LONGHORN STEAKHOUSE (GL) - 4845 Valley View Blvd NW Roanoke, Virginia 24012 - 11 YEAR ABSOLUTE NET CORPORATE GUARANTEED INVESTMENT OFFERING - LoopNet
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11 YEAR ABSOLUTE NET CORPORATE GUARANTEED INVESTMENT OFFERING LONGHORN STEAKHOUSE (GL) 4845 Valley View Blvd NW Roanoke, Virginia 24012
TABLE OF CONTENTS
TABLE OF CONTENTS
I. Executive Profile II. Location Overview III. Market & Tenant Overview
Property Overview Photographs Demographic Report
Investment Highlights Aerial Market Overview
Executive Summary Site Plan Tenant Overview
Map
CORPORATE GUARANTEED INVESTMENT OFFERING
PROPERTY OVERVIEW
PROPERTY
Price: $1,938,095
OVERVIEW:
Cap Rate: 5.25%
Net Operating Income: $101,750*
2024 Net Operating Income: $106,700
2024 Cap Rate: 5.50%
Rental Escalations: 5% on 9/01/2024
Renewal Options: Four 5-Year (10% in each option)
Lease Expiration: 8/31/2029
Tenant: RARE Hospitality Management d/b/a LongHorn Steakhouse
(Wholly owned subsidiary of Darden Restaurants, Inc.)
Year Built: 2011
Lease Type: Ground Lease
Building Size: 6,231 SF
Land Size: 1.13 Acres (Estimate)
*NOI Includes a $2,750 shopping center “maintenance contribution” paid by tenant. Landlord is entitled to collect the “main-
tenance charge” without offset.
**A lease extension is currently approved, however the amendment documenting the extension is pending.
CORPORATE GUARANTEED INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
INVESTMENT Location Highlights
HIGHLIGHTS: • Outparcel to Valley View Mall, a 800,000 square foot regional shopping mall anchored by Macy’s, JCPenney, Belk
and Sears
• Located just off of Interstate 581 (60,000 VPD)
• Other retailers in the immediate area include a Walmart Supercenter, Target, Best Buy, Regal Cinema and Home
Depot
• Near numerous schools including William Fleming High School (1,582 students), William Ruffner Middle
School, Breckingridge Middle School, Preston Park Elementary School and Round Hill Elementary School
• In close proximity to the Roanoke-Blacksburg Regional Airport and Advance Auto Parts Corporate Headquar-
ters
Tenant Highlights
• Approximately 11 years remaining on lease
• No landlord responsibilities – NNN Ground Lease
• Corporate lease
• 10% rental escalations in each option
• 5% rental escalation in 2024
CORPORATE GUARANTEED INVESTMENT OFFERING
EXECUTIVE SUMMARY
EXECUTIVE The Boulder Group and Lee & Associates are pleased to exclusively market for sale a single ground leased LongHorn
SUMMARY: Steakhouse property located in Roanoke, Virginia. The ground lease is corporately guaranteed by LongHorn
Steakhouse and has approximately 11 years remaining in the primary term. The lease features 10% rental escalations
in each option and requires no landlord responsibilities. Additionally, there are four 5-year renewal options. There is
a 5% rental escalation in 2024.
The LongHorn Steakhouse property is strategically located in a regional trade area and is an outparcel to Valley View
Mall, a 800,000 square foot regional shopping mall anchored by Macy’s, JCPenney, Belk and Sears. The property is
located just off Interstate 581 (60,000 VPD) near numerous other retailers including a Walmart Supercenter, Target,
Best Buy, Regal Cinema and Home Depot. William Fleming High School (1,582 students), William Ruffner Middle
School, Breckingridge Middle School, Preston Park Elementary School and Round Hill Elementary School are all
located close to the property generating consistent traffic to the site. The LongHorn Steakhouse is also in close
proximity to the Roanoke-Blacksburg Regional Airport, multiple hotels and the Advance Auto Parts Corporate
Headquarters.
LongHorn Steakhouse is known for a “Passion for Grilling” fresh, tender, juicy steaks and offers guests the widest
variety of cuts and numerous preparations, including its signature bone-in Outlaw Ribeye, all served in a relaxed,
warm atmosphere inspired by a rancher’s home. LongHorn Steakhouse has more than 490 restaurants across 40 states.
The tenant is RARE Hospitality Management, a wholly owned subsidiary of Darden Restaurants, Inc., doing business
as LongHorn Steakhouse. Darden Restaurants, Inc. is publicly traded (NYSE: DRI) with a market capitalization in
excess of $13* billion and is and investment grade rated company (Standard & Poor’s: BBB)*.
*As of August 2018
CORPORATE GUARANTEED INVESTMENT OFFERING
PHOTOGRAPHS CORPORATE GUARANTEED INVESTMENT OFFERING
AERIAL CORPORATE GUARANTEED INVESTMENT OFFERING
AERIAL CORPORATE GUARANTEED INVESTMENT OFFERING
SITE PLAN CORPORATE GUARANTEED INVESTMENT OFFERING
MAP Roanoke’s location allows for deliv- ery within one day to most mar- kets in the Southeast, Northeast, Mid-Atlantic, and Ohio Valley Roanoke’s economy developed around the Norfolk and Western Railroad, with a strong emphasis on HEADQUARTERS manufacturing Numerous hotels and business travelers in the trade area due to its location near airport CORPORATE GUARANTEED INVESTMENT OFFERING
DEMOGRAPHIC REPORT
DEMOGRAPHIC
2010 Population 1-Mile 3-Mile 5-Mile
REPORT:
Total Population 7,379 67,926 136,700
Total Households 3,193 28,711 58,402
Famlies 1,831 16,425 34,094
2018 Population 1-Mile 3-Mile 5-Mile
Total Population 7,781 70,453 141,956
Total Households 3,305 29,643 60,334
Famlies 1,877 16,665 34,692
Income
Median Household Income $36,108 $36,455 $42,833
Average Household Income $44,961 $47,865 $57,891
Annual Population Growth 0.44% 0.36% 0.38%
2023 Population (Estimate) 1-Mile 3-Mile 5-Mile
Total Population 7,954 71,738 144,693
Total Households 3,361 30,149 61,395
Famlies 1,901 16,819 35,075
Median Household Income $39,720 $40,385 $48,391
Average Household Income $52,011 $55,516 $67,451
CORPORATE GUARANTEED INVESTMENT OFFERINGMARKET OVERVIEW
MARKET Roanoke, Virginia
OVERVIEW: Roanoke is an independent city in the U.S. state of Virginia. As of the 2010 census, the
population was 97,032. It is located in the Roanoke Valley of the Roanoke Region of Virginia.
Roanoke is the largest municipality in Southwest Virginia, and is the principal municipality of
the Roanoke Metropolitan Statistical Area (MSA), which had a 2010 population of 308,707. It
is composed of the independent cities of Roanoke and Salem, and Botetourt, Craig, Franklin,
and Roanoke counties. Bisected by the Roanoke River, Roanoke is the commercial and cultural hub of much of Southwest
Virginia and portions of Southern West Virginia.
Roanoke’s economy developed around the Norfolk and Western Railroad, with a strong emphasis on manufacturing.
Roanoke’s economic history also includes Sun Belt characteristics, as it was once a center for the garment industry.
Surrounding areas have relied on traditional industries of the rural South such as textiles and furniture manufacturing,
which have lost jobs to offshore outsourcing. The city is the health care and retail hub of a large area, driving the
expansion of Carilion Health System and Valley View Mall. Advance Auto Parts is headquartered in Roanoke and
has expanded through the acquisition of other chains to become one of the largest auto parts retailers in the country.
Roanoke’s location allows for delivery within one day to most markets in the southeast, northeast, mid-atlantic, and
Ohio Valley, which has made it a distribution center for such companies as Orvis, Elizabeth Arden, and Hanover Direct.
United Parcel Service (UPS) maintains a major facility at the Roanoke Regional Airport.
CORPORATE GUARANTEED INVESTMENT OFFERINGTENANT OVERVIEW
TENANT LongHorn Steakhouse
OVERVIEW: LongHorn Steakhouse is known for fresh, boldly seasoned and expertly grilled steaks – like the signature bone-in Outlaw
Ribeye® – all served in a relaxed, warm atmosphere inspired by a rancher’s home. Founded in 1981 in Atlanta, Georgia, the
restaurant began with one man’s passion for perfect steak but had very few guests to convince. Then a freak snowstorm hit
Atlanta in 1982, stranding motorists and drawing them to one of the only hospitable places available - a restaurant then called
LongHorn Steaks Restaurant & Saloon. Tales of expertly grilled steaks soon spread like wildfire, and the legend of LongHorn
was born.
By 1990, the restaurant had spread throughout the East, Midwest and Southwest United States and Puerto Rico. In 2007, the
restaurant, now called LongHorn Steakhouse, was purchased by Darden Restaurants, Inc. (NYSE: DRI). Today, LongHorn
Steakhouse is headquartered in Orlando, Florida and has more than 480 restaurants across 40 states.
Website: www.longhornsteakhouse.com
Number of Locations: 480+
Founded: 1981
Headquarters: Orlando, Florida
Parent Company: Darden Restaurants, Inc. (NYSE: DRI)
RARE Hospitality International, Inc. (RARE)
RARE Hospitality International, Inc. (RARE) is a wholly-owned subsidiary of Darden Restaurants, Inc. It owns and operates
substantially all of Darden’s LongHorn Steakhouse and The Capital Grille restaurants, either directly, or through subsidiaries,
including RARE Hospitality Management, Inc. (RHM), a wholly-owned subsidiary of RARE, and Capital Grille Holdings, Inc.,
a wholly-owned subsidiary of RHM. RARE has other direct and indirect subsidiaries that own and operate certain restaurants
and were formed primarily for purposes of complying with state liquor licensing laws, for management of overhead and other
corporate expenses.
CORPORATE GUARANTEED INVESTMENT OFFERINGTENANT OVERVIEW
TENANT Darden Restaurants, Inc.
OVERVIEW: Darden Restaurants, Inc. is the premier full-service restaurant company featuring a portfolio of category-leading brands
that include Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V’s and Yard
House. Each of its brands enjoys industry-leading average unit volumes that together generate approximately $8 billion
in annual sales across more than 1,500 locations. Headquartered in Orlando, Florida, Darden employs more than 200,000
team members who serve more than 320 million meals annually. Darden has been named to the FORTUNE “100 Best
Companies to Work For” list on an annual basis.
Darden Restaurants, Inc. is a publicly traded company on the New York Stock Exchange using the symbol “DRI”. The
company is investment grade rated with a Standard & Poor’s rating of BBB.
Website: www.darden.com
Founded: 1938
Number of Locations: 1,500+
Stock Symbol: DRI (NYSE)
Credit Rating (S&P): BBB ®
Headquarters: Orlando, Florida
CORPORATE GUARANTEED INVESTMENT OFFERINGDISCLAIMER STATEMENT
DISCLAIMER The information contained in the following Offering Memorandum is proprietary and strictly confidential. It
STATEMENT: is intended to be reviewed only by the party receiving it from The Boulder Group and/or Lee & Associates
and should not be made available to any other person or entity without the written consent of The Boulder
Group and/or Lee & Associates.
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. The Boulder Group and Lee &
Associates has not made any investigation, and makes no warranty or representation.
The information contained in this Offering Memorandum has been obtained from sources we believe to be
reliable; however, The Boulder Group and Lee & Associates have not verified, and will not verify, any of the
information contained herein, nor has The Boulder Group or Lee & Associates conducted any investigation
regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or
completeness of the information provided. All potential buyers must take appropriate measures to verify all
of the information set forth herein.
CORPORATE GUARANTEED INVESTMENT OFFERINGRandy Blankstein
President
847.562.0003
randy@bouldergroup.com
John Feeney
Senior Vice President
847.562.9280
john@bouldergroup.com
3520 Lake Avenue, Suite 203
Wilmette, IL 60091
www.bouldergroup.com
Daniel Barnes
Principal
314.400.4004
dbarnes@lee-associates.com
1 McBride & Son Center Dr, Suite 140
St. Louis, MO 63005
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