Chick-Fil-A 314 12TH AVE NE, NORMAN, OK 73071 - LoopNet
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Chick-Fil-A
Representative Photo
OFFERING MEMORANDUM
™
Chick-Fil-A
3 1 4 1 2 T H AV E N E , N O R M A N , O K 7 3 0 7 1
1
Offering Memorandum Contents 3 INVESTMEN T HI GHLI G HTS 4 FINAN C I AL OVE RV I E W 8 TENAN T OVE RVI E W 10 AREA OVE RVI E W E XC L U S I V E L I S T I NG A G E N T: Ste el e M c D on al d Associate s t e e l e. m c do nald@ m at t h e w s.c om D IR ( 2 14) 6 9 2- 226 5 MO B ( 615 ) 417- 36 31 L ic e n s e No. 6 9 4333 (T X ) B r a d e n C r oc ke t t Associate VP & Director b r a d e n.c r o c ket t @ m at t h e w s.c om D IR ( 2 14) 6 9 2- 2040 MO B ( 7 14) 345 - 6 206 L ic e n s e No. 019 46 071 ( CA) J e s si c a De a r nl ey BROKER OF RECORD LI C # 17 07 87 (OK) 2 Representative Photo
Chick-Fil-A
Investment Highlights
LEASE HIGHLIGHTS:
• Brand New 15 Year Corporate NNN Ground Lease
• Large Investment by Tenant – Chick-Fil-A only leases the ground and paid for the cost of the building
• 10% rental increases every 5 Years provide a strong hedge against inflation
• Chick-Fil-A has Eight (8) Five (5) -Year options to extend after the base term
TENANT HIGHLIGHTS:
• Chick-Fil-A average sales per unit were $4.4M in 2016, despite only being open 6 days a week
• Chick-Fil-A is dominating the competition boasting average sales of almost TWICE as much as the next highest QSR (Whataburger at $2.7M), & more than
4x as much as KFC
• Over the past 5 Years, Chick-Fil-A’s total sales have increased nearly 73% from $4.6 Billion to $7.9 Billion
• Chick-Fil-A now has over 2,200 units, and is consistently one of the QSR sectors fastest growing chains
• Chick-Fil-A is the most popular fast food chain in 24 States, including Oklahoma
• In order to process $4.4MM on average Chick-Fil-A maximizes efficiencies with Double Drive Throughs and expedient convenience
LOCATION HIGHLIGHTS:
• Norman is the third-largest city in Oklahoma with a population over 122k
• The subject site is only about 1-Mile from the University of Oklahoma, which has over 30k students enrolled
• This Property is the closest freestanding Chick-Fil-A to the University
• There is a population of over 105k people within a 5-mile radius of this site
• Population has increased an estimated 10% in the 5-Mile Radius of this site since 2010
• 12th Ave NE see almost 30,000 VPD
™
3
Offering Memorandum N
Property Name Address
Chick-Fil-A 314 12th Ave NE
Location Zip Code
Norman, OK 73071
Financ ia l O verview
List Price Cap Rate
$2,823,529 4.25%
Year Built Square Footage
2018 ± 4,988
4 Representative Photo
Fi nancia l A n a l ys i s
Annualized Operating Data
Monthly
Annual Rent Rent/SF Cap Rate
Rent
*8/17/2018-1/30/2019 $8,500.00 $102,000.00 $20.45
1/31/2019-1/30/2024 $10,000.00 $120,000.00 $24.06 4.25%
1/31/2024-1/30/2029 $11,000.00 $132,000.00 $26.46 4.68%
1/31/2029-1/30/2034 $12,100.00 $145,200.00 $29.11 5.14%
1/31/2034-1/30/2039 $13,310.00 $159,720.00 $32.02 5.66%
1/31/2039-1/30/2044 $14,641.00 $175,692.00 $35.22 6.22%
1/31/2044-1/30/2049 $16,105.10 $193,261.20 $38.75 6.84% The Offering
1/31/2049-1/30/2054 $17,715.61 $212,587.32 $42.62 7.53% Property Name Chick-Fil-A
1/31/2054-1/30/2059 $19,487.17 $233,846.04 $46.88 8.28% 314 12th Ave NE
Property Address Norman, OK 73071
1/31/2059-1/30/2064 $21,435.88 $257,230.56 $51.57 9.11%
College Blvd ± 40,116
1/31/2064-1/30/2069 $23,579.48 $282,953.76 $56.73 10.02% APN NC29 9 2W 29140
1/31/2069-1/30/2074 $25,937.42 $311,249.04 $62.40 11.02%
Site Description
*Rent Credit: Seller will credit the difference in rent between closing and rental increase on 1/31/2019 Number of Stories One
Year Built 2018
Gross Leasable Area (GLA) ± 4,988 SF
Tenant Summary Lot Size ± 1.64 Acres (71,710 SF)
Type of Ownership Fee Simple
Tenant Trade Name Chick-Fil-A Landscaping Professional
Type of Ownership Ground Lease Topography Generally Level
Lease Guarantor Corporate
Lease Type Ground Lease
Roof & Structure Tenant Responsible
Original Lease Term 15
Rent Commencement Date 3/20/2018
Lease Expiration Date 1/30/2034
Term Remaining on Lease ± 15 Years
Options Eight, 5-Year Options
Increases 10% Every 5 Years
5
Offering Memorandum
Norman
High School
Alameda
Square
Irving
Middle School
Colonial Estates
Shopping Center
The University of
Oklahoma Ronald
Reagan
Elementary
School
6
Chick-Fil-A
12the Ave NE ± 31,000 ADT
Alameda St ± 30,000 ADT
7
Offering Memorandum
Tenant O ver vi ew
8 Representative PhotoChick-Fil-A
Property Name Chick-fil-A
Ownership Private
No. of Locations ± 2,000
No. of Employees ± 6,152
Headquartered Atlanta, Georgia
Website www.Chick-fil-A.com
Year Founded 1967
TENANT OVERVIEW
Chick-fil-A operates the second largest fast-food chain that specializes in chicken menu items, with more than 2,000 restaurants in 43 states and Washington, DC.
The chain is popular for its breaded chicken sandwiches and waffle fries, as well as other menu items such as chicken salads, chicken strips, and chicken nuggets.
Most of its outlets are freestanding units that offer drive-through service as well as dine-in seating. The company also has a significant number of mall-based stores.
The company has built a successful restaurant brand by sticking to its core menu items and expanding slowly outward from its customer base in the Southeast. As
it grows, the chain faces increasing competition from other national chains specializing in chicken.
STRATEGY
Unlike most fast-food franchises, Chick-fil-A owns most of its restaurants and licenses franchisees to run the units for a fixed annual income plus a share in the profits.
This unique arrangement lowers the initial cost to its franchisees and, the company feels, results in more operator loyalty and in less turnover than in other chains.
(Under traditional franchising arrangements, local operators own their restaurants independent of the franchiser and pay royalties to use the chain’s brand name.)
Chick-fil-A does license its concept to some foodservice contractors and concessions operators.
GEOGRAPHIC OUTREACH
In addition to its quick-service flagship chain, the company operates full-service restaurant concepts including Chick-fil-A Dwarf Houses and Truett’s Grill. Chick-fil-A’s
portfolio includes nearly 300 major shopping mall locations and more than 270 locations serving college campuses, hospitals, and airports through licensed food-
service providers.
9Offering Memorandum
Area O ver vi ew
10Chick-Fil-A
Norman, OK
Norman is the third largest city in the state of Oklahoma and is ten miles south of the state capital, Oklahoma City.
It is included in the Oklahoma City Metropolitan Statistical Area, which along with the railroad enabled Norman to
flourish into a prominent city.
Property Demographics
POPULATION 1-Mile 3-Mile 5-Mile HOUSEHOLDS 1-Mile 3-Mile 5-Mile
2023 Projection 12,661 80,318 113,356 2023 Projection 5,538 32,454 46,941
2018 Estimate 12,240 76,734 108,120 2018 Estimate 5,330 30,882 44,572
2000 Census 11,707 70,900 98,326 2000 Census 5,047 28,290 40,070
Growth 2010 - 2018 3.44% 4.67% 4.84% Growth 2018 - 2023 3.90% 5.09% 5.32%
INCOME 1-Mile 3-Mile 5-Mile
2018 Est. Average
$57,785 $66,293 $72,461
Household Income
Economic Snapshot
Perfectly positioned for state, regional, and national commerce, Norman has a great business climate and low operating costs that
continue to attract new businesses. Existing businesses within the city have been induced to expand as well. Notable examples
of new and recently expanding businesses include: Agio Technology, Cimarron Energy, Evans Enterprises, Hitachi Computer
Products, and NextThought.
Norman has prominent higher education and related research industries, as it is home to the University of Oklahoma.
Currently, Norman is involved in a downtown revitalization project as well as a project that will guide Norman and
its citizens into the 21st century. The Norman 2020 plan was designed to address future population growth and
infrastructure problems and offer solutions to solve these problems before they occur.
11Offering Memorandum The University of Oklahoma Also known as OU, the University of Oklahoma is the largest university in the state with approximately 30,000 students enrolled. The Princeton Review has named the university one of its “Best Value” colleges. Furthermore, it is ranked first per capita among public universities in enrollment of National Merit Scholars. Well-known for its sporting events, the University of Oklahoma’s teams are known as the Sooners. Every fall, over 85,000 people routinely come together to partake in football gameday festivities and attend the games. The university is home to several museums, including Fred Jones Jr. Museum of Art, which contains the largest collection of French impressionist art ever given to an American university, as well as the Oklahoma Museum of Natural History. The University of Oklahoma employs over 10,700 personnel across three campuses, making it a significant driver of Norman’s economy. The estimated wage and salary income generated in the 2015 Fiscal Year had a $606 million-dollar impact on the regional economy. The campus is a center for scientific and technological research, having contributed over $277 million to such programs in 2009. 12
Chick-Fil-A
Oklahoma City, OK
Oklahoma City, the capital and largest city in the state, is a major center for the oil
industry and related manufacturing. Known as "The Big Friendly," it is the capital
of and the largest city in the state of Oklahoma. The county seat of Oklahoma
County, the city ranks 27th among United States cities in population and as
the eighth-largest city by land area. Oklahoma City continues to be ranked on
Forbes "Best of Lists," including as one of the Best Places for Business and
Careers in 2013 and 2014.
There are plenty of things to do in the city, which is home to over 50 legendary
attractions such as the National Cowboy and Western Museum and the Myriad
Botanical Gardens. Visitors can also enjoy the Frontier City Theme Park, which
is designed to duplicate a frontier town from the 1800s. Meanwhile, tourists
can indule in Oklahoma City's world-class shopping, restaurants and hotels.
From discovering the sights and sounds of the Old West in Stockyards City
and watching the horse races at Remington Park to dinner and show in historic
Bricktown, the capital city is a tourist haven.
CULTURE
Situated in the middle of an active oil field in the Great Plains region, Oklahoma
City has one of the largest livestock markets in the world. Oil derricks can be
found throughout the capitol grounds, indicative of the important role oil, natural
gas, petroleum products and related industries play in the local economy. As the
capital of the city, the federal government also has substantial influence on the
city’s livelihood at Tinker Air Force Base and the United States Department of
Transportation’s Mike Monroney Aeronautical Center.
In addition to being a regional power center of government and energy exploration,
Oklahoma City features a diversified economy that also includes the information
technology, services, health services and administration sectors. Two Fortune 500
companies are headquartered in the city, namely Chesapeake Energy Corporation
and Devon Energy Corporation. Additionally, it is home to Love’s Travel Stops &
Country Stores, which is ranked thirteenth on Forbes’ list of private companies.
The city has recently undergone a major renaissance, particularly in its downtown
areas funded in part by a well-supported sales tax initiative. Downtown is clean
and modern with unusually attractive parks and a nicely restored “Bricktown”
historic residential and entertainment district with a canal and promenade.
13Offering Memorandum
C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T
This O f f er ing Me mo r a n du m co n t a i n s s e l e ct i nform ati on pertai ni ng to the busi ness and affai rs of the Chick-Fil-A located at 314 12th Ave NE, Norman, OK
(“Prop er t y” ). I t ha s be e n p r e p a r e d by M a t t h e ws Real E state Investm ent Servi c es. Thi s O fferi ng Memoran d u m may n ot b e all-in clu s ive or con t ain all
o f th e inf o r ma t io n a p r o s p e ct i v e p u r ch a s e r m ay desi re. The i nform ati on c ontai ned i n thi s O fferi ng M emoran d u m is con fid en t ial an d fu rn is h ed s olely
f o r th e p ur p o se o f a r e v i e w by a p r o s p e ct i v e purc haser of the Property. It i s not to be used for any ot h er pu rpos e or mad e availab le t o an y ot h er
p erso n w it ho ut t he w r i t t e n co n s e n t o f S e l l e r or Matthews Real E state Investm ent Servi c es. The m ate rial is b as ed in part u pon in format ion s u pplied
b y the Selle r a nd in p a r t u p o n f i n a n ci a l i n f o r m ati on obtai ned from sourc es i t deem s rel i abl e. O wner, n or t h eir officers , employees , or agen t s makes
any re p r e s ent a t io n o r w a r r a n t y, e x p r e s s o r i m pl i ed, as to the ac c urac y or c om pl eteness of thi s O fferin g M emoran d u m or an y of it s con t en t s an d n o
leg al lia b ilit y is a s s u m e d o r s h a l l be i m p l i e d wi th respec t thereto. Prospec ti ve purc hasers shoul d make t h eir own project ion s an d form t h eir own
con clu sio ns w it ho ut r e l i a n ce u p o n t h e m a t e r i al c ontai ned herei n and c onduc t thei r own due di l i gence.
By ack no w le d g ing y o u r r e ce i p t o f t h i s O f f e r i n g Mem orandum for the Property, you agree:
1. T he Of f e r ing M e m o r a n du m a n d i t s co n t e nts are c onfi denti al ;
2. Yo u w ill ho ld i t a n d t r e a t i t i n t h e s t r i ct e st of c onfi denc e; and
3. Yo u w ill no t , di r e ct l y o r i n di r e ct l y, di s c l ose or perm i t anyone el se to di sc l ose thi s O fferi ng M emoran d u m or it s con t en t s in an y fas h ion or
ma nner d e t r im e n t a l t o t h e i n t e r e s t o f t h e Sel l er.
Owner a nd Ma t t he w s Re a l Es t a t e In v e s t m e n t Servi c es expressl y reserve the ri ght, at thei r sol e d is cret ion , t o reject an y an d all expres s ion s of
intere st o r o f f e r s t o p u r ch a s e t h e P r o p e r t y a n d to term i nate di sc ussi ons wi th any person or enti ty reviewin g t h is Offerin g M emoran d u m or makin g an
o f f er t o p ur c ha se t h e P r o p e r t y u n l e s s a n d u n t i l a wri tten agreem ent for the purc hase and sal e of the P ropert y h as b een fu lly execu t ed an d d elivered .
If y ou w ish no t t o p u r s u e n e g o t i a t i o n s l e a di n g to the ac qui si ti on of the Property or i n the future you d is con t in u e s u ch n egot iat ion s , t h en you agree
to p urg e a ll ma t e r ial s r e l a t i n g t o t h i s P r o p e r t y i nc l udi ng thi s O fferi ng Mem orandum .
A p ros p e c t iv e p ur c h a s e r ’s s o l e a n d e xcl u s i v e ri ghts wi th respec t to thi s prospec ti ve transac ti on, the Propert y, or in format ion provid ed h erein or in
con ne c t io n w it h t he s a l e o f t h e P r o p e r t y s h a l l be l i m i ted to those expressl y provi ded i n an exec ute d Pu rch as e Agreemen t an d s h all b e s u b ject t o
th e ter ms t her e o f. I n n o e v e n t s h a l l a p r o s p e c ti ve purc haser have any other c l ai m s agai nst Sel l er or M at t h ews Real Es t at e I n ves t men t Services or
any o f t heir a f f ilia t e s o r a n y o f t h e i r r e s p e ct i v e offi c ers, Di rec tors, sharehol ders, owners, em pl oyees , or agen t s for an y d amages , liab ilit y, or cau s es
o f acti o n r ela t ing t o t h i s s o l i ci t a t i o n p r o ce s s or the m arketi ng or sal e of the Property.
This Of f e r ing Me mo r a n du m s h a l l n o t be de e m e d to represent the state of affai rs of the Property or con s t it u t e an in d icat ion t h at t h ere h as b een n o
ch ange in t he s t a t e o f a f f a i r s o f t h e P r o p e r t y si nc e the date thi s O fferi ng Mem orandum .
14Chick-Fil-A
™
E XC L U S I V E L I S T I NG
A G E N T:
Ste e l e M c D o n a l d
Associate
s t e e l e. m c do nald@m at th e w s.c om
D IR ( 2 14) 6 9 2- 226 5
MO B ( 6 1 5 ) 417- 36 31
L ic e n s e No. 6 9 4333 (T X )
B r a de n C r o c ke t t
Associate VP & Director
b r a d e n.c r o c ket t @m at t h e w s.c om
D IR ( 2 14) 6 9 2- 2040
MO B ( 714) 345 - 6 206
L ic e n s e No. 019 46 071 ( CA)
J e s s ica De a r n l e y
BROKER OF RECORD
LI C # 1707 87 (OK)
Chick-Fil-A
3 1 4 1 2 T H AV E N E , N O R M A N , O K 7 3 0 7 1
15You can also read
