Investment Highlights
• Brand new construction completed
November 2014
• 20 year NNN corporate lease that
commenced in November 2014 with 7%
rent bumps every 5 years
• SignalizedcornerlocationjustoffI-59with
close proximity to the international airport
and downtown district
• WellpositionedwithintradeareaatahighprofileintersectionadjacenttoWalmart
• Over 50,000 cars per day in front of property
• Over 104,000 residents in a 5 mile radius of property
BirminghamAL-2,794SF
$2,785,000•5.50%CapRate
JackJamison,Broker-In-Charge550S.MainStreet,Suite300•Greenville,SC29601
864.263.5414o•864.232.0160f•www.REALTYLINKDEV.com
Forinvestmentinformation:J. Tyson Glasser, CCIM •InvestmentSalesAdvisor
[email protected]•864.263.5427o•404.435.6312c
Investment Property
ATTENTION:Thisbrochurehasbeenpreparedtoprovidesummaryinformationtoprospectivepurchasersandtoestablishapreliminarylevelofinterest in thepropertypresented. Itdoesnot,however,purport topresentallmaterial information regarding thesubjectproperty,and it isnota substitute fora thoroughduediligence investigation. Inparticular,RealtyLink,LLChasnotmadeany investigationandmakesnowarrantyorrepresentationwithrespecttothefinancialconditionorbusinessprospectsofanytenantoranytenant’splansorintentionstocontinueorrenewitsoccupancyofthesubjectproperty.Theinformationcontainedinthisbrochurehasbeenobtainedfromsourceswebelievetobereliable;however,RealtyLink,LLChasnotconductedanyinvestigationregardingthesemattersandmakesnowarrantyorrepresentationwhatsoeverregardingtheaccuracyorcompletenessoftheinformationprovided.
TheRealtyLinknameisaregisteredtrademarkofRealtyLink,LLC.
TheRealtyLinklogoisaregisteredservicemarkofRealtyLink,LLC.
Textandcontent©Copyright2014RealtyLink,LLC.
9400ParkwayEast
Birmingham,JeffersonCounty,Alabama35215
TableofContents
Property Summary
FinancialSummary
TenantProfile
Property Photos
Site Plan
Aerial
LocationMaps
MarketPhotos
MarketProfile
Demographics
Property Summary
Location: NWsignalizedcornerofParkwayEastandRedLaneRd,lessthan1/2mileoffI-59exit134about8 miles NE of downtown Birmingham
LandSize: +/-0.95Acres
BuildingSize: +/-2,794SquareFeet
BuildingAge: NewconstructioncompletedNovember2014
Tenant/Guarantor: Hardee’sRestaurants,LLC(corporate)
LeaseType: AbsoluteTripleNet
LeaseCommencement: November18,2014
BaseLeaseTerm: 20years(7.0%rentbumpsevery5years)
OptionTerms: 4optionsat5yearseach
LandlordResponsibility: None
TenantResponsibility: CAM,Taxes,Insurance,Utilities,HVAC,Roof,Structure,ParkingLot
Frontage: +/-288feetonParkwayEastand+/-130feetonRedLaneRd
Signage: All4sidesofbuilding,elevatedpylononParkwayEastandinterstateexitsign
Access: Rightin/rightoutentrance/exitonParkwayEastandallturnentrance/exitonRedLaneRd
Parking: +/-37Spacesincluding2handicapspaces
Zoning: CB-2(ContingencyGeneralBusinessDistrict)
Declaration: PremisesaresubjecttoCovenants,Conditions&RestrictionsAgreement
RightofFirstRefusal: Tenanthas20daysfromreceiptoflandlordnoticetoexerciseROFRoption
TrafficCounts: +/-50,840onParkwayEastatRedLaneRd(2013AADT-ALDOT)
+/-54,410onI-59WestofExit134(2013AADT-ALDOT)
Demographics: 2014 1-Mile 3-Mile 5-Mile
Population 5,405 42,310 103,880
Households 2,270 16,419 40,532
AverageHHIncome $50,140 $48,388 $50,472
MedianHHIncome $39,855 $38,071 $38,056
FinancialSummary
PurchasePrice: $2,785,000
EstimatedBaseRent: $153,056.55 (years1-5)
$163,770.51 (years6-10)
$175,234.44 (years11-15)
$187,500.85 (years16-20)
GoingInCapRate: 5.50%
CapRateon12/1/19: 5.88%
CapRateon12/1/24: 6.29%
CapRateon12/1/29: 6.74%
AverageCapRate: 6.10%(years1-20)
CAM: Tenantpays
Taxes: Tenantpays
Insurance: Tenantpays
AdministrativeFee: None
REAContribution: Tenantpays
AssumableFinancing: Propertydeliveredfreeandclearofdebtatcloseofescrow
ProposedFinancing: 65-70%loan-to-value($835-975Kdownpayment)
4.0-4.25%interestrate
10yearterm
25-30yearamortization
$114,662.00annualdebtservice(using65%LTV,4.0%interest,25yearamort.)
$38,394.55afterdebtcashflow(years1-5)
3.94%cash-on-cashreturn(years1-5)
TenantFinancials: Availablefrombrokerafterexecutionofaconfidentialityagreement
TenantProfile
Hardee’s®isawholly-ownedsubsidiaryofCKERestaurantsHoldings,Inc.,aprivatelyheldcompanyheadquarteredinCarpinteria,CA.Throughitssubsidiaries,CKEfranchisesandoperatesHardee’s®andCarl’sJr.®quick-servicerestaurants.TheCKESystemincludesmorethan3,550locationsin42statesand33countries.
Hardee’s®hasbuiltapositionasoneofAmerica’spremierburgerbrands.Foundedin1960byWilberHardee,Hardee’s®operatesorfranchisesmorethan2,000quick-servicerestaurantsin30U.S.statesand9countries.Today,Hardee’s®islookingforexceptionalnewfranchisecandidatesthroughouttheMid-WesternandEasternUnitedStates.
FoundedbyindustrypioneerCarlN.Karcher,Carl’sJr.®restaurantshavebeenaWestCoastfavoriteformorethan70years.TheKarcherssoongrewtheirsmallbusiness—eventuallyfocusingtheireffortsontheCarl’sJr.brand,oneofthefirstinanewbreedofrestaurantsthattodaymakeupthequick-servicerestaurantindustry.Withmorethan1,500restaurants,Carl’sJr.isregardedastheplacetogoforpremium-qualityburgers.
Sinceitsfoundingin1990,Apollohasgrowntobecomeoneoftheworld’slargestalternativeinvestmentmanagers.AsofMarch31,2013,Apollohadtotalassetsundermanagementof$114billion,withateamof644employeeslocatedintenofficesaroundtheworld.Theyarecontrarian,value-orientedinvestorsinprivateequity,credit,andrealestate.Apolloraises,invests,andmanagesfundsonbehalfofsomeoftheworld’smostprominentpensionandendowmentfundsaswellasotherinstitutionalandindividualinvestors.ApolloaquiredCKERestaurantsin2010.
Hardee’s®consistentlyout-deliversthecompetitionwithaninnovativemenustrategythatfocusesondevelopingpremium,sit-downrestaurantqualitymenuitems.Whetherit’sthe1/3-lb.100%BlackAngusBeefThickburger®line,Hand-ScoopedIceCreamShakes&Malts™orMadefromScratch™Biscuits,Hardee’s®providesabest-in-classmenuthatsupportsapremiumfranchiseopportunity.
MarketProfile
CommunityProfile
BirminghamisthelargestcityinAlabamawithapopulationcurrentlyestimatedat242,820,andametropopulationof1,079,089(BirminghamForward.gov).ThecityisthecountyseatofJeffersonCounty.ThepaceofBirmingham’sgrowthduringtheperiodfrom1881through1920earneditsnicknamesTheMagicCityandThePittsburghoftheSouth.Fromitsfoundingthroughtheendofthe1960s,BirminghamwasaprimaryindustrialcenteroftheSouth.Theeconomydiversifiedduringthelaterhalfofthetwentiethcentury.Thoughthemanufacturing industry maintains a strong presence in Birmingham, other businesses and industries such as banking, telecommunications, transportation,electricalpowertransmission,medicalcare,collegeeducation,andinsurancehaveriseninstature.
Birmingham ranks as one of the most important business centers in the Southeastern UnitedStatesandisalsooneofthelargestbankingcentersintheUnitedStates.Inaddition,theBirminghamareaservesasheadquarterstooneFortune500company:RegionsFinancial,alongwithfiveotherFortune1000companies.Twoofthelargestsoft-drinkbottlersintheUnitedStates,eachwithmorethan$500millioninsalesperyear,arelocatedinBirmingham.TheBuffaloRockCompany,foundedin1901,wasformerlyamakerofjustgingerale,butnowitisamajorbottlerforthePepsiColaCompany.TheCoca-ColaBottlingCompany,United,foundedin1902,isthethird-largestbottlerofCoca-ColaproductsintheU.S.
Birminghamranks13thamongthelargestsoutheasternmetropolitanareas,represents24percentofAlabama’stotalpopulation,31percentofAlabama’stotalpayrolldollars,ranks48thinpopulationamongthenation’stop300metropolitanareas,andishometo40,680Businesses.TheBirminghammetropolitanareahasconsistentlybeenratedasoneofAmerica’sbestplacestoworkandearnalivingbasedonthearea’scompetitivesalaryratesandrelativelylowlivingexpenses.Onestudypublishedin2006bySalary.comdeterminedthatBirminghamwassecondinthenationforbuildingpersonalnetworth,basedonlocalsalaryrates,livingexpenses,andunemploymentrates.
Healthcare
TheUABHealthSystem(UABHS)isapartnershipbetweenUABandtheUniversityofAlabamaHealthServicesFoundation(UAHSF),aprivatenot-for-profitmedicalpracticemadeupofthefacultyoftheUABSchoolofMedicine.UABHSisgovernedbyaboardofdirectorswhichhasrepresentativesofUAHSF,theUniversityofAlabamaBoardofTrustees,andUABadministrators.TheUABpresidentistheexofficiochairpersonoftheUABHealthSystem.TheCEOoftheUABHSreportsdirectlytotheUABHealthSystemboardandisappointedbythechairmanoftheboard.
UABHospitalisthecentralinstitutionofUABHS.ItwasformedasUniversityHospitalin1945fromthemergerofJeffersonHospitalandHillmanHospital,twoprivatehospitalsintheSouthsideofBirminghamacquiredbytheUniversityofAlabamaBoardofTrustees.UniversityHospitalwascreatedtoserveastheprimaryteachinghospitalfortheSchoolofMedicine.
InadditionUABHSmanages,butdoesnotoperate,MedicalWestinBessemerandBaptistHealthinMontgomery.UABHSalsohasaffiliationswiththeBirminghamVAMedicalCenter,Children’sHospitalofAlabama,andHuntsvilleHospitalinHuntsville.
MarketProfile
Recreation/Leisure
IthasbeensaidthatBirminghamisthelastmajorSoutherncityinAmerica,whereafriendly“Howy’alldoin’,”aheartymealofcountry-friedsteakwithbutterbeansandatruetasteofSouthernhospitalityawaitvisitors.Whetheryou’reintothehistoryoftheCivilRightsmovement,afanofjazzmusicorjustlookingforcultureandafewfunactivitiesforthefamily,SweetBirminghamistheplaceforyou.SpendthemorningattheBirminghamMuseumofArt,thenhavelunchatatraditionalSoutherntearoom.OutdoorenthusiastscanteeoffattheRobertTrentJonesGolfTrailorpackalunchandspendthedayhikingandenjoyingthevistasatRuffnerMountain.Aworld-classzoo,theinnovativeMcWaneCenterandVisionLand,Alabama’sfirstamusementpark,aresuretokeepfamiliesentertainedandonthego.Intheevening,listentoabluesshowatanoutdoorcafeandthenspendthenightatasmallcozyinnorsplurgeforaneleganthotel.Birmingham’snightlifeisprimarilyclusteredaroundFivePointsSouthandLakeview,butanadditional$55-millionentertainmentdistricthasbeenapprovedforanareaadjacenttotheBJCC.Birminghamishometoexcitingattractions,fantastic,one-of-a-kindrestaurantsandastockofyear’roundentertainment.Golfanyone?Fromtheworld-classRobertTrentJonesGolfTrailtouniqueshoppingandnightlife,Birminghamhasitall.(www.tripadvisor.com)
Education
TheBirminghamareaisreputedtobethehomeofsomeofAlabama’sbest highschools,colleges,anduniversities.In2005,theJeffersonCountyInternational Baccalaureate School in Irondale, an eastern suburb of Birmingham, was rated as the No.1highschoolinAmericabyNewsweek,anationalpublication.Theschool remainsamongthenation’stop5highschools.
Inhighereducation,BirminghamhasbeenthelocationoftheUniversityofAlabama SchoolofMedicine(formerlytheMedicalCollegeofAlabama)andtheUniversity ofAlabamaSchoolofDentistrysince1947.Sincethattimeithasalsoobtained acampusoftheUniversityofAlabama,UniversityofAlabamaatBirmingham (foundedcirca1969),oneofthreemaincampusesoftheUniversityofAlabama System.Itisalsohometothreeprivateinstitutions:SamfordUniversity,Birmingham-SouthernCollege,andMilesCollege.Betweenthesecollegesanduniversities,theBirminghamareahasmajorcollegesofmedicine,dentistry,optometry,pharmacy,law,engineering,andnursing.Thecityhasthreeofthestate’sfivelawschools:CumberlandSchoolofLaw,BirminghamSchoolofLaw,andMilesLawSchool.BirminghamisalsotheheadquartersoftheSoutheasternConference,oneofthemajorU.S.collegiateathleticconferences.
ForinformationaboutRoebuck,AL.,pleasevisithttp://alabama.hometownlocator.com/al/jefferson/roebuck.cfm,http://www.realtor.com/local/Roebuck_Birmingham_AL/lifestyle