HARDEE S 301 N BROADWAY PERU, IN OFFERING MEMORANDUM Representative Photo
CONTENTS 03 04 EXECUTIVE OVERVIEW FINANCIAL OVERVIEW LISTED BY CONNOR OLANDT Associate connor.olandt@matthews.com DIR 949.432.4504 MOB 818.618.4522 LIC # 01985082 (CA) CALVIN SHORT FVP & Senior Director calvin.short@matthews.com DIR 949.432.4506 MOB 310.567.3525 LIC # 01927216 (CA) 06 10 TENANT OVERVIEW AREA OVERVIEW BROKER OF RECORD KYLE MATTHEWS BROKER OF RECORD LIC # RC51700140 (IN) Representative Photo
EXECUTIVE OVERVIEW 3 INVESTMENT HIGHLIGHTS Corporate Guaranty from Carl s Jr / Hardee s parent company (CKE) Absolute NNN investment with zero Landlord responsibilities Long-Term Success - The site has been in operations as a restaurant since 1975 Tenant recently extended the Lease by 5 years, showing dedication to the site Situated on Broadway (±10,500 cars per day) across the street from Peru High School The Tenant is paying low rent at $12.25 per SF providing the Landlord with security of replaceable rent 10% rent increases every 5-years, excellent hedge against inflation Building equipped with a Drive-Thru and sits on a large 1+ acre parcel with ample parking spaces
FINANCIAL OVERVIEW EXECUTIVE SUMMARY Property Name Hardee s Property Street 301 N Broadway City, State, Zip Peru, IN 46970 ANNUALIZED OPERATING DATA Monthly Rent Annual Rent Rent/SF Cap Rate Current - 12/31/2021 $4,125.00 $49,500.00 $12.25 7.00% 1/1/2022-12/31/2026 $4,537.50 $54,450.00 $13.47 7.70% Year Built 1975 GLA ± 4,040 SF 4
FINANCIAL HIGHLIGHTS TENANT SUMMARY Tenant Trade Name Hardee s Lease Guarantor Corporate Lease Type Fee-Simple LIST PRICE $707,000 CAP RATE 7.00% TERM REMAINING ± 4 YEARS Roof & Structure Tenant Responsible Original Lease Term 20 Years Lease Commencement Date 1/1/2017 Rent Commencement Date 1/1/2017 Lease Expiration Date 12/31/2021 Increases 10% every 5 Years Options One, 5-Year Option Remaining 5
TENANT OVERVIEW 6 Representative Photo
HARDEE S TENANT OVERVIEW As a subsidiary of fast-food giant CKE Restaurants, Hardee s Food Systems is a leading fast-food chain operator with more than 1,900 locations in some 30 states, primarily in the Midwest and Southeast. The chain offers a variety of premium-priced Angus beef hamburgers under such names as Thickburger, Six Dollar Burger, and the Monster Thickburger. Hardee s also serves up chicken sandwiches, salads, fries, and beverages, as well as dessert items. About 475 of the restaurants are operated by the company, while the rest are franchised. GEOGRAPHIC OUTREACH Since the opening of the first restaurant in Greenville, North Carolina in 1960, Hardee s has established a strong presence throughout the Midwest and Southeast. Most locations are in the United States, distributed among some 30 states. STRATEGY The company s Hardee s chain has started to incorporate its own dual branding strategy, pairing some of its locations with Red Burrito outlets. Plans to continue expansion in international markets are underway and involve the use of franchise development agreements. CKE is targeting growth in Brazil, Canada, China, and Russia. In 2014 Carl s Jr. announced plans to expand in Ontario, Canada s Golden Horseshoe, a territory that includes Toronto, Mississauga, Oakville, Burlington, Hamilton, Brantford, and London. Hardee s chains market themselves as gourmet burger outlets with slightly higher menu prices. In lieu of rapid expansion, CKE has focused on managing costs and investing in additional marketing efforts to drive traffic to its restaurants. Its chains target primarily a young, male demographic with oversized burgers made with premium Angus beef. COMPANY NAME CKE RESTARAUNTS HEADQUARTERED ST. LOUIS, MI WEBSITE WWW.HARDEES.COM # OF LOCATIONS ± 1,950 YEAR FOUNDED 1960 7
PROPERTY OVERVIEW THE OFFERING PARCEL MAP PROPERTY NAME Property Name Property Address Hardee s 301 N Broadway Peru, IN 46970 Assessor s Parcel Number 52-08-27-213-001.000-016 SITE DESCRIPTION Number of Stories One Year Built 1975 GLA ± 4,040 SF Lot Size ± 0.53 Acres (23,160 SF) Parking ± 60 Surface Spaces Parking Ratio 14.85 : 1,000 SF 8
surrounding tenants 9
AREA OVERVIEW PERU, IN Incorporated as a city in 1835, Peru is the county seat of Miami County. Situated on the banks of the Wabash River, Peru is a community that is rich in history. Also known as The Circus Capital of the World, Peru has been the home to seven of the world s major circuses for their winter headquarters and still boasts an amateur circus performance that brings fans of all ages from all around the world. ECONOMY Miami County is at the center of Indiana s northern agriculture and food corridor. Within a 100-mile radius of Miami County exists significant raw materials, processing plants, distribution requirements and population density. Miami County is ideally positioned to optimize manufacturing and distribution businesses serving northern Indiana, including Indianapolis. Recent improvements to U.S. 24 and U.S. 31 have placed the key interior intersection of Indiana commerce in the center of Miami County. The agriculture and food sectors are well represented in the Miami County region and likewise can be well serviced from a Miami County base. Agriculture and food manufacturers, parts suppliers, maintenance operations, engineering, equipment manufacturers, contractors, and related resources will immediately see the transportation and logistic advantages of a Miami County location. DEMOGRAPHICS POPULATION 3 Mile 5 Mile 7 Mile 2017 Estimate 13,672 16,887 20,639 HOUSEHOLDS 3 Mile 5 Mile 7 Mile 2017 Estimate 5,744 7,052 8,521 INCOME 3 Mile 5 Mile 7 Mile 2017 Est. Average Household Income $56,692 $59,123 $60,214 10
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Hardee s located at 301 N Broadway, Peru, IN 46970 ( 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 CONNOR OLANDT Associate connor.olandt@matthews.com DIR 949.432.4504 MOB 818.618.4522 LIC # 01985082 (CA) CALVIN SHORT FVP & Senior Director calvin.short@matthews.com DIR 949.432.4506 MOB 310.567.3525 LIC # 01927216 (CA) BROKER OF RECORD KYLE MATTHEWS BROKER OF RECORD LIC # RC51700140 (IN) HARDEE S 301 N BROADWAY PERU, IN OFFERING MEMORANDUM