applebee’s - matthews · making an offer to purchase the property unless and until a written...

Offering MeMOranduM

Applebee’s 5055 Old HickOry blvd, HermitAge, tN 37076

Representative Photo of Updated Concept

matthews retail group

CONFIDENTIALITY & DISCLAIMER STATEMENTThis Of fer ing Memorandum contains se lec t in format ion per ta in ing to the bus iness and af fa i rs of Applebee’s located at 5055 Old Hickory blvd, Hermitage, tN 37076 (“proper ty”). I t has been prepared by Mat thews Retai l Group . This Of fer ing Memorandum may not be al l - inc lus ive or contain a l l o f the in format ion a prospect ive purchaser may desi re. The in format ion contained in th is Of fer ing Memorandum is conf ident ia l and furn ished sole ly for the purpose of a rev iew by a prospect ive purchaser of the Proper ty. I t i s not to be used for any other purpose or made avai lable to any other person wi thout the wr i t ten consent of Sel le r or Mat thews Retai l Group . The mater ia l i s based in par t upon in format ion suppl ied by the Sel ler and in par t upon f inancia l in format ion obtained f rom sources i t deems re l iable. Owner, nor thei r of f icers, employees, or agents makes any representa t ion or warranty, express or impl ied, as to the accuracy or comple teness of th is Of fer ing Memorandum or any of i t s contents and no legal l iabi l i ty i s assumed or shal l be impl ied wi th respect there to. Prospect ive purchasers should make thei r own projec t ions and form thei r own conclus ions wi thout re l iance upon the mater ia l contained herein and conduct thei r own due di l igence.

By acknowledging your receipt of th is Of fer ing Memorandum for the Proper ty, you agree:

1. The Of fer ing Memorandum and i t s contents are conf ident ia l ;

2. You wi l l ho ld i t and t reat i t in the s t r ic tes t o f conf idence; and

3. You wi l l not , di rec t ly or indi rec t ly, disc lose or permi t anyone e lse to disc lose th is Of fer ing Memorandum or i t s contents in any fashion or manner det r imenta l to the in teres t of the Sel ler.

Owner and Mat thews Retai l Group express ly reser ve the r igh t , a t thei r so le discre t ion, to re jec t any and al l express ions of in teres t or of fers to purchase the Proper ty and to terminate discuss ions wi th any person or ent i ty rev iewing th is Of fer ing Memorandum or making an of fer to purchase the Proper ty un less and unt i l a wr i t ten agreement for the purchase and sale of the Proper ty has been fu l ly executed and del ivered.

I f you wish not to pursue negot ia t ions leading to the acquis i t ion of the Proper ty or in the fu tu re you discont inue such negot ia t ions, then you agree to purge al l mater ia ls re la t ing to th is Proper ty inc luding th is Of fer ing Memorandum.

A prospect ive purchaser ’s so le and exc lus ive r igh ts wi th respect to th is prospect ive t ransact ion, the Proper ty, or in format ion provided herein or in connect ion wi th the sale of the Proper ty shal l be l imi ted to those express ly provided in an executed Purchase Agreement and shal l be subjec t to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims agains t Sel le r or Mat thews Retai l Group or any of thei r af f i l ia tes or any of thei r respect ive of f icers, Di rec tors, shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion re la t ing to th is so l ic i ta t ion process or the market ing or sa le of the Proper ty.

This Of fer ing Memorandum shal l not be deemed to represent the s ta te of af fa i rs of the Proper ty or cons t i tu te an indicat ion that there has been no change in the s ta te of af fa i rs of the Proper ty s ince the date th is Of fer ing Memorandum.

EXCLUSIVELY L ISTED BY:

Table of ContentsPrICIng & FInanCIaL anaLYSIS

investment Overview .................................................... 2investments Highlights .................................................. 2executive summary ..................................................... 3company Overview..................................................... 4

ProPErTY DESCrIPTIonphysical description ..................................................... 7birds eye .................................................................... 9regional map ........................................................... 10tenant map................................................................11

DEmograPhICScity Overview | Hermitage, tN ................................. 14demographics report ................................................ 15

James HollemanBroker of Record License No. 235328

Gary ChouDirector | Restaurant Practice GroupDIRECT +1.310.919.5827 MOBILE +1.714.928.8016 [email protected] License No. 01911222

matthews retail group Property Before Renovation

Pricing & financial analysisPricing & financial analysis

OFFERING MEMORANDUM | Applebee’sP. 2 matthews retail group

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Investments highlightsQUaLITY naTIonaL TEnanT anD oPEraTIonS

• leased to a national tenant, Applebee’s, a subsidiary of dineequity, inc. - largest casual-dining restaurant chain in the world

• recently renovated to Applebee’s modern concept• Few casual dining competitors in the immediate area• large Franchisee Operator - Neighborhood Hospitality, inc

InFLaTIon rESISTanT CaSh FLoW

• Absolute NNN lease – Zero landlord responsibilities• 10% rental increases in each of the two (2) five (5) year options

- great hedge against inflation

STrong rETaIL CorrIDor

• excellent retail area, Applebee’s site is surrounded many recognized National tenants such as lowe’s, the Home depot, Walgreens, staples, and Hobby lobby, verizon, sprint, chilli’s grill & bar, steak ‘n shake, Famous dave’s bar-b-Que, Firestone complete Auto care, O’reilly Auto parts, dollar general, Us post Office, Us bank, golden corral, sherwin-Williams, Advance Auto parts, buffalo Wild Wings, dunkin donuts, Qdoba mexican grill, and burger king, chick-fil-A, pizza Hut, iHOp, Zaxby’s, Hooters, suntrust bank

• Hermitage is a close suburb of Nashville with easy access to interstate 40 and route 70 which both head directly into the heart of Nashville msA

matthews retail group P. 3Applebee’s | OFFERING MEMORANDUM

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PrICIng anD FInanCIaL anaLYSIS prOperty descriptiON demOgrApHics

Executive Summary

aPPLEBEE’S5055 oLD hICkorY BLVD hErmITagE, Tn 37076

List Price .........................................................................$1,619,000CAP Rate - Current .................................................................. 9.00%Gross Leasable Area .......................................................... 4,956 SFLot Size ....................................................... 1.52 Acres (66,211 SF)Year Built ..................................................................................1992

annualized operating Datamonthly rent Annual rent rent/sF cAp rate

current- 8/31/18 $12,145.83 $145,749.96 $29.41 9.00%

Option 1: 9/1/18-8/31/23 $13,360.41 $160,324.96 $32.35 9.90%

Option 2: 9/1/23- 8/31/28 $14,696.45 $176,357.45 $35.58 10.89%

Tenant Summary

tenant trade Name Applebee's

type of Ownership Fee simple

lease guarantor Franchisee (Woodland group, inc.)

lease type NNN

roof and structure tenant responsible

Original lease term 20 years

lease commencement date 8/24/1998

rent commencement date 9/1/1998

lease expiration date 8/31/2018

term remaining on lease three years

increases 10% every 5 years & in Options

Options two (2) Five (5) year



Company overview

With more than 2,000 restaurants in 49 states, 16 countries and one U.s. territory, Applebee’s is the world’s largest casual din-ing brand. Founded in 1980 in Atlanta, georgia by bill and t.J. palmer, Applebee’s has always been dedicated to full service, consistently good food, reasonable prices and quality service in a neighborhood setting. today, we are focused on building upon this heritage and maintaining Applebee’s brand position at the top of the casual dining industry by becoming more competitive and differentiated in the casual dining segment of the restaurant industry.

We expect to generate sustainable same-store sales momentum for the Applebee’s brand by significantly increasing the effectiveness of Applebee’s marketing efforts, making meaningful improvements to the operational performance of our restaurants, and continu-ously introducing fresh, innovative dishes for our guests to enjoy.

property Name Applebee’s

property type casual dining

parent company trade Name dineequity, inc. (diN)

Ownership public

credit rating b

rating Agency standard & poor’s

revenue $4.54 billion

Net income $21.9 million

stock symbol diN

board Nyse

No. of locations 2,003+

No. of employees 28,000+

Headquartered kansas city, mO

Web site www.applebees.com

year Founded 1980


PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PrICIng anD FInanCIaL anaLYSIS prOperty descriptiON demOgrApHics


priciNg ANd FiNANciAl ANAlysis ProPErTY DESCrIPTIon demOgrApHics

Property Before Renovation


Property description

Property description



Physical Description

ThE oFFErIngProperty Name ..................................................................... Applebee’s

Property Address ................................................ 5055 Old Hickory Blvd

Hermitage, TN 37076

Assessor’s Parcel Number .................................................075-00-0-161

Zoning ....................................................SCR (Shopping Center Regioal)

SITE DESCrIPTIonNumber of Stories ...........................................................................One

Year Built ...................................................................................... 1992

Gross Leasable Area (GLA) .......................................................4,956 SF

Lot Size ............................................................ 1.52 Acres (66,211 SF)

Type of Ownership ................................................................ Fee Simple

Parking .................................................................±101 Surface Spaces

Parking Ratio ............................................................. ±20.38: 1,000 SF

Landscaping ........................................................................Professional

Topography ....................................................................Generally Level

ConSTrUCTIonFoundation .......................................................................Concrete Slab

Framing ...................................................................................... Wood

Exterior ......................................................................................... Brick

Parking Surface .........................................................................Asphalt

Roof ................................................................................................Flat


PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS priciNg ANd FiNANciAl ANAlysis ProPErTY DESCrIPTIon demOgrApHics

Bird’s Eye



regional map


PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS priciNg ANd FiNANciAl ANAlysis ProPErTY DESCrIPTIon demOgrApHics

Tenant map


demographics

demographics



City overview | hermitage, Tn Hermitage, tennessee is a section of metropolitan Nashville, tennessee located in eastern davidson county, adjacent to, and named in honor of, the Hermitage, home of Andrew Jackson, seventh president of the United states. though the area is incorporated as part of the metropolitan government of Nashville and davidson county, it maintains its own identity as a residential and commercial suburban area.

located just minutes out of Nashville, tennessee, Hermitage is a spot that welcomes many tourists. Hermitage is mostly known for its country music and the famous estate of the United states’ general and 7th president, Andrew Jackson. the mansion still sits on several acres of land, acompanied by farm animals, gardens and more for vistors and tourists to walk around and experience a day in the life of Andrew Jackson. the mansion itself has been turned into a museum where visitors are welcome to come inside and take a look around, today the home itself now has been visited by millions.

Hermitage is located immediately to the east of donelson, a Nashville borough which is named in honor of Andrew Jackson’s father-in-law John donelson, and just to the west of mount Juliet in adjacent Wilson county. A somewhat rural area only thirty years ago, Hermitage is now a

thriving district with a highly developed network of retail stores and typical suburban tract houses ranging from the “starter home” to the “executive residence”. the technology headquarters of deloitte touche tohmatsu, one of the big Four auditors, is located in Hermitage, sprawling over 200,000 square feet (19,000 m2) and employing over 1,000 people. An array of apartments exists as well. major thoroughfares include U.s. route 70, interstate 40, and state route 45. the city also has a station on the new music city star commuter rail service and is also home to the tennessee secondary school Athletic Association, the organization which administers junior and senior high school sporting events.

percy priest dam, a nearby United states Army corps of engineers project, which provides a great deal of recreation opportunities, particularly in the summer months, and which has contributed greatly to the desirability and value of the area’s real estate. Hermitage and donelson are often thought of as something of a unit, and even have a joint chamber of commerce and christmas parade.


PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Demographics reportpopulation 1-mile 3-mile 5-mile2020 projection 7,718 52,400 113,8052015 estimate 7,342 48,562 106,1122010 census 6,973 44,368 97,7702000 census 6,996 37,637 83,609growth 2015-2020 5.12% 7.90% 7.25%growth 2010-2015 5.29% 9.45% 8.53%growth 2000-2010 -0.32% 17.89% 16.94%

Households2020 projection 3,125 22,392 47,5342015 estimate 2,968 20,849 44,4382010 census 2,808 19,244 41,2262000 census 2,795 15,944 34,625growth 2015-2020 5.31% 7.40% 6.97%growth 2010-2015 5.71% 8.34% 7.79%growth 2000-2010 0.43% 20.70% 19.06%

income$0 - $15,000 11.05% 10.09% 10.09%$15,000 - $24,999 12.06% 10.33% 10.33%$25,000 - $34,999 14.08% 12.43% 12.43%$35,000 - $49,999 17.25% 16.73% 16.73%$50,000 - $74,999 19.54% 19.92% 19.92%$75,000 - $99,999 13.34% 14.20% 14.20%$100,000 - $124,999 6.60% 7.54% 7.54%$125,000 - $149,999 3.40% 3.97% 3.97%$150,000 - $199,999 1.52% 3.02% 3.02%$200,000 - $249,999 0.47% 0.78% 0.78%$250,000 - $499,999 0.57% 0.86% 0.86%$500,000+ 0.07% 0.14% 0.14%2015 est. Average Household income $56,613 $62,931 $66,055 2015 est. median Household income $46,126 $50,537 $52,990

matthews retail group | 841 Apollo street, suite 150 | el segundo, cA 90245 | www.matthewsretailgroup.com

aPPLEBEE’S5055 old hickory Blvdhermitage, Tn 37076oFFErIng mEmoranDUm

James HollemanBroker of Record License No. 235328

Gary ChouDirector | Restaurant Practice GroupDIRECT +1.310.919.5827 MOBILE +1.714.928.8016 [email protected] License No. 01911222

applebee’s - matthews · making an offer to purchase the property unless and until a written...

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