matthews real estate investment services representative photo · 2017-07-29 · 3. you will not,...

H a r d e e ’ s , P e t e r s b u r g , I L | 1

O F F E R I N G M E M O R A N D U M

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Hardee’s4 0 1 E S a n g a m o n A v e | P e t e r s b u r g , I L 6 2 6 7 5

Representative Photo

2 | M a t t h e w s R e a l E s t a t e I n v e s t m e n t S e r v i c e s™

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E X E C U T I V E S U M M A R Y

f i n a n c i a l O V E R V I E W

a r e a O V E R V I E W

t e n a n t o v e r v i e w

a n d r e w i va n k o v i c h

Associate

Andrew. [email protected] (214) 692-2037MOB (626) 807-3586LIC # 678815 (TX)

B r a d e n C r o c k e t t

Associate VP & Director

[email protected] (214) 692-2040MOB (714) 345-6206LIC # 01946071 (CA)

Randy OlczykBroker of Record

Lic #471 .018001


4 | M a t t h e w s R e a l E s t a t e I n v e s t m e n t S e r v i c e s

• Absolute NNN Lease – Zero Landlord Responsibilities

• 7.37 Years Remaining On Lease, Guaranteed By Paradigm Investment Group – 105 Unit Operator – One of the Largest Franchisees in the CKE System

• Low Price Point Deal With An Incredibly Attractive Return of 8.50%.

• 2% Annual Increases – Ideal Hedge Against Inflation

• Building Sits On Over An Acre On Land – 1.32 AC

• Renovations To The Building Made In 2012

• Solid Average Household Income In – 1-Mile ($68,615), 3-Mile ($74,416), 5-Mile ($74,913)

• 25 Miles North Of Springfield, IL – State’s Capital

• Hardee’s Provides A Terrific Brand With National Recognition – Roughly 3,000 Locations Nationwide

i n v e s t m e n t h i g h l i g h t s

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H a r d e e ’ s401 E Sangamon AvePetersburg, IL 62675

List Price .............................................................................................................. $883,671

CAP Rate - Current ................................................................................................. 8.50%Gross Leasable Area .....................................................................................± 2,564 SF Lot Size ..........................................................................................................± 1.32 Acres Year Built ...................................................................................................................... 1996

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Increases

Current - 9/30/2017 $6,259.37 $75,112.49 $29.30 8.50%

10/1/2017 - 9/30/2018 $6,384.56 $76,614.74 $29.88 8.67%

10/1/2018 - 9/30/2019 $6,512.25 $78,147.03 $30.48 8.84%

10/1/2019 - 9/30/2020 $6,642.50 $79,709.98 $31.09 9.02%

10/1/2020 - 9/30/2021 $6,775.35 $81,304.17 $31.71 9.20%

10/1/2021 - 9/30/2022 $6,910.85 $82,930.26 $32.34 9.38%

10/1/2022 - 9/30/2023 $7,049.07 $84,588.86 $32.99 9.57%

10/1/2023 - 9/30/2024 $7,190.05 $86,280.64 $33.65 9.76%

10/1/2024 - 12/24/2024 $7,333.85 $88,006.25 $34.32 9.96%

Tenant Summary

Tenant Trade Name Hardee’s

Type of Ownership Fee Simple

Lease Guarantor Franchisee

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date 9/26/2006

Rent Commencement Date 9/26/2006

Lease Expiration Date 12/19/2024

Term Remaining on Lease ± 7.37 Years

Increases 2% Increases

Options Four, 5-Year Options


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Property Name Hardee’s

Parent Company Trade Name CKE Restaurants

Ownership Private

No. of Locations ± 3,000

No. of Employees ± 16,680

Headquartered Franklin, TN

Website www.hardees.com

Year Founded 1961

TENANT OVERVIEWAs a subsidiary of fast food giant CKE Restaurants, Hardee’s Food Systems is a leading fast food chain operator with more than 3,000 locations in some 30 states, primarily in the Midwest and Southeast. The chain offers a variety of premium-priced Angus beef hamburgers under such names as Thickburger, Six Dollar Burger, and the Monster Thickburger. Hardee’s also serves up chicken sandwiches, salads, fries, and beverages, as well as dessert items. About 475 of the restaurants are operated by the company, while the rest are franchised.

GEOGRAPHIC OUTREACHSince the opening of the first restaurant in Greenville, North Carolina in 1960, Hardee’s has established a strong presence throughout the Midwest and Southeast. Most locations are in the United States, distributed among some 30 states.

STRATEGYThe company’s Hardee’s chain has started to incorporate its own dual branding strategy, pairing some of its locations with Red Burrito outlets. Plans to continue expansion in international markets are underway and involve the use of franchise development agreements. CKE is targeting growth in Brazil, Canada, China, and Russia. In 2014 Carl’s Jr. announced plans to expand in Ontario, Canada’s “Golden Horseshoe,” a territory that includes Toronto, Mississauga, Oakville, Burlington, Hamilton, Brantford and London. Hardee’s chains market themselves as gourmet burger outlets with slightly higher menu prices. In lieu of rapid expansion, CKE has focused on managing costs and investing in additional marketing efforts to drive traffic to its restaurants. Its chains target primarily a young, male demographic with oversized burgers made with premium Angus beef.


t h e o f f e r i n g

Property Name Hardee’s

Property Address 401 E Sangamon Ave

Petersburg, IL 62675

Assessor’s Parcel Number 11-13-104-007

Site DescriptionNumber of Stories OneYear Built 1996Gross Leasable Area (GLA) ± 2,564 SFLot Size ± 1.32 Acres (57,634 SF) Type of Ownership NNNParking ± Surface Spaces

Parking Ratio : 1,000 SF

Landscaping Professional

Topography Generally Level

ConstructionFoundation Concrete SlabFraming WoodExterior MasonryParking Surface AsphaltRoof Flat

Oceanside Blvd ± 31,792

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lege

Blv

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40,11

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E Sangamon Ave ± 7,000 ADT


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d e m o g r a p h i c s

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 2,329 4,256 5,231

2017 Estimate 2,364 4,322 5,313

2010 Census 2,413 4,416 5,428

2000 Census 2,410 4,350 5,328

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 1,024 1,843 2,232

2017 Estimate 1,029 1,855 2,247

INCOME 1 Mile 3 Mile 5 Mile2017 Est. Average Household Income $68,615 $74,416 $74,913

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H a r d e e ’ s , P e t e r s b u r g , I L | 1 1

petersburg, ILPetersburg, is located atop the bluffs and part of the floodplain just overlooking the Sangamon River. It is part of the Springfield, Illinois Metropolitan Statistical area. The Petersburg economy is derived primarily from agriculture, particularly in corn production. Tourism is also a steady industry and the town caters to Lincoln enthusiasts as a gateway to New Salem and in housing some relics of Lincoln’s early life in Illinois. There are also a growing number of bed and breakfast inns, many of which are located in restored Victorian homes. Recent developments have also turned the town into a bedroom community for the state capital of Springfield, Illinois, which is some twenty miles to the southeast. Petersburg, IL offers a vibrant business community that serves both local area residents and tourists.

distance to major cities> Springfield, IL : 23 Miles > Decatur : 60 Miles > Peoria, IL : 70 Miles

Springfield is the capital of the U.S. state of Illinois and the county seat of Sangamon County. As of 2016, the Springfield MSA had a population of 200,000. Many of the jobs in the city center around state government, headquartered in Springfield.

There are so many things to do in Springfield, IL. There are a ton of Abraham Lincoln sites in Springfield and a lot of history to be explored. For starters, there’s the Lincoln Home National Historic Site, the Lincoln Tomb and the Abraham Lincoln Presidential Museum.

Springfield, IL

major interstate routes leading to springfield

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Hardee’s located at 401 E Sangamon Ave, Petersburg, IL 62675 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion ormanner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T


BROKER OF RECORD

e x c l u s i v e ly l i s t e d b y

Hardee’s4 0 1 E S a n g a m o n A v e | P e t e r s b u r g , I L

™

a n d r e w i va n k o v i c h

Associate

Andrew. [email protected] (214) 692-2037MOB (626) 807-3586LIC # 678815 (TX)

B r a d e n C r o c k e t t

Associate VP & Director

[email protected] (214) 692-2040MOB (714) 345-6206LIC # 01946071 (CA)

R a n d y O l c z y kBroker of Record

Lic #471 .018001

matthews real estate investment services representative photo · 2017-07-29 · 3. you will not,...

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