Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
REPRESENTATIVE PHOTO
APPLEBEE’S | ABSOLUTE NNN LEASED OFFERING
4425 NATIONAL ROAD EAST, R ICHMOND, IN 47374
OFFERING MEMORANDUM Presented By: MICHAEL A. PAEZ | VICE PRESIDENT OF INVESTMENT SALES T: 415.312.7279 E: [email protected] BRE#01937246
HARRY KENNERK | LOCAL BROKER T: 317.903.6950 E: [email protected] LIC#RB14003429
The material contained in this Investment Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of The Kase Group or Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property.
The only party authorized to represent the Property Owner (“Owner”) in connection with the sale of the Property is The Kase Group Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Investment Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to The Kase Group.
Neither The Kase Group Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future performance of the Property. This Offering Brochure may include certain statements and estimates by The Kase Group with respect to the projected future performance of the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such es mates will be achieved. Further, The Kase Group Advisor and the Owner disclaim any and all liability for representations or warranties, ex- pressed or implied, contained in or omitted from this Investment Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner.
DISCLAIMER & CONFIDENTIALITY
The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or The Kase Group Advisor, nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Investment Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property.
This Investment Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any me with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Investment Offering Brochure or making an offer to purchase the Property unless and un l the Owner executes and delivers a signed Real Estate Purchase Agreement on terms accept- able to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and The Kase Group Advisor from any liability with respect thereto.
To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk.
WWW.THEK ASEGROUP.COM | APPLEBEE’S R ICHMOND, IN
WWW.THEK ASEGROUP.COM | APPLEBEE’S R ICHMOND, IN
4 INVESTMENT OVERVIEW
5 FINANCIAL SUMMARY
6 TENANT OVERVIEW
7 LOCATION AERIAL
8 DEMOGRAPHICS
9 AREA OVERVIEW
TABLE OF CONTENTS
MICHAEL A. PAEZ | VICE PRESIDENT OF INVESTMENT SALES T: 415.312.7279 E: [email protected] BRE#01937246
HARRY KENNERK | LOCAL BROKER T: 317.903.6950 E: [email protected] LIC#RB14003429
WWW.THEK ASEGROUP.COM | APPLEBEE’S R ICHMOND, IN | 4
INVESTMENT HIGHLIGHTS
OFFERING SPECIFICATIONS
Subject property is a 5,448 square foot Applebee’s restaurant located in Richmond, IN. The lease, which has 8 years remaining on the term and is guaranteed by the second largest Applebee’s operator in the country. The restaurant is located in the heart of Richmond’s retail hub, just east of Richmond Square Mall. Nearby retailers include Macy’s , Dillard’s, Best Buy, Party City, Aldi, Hobby Lobby, Menards, Kohl’s, Kroger, Chili’s, Olive Garden, and AMC.
LONG TERM ABSOLUTE NNN LEASE
100% FEE SIMPLE INTEREST
ZERO LANDLORD OBLIGATIONS
SCHEDULED ANNUAL INCREASES IN RENT
OUTPARCEL TO HOBBY LOBBY ANCHORED CENTER
HIGH VISIBILITY LOCATION - 36,700+ (AADT)
STRONG PERFORMING LOCATION
PRICE $2,473,700
CAP RATE 7.00%
NET OPERATING INCOME $173,162
SQUARE-FOOTAGE 5,448
LOT SIZE 1.06 AC
INVESTMENT OVERVIEW
WWW.THEK ASEGROUP.COM | APPLEBEE’S R ICHMOND, IN | 5
FINANCIAL SUMMARY
SUMMARY
TENANT NAME APPLEBEE’S - RMH ENTERPRISES
SQUARE FOOTAGE 5,448
LEASE BEGINS 06/30/2010
LEASE ENDS 06/29/2025
ANNUAL RENT $173,162
OPTIONS FOUR, 5 YEAR
INCREASES 1% ANNUALLY
ROFR TENANT HAS A 10 BUSINESS DAYS ROFR
APPLEBEE’S | ABSOLUTE NNN LEASED OFFERING4425 NATIONAL ROAD EAST, R ICHMOND, IN 47374
$2 ,473 ,7007.00% CAPFEE S IMPLE OWNERSHIP
OPERATING SUMMARY
NET OPERATING INCOME CAP RATE
2017 $173,162 7.00%
2018 $174,893 7.07%
2019 $176,642 7.14%
2020 $178,409 7.21%
2021 $180,193 7.28%
ABOUT APPLEBEE’S
Founded nearly three decades ago on the principles of exceptional value and family fun, Applebee’s Services, Inc., operates what is today the largest casual-dining chain in the world. This prominent eatery draws people of all ages and lifestyles with its fun, family-friendly atmosphere and signature bar and grill menu.
Applebee’s continues to grow and prosper, and further differentiates itself with innovative attractions, like the popular Carside to Go service available at many of its restaurants. And the company continually works to add greater value and broaden its appeal, as evidenced by the “It’s a Whole New Neighborhood” campaign, which launched in the spring of 2008, indicative of a fresh, re-energized approach and the promise of new, enticing menu items.
Applebee’s Services Inc., and its affiliates, franchise and operate restaurants under Applebee’s Neighborhood Grill & Bar and are a DineEquity, Inc. (NYSE: DIN) brand. Currently, there are over 1990 Applebee’s restaurants operating system-wide in 49 states, 15 international countries and one U.S. territory. The Applebee’s system employs approximately 28,000 employees company-wide.
TENANT OVERVIEW
174LOCATIONS
7,000 +EMPLOYEES
PRIVATELYHELD
$EXCELLENTDEMOGRAPHICS
WWW.THEK ASEGROUP.COM | APPLEBEE’S R ICHMOND, IN | 6
ABOUT RMH FRANCHISE
RMH Franchise Holdings, Inc. is the second largest Applebee’s franchisee in the United States, currently operating 174 Applbee’s locations across 15 states. The company acquired its first Applbee’s location in December 2012 and has been growing in size and operating locations ever sine. In October 2013, RMH acquired an additional 80 locations, securing itself as one of the top Applebee’s franchisees. Headquarted in Lincoln, Nebraska, RMH currently employs over 7,000 people and has plans for future Applebee’s acquisitions.
RMH is wholly owned by ACON Franchise Holdings (AFH), a subsidiary of ACON Investments. ACON formed AFH in December 2012 to pursue selected deep value opportunities in the franchised restaurant sector. The platform evaluates opportunities of “well established brands” in teh casual dining, quick casual, and QSR sectors. They seek to find value-oriented franchise opportunties in well-established brands where they believe management can achieve restorative growth through identifiable operational initiatives. RMH was their first deal.
WWW.THEK ASEGROUP.COM | APPLEBEE’S R ICHMOND, IN | 7
LOCATION AERIAL
WWW.THEK ASEGROUP.COM | APPLEBEE’S R ICHMOND, IN | 8
3 MILES 5 MILES 10 MILES
TOTAL POPULATION 18,266 43,588 71,283
TOTAL NUMBER OF HOUSEHOLDS 7,730 17,985 29,043
AVERAGE HOUSEHOLD INCOME $58,477 $49,966 $51,179
MEDIAN AGE 42.6 39.4 40
DEMOGRAPHICS
WWW.THEK ASEGROUP.COM | APPLEBEE’S R ICHMOND, IN | 9
RICHMOND, INDIANA
Richmond, Indiana is a city in the east central part of the state, bordering Ohio. The town has twice won the title of “All American City” as designated by the National Civic League, which is the oldest community recognition program in the nation. Richmond hosts the Indiana Football Hall of Fame, and home to legendary athletes, entertainers, authors, artist, musicians and industries that have attracted international attention in their respective fields. We are proud to be teh home of Indiana University East, Earlham, Ivy Tech, Purdue ollege of Technology; not to mention several highly accredited K-12 schools. Education has always and will continue to play an important role in teh community. Richmond is slowly becoming recognized as teh “cradle of recorded jazz” music; and for its lavish culture. From this, Richmond is celebrating what its community has accomplished, in teh lively Spirit of Gennett Records. Richmond is noted for its rich stock of historic architecture. The significance of the architecture has been recognized. Five large districts, such as the Depot District, and several individual buildings are listed in teh National Register of HIstoric Places, teh Historic Aerican Buildings Survey, and the Hisotric American Enginering Record.
AREA OVERVIEWDEMOGRAPHICS 3 MILES 5 MILES 10 MILES
TOTAL POPULATION 18,266 43,588 71,283
TOTAL NUMBER HOUSEHOLDS 7,730 17,985 29,043
TOTAL NO. PERSONS PER HOUSEHOLD 2.4 2.4 2.5
AVERAGE HOUSE VALUE $160,303 $151,266 $143,894
AVERAGE HOUSEHOLD INCOME $58,477 $49,966 $51,179
MEDIAN AGE 42.6 39.4 40
MEDIAN AGE - MALE 41.7 37.8 38.1
MEDIAN AGE - FEMALE 43 40.4 41.4
POPULATION WHITE 15,893 37,488 63,146
POPULATION BLACK 983 2,831 4,006
POPULATION HISPANIC 717 1,703 2,144
POPULATION ASIAN 412 599 714
POPULATION PACIFIC ISLANDER 0 0 0
POPULATION AMERICAN INDIAN 7 22 13
POPULATION OTHER 333 725 762
APPLEBEE’S | ABSOLUTE NNN LEASED OFFERING
4425 NATIONAL ROAD EAST, R ICHMOND, IN 47374
RICHMOND | INDIANA
MICHAEL A. PAEZ | VICE PRESIDENT OF INVESTMENT SALES T: 415.312.7279 E: [email protected] BRE#01937246
HARRY KENNERK | LOCAL BROKER T: 317.903.6950 E: [email protected] LIC#RB14003429
WWW.THEK ASEGROUP.COM