lion’s choice 3140 elm point industrial drive st. charles

LION’S CHOICE3140 Elm Point Industrial DriveSt. Charles, MO 63301 (St. Louis MSA)

NET LEASE INVESTMENT OFFERING

TABLE OF CONTENTS

TABLE OF CONTENTS

II. Location OverviewPhotographsAerialSite PlanMap

III. Market OverviewDemographic ReportMarket Overview

I. Executive ProfileExecutive SummaryInvestment HighlightsProperty Overview


III. Tenant OverviewTenant OverviewExecutive Profiles

DISCLAIMERSTATEMENT:

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 The Boulder Group and/or Lee & Associates and should not be made available to any other person or entity without the written consent of The Boulder Group and/or Lee & Associates.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, 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. The Boulder Group and Lee & Associates have not made any investigation, and make no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group and Lee & Associates have not verified, and will not verify, any of the information contained herein, nor has The Boulder Group or Lee & Associates 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.


DISCLAIMER STATEMENT

EXECUTIVESUMMARY:

The Boulder Group and Lee & Associates are pleased to exclusively market for sale a single tenant Lion’s Choice restaurant property located within the St. Louis MSA in St. Charles, Missouri. The 17 year absolute triple net corporate lease will feature 7.5% rental escalations every five years and have five 5-year renewal options. There are over 92,000 people living within five miles of the property. The average Lion’s Choice restaurant serves approximately 1,000 pounds of beef per week. In addition to its core of 100% real roast beef sandwich offerings, Lion’s Choice sells other proteins of equal high quality such as lean ham, roasted turkey and all-beef hot dogs.

The 2,457 square foot building is located at the hard corner of a signalized intersection within the St. Louis MSA with combined traffic counts of 49,481 vehicles per day. The Lion’s Choice property has excellent visibility and easy access due to its location at the hard corner. The Lion’s Choice property is also located just off of Missouri Route 370, which experiences 54,727 Vehicles per day. Some retailers in the immediate area include Walgreens, Circle K and Holliday Inn Express. To further enhance the customer’s experience, the store will be remodeled in upcoming years. Lion’s Choice has had a long and successful operating history at this location since 2006 due to its location in a high traffic area with an abundance of national retailers.

Lion’s Choice is a Missouri-based quick service restaurant chain specializing in roast beef sandwiches. In 2013, the founders sold the company to St. Louis-based private investors. Famous for serving very lean, butcher-shop-quality top-round whole muscle roast beef, slow-roasted daily on-site and cut razor thin, Lion’s Choice has earned a loyal customer base across its 22 company-owned and 3 franchised Lion’s Choice restaurants throughout the metro St. Louis area.


EXECUTIVE SUMMARY

INVESTMENT HIGHLIGHTS:

• Long term 17 year corporate lease

• 7.5% rental escalations every five years

• Located within the St. Louis MSA

• Long and successful operating history at the location since 2006

• Absolute triple net with zero landlord responsibilities

• Over 92,000 people living within five miles of the property

• Located at the hard corner of a signalized intersection with combined traffic counts of 49,481 VPD

• Well positioned just off of Missouri Route 370 (54,727 VPD)

• Retailers in the immediate area include Walgreens, Circle K, McDonald’s, Taco Bell and Holliday Inn Express


INVESTMENT HIGHLIGHTS

PROPERTY OVERVIEW:

Price:

Cap Rate:

Net Operating Income:

Lease Term:

Rental Escalations:

Renewal Options:

Tenant:

Lease Type:

Building Size:

Land Size:

Property Address:

$1,636,363

5.50%

$90,000

17 Years

7.5% every 5 years

Five 5-Year

Lion’s Choice

NNN

2,457 SF

0.99 Acres

3140 Elm Point Industrial Drive, St. Charles, MO 63301


PROPERTY OVERVIEW


PHOTOGRAPHS


AERIAL


SITE PLAN


MAP

DEMOGRAPHICREPORT:

Population 1-Mile 3-Mile 5-Mile

Total Population 5,009 48,826 92,573

Total Households 2,065 19,641 37,813

Income 1-Mile 3-Mile 5-Mile

Median Household Income $67,900 $58,710 $60,409

Average Household Income $92,375 $76,699 $79,734


DEMOGRAPHIC REPORT

MARKETOVERVIEW:

St. Louis, MissouriSt. Louis is an independent city and major U.S. port in the State of Missouri, built along the western bank of the Mississippi River, on the border with Illinois. The city has an estimated 2015 population of 315,685 and is the cultural and economic center of the Greater St. Louis area (home to 2,916,447 people), making it the largest metropolitan area in Missouri and the 19th-largest in the United States.

The city of St. Louis was founded in 1764 by French fur traders Pierre Laclède and Auguste Chouteau, and named after Louis IX of France. In 1764, following France’s defeat in the Seven Years’ War, the area was ceded to Spain and retroceded back to France in 1800. In 1803, the United States acquired the territory as part of the Louisiana Purchase.

The economy of metro St. Louis relies on service, manufacturing, trade, transportation of goods, and tourism. Its metro area is home to major corporations, including Anheuser-Busch, Express Scripts, Centene, Boeing Defense, Emerson, Energizer, Panera, Enterprise, Peabody Energy, Ameren, Ralcorp, Monsanto, Scottrade, Edward Jones, Go Jet, Purina and Sigma-Aldrich. St. Louis has also become known for its growing medical, pharmaceutical and research presence.

St. Louis has 2 professional sports teams: the St. Louis Cardinals of Major League Baseball and the St. Louis Blues of the National Hockey League. The city is commonly identified with the tall Gateway Arch in Downtown St. Louis.

explorestlouis.com


MARKET OVERVIEW

TENANT OVERVIEW:


TENANT OVERVIEW

Lion’s ChoiceLion’s Choice is a Missouri-based quick service restaurant chain specializing in roast beef sandwiches. The first store was opened by a group of friends in Ballwin, Missouri in 1967. The concept was originally named Brittany Beef and quickly changed to Red Lion Beef House. Later renamed Lion’s Choice as “Red Lion” was already trademarked. In 2013, the founders sold the company to St. Louis-based private investors. Famous for serving very lean, butcher-shop-quality top-round whole muscle roast beef, slow-roasted daily on-site and cut razor thin, Lion’s Choice has earned a loyal customer base across its 22 company-owned and 3 franchised Lion’s Choice restaurants throughout the metro St. Louis area. The average Lion’s Choice restaurant serves approximately 1,000 pounds of beef per week. In addition to its core of 100% real roast beef sandwich offerings, Lion’s Choice sells other proteins of equal high quality such as lean ham, roasted turkey and all-beef hot dogs. Lion’s Choice will be opening stores in the Kansas City Metropolitan area in fall 2018. Non-traditional growth in 2017 included the opening of a Concession space in the Scottrade Center in downtown St Louis serving a reduced menu offering during St Louis Blues hockey games, concerts and basketball tournaments. The company also introduced a Food Truck, which allows for brand presence at special events, pop-up lunches, and provides an introduction to the Lion’s Choice products in new trade areas and markets.

www.lionschoice.com


EXECUTIVE PROFILES

EXECUTIVEPROFILES:

Mr. Barry joined Lion’s Choice as Chief Financial Officer in September 2018. He has over 25 years of broad accounting, financial planning and analysis, operational and administrative management experience. Prior to joining Lion’s Choice, Mr. Barry most recently spent the previous six and a half years serving as the Chief Financial Officer of Sansone Group LLC, a full service commercial real estate firm headquartered in St. Louis, Missouri. During his tenure with Sansone Group, he was responsible for managing the company’s finance and accounting operations, including working with providers of debt and equity financing in conjunction with commercial real estate acquisitions and ground up developments. Mr. Barry also has held senior level positions including strategic planning and business development roles in the construction, specialty finance, and the private equity industries.

Ms. Fine has over 30 years of restaurant and specialty retail experience in QSR, Fast Casual, Casual Dining and Specialty Beverage industries. She joined Lion’s Choice in August 2016 as the Chief Operating Officer (COO) overseeing Company and Franchise operations. Previously she served as COO for Honolulu Coffee Company responsible for Retail, Wholesale, International Franchise and Support operations for five years. Prior to Honolulu Coffee Co., she served as the Senior Vice President, Chief People Officer for Panera Bread Company, LLC for eight years, during the height of this company’s expansive growth in the U.S. Ms. Fine is also the chair of the Board of Directors of Winning Women, a non-profit corporation, focusing on economic development. Ms. Fine has held other senior executive positions in the foodservice industry, including, Chief People Officer for Seed Restaurant Group, a chain restaurant operator for four years and Chief Administrative Officer for Shoney’s Inc., for five years.

Matthew Barry

Chief Financial Officer

30 Years Experience

Rebecca Fine

Chief Operating Officer

30 Years Experience

Mr. Kupstas joined the company in May of 2017 with 40 years of restaurant industry experience. Most recently with Panera Bread, he held a variety of positions including vice president of several areas including: operations, bakery operations, marketing, and purchasing. He ultimately became the brand’s Senior Vice President and Chief Franchise Officer. During Mr. Kupstas’ 17-year tenure the chain grew from 52 to over 1700 units, mostly through franchising. Mr. Kupstas began working in the restaurant industry at age 16 as a crewperson at McDonalds eventually moving into management with that company. Mr. Kupstas shifted to marketing and new concept develop with General Mills Restaurant Group and was part of the team developing the Fennimore and Nature Valley restaurant brands before moving to Red Lobster where he led strategic planning and menu planning for the chain. During his 10-year tenure at Long John Silvers, Kupstas held senior vice president positions in marketing and operations as a division head. Mr. Kupstas also has success as an independent restaurant operator with award-winning restaurants in Maine and with a restaurant partnership in St Louis. He has served as board chair of the nonprofit organization, Operation Food Search for over 12 years.

Michael Kupstas

President and Chief Executive Officer

40 Years Experience

3520 Lake Avenue, Suite 203Wilmette, IL 60091

www.bouldergroup.com

Randy [email protected]

Daniel [email protected]

1 McBride & Sons Center DriveSuite 140

St. Louis, MO 63005

www.lee-associates.com

John FeeneySenior Vice [email protected]

lion’s choice 3140 elm point industrial drive st. charles

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