24+ YEAR TERM $3,157,895 - OFFERING MEMORANDUM - ACTUAL PROPERTY WENDY'S / WICHITA, KANSAS 1 - The ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
OFFERING MEMORANDUM
24+ YEAR TERM
$3,157,895
4.75% CAP RATE
WICHITA, KANSAS
ACTUAL PROPERTY
WENDY’S / WICHITA, KANSAS 1
INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS
PRICE: $3,157,895 • 24+ Year Lease Term
• Rebuilt from the Ground Up
CAP RATE: 4.75% • Completed June 2020
• Absolute NNN Ground Lease
ANNUAL INCOME: $150,000 • Strong operator: 194 units in 6 states
• Exceptional presence in local market - over 38
LEASE TERM: 24+ YEARS Years at this location
COTTI FOODS • Healthy Rent to Sales Ratio
FRANCHISEE:
MIDWEST, INC. • Essential Business
Click Here For Video
• 24+ Year Lease Term: Absolute NNN Ground Lease
with a 24+ Year Term commenced July 6, 2020
• Tremendous hedge against inflation: 10% rent
increases every 5 years
• Proven operator: The executive leadership of the
franchisee operator collectively have over 200 years
experience in the fast food restaurant industry.
• High visibility location: Located along one of
the major retail corridors in the market and within
proximity to several major employers.
• National brand: Wendy’s is the #2 hamburger chain
in the U.S. providing excellent brand awareness to
ACTUAL PROPERTY
consumers.
WENDY’S / WICHITA, KANSAS 2
INVESTMENT HIGHLIGHTS
EXCELLENT REAL ESTATE FUNDAMENTALS
New Wendy’s Prototype: Rebuilt from the Ground Up per
Wendy’s latest branding and design specifications and
costing +$1.5M was completed in June 2020.
Dominate local presence: Wendy’s has been
successfully operating at this location over 38 years.
This is a high profile outparcel along a major retail
corridor in close proximity to national retailers, large area
employers, numerous local schools and Wichita State
University.
IDEAL 1031 CANDIDATE
National brand: #2 hamburger chain in the U.S.
Long term lease: 24+ year lease
Zero landlord responsibilities: Tenant self maintains
property and pays taxes and insurance directly
Free & clear delivery: Property being sold free and clear
of any existing debt
ACTUAL PROPERTY
SECURE, LONG-TERM INVESTMENT
Limited ownership responsibility: Zero landlord obligations. Tenant maintains the property and pays all real estate and
insurance obligations directly.
Low occupancy costs: Strong unit sales and a healthy rent-sales ratio provide assurance that this unit will continue to provide
long term security with high level of renewal probability.
Automatic rent increases: 10% rent increases every five years throughout the initial 24+ year term and all 5 year option
periods, providing investors a tremendous hedge against inflation.
WENDY’S / WICHITA, KANSAS 3
SNAPSHOT: WICHITA
Wichita, Kansas has been nationally ranked #1 as “The Best City for Homeownership” and “Best City to Raise a Family”. One of the
fastest growing communities in Kansas for the last 10 years, Wichita has seen its population explode with a growth rate of 90% since
2000.
Wichita, the largest city in Kansas, is the county seat of Sedgwick County. Major highways, including the Kansas Turnpike, US 400 and
Interstate I-135, link the city with a large trade area that encompasses a population of more than one million people within a 100-mile
radius.
Wichita was originally known for being a cradle of beef and agriculture production, but has since become a home to numerous service
providers to the regions many oil companies, manufacturering and logistic facilities and widely recognized as the “Air Capital of the
World”. The Wichita area has been a leading producer of general aviation and commercial aircraft and is home to several aviation
manufacturers and support facilities including:
ACTUAL PROPERTY
WENDY’S / WICHITA, KANSAS 4
REGIONAL MAP
WENDY’S / WICHITA, KANSAS 5
PROPERTY KEY FACTS
LOCATION BUILDING AREA TRAFFIC COUNTS
2120 N. Woodlawn Street Property consists of a restaurant N. Woodlawn Blvd: 23,000 VPD
Wichita, KS 67208 building approx. +/-2,759 SF E. 21st Street North: 25,000 VPD
SITE PARKING BUILT
Wendy’s is located at SEQ of Wendy’s has approx. 48 New ground up construction was
Woodlawn S. and East 21st St. dedicated parking spaces, completed in 1982. Rebuilt from
Intersection providing a ratio of 17.4 spaces the Ground Up in 2020.
per 1,000 SF
LAND AREA COUNTY ZONING
Property consists of approx. 0.83 Sedgwick C-3 (Retail)
Acres (+/-36,155 SF)
ACTUAL PROPERTY
WENDY’S / WICHITA, KANSAS 6
SITE PLAN WENDY’S / WICHITA, KANSAS 7
AERIAL
BRICKSTON E
AT WOODLAWN
N. WOODLAWN BLVD (23,000 VPD )
EAST 21ST ST. N. (25,000 VPD )
®
BIOMAT US A
MEDICAL CENTER
THE LANDIN G
AT WOODLAWN
TOWE R
WENDY’S / WICHITA, KANSAS 8
PHOTOS
ACTUAL PROPERTY
WENDY’S / WICHITA, KANSAS 9
PHOTOS
ACTUAL PROPERTY
WENDY’S / WICHITA, KANSAS 10TENANT: COTTI FOODS MIDWEST, INC.
PUBLIC/PRIVATE: PRIVATE (FAMILY OWNED)
LOCATIONS: 47
HEADQUARTERS: RANCHO SANTA MARGARITA, CA
Cotti Foods Midwest, Inc. is one of six family owned Cotti Foods companies TICKER SYMBOL: WEN (NASDAQ)
that collectively operate 194 restaurants in 6 states. As of June 2020, the
S&P RATING: B+ (STABLE)
companies operate 85 Taco Bell restaurants in California, 105 Wendy’s
restaurants in California, Hawaii, Kansas, Missouri, Oklahoma and Texas, LOCATIONS: +/- 6,500
and 4 Pieology restaurants. HEADQUARTERS: DUBLIN, OH
WEBSITE: WWW.WENDYS.COM
The Executive Management Team of Cotti Foods collectively has over YEAR FOUNDED: 1969
200 years of experience in the fast-food industry. The six family owned
companies are based in Rancho Santa Margarita, California and employ
over 6,000 people.
ACTUAL PROPERTY
WENDY’S / WICHITA, KANSAS 11LEASE SUMMARY
TENANT TRADE NAME WENDY'S
FRANCHISEE OPERATOR COTTI FOODS MIDWEST, INC.
TENANT COTTI FOODS MIDWEST, INC.
TYPE OF OWNERSHIP FEE SIMPLE (LAND ONLY)
GROUND LEASE
LEASE TYPE
(ABSOLUTE NNN)
INITIAL LEASE TERM 24+ YEARS
TERM REMAINING
24+ YEARS
(AT CLOSING DATE)
LEASE COMMENCEMENT
JULY 6, 2020
DATE
LEASE EXPIRATION DATE JUNE 30, 2045
RENEWAL OPTIONS FOUR (4), 5 YEARS EACH
10% EVERY 5 YEARS,
RENT ESCALATIONS
INCLUDING OPTIONS
ROOF & STRUCTURE TENANT RESPONSIBILITY
TENANT RESPONSIBILITY
REAL ESTATE TAXES
(PAYS DIRECTLY)
TENANT RESPONSIBILITY
INSURANCE
(PAYS DIRECTLY)
HVAC TENANT RESPONSIBILITY
CAM TENANT RESPONSIBILITY
REPAIRS & MAINTENANCE TENANT RESPONSIBILITY
TERMINATION RIGHT NONE
ACTUAL PROPERTY
WENDY’S / WICHITA, KANSAS 12PROPERTY DETAILS
RENT SCHEDULE
M O NTHLY ANNUAL CAP
P E R IOD
RENT RENT RATE
YRS 1-5 INITIAL TERM $12,500.00 $150,000 4.75%
YRS 6-10 INITIAL TERM $13,750.00 $165,000 5.22%
YRS 11-15 INITIAL TERM $15,125.00 $181,500 5.75%
YRS 16-20 INITIAL TERM $16,637.50 $199,650 6.32%
YRS 21-24+ INITITIAL TERM $18,301.25 $219,615 6.95%
OPTION 1 $20,131.38 $241,577 7.65%
OPTION 2 $22,144.51 $265,734 8.41%
OPTION 3 $24,358.96 $292,308 9.26%
OPTION 4 $26,794.86 $321,538 10.18%
PROPERTY NAME: WENDY'S
2120 N. WOODLAWN STREET
PROPERTY ADDRESS:
WICHITA, KS 67208
COUNTY: SEDGWICK
YEAR BUILT: 2020
GROSS LEASABLE AREA (GLA): APPROX. 2,759 SF
LOT SIZE: APPROX. 36,155 SF (0.83 ACRES)
ACTUAL PROPERTY
WENDY’S / WICHITA, KANSAS 13INVESTMENT ADVISORS CORPORATE OFFICE
2100 W. 7th Street
Fort Worth, Texas 76107
TRIP GREEN GRANT GARY 817.732.4000
Sr. VP - Investment Sales President - Brokerage Services DALLAS OFFICE
817.377.7763 817.377.7755 16633 N. Dallas Pkwy, Suite 320
Addison, Texas 75001
tgreen@woodmont.com ggary@woodmont.com 214.824.6091
NEWPORT BEACH OFFICE
WWW.WOODMONT.COM 620 Newport Center Dr, Suite 1100
Newport Beach, California 92660
949.698.1520
CONFIDENTIALITY & DISCLOSURE
The material contained in this Investment Offering Brochure is furnished solely for the purpose of considering the purchase of enclosed property
and is not to be used for any other purposes. This information should not, under any circumstances, be photocopied or disclosed to any third party
without written consent of The Woodmont Company or Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of
the Property.
The only party authorized to represent the Property Owner (“Owner”) in connection with the sale of the Property is The Woodmont Company, and no
other person is authorized by the Owner to provide any information or to make any representations other than contained in this Investment Offering
Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to
The Woodmont Company.
Neither The Woodmont Company nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the
information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future performance of
the Property. This Offering Brochure may include certain statements and estimates by The Woodmont Company with respect to the projected future
performance of the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will
be achieved. Further, The Woodmont Company and the Owner disclaim any and all liability for representations or warranties, expressed or implied,
contained in or omitted from this Investment Offering Brochure, or any other written or oral communication transmitted or made available to the
recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed
and delivered Real Estate Purchase and Sale Agreement between it and Owner. The information contained herein is subject to change without
notice and the recipient of these materials shall not look to Owner or The Woodmont Company, nor any of their officers, employees, representatives,
independent contractors, or affiliates, for the accuracy or completeness thereof. Recipients of the Investment Offering Brochure are advised and
encouraged to conduct their own comprehensive review and analysis of the Property.
This Investment Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its
sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate
discussions with any entity at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the
Investment Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate
Purchase Agreement on terms acceptable to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to
have acknowledged the foregoing and agreed to release Owner and The Woodmont Company from any liability with respect hereto.You can also read
