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CHILI’SOFFERING MEMORANDUM1001 UNIVERSITY TOWN CENTRE DRIVEMORGANTOWN, WEST VIRGINIA
REP SITE
2 CHILI’S | MORGANTOWN, WV NET LEASE PRACTICE GROUP
DISCLAIMER
This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation (DATE) of this Memorandum have remained the same. Analysis and verification of the information contained in this Memorandum are solely the responsibility of the prospective purchaser.
Additional information and an opportunity to inspect the Property will be made available upon written request of interested and qualified prospective purchasers. Seller and Agent each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property, and/or terminate discussions with any party at any time with or without notice. Seller reserves the right to change the timing and procedures for the Offering process at any time in Seller’s sole discretion. Seller shall have no legal commitment or obligations to any party reviewing this Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Seller, and a written agreement for the purchase of the Property has been fully executed and delivered by Seller and the Purchaser thereunder.
This Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not forward, photocopy or duplicate it, that you will not disclose this Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller or Agent, and that you will not use this Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Agent.
NET LEASE PRACTICE GROUPKEN HEDRICKExecutive Managing Director [email protected]
JERRY HOPKINSSenior Managing Director [email protected]
SUPPORT
D. ANDREW RAGSDALE, Esq.Senior Managing Director [email protected]
JEN BLADENMarketingNet Lease Practice [email protected]
GARRETT HUIEFinancial AnalystNet Lease Practice [email protected]
LISA BENJAMINSenior Managing [email protected]
DEBT & EQUITY FINANCE
NICK SCRIBANIManaging DirectorNew York Debt/Structured [email protected]
JORDAN ROESCHLAUBVice Chairman, Co-Head New York Debt/Structured [email protected]
CHILI’S1001 UNIVERSITY TOWN CENTRE DRIVEMORGANTOWN, WEST VIRGINIA
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THE INVESTMENT
5 THE OFFERING
INVESTMENT HIGHLIGHTS
THE TENANT
7 TENANT/CREDIT OVERVIEW
8 LEASE ABSTRACT
RENT SCHEDULE
MORGANTOWN, WEST VIRGINIA
10 LOCATION OVERVIEW
12 DEMOGRAPHICS
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THE INVESTMENT
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THE OFFERINGNKF Capital Markets (the “Agent”) has been engaged as the exclusive sales representative for the sale of the Chili’s-leased property (the ”Property”).
INVESTMENT HIGHLIGHTS100% GUARANTEED BY Brinker International, Inc.The Property is leased by Chili’s of West Virginia, Inc. and guaranteed by Brinker International, Inc.(NYSE:EAT).
BELOW MARKET RENTSThe current lease rate is below market for similar fast casual restaurants in this location, making renewal more likely.
HIGHLY PASSIVE NNN LEASEChili’s has five years remaining on the in place, NNN Lease. The primary term has 5 years remaining, accompanied by four, five year renewal options. 20 years in option periods for a potential of 25 years of future term.
10% RENT INCREASES EVERY 5YEARSThe lease provides for scheduled 10% rent increases every five years for the option periods.
LEADING CASUAL DINING RESTAURANT COMPANYBrinker International, Inc. owns, operates or franchises more than 1600 restaurants in 31 countries. Brands include Chili’s and Maggiano’s. The company employs 100,000 people worldwide.
IMPROVEMENTS TO CHILI’S BRANDReduction in menu offerings, improved carry-out service and a new mobile app all help broaden the appeal of Chili’s as a fast casual choice, particularly in a university based setting.
NYSE:EAT $3.15B REVENUES 2017
5 MILES FROM WEST VIRGINIA UNIVERSITY
10% RENT INCREASES
EVERY 5 YEARS IN OPTIONS
5 YEARS REMAINING ON LEASE TERMPLUS 4 OPTIONS OF 5 EACH
PURCHASE PRICE $1,672,000CAP RATE
6.25%
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THE TENANT
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THE CHILI’S STORY
The Chili’s story started with a dream to create a place you’d want to go and hang out with good friends over a burger and a beer. For people who craved connection with family and friends, Chili’s considered themselves the only ones to offer a genuine Southwest spirit filled with positive energy. Since then, they’ve boldly claimed their place in the restaurant universe. Today, you can find Chili’s in 32 different countries. Chili’s recently celebrated 20 years in Mexico and they’re excited to be opening new locations in Asia and beyond. People around the globe love the Fresh Tex and Fresh Mex flavors, and the fun ways that they make every guest feel special.
BRINKER INTERNATIONAL
Brinker International, Inc. owns, develops, operates, and franchises various restaurant brands primarily in the United States. It operates the restaurants under the Chili’s Grill & Bar and Maggiano’s Little Italy brand names. These restaurants offer customers hamburgers, ribs, salads, steaks, classic Italian fare, and Tex-Mex offerings.
As of 2017, the company operated approximately 1,600 company-owned and franchised restaurants in 50 states, and Washington, D.C. as well as around the world. With $3.15 billion in revenues, Brinker International has over 100,000 team members including central office staff and restaurant employees. Brinker International, Inc. was founded in 1977 and is based in Dallas, Texas.
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LEASE ABSTRACT PROPERTY DETAILS
OFFERING SUMMARY
Chili’s 1001 University Town Centre DriveMorgantown, WV
Tenant Chili’s of Morgantown/Brinker Intl.
Lease Interests Ground Lease
Effective Date October 25, 2005
Rent Commencement August 3, 2006
Primary Term Expiration Ausut 31, 2023
Renewal Options Four (4), five (5) year options
Rent Increases 10% every 5 years
Lease Type NNN
Rentable Building Area 5,880 square feet
Acreage 2.58 acres
Current Rent $104,500/year
Options9/1/2023—8/31/20289/1/2028—8/31/20339/1/2033—8/31/20389/1/2038—8/31/2043
$114,950/year $126,445/year $139,090/year$152,990/year
Utilities Tenant
Taxes Tenant
Year Built 2006
Estoppel Yes
Chili’s 1001 University Town Centre DriveMorgantown, WV
Gross Rentable Area 5,880 square feet
Year Built 2006
Parking LotBlack top(recentlly resealed and restriped)
Roof TPO Membrane
Chili’s 1001 University Town Centre DriveMorgantown, WV
Purchase Price $1,672,000
Cap Rate 6.25%
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MORGANTOWN, WV
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LOCATION HIGHLIGHTSAWARD WINNING SMALL CITY
With a population of 30,885, Morgantown WV was ranked by Forbes as the Fifth “Best Small Metro” and “No 1 Small City in America” by BizJournals.com.
POWER OF WEST VIRGINIA UNIVERSITY
The Morgantown Campus of WVU has 28,409 students in 14 colleges and schools. WVU is an athletic powerhouse and a member of the Big 12 Conference.
EXCELLENT LOCATION
Morgantown is centrally located with easy access to Metro Washington DC, Pittsburgh, Cleveland and Columbus and served by several interstate highway including I-68 and I-79.
UNIVERSITY TOWN CENTER LOCATION
University Town Centre, the premier retail core of Morgantown, is expanding rapidly. Helped by the $22 million interchange at exit 153 of I-79 in 2017, growth on both sides of the interstate has exploded. The opening of the Monogalia County Ballpark, Courtyard by Marriott, Star Furniture, Buffalo Wild Wings, Fusion Steakhouse and Hampton Inn & Suites highlight this activity.
LARGE PARCEL WITH GOOD VISIBILITY
The Chili’s location within University Town Center is excellent. Located on the northern side of University Town Centre Drive Chili’s is close to many other fast casual restaurants including Cracker Barrel, Cheddar’s Scratch Kitchen, Olive Garden and Red Lobster. The 2.6 acre site provides abundant parking and excellent future redevelopment options.
Population 1 Mile 3 Mile 5 Mile
2023 Projection 4,258 38,610 72,690
2018 Estimate 3,811 36,525 69,091
2010 Census 2,017 31,669 61,810
Growth 2018-2023 12% 6% 5%
Growth 2010-2018 89% 15% 12%
Households 1 Mile 3 Mile 5 Mile
2023 Projection 1,843 16,614 31,289
2018 Estimate 1,665 15,731 29,766
2010 Census 950 13,496 26,364
Growth 2018 - 2023 11% 6% 5%
Growth 2010 - 2018 75% 17% 13%
2018 Avg Household Income $55,363 $60,652 $64,797
Housing 1 Mile 3 Mile 5 Mile
Median Home Value: $101,471 $172,205 $176,423
Median Year Built: 1991 1977 1976
DEMOGRAPHICS
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LOCATION
SUBJECT PROPERTY
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NET LEASE PRACTICE GROUP
KEN HEDRICKExecutive Managing Director918.878.9540 [email protected]
JERRY HOPKINSSenior Managing Director918.878.9536 [email protected]
D. ANDREW RAGSDALE, Esq. Senior Managing Director918.878.9535 [email protected]
LISA BENJAMINSenior Managing [email protected]
CHILI’S1001 UNIVERSITY TOWN CENTRE DRIVE
MORGANTOWN, WEST VIRGINIA
