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WENDY’SE X C L U S I V E N E T L E A S E D O F F E R I N G
OFFERINGMEMORANDUM
Representative Photo
3422 Taylor BlvdLouisville, KY 40215
Marcus & Millichap hereby advises all prospectivepurchasers of Net Leased property as follows:
The information contained in this Marketing Brochure hasbeen obtained from sources we believe to be reliable.However, Marcus & Millichap has not and will not verifyany of this information, nor has Marcus & Millichapconducted any investigation regarding these matters.Marcus & Millichap makes no guarantee, warranty orrepresentation whatsoever about the accuracy orcompleteness of any information provided.
As the Buyer of a net leased property, it is the Buyer’sresponsibility to independently confirm the accuracy andcompleteness of all material information beforecompleting any purchase. This Marketing Brochure is not asubstitute for your thorough due diligence investigation ofthis investment opportunity. Marcus & Millichap expresslydenies any obligation to conduct a due diligenceexamination of this Property for Buyer.
Any projections, opinions, assumptions or estimates usedin this Marketing Brochure are for example only and donot represent the current or future performance of thisproperty. The value of a net leased property to youdepends on factors that should be evaluated by you andyour tax, financial and legal advisors.
Buyer and Buyer’s tax, financial, legal, and constructionadvisors should conduct a careful, independentinvestigation of any net leased property to determine toyour satisfaction with the suitability of the property foryour needs.
Like all real estate investments, this investment carriessignificant risks. Buyer and Buyer’s legal and financialadvisors must request and carefully review all legal andfinancial documents related to the property and tenant.While the tenant’s past performance at this or other
locations is an important consideration, it is not aguarantee of future success. Similarly, the lease rate forsome properties, including newly-constructed facilities ornewly-acquired locations, may be set based on a tenant’sprojected sales with little or no record of actualperformance, or comparable rents for the area. Returnsare not guaranteed; the tenant and any guarantors mayfail to pay the lease rent or property taxes, or may fail tocomply with other material terms of the lease; cash flowmay be interrupted in part or in whole due to market,economic, environmental or other conditions. Regardlessof tenant history and lease guarantees, Buyer isresponsible for conducting his/her own investigation of allmatters affecting the intrinsic value of the property andthe value of any long-term lease, including the likelihoodof locating a replacement tenant if the current tenantshould default or abandon the property, and the leaseterms that Buyer may be able to negotiate with apotential replacement tenant considering the location ofthe property, and Buyer’s legal ability to make alternateuse of the property.By accepting this Marketing Brochure you agree to releaseMarcus & Millichap Real Estate Investment Services andhold it harmless from any kind of claim, cost, expense, orliability arising out of your investigation and/or purchaseof this net leased property.
CONFIDENTIALITY AND DISCLAIMER
The information contained in the following MarketingBrochure is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving itfrom Marcus & Millichap and should not be madeavailable to any other person or entity without the writtenconsent of Marcus & Millichap. This Marketing Brochurehas been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establishonly a preliminary level of interest in the subject property.The information contained herein is not a substitute for a
thorough due diligence investigation. Marcus & Millichaphas not made any investigation, and makes no warranty orrepresentation, with respect to the income or expensesfor the subject property, the future projected financialperformance of the property, the size and square footageof the property and improvements, the presence orabsence of contaminating substances, PCB’s or asbestos,the compliance with State and Federal regulations, thephysical condition of the improvements thereon, or thefinancial condition or business prospects of any tenant, orany tenant’s plans or intentions to continue its occupancyof the subject property. The information contained in thisMarketing Brochure has been obtained from sources webelieve to be reliable; however, Marcus & Millichap hasnot verified, and will not verify, any of the informationcontained herein, nor has Marcus & Millichap conductedany investigation regarding these matters and makes nowarranty or representation whatsoever regarding theaccuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verifyall of the information set forth herein.
NON-ENDORSEMENT NOTICE
Marcus & Millichap Real Estate Investment Services, Inc.(“M&M”) is not affiliated with, sponsored by, or endorsedby any commercial tenant or lessee identified in thismarketing package. The presence of any corporation’slogo or name is not intended to indicate or implyaffiliation with, or sponsorship or endorsement by, saidcorporation of M&M, its affiliates or subsidiaries, or anyagent, product, service, or commercial listing of M&M,and is solely included for the purpose of providing tenantlessee information about this listing to prospectivecustomers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENTFOR MORE DETAILS.
Confidentiality and Disclaimer
Table of ContentsInvestment Highlights 4
Financial Analysis & Investment Summary 5
Concept & Tenant Overview 6
Surrounding Area 7
Location Overview 8
Property Photos 9
Surrounding Area Photos 10
Local Map 11
Regional Map 12
Demographics 13
Market Overview 14
Investment Highlights
Optimal Lease Structure ✓ 20-Year Triple Net (NNN) Lease with Zero Landlord Responsibilities✓ Attractive Rental Increases | 10.00% Every Five (5) Years✓ Four (4) Tenant Renewal Periods of Five (5) Years Each
Compelling Location Fundamentals✓ National Retail Presence | McDonald’s, Hardee’s, Discount Tire, Ace
Hardware, KFC, Marathon, BB&T, Dollar General Market, and Many More
✓ Less Than a Mile From Kentucky Kingdom, a 63-Acre Amusement Park With Rollercoasters and Hurricane Bay | Directly Next to Kentucky State Fair Grounds
✓ Strong Traffic Counts | Taylor Boulevard & Interstate 264 | Average 23,000 and 101,000 Vehicles Per Day Respectively
✓ Ideally Located in a Large Metropolitan Area| Located Less Than Three Miles Outside of Downtown Louisville
✓ Direct Proximity to Louisville International Airport | Almost 4 Million Passengers and Over 5 Billion Pounds of Cargo Travel Through Annually
✓ Strong Demographics | Population within a Five-Mile Radius is More Than 258,000
Strong Brand, Exceptional Operator✓ Wendy’s is the World’s Number Three Hamburger Chain in Terms of
Locations✓ There are Approximately 6,600 Franchise and Company-Operated
Wendy’s Restaurants in the United States and 30 Countries and U.S. Territories Worldwide
✓ Stonewall Road Restaurant Group (“SRRG”) is a Singularly Focused Restaurant Operations Firm, and One of Wendy’s Fastest-Growing and Most-Respected Franchisee Groups
✓ SRRG Currently Operates 45 Wendy’s Restaurants with Significant Plans for Expansion through a Robust M&A and Development Pipeline
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Representative Photo
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Financial Analysis & Investment SummaryPRICE: $895,040 | CAP RATE: 5.00% | RENT: $44,752
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PROPERTY DESCRIPTION
Property Wendy's
Property Address 3422 Taylor Blvd
City, State ZIP Louisville, KY 40215
Year Built 1978
Building Size (SF) 2,663
Lot Size (Acres) 0.45
Type of Ownership Fee Simple
THE OFFERING
Purchase Price $895,040
CAP Rate 5.00%
Annual Rent $44,752
LEASE SUMMARY
Tenant / GuarantorSRRG Kentucky LLC / SRRG Holdings LLC & Stonewall
Road Partners LLC
Original Lease Term 20 Years
Lease Commencement March 18, 2019
Lease Expiration March 18, 2039
Lease Term Remaining 19.5 Years
Lease Type Triple Net (NNN)
Roof & Structure Tenant Responsible
Options to Renew Four, Five-Year Option Periods
Rental Increases 10% Every Five Years
RENT SCHEDULE
Lease Year(s) Annual Rent Monthly Rent Rent Escalation
Year 1 $44,752 $3,729 -
Year 2 $44,752 $3,729 -
Year 3 $44,752 $3,729 -
Year 4 $44,752 $3,729 -
Year 5 $44,752 $3,729 -
Year 6 $49,227 $4,102 10.00%
Year 7 $49,227 $4,102 -
Year 8 $49,227 $4,102 -
Year 9 $49,227 $4,102 -
Year 10 $49,227 $4,102 -
Year 11 $54,150 $4,512 10.00%
Year 12 $54,150 $4,512 -
Year 13 $54,150 $4,512 -
Year 14 $54,150 $4,512 -
Year 15 $54,150 $4,512 -
Year 16 $59,565 $4,964 10.00%
Year 17 $59,565 $4,964 -
Year 18 $59,565 $4,964 -
Year 19 $59,565 $4,964 -
Year 20 $59,565 $4,964 -
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About Wendy’sWendy’s is an American international fast food chain
restaurant founded by Dave Thomas on November 15, 1969,
in Columbus, Ohio. The company moved its headquarters to
Dublin, Ohio on January 29, 2006. The Wendy's chain offers
made-to-order burgers and fries as well as such alternative
menu items as baked potatoes, chili, and salads. The chain is
known for its square hamburgers, sea salt fries and the Frosty,
a form of soft serve ice cream mixed with frozen starches. As
of 2018, Wendy’s is the world's number three hamburger chain
in terms of locations (only behind McDonald's and Burger
King), with approximately 6,600 franchise and Company-
operated restaurants in the United States and 30 countries and
U.S. territories worldwide.About Stonewall Road Restaurant GroupStonewall Road Restaurant Group (“SRRG”) is a singularly
focused restaurant operations firm, and one of Wendy’s
fastest-growing and most-respected franchisee groups.
Founded in 2017 by two friends and partners with deep
personal roots in franchising and experience building and
growing businesses, SRRG represents ‘the next generation’ of
Wendy’s franchisees. SRRG is led by Glen Brandeburg, a
former Wendy’s operations executive (SVP & DVP) with ~25
years of experience in the quick-service-restaurant space.
Operational expertise is further buoyed by >200 years of
collective experience in the Wendy’s system via SRRG’s
experienced multi-unit operations managers. The Company
currently operates 45 Wendy’s restaurants with significant
plans for expansion through a robust M&A and development
pipeline. SRRG’s headquarters is located in Dallas, TX.
Concept & Tenant Overview
Surrounding Area
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VA
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DTC
: 2
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The subject investment property is situated along Taylor Boulevard, which intersects withInterstate 264 less than a mile south from the property. Taylor Boulevard boasts averagedaily traffic counts of approximately 23,000 vehicles and Interstate 264, which surroundsthe city of Louisville and leads to Louisville International Airport brings an additional101,000 vehicles into the immediate area on average daily. There are more than 115,000individuals residing within a three-mile radius of the property and more than 258,000individuals within a five-mile radius.
The subject property benefits from being well-positioned in a densely populated area ofLouisville which is home to many national and local tenants, shopping centers,fairgrounds, theme parks and hospitality accommodations all within close proximity ofthis property. Major national tenants include: McDonald’s, Hardee’s, Discount Tire, AceHardware, KFC, Marathon, BB&T, Dollar General Market and several other quick servicerestaurants. Additionally, this Wendy’s is less than a mile away from LouisvilleInternational Airport, where almost 4 million passengers and over 5 billion pounds ofcargo travel through annually. This property also benefits from being situated within aone-mile radius of Kentucky Kingdom, a 63-acre park which includes a collection ofamusement rides and a water park named Hurricane Bay. The Kentucky State Fairgroundsare located directly next to Kentucky Kingdom, where over 600,000 visitors annually cometo 11 jam-packed days is full of concerts, competitions, livestock, exhibits, incredible eatsand plenty of surprises.
Louisville, Kentucky’s largest city, sits on the Ohio River along the Indiana Border.Louisville is the county seat of Jefferson County and has a metro population of roughly1,284,848. Louisville, since its origin, has been heavily linked to the shipping and cargoindustries, due to its location at the crossroads of three major interstate highways (I-64, I-65, and I-71). However, in the recent past, Louisville has expanded its economy acrossseveral industries, emerging as a major center for health care and medical sciences. It hasbeen central to advancements in heart and hand surgery, as well as cancer treatment. Infact, some of the earliest artificial heart and hand transplants were conducted inLouisville. In addition to a growing economy, Louisville is home to a very diverse culturalscene that includes international cuisine, fine and performing arts, and music. Today, thecity is known as the home of the Kentucky Derby, Kentucky Fried Chicken, the Universityof Louisville and its Louisville Cardinals athletic teams, Louisville Slugger baseball bats,and three of Kentucky’s six Fortune 500 companies. Its main airport, LouisvilleInternational Airport, is also the site of United Parcel Service’s (UPS) worldwide air hub.
Location Overview
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ADTC: 23,000
ADTC: 101,000
Property Photos
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Surrounding Area Photos
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Local Map
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Regional Map
NJ
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KENTUCKY
3 Miles 5 Miles 10 MilesPOPULATION
2023 Projection 114,714 257,787 657,910
2018 Estimate 115,475 258,672 650,815
2010 Census 112,590 251,130 629,713
2000 Census 115,856 258,378 621,983
INCOME
Average $45,475 $50,735 $62,825
Median $33,051 $35,400 $45,255
Per Capita $19,351 $21,680 $26,699
HOUSEHOLDS
2023 Projection 48,503 109,238 279,678
2018 Estimate 48,306 108,397 273,912
2010 Census 47,252 105,522 265,440
2000 Census 49,707 109,184 261,051
HOUSING
2018 $104,942 $117,591 $143,990
EMPLOYMENT
2018 Daytime Population 142,641 398,393 779,278
2018 Unemployment 7.78% 7.74% 5.81%
2018 Median Time Traveled 23 Mins 23 Mins 23 Mins
RACE & ETHNICITY
White 49.59% 53.75% 68.53%
Native American 0.05% 0.06% 0.05%
African American 41.34% 39.01% 24.11%
Asian/Pacific Islander 3.15% 2.26% 1.95%
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Demographics
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Market Overview
Employer Estimated # of EmployeesUPS 8,092Jewish Hospital Healthcare Services Inc 5,332University of Louisville 4,683Norton Healthcare Inc 4,278Baptist Hospital East 4,000California Square 3,900Ford 3,824Joseph Gilene President 3,500Jewish Hospital & St MA 3,452KFC 2,877Kroger 2,661Walmart 2,650
Major Employers
LouisvilleLouisville is a city that combines heritage with innovation, authenticity withoriginality, and quirkiness with friendliness, in a way that’s completely unique tothe region. The city is an entirely different type of Southern. From boundarypushing twists on Southern cuisine that has made the city one of the “10 BestNew Food Cities” in America to the one and only Urban Bourbon Experience,featuring the world’s only, city-wide trail filled with award-winning micro-distilleries, exhibits and craft cocktail destinations. Then discover one-of-a-kindattractions like the legendary Churchill Downs, Louisville Slugger Museum &Factory, and the Muhammed Ali Center. Louisville today is home to dozens ofcompanies and organizations across several industrial classifications. However,the underpinning of the city’s economy since its earliest days has been theshipping and cargo industries. Its strategic location at the Falls of the Ohio, and itsunique position in the central United States (within one day’s road travel to 60percent of the cities in the continental United States) make it a very practicallocation for the transfer of cargo along its route to other destinations.Additionally, the Louisville and Portland Canal and the Louisville and NashvilleRailroad have been important links in water and rail transportation. Louisville isalso a significant center of manufacturing, with two major Ford plants, and theheadquarters of major home appliance factory, GE Appliances. The city is also amajor center of the American whiskey industry, with about one-third of allbourbon in the nation coming from Louisville.
# of Employees based on 10-mile radius
Louisville, KY
EXCLUSIVE NET LEASE OFFERING
KY BROKER OF RECORD:Colby HaugnessMarcus & MillichapLic.# 242197