Burger King 2314 Highway 281 South | Jamestown, ND 58401 - Offering Memorandum - Agree Realty
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Property Photo
Offering Memorandum
Burger King
2314 Highway 281 South | Jamestown, ND 58401
Absolute NNN | 1.25% Annual Rent Increases | ~15 Years Remaining | Buffalo Mall Outparcel - T.J. Maxx Anchor
Our Team Offered Exclusively by
BJ Feller Isaiah Harf Stan Johnson Company
Managing Director & Partner Regional Director & Partner 303 East Wacker Drive | Suite 1111
bfeller@stanjohnsonco.com iharf@stanjohnsonco.com Chicago, IL 60601
+1 312.777.2437 P: +1 312.240.0127
stanjohnsonco.com
Pat Weibel
Director
pw@stanjohnsonco.com
Andy Gatchell
Confidentiality and Restricted Use Agreement
Associate Director This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your
agatchell@stanjohnsonco.com consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM may
be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written
Blaise Bennett authorization and consent of SJC.
Associate Director
bbennett@stanjohnsonco.com This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains
descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may
be interested in the Property. Such information is not all inclusive and is not represented to include all information that
Mark Lovering may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of
Associate
the information contained herein and makes no representations or warranties of any kind concerning the accuracy or
mlovering@stanjohnsonco.com
completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are
qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be
Rachel Walz made available. An interested party must conduct its own independent investigation and verification of any information the
Associate party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.
rwalz@stanjohnsonco.com
The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to
Steve Weinrauch negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where
Senior Analyst is, and with all faults, without representation or warranty of any kind except for any customary warranties of title.
sweinrauch@stanjohnsonco.com
BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you
In Association with: have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form
(collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without
Peter P. Hegg attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/
North Dakota Broker License #1867
or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates,
officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless
SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all
claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning
the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such
party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable
to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of
these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific
performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief.
Section 1
About the Investment
SE
Property Photo
The Offering
Stan Johnson Company is pleased to offer for sale to qualified investors, the
opportunity to purchase a fee simple interest in a freestanding Burger King, Price: $2,052,100 Cap Rate: 5.95%
located at 2314 Highway 281 South, Jamestown, ND 58401 (the “Property”).
Burger King is operating under an absolute NNN lease with absolutely no Property Summary
landlord responsibilities, and 15 years of base term remaining with annual
1.25% rent increases. Location 2314 Highway 281 South | Jamestown, ND 58401
The Property is situated along Highway 281 (±14,526 VPD), a primary north- Total Building Size ±4,600 SF
south highway system that extends all the way to Texas. The Property is
Lot Size ±1.20 AC
positioned as an outparcel to the Buffalo Mall, a major shopping center
anchored by T.J. Maxx. Additionally, the Property is part of a larger retail Year Built 2014
corridor that features national tenants such as Walmart Supercenter, Tractor
Supply Co., Honda, Carhartt, Dewalt, Applebee’s, McDonald’s, Subway, and Base Lease Term Remaining 15 years
many more. The large retail corridor helps attract traffic to the location and
has assisted in the successful operation of Burger King at this location since Rental Increases 1.25% Annually
2014.
Lease Type Absolute NNN
Burger King (NASDAQ: BKC) was founded in 1954 and has since grown to
Parking ±48 surface spaces
be the second-largest fast-food hamburger chain in the world and one of
the most widely recognized quick-service restaurant brands globally with Drive Thru Yes
approximately 15,738 locations in 100 countries serving more than 11 million
guests daily. The vast majority, nearly 99.5%, of Burger King’s restaurants are
Offering Summary
owned and operated by independent franchisees, many of which are family-
owned operations that have been in business for decades. This business Offering Price $2,052,100
model has proven successful, as in mid-2012, Standard & Poor’s raised Burger
King’s credit rating from B to B+, citing the company’s positive operating Current NOI $122,103
trends and comparable-store sales growth. In August 2014, the company
merged with Canada-based food and coffee chain, Tim Hortons, resulting in Current Tenant Burger King
a global powerhouse parent company, Restaurant Brands International, Inc.
Property Type Freestanding Quick Service Restaurant
Demographics
1 mile 3 miles 5 miles
2019 Population 1,704 15,024 16,624
2019 Total Households 808 6,467 7,118
2019 Average HHI $56,782 $60,701 $61,689
Burger King • Jamestown, ND • 4
Regional Map | Jamestown, ND
Jamestown
Average Household
Income of $61,689
within 5 miles of the Property
Minneapolis
N
Burger King • Jamestown, ND • 5
Unique Property Attributes Investment Highlights
Absolute NNN Lease Absolute NNN - Annual Rent Increases | Burger King is operating under an absolute NNN lease structure,
with no landlord responsibilities whatsoever. The lease features 15 years of base term remaining, with
15 Years 1.25% rent increases annually. Burger King has successfully operated from this location since 2014.
Zero Landlord Responsibilities US Route 281 Location | The Property is situated on Highway 281 (±14,526 VPD), a heavily trafficked route
that extends all the way from Texas to North Dakota. The Property sits at the entrance of Jamestown for
those commuting to the city via Highway 281.
Outparcel to Buffalo Mall | The Property is an outparcel to the Buffalo Mall, a retail center that is anchored
by T.J. Maxx and includes tenants such as GNC, Anytime Fitness, and the Bison 6 Cinema. The Property
Walmart Supercenter is also shadow-anchored by a Walmart Supercenter and Tractor Supply Co, further helping drive traffic
Shadow-Anchor to the location.
Densely Packed Retail Corridor | The Property sits in a densely packed retail corridor that hosts many
national tenants such as Honda, Carhartt, Dewalt, Applebee’s, McDonald’s, Subway, and many more.
Lease Guarantor - 100+ Unit Franchisee | The lease is fully guaranteed by Meridian Restaurants Unlimited,
L.C., a growing 137-unit Franchisee successfully operating Burger King restaurants throughout 11 states
across the western United States.
Buffalo Mall Outparcel
World’s 2nd Largest Hamburger Chain | Burger King was founded in 1954 and has since grown to be
the second-largest fast-food hamburger chain in the world and one of the most widely recognized quick
service restaurant brands globally with approximately 15,738 locations in 100 countries serving more
than 11 million guests daily.
U.S. Route 281
14,526+ VPD
World’s
2nd Largest SW
Hamburger Chain
Property Photo
Burger King • Jamestown, ND • 6
Surrounding Area Retail
U.S. Route 281
14,526 VPD
N
Liechty Quality Service &
Homes Repair
Champ Industries
USA Inc Frontier Fort
RV Park
Customer
Center
Valley Plains
Equipment
Edgewood
Senior Living World’s Largest
Buffalo Monument
Buffalo Mall
Interstate 94
9,706 VPD
HongKong
Buffet
Central Business Buffalo City
Systems, Inc. Diesel
Jamestown Regional Airport
Xtreme
±5 Miles NE from the Property
Transmission & Auto
Infinity
Dakota Engine Building
Builders Services
Burger King • Jamestown, ND • 7
Section 2
Property Overview
E
Property Photo
Lease Abstract Rent Schedule
Tenant NDM Restaurants, L.C. Annual Monthly Rent
Period Years Dates Increase
Rent Rent PSF
David Harper & Stephan Ralston
Guarantor
Meridian Restaurants Unlimited, L.C. 1 10/31/2014 - 10/31/2015 $114,750 $9,563 $24.95 —
DBA Burger King 2 11/1/2015 - 10/31/2016 $116,184 $9,682 $25.26 1.25%
2314 Highway 281 South
Address 3 11/1/2016 - 10/31/2017 $117,637 $9,803 $25.57 1.25%
Jamestown, ND 58401
4 11/1/2017 - 10/31/2018 $119,107 $9,926 $25.89 1.25%
Building Size ±4,600 SF
Lot Size ±1.20 AC 5 11/1/2018 - 10/31/2019 $120,596 $10,050 $26.22 1.25%
Year Built 2014 6 11/1/2019 - 10/31/2020 $122,103 $10,175 $26.54 1.25%
Rent Commencement October 31, 2014 7 11/1/2020 - 10/31/2021 $123,630 $10,302 $26.88 1.25%
Lease/Rent Expiration October 31, 2034 8 11/1/2021 - 10/31/2022 $125,175 $10,431 $27.21 1.25%
Lease Term Remaining 15 years 9 11/1/2022 - 10/31/2023 $126,740 $10,562 $27.55 1.25%
Annual Base Rent $122,103 10 11/1/2023 - 10/31/2024 $128,324 $10,694 $27.90 1.25%
Base
Rental Increases 1.25% annually
11 11/1/2024 - 10/31/2025 $129,928 $10,827 $28.25 1.25%
Renewal Options 4, 5-year options
12 11/1/2025 - 10/31/2026 $131,552 $10,963 $28.60 1.25%
Renewal Notice 180 days written notice
13 11/1/2026 - 10/31/2027 $133,197 $11,100 $28.96 1.25%
Lease Type Absolute NNN
14 11/1/2027 - 10/31/2028 $134,862 $11,238 $29.32 1.25%
Landlord Responsibilities None
15 11/1/2028 - 10/31/2029 $136,547 $11,379 $29.68 1.25%
Insurance/Taxes/Utilities/CAM Tenant responsible
16 11/1/2029 - 10/31/2030 $138,254 $11,521 $30.06 1.25%
Yes; within 45 days after the end of each
fiscal quarter; and within 120 days after 17 11/1/2030 - 10/31/2031 $139,982 $11,665 $30.43 1.25%
Financial Reporting the end of each fiscal year. Also must
provide financial statements for individual 18 11/1/2031 - 10/31/2032 $141,732 $11,811 $30.81 1.25%
guarantors.
19 11/1/2032 - 10/31/2033 $143,504 $11,959 $31.20 1.25%
Estoppel 10 days
20 11/1/2033 - 10/31/2034 $145,298 $12,108 $31.59 1.25%
Parking ±48 surface spaces
Option 1 21-25 11/1/2034 - 10/31/2039
Drive Thru Yes
Property ID 74-1694000 Option 2 26-30 11/1/2039 - 10/31/2044
1.25% Annual Increases
Ownership Interest Fee Simple Option 3 31-35 11/1/2044 - 10/31/2049
Encumbrances None; delivered free and clear Option 4 36-40 11/1/2049 - 10/31/2054
Burger King • Jamestown, ND • 9
Site Plan
U.S. Route 281
14,526 VPD
Interstate 94
9,706 VPD
Paradiso
Mexican
Restaurant
25th St SW
704 VPD
HongKong
N Buffet
Burger King • Jamestown, ND • 10Subject Property Photos
Burger King • Jamestown, ND • 11SW S
Aerial Property Photos
NW NE
Burger King • Jamestown, ND • 12Section 3
Tenant Overview
Property PhotoBurger King Tenant Overview
Founded in 2002, Meridian Restaurants Unlimited, L.C. is a growing 137-
unit Franchisee successfully operating Burger King restaurants throughout
11 states in the western United States. With headquarters located in South
Ogden, Utah, Meridian employs over 5,000 team members across its
network of restaurants and is committed to making a positive difference
in the lives of their team members, guests, and local communities.
Burger King was founded in 1954 and has since grown to be the second-
largest fast-food hamburger chain in the world and one of the most widely
recognized quick service restaurant brands globally, with approximately
15,738 locations in 100 countries serving more than 11 million guests daily.
The vast majority, nearly 99.5%, of Burger King’s restaurants are owned
and operated by independent franchisees, many of which are family-
owned operations that have been in business for decades. This business
model has proven successful, as in mid-2012, Standard & Poor’s raised
Burger King’s credit rating from B to B+, citing the company’s positive
operating trends and comparable-store sales growth. In August 2014,
the company merged with Canada-based food and coffee chain, Tim
Hortons, resulting in a global powerhouse parent company, Restaurant
Brands International, Inc.
Restaurant Brands International, Inc. is one of the world’s largest QSR
companies with more than $27 billion in system-wide sales and over
23,000 restaurants in nearly 100 countries and U.S. territories. The Representative Photos
merger formed in 2014 between Burger King and Tim Hortons created the
company today known as Restaurant Brands International and enables
Tim Hortons and Burger King to continue growing their unique brands
and significantly accelerate international expansion and growth. The
company is majority-owned by 3G Capital—the previous majority owner Restaurant Brands International, Inc. Tenant Profile
of Burger King—holding a 51% stake. The remainder of the company
is publicly traded on the New York and Toronto Stock Exchanges and Employees 6,000
owned by the prior shareholders of Burger King and Tim Hortons. The FY2018 Revenue $6.94 Billion
deal was approved by Tim Hortons’ shareholders on December 9, 2014,
FY2018 Net Income $793.2 Million
and the company began trading on December 15, 2014, under the ticker
symbol “QSR.” On December 31, 2018, Restaurant Brands International, FY2018 Market Cap $15.8 Billion
Inc. (NYSE: QSR) reported total revenue of $6.94 billion and a net income Headquarters Miami, FL
of $793.2 million. The company currently holds an S&P rating of B+/Stable.
Website www.bk.com
*FY2018 ended December 31, 2018
Burger King • Jamestown, ND • 14Section 4
Location & Market Overview
SE
Property PhotoJamestown, ND Location Overview
Jamestown is a city in Stutsman County, North Dakota. It is the county seat of Stutsman County, and the population was 15,427 at the 2010 census making
it the ninth-largest city in North Dakota. Jamestown has a strong precision manufacturing base as well as food processing, agriculture, retail, and wholesale
businesses. Notable companies headquartered in Jamestown include ACI (Agri-Cover, Inc.), Dura Tech Industries, and Midwestern Machine, and additional
major employers include Cavendish Farms and UTC Aerospace Systems. Service facilities for trucking and heavy equipment repair are also located in
Jamestown.
The Jamestown Stutsman Development Corporation supports joint business and industrial development within the city and Stutsman County, North Dakota.
Four designated industrial parks adjoin the city or are part of joint city/county development efforts: Bloom Business Park, I-94 Business Park, Spiritwood
Energy Park (which includes Great River Energy and Cargill), and the Airport Business Park.
The University of Jamestown is a private liberal arts college founded by the Presbyterian Church and located on the north side of town. Its current enrollment
is approximately 1,000 students. Ranked by U.S. News & World Report in the top tier of regional undergraduate institutions, it is also notable among religious
colleges for having been a co-educational institution from its founding in 1883
The World’s Largest Buffalo Monument | Jamestown, ND
Burger King • Jamestown, ND • 16Demographics
Population 1 mile 3 miles 5 miles
2019 Population 1,704 15,024 16,624
2024 Population 1,656 14,765 16,366
2019 Median Age 46.3 41.5 42.1
Households
Jamestown
2019 Total Households 808 6,467 7,118
2024 Total Households 790 6,365 7,019
1 mile
Household Income
2019 Average Household Income $56,782 $60,701 $61,689
3 miles
5 miles
16.6K+ $61.6K+ N
Residents w/in Avg. HHI w/in
5 miles 5 miles
Source: ESRI 2019
Burger King • Jamestown, ND • 17going beyond
Isaiah Harf BJ Feller
Regional Director & Partner Managing Director & Partner
iharf@stanjohnsonco.com bfeller@stanjohnsonco.com
+1 312.777.2437
Pat Weibel Andy Gatchell
Director Associate Director
pw@stanjohnsonco.com agatchell@stanjohnsonco.com
Blaise Bennett Mark Lovering
Associate Director Associate
bbennett@stanjohnsonco.com mlovering@stanjohnsonco.com
Rachel Walz Steve Weinrauch
Associate Senior Analyst
rwalz@stanjohnsonco.com sweinrauch@stanjohnsonco.com
In Association with:
Peter P. Hegg
North Dakota Broker License #1867
Stan Johnson Company
303 East Wacker Drive | Suite 1111
Chicago, IL 60601
P: +1 312.240.0127
stanjohnsonco.com
The information contained herein was obtained from sources believed reliable, however,
Stan Johnson Company makes no guaranties, warranties or representations as to the
completeness thereof. The presentation of this property for sale, rent or exchange is
submitted subject to errors, omissions, change of price or conditions, or withdrawal
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