1400 W MAIN ST | LOWELL, MI 49331 - OFFERING MEMORANDUM Representative Photo - LoopNet
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OFFERING
OFFERING MEMORANDUM
MEMORANDUM
Representative Photo
1400 W MAIN ST | LOWELL, MI 49331
Representative
Lowell, MI 1
Photo
Representative Photo
TABLE OF CONTENTS
3
INVESTMENT HIGHLIGHTS
4
4
FINANCIAL OVERVIEW
8
5
TENANT OVERVIEW
9
7
AREA OVERVIEW
EXCLUSIVELY LISTED BY
CADE NORLAND
Associate
DIRECT +1 (949) 662-2265
MOBILE +1 (949) 485-9897
cade.norland@matthews.com
LIC # 02120126 (CA)
CONNOR OLANDT
AVP & Director
DIRECT +1 (949) 432-4504
MOBILE +1 (818) 618-4522
connor.olandt@matthews.com
LIC # 01985082 (CA)
KYLE MATTHEWS
Broker of Record
LIC # 6502399497 (MI)
2 Burger King
INVESTMENT HIGHLIGHTS
» World Renowned Brand – Burger King first opened in 1954 and now has 15,000+ locations in over 100 countries.
» Attractive Lease Term – property has over ±17 years remaining on the lease providing the investor with long-term, passive
income.
» Absolute NNN Lease – The tenant is responsible for all expenses providing an investor with passive income and no landlord
responsibilities.
» Amway Corporate Campus – Located only a few miles away from the Burger King property, Amway’s corporate campus
stretches one mile wide and employs over ±4,000 people. Amway was ranked on Forbes list of largest privately held
businesses and saw approximately $8.8 Billion in reported sales for 2018.
» I-21 – The property is located right on I-21, which is one of Michigan’s main thoroughfares taking you into the heart of Grand
Rapids. I-21 sees ±16,425 VPD.
» Gerald R. Ford International Airport – The property is located only 9-miles away from Gerald R. Ford International Airport,
which handles ±3,500,000 passengers annually and has seen seven years of year-over-year growth pre-covid.
Lowell, MI 3
$2,240,000 5.64% $126,266
LIST PRICE CAP RATE ANNUAL RENT
Property OVERVIEW
TENANT Burger King LEASE SUMMARY
1400 W Main St
PROPERTY ADDRESS
Lowell, MI 49331
YEAR BUILT 2018 TENANT TRADE NAME Burger King
GLA ±3,100 SF TYPE OF OWNERSHIP Fee Simple
LOT SIZE ±0.89 AC LEASE GUARANTOR Crown Ventures, Inc.
LEASE TYPE Absolute NNN
ROOF AND STRUCTURE Tenant Responsibility
ORIGINAL LEASE TERM 20 Years
LEASE COMMENCEMENT DATE 8/28/2018
Representative Photo
RENT COMMENCEMENT DATE 9/1/2018
LEASE EXPIRATION DATE 8/31/2038
TERM REMAINING ON LEASE ±17 Years
RENT INCREASES 7.5% Every 5-Years
OPTIONS Four (4), Five (5) Year Options
ROFR No
4 Burger King
ANNUALIZED OPERATING DATA
DATE MONTHLY RENT ANNUAL RENT RENT INCREASES CAP RATE
Current - 8/31/2023 $10,522.17 $126,266.00 7.50% 5.64%
9/1/2023 - 8/31/2028 $11,311.33 $135,735.95 7.50% 6.06%
9/1/2028 - 8/31/2033 $12,159.68 $145,916.15 7.50% 6.51%
9/1/2033 - 8/31/2038 $13,071.65 $156,859.86 7.50% 7.00%
Option 1 $14,052.03 $168,624.35 7.50% 7.53%
Option 2 $15,105.93 $181,271.17 7.50% 8.09%
Option 3 $16,238.88 $194,866.51 7.50% 8.70%
Option 4 $17,456.79 $209,481.50 7.50% 9.35%
DEBT QUOTE
LTV: 65.00%
RATE: 3.85% - 4.35%
Loan quote provided by Matthews™ based on market
conditions at this time. Actual rates and terms will AMORTIZATION: 25
vary based on market conditions at closing.
PATRICK FLANAGAN
patrick.flanagan@matthews.com
Lowell, MI 5
6 Burger King
Representative Photo
Wichita, KS 7
TENANT OVERVIEW
BURGER KING
Burger King Worldwide operates the world’s #2 hamburger chain by sales with almost 15,000 restaurants in the US and more than 100 other
countries. Every day, more than 11 million guests visit Burger King Restaurants around the world and they do so because Burger King is known
for serving high-quality, great-tasting and affordable food. In addition to its popular Whopper sandwich, the chain offers a selection of burgers,
chicken sandwiches, salads, and breakfast items, along with beverages, desserts, and sides. Burger King’s menu has expanded from a basic
offerings of burgers, French fries, sodas, and milkshakes to a larger and more diverse set of products. Many of the eateries are stand-alone
locations offering dine-in seating and drive-through services; the chain also includes units in high-traffic locations such as airports and shopping
malls. Burger King Worldwide is owned and operated by Restaurant Brands International.
GEOGRAPHIC OUTREACH
Burger King has restaurant locations throughout the US and more than 100 other countries. The US and Canada are responsible for about 65%
of revenues. Like most other giants of the fast-food industry, Burger King has expanded its nationwide and international presence primarily
through franchising. But the company has reduced its domestic expansion efforts recently. Burger King has used joint ventures to expand in
countries like China, Mexico, Russia, and Singapore.
N O. OF LO CATI O N S YEA R F OUN DED PA REN T CO MPA N Y TRAD E NAME H EAD QUARTER S
± 15,000 1953 Restaurant Brands International, Inc. Miami, FL
8 Burger King
AREA OVERVIEW
lowell, mi
Lowell is a city in Kent County of the U.S. state of Michigan. The city is in
the northern portion of Lowell Township, but is
politically independent. Lowell’s economy is a mix of manufacturing,
restaurants and locally owned businesses. Lowell is bordered
by Vergennes Township on the north; Lowell Township on the west, south
and east; and Boston Township in Ionia county is onehalf
mile east of the eastern Lowell city limit. The Amway Corporate Campus
is located a few miles away from the Burger King property. Amway
was founded in the year 1959. The company has been operational for
over 59 years now. Amway is an American company that specializes in
various healthcare, beauty products and products for home care use as
well. As of the year 2017, the total revenue generated by the company
is more than $8.8 billion, while the number of employees working at
the company, as of the year 2018, is more than 17,000. The company
is ranked 42nd among all private companies in the USA, of which the
compilation was made by Forbes. The company currently has over 450
products under its name.
PROPERTY DEMOGRAPHICS
DEMOGRAPHICS 1-MILE 3-MILE 5-MILE
2026 Projection 3,448 12,688 18,094
2021 Estimate 3,339 12,285 17,544
2010 Census 2,950 10,838 15,600
2021-2026 Growth 0.7% 0.7% 0.6%
INCOME 1-MILE 3-MILE 5-MILE
2020 Avg. Household Income $72,305 $91,282 $95,405
Lowell, MI 9grand rapids
Known for having the most vibrant downtown between
Chicago and Cleveland, Grand Rapids is the primary cultural
and business hub of western Michigan on the Grand River. As
Michigan’s second largest city, it has long been a mecca for
creators and admirers of craftsmanship.
Upon its establishment, Grand Rapids emerged as a notable
furniture-producing center due to nearby hardwood forests.
Today, that industry has transitioned towards high-tech office
furniture with the headquarters for such names as Steelcase
and Herman Miller in the city.
Artistic creativity became an integral part of the city’s identity
in the 20th century, from visual and performing arts to brewery
and cuisine. One of the world’s most visited art museums, the
Frederik Meijer Gardens & Sculpture Park, is housed in Grand
Rapids. Voted Beer City USA in national polls, the city also
attracts beer lovers to its Beer City Ale Trail, which boasts
more than 40 breweries.
The surrounding area is agricultural, where greater agricultural
variety than otherwise found in many Midwestern locations is
promoted by the tempering effect of Lake Michigan. Michigan
is second only to California in agricultural diversity; the area
is responsible for producing 85% of all crops harvested in grand rapids, MI
18 Miles
Michigan.
With high incomes and low living costs, Grand Rapids
offers big city amenities and a high quality of life to its
residents. Downtown Grand Rapids is clean and traditionally
Midwestern with a European appearance where the Grand
River flows through. West of the Grand River lies an attractive
redevelopment, home of the Van Andel Museum. Nice
suburbs spread southwest and east, providing families more
spacious living options.
10 Burger KingCONFIDENTIALITY & DISCLAIMER STATEMENT
This Offering Memorandum contains select information pertaining to the business and affairs of Burger King located at 1400 W Main St, Lowell, MI 49331 (“Property”).
The 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 Matthews Real Estate Investment Services. The material and information in the Offering
Memorandum is unverified. Matthews Real Estate Investment Services has not made any investigation, and makes no warranty or representation, with respect to
square footage, income and expenses, the future financial performance of the property, future rent, and real estate value market conditions, the condition or financial
prospects of any tenant, or the tenants’ plans or intentions to continue to occupy space at the property. All prospective purchasers should conduct their own thorough
due diligence investigation of each of these areas with the assistance of their accounting, construction, and legal professionals, and seek expert opinions regarding
volatile market conditions given the unpredictable changes resulting from the continuing COVID-19 pandemic. The information is based in part upon information
supplied by the Owner and in part upon financial information obtained from sources the Owner deems reliable. Owner, nor their officers, employees, or real estate
agents make any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum, or any of its content, 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.
By acknowledging your receipt of this Offering Memorandum for the Property, 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.
Matthews Real Estate Investment Services is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee in the Offering Memorandum. 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 Matthews Real
Estate Investment Services.
Owner and Matthews Real Estate Investment Services expressly reserve 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 the Property 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 Seller or Matthews Real Estate Investment Services 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.
Lowell, MI 11OFFERING
OFFERING MEMORANDUM
MEMORANDUM
Representative Photo
EXCLUSIVELY LISTED BY
CADE NORLAND
Associate
DIRECT +1 (949) 662-2265
MOBILE +1 (949) 485-9897
cade.norland@matthews.com
LIC # 02120126 (CA)
CONNOR OLANDT
AVP & Director
DIRECT +1 (949) 432-4504
MOBILE +1 (818) 618-4522
connor.olandt@matthews.com
LIC # 01985082 (CA)
KYLE MATTHEWS
Broker of Record
LIC # 6502399497 (MI)
1400 W MAIN ST| LOWELL, MI 49331
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