CARL'S JR. 5900 SW 45th Avenue, Amarillo, TX 79105 - InvestCore Commercial
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CARL’S JR.
5900 SW 45th Avenue, Amarillo, TX 79105
Exclusively Offered By:
Michael Campbell Ed Colson, Jr. CCIM
619.546.0122 619.546.0121
Michael@InvestCoreCommercial.com Ed@InvestCoreCommercial.com
CA Lic #01843521 CA Lic #01382996 | TX Lic #635820
InvestCoreCommercial.com
OFFERING STATEMENT / DISCLAIMER
InvestCore Commercial has been retained as the contained in, or for omission from, this Investment available to the public (such contents as so limited herein
exclusive advisor and broker regarding the sale of the Offering or any other written or oral communication are called the “Contents”), are of a confidential nature.
Carl’s Jr. located at 5900 SW 45th Avenue, Amarillo, transmitted or made available to the recipient. This By accepting the package, you agree (i) to hold and
Texas 79105 Offering does not constitute a representation that there treat it in the strictest confidence, (ii) not to photocopy or
has been no change in the business or affairs of the duplicate it, (iii) not to disclose the package or any of the
This Offering has been prepared by InvestCore Property or the Owner since the date of preparation of contents to any other entity (except to outside advisors
Commercial for use by a limited number of parties and the package. Analysis and verification of the information retained by you, if necessary, for your determination of
does not purport to provide a necessarily complete contained in this package is solely the responsibility whether or not to make a proposal and from whom you
summary of the Property or any of the documents of the prospective purchaser. Additional information have obtained an agreement of confidentiality) without
related thereto, nor does it purport to be all-inclusive and an opportunity to inspect the Property will be the prior written authorization of Owner or InvestCore
or to contain all of the information which prospective made available upon written request to interested and Commercial, (iv) not use the package or any of the
investors may need or desire. All projections have been qualified prospective investors. contents in any fashion or manner detrimental to the
developed by InvestCore Commercial, the Owner, and interest of Owner or InvestCore Commercial, and (v) to
designated sources and are based upon assumptions Owner and InvestCore Commercial each expressly return it to InvestCore Commercial immediately upon
relating to the general economy, competition, and reserve the right, at their sole discretion, to reject any request of InvestCore Commercial or Owner.
other factors beyond the control of the Owner and, and all expressions of interest or offers regarding the
therefore, are subject to variation. No representation Property and/or terminate discussions with any entity If you have no further interest in the Property, please
is made by InvestCore Commercial or Owner as to at any time with or without notice. Owner shall have no return this Investment Offering forthwith.
the accuracy or completeness of the information legal commitment or obligation to any entity reviewing
contained herein, and nothing contained herein is, or this Offering or making an offer to purchase the Property
shall be relied on as, a promise or representation as to unless and until a written agreement for the purchase
the future performance of the Property. Although the of the Property has been fully executed, delivered,
information contained herein is believed to be correct, and approved by Owner and its legal counsel, and any
Owner and its employees disclaim any responsibility conditions to Owner’s obligations thereunder have
for inaccuracies and expect prospective purchasers to been satisfied or waived. InvestCore Commercial is not
exercise independent due diligence in verifying all such authorized to make any representations or agreements InvestCore Commercial, Inc.
information. Further, InvestCore Commercial, Owner, on behalf of Owner.
3910 W. Point Loma Blvd, Suite B
San Diego, CA 92110
and its employees disclaim any and all liability for This Offering and the contents, except such information
representations and warranties, expressed and implied, which is a matter of public record or is provided in sources
2 | Carl’s Jr. - Amarillo, TX
TABLE OF CONTENTS
INVESTMENT SUMMARY 4
Executive Summary
Investment Highlights
PROPERTY DESCRIPTION 6
Street Map
Aerials
Site Plan
AREA OVERVIEW 10
Market Summary
Demographics
3 | Carl’s Jr. - Amarillo, TX
INVESTMENT SUMMARY EXECUTIVE SUMMARY Carl’s Jr. Lease Summary Billboard Lease Summary Tenant: TXAMARILLO45TH, LLC Tenant: The Lamar Companies Guarantor: Personal Guaranty Rent Commencement: ~February 2, 2015 Address: 5900 SW 45th Avenue, Amarillo, TX 79105 Lease Expiration: ~February 1, 2025 Building Size: ~2,712 SF Lease Term: 10 Years Land Size: ~30,037 SF Billboard Rent Schedule: Year Built: 2015 Term Years Annual Rent % Increase Lease Term: 20 Years (19 Remaining) Primary 1-4 $6,000 Rent Commencement: ~January 4, 2016 Primary 5-7 $6,200 3.33% Lease Expiration: ~January 31, 2036 Primary 8-10 $6,400 3.23% Options: Six (6) 5-year Options Lease Type: Absolute NNN Rent Increases: 5% every 5 Years in Primary Term and Options Carl’s Jr. Rent Schedule: Term Years Annual Rent % Increase Primary 1-5 $124,839 Primary 6-10 $131,081 5% Primary 11-15 $137,635 5% Primary 16-20 $144,517 5% Option 1 21-25 $151,743 5% Option 2 26-30 $159,330 5% OFFERING TERMS Option 3 31-35 $167,296 5% Purchase Price: $2,378,890 Option 4 36-40 $175,661 5% Cap Rate: 5.50% Option 5 41-45 $184,444 5% Total Net Operating Income: $130,839 Option 6 46-50 $193,666 5% 4 | Carl’s Jr. - Amarillo, TX
INVESTMENT SUMMARY
INVESTMENT HIGHLIGHTS
NEW LONG TERM ABSOLUTE NET (NNN) LEASE: HIGHLY VISIBLE LOCATION IN MATURE TRADE AREA:
• New 20 Year Absolute NNN Lease provides an investor Stable Cash Flow with • Well located, the store is on a major east-west thoroughfare, SW 45th Ave., with over
zero Landlord responsibilities. 30,000 cars passing the site daily. At the intersection of SW 45th Ave. & Bell St., there
are over 60,000 cars passing daily each with clear visibility of the Carl’s Jr. store.
• The Billboard lease provides additional income for 10 years helping to increase
the overall return and cash flow. • Amarillo High School, enrollment 2,248, is a short walk from the restaurant and
frequented by students at lunch.
• This is a Fee Simple Interest - Land & Building sale, not a Ground Lease, allowing
an investor to realize potential upside by using deprecation to increase the • Within 3-miles of the store there are approx. 94,000 residents earning a household
overall return. income of $76,270. Population in the immediate trade area is projected to grow by 1%
annually, while incomes are expected to rise by 1.83% annually over the next five years.
• Six (6) 5-Year Options to Renew at set rental increases.
STRONG NATIONAL BRAND:
• Limited competition - This is the only Carl’s Jr. in Amarillo. Carl’s Jr. is accelerating
growth in the state hoping to have 125 locations by 2021.
• The CKE Restaurant Brands, Carl’s Jr. & Hardee’s, operate over 3,664 locations
in 44 states and 38 foreign countries. In the past few years they have continually
added new stores, boosted AUV (Average Unit Volume), and increased revenue
at a manageable pace.
PERSONAL GUARANTY:
• The lease is personally guaranteed by the franchisee, an experienced restaurant
operator. *Contact agent for more details.
NEW CONSTRUCTION:
• New construction (2015) featuring the latest Carl’s Jr. prototype exterior and
interiors.
• The property is well located on the west side of town, where the majority of new
commercial development and new luxury homes are being built.
5 | Carl’s Jr. - Amarillo, TX
PROPERT Y DESCRIPTION STREET MAP 6 | Carl’s Jr. - Amarillo, TX
PROPERT Y DESCRIPTION
AERIAL
Amarillo
High School
SW 45TH AVE. - 40,320 CPD
James Bonham
Middle School
BELL ST. - 30,900 CPD
7 | Carl’s Jr. - Amarillo, TX
PROPERT Y DESCRIPTION
AERIAL
SW 45TH AVE. - 40,320 CPD
BELL ST. - 30,900 CPD
8 | Carl’s Jr. - Amarillo, TXPROPERT Y DESCRIPTION SITE PLAN 9 | Carl’s Jr. - Amarillo, TX
AREA OVERVIEW
MARKET SUMMARY
About Amarillo:
Amarillo, Texas is a unique and history-rich area in Potter County, and 85,209 in Randall). The Amarillo The Amarillo Economic Development Corporation
located where the southern plains meet the desert. metropolitan area has an estimated population of (AEDC) is funded by a city sales tax, and it provides
Amarillo and the surrounding Panhandle area are a 236,113 in four counties. aggressive incentive packages to existing and
unique blend of two American eras; working western prospective employers. In the mid-to-late 1990s, the
ranches and a vibrant twenty-first century economy- Amarillo is considered the regional economic center AEDC gained notoriety by sending mock checks to
making Amarillo the perfect mix of old and new Texas for the Texas Panhandle as well as Eastern New businesses across the country, placing full-page
traditions. Mexico and the Oklahoma Panhandle. The meat advertisements in The Wall Street Journal, and paying
packing industry is a major employer in Amarillo; an annual $1 million subsidy to American Airlines to
Amarillo is the 14th-most populous city in the state of about one-quarter of the United States’ beef supply is retain jet service. The AEDC is largely responsible
Texas, in the United States. It is also the largest city in processed in the area. The city is also the location of for bringing Bell Helicopter Textron’s development of
the Texas Panhandle, and the seat of Potter County. headquarters for the Texas Cattle Feeders Association. the V-22 Osprey hybrid aircraft and the future site of
A portion of the city extends into Randall County. The Petroleum extraction is also a major industry. Marine One assembly in Amarillo.
population was 190,695 at the 2010 census (105,486 The city’s largest employer in 2015 is the Amarillo
Independent School district, with 4,200 employees.
Tyson Foods, Inc. is next with 3,678 employees
followed by CNS Pantex, Baptist St. Anthony’s
Health Care System, City of Amarillo, Northwest
Texas Healthcare System, Amarillo College, Walmart,
and United Supermarkets. Other major employers
include Bell Helicopter Textron, Owens-Corning, and
ASARCO.
Approximately 14 million acres of agricultural land
surrounds the city with corn, wheat and cotton as
the primary crops. The Texas Panhandle, particularly
in Hereford, Texas, serves as a fast-growing milk
producing area as several multimillion-dollar state of
the art dairies were built in early 2000s.
10 | Carl’s Jr. - Amarillo, TXAREA OVERVIEW
Executive Summary
DEMOGRAPHICS 5400 SW 45th Ave, Amarillo, Texas, 79109 Prepared by Esri
Rings: 1, 3, 5 mile radii Latitude: 35.16159
Longitude: -101.89860
1 mile 3 miles 5 miles
Population
2000 Population 15,437 81,807 119,106
2010 Population 14,760 88,442 132,021
2016 Population 15,414 93,993 140,763
2021 Population 16,047 98,763 147,460
2000-2010 Annual Rate -0.45% 0.78% 1.03%
2010-2016 Annual Rate 0.70% 0.98% 1.03%
2016-2021 Annual Rate 0.81% 0.99% 0.93%
2016 Male Population 47.8% 47.9% 48.3%
2016 Female Population 52.2% 52.1% 51.7%
2016 Median Age 38.0 37.4 36.3
In the identified area, the current year population is 140,763. In 2010, the Census count in the area was 132,021. The rate of change since
2010 was 1.03% annually. The five-year projection for the population in the area is 147,460 representing a change of 0.93% annually from
2016 to 2021. Currently, the population is 48.3% male and 51.7% female.
Median Age
The median age in this area is 38.0, compared to U.S. median age of 38.0.
Race and Ethnicity
2016 White Alone 86.7% 85.7% 82.4%
2016 Black Alone 4.0% 3.9% 4.7%
2016 American Indian/Alaska Native Alone 0.8% 0.7% 0.8%
2016 Asian Alone 0.9% 2.0% 2.4%
2016 Pacific Islander Alone 0.1% 0.0% 0.0%
2016 Other Race 4.3% 4.7% 6.5%
2016 Two or More Races 3.2% 2.9% 3.1%
2016 Hispanic Origin (Any Race) 18.7% 19.3% 23.7%
Persons of Hispanic origin represent 23.7% of the population in the identified area compared to 17.9% of the U.S. population. Persons of
Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from
different race/ethnic groups, is 56.4 in the identified area, compared to 63.5 for the U.S. as a whole.
Households
2000 Households 6,981 34,454 49,470
2010 Households 6,656 37,749 54,852
2016 Total Households 7,012 40,096 58,517
2021 Total Households 7,329 42,136 61,329
2000-2010 Annual Rate -0.48% 0.92% 1.04%
2010-2016 Annual Rate 0.84% 0.97% 1.04%
2016-2021 Annual Rate 0.89% 1.00% 0.94%
2016 Average Household Size 2.19 2.33 2.38
The household count in this area has changed from 54,852 in 2010 to 58,517 in the current year, a change of 1.04% annually. The five-year
projection of households is 61,329, a change of 0.94% annually from the current year total. Average household size is currently 2.38,
compared to 2.38 in the year 2010. The number of families in the current year is 36,902 in the specified area.
11 | Carl’s Jr. - Amarillo, TXAREA OVERVIEW
Executive Summary
DEMOGRAPHICS 5400 SW 45th Ave, Amarillo, Texas, 79109 Prepared by Esri
Rings: 1, 3, 5 mile radii Latitude: 35.16159
Longitude: -101.89860
1 mile 3 miles 5 miles
Median Household Income
2016 Median Household Income $51,036 $56,583 $51,611
2021 Median Household Income $53,760 $61,955 $55,062
2016-2021 Annual Rate 1.05% 1.83% 1.30%
Average Household Income
2016 Average Household Income $66,786 $76,270 $71,202
2021 Average Household Income $71,187 $82,353 $76,958
2016-2021 Annual Rate 1.28% 1.55% 1.57%
Per Capita Income
2016 Per Capita Income $30,111 $32,609 $30,038
2021 Per Capita Income $32,230 $35,161 $32,427
2016-2021 Annual Rate 1.37% 1.52% 1.54%
Households by Income
Current median household income is $51,611 in the area, compared to $54,149 for all U.S. households. Median household income is
projected to be $55,062 in five years, compared to $59,476 for all U.S. households
Current average household income is $71,202 in this area, compared to $77,008 for all U.S. households. Average household income is
projected to be $76,958 in five years, compared to $84,021 for all U.S. households
Current per capita income is $30,038 in the area, compared to the U.S. per capita income of $29,472. The per capita income is projected to
be $32,427 in five years, compared to $32,025 for all U.S. households
Housing
2000 Total Housing Units 7,248 36,062 52,643
2000 Owner Occupied Housing Units 3,835 22,487 30,929
2000 Renter Occupied Housing Units 3,147 11,967 18,541
2000 Vacant Housing Units 266 1,608 3,173
2010 Total Housing Units 7,311 40,507 59,475
2010 Owner Occupied Housing Units 3,763 24,704 34,310
2010 Renter Occupied Housing Units 2,893 13,045 20,542
2010 Vacant Housing Units 655 2,758 4,623
2016 Total Housing Units 7,788 43,275 63,849
2016 Owner Occupied Housing Units 3,608 25,116 35,005
2016 Renter Occupied Housing Units 3,404 14,980 23,512
2016 Vacant Housing Units 776 3,179 5,332
2021 Total Housing Units 8,158 45,537 67,026
2021 Owner Occupied Housing Units 3,671 26,196 36,559
2021 Renter Occupied Housing Units 3,657 15,941 24,770
2021 Vacant Housing Units 829 3,401 5,697
Currently, 54.8% of the 63,849 housing units in the area are owner occupied; 36.8%, renter occupied; and 8.4% are vacant. Currently, in
the U.S., 55.4% of the housing units in the area are owner occupied; 32.9% are renter occupied; and 11.7% are vacant. In 2010, there
were 59,475 housing units in the area - 57.7% owner occupied, 34.5% renter occupied, and 7.8% vacant. The annual rate of change in
housing units since 2010 is 3.20%. Median home value in the area is $151,762, compared to a median home value of $198,891 for the U.S.
In five years, median value is projected to change by 3.07% annually to $176,508.
12 | Carl’s Jr. - Amarillo, TXINFORMATION ABOUT BROKERAGE SERVICES
Before working with a real estate broker, you should know that the duties of a with The Texas Real Estate License Act.The broker must obtain the written consent
broker depend on whom the broker represents. If you are a prospective seller of each party to the transaction to act as an intermediary. The written consent must
or landlord (owner) or a prospective buyer or tenant (buyer), you should know state who will pay the broker and, inconspicuous bold or underlined print, set forth
that the broker who lists the property for sale or lease is the owner’s agent. A the broker’s obligations as an intermediary. The broker is required totreat each party
broker who acts as a subagent represents the owner incooperation with the honestly and fairly and to comply with The Texas Real Estate License Act. A broker
listing broker. A broker who acts as a buyer’s agent represents the buyer. A who acts as an intermediary in a transaction:
broker may act as an intermediary between the parties if the parties consent in
writing. A broker can assist you in locating a property, preparing a contract or (1) shall treat all parties honestly;
lease, or obtaining financing without representing you. A broker is obligatedby (2) may not disclose that the owner will accept a price less than the asking price
law to treat you honestly. unless authorized inwriting to do so by the owner;
(3) may not disclose that the buyer will pay a price greater than the price
IF THE BROKER REPRESENTS THE OWNER submitted in a written offer unless authorized in writing to do so by the buyer; and
The broker becomes the owner’s agent by entering into an agreement with the (4) may not disclose any confidential information or any information that a party
owner, usually through a written-listing agreement, or by agreeing to act as a specifically instructs the broker in writing not to disclose unless authorized in writing
subagent by accepting an offer of subagency from the listing broker.A subagent to disclose the information or required to do so by The Texas Real Estate License Act
may work in a different real estate office. A listing broker or subagent can assist or a court order or if the information materially relates to the condition of the property.
the buyer but does not represent the buyer and must place the interests ofthe
owner first. The buyer should not tell the owner’s agent anything the buyer With the parties’ consent, a broker acting as an intermediary between the parties
would not want the owner to know because an owner’s agent must disclose to may appoint a person whois licensed under The Texas Real Estate License Act and
the owner any material information known to the agent. associated with the broker to communicate with and carry out instructions of one
party and another person whois licensed under that Act and associated with the
IF THE BROKER REPRESENTS THE BUYER broker to communicate with and carry out instructions of the other party.
The broker becomes the buyer’s agent by entering into an agreement to
represent the buyer, usually through a written buyer representation agreement. If you choose to have a broker represent you, you should enter into a written
A buyer’s agent can assist the owner but does not represent the owner and agreement with the broker that clearly establishes the broker’s obligations and your
must place the interests of the buyer first. The owner should not tell a buyer’s obligations. The agreement should state how and by whom the broker will be paid.
agent anything the owner would not want the buyer to know because a buyer’s You have the right to choose the type of representation, if any, you wish to receive.
agent must disclose to the buyer any material information known to the agent. Your payment of a fee to a broker does not necessarily establish that the broker
represents you. If you have any questions regarding the duties and responsibilities of
IF THE BROKER ACTS AS AN INTERMEDIARY the broker, you should resolve those questions before proceeding.
A broker may act as an intermediary between the parties if the broker complies
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