $92,196 (Option 3 3/14-2/19 - Current): $110,634 (Option 3 has been exercised) OWNERSHIP: Fee Simple Interest (Option 4 3/19-24): $132,762 LANDLORD RESPONSIBILITY: None OCCUPANCY: 100% Percentage Rent: Tenants Right of First Refusal: 2% over breakpoint Yes Tenant overview TGI Friday s www.tgifridays.com TGI Friday s Inc., aka Friday s, is arguably the most recognized chain in the casual dining sector in North America. Friday s was founded in 1965 with one restaurant in New York City. The company has since grown to generate well over $2.6 billion dollars in annual revenues thru 900+ restaurants in 59 countries and 49 states. Friday s is a wholly owned subsidiary of Carlson Companies who acquired the chain nearly 40 years ago in 1975. The parent of TGI Friday s Inc., Carlson Restaurants Worldwide, Inc (CRW), is a subsidiary of Carlson Companies, Inc. CarlsonSUBJECT Companies PROPERTY was founded in 1938 and is a global leader in the travel, cruise, restaurant and hotel industries. Today, the company is one of the largest privately owned corporations in the country PRIOR TO PANDA EXPRESS EXPANSION with operations in nearly 150 countries worldwide, employing approximately 160,000 people. In 2008 the company posted $38 billion in revenues. The company is headquartered in Minnetonka, Minnesota. 3
SITE PLAN 4
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Location overview 20109 IMMEDIATE TRADE AREA TGI Friday s is directly located on the east side of Sudley Road (67,377 Cars / Day) on the north side of Manassas, Va. Sudley Road is one of Manassas main north/south thoroughfares that leads commuters to Interstate 66 (128,640 Cars / Day). TGI Friday s is located near Hampton Inn and sits next to Chipotle. The property is located directly across from a retail area containing PETCO, Pizza Hut and 7-11. To the south of TGI Friday s is Lowes, Red Lobster, Olive Garden and a shopping center anchored by Best Buy and A.C. Moore. Other nearby retailers include Kohl s, Bed Bath & Beyond, Home Depot, Room Store, Ross, Dick s Sporting Goods, Autozone, NTB, and Burlington Coat Factory. The immediate trade area is predominately composed of multi-family communities and service/retail oriented businesses. The property is located 32 Miles east of Washington and 20 miles south of Herndon. MANASSAS, VA Manassas (formerly Manassas Junction) is an independent city surrounded by Prince William County and the independent city of Manassas Park in the Commonwealth of Virginia in the United States. The city has a population of 40,605. More than 14 million visitors come to Prince William County each year to enjoy its natural and man-made attractions--including two national parks, a state park, public recreation areas, historic sites, and shopping malls. The scenic beauty of Manassas and the surrounding Prince William County have attracted several major Golf Course Development companies. Manassas is home to the Stonewall Golf Club, Virginia Oaks Golf Club, and the famous Robert Trent Jones Golf Club. The Robert Trent Jones Golf club is seated on the shores of beautiful lake Manassas and has been the host to 4 President s Cup Tournament s since it was established in 1991. Nearby Lake Manassas is Conway Robinson State Forest. Conway Robinson State Forest is considered an urban oasis; a scenic forest in the midst of the most developed urban/suburban area in Virginia. The 444 acres of pine plantation, mixed pine and old-growth hardwoods that comprise the CRSF make it one of the largest tracts of undeveloped land owned by the Commonwealth in all of Northern Virginia. With more than two million people living within 30 miles of this State Forest, there is a large tourism draw to Manassas and a large amount of travelgenerated employment in the region. WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV MSA The Washington-Arlington-Alexandria, DC-VA-MD-WV Metropolitan Statistical Area (MSA) is centered on Washington, D.C. and has a population of 5,860,342 making it the 7 th largest MSA in the US. The area includes all of the federal district and parts of the U.S. states of Maryland and Virginia, along with a small portion of West Virginia. The area is also sometimes referred to as the National Capital Region, particularly by federal agencies such as the Department of Homeland Security. Another term used to describe the region is the DC Area. The area in the region that is surrounded by Interstate 495 is also referred to as being "inside the Beltway". Various agencies of the Federal Government employ over 140,000 professionals in the Washington D.C. area. As a result, the Federal Government provides the central basis of the economy in the region. However, the Washington D.C. area is increasingly home to a diverse segment of businesses, such as tourism, shipping, and information technology. The Washington, D.C. area has the largest science and engineering work force of any metropolitan area in the nation in 2006 according to the Greater Washington Initiative at 324,530, ahead of the combined San Francisco Bay Area work force of 214,500, and Chicago Metropolitan Area at 203,090, citing data from U.S. Census Bureau, the Bureau of Labor Statistics, Claritas Inc., and other sources. The Washington, D.C. area was ranked as the second best High-Tech Center in a statistical analysis of the top 100 Metropolitan areas in the United States by American City Business Journals in May 2009, behind the Silicon valley and ahead of the Boston metropolitan area. Fueling the metropolitan area's ranking was the reported 241,264 tech jobs in the region, a total eclipsed only by New York, Los Angeles and the combined San Jose San Francisco Oakland regions. The Washington D.C. area is home to hundreds of major research universities, think tanks, and non-profit organizations. Additionally, Washington, D.C. is a top tourism destination as flocks of Americans and foreigners from around the world visit the museums and monuments of the Capital city year round. Moreover, the Washington D.C. area attracts tens of major conferences and conventions each year which also contribute greatly to the region's economy. 7
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Demographics Demographic snapshot Radius 1 Mile 3 Mile 5 Mile Population: 2017 Projection 14,514 60,374 184,642 2012 Estimate 13,509 55,113 167,789 2010 Census 13,198 54,227 162,971 Growth 2012-2017 7.40% 9.50% 10.00% Growth 2010-2012 2.40% 1.60% 3.00% Households: 2017 Projection 4,858 19,752 60,072 2012 Estimate 4,567 18,242 55,011 2010 Census 4,416 17,894 53,238 Growth 2012-2017 6.40% 8.30% 9.20% Growth 2010-2012 3.40% 1.90% 3.30% Owner Occupied 2,009 9,256 35,945 Renter Occupied 2,558 8,986 19,067 2012 Avg Household Income $77,519 $86,098 $103,153 2012 Med Household Income $61,236 $67,053 $82,593 2012 Per Capita Income $26,735 $28,574 $33,911 2012 Households by Household Inc: Income Less than $15,000 312 1,053 2,694 Income $15,000 - $24,999 215 801 2,067 Income $25,000 - $34,999 284 1,285 2,939 Income $35,000 - $49,999 848 2,847 5,978 Income $50,000 - $74,999 1,115 4,107 10,462 Income $75,000 - $99,999 708 3,025 8,994 Income $100,000 - $149,999 725 3,171 11,772 Income $150,000 - $199,999 226 970 5,568 Income $200,000+ 134 982 4,538 WASHINGTON, D.C. MANASSAS TOWN CENTER, MANASSAS, VA 10