Popeyes - Dekalb · Popeyes Louisiana Kitchen - DeKalb Chicken, LLC is a franchisee of Popeyes. The owners are experienced operators with more than 100 Popeyes Louisiana Kitchen Restaurants

Popeyes Louisiana Kitchen | 14 Yr. Absolute NNN BRAND NEW CONSTRUCTION – WITHIN NORTHERN ILLINOIS UNIVERSIT Y CAMPUS AREA

OFFERING MEMORANDUM1127 West Lincoln Highway, DeKalb (Chicago MSA), IL 60115

ACTUAL SITE

CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the infor-mation contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering mem-orandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchas-ers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

All property showings are by appointment only.Please consult your Marcus & Millichap agent for more details.

NET LEASED DISCLAIMER Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer's responsibility to independently confirm the accuracy and completeness of all material information before com-pleting any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not rep-resent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer's tax, financial, legal, and construction advisors should conduct a careful, in-dependent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.Like all real estate investments, this investment carries significant risks. Buyer and Buyer's legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant's past per-formance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant's projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer's legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Invest-ment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

EXCLUSIVELY LISTED BY

Andrew KimA & I InvestmentsSenior MemberNational Retail GroupCA BRE License #01947008213.943.1894 direct213.943.1800 [email protected]

Marcus & Millichap 515 S. Flower StreetSuite 500Los Angeles, CA 91106213.943.1800213.943.1810 faxmarcusmillichap.com

Activity ID:

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square

footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. ©

2016 Marcus & Millichap. All rights reserved.

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Executive SummaryINVESTMENT HIGHLIGHTS

» Brand New 2016 Construction - Featuring an AbsoluteNet Lease with 10% Rental Increases Every 5 Yearsthroughout the Initial Term and Options

» Features Easy Access and Excellent Visibility Along West Lincoln Highway

» Excellent Signage and Daily Traffic Counts in Excess of 23,200+ Vehicles

» 60 Miles West from Downtown Chicago and 35 Miles Southeast of Rockford, Illinois – the Next Nearest Popeyes Location is 28 Miles East in the Neighboring Aurora City

» Excellent Centralized Location – Within NorthernIllinois University Campus Area (Over 20,130 Students)

» Within a Strong Retail Trade Corridor – Surrounded byNumerous National Major Retailers Including Starbucks, Chipotle, Burger King, McDonald's, CVS, Taco Bell, Dunkin' Donuts, and Many More

» Surrounded by Residential Neighborhoods/Student Housing Facilities – Near Numerous Attractions and Amenities

» Numerous Schools within a 5-Mile Radius

» Strong Population Growth – 15% Increase Since 2000

14 Year Absolute NNN

The subject property is a brand new 2016 construction 2,695-square foot Popeyes Louisiana Kitchen located in DeKalb (Chicago MSA), Illinois. Popeyes signed a fifteen year absolute net lease (zero landlord responsibilities) featuring ten percent (10%) rental increases every five years throughout the initial term and three 5-year option periods.

DeKalb Chicken, LLC is a franchisee of Popeyes, a long- standing American Multinational Chain of Fried Chicken Fast Food Quick-Service Restaurants Founded in 1972 with a Distinguished "New Orleans" Style Menu and flavorful authentic food. The lease is guaranteed by five stores and holds two personal guarantees by experienced operators with more than 100 Popeyes Louisiana Kitchen Restaurants.

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SITE DESCRIPTION

Property Address: 1127 West Lincoln Highway DeKalb, IL

Gross Leasable Area: 2,695 SFYear Built: 2016Lot Size: ± 0.76 Acres

LEASE SUMMARY

Tenant Trade Name: PopeyesInitial Lease Term: 15 YearsGuarantors: 7 (2 Personal*; 5 Stores)Lease Type: Absolute NetRoof & Structure Responsibility: Tenant ResponsibleRent Commencement Date: October 20, 2016Expiration Date: October 31, 2031Renewal Options: Three 5-YearIncreases: 10% Increase Every 5 Years

*The two personal guarantees will be released effective 10/31/2018.

Financial Analysis

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. © 2017 Marcus & Millichap Activity ID: Y014XXXX

PRICE: $2,000,000CAP RATE: 5.50%NOI: $110,000PRICE/SF: $742.12

ANNUALIZED OPERATING DATA

Lease Term: Annual RentCurrent - 10/31/2021: $110,00011/1/2021 - 10/31/2026: (10% Increase) $121,00011/1/2026 - 10/31/2031: (10% Increase) $133,100Options 1 - 3 (5 Years Each): 10% Increase at Each OptionBase Rent: $110,000

TENANT SUMMARY

Tenant: DeKalb Chicken, LLCOwnership: Private (Franchise)Headquarters: DeKalb, IL

SUMMARY

Tenant Trade Name: Popeyes

Ownership: PublicAnnual Revenue: $259 MillionMarket Cap as of 10/21/2016: 1.11 BillionTicker Symbol: PLKINumber of Locations: 2,379+Headquarters: Atlanta, GAWebsite: www.popeyes.com

Company OverviewPopeyes Louisiana Kitchen - DeKalb Chicken, LLC is a franchisee of Popeyes. The owners are experienced operators with more than 100 Popeyes Louisiana Kitchen Restaurants across twelve states and is looking to get into Arby's franchises. The Popeyes brand was founded in New Orleans, Louisiana in 1972 and is the world's second largest quick-service chicken concept (based on the number of units). Within the QSR industry, Popeyes distinguishes itself with a unique "New Orleans" style menu that features spicy chicken, chicken tenders, fried shrimp and other seafood, as well as jambalaya, Red Beans and Rice and other regional items. Popeyes is a highly differentiated QSR brand with a passion for its Louisiana heritage and flavorful authentic food. Popeyes serves food the world craves and is continuing to expand its global reach. The Company operates and franchises over 2,379+ Popeyes restaurants worldwide. Of the 1,600 domestic franchised restaurants, approximately 70% are concentrated in Texas, California, Louisiana, Florida, Illinois, Maryland, New York, Georgia, Virginia and Mississippi. Of the nearly 400 international franchised restaurants, approximately 55% are located in Korea, Canada and Turkey. More than 90% of the company-operated restaurants are concentrated in Louisiana and Tennessee.

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Location OverviewLocated along West Lincoln Highway, the site features easy access and excellent visibility to daily traffic counts in excess of 23,200+ vehicles. The site is a short distance from the I-88 (28,000+ vehicles per day). The site is in an excellent centralized location adjacent to Northern Illinois University featuring over 20,130+ students. The site is less than a mile from Husky Stadium, a 24,000-seating capacity stadium home to Northern Illinois' NCAA football games, soccer, cross country and numerous other events. The site is within a strong retail trade corridor surrounded by numerous national major retailers including Starbucks, Chipotle, Burger King, McDonald's, CVS, Taco Bell, Dunkin' Donuts (adjacent to the west), and many more. The site is surrounded by numerous regional stores, restaurants, retailers, pubs and more providing additional foot traffic into the area. The site is surrounded by residential neighborhoods and student housing facilities including multiple apartment complexes and dorms. The site is near numerous attractions and amenities including Prairie Park, Lions Park, River Heights Golf Course, Ellwood House Museum, NIU Convocation

Center, Market Place Theatre, Egyptian Theatre, hotels, DeKalb Taylor Municipal Airport, and more. The population has increased 15% since 2000 demonstrating a strong population growth.

DeKalb is a city in DeKalb County, Illinois, and is part of the Chicago-Naperville-Elgin metropolitan statistical area. DeKalb offers a unique blend of offerings from events offered from Northern Illinois University (NIU), which is a huge part of the community, to local historical and cultural activities to local hidden treasures. DeKalb has a collegiate, leisure and business atmosphere and is a City rich in history and full of opportunities. Events such as Corn Fest (50,000 visitors during the last weekend of August alone), Kite Fest, band concerts and numerous events at the 10,000 seat premier multipurpose venue, the NIU Convocation Center. The boom of new retailers and restaurants offers shopping and dining for almost any taste, and the heart of Route 23 is home to the county's modern health care corridor.

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Low Aerial

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Holmes Student Center Catering

Burger King

McDonald's

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7600 Reseda Boulevard




Subject Property

Target Upstream Distribution Center

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Demographics1 Mile 3 Miles 5 Miles

2000 Population 1,063 9,266 37,5822014 Population 16,961 44,019 55,2442019 Population 17,600 46,144 58,396

2000 Households 423 3,120 13,0852014 Households 4,715 15,594 19,9672019 Households 4,953 16,515 21,290

2014 Daytime Population 2,848 7,465 30,292

2014 Median Household Income $30,264 $38,037 $42,7832014 Average Household Income $45,175 $55,093 $59,048

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HOUSEHOLDS

There are currently 19,966 households in your selected geography. The number of households haschanged by 19.16% since 2000. It is estimated that the number of households in your area will be 21,290 five years from now, which represents a change of 6.62% from the current year. The average household size in your area is 2.45 persons.

HOUSING

In 2000, there were 7,769 owner occupied housing units in your area and there were 8,985 renter occupied housing units in your area. The median rent at the time was $507.

INCOME

In 2014, the median household income for your selected geography is $42,782. The median household income for your area has changed by 12.51% since 2000. It is estimated that the median household income in your area will be $52,081 five years from now, which represents a change of 21.73% from the current year. The current year per capita income in your area is $22,848. The current year average household income in your area is $59,047.

EMPLOYMENT

In 2014, there are 30,292 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 63.08% of employees are employed in white-collar occupations in this geography, and 36.99% are employed in blue-collar occupations. In 2014, unemployment in this area is 9.54%. In 2000, the average time traveled to work was 23.9 minutes.

POPULATION

In 2014, the population in your selected geography is 55,243. The population has changed by 14.95% since 2000. It is estimated that the population in your area will be 58,395 five years from now, which represents a change of 5.70% from the current year. The current population is 49.83% male and 50.16% female. The median age of the population in your area is 24.6, compare this to the Entire US average which is 37.3. The population density in your area is 702.02 people per square mile.

RACE AND ETHNICITY

The current year racial makeup of your selected area is as follows: 75.79% White, 11.98% Black, 0.05% Native American and 3.99% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 12.68% of the current year population in your selected area. Compare this to the Entire US average of 17.13%.

SUMMARY – 5 MILE RADIUS

Demographic data © 2012 by Experian. 13

EXCLUSIVELY LISTED BY

Andrew KimA & I InvestmentsSenior Member National Retail GroupCA BRE License #01947008213.943.1894 direct213.943.1800 [email protected]

Marcus & Millichap 515 S. Flower StreetSuite 500Los Angeles, CA 91106213.943.1800213.943.1810 faxmarcusmillichap.com

Popeyes Louisiana Kitchen BRAND NEW CONSTRUCTION – WITHIN NORTHERN ILLINOIS UNIVERSIT Y CAMPUS AREA

Documents

Popeyes - Dekalb · Popeyes Louisiana Kitchen - DeKalb Chicken, LLC is a franchisee of Popeyes. The owners are experienced operators with more than 100 Popeyes Louisiana Kitchen Restaurants