Representative Photo OFFERING MEMORANDUM Sonic 3724 Greenwood Rd Shreveport, LA
Representative Photo exclusively listed by AVERY BARRY Associate avery.barry@matthews.com DIR 949.873.0295 MOB 949.769.1821 LIC # 02036379 (CA) WESLEY CONNOLLY, MBA Senior Associate wesley.connolly@matthews.com DIR 949.432.4512 MOB 707.477.7185 LIC # 01962332 (CA) Beau Box Broker of Record DIR 225.931.3200 LIC # 0000072286
Investment Highlights Long-Term Ground lease with large franchisee Absolute NNN Lease Tenant takes care of all landlord responsibilities including tax, insurance, maintenance, roof and structure Growing Cash Flow There are 12% increases every 5 years Excellent hedge against inflation! Annual Rent set at a very sustainable amount Close Proximity to National tenants with strong retail synergy Located down the street from the Independence Bowl, Hirsch Memorial Stadium and the fairgrounds for the annual State Fair of Louisiana. Representative Photo
Financial Overview List Price $300,000 Cap RAte 6.27% GLA ± 1,352 SF Lot Size ± 0.74 AC Year Built 2007 Annualized Operating Data Monthly Rent Annual Rent Rent/SF Cap Rate Current - 5/3/2020 $1,568 $18,816 $13.92 6.27% 5/4/2020-5/3/2025 $1,756 $21,072 $15.59 7.00% 5/4/2025-5/3/2030 $1,966 $23,592 $17.45 7.86% 5/4/2030-5/3/2035 $2,202 $26,424 $19.54 8.80% 5/4/2035-5/3/2040 $2,467 $29,604 $21.90 9.86% Tenant Summary Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof and Structure Original Lease Term Sonic Fee Simple SDI Rogers LLC (Darrell Rogers is a 260 Unit Sonic Franchisee) Ground Lease Tenant Responsibility 15 Years Rent Commencement Date 5/4/2005 Lease Expiration Date 5/3/2020 Term Remaining on Lease Increases Options 3724 Greenwood Rd Shreveport, LA 71109 ± 2 Years 12% Every 5 Years Four, 5-Year Options
Tenant Overview SONIC For more than 60 years, SONIC, America s Drive-In has built a dominant position in the drive-in restaurant business. They did so by sticking to what made drive-ins so popular in the first place: made-to-order American classics, signature menu items, speedy service from friendly Carhops and heaping helpings of fun and personality. The company operates 3,557 restaurants in 45 US states. With a dynamic history, SONIC surges forward while specializing in fresh, made-to-order meals that you can t get anywhere else. Today, SONIC is the largest chain of drive-in restaurants in America. As a business, they continue to thrive, maintaining strong real sales growth, industry-leading customer frequency and high returns for stockholders. FIVE YEARS OF GROWTH Average Gross Sales for the 12 Month Periods Ended August 31 (Traditional SONIC Drive-Ins and Non-Traditional SONICs) ($ in Thousands) GROWTH There has never been a better time to become a SONIC franchisee. Leadership from a best-in-class franchise support team, a diverse menu that maximizes all five dayparts like no other QSR in the industry and the marketing muscle of the wildly successful Two Guys national campaign has positioned Sonic as a brand with remarkable momentum. SONIC franchise owners saw average gross sales-by-store increase from $1,072,000 in 2012 to $1,283,000 in 2016, with 27 percent of stores exceeding $1.5 million in gross sales in fiscal year 2016. $1,300 $1,250 $1,200 $1,150 $1,100 $1.11M $1.15M $1.24M $1.28M No. of Locations ± 3,557 No. of Employees ± 9,620 Headquartered Oklahoma City, Oklahoma Website www.sonicdrivein.com Year Founded 1953 $1,050 $1,000 $950 $1.07M 2012 2013 2014 2015 2016 Sonic-Shreveport, LA 5
Surrounding tenants Fair Park Middle School Greenwood Rd ± 18,000 ADT Hirsch Memorial Stadium State Fair of Louisiana Independence Bowl Hwy 20 ± 61,000 ADT Libby Glass, Inc. 6 Matthews Real Estate Investment Services
PArcel Map APN 171409-037-9091-00 LOT SIZE ± 0.74 AC (32,234 SF) GLA ± 1,352 SF 0 ± d dr 0 0, 8 T D A 1 o o w n e re G Sonic-Shreveport, LA 7
Area Overview Shreveport, LA As the third-largest city in the state of Louisiana and the seat of Caddo Parish, Shreveport extends along the Red River. Shreveport was once a major player in United States oil business, and at one time could boast Standard Oil of Louisiana as a locally based company. Recently, Shreveport has largely transitioned into a service economy specifically within the gaming industry and tourism. Cleveland demographics POPULATION 1 Mile 3 Mile 5 Mile 2023 Projection 6,170 48,552 119,790 2017 Estimate 6,412 49,995 122,638 2010 Census 7,098 53,912 130,271 HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2023 Projection 2,457 19,144 48,641 2017 Estimate 2,534 19,551 49,396 2010 Census 2,749 20,636 51,387 INCOME 1 Mile 3 Mile 5 Mile 2018 Est. Average Household Income $34,230 $41,059 $53,056 8 Matthews Real Estate Investment Services
top employers 1. Barksdale Air Force Base 2. Caddo Public Schools 3. State of Louisiana 4. University Health 5. Willis-Knighton Health System 6. Bossier Parish School System 7. City of Shreveport 8. Wal-Mart/Sam s Stores 9. Christus Schumpert Health System 10. Harrah s/horseshoe Casinos Economic Development The Shreveport-Bossier City was recently named as a growing area for the technology industry by technology magazine Innovation and Tech Today. The recent increase in tech industry jobs through employers such as CSRA and Eatel has put the area on a shortlist of places to watch. The growing number of technology and IT companies located in the region has created nearly 3,000 new tech jobs in the last few years. In addition to the tech growth, the region has seen an increase of Fortune 500 companies like CenturyLink and IBM to technology start-ups such as CyberReef Solutions. Shreveport allows those who live there to work virtually anywhere. Shreveport-Bossier City MSA is the commercial and cultural center of the tri-state area where Arkansas, Louisiana and Texas meet. Shreveport is home to the Barksdale Air Force base, which consists of the Air Force Global Strike Command, Eighth Air Force and Second Bomb Wing and supports the local economy with over 12,300 employees and an annual economic impact of nearly $1 billion. Home to four riverboat casinos/hotels as well as Harrah s Louisiana Downs, providing stable employment opportunities as well as an ample tourist population. Sonic-Shreveport, LA 9
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Sonic located at 3724 Greenwood Dr, Shreveport, LA 71109 ( 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.
Sonic 3724 Greenwood Rd Shreveport, LA exclusively listed by AVERY BARRY Associate avery.barry@matthews.com DIR 949.873.0295 MOB 949.769.1821 LIC # 02036379 (CA) WESLEY CONNOLLY, MBA Senior Associate wesley.connolly@matthews.com DIR 949.432.4512 MOB 707.477.7185 LIC # 01962332 (CA) Beau Box Broker of Record DIR 225.931.3200 LIC # 0000072286