rally’s€¦ · black ate artners ffering emorandum 1 rally’s offering memorandum black gate...

Black Gate Partners Offering Memorandum 1

Rally’s

Offering Memorandum

Black Gate Partners199 S. High St., Suite 100

Columbus, OH 43215

2110 Morse RoadColumbus, OH 43229

Kevin James, [email protected] 358.2082

Tim [email protected]

614 358.2089

Rally’s

Representative Photo


Rally’s

Confidentiality & Disclaimer Statement

This Offering Memorandum contains select information pertaining to the business and affairs of the Rally’s located at 2110 Morse Road, Columbus, OH 43229 which has been prepared by Black Gate Partners.

This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Black Gate Partners. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Black Gate Partners from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Black Gate Partners you agree:

1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner expressly reserves the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of Rally’s, or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Owner or Black Gate Partners or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.


Rally’s

Table of Contents

Executive SummaryOffering SummaryInvestment HighlightsMarket SummaryTerms

Property OverviewSite Plan

Property Photos

Aerial Map

Financial OverviewRent Roll & Financials

Tenant Analysis

Market OverviewDemographics

Demographic Lifestyles

Columbus, OH MSA

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Exclusively Listed By:

Kevin James ccim

Principal614 [email protected]

Tim MalyPrincipal614 [email protected]


Red Gate Partners Offering Memorandum 4

Rally’s

4Executive Summary



Rally’s

The Offering Executive Summary

OverviewAddress: 2110 Morse Road Columbus, OH 43229Land Area: Approximately 0.75 acresAccess: Part of a center with 5 access pts. 1 at traffic lightOccupancy: 100%Vacancy: 0%Year Built: 2018 - estimated September completionZoning: Z17-023, Commercial, CPD, 11/29/2017, H-35Parcel: 010-291879-00Signage: TBD - tenant has right to install pylon signTraffic Count: 33,160 VPD

Black Gate Partners, on behalf of ownership as its exclusive advisor, is pleased to bring to market the sale of a 0.75 acre Ground Lease to a newly constructed 1,000 SF Rally’s, an outparcel to Morse Centre in Columbus, Ohio. Located on Morse Road, the Rally’s has great visibility to over 33,000 daily commuters. The 231,589 SF Morse Centre that the Rally’s is an outparcel to is 100% occupied and a true community center; reflecting the draw of the community and the value of the Ground Lease. The Ground Lease is a true NNN lease with Rally’s; there are no Operating Expenses. The initial term is fifteen years with two scheduled rent increases and three-five year options.

Price: $1,000,000



Rally’s

Tenant SummaryTenant Sq Ft Annual Base Rent Expiration Options Increases Option TermsRally’s 1,000 $55,000 2/28/2032 3-5 Year YR 6-10: $60,500 Option 1: $73,205.00/YR YR 11-15: $66,500 Option 2: $80,525.50/YR Option 3: $88,578.05/YR

Investment Highlights Executive Summary

Financial SummaryBase Rental Income: $55,000

Taxes: Tenant Pays

Insurance: Tenant Pays

CAM: Tenant Pays

Net Operating Income: $55,000

Class-A ConstructionNewly constructed and executed ground lease with national fast food restaurant chain Rally’s. Franchise has more than 784 locations across the Southeast and Midwest.

Hands-Off ManagementAll operating expenses are allocated to the tenant.

Stable Lease AgreementFifteen year original term with two scheduled rent increases and multiple options.

Great LocationLocated on Morse Road in a densely populated corridor of Columbus between Karl Road and Cleveland Avenue, this section of Morse Road acts as a major artery with a strong traffic count of 33,160 daily commuters.

Drivers to AreaThe Rally’s sits in front of a fully leased, 231,000+ SF community center. Other draws nearby include a new Kroger and Menards.


Rally’s

Market Summary Executive Summary

Demographic Overview 1 Mile 3 Mile 5 Mile

2018 Population: 21,816 138,928 336,670

2018 Housholds: 10,068 63,909 151,339

2018 Average HH Income: $45,849 $57,651 $65,177

Traffic Count Vehicles Per Day

Morse Rd. 33,160 VPD



Rally’s

All investors willing to make an offer are invited to participate.

All letters of intent are to be submitted to:

Kevin James ccim

Principal614 [email protected]

Terms of Sale Process Executive Summary

The Owner has authorized Black Gate Partners (“Black Gate”) to exclusively market Rally’s for sale. The Owner makes no representation or warranties. This is an “as is” sale.

Sale ProcessRally’s is being offered to qualified investors according to the schedule below:

Distribution of Initial Offering Materials ...............8/13/2018Offers Accepted ...............AnytimeAsking Price ...............$1,000,000

Following receipt of an offer, Owners will negotiate with the prospective purchaser(s), which in the Owner’s sole judgment, represents the best combination of price, terms and ability to perform. The Owner reserves the right to reject any offer for any reason.

Cooperating BrokersRally’s is being marketed to principals. Black Gate will cooperate with other licensed brokers to ensure the highest sale price is generated for the Owner, provided:

Black Gate accepts the cooperating broker’s written registration of a specific prospect

The cooperating broker and the party they represent sign a confidentiality agreement

The cooperating broker agrees to a 2.5% co-op fee

Tim MalyPrincipal614 [email protected]


Property Overview

Rally’s

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Rally’s

Site Plan Property Overview

Nationwide Children’s Hospital

7-11

Gillie Recreation Center

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6543

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2523 -2420 21 22

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Rally’s

Property Photos Property Overview


Rally’s

Aerial Map Property Overview

Morse Rd. 33,160 VPD


Rally’s

Aerial Map Property Overview


Financial Overview

Rally’s

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Rally’s

Rent Roll & Financial Summary Financial Overview

Tenant Start Date End Date Sq. Ft. % Of GLA $/SF Monthly Rent Annual Rent Increases Options Option Terms

1 Rally’s - 2/28/2032 1,000 100% $55.00 $4,583.00 $55,000.00 Years 6-10: $60,500 3-5 year Option 1: $73,205.00/YR

Years 11-15: $66,500 Option 2: $80,525.50/YR

Option 3: $88,578.05/YR

Income & Expenses

Gross Scheduled Income $55,000.00

Tenant Reimbursements

Effective Gross Income $55,000.00

Less Operating Expenses Paid by tenant

Net Operating Income $55,000.00

Pricing Analysis

Price $1,000,000

Down Payment $250,000

Down Payment % 25%

Loan Amount $750,000

Cap Rate 5.50%

Net Operating Income $55,000

Loan Payment $51,889

Cash Flow $3,111

Cash/Cash 1.24%

DSCR 1.06

Amortization 25

LTV 75%

Loan Term 10 years

Rate 4.75%


Rally’s

Tenant Analysis Financial Overview

Checkers Drive-In Restaurants, Inc. is one of the largest chains of double drive-thru restaurants in the United States. The company operates Checkers and Rally’s restaurants in 28 states and the District of Columbia. They specialize in hamburgers, hot dogs, french fries and milkshakes.

Originally separate companies, Checkers and Rally’s merged in 1999. The Checkers name remains in the Southeast as well as the Northeast while the Rally’s name remains used in the Midwest as well as California.

Tenant Lease AbstractHeadquarters: Tampa, FL# of Locations: 784+Corporate: Checkers Drive-In Restaurants, Inc.GLA: 1,000 SFTenant Since: 2018 (estimated September opening)Lease Expiration: 2/28/2032Current Rent (Annual): $55,000Options: 3 - 5 YearCAM Cap: NoneProperty Tax Cap: NonePercentage Rent: NoneEarly Termination: None

Tenant Base Rent Schedule Annual Monthly $/SF Increases OptionsCurrent: $55,000.00 $4,583.00 $55.00 YR 6-10: $60,500 3-5 years YR 11-15: $66,500



Market Overview

Rally’s

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Rally’s

2018 Demographics Market Overview

Population

21,816 138,928 336,6701 Mile 3 Mile 5 Mile

Median Age

32.5 36.0 33.01 Mile 3 Mile 5 Mile

Number of Housing Units

10,068 63,909 151,3391 Mile 3 Mile 5 Mile

Per Capita Income

$18,218 $24,390 $27,4411 Mile 3 Mile 5 Mile

Average Household Income

$45,849 $57,651 $65,1771 Mile 3 Mile 5 Mile

Total Businesses

412 3,873 11,1461 Mile 3 Mile 5 Mile

Total Employees

6,356 50,584 204,7721 Mile 3 Mile 5 Mile


Rally’s

Nearby Major Attractions Market Overview

Easton Town Center10 minutes (3.0 miles) away

Downtown Columbus17 minutes (10.9 miles) away

The Ohio State University16 minutes (8.2 miles) away

Columbus International Airport18 minutes (9.6 miles) away

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Rally’s

Columbus, OH Market Overview

Columbus, OH founded in 1812 and the state’s capital in 1816, is the Midwest epicenter and 3rd most populous state capital behind Phoenix, AZ and Austin, TX. Known for its diversity, strong workforce, education, food, locality, and strong economy, Columbus is a growing powerhouse. In 2016 the city’s population was an estimated 860,090 with the world’s 3rd largest metropolitan population of 2,021,632. Home to one of the largest college campuses in the nation, The Ohio State University. In 2009 OSU ranked 19th in the country for best public university. As well as the OSU Buckeye sports teams, Columbus is home to the NHL Blue Jackets team.

Nicknamed “Ohio City” and “Arch City”, Columbus has grown upon these roots. The city was nicknamed “Arch City” for all of the metal arches around the city above its major streets. These arches were used for electric transportation. One of these prominent archway areas is located in the bustling Short North area. Lined with hundreds of local restaurants, bars, and retail, the Short North is a heavily visited and desired area of Columbus.

Key Facts

Largest populous city in Ohio (860,090)14th Largest in the U.S.

3rd Largest Metropolitan Area (2,021,632)

2013 Forbes ranked Columbus class “A” for top cities for business in U.S.

Food services based here: Wendy’s, Bob Evans, White Castle, etc.

Headquarter location for: Nationwide Mutual Insurance Company,American Electric Power, L Brands, Big Lots and Cardinal Health

Top Columbus Employers Approximate #

JPMorgan Chase & Co. 20,475

Nationwide 13,400

Honda of America Mfg., Inc. 10,701

L Brands Inc. 7,800

Cardinal Health 5,058

Huntington Bancshares Inc. 5,052

Offering Memorandum

Rally’s2110 Morse RoadColumbus, OH 43229

Kevin James ccim

Principal

614 374.8072 Mobile614 358.2082 [email protected]

Black Gate Partners199 S. High St., Suite 100Columbus, OH 43212

Tim MalyPrincipal

614 318.5969 Mobile614 358.2089 [email protected]


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