Investment offering HWY 55 BURGERS, SHAKES & FRIES - 3870 Patrick Way Elizabeth City, NC 27909 - Wertz ...
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HWY 55 BURGERS, SHAKES & FRIES
3870 Patrick Way
investment offering Elizabeth City, NC 27909
NEW PROTOTYPE LOCATION
TABLE OF CONTENTS DISCLAIMER
This Marketing Package was prepared by Wertz Real Estate Investment Services and David B Zacharia
(“Broker”) solely for the use of prospective buyer considering the purchase of the Property within (the
“Property”) and is not to be used for any other purpose. Neither the Broker nor the Owner of the Property
make any representation or warranty, expressed or implied, as to the completeness or accuracy of the
material contained in the Marketing Package.
Prospective purchasers of the Property are advised that changes may have occurred in the physical or
financial condition of the Property since the time this Marketing Package or the financial statements herein
were prepared. Prospective purchasers acknowledge that this Marketing Package and the financial
statements herein were prepared by Broker, and not by Owner, and are based upon assumptions or events
beyond the control of both Broker and Owner, and therefore may be subject to variation. Other than current
and historical revenue and operating expense figures for the Property, Owner has not, and will not, provide
Broker or any prospective purchaser with any projections regarding the Property. Prospective purchasers
of the Property are advised and encouraged to conduct their own comprehensive review and analysis of
the Property.
Financial Overview 3 The Marketing Package is a solicitation of interest only and is not an offer to sell the Property. The Owner
and Broker expressly reserve the right, at their sole discretion, to reject any or all expression of interest or
Tenant Overview
offers to purchase the Property and expressly reserve the right, at their sole discretion, to terminate
4 discussions with any entity at any time with or without notice.
The Owner shall have no legal commitments or obligations to any entity reviewing the Marketing Package
Executive Summary 5 or making an offer to purchase the Property unless and until such offer is approved by Owner pursuant to
its Governing Authorities and the signature of the Owner or Owner’s representative is affixed to a Real
Estate Purchase Agreement prepared by Owner.
Property Photos 6-7 This Marketing Package is confidential. By accepting the Marketing Package, you agree (i) that you will
hold and treat the Marketing Package and its contents in the strictest confidence, (ii) that you will not
Location Map 8 photocopy or duplicate any part of the Marketing Package, (iii) that you will not disclose the Marketing
Package or any of its contents to any entity without the prior authorization of the Owner, and (iv) that you
will not use the Marketing Package in any fashion or manner detrimental to the Owner or Broker.
Area Map 9 Broker has obtained the information contained in this Marketing Package from sources we believe to be
reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation
Market Overview 10 about it. It is submitted subject to the possibility of errors, omissions, changes of price, rental or other
conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions,
assumptions, or estimates for example only, and they may not represent current or future performance of
Demographic Report 11 the Property. You and your tax and legal advisors should conduct your own investigations of the physical
condition of the Property and of the financial performance of its future Ownerships.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT BROKER FOR MORE
DETAILS.
Limited Nonresident Commercial Real Estate Broker:
John R. Wertz Greg LaBarre
Tel: (619) 218-6427 Tel: (619) 997-1242
jwertz@wertzrealestate.com glabarre@wertzrealestate.com Listed with North Carolina broker
CA Lic No. 01448585 CA Lic. No. 02069301 David B Zacharia Lic. No. 299302
financial overview
OFFERING SUMMARY
PRICE $2,550,000
DOWN PAYMENT 100% / $2,550,000
RENTABLE SQUARE FEET 2,949 SF
cap rATE 6.00%
year built 2021
lot size 35,284 +/- SF
type of ownership Fee Simple
REPRESENTATIIVE PHOTO
TENANT SUMMARY
ANNUALIZED OPERATING DATA
TENANT TRADE NAME Hwy 55 Burgers, Shakes & Fries
Rent Increases Annual Rent Monthly Rent
OWNERSHIP Private
Years 1-5 $153,000.00 $12,750.00
LEASE GUARANTOR Corporate
Years 6-10 $168,300.00 $14,025.00
LEASE TYPE Absolute NNN
Years 11-15 $185,130.00 $15,427.50
roof & structure Tenant Responsible
Years 16-20 $203,643.00 $16,970.25
original lease term Twenty (20) Years
Years 21-25 (Option 1) $224,007.30 $18,667.28
rent commencement date 06/01/2021
Years 26-30 (Option 2) $246,408.03 $20,534.00
lease expiration date 05/31/2041 Years 31-35 (Option 3) $271,048.00 $22,587.40
term remaining on lease Twenty (20) Years
increases 10% Every 5-Years BASE RENT $153,000.00
OPTIONS TO RENEW (3) 5-Year Options NET OPERATING INCOME $153,000.00
RIGHT OF FIRST REFUSAL No TOTAL RETURN yr-1 6.00% $153,000.00
The information contained herein has been obtained from the owners or from other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. References to square
footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. All properties subject to change or withdrawal without notice. Wertz Real Estate Investment Services, Inc.
TENANT overview
PROPERTY NAME Hwy 55 Burgers, Shakes & Fries
HWY 55 BURGERS, SHAKES & FRIES PROPERTY ADDRESS 3870 Patrick Way
Founded in North Carolina in 1991, Hwy 55 has grown from a Elizabeth City, NC 27909
local American diner serving Burgers, Cheesesteaks and PROPERTY TYPE Net Lease Quick Service Restaurant
in-house made Frozen Custard, to a community staple in 13
States. With over 130 locations and more on the way, Hwy 55 has oWNERSHIP Private
transformed from a humble, single location, to one of the largest LEASE GUARANTOR Corporate
restaurant chains in the United States. Not forgetting its formida-
ble days, Hwy 55 has maintained its homely, humble feeling by
TERM REMAINING ON LEASE Twenty (20) Years
delivering authentic hospitality while providing guests with visibili- OPTIONS TO RENEW (3) 5-Year Options
ty into the kitchen to see their orders being made.
lease type Absolute NNN
Like many successful restaurant chains, Hwy 55 has always LANDLORD RESPONSIBILITY None
adapted and catered to its customers while staying true to its mis-
sion. With the addition of a drive-thru lane, Hwy 55 is once again INCREASES 10% Every 5-Years
raising the bar to best serve their customers. It is actions such as year 1 net operating income $153,000
this that has helped Hwy 55 and its founder, Kenney Moore,
receive accolades like the Best Burger in 2012 nationwide via Bur- no. of locations 130+
gerBusiness.com, named a top 500 franchise in the United States headquartered Mount Olive, NC
by Entrepreneur magazine, and a Next 20 restaurant brand by
Nation’s Restaurant News. website www.hwy55.com
years in the business Since 1991
The information contained herein has been obtained from the owners or from other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. References to square
footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. All properties subject to change or withdrawal without notice. Wertz Real Estate Investment Services, Inc.
executive summary
INVESTMENT OVERVIEW INVESTMENT HIGHLIGHTS
The subject property is a newly constructed Hwy 55 Burgers,
• Brand New 2021 Construction (New Prototype)
Shakes & Fries drive-thru located in Elizabeth City, NC. The brand
new 20-year absolute NNN lease is corporately guaranteed by
Hwy 55 and includes 10% rental increases every 5-years in the • 20-Year Absolute NNN Lease w/ 10% Increases Every 5-Years
primary term and in the (3) five-year option periods. The property
is strategically located across from a busy Wal-Mart Supercenter
directly off Interstate-17. The site benefits from its excellent • 6.96% Average Cap over Initial Lease Term
visibility and frontage along one of the most heavily trafficked
thoroughfares in Elizabeth City (Halstead Blvd), which boasts
over 23,000 vehicles per day. • Corporate Guarantee from Hwy 55 (130+ Locations)
National retailers in the immediate vicinity include Verizon,
GameStop, Wal-Mart, TJ-Maxx, Ross Dress for Less, Hibbett • Traffic Counts Exceed 23,000 Vehicles Per Day
Sports, Hobby Lobby, Starbucks, McDonald’s, Jersey Mike’s,
Great Clips, Murphy USA, Zaxby’s, ALDI, T-Mobile, Discount Tire, • Located Directly Across from Wal-Mart Supercenter
7-Eleven, Aspen Dental, Dollar Tree, AT&T, and many more. This
is an excellent opportunity for an investor to purchase a stable,
long term investment with zero landlord responsibility.
REPRESENTATIIVE PHOTO
The information contained herein has been obtained from the owners or from other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. References to square
footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. All properties subject to change or withdrawal without notice. Wertz Real Estate Investment Services, Inc.
subject property The information contained herein has been obtained from the owners or from other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. All properties subject to change or withdrawal without notice. Wertz Real Estate Investment Services, Inc.
subject property The information contained herein has been obtained from the owners or from other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. All properties subject to change or withdrawal without notice. Wertz Real Estate Investment Services, Inc.
LOCATION MAP The information contained herein has been obtained from the owners or from other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. All properties subject to change or withdrawal without notice. Wertz Real Estate Investment Services, Inc.
AREA MAP The information contained herein has been obtained from the owners or from other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. All properties subject to change or withdrawal without notice. Wertz Real Estate Investment Services, Inc.
MARKET overview
VIRGINIA BEACH / NORFOLK / NEWPORT NEWS
Hampton Roads is the name of both a body of water that serves as a wide channel for the James, Nansemond and Elizabeth rivers between Old Point Comfort and Sewell's Point where the
Chesapeake Bay flows into the Atlantic Ocean, and the surrounding metropolitan region located in the Southeastern Virginia and Northeastern North Carolina portions of the Tidewater region.
Comprising the Virginia Beach–Norfolk–Newport News, VA–NC, metropolitan area and an extended combined statistical area that includes the Elizabeth City, NC, micropolitan statistical area
and Kill Devil Hills, NC, micropolitan statistical area, Hampton Roads is known for its large military presence, ice-free harbor, shipyards, coal piers, and miles of waterfront property and beaches,
all of which contribute to the diversity and stability of the region's economy. The body of water known as Hampton Roads is one of the world's largest natural harbors (more accurately a roadstead
or "roads"). It incorporates the mouths of the Elizabeth, Nansemond, and James rivers, together with several smaller rivers, and empties into the Chesapeake Bay near its mouth leading to the
Atlantic Ocean.
The land area includes a collection of cities, counties, and towns on the Virginia Peninsula and in South Hampton Roads. Some of the outlying areas further from the harbor may or may not be
included as part of "Hampton Roads", depending upon the organization or usage. For example, as defined for federal economic purposes, the Hampton Roads metropolitan statistical area
includes two counties in northeastern North Carolina and two counties in Virginia's Middle Peninsula. The Virginia Beach–Norfolk–Newport News, VA–NC, MSA has a population of over 1.7
million, making it the 37th-largest metropolitan area in the United States. The Combined Statistical Area includes four additional counties in North Carolina, pushing the regional population to
over 1.8 million residents, the 32nd largest CSA in the country.
Virginia Beach-Norfolk-Newport Ranked # 38 Home to Four Fortune 500
News is the 37th Largest Metro in the in the Nation with a Gross Domestic Companies (Smithfield Foods, Norfolk
U.S. with over 1.8-Million Residents Product of $100 Billion Southern, Dollar Tree, & Huntington Ingalls)
The information contained herein has been obtained from the owners or from other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. References to square
footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. All properties subject to change or withdrawal without notice. Wertz Real Estate Investment Services, Inc.DEMOGRAPHIC REPORT
REPRESENTATIVE PHOTO
population 3 MILE 5 MILES 10 miles households 3 MILE 5 MILES 10 miles
2026 Projection 8,288 28,939 47,058 2021 Est. Avg. HH Income $77,762 $62,909 $69,044
2021 Estimate 7,993 28,313 45,763 2026 Projection 2,916 10,743 17,891
2010 Census 7,632 27,906 45,234 2021 Est. Households 2,801 10,502 17,399
Percent Change 2010-2021 4.73% 1.46% 1.17% 2010 Census 2,543 10,337 16,894
Percent Change 2021-2026 3.69% 2.21% 2.83% Percent Change 2010-2021 10.14% 1.60% 2.99%
Median Age 41.20 38.32 40.16 Percent Change 2021-2026 4.11% 2.30% 2.83%
The information contained herein has been obtained from the owners or from other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. References to square
footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. All properties subject to change or withdrawal without notice. Wertz Real Estate Investment Services, Inc.Wertz Real Estate Investment Services
3138 Roosevelt Street, Suite L
Carlsbad, CA 92008
Tel: (619) 218-6427
Fax: (858) 408-1830
www.wertzrealestate.com
Limited Nonresident Commercial Real Estate Broker
Listed with North Carolina broker
David B Zacharia license 299302represent only you (as a buyer’s agent
willing for them to represent both you and the seller at
the same time (as a dual agent
hen buying or selling real estate, you may method for determining the sales commission or fee and them represent only the seller (seller’s agent or subagent Agents are required to review this with you and must retain
By signing, I acknowledge that the agent named below
Duties to Buyer:
to represent you and represent you, they must promote your best interests
agency relationship” is most likely to happen if an agent be loyal to you follow your lawful instructions
buyer’s agent with
If you are selling real estate, you may want to “list” decisions use reasonable skill, care and diligence, and Buyer or Seller Name (Print or Type)
occurs and you have not already agreed to a dual agency
relationship in your listing agreement, your listing agent
to represent you in your dealings with buyers as your seller’s will ask you to amend your listing agreement to permit the its agents to be your buyer’s agent, they may not give any Buyer or Seller Signature
agent
times the same agents work for both the buyer and the dual agent to advance the
Buyer or Seller Name (Print or Type)
Be sure to read and understand the listing agreement dual until you make this agreement with your buyer’s agent,
agent you should avoid telling the agent anything you would
Although the dual agent owes them the same duties, buyers not want a seller to know Buyer or Seller Signature
is representing you as your agent or simply assisting Duties to Seller: and sellers can prohibit dual agents from divulging certain Unwritten Agreements: To make sure that you and
promote your best interests be loyal to you follow your
lawful instructions provide you with all material facts that Date
use reasonable skill, care David B Zacharia
and diligence, and account for all monies they handle for
This brochure addresses the various types of Firm Name
option (when available) may allow each “designated agent”
David B Zacharia 299302
about you to prospective buyers or their agents without your If you choose the “dual agency” option, remember
Agent Name License Number
until you sign that since a dual agent’s loyalty is divided between parties
It should help you decide which relationship you want the listing agreement, you should avoid telling the listing with competing interests, it is especially important that you
agent anything you would not want a buyer to know have a clear understanding of what your relationship is
Services and Compensation: To help you sell your with the dual agent and what the agent will be doing for David B Zacharia 299302 (Complete, if applicable)
Agent Name License Number When showing you property and assisting you in the
helping
useful information about the various services real estate David B Zacharia
you price your property advertising and marketing your
represent the SELLER. For more information, see “Seller’s
property giving you all required property disclosure forms Firm Name
agents can provide buyers and sellers, and it will help for you to complete negotiating for you the best possible When buying real estate, you may have several Agent Working with a Buyer” in the brochure.
price and terms reviewing all written offers with you and
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