roy rogers - loopnet · 2019. 3. 25. · roy rogers has been established in this location for over...
TRANSCRIPT
Offering Memorandum
ROY ROGERS39 State Route 31 • Flemington, NJ 08822
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and
should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified
information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due
diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the
future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or
asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any
tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be
reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these
matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to
verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or
name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,
service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
ROY ROGERS
Flemington, NJ
ACT ID Z0281035
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N E T L E A S E D D I S C L A I M E R
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will
not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee,
warranty or representation whatsoever about the accuracy or completeness of any information provided.
As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before
completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus &
Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.
Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance
of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to
your satisfaction with the suitability of the property for your needs.
Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal
and financial 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
a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based
on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any
guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in
whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting
his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a
replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential
replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost,
expense, or liability arising out of your investigation and/or purchase of this net leased property.
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TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01Offering Summary
Location Overview
Regional and Local Map
Aerial Photo
FINANCIAL ANALYSIS 02
Acquisition Financing
MARKET OVERVIEW 03
Demographic Analysis
ROY ROGERS
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INVESTMENT
OVERVIEW
OFFERING SUMMARY
Price $1,410,000
Net Operating Income $88,000
Capitalization Rate – Current 6.24%
Price / SF $471.57
Rent / SF $29.43
Lease Type Absolute Net
Gross Leasable Area 2,990 SF
Year Built / Renovated 2015 / 2008
Lot Size 0.67 acre(s)
#
EXECUTIVE SUMMARY
OFFERING SUMMARY
#
FINANCING
Down Payment All Cash
Net Cash Flow 6.24% / $88,000
Cash on Cash Return 6.24%
Total Return 6.24% / $88,000
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OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER# OF EMPLOYEES
*
HUNTERDON HEALTH CARE 1,950
Hunterdon Medical Center 1,016
Rgr Industries 500
Wakefern Food Corp 400
DEER-PATH FAMILY YMCA 350
Wbm International 300
Johanna Foods Inc 277
Human Services New Jersey Dept 256
Grom 250
Healthquest Central Jersey LLC 250
3M 200
Home Depot The 200
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2018 Estimate Pop 7,858 22,060 34,456
2010 Census Pop 7,924 22,275 34,825
2018 Estimate HH 3,557 8,427 12,862
2010 Census HH 3,554 8,437 12,904
Median HH Income $69,297 $100,982 $108,852
Per Capita Income $49,008 $54,493 $57,439
Average HH Income $107,632 $142,129 $153,503
* # of Employees based on 5 mile radius
ROY ROGERS
OFFERING SUMMARY
20 Year Absolute NNN Lease (Over 16 Years Remaining)
Two -Five Year Options with Ten Percent Increase Every 5 Years
Next Increase in April 2025
Franchisee and Personal Guaranty (12 Month Rolling)
High Traffic Retail Hub with 48,000 + VPD at Intersection of Route
31 & Route 202
Average Household Income of $151,755 in 5-mile Radius
INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to exclusively list for sale a 2,990 square foot single tenant Roy Rogers located in Flemington, (Hunterdon
County) New Jersey. Located on 0.67 acres, Roy Rogers has 16+ years remaining on their absolute NNN lease. There are ten percent rental
increases every five years. The next increase will occur in April, 2025. Roy Rogers has been established in this location for over three years
and the lease is personally guaranteed by the business operator along with the franchisee.
The subject property is well positioned on Route 31, allowing for easy accessibility to numerous large national tenants and retailers such as
Costco, ShopRite, Burlington Coat Factory and numerous large retail shopping centers all well within a quarter mile from the subject
property. Roy Rogers is positioned near the intersection of Route 31 and Route 202, which has more than 48,000 vehicles passing by per
day. There are various retail and institutional facilities all within a one mile radius. The trade area has a large student population with
Hunterdon Central Regional High School and Hunterdon County Polytech less than a quarter mile from Roy Rodgers.
Flemington is a borough located in Hunterdon County, New Jersey. The subject property is approximately 57 miles southwest of New York
City, 50 miles northeast of Philadelphia, PA, and 25 miles northeast of Trenton, NJ. Flemington is the county seat for Hunterdon County.
Within a five-mile radius of Flemington, the average household income is $151,755 among the 34,260 individuals who resides within a five-
mile radius of the subject property.
The asking price of $1,410,000 represents a 6.24 percent cap rate.
INVESTMENT OVERVIEW
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12
TENANT PROFILES
ROY ROGERS
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Roy Rodgers
Roy Rogers is an American fast food chain specializing in burgers, fried chicken, and roast beef
sandwiches. Roy Rogers headquarters are in Frederick, MD along with 50+ retail locations in the
Mid-Atlantic and Northeastern regions of the United States. The first Roy Rogers was founded by
the Marriott Corporation in 1968 in the town of Falls Church, Virginia. Roy Rogers Franchise
Company, LLC is privately owned by Plamondon Companies, the sons of Peter Plamondon Sr,
who was head of the restaurant
General Information
Tenant Name Roy Rodgers
Website www.royrogers.com
Parent Company Plamondon Companies
Headquartered Frederick, MD
Rentable Square Feet 2,990 SF
Percentage of RBA 100.00%
Lease Commencement 4/7/2015
Lease Expiration 4/6/2035
No. of Locations 54+
#
CLOSE PROXIMITY TO:
39 State Route 31, Flemington, NJ 08822
20 Year Absolute NNN Lease (16+ Years
Remaining)
2-5 Year Options with 10% Increase Every 5 Years
Next Increase in April 2025
Franchisee & Personal Guaranty (12 Month Rolling)
Average Household Income of $151,755 in 5-Mile
Radius
48,000+ VPD at Intersection of Route 31 & Route
202
Flemington is a borough located in Hunterdon County,
New Jersey. The subject property is approximately 57
miles southwest of New York City, 50 miles northeast of
Philadelphia, PA, and 25 miles northeast of Trenton, NJ.
Flemington is the county seat for Hunterdon County. The
subject property is located within the borough’s
Community Business Zone which includes a number of
large scale retail centers. The major roadways that cut
through the borough are U.S. Route 202, Route 12 and
31 along with County Route 523. Trans-Bridge Lines
provides bus service for Flemington to destinations such
as: Doylestown/Bethlehem, PA; Newark Liberty
International Airport; John F. Kennedy International
Airport; and Port Authority Bus Terminal in Midtown,
Manhattan. Local bus service is provided by Hunterdon
County’s “Flemington Shuffle” as well as the Cross
County Service, which offers demand-response service
to all municipalities in Hunterdon County.
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEROY ROGERS
PRICING AND VALUATION MATRIX
PROPERTY NAMEROY ROGERS
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LOCATION OVERVIEW
#
39 State Route 31, Flemington, NJ 08822
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEROY ROGERS
PRICING AND VALUATION MATRIX
PROPERTY NAMEROY ROGERS
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REGIONAL AND LOCAL MAP
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Subject
Property
Walgreens
Hunterdon Central Regional
High School
Hunterdon County
Polytech
Flemington Mall
The Shoppes @ Flemington
Hunterdon Shopping Center
Flemington Circle Shopping Center
Hunter Hills
Apartments
180 Units
Liberty Village Outlets
AERIAL PHOTO
ROY ROGERS
PROPERTY PHOTO
ROY ROGERS
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PROPERTY PHOTO
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PROPERTY PHOTO
ROY ROGERS
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PROPERTY PHOTO
ROY ROGERS
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PROPERTY PHOTO
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PROPERTY PHOTO
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PROPERTY PHOTO
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PROPERTY PHOTO
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Marcus & Millichap closes
more transactions than any
other brokerage firm.
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ROY ROGERS
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PROPERTY PHOTO
ROY ROGERS
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FINANCIAL
ANALYSIS
#
PROPERTY SUMMARY
OFFERING SUMMARY
#
NOTES: Personal Guarantee – 12 Month Rolling
ROY ROGERS
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OFFERING SUMMARY
MARCUS & MILLICHAP CAPITAL CORPORATION
CAPABILITIES
MMCC—our fully integrated, dedicated financing arm—is committed to
providing superior capital market expertise, precisely managed execution, and
unparalleled access to capital sources providing the most competitive rates and
terms.
We leverage our prominent capital market relationships with commercial banks,
life insurance companies, CMBS, private and public debt/equity funds, Fannie
Mae, Freddie Mac and HUD to provide our clients with the greatest range of
financing options.
Our dedicated, knowledgeable experts understand the challenges of financing
and work tirelessly to resolve all potential issues to the benefit of our clients.
National platform
operating
within the firm’s
brokerage
offices
$6.24 billion
billion total
national
volume in 2018
Access to
more capital
sources than
any other firm
in the industry
Optimum financing solutions
to enhance value
Our ability to enhance
buyer pool by expanding
finance options
Our ability to enhance
seller control
• Through buyer
qualification support
• Our ability to manage buyers
finance expectations
• Ability to monitor and
manage buyer/lender
progress, insuring timely,
predictable closings
• By relying on a world class
set of debt/equity sources
and presenting a tightly
underwritten credit file
WHY MMCC?
Closed 1,678
debt and equity
financings
in 2018
ACQUISITION FINANCING
ROY ROGERS
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MARKET
OVERVIEW
PROPERTY NAME
MARKETING TEAM
ROY ROGERS
DEMOGRAPHICS
Source: © 2018 Experian
Created on March 2019
POPULATION 1 Miles 3 Miles 5 Miles
2023 Projection
Total Population 7,984 22,855 35,808
2018 Estimate
Total Population 7,858 22,060 34,456
2010 Census
Total Population 7,924 22,275 34,825
2000 Census
Total Population 7,301 20,231 32,144
Current Daytime Population
2018 Estimate 12,052 28,247 36,539
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
2023 Projection
Total Households 3,666 8,815 13,471
2018 Estimate
Total Households 3,557 8,427 12,862
Average (Mean) Household Size 2.37 2.62 2.66
2010 Census
Total Households 3,554 8,437 12,904
2000 Census
Total Households 3,308 7,557 11,698
Occupied Units
2023 Projection 3,666 8,815 13,471
2018 Estimate 3,811 8,941 13,652
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
2018 Estimate
$150,000 or More 19.49% 30.49% 34.39%
$100,000 - $149,000 16.38% 19.97% 19.71%
$75,000 - $99,999 10.11% 10.37% 10.11%
$50,000 - $74,999 18.85% 14.33% 13.30%
$35,000 - $49,999 11.44% 8.42% 7.62%
Under $35,000 23.73% 16.43% 14.88%
Average Household Income $107,632 $142,129 $153,503
Median Household Income $69,297 $100,982 $108,852
Per Capita Income $49,008 $54,493 $57,439
HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure
$73,680 $84,824 $87,401
Consumer Expenditure Top 10 Categories
Housing $23,291 $26,509 $27,178
Shelter $14,986 $16,922 $17,338
Transportation $10,331 $11,972 $12,459
Personal Insurance and Pensions $7,479 $9,550 $10,030
Food $6,649 $7,757 $8,043
Health Care $4,917 $5,855 $6,052
Utilities $4,481 $5,191 $5,370
Entertainment $2,492 $2,884 $2,976
Education $2,460 $3,144 $3,298
Gifts $1,958 $2,365 $2,515
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Population By Age
2018 Estimate Total Population 7,858 22,060 34,456
Under 20 21.57% 23.41% 23.43%
20 to 34 Years 20.59% 16.56% 15.34%
35 to 39 Years 7.12% 5.76% 5.31%
40 to 49 Years 14.04% 14.25% 14.06%
50 to 64 Years 21.90% 24.50% 25.85%
Age 65+ 14.78% 15.51% 16.00%
Median Age 40.56 43.60 45.00
Population 25+ by Education Level
2018 Estimate Population Age 25+ 5,670 15,553 24,349
Elementary (0-8) 3.52% 2.26% 1.77%
Some High School (9-11) 4.90% 3.13% 2.82%
High School Graduate (12) 23.27% 20.01% 19.67%
Some College (13-15) 18.79% 16.71% 16.14%
Associate Degree Only 6.69% 7.29% 7.38%
Bachelors Degree Only 24.59% 29.22% 29.97%
Graduate Degree 17.57% 20.89% 21.79%
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Income
In 2018, the median household income for your selected geography is
$108,852, compare this to the US average which is currently $58,754.
The median household income for your area has changed by 37.49%
since 2000. It is estimated that the median household income in your
area will be $126,906 five years from now, which represents a change
of 16.59% from the current year.
The current year per capita income in your area is $57,439, compare
this to the US average, which is $32,356. The current year average
household income in your area is $153,503, compare this to the US
average which is $84,609.
Population
In 2018, the population in your selected geography is 34,456. The
population has changed by 7.19% since 2000. It is estimated that the
population in your area will be 35,808.00 five years from now, which
represents a change of 3.92% from the current year. The current
population is 48.53% male and 51.47% female. The median age of
the population in your area is 45.00, compare this to the US average
which is 37.95. The population density in your area is 438.00 people
per square mile.
Households
There are currently 12,862 households in your selected geography.
The number of households has changed by 9.95% since 2000. It is
estimated that the number of households in your area will be 13,471
five years from now, which represents a change of 4.73% from the
current year. The average household size in your area is 2.66 persons.
Employment
In 2018, there are 20,883 employees in your selected area, this is also
known as the daytime population. The 2000 Census revealed that
75.14% of employees are employed in white-collar occupations in
this geography, and 24.77% are employed in blue-collar occupations.
In 2018, unemployment in this area is 2.93%. In 2000, the average
time traveled to work was 35.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
86.60% White, 2.14% Black, 0.15% Native American and 6.61%
Asian/Pacific Islander. Compare these to US averages which are:
70.20% White, 12.89% Black, 0.19% Native American and 5.59%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 9.41% of the current year
population in your selected area. Compare this to the US average of
18.01%.
PROPERTY NAME
MARKETING TEAM
ROY ROGERS
Housing
The median housing value in your area was $434,714 in 2018,
compare this to the US average of $201,842. In 2000, there were
9,364 owner occupied housing units in your area and there were
2,334 renter occupied housing units in your area. The median rent at
the time was $802.
Source: © 2018 Experian
DEMOGRAPHICS
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