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Wendy’sPendleton, OR
ABSOLUTE NNN ASSET ON BRAND NEW 25-YEAR LEASE824 Southgate, Pendleton, OR 97801
Pendleton, or
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Wendy’s
Wendy’s has a 17-year historical tenancy at the Premises and was recently assigned to the largest Pacific Northwest Wendy’s franchisee, with a total of 82 locations throughout the U.S. and Canada. The Operator will execute a brand new 25-year lease within 60 days of assignment of the lease, scheduled for May 1, 2017. A remodel featuring significant upgrades costing in excess of $300,000 is scheduled for 2017-2018 to comply with Wendy’s corporate Image Activation Plan.
PRICE: $1,415,000CAP: 5.00%LEASABLE SF . . . . . . . . . . . . . . . . . ±3,000 SF
PRICE PER SF . . . . . . . . . . . . . . . . . $472
LAND AREA . . . . . . . . . . . . . . . . . . ±27,442 SF
LEASE TYPE . . . . . . . . . . . . . . . . . . Absolute NNN
LEASE EXPIRATION . . . . . . . . . . . . 4/30/2042*
YEAR BUILT/REMODELED . . . . . . . 1979/2017**
CURRENT RENT . . . . . . . . . . . . . . . $26.51/SF
PARKING . . . . . . . . . . . . . . . . . . . . . ±34 Spaces or 11.3/1,000 SF * Expiration date estimated. **Full interior/exterior remodel upgrading to new store format slated for 2017-2018.
ADDRESS: 824 Southgate, Pendleton, OR 97801
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WENDY’S IS AN ABSOLUTE NNN QUICK-SERVICE RESTAURANT WITH A NEW 25-YEAR LEASE IN PENDLETON, OREGON.
WENDY’S - PENDLETON | 2
• New 25-year lease with rent bumps of 5% every 5 years.
• Absolute NNN lease structure provides zero Landlord responsibilities.
• Preeminent franchise operator with 80-plus locations throughout seven western states and Canada.
• Major $300,000+ interior and exterior remodel slated for 2017, featuring image updates and structural and parking lot improvements.
• Ideal access provided to Interstate-84 on-off ramps directly north of the Subject.
• Frontage on Southgate exposes the Subject to 25,500 vehicles per day.
• Strong daily needs draw to nearby Walmart Supercenter and Safeway.
• Landlord’s Interest is further protected through co-guaranty clause requiring Tenant to operate a total of 10 units under the subject LLC.
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Core Characteristics
WENDY’S - PENDLETON | 3
NASDAQ: WENPUBLIC SINCE 1976
$1.44 BILLIONIN 2016 REVENUE
WENDY’S LOCATIONS(80% ARE FRANCHISES)
6,490
Wenspok Resources, LLC is one of six regional franchise entities founded and managed by Peter Nisbet, with a combined total of 82 franchise units throughout seven Western States and Canada. Peter grew up locally in the Pacific Northwest and is a well-recognized Wendy’s franchisee, with a 15-year involvement with Wendy’s International, LLC.
Peter formed Wenspok Resources, LLC in December 2012 with a total of 13 stores throughout Spokane, WA and Northern Idaho, and added an additional built-to-suit location in 2016 in Yakima, WA. This entity employs 506 people and each restaurant has average annual sales above $1.8 million. In 2013, Peter formed Wenoregon, LLC, and Wenshasta, LLC, incorporating 12 Wendy’s restaurants in the Central Oregon and Northern California region and the addition of a completely remodeled location in Eugene, OR in 2016. This entity has average annual sales of $1.6 million each and a combined total of 400 employees. Peter and Wenspok Companies partnered in 2014 to form Wentana, LLC, which consists of 18 Wendy’s restaurants in Montana, North Dakota, and Wyoming. Wentana has average annual sales per restaurant greater than $2.1 million and employs 575 people. Most recently, Peter and investment partners purchased Wendberta, Inc., a 37-Wendy’s conglomerate in the affluent Alberta, Canada province with over 1,200 employees and combined sales of $84,500,000 annually.
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AVERAGE ANNUAL SALES OF EACH LOCATION
$1.8 MILLION
About the Franchisee
82UNITS OPERATED
Quick Stats
WENDY’S - PENDLETON | 4
84
SURROUNDING RETAILBi-Mart Burger King Dairy QueenD&B Supply Denny’s
Dollar TreeDomino’sJack in the Box JCPenny KFC
Little Caesars PizzaMazatlan Mexican Papa Murphy’sQuiznosRite Aid
SafewayStarbucks Taco BellWalgreens Walmart Supercenter
WENDY’S
Sout
hgat
eWestgate
SE Emigrant Ave
25,500 DAILY
ST. ANTHONY’S HOSPITA L
1 MILE SOUTH
Aerial
WENDY’S - PENDLETON | 5
28,600 DAILY
To Highway
From Highway
Highway 84 Access
Highway AccessThe Property is strategically located within one block from access to a major Interstate. Wendy’s benefits from excellent accessibility to the region’s most trafficked interstate highways.
84
westbound
84 Eastbound
WENDY’S
WENDY’S - PENDLETON | 6
*Site Plan Not To Scale
Site Plan
SOUT
HGAT
E
25,5
00 D
AIL
YDRIVE-THRU
LAND AREA ±27,442 SF
LEASABLE SF ±3,000 SF
PARCEL OUTLINE
SUBJECT
TRASH/RECYCLE
INGRESS/EGRESS
SITE PLAN KEY
PYLON SIGN
WENDY’S - PENDLETON | 7
Financial Analysis
Income & Expense
PRICE $1,415,000
Capitalization Rate: 5.00%
Price Per Foot: 3,000 Square Feet $472
NET OPERATING INCOME SUMMARYSCHEDULED INCOME Per SFScheduled Rent: 5/1/2017 $23.57 $70,704Equals: Effective Gross Income $23.57 $70,704
Less: OPERATING EXPENSES Per SFCAMS NNNProperty Taxes NNNInsurance NNNTotal Operating Expenses NNN -
Equals: NET OPERATING INCOME $70,704
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. Buyer must verify the information and bears all risk for any inaccuracies.
Target Price Range
3/17/2017 [ <www.CapitalPacific.com> ]
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. Buyer must verify the information and bears all risk for any inaccuracies.
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WENDY’S - PENDLETON | 8
Rent Roll
Rent Roll
TENANT INFO TERM
Tenant Name Size Date Monthly RentPercent Increase
Annual Rent PSF Cap Rate
Wendy's 3,000 5/1/2017 $5,892 $70,704 $23.57 5.00%5/1/2022 $6,187 5.0% $74,239 $24.75 5.25%
Occupancy Date : 7/17/1999 5/1/2027 $6,496 5.0% $77,951 $25.98 5.51%
Lease Expiration : 4/30/2042* 5/1/2032 $6,821 5.0% $81,849 $27.28 5.78%
Option 1 5/1/2042 $7,162 5.0% $85,941 $28.65 6.07%
Option 2 5/1/2047 $7,520 5.0% $90,238 $30.08 6.38%
Option 3 5/1/2052 $7,896 5.0% $94,750 $31.58 6.70%
Option 4 5/1/2057 $8,291 5.0% $99,488 $33.16 7.03%Lease Notes
Current Totals: 3,000 $5,892 $70,704 $23.57 5.00%
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. Buyer must verify the information and bears all risk for any inaccuracies.
RENT SUMMARY
Comments: Absolute NNN lease. Lease has a Co-Guaranty clause requiring Tenant to operate a total of 10 Wendy's restaurants under Wenspok Resources, LLC, and if at anytime Tenant operates less than 10 Wendy's restaurants for a period of 12-plus months, Tenant must co-guaranty the lease with another entity operated by Lessee, bringing the total operated restaurants to 10 or more. Tenant has a Right of First Refusal to purchase the Property effective after Year 2. Landlord may request Tenant financials once annually. Landlord is required to reimburse $250k of total $300k+ cost of remodel; this may be handled by 1) TI allowance held back in escrow from Seller funds, or 2) purchase price is reduced and Buyer assumes responsibility for paying out T.I. allowance.
*New 25-year lease to commence within 60 days of February 2017 assignment to Wenspok Resources LLC. Commencement date expected to occur in April 2017, assumed as 5/1/2017 for purpose of Analysis.
3/17/2017 [ <www.CapitalPacific.com> ]
WENDY’S - PENDLETON | 9This 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. Buyer must verify the information and bears all risk for any inaccuracies.
5 MINS
10 MINS
15 MINS
POPULATION 5 Mins 10 Mins 15 Mins2010 9,100 17,058 20,0422016 9,150 17,262 20,2402021 9,171 17,332 20,367
2016 HOUSEHOLD INCOMES 5 Mins 10 Mins 15 MinsAverage $55,190 $59,923 $60,806Median $42,198 $46,281 $47,413
Wendy’s
PENDLETON OVERVIEWPendleton was strategically built on both sides of the Umatilla River as a vital transportation and trading route for settlers, as well as a water and power source. The Umatilla River connected the city to the Columbia River to the West. Pendleton has since continued with a diverse economic base with deep roots in agriculture. The rural part of Oregon has an agriculturally-based economy and works hard to keep the multi-million dollar grain and cattle industries strong. Additionally, the commodities are converted to value added products at establishments such as Pendleton Flour Mills, Continental Mills, Haus Barhyte mustards and Hill Meat Company. Umatilla County is the leading wheat producing county in the state and energy production is a growing sector within the county as wind farms are expanding in the area.
The county seat of Umatilla County, Pendleton’s population of 17,515 makes it the largest city in Eastern Oregon, and the business, political, commercial, tourism and entertainment center for the region. Pendleton is famous for its annual rodeo, the Pendleton Round-Up. First held in 1910, it is part of the Professional Rodeo Cowboys Association (PRCA)-sanctioned rodeo circuit.
PENDLETON TOP 10 EMPLOYERS
COMPANY ± EMPLOYEESState of Oregon 1,009Confederated Tribes 701Wildhorse Resort & Casino 590Keystone RV Company 443Eastern Oregon Correctional Institution 440St. Anthony Hospital 325Pendleton School District 310Umatilla-Morrow ESD 300Walmart 230
Area Intel & Demos
THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS
[ www.CapitalPacific.com ]
MICHAEL [email protected] | (503) 675-8381
PETER [email protected] | (503) 607-0197
KEVIN ADATTO [email protected] | (503) 675-7726
SCOTT FRANK [email protected] | (503) 675-8383
DAVID GELLNER [email protected] | (206) 693-3349
SEAN MACK [email protected] | (503) 675-8378
SEAN TUFTS [email protected] | (206) 693-3352
[ Copyright © 2017 Capital Pacific LLC ]
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