offering memorandum · t e r p k w y (4 0, 7 1 5 + v p d) g a t e p k w y (3 7, 6 8 0 + v p d) 187k...
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OFFERING MEMORANDUMMOE’S SOUTHWEST GRILL4710 TOWN CENTER PARKWAY, JACKSONVILLE, FL
NET LEASE CAPITAL MARKETS
Town Center Pkwy (40,715+ VPD)
Town Center Pkwy (40,715+ VPD)
Gate Pkwy (37,680+ VPD)
Gate Pkwy (37,680+ VPD)
187K SF
184K SF106K SF
Ravella at Town Center 306 Units
Portofina Multifamily320 Units
Trivoli Multifamily400 Units
Old Mills Branch169 Units
Big Island DriveBig Island Drive
The Colony at Deerwood336 Units
Town
Cente
r Pkw
y
Town
Cente
r Pkw
y
FL Hwy 202 (128,500 VPD)
FL Hwy 202 (128,500 VPD)
1.35M SF Corporate HQ
105K SF
22
INVESTMENT HIGHLIGHTS
HIGHLY PASSIVE ABSOLUTE TRIPLE NET GROUND LEASE | ZERO LANDLORD OBLIGATIONSThe Subject Property features an absolute triple net ground lease (leased fee interest) with zero landlord obligations, providing investors with the most passive lease structure available. Additionally, the ground lease structure offers the ability to purchase the Property at a significant discount to replacement cost.
LONG TERM LEASE | 17.7 YEARS REMAININGThe tenant signed a twenty (20) year lease in 2016 and has approximately 17.7 years of term remaining, with four (4), five (5) year options to extend.
FIXED RENTAL INCREASES EVERY FIVE (5) YEARS | HEDGE AGAINST INFLATIONThe Lease features attractive rental increases of 12.90% in year 6 (Dec-2022) and 10% in years 11 & 16 of the initial term, providing long term income growth and a hedge against inflation.
RAPIDLY EXPANDING FAST CASUAL MEXICAN RESTAURANT CONCEPT | STRONG 23-UNIT FRANCHISEEMoe’s Southwest Grill is a rapidly expanding Fast Casual Mexican Restaurant concept that has grown to more than 700 stores in 43 states. The company is part of the FOCUS Brands family of food service brands which includes more than 6,000 retail locations. The Subject Property is operated and guaranteed by Welcome to Moe’s Inc., a 23-unit franchisee of Moe’s Southwest Grills in four Florida markets, including 12 in the Jacksonville MSA.
STRONG STORE SALES | TOP TIER PERFORMANCE AMONG ACTIVE MOE’S LOCATIONSThe Subject Property has posted sales in excess of $1.5M annually since its opening in 2017, which nearly places in the top quartile for active Moe’s Southwest Grill locations. This is well above the Moe’s company-wide average of $1.1M annually, demonstrating the strength of the operator and the location.
DENSE & AFFLUENT LOCATION | HIGHLY VISIBLE AND EASILY ACCESSIBLE SITE | CLOSE PROXIMITY TO MAJOR EMPLOYERS & UNIVERSITYAverage Household Incomes within 1 mile of the Subject Property exceed $100,000 and within 5 miles there are 176,294 people and 76,460 households with an average household income of $77,830. Nearby major corporate employers include Florida Blue Cross / Blue Shield’s 1.35 MM SF Corporate HQ (7,000 employees in JAX), Deutsche Bank, Merrill Lynch, Comcast and Johnson & Johnson. Located 1.5 miles northeast of Moe’s is University of North Florida, home to more than 16,000 students.
DYNAMIC, DOMINANT AND GROWING TRADE AREA | EXTENSIVE NEARBY DEVELOPMENT ACTIVITY Moe’s is strategically positioned in the trade area, with freeway access off the Town Center Pkwy exit from Interstate 295 (104,500 VPD), and Gate Pkwy exit off Florida Highway 202 (128,500 VPD) allowing for easy access. The Subject Property is well positioned adjacent to the 1.3 M+ SF St. Johns Town Center Super Regional Mall which features 160+ stores. Additionally, there are more than 2,500 existing/under construction or planned multi-family units within close proximity of the subject property, providing additional draw to Moe’s.
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Town Center Pkwy (40,715+ VPD)
Town Center Pkwy (40,715+ VPD)
Gate Pkwy (37,680+ VPD)
Gate Pkwy (37,680+ VPD)
187K SF
184K SF106K SF
Ravella at Town Center306 Units Built 2018
Portofina Multifamily320 Units
Trivoli Multifamily400 Units
Old Mills Branch169 Units
Big Island DriveBig Island Drive
The Colony at Deerwood336 Units
Town
Cen
ter P
kwy
Town
Cen
ter P
kwy
FL Hwy 202 (128,500 VPD)
FL Hwy 202 (128,500 VPD)
1.35M SF Corporate HQ
105K SF
Built 2018
Under Construction
55
EXECUTIVE SUMMARY
Address 4710 Town Center Parkway Jacksonville, FL 32246
Tenant/Gurantor Moe’s Southwest Grill/ Welcome to Moe’s Inc.
Zoning/Use PUD / Fast Food Restaurant / Drive-Thru
Acreage (SF) 0.14 AC (6,130 SF)
Rentable Building Area (SF) 2,830
Expense Structure NNN Ground Lease
Rent Increases 10%+ Every Five (5) Years
Commencement Date November 15, 2017
Current Term Expiration November 30, 2037 (17.7 Years Remaining)
Option Periods 4 (5-Year) with Increases
Ownership Interest Leased Fee
PRICE/CAP RATE
Price (PSF) $2,583,333 ($913 PSF)
Cap Rate 6.00%
Annual NOI $155,000
6
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LEASE PROPERTY DETAILS
Rentable Building Area 2,830
Acreage (SF) 0.14 AC (6,130 SF)
Year Built 2017
APN 167727-0084
RENT SCHEDULEANNUAL RENT RENT INCREASE %
Years 1-5 $155,000.00 -
Years 6-10 $175,000.00 12.90%
Years 11-15 $192,500.00 10.00%
Years 16-20 $211,750.00 10.00%
Option 1 $213,925.00 1.03%
Option 2 $235,317.50 10.00%
Option 3 $258,849.25 10.00%
Option 4 $284,734.18 10.00%
LEASE ABSTRACT
Address4710 Town Center Parkway
Jacksonville, FL 32246
Tenant/GuarantorMoe’s Southwest Grill/ Welcome to Moe’s Inc.
Commencement Date November 15, 2017
Current Term Expiration November 30, 2037 (17.7 Years Remaining)
Option Periods 4 (5-Year)
Annual Rent (PSF) $155,000 ($54.77/SF/Yr)
Rent Increases See Rent Schedule
Lease Structure NNN Ground Lease
Landlord Responsibilities None
CAM Tenant Responsible
Utilities Tenant Responsible
Taxes Tenant Responsible
Insurance Tenant Responsible
LEASE ABSTRACT / PROPERTY DETAILS
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PARCEL OVERVIEW
Parcel: 167727-0084 Subject Property
Town Center Pkwy (40,715+ VPD)
Ravella at Town Center306 Units Built 2018
Built 2018
99
PONTE VEDRA BEACH TPC SAWGRASS
DOWNTOWN JAX
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JACKSONVILLE QUICK FACTS:#1 - CITY FOR TALENT ATTRACTION (EMSI)#4 - BEST TAX CLIMATE IN THE U.S. (Tax Foundation)
- No Corporate Franchise Tax- No Personal Income Tax- No Taxes on Inventories- No Taxes on Foreign Income- No Taxes on Manufacturing Equipment
#5 - FASTEST-GROWING CITY IN AMERICA (FORBES)$83.19 BILLION - GDP OF JACKSONVILLE MSA (FRED 2018)
Jacksonville (JAX), Florida, is home to over 1.76 million residents and offers a superior quality of life in a business conscious city. Jacksonville is poised for continued growth with a low median age of 38.8 years for its 845,000 person workforce. Net developments such as Nocatee will add an additional 12,000 master planned homes, 1 million square feet of retail space, and 4 million square feet of office space and 9 additional schools.
Jacksonville is recognized as “America’s Logistics Center”, with same-day southeast access to 61+ million consumers via 3 railroads, 3 major interstates (75,10, and 95). In 2018, Jacksonville’s 3 major public marine terminals handled cargo totaling 10.4 million tons. Furthermore, Jacksonville recently spent $300 million overhauling the Jacksonville International Airport (JAX) to accommodate 100+ daily flights.
Jacksonville, FL prides itself on a competitive cost of living, highly skilled talent, and premium quality of life. The region is home to 5 Fortune 1000, 3 Fortune 500 companies and 80+ National or Divisional Headquarters.
Top Employers:
1) Baptist Health - 11,000 Employees, 2) Bank of America - 8,000, 3) Florida BlueCross / Blue Shield - 7,000 Employees, 4) Mayo Clinic - 6,000 Employees, 5)Southeastern Grocers - 5,700 Employees
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DEMOGRAPHICS (2019) 1 MI 3 MI 5 MITotal PopulationTotal Population 5,508 64,195 176,294
HouseholdsHouseholds 2,594 28,612 76,460
Avg. Household IncomeAvg. Household Income $100,765 $81,446 $77,830Sources: JAX Economic Development Commission, FRED
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TENANT PROFILEMoe’s Southwest Grill is an expanding Fast Casual Mexican Restaurant concept that has added 325 locations within the last 5 years. Moe’s now operates 714+ locations across 43 US states, with an additional 160 coming soon. Together, FOCUS Brands and Moe’s Southwest Grill bring their years of franchising experience to support every facet of the franchise
business including: Construction & Design, Real Estate, Training Systems, Policy & Procedures, Food Technology & Training, Operations, Supply Chain, Technology, Consumer Analytics and Marketing. Additionally, Moe’s fast casual Mexican restaurant concept differentiates itself by offering a Southwestern slant on every made-to-order meal, prepared in a fast casual setting with fresh ingredients daily. Each day, the Moe’s system cooks up approximately 60K lbs of chips, prepares 40K lbs of salsa, 25K lbs of tomatoes, and 10K lbs of peppers and onions.
Moe’s parent FOCUS Brands is a leading developer of global multi-channel food service brands, these brands include: Auntie Anne’s, Carvel, Cinnabon, Jamba, Moe’s Southwest Grill, McAlister’s Deli, Schlotzsky’s, and Seattle’s best Coffee in certain international market. Through it’s affiliate brands, FOCUS is the franchiser and operator of more than 6,000 locations.
The Subject Property is operated by Welcome to Moe’s Inc., a 23 unit franchisee of Moe’s Southwest Grill. The franchisee focuses on the Florida market with 23 current locations in the Jacksonville (12), Volusia (4), and Brevard (3), and Gainsville (4) markets.
MOE’S SOUTHWEST GRILL
Total Moe’s Locations 714 (In 43 states)
Welcome to Moe’s Inc. Locations (Guarantor) 23 (12 In JAX)
2019 Franchise 500 Ranking #149Sources: moes.commoesfranchising.com, FocusBrands.com
For more information, please contact:
NET LEASE CAPITAL MARKETS
MATT BERRES Executive Managing [email protected]
SAMER [email protected]
KARICK [email protected]
JENI TRANMarketing [email protected]
18401 Von Karman Ave., Suite 150 | Irvine, CA 92612
BROKER OF RECORDBERT SANDERSVice Chairman3424 Peachtree Road NE, Suite 800Atlanta, GA, [email protected]