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 MEMORANDUM MOE’S SOUTHWEST GRILL 4710 TOWN CENTER PARKWAY, JACKSONVILLE, FL NET LEASE CAPITAL MARKETS T o w n C enter Pkwy ( 40, 715+ VPD) T o w n C enter Pkwy ( 40, 715+ VPD) Gate Pkwy ( 37, 680+ VPD) Gate Pkwy ( 37, 680+ VPD) 187K SF 184K SF 106K SF Ravella at Town Center 306 Units Portofina Multifamily 320 Units Trivoli Multifamily 400 Units Old Mills Branch 169 Units Bi g I sl and Dri ve Bi g I sl and Dri ve The Colony at Deerwood 336 Units T o w n C e nter P k w y T o w n C e nter P k w y FL Hwy 202 (128,500 VPD) FL Hwy 202 (128,500 VPD) 1.35M SF Corporate HQ 105K SF

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Page 1: 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 SF 184K SF 106K SF Ravella at Town Center ... The company is part of the FOCUS

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

Page 2: 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 SF 184K SF 106K SF Ravella at Town Center ... The company is part of the FOCUS

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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.

Page 3: 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 SF 184K SF 106K SF Ravella at Town Center ... The company is part of the FOCUS

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Page 4: 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 SF 184K SF 106K SF Ravella at Town Center ... The company is part of the FOCUS

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

Page 5: 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 SF 184K SF 106K SF Ravella at Town Center ... The company is part of the FOCUS

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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

Page 6: 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 SF 184K SF 106K SF Ravella at Town Center ... The company is part of the FOCUS

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Page 7: 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 SF 184K SF 106K SF Ravella at Town Center ... The company is part of the FOCUS

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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

Page 8: 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 SF 184K SF 106K SF Ravella at Town Center ... The company is part of the FOCUS

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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

Page 9: 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 SF 184K SF 106K SF Ravella at Town Center ... The company is part of the FOCUS

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PONTE VEDRA BEACH TPC SAWGRASS

DOWNTOWN JAX

Page 10: 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 SF 184K SF 106K SF Ravella at Town Center ... The company is part of the FOCUS

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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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Page 12: 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 SF 184K SF 106K SF Ravella at Town Center ... The company is part of the FOCUS

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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

Page 13: 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 SF 184K SF 106K SF Ravella at Town Center ... The company is part of the FOCUS

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]