HOOTERS 3725 EAST FRANKLIN BLVD | CHARLOTTE (GASTONIA), NC - OFFERING MEMORANDUM - LoopNet
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HOOTERS
3725 EAST FRANKLIN BLVD | CHARLOTTE (GASTONIA), NC
OFFERING MEMORANDUM
Subject
Property
E. Franklin Blvd
± 37,000 ADT
2 PEGASUS INVESTMENTS
DEAL TEAM
MARC MEINHARDT
Associate
mmeinhardt@pegasusinvestments.com
O 310.691.1350 x 122
LIC # 01865441 (CA)
DAVID CHASIN
Managing Director
david@pegasusinvestments.com
O 310.691.1350 x 101
LIC # 01513027 (CA)
ADAM SLUTZKY
Broker of Record
LIC # 0225086439 (NC)
CONTENT
4
EXECUTIVE SUMMARY
10
PHYSICAL DESCRIPTION
11
TENANT PROFILE
12
MARKET AREA & LOCATION
OFFERING MEMORANDUM
EXECUTIVE SUMMARY
OFFERING SUMMARY
Pegasus Investments Real Estate Advisory Inc., an exclusive advisor to the seller,
is proud to present a single-tenant absolute triple net leased corporate Hooters
restaurant property in Charlotte (Gastonia), North Carolina. The property is
ideally located along East Franklin Blvd., with access to a 4-way signalized
intersection, offering superior visibility to over 37,000 cars per day along the
area’s most highly sought-after retail corridor. The current owners acquired
the property approximately 20 years ago, when it was first developed as a
Hooters. Since then, the property has enjoyed two decades of operation and
recently underwent an interior renovation further demonstrating the tenant’s
commitment to this location. Of further significance is the property’s large 2.14-
acre parcel which provides future redevelopment opportunities. Surging growth
of the area is acknowledged by brand-new retail developments both to the east
and west of the property, including a brand new 55,000 SF Aldi anchored retail
center which is scheduled to open for business in 2020.
Charlotte is the third fastest growing major city in the United States with a
population growth of 22% over the past 10-years. Charlotte also posted an
impressive 30% increase of millennial population in that time, outpacing all
major US cities including Houston, San Francisco, Denver and Seattle (Charlotte
Business Journal). Charlotte is now the home of the Lowe’s 153 million-dollar
global technology hub in the South End of Charlotte which is expected to create
2,000 new jobs with an average annual pay of $117,000. (Charlotte Observer).
In addition, two publicly traded companies, BB&T Bank and SunTrust Bank are
expected to complete their megamerger in 2019 to create one of the largest
national banks with a valuation of $66 Billion, and they have selected Hearst
Tower, in Charlotte for their brand new heaadquarters..
Price $1,800,000
Cap Rate 6.65%
NOI $119,922
4 PEGASUS INVESTMENTS
11-miles from the Charlotte International
Airport and a 20-minute drive to
downtown Charlotte.
± 102,000 ADT
75
Subject
Property
E. Franklin Blvd
± 37,000 ADT
E. Franklin Blvd is the largest
retail corridor in Gastonia.
55,000 SF Aldi-anchored
retail development under
construction - 100% pre-leased.
OFFERING
OFFERINGMEMORANDUM
MEMORANDUM 55
Great visibility and high traffic
counts along E. Franklin Blvd.
Absolute Triple Net (NNN), Corporate Backed Lease
with 20 Years of Occupancy
The property was developed specifically for Hooters and has
enjoyed over 20 years of continued occupancy.
The tenant recently exercised its option and remodeled the
Subject interior showing a continued commitment to this location.
Property
The lease is signed by HOA Restaurant Holder, LLC, a wholly
owned subsidiary of the corporate parent Hooters of America,
Inc.
The lease is 100% absolute triple net, allowing the investor to enjoy
truly passive income without any management or maintenance
obligations.
Low Price Point & Oversized Parcel w/Extra Parking
At $1.8M, the offering represents an extremely attractive cost
basis for a casual dining restaurant located in a major metro like
Charlotte. Pegasus has recently completed multiple Hooters sale
transactions - please contact agent for comps.
Situated on 2.14 acres of land, the property provides investors not
only a high-quality, national tenant, but also a large parcel which
could be extremely valuable to developers in the future.
The large parking field is currently striped for 55 cars, however
it is possible to add significant parking if needed in the future
(buyer to verify during due diligence).
Recent STNL transactions along E. Franklin in the past 3-years
include Verizon Wireless for $3.55M (completed by Pegasus),
E. Franklin Blvd Popeyes Restaurant for $2.22M, and local restaurant R.J. Gators
± 37,000 ADT for $3.03M. At only $1.8M, the property represents a phenomenal
investment opportunity.
6 PEGASUS INVESTMENTS
Major Commercial Corridor with 1.2 Million Square Feet of Retail
The property is situated along the most sought-after retail corridor in Gastonia, E. Franklin Blvd., which is home to leading national anchor tenants
including Walmart, Lowe’s, Sam’s Club and Kohl’s. Additionally, the E. Franklin Blvd. corridor is experiencing rapid growth with the active and recently
completed new retail and restaurant developments including Aldi, TJ Maxx, ULTA, Aspen Dental, LongHorn Steakhouse, Chick-Fil-A, Starbucks and
many more.
E. Franklin Blvd. runs parallel to and just 0.3 miles from the I-85 highway which is the largest highway in North Carolina, connecting Gastonia to
Charlotte, Greensboro, Durham, Spartanburg and Atlanta. Interstate 85 provides convenient access for commuters living in Gastonia and working in
Charlotte, which is only a 25 minute drive from the subject property.
Highly Trafficked Intersection, Great Access and Visibility
With 37,000 VPD and a nearby traffic light, the property enjoys phenomenal visibility from daily passersby. The signalized intersection allows
restaurant goers to easily cross E. Franklin Blvd and access Church Street, which leads directly into the subject property’s parking lot.
The traffic signal in front of the subject property allows for full directional access, including a dedicated left-turn lane for westbound traffic along E.
Franklin Blvd.
Exceptional access to I-85, providing convenient dining options for the 100k+ cars which travel the interstate on a daily basis.
Oversized 2.14 acre parcel
allowing for future
development upside.
Newly constructed
Take 5
OFFERING
OFFERING MEMORANDUM
MEMORANDUM 7
Across from 300,000+ SF
center anchored by Regal
Cinemas and Kohl’s.
E. Franklin Blvd
± 37,000 ADT
Subject
Property
55 parking spots
2.14 acres
8 PEGASUS INVESTMENTS
ANNUALIZED OPERATING DATA
Rent/ Cap
Monthly Rent Annual Rent
SF Rate
Current - 11/30/2023 $9,994 $119,922 $33.16 6.65%
12/01/2023 - 11/30/2028 $10,993 $131,914 $36.48 7.33%
12/01/2028 - 11/30/2033 $12,092 $145,106 $40.13 8.06%
12/01/2033 - 11/30/2038 $13,301 $159,616 $44.14 8.87%
TENANT SUMMARY
Lessee Name: HOA Restaurant Holder, LLC
Type of Ownership: Fee Simple
Lessee Entity Type: Corporate
Lease Type: NNN
Roof and Structure: Tenant Responsible
Term Remaining: 4.5 Years
Lease Commencement Date: 12/1/1998
Lease Expiration Date: 11/30/2023
Increases: 10% Increases Every 5 Years
Options: Three, 5-Year Options
9
OFFERING MEMORANDUM 9
PHYSICAL DESCRIPTION
BUILDING & SITE PROFILE
Property Name Hooters
3725 East Franklin Blvd
Address
Gastonia, NC 28056
Assessor’s Parcel Number (APN) 116913
Zoning C-3, General Commecial
Gross Leasable Area ± 3,616 SF
Lot Size ± 2.14 Acres
Year Built / Renovated 1999 / 2018
POPULATION 1-MILE 3-MILE 5-MILE
2019 Estimate 3,006 41,539 105,304
Number of Stories 1 POPULATION
1-MILE 3-MILE 5-MILE
GROWTH
Number of Buildings 1 2019-2024 Estimate 4.09% 6.19% 6.41%
INCOME 1-MILE 3-MILE 5-MILE
2019 Est. Average
Parking Spaces ± 55 Surface Spaces $70,878 $66,195 $67,109
Household Income
Parking Ratio 15 : 1,000 SF
10 PEGASUS INVESTMENTSTENANT PROFILE
HOOTERS | www.hooters.com
# of Locations ±430
# of Employees ±10,001
Headquartered Atlanta, GA
Year Founded 1983
OVERVIEW
Hooters is a chain of restaurants owned by Hooters of America, LLC, an
Atlanta-based operator and franchiser of over 430 locations in 29 countries.
The first Hooters opened October 4, 1983, in Clearwater, Florida. Since its
founding in 1983, the Hooters concept has remained true to its roots with
the current logo, uniform, menu and ambiance resembling those of the
original location. It is this consistency that has allowed Hooters to achieve
continued success and high rankings amongst the inudstry’s growth
leaders. The chain’s casual beach-themed establishments feature music,
sports on large flat screens, and a menu that includes seafood, sandwiches,
burgers, salads, and of course, Hooters’ original chicken wings.
35 YEARS, 430 RESTAURANTS, 29 COUNTRIES POSITIONED FOR CONTINUED EXPANSION
• Despite aggressive competition and constantly evolving consumer In December 2017, Hooters opened its 200th corporate location, and has
tastes, Hooters has stood the test of time for over three decades. added a dozen more in the months since. The chain is one of the highest-
• International expansion has been a key driver of growth and is grossing restaurants in the country, beating sales at Ruby Tuesday, Macaroni
expected to continue strengthening the financial security and future of Grille, Dave & Busters, Chuck E. Cheese’s, Hard Rock Cafe, and California
the company. Pizza Kitchen, according to the data firm Technomic. Internationally,
the brand is growing even more rapidly. In the last six months, Hooters
• Hooters’ success has been driven by the basics; it’s a burger and wing
outposts have opened in Germany, Spain, Mexico, Costa Rica, Japan —
restaurant that has a full bar and caters to a broad range of customers
with 14 additional locations slotted for Spain and Portugal over the next
from sports fans to business travelers.
three years.
OFFERING MEMORANDUM 11MARKET AREA CHARLOTTE, NC
A region that is equal parts old-fashioned southern charm and high-energy cosmopolitan bustle, the
OVERVIEW Charlotte metropolitan area is located in the heart of the Southeast within the southern Piedmont
of North Carolina. The Charlotte, North Carolina region is composed of 16 counties, including four
counties in South Carolina, with the city of Charlotte serving as the hub. Charlotte is the state’s
capital city, currently on the rise with its own culture, culinary sophistication and unique feel that’s
making it a more enticing place for people from all over the world to settle down. Throughout the last
decade, Charlotte has undergone a significant transformation, which is only anticipated to continue,
as evidenced by the numerous construction cranes across the skyline: it has emerged as a standalone
destination area.
Bordering South Carolina in the mid-Atlantic, Charlotte is the largest and most accessible city between
Washington, D.C., and Dallas, Texas. The city’s highly efficient and growing interstate highway system
offers drivers convenient access to the city; I-77 and I-85 connect it to cities in the Northeast, Southwest
and Midwest. Charlotte Douglas International Airport is a major international hub and the national hub
of US Airways. As the 8th largest airport in the United States for total operations, the airport averages
655 flights daily by 11 major airlines and 14 regional carriers providing non-stop service to 179 cities.
12 PEGASUS INVESTMENTSECONOMIC SNAPSHOT FORTUNE 500
Charlotte is a modern urban and major U.S. financial center banking. In addition, two publicly traded companies, BB&T COMPANY
grown up dramatically from its previous agricultural and
regional banking roots. Today the city is reputedly the
Bank and SunTrust Bank are expected to complete their mega-
merger in 2019 to create one of the largest national banks with
HEADQUARTERS
headquarters for more banks than any city outside New York. a valuation of $66 Billion, and they have selected Hearst Tower,
A diverse commercial and industrial economy has developed in Charlotte, for their brand new headquarters. Bank of America
around the financial industry with a mix of contemporary
skyscraper architecture and well-preserved 19th-century GASTONIA, NC Lowe’s
neighborhoods in Uptown Charlotte. This Charlotte Center city
has seen remarkable growth over the last decade. Numerous Gastonia is the second largest satellite city in Charlotte. The Duke Energy
residential units continue to be built Uptown, including over city’s economy has benefited from its location within a major
20 skyscrapers under construction, recently completed, or in population center, its proximity to Charlotte, access to major Nucor
the planning stage. Many new restaurants, bars and clubs now interstate highways, and the Charlotte-Douglas International
operate in the Uptown area. Airport. Over the past decade, the City’s economy has Sonic Automotive
diversified through a variety of commercial, industrial, trade,
Bank of America, the United States’ second largest financial and tourism sectors. Sealed Air Corp.
institution by total assets, is headquartered in Charlotte, and
along with other regional banking and financial services Interstate 85 links Gastonia directly with Charlotte, Greensboro,
companies, is located in the Uptown central business district. Durham, Spartanburg, and Atlanta. The property is located
Charlotte has become the regional headquarters for East Coast on a major retail corridor in Gastonia, including 1,200,000
operations of Wells Fargo and Microsoft. Charlotte also serves million square-feet of retail, including national tenants such as
as the headquarters for Wells Fargo’s capital markets activities Walmart, Home Depot, Lowe’s, Regal Cinemas, Target, Chick-
including sales and trading, equity research, and investment Fil-A, Starbucks, Chipotle, and Sam’s Club.
#1
CITY FOR
GROWTH IN
NUMBER OF
BUSINESSES
-WALLETHUB.COM
OFFERING
OFFERING MEMORANDUM
MEMORANDUM 13DEAL TEAM
MARC MEINHARDT
Associate
mmeinhardt@pegasusinvestments.com
O 310.691.1350 x 122
LIC # 01865441 (CA)
DAVID CHASIN
Managing Director
david@pegasusinvestments.com
O 310.691.1350 x 101
LIC # 01513027 (CA)
ADAM SLUTZKY
Broker of Record
LIC # 0225086439
3725 EAST FRANKLIN BLVD | GASTONIA, NC
CONFIDENTIALITY & DISCLAIMER STATEMENT
The information contained in this Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Pegasus Investments and
should not be made available to any other person or entity without the written consent of Pegasus Investments. This Offering Memorandum has been prepared to provide summary,
unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.
The information contained herein is not a substitute for a thorough due diligence investigation. Pegasus Investments has not made any investigation, and makes no warranty or
representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and
improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements
thereon, or the financial condition of the business prospects of any tenants, or any tenant’s plans or intentions to continue its occupancy of the subject property.
The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Pegasus Investments has not verified, and will not verify, any
of the information contained herein, nor has Pegasus Investments conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding
the accuracy or completeness of the information provided. Some or all of the photographs contained within may have been altered from their original format. All potential buyers must
take appropriate measures to verify all of the information set forth herein.
14 PEGASUS INVESTMENTSABOUT PEGASUS INVESTMENTS
Pegasus Investments Real Estate Advisory (“Pegasus Investments”) represents a broad range of clients, from institutional
investment firms to developers, high net worth individuals, family trusts and partnerships in connection with the purchase
& sale and leasing of high quality investment properties nationwide. Pegasus Investments is one of the foremost leading
advisory firms within the single tenant and multi-tenant triple net leased retail property category having completed in
excess of $1 billion in volume since 2014. 1901 Avenue of the Stars, Suite 630
Los Angeles, CA 90067
Pegasus Investments offers a highly differentiated advisory platform given its ability to collaborate within a vertically
www.pegasusinvestments.com
integrated environment with Pegasus Capital Markets and Pegasus Asset Management to ensure a seamless transaction 310.691.1350
for all parties involved. The result is highly customized, creative, streamlined execution. LIC # 01961545 (CA)
MARC MEINHARDT DAVID CHASIN KEN CHASIN TREVOR NELSON BRAD KRITZER
Associate Managing Director Founder Managing Director Managing Director
mmeinhardt@pegasusinvestments.com david@pegasusinvestments.com ken@pegasusinvestments.com tnelson@pegasusinvestments.com bkritzer@pegasusinvestments.com
O 310.691.1350 x 122 O 310.691.1350 x 101 O 310.691.1350 x 100 O 310.691.1350 x 104 O 310.691.1350 x 106
LIC # 01865441 (CA) LIC # 01513027 (CA) LIC # 00776468 (CA) LIC # 01495150 (CA) LIC # 01918111 (CA)
KEVIN SHELBURN DAYLIN ACKERMAN KATHERINE WEAVER TONY VEILLER STEPHEN APFEL
Senior Vice President Vice President Vice President Senior Associate Associate
kshelburn@pegasusinvestments.com dackerman@pegasusinvestments.com kweaver@pegasusinvestments.com tveiller@pegasusinvestments.com sapfel@pegasusinvestments.com
O 310.691.1350 x 105 O 310.691.1350 x 114 O 310.691.1350 x 115 O 310.691.1350 x 113 O 310.691.1350 x 119
LIC # 01861409 (CA) LIC # 02011508 (CA) LIC # 02004937 (CA) LIC # 01995952 (CA) LIC # 02076409 (CA)
ANDREW COHEN MICHAEL SPECTOR MADELINE ALGER DANIELLA MORENO TALIA TONTI
Senior Associate - Leasing Director of Sales & Operations Marketing Associate Marketing Coordinator Office Manager
acohen@pegasusinvestments.com mspector@pegasusinvestments.com malger@pegasusinvestments.com dmoreno@pegasusinvestments.com ttonti@pegasusinvestments.com
O 310.402.0211 O 310.691.1350 x 109 O 310.691.1350 x 121 O 310.691.1350 x 123 O 310.691.1350 x 108
LIC # 01996379 (CA) LIC # 01969966 (CA)
ABOUT PEGASUS
Pegasus is a boutique commercial real estate investment and advisory firm based in Los Angeles, California. Specializing in retail shopping centers, single tenant net leased and
multifamily properties throughout the United States, Pegasus has consistently delivered on its 30 year reputation of providing high quality, white glove service throughout all stages of the
investment sales process. Pegasus provides its clients, which include high net worth private investors, family trusts, private & public REITs, local and regional developers and syndicators
with advisory services encompassing underwriting, market research, investment sales and asset management. Pegasus continues to set the bar for high quality, boutique investment
sales brokerage and advisory by relying on its industry-leading talent, which include experienced institutional and private sector investors.
OFFERING MEMORANDUM
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