167 E. MCARTHUR DR. | BETHALTO (GREATER ST. LOUIS), IL 62010 - LOOPNET
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O F F E R ING ME MO RANDU M
167 E. McARTHUR DR. | BETHALTO (GREATER ST. LOUIS), IL 62010
ACTUAL LOCATION
CONTACT US
MIKE PHILBIN SAM ALISON PAUL FUSZ
VICE PRESIDENT SENIOR VICE PRESIDENT FIRST VICE PRESIDENT
+1 818 907 4691 +1 818 907 4690 +1 314 655 6046
MIKE.PHILBIN@CBRE.COM SAM.ALISON@CBRE.COM PAUL.FUSZ@CBRE.COM
JOSH ROEDEMEIER NICK GARAVAGLIA
VICE PRESIDENT ASSOCIATE 190 CARONDELET PLAZA,
+1 314 655 5942 +1 314 655 5827 SUITE 1400
JOSH.ROEDEMEIER@CBRE.COM NICK.GARAVAGLIA@CBRE.COM ST. LOUIS, MO 63105
F: +1 314 655 6100
CBRE.COM
REPRESENTATIVE PHOTO
SECTION 1
EXECUTIVE SUMMARY
ACTUAL LOCATION
$725,000
OFFERING PRICE
6.57%
CAP RATE
CBRE is pleased to present to qualified investors the
opportunity to acquire fee simple interest in the free-
standing Rally’s located at 167 East McArthur Drive in
Bethalto (Greater St. Louis), Illinois 62010 (the “Property”).
The Property is being offered free and clear of any debt. DOWNTOWN
Ownership anticipates investors consider the strong real ST. LOUIS
estate fundamentals and Tenant’s creditworthiness when ±28 miles N
evaluating the Property.
INVESTMENT HIGHLIGHTS PROPERTY SUMMARY
OFFERING PRICE $725,000
ABSOLUTE NNN INVESTMENT OFFERING CAP RATE 6.57%
(ZERO LL RESPONSIBILITY) BUILDING SIZE (SF) ±804 SF
BEST-IN-CLASS CORPORATE GUARANTEE LAND ACREAGE ±0.50 AC
YEAR BUILT 1989
30-YEAR TENANCY
LEASE TYPE Absolute NNN – Zero LL Responsibility
PROVEN COMMITMENT TO LOCATION
CURRENT ANNUAL RENT $47,694
STRONG STORE SALES
OWNERSHIP Fee Simple
WELL ABOVE AUV
ASSUMABLE DEBT None
DOMINANT RETAIL CORRIDOR LOCATION
BELOW MARKET RENT
ATTRACTIVE RENTAL INCREASES
EXCELLENT ACCESS & VISIBILITY
IDEAL 1031 EXCHANGE PROPERTY
SECTION 2
INCOME OVERVIEW
REPRESENTATIVE PHOTO
LEASE ABSTRACT
167 E. McARTHUR DR. · BETHALTO (GREATER ST. LOUIS), IL 62010
TENANT Rally’s
GUARANTOR Checkers Drive-In Restaurants, Inc.
BUILDING SIZE (SF) ±804 SF
LAND ACREAGE ±0.50 AC
YEAR BUILT 1989
LEASE TYPE Absolute NNN – Zero LL Responsibility
LEASE TERM Twenty (20) Years
LEASE EXPIRATION August 26, 2024
CURRENT ANNUAL RENT $47,694
RENEWAL OPTIONS Five (5), 5-year options
LEASE EXPIRATION August 26, 2024
OWNERSHIP Fee Simple
ASSUMABLE DEBT None
RENT SCHEDULE
ANNUAL MONTHLY
LEASE TERM RENT START – END
RENT RENT
8/27/14 - 8/26/19 $47,694.00 $3,974.50
BASE TERM
8/27/19 - 8/26/24 $51,509.64 $4,292.47
OPTION 1 8/27/24 - 8/26/29 $55,630.20 $4,635.85
OPTION 2 8/27/29 - 8/26/34 $60,080.64 $5,006.72
OPTION 3 8/27/34 - 8/26/39 $64,887.00 $5,407.25
OPTION 4 8/27/39 - 8/26/44 $70,078.08 $5,839.84
OPTION 5 8/27/44 - 8/26/49 $75,684.24 $6,307.02
You are solely responsible for independently verifying the information in this Memorandum.
ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
PHOTOS OF ACTUAL LOCATION
SECTION 3
TENANT OVERVIEW
REPRESENTATIVE PHOTO
TENANT OVERVIEW
CHECKERS DRIVE-IN RESTAURANTS, INC. is the largest
chain of double drive-thru restaurants in the United States.
In April of 2017 Oak Hill Capital Partners announced that it
had acquired Checkers from Sentinel Capital Partners for
approximately $525 million (see page 10 for additional details).
The company operates more than 784 Checkers and Rally’s
restaurants in 28 states and the District of Columbia with
restaurants also operating in Israel and American Samoa.
They specialize in hamburgers, hot dogs, French fries, and
milk shakes.
Originally separate companies from serving different
geographic areas, Checkers and Rally’s Hamburgers, Inc.
merged in August 1999. The joint company houses its
headquarters in Tampa, Florida. Checkers was founded in
1986 in Mobile, Alabama, and went public in 1991. Rally’s was
founded in Louisville, Kentucky in 1985, with its first location
in Jeffersonville, Indiana. From 1996 to 1999, Rally’s was
owned by CKE Restaurants, parent company of Carl’s Jr. and
Hardee’s.
REPRESENTATIVE PHOTOS
The menus of the two restaurants are nearly identical,
differing in that Checkers’ menu includes additional
hamburgers (including the original Big Buford hamburger).
Over time, the Checkers menu grew in size to include chicken
and fish sandwiches, chicken strips, and a wider selection of CORPORATE PROFILE
hamburgers.
COMPANY NAME Checkers Drive-In Restaurants, Inc.
PARENT COMPANY Oak Hill Capital Partners
OWNERSHIP Private
YEAR FOUNDED 1965
INDUSTRY/SECTOR Food Service; Quick-Service Restaurant
NO. OF LOCATIONS ±784
HEADQUARTERS Tampa, FL
WEBSITE Rallys.com
IN THE NEWS
Acquisition of Checkers & Rally’s Restaurants for $525M;
Iconic Chain Positioned for Continued Growth
NEW YORK, March 23, 2017, PRNewswire — Oak Hill Capital Partners
(“Oak Hill”) announced today that it has entered into a definitive Restaurant Chain Checkers & Rally’s Sell for $525M
agreement to acquire Checkers Drive- In Restaurants, Inc. (“Checkers” or
“the Company”) from Sentinel Capital Partners (“Sentinel”). Operating NEW YORK, April 25, 2017 — Sentinel Capital Partners, a private equity
under the Checkers and Rally’s banners, the Company is one of the firm that invests in promising, lower middle market companies, today
nation’s leading operators and franchisors of drive-thru hamburger announced the closing of its sale of Checkers and Rally’s Restaurants,
quick-service restaurants (“QSR”). Consistent with Oak Hill’s philosophy Inc. in an all-cash transaction valued at $525 million.
of alignment of interests, Oak Hill is investing in partnership with Checkers
Rick Silva, President and CEO of Checkers, commented, “We are
management. The aggregate value of the transaction is approximately
delivering record growth at Checkers and Rally’s, and our franchisees,
$525 million.
operators, and employees are more excited than ever about our future.”
Kevin Mailender, Partner at Oak Hill, said, “Checkers is a unique concept
that is outpacing the growing QSR industry. The Company has been able
to win share in this large, stable industry through its differentiated value
proposition and attractive franchised business model. With a proven
brand, a loyal customer following, and strong unit-level economics, we
are confident that the business will capitalize on its large whitespace
opportunity for new units. We are excited to partner with CEO Rick Silva
and his talented management team to support the Company through its
next phase of accelerated growth.“
Tyler Wolfram, Managing Partner at Oak Hill, added, “We believe Checkers
is well-positioned to continue its long history of consistent growth. We
have tremendous respect for Checkers’ heritage, its iconic brand, and
its fine leadership team. This transaction is consistent with Oak Hill’s
longstanding theme-based investment philosophy and systematized
approach to value creation, and it builds upon our thirty year history of
investing behind leading businesses and management teams.”
REPRESENTATIVE PHOTO
SECTION 4
MARKET OVERVIEW
BLUFFS OF THE MISSISSIPPI RIVER
ALTON, IL (±8 MILES)MARKET OVERVIEW
BETHALTO is a village in Madison County, Illinois. It is part
of the Illinois Metro East portion of the Greater St. Louis
metropolitan area. It is perched on the edge of the rolling
Illinois prairie. Low green hills and picturesque farms frame
on of the three fastest growing communities in Madison
County.
Bethalto is home to the St. Louis Regional Airport. Bethalto
is a bedroom community and offers the Bethalto Municipal
Park located in the center of town which consists of a stage
amphitheater, swimming pool, lighted tennis courts, baseball
fields, soccer fields, a skateboard park and newly-remodeled
ST. LOUIS REGIONAL AIRPORT (±1 MILE)
basketball park. The Bethalto Arboretum was developed
in 1966 and is one of the few arboretums in the area and
contains trees and plants from around the world. Culp Lane
Park was established in 2005 and features a lake where
fishing is allowed and a children’s play area. The Bethalto
Sports Complex features two baseball fields, two softball
fields, two soccer fields and a grandstand.
Its close proximity to the rest of the St. Louis metropolitan
area affords a variety of cultural opportunities and
entertainment nearby such as St. Louis’ three professional
sports teams: St. Louis Cardinals baseball team; St. Louis
Rams football team; St. Louis Blues hockey team. The city is
defined by music and performing arts, especially associated
with blues, jazz, and ragtime. It is also the home to the St.
Louis Symphony. St. Louis operates more than 100 parks
that include such amenities as sports facilities, playgrounds,
concert areas, picnic areas and lakes. Forest Park occupies
1,400 acres, making it almost twice as large as Central Park
in New York City.
CLARK BRIDGE | ALTON, IL (±8 MILES)MARKET OVERVIEW
GREATER ST. LOUIS The St. Louis Metropolitan Statistical Area is ECONOMY The economic diversification of St. Louis is one of the
the largest metro area in Missouri, and the 19th largest in the United area’s most significant assets. Diversification supports resistance to
States, with an estimated total population of 2.81 million. Greater St. sharp economic recessions and allows quick responsiveness in periods of
Louis is bisected by the Mississippi River where eastern Missouri meets expansion. The region is home to some of the country’s largest privately
western Illinois. The MSA includes the independent City of St. Louis held corporations, including Enterprise Rent-A-Car, Graybar Electric, and
(population 316,000), along with the Missouri counties of St. Louis, St. Edward Jones. The region is also home to some of the largest public
Charles, Jefferson, Franklin, Lincoln, Warren, and Washington, plus the corporations and corporate divisions, including Anheuser-Busch, Nestle
Illinois counties of Madison, St. Clair, Macoupin, Clinton, Monroe, Jersey, Purina, Boeing Defense Space & Security, Express Scripts, Monsanto
Bond and Calhoun. Company, and Emerson.
From St. Louis, Chicago is approximately 300 miles to the northeast.
Kansas City is approximately 250 miles to the west, and Memphis is EDUCATION With more than a dozen four-year universities and colleges,
approximately 250 miles to the south. Its location near the geographical St. Louis offers a number of options for students pursuing degrees in a
center of the United States means it is the closest major metropolitan variety of fields. Residents of St. Louis MSA are well educated, with 91%
area to the U.S. population center. of residents aged 25+ having earned their high school diploma and 32%
having earned at least a bachelor’s degree as compared to the national
averages of 86% and 29%, respectively.
POPULATION The St. Louis MSA has seen consistent population
growth over the past several years. At the 2000 Census the St. Louis MSA
had a population of 2.68 million; current estimates place the population
above 2.81 million; and 2021 projected population is 2.84.
DOWNTOWN ST. LOUIS (±28 MILES)LOCAL AREA VIEW
N. BELL
WOOD
DR
. (±14,30
0 VPD)
E. M
cA
RTH
URD
R. (±
21,10
0V
PD)
DOWNTOWN
ST. LOUIS
±28 miles
ST. LOUIS
REGIONAL AIRPORT
±1 mile
NBETHALTO EAST
ELEMENTARY
±426 students
±1 mile
PRIMARY TRADE AREA
CIVIC MEMORIAL
HIGH SCHOOL TRIMPE MIDDLE
SCHOOL
±741 students
±0.8 mile ±576 students
±0.9 mile
E. M
(±2cART
1,0 HUR
00
VP DR.
D)
W. BETHALTO DR. (±19,200 VPD)
. (±15,300 VPD)
DOWNTOWN
ST. LOUIS
N. BELLWOOD DR
±28 miles ST. LOUIS
REGIONAL AIRPORT
±1 mile
NALTON SQUARE MALL
638,000 SF
255
ALTON CORNERS
ALTON
REGIONAL TRADE AREA
WOOD RIVER CENTRE
Walmart 55
3
WOOD RIVER
CONOCOPHILLIPS COMPANY 159
WOOD RIVER REFINERY
EDWARDSVILLE CROSSING
255
Southern Illinois
University-Edwardsville
(13,850 Students)
Sam’s
3 Club
270
EDWARDSVILLE COTTONWOOD PLAZA 70
270 Walmart
NAMEOKI COMMONS
Walmart
159
40
BELLEMORE 255 55
VILLAGE SC
THE ORCHARDS
GRANITE CITY
US STEEL CORPORATION
GRANITE CITY WORKS
ST. LOUIS
COLLINSVILLE CROSSING
3 Walmart COLLINSVILLE
STARBUCKS
N
© 2016 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm
for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigationAREA DEMOGRAPHICS
0–1 0–3 0–5
MILE MILES MILES
POPULATION
2022 POPULATION* 5,120 28,127 52,152
2017 POPULATION 5,172 28,350 52,682
2010 POPULATION 5,336 28,941 54,34
*Projected
HOUSEHOLDS
2022 HOUSEHOLDS* 2,087 11,515 21,568
2017 HOUSEHOLDS 2,107 11,607 21,789
2010 HOUSEHOLDS 2,173 11,845 22,481
*Projected
AVERAGE HOUSEHOLD INCOME
2017 HOUSEHOLD INCOME $73,407 $64,052 $58,788
THE GREAT RIVER ROAD ALONG THE MISSISSIPPI RIVER
ALTON, IL (±8 MILES)AFFILLIATED BUSINESS DISCLOSURE
CBRE, Inc. operates within a global family of companies with many
subsidiaries and related entities (each an “Affiliate”) engaging in a broad
DISCLAIMER This Memorandum contains select information
pertaining to the Property and the Owner, and does not purport to be
range of commercial real estate businesses including, but not limited
all-inclusive or contain all or part of the information which prospective
to, brokerage services, property and facilities management, valuation,
investors may require to evaluate a purchase of the Property. The
investment fund management and development. At times different
information contained in this Memorandum has been obtained from
Affiliates, including CBRE Global Investors, Inc. or Trammell Crow
sources believed to be reliable, but has not been verified for accuracy,
Company, may have or represent clients who have competing interests
completeness, or fitness for any particular purpose. All information is
in the same transaction. For example, Affiliates or their clients may have
presented “as is” without representation or warranty of any kind. Such
or express an interest in the property described in this Memorandum
information includes estimates based on forward-looking assumptions
(the “Property”), and may be the successful bidder for the Property.
relating to the general economy, market conditions, competition and
Your receipt of this Memorandum constitutes your acknowledgment
other factors which are subject to uncertainty and may not represent
of that possibility and your agreement that neither CBRE, Inc. nor any
the current or future performance of the Property. All references to
Affiliate has an obligation to disclose to you such Affiliates’ interest or
acreages, square footages, and other measurements are approximations.
involvement in the sale or purchase of the Property. In all instances,
This Memorandum describes certain documents, including leases
however, CBRE, Inc. and its Affiliates will act in the best interest of
and other materials, in summary form. These summaries may not be
their respective client(s), at arms’ length, not in concert, or in a manner
complete nor accurate descriptions of the full agreements referenced.
detrimental to any third party. CBRE, Inc. and its Affiliates will conduct
Additional information and an opportunity to inspect the Property may
their respective businesses in a manner consistent with the law and all
be made available to qualified prospective purchasers. You are advised
fiduciary duties owed to their respective client(s).
to independently verify the accuracy and completeness of all summaries
and information contained herein, to consult with independent legal
CONFIDENTIALITY AGREEMENT Your receipt of this Memorandum and financial advisors, and carefully investigate the economics of this
constitutes your acknowledgement that (i) it is a confidential transaction and Property’s suitability for your needs. ANY RELIANCE
Memorandum solely for your limited use and benefit in determining ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN
whether you desire to express further interest in the acquisition of the RISK.
Property, (ii) you will hold it in the strictest confidence, (iii) you will not
disclose it or its contents to any third party without the prior written The Owner expressly reserves the right, at its sole discretion, to reject
authorization of the owner of the Property (“Owner”) or CBRE, Inc., any or all expressions of interest or offers to purchase the Property,
and (iv) you will not use any part of this Memorandum in any manner and/or to terminate discussions at any time with or without notice to
detrimental to the Owner or CBRE, Inc. you. All offers, counteroffers, and negotiations shall be non-binding and
neither CBRE, Inc. nor the Owner shall have any legal commitment or
If after reviewing this Memorandum, you have no further interest in obligation except as set forth in a fully executed, definitive purchase
purchasing the Property, kindly return it to CBRE, Inc. and sale agreement delivered by the Owner.
© 2018 CBRE, Inc. All Rights Reserved.
REPRESENTATIVE PHOTOCAPITAL MARKETS · INVESTMENT PROPERTIES
MARKETED EXCLUSIVELY BY
MIKE PHILBIN SAM ALISON PAUL FUSZ
VICE PRESIDENT SENIOR VICE PRESIDENT FIRST VICE PRESIDENT
+1 818 907 4691 +1 818 907 4690 +1 314 655 6046
MIKE.PHILBIN@CBRE.COM SAM.ALISON@CBRE.COM PAUL.FUSZ@CBRE.COM
JOSH ROEDEMEIER NICK GARAVAGLIA 190 CARONDELET PLAZA,
VICE PRESIDENT ASSOCIATE SUITE 1400
+1 314 655 5942 +1 314 655 5827 ST. LOUIS, MO 63105
JOSH.ROEDEMEIER@CBRE.COM NICK.GARAVAGLIA@CBRE.COM F: +1 314 655 6100
CBRE.COM
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