long john silver s rare corporate guarantee

LONG JOHN SILVER’S R A R E C O R P O R AT E G U A R A N T E E

JOSEPH BLATNER / Senior Vice President (503) 200-2029 / [email protected]

SCOTT LOGAN / Senior Associate(503) 200-2023 / [email protected]

201 S MAIN STREET | MAULDIN, SC

CONFIDENTIALITY DISCLAIMER:

The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. 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 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 Marketing Brochure 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.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment 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. The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. 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 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 Marketing Brochure 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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.ACTIVITY ID: Z0210111

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LONG JOHN SILVER’S | MAULDIN, SC

TABLE OF CONTENTS

04INVESTMENT SUMMARY

Executive SummaryRent Roll

ABOUT THE PROPERTY

14MARKET SUMMARY

Location OverviewDemographics

ABOUT THE MARKET

07PROPERTY OVERVIEW

Location OverviewAerial MapsProperty PhotosTenant Overview

3


EXECUTIVE SUMMARY01 4


EXECUTIVE SUMMARY

NET OPERATING INCOME $100,000 GUARANTOR Long John Silver’s LLC

LEASE TYPE Absolute Net INCREASES 10% Increases Every 5 Years

LEASE COMMENCEMENT 1/31/2018 OPTIONS (4) Five Year Options with 10% Increases in Each Option

LEASE EXPIRATION DATE 1/30/2038 BUILDING SIZE 2,620 SF

YEAR BUILT 1995 LOT SIZE 0.73 Acres

201 S MAIN STREET | MAULDIN, SC 29662LONG JOHN SILVER’S

PRICE

$1,600,000CAP RATE

6.25%

NEW 20 YEAR

ABSOLUTE NET LEASE

5


RENT ROLL

LONG JOHN

SILVER’S2,620 SF 1/31/2018 1/30/2038 $100,000

1/31/2023

1/31/2028

1/31/2033

$110,000

$121,000

$133,100

(4) 5 year options

with 10% rental

increases

ABSOLUTE

NET

TENANT INFO

NAME SQUARE FEET

LEASE TERMS

COMMENCEMENT EXPIRATION

CURRENT RENT

ANNUAL BASE RENT

RENT INCREASES

DATE OPTIONSANNUAL RENT TYPE

LEASE

6


PROPERTY OVERVIEW02 7


LOCATION OVERVIEW

The property is located on U.S. Route 276 / Main Street, with daily traffic counts of 34,000 vehicles. U.S. Route 276 / Main Street passes through the center of Mauldin, leading northwest 8 miles to the center of Greenville and southeast 5 miles to Simpsonville.

Long John Silver’s is located in a dense retail area surrounded by both regional and national retailers such as Walgreens, CVS, Bi-Lo, KFC, Dominos, Wendy’s, Dunkin’ Donuts, Hardees & Ingles Market.

CENTRAL LOCATION

The lease is guaranteed by Long John Silver’s LLC. The iconic brand was founded in 1969 in Lexington, KY. The brand is at a three-year high on customer satisfaction and brand awareness. With nearly 1,100 units in 43 states in the United States and two countries outside of the U.S., the brand has $530 million in annual sales and 28,000 global employees.

RARE CORPORATE GUARANTEE

The 20 year absolute net lease has 10% rental increases every 5 years and four, 5 year options to renew with 10% increases in each option.

NEW 15 YEAR LEASE

The absolute net lease structure provides the owner with a passive investment and no landlord maintenance responsibilities.

ABSOLUTE NET LEASE

*Subject parcel outline is not exact

8


N

McDonald’s

Walgreens

donation center

BUTLER RD

Miracle Hill Thrift

Mauldin Cultural Center

Wholesale Glass

Distributors

Carolina Fashions

Mauldin Sports Center

AZTECA Mexican

Restaurant

S MAIN ST

17,100 CARS DAILY*

34,600 CARS DAILY*

* Costar 2016

market

After

School Plus

276

AERIAL VIEW

9


PROPERTY PHOTOS

10


10

TENANT OVERVIEW

An iconic American brand, Long John Silver’s was founded in Lexington, KY in 1969. Since then it has grown into the largest seafood company in the U.S. The market is almost saturated with burger, pizza and chicken brands - seafood is the final frontier in QSR development.

The brand is at a three-year high on customer satisfaction and brand awareness. With nearly 1,100 units in 43 states in the United States and two countries outside of the U.S. the brand has $530 million in annual sales and 28,000 global employees.

“We are moving into a new era for Long John Silver’s and enhancing the customer experience,” said CEO James O’Reilly. “Since last year’s kick off we have started to transform restaurants across the country with our new branding, introduced the drive-thru of the future, answered the call for grilled items, and updated our website.”

Recently the company has seen big developments at corporate headquarters with an upgrade to larger and more contemporary space in Louisville. The company expects to open new units in the coming year including a flagship restaurant near headquarters. It will be the first restaurant to feature all the elements of the new vision.*

Long John Silver’s was on the “Best Places to Work in Kentucky” list for the second consecutive year in 2017, according to the Kentucky Chamber of Commerce and the Kentucky Society for Human Resource Management. Long John Silver’s employs approximately 200 employees in the Louisville-metro area and has nearly 1,000 stores across the country.

“Long John Silver’s has built a family-first culture based on work/life balance, inclusivity, and recognition,” said Krista Foster, Vice President of Human Resources in a press release.*

* source: www.ljsilvers.com

# OF LOCATIONS:

1,100 ACROSS 43 STATES & 2 COUNTRIES# OF EMPLOYEES:

28,000 GLOBALLY

ANNUAL SALES:

$530 MILLION86% brand awareness

88% of the US population enjoys eating seafood

Core menu items: fish, sandwiches, shrimp, chicken

Three-year high on customer satisfaction

Established training and support

World-class marketing

A B O U T L O N G J O H N S I LV E R ’ S

LONG JOHN SILVER’S POISED FOR GROWTH

NAMED ON BEST PLACES TO WORK IN KENTUCKY

11


MARKET SUMMARY03 12


LOCATION OVERVIEWA B O U T M A U L D I N , S C

Mauldin, SC is a principal city of the Greenville-Anderson-Mauldin Metropolitan Statistical Area. Mauldin is situated in the heart of the Upstate of South Carolina; 3 hours from the sunny South Carolina shoreline, a little over one hour away from the Blue Ridge Mountains, and only 15 minutes from Greenville-Spartanburg International Airport. Major shops are only 10 minutes away and a large array of restaurants and family-friendly activities are at every turn.

GEOGRAPHYMauldin is located south of the center of Greenville County, between the city of Greenville to the northwest and Simpsonville to the southeast. According to the United States Census Bureau, the city has a total area of 10 square miles. U.S. Route 276 (Main Street) passes through the center of Mauldin, leading northwest 8 miles to the center of Greenville and southeast 5 miles to Simpsonville.

Mauldin is a progressive community of about 24,000 people. The 2010 Census revealed that Mauldin was the 7th fastest growing city in South Carolina and, based on 2013 Census estimates, is the 17th largest of 270 South Carolina cities.

Mauldin is full of family-friendly activities, great restaurants, arts and culture, and over 70 acres of parks. All of their parks feature sprawling sports fields, a pedestrian walking trail and picnic shelters. With the Blue Ridge Mountains a short drive away, there’s also hiking, whitewater rafting, horse back riding, mountain biking, hunting, fishing and spectacular waterfalls to discover

POPULATION & GROWTH

OUTDOOR ATTRACTIONS

Blue Ridge Mountains 13


DEMOGRAPHICS

POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection

Total Population 8,527 46,959 129,183

2017 Estimate


2010 Census


2000 Census


Current Daytime Population

2017 Estimate 6,939 41,705 138,309

HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection

Total Households 3,549 19,215 52,103

2017 Estimate


Average (Mean) Household Size 2.41 2.45 2.48

2010 Census


2000 Census


Occupied Units

2022 Projection 3,549 19,215 52,103

2017 Estimate 3,271 17,698 48,764

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate

$150,000 or More 4.59% 7.17% 9.67%

$100,000 - $149,000 11.90% 14.12% 14.98%

$75,000 - $99,999 13.84% 16.40% 14.99%

$50,000 - $74,999 23.26% 23.45% 19.80%

$35,000 - $49,999 14.50% 12.29% 12.61%

Under $35,000 31.89% 26.54% 27.95%

Average Household Income $64,454 $73,396 $80,304

Median Household Income $53,374 $60,482 $60,707

Per Capita Income $26,346 $29,673 $31,975

PopulationIn 2017, the population in a 5 mile radius of the subject property is117,931. The population has changed by 46.08% since 2000. It isestimated that the population in the area will be 129,183.00 five yearsfrom now, which represents a change of 9.54% from the current year.The current population is 47.79% male and 52.21% female. Themedian age of the population in the area is 37.88, compare this to theUS average which is 37.83. The population density in the area is1,501.08 people per square mile.

HouseholdsThere are currently 46,851 households in a 5 mile radius of thesubject property. The number of households has changed by 49.16%since 2000. It is estimated that the number of households in the areawill be 52,103 five years from now, which represents a change of11.21% from the current year. The average household size in the areais 2.48 persons.

IncomeIn 2017, the median household income for in a 5 mile radius of thesubject property is $60,707, compare this to the US average which iscurrently $56,286. The median household income for the area haschanged by 20.32% since 2000. It is estimated that the medianhousehold income in the area will be $70,108 five years from now,which represents a change of 15.49% from the current year.

The current year per capita income in the area is $31,975, comparethis to the US average, which is $30,982. The current year averagehousehold income in the area is $80,304, compare this to the USaverage which is $81,217.

HousingThe median housing value in in a 5 mile radius of the subject propertywas $181,994 in 2017, compare this to the US average of $193,953.In 2000, there were 21,938 owner occupied housing units in the areaand there were 9,473 renter occupied housing units in the area. Themedian rent at the time was $549.

EmploymentIn 2017, there are 130,051 employees in the selected area, this is alsoknown as the daytime population. The 2000 Census revealed that66.57% of employees are employed in white-collar occupations inthis geography, and 33.42% are employed in blue-collar occupations.In 2017, unemployment in this area is 3.24%. In 2000, the averagetime traveled to work was 22.00 minutes.

14


5 M

ILES

3

MILES

1 M

ILE

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LONG JOHN SILVER’S C O R P O R A T E G U A R A N T E E

MAULDIN, SOUTH CAROLINA

JOSEPH BLATNER / Senior Vice President (503) 200-2029 / [email protected]

SCOTT LOGAN / Senior Associate(503) 200-2023 / [email protected]

long john silver s rare corporate guarantee

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