MarketRetail OFFERING MEMORANDUM - Hardee's 20-Yr. Ground Lease Jackson, TN - Market Retail Partners
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OFFERING MEMORANDUM
Hardee’s 20-Yr. Ground Lease
MarketRetail
P A R T N E R S LLC
Jackson, TN
marketretailpartners.com
CONFIDENTIALITY & DISCLOSURE
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party
receiving it from Market Retail Partners and should not be made available to any other person or entity without the written consent of Market Retail Partners.
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 here-in is not a substitute for a thorough due diligence investigation. Market Retail Partners
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, Market Retail Partners has not verified, and will not verify, any of the information contained herein, nor has
Market Retail Partners 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.
Seller reserves the right, for any reason to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further,
Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to
the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and broker
from any liability respect thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
Kevin Fulton Garron Wright
Managing Partner Partner
Mobile: 615.796.4076 | kfulton@marketretailpartners.com Mobile: 312.560.0385 | gwright@marketretailpartners.com
License #: 313966 License #: 311483
7003 Chadwick Drive | Suite 208 | Brentwood, TN 37027 | Office: 615.345.4455
MarketRetail
P A R T N E R S LLC
TABLE OF CONTENTS
ABOUT THE INVESTMENT
Summary
Highlights
Property Photos
Site Plan
Aerials
Maps
FINANCIAL INFORMATION
Rent Roll
TENANT SUMMARY
Company Information
AREA OVERVIEW
City Information
Demographics
MarketRetail
P A R T N E R S LLC
ABOUT THE INVESTMENT
MarketRetail
P A R T N E R S LLC
ABOUT THE INVESTMENT
Summary
Market Retail Partners is pleased to offer for sale to qualified investors an ADDRESS
absolute triple net ground lease investment opportunity located in Jackson,
Tennessee. 1560 S. Highland Ave.
Jackson, TN
The subject property is a free-standing absolute triple net ground lease to
Saddle Peak LLC d.b.a. Hardee’s with approximately 19 years remaining on the PROPERTY SPECIFICS
lease term. The lease has attractive rental increases of 10% every ve years as
well as in the four, 5-year renewal options. Purchase Price $1,320,000.00
CAP Rate 5.00%
This property is situated on a highly visible corner at the signalized Rentable Area 54,389 SF
intersection of S. Highland Ave. and Harts Bridge Road with over 32,000 Lot Size 1.25 Acres
vehicles passing daily.
Year Built 2015
Jackson is the county seat of Madison County, Tennessee. Located 70 miles
east of Memphis, it has long been associated with the large city in trade.
Its total population was 65,211 at the 2010 census and 67,265 in the 2012
Census estimate. Jackson is the primary city of the Jackson, Tennessee
metropolitan area, which is included in the Jackson-Humboldt, Tennessee
Combined Statistical Area. Jackson is Madison County’s largest city, and the
second largest city in West Tennessee next to Memphis.
The above information has been obtained from sources we believe to be reliable, however we do not take responsibility for its correctness.
MarketRetail
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MarketRetail
A P RA TR NT NE ER R S LLC
S LLC
ABOUT THE INVESTMENT
Highlights
BRAND NEW FREE-STANDING HARDEE’S | New construction prototype AMPLE LAND AND PARKING | Versatile lot size of 1.25 acres / 54,389 SF
developed by tenant completed in 2015. that can accommodate a building larger than the existing building footprint.
NEW 20-YEAR ABSOLUTE NNN GROUND LEASE | Hardee’s has LOCATED NEXT TO SOUTH SIDE HIGH SCHOOL | South Side is situated
approximately 19 years remaining on its initial 20-year lease term which is set on 32 acres at the intersection of Hwy. 45 South and Harts Bridge Road. The
to expire in 2035. campus consists of five buildings, a 2000 seat football stadium, concessions
and a TSSAA regulation size field, two gymnasiums, and softball field. The
ATTRACTIVE SCHEDULED RENTAL INCREASES | 10% every 5 years student population is under 1,000, with a staff of over seventy.
including four (4), five (5) year renewal options.
SOLID DEMOGRAPHICS | Jackson has as strong demographic makeup with
20+ UNIT OPERATOR - GUARANTEED BY SADDLE PEAK LLC | Saddle Peak nearly 32,000 people residing within 5 miles, and an average household
LLC. owns and operates 23 locations in Arkansas, Mississippi and Tennessee. income of nearly $40,000.
HIGHLY VISIBLE SIGNALIZED CORNER LOCATION | The site benefits from JACKSON, TN | Jackson is the county seat of Madison County, Tennessee.
excellent visibility and frontage along S. Highland Ave. at the signalized Located 70 miles east of Memphis, it has long been associated with the large
intersection of Harts Bridge Rd across from Sonic. city in trade. Its total population was 65,211 at the 2010 census and 67,265
in the 2012 Census estimate. Jackson is the primary city of the Jackson,
MAJOR CORRIDOR | Highway 45/Highland Ave. is a primary north and Tennessee metropolitan area, which is included in the Jackson-Humboldt,
south corridor that benefits from 32,785 vehicles passing by daily. Area Tennessee Combined Statistical Area. Jackson is Madison County’s largest
tenants include Wal-Mart, Lowe’s, Food Giant, Save-A-Lot, Goodwill, Verizon, city, and the second largest city in West Tennessee next to Memphis.
At&t, Popeye’s, McDonald’s, Wendy’s, Taco Bell, Long John Silvers and Sonic.
TOURISM DOLLARS | Located on Interstate 40, Jackson is halfway between
EXCELLENT RESIDUAL VALUE | Hardee’s has invested in the development of Memphis’ Beale Street and Nashville’s Music Row, and lies within a day’s
this property and shown their strong desire to be in this location. If Hardee’s drive of 75% of the nations major markets and has over 2,500 hotel rooms.
were to ever vacate, the landlord would be able to recapture the building
Hardee’s paid to construct and either sell the property or re-lease to another
tenant.
The above information has been obtained from sources we believe to be reliable, however we do not take responsibility for its correctness.
MarketRetail
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MarketRetail
A P RA TR NT NE ER R S LLC
S LLC
ABOUT THE INVESTMENT
The above information has been obtained from sources we believe to be reliable, however we do not take responsibility for its correctness.
MarketRetail
P A R T N E R S LLC
ABOUT THE INVESTMENT
The above information has been obtained from sources we believe to be reliable, however we do not take responsibility for its correctness.
MarketRetail
P A R T N E R S LLC
ABOUT THE INVESTMENT
The above information has been obtained from sources we believe to be reliable, however we do not take responsibility for its correctness.
MarketRetail
P A R T N E R S LLC
ABOUT THE INVESTMENT
The above information has been obtained from sources we believe to be reliable, however we do not take responsibility for its correctness.
MarketRetail
P A R T N E R S LLCFINANCIAL INFORMATION
MarketRetail
P A R T N E R S LLCFINANCIAL INFORMATION
Rent Roll
TENANT TERM MONTHLY RENT ANNUAL RENT
Hardee's Years 1-5 $5,500.00 $66,000.00
Years 6-10 $6,050.00 $72,600.00
Years 11-15 $6,655.00 $79,860.00
Years 16-20 $7,320.50 $87,846.00
Option 1 Years 21-25 $8,052.55 $96,630.60
Option 2 Years 26-30 $8,857.81 $106,293.66
Option 3 Years 31-35 $9,743.59 $116,923.03
Option 4 Years 36-40 $10,717.94 $128,615.33
The above information has been obtained from sources we believe to be reliable, however we do not take responsibility for its correctness.
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MarketRetail
A P RA TR NT NE ER R S LLC
S LLCTENANT SUMMARY
MarketRetail
P A R T N E R S LLCTENANT SUMMARY
Tenant Overview Lease Abstract
Tenant Saddle Peak LLC dba Hardee’s
Lease Type Absolute NNN Ground Lease
Lot Size 1.25 Acres | 54,389 Square Feet
Lease Commencement July 9, 2015
Term Expiration June 30, 2035
Saddle Peak LLC dba Hardee’s Annual Rent $66,000.00
Saddle Peak LLC owns and operates 23 Hardee’s restaurants in Arkansas, Mississippi
Renewal Options Four (4) – Five (5) Year Options
and Tennessee.
Hardee’s | www.hardees.com
Hardee’s is an American restaurant chain, which predominantly operates in the
South and Midwest states. It has evolved through several corporate ownerships since Rent Schedule
its establishment in 1960. It is currently owned and operated by CKE Restaurants.
Along with its sibling restaurant chain, Carl’s Jr., Hardee’s is the 5th largest fast-food YEARS MONTHLY RENT ANNUAL RENT
restaurant chain in the United States after Subway, McDonald’s, Burger King and Years 1-5 $5,500.00 $66,000.00
Wendy’s. As of 2014, there are 1,995 Hardee’s locations in 30 states.
Years 6-10 $6,050.00 $72,600.00
Years 11-15 $6,655.00 $79,860.00
Carl Karcher Enterprises, Inc. | www.ckr.com
Founded by Carl’s Jr. entrepreneur Carl Karcher in 1964, Carl Karcher Enterprises Years 16-20 $7,320.50 $87,846.00
(CKE) today owns, operates, franchises and/or licenses 3,243 quick-service Option 1 Years 21-25 $8,052.55 $96,630.60
restaurants (QSR) in 43 states, primarily under the brand names Carl’s Jr. and Option 2 Years 26-30 $8,857.81 $106,293.66
Hardee’s, both of which offer innovative, premium products intended to appeal to a Option 3 Years 31-35 $9,743.59 $116,923.03
target audience of young, hungry guys. CKE Restaurants is the parent company of
Option 4 Years 36-40 $10,717.94 $128,615.33
Carl’s Jr., Hardee’s, Green Burrito, and Red Burrito restaurant chains. The company
employs a dual branding technique for Carl’s Jr. with Green Burrito. Similarly, Hardee’s
has a dual branding strategy with Red Burrito. Carl’s Jr. primarily operates in western
US and West Coast regions. In 2010 CKE Restaurants, Inc. was purchased by the
private equity firm Apollo Management. The company’s business strategy focuses
on strengthening its competitive position, growing same-store sales, enhancing
profitability of both the Carl’s Jr. and Hardee’s concepts, and differentiating the Carl’s
Jr. and Hardee’s brands from the brands of competitors. The company had $1.28
billion in revenue in 2012.
The above information has been obtained from sources we believe to be reliable, however we do not take responsibility for its correctness.
MarketRetail
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MarketRetail
A P RA TR NT NE ER R S LLC
S LLCAREA OVERVIEW
MarketRetail
P A R T N E R S LLCAREA OVERVIEW
City Information
with the large city in trade. Its total population was
65,211 at the 2010 census and 67,265 in the 2012 MARKET OVERVIEW
Census estimate. Jackson is the primary city of County Madison
the Jackson, Tennessee metropolitan area, which Area in Square Miles 49.5
is included in the Jackson-Humboldt, Tennessee Elevation 410’
Combined Statistical Area. Jackson is Madison
Market Region Memphis
Located on Interstate 40, halfway between County’s largest city, and the second largest city in
Year Incorporated 1845
Memphis’ Beale Street and Nashville’s Music Row, West Tennessee next to Memphis. It is home to the
Latitude/Longitude 35°37'59"N 88°49'15"W
Jackson is at the center of a 21-county tour area Tennessee Supreme Court’s courthouse for West
Tennessee, as Jackson was the major city in the Distance From Memphis 70 miles
and the intersection of Music and Rock-A-Billy
Highways. This prime location lies within a day’s west when the court was established in 1834.
drive of 75% of the nations major markets. Jackson
is also within an hour or two drive to numerous Source: Wikipedia, City of Jackson, jacksontn.com
state parks, including Shiloh National Military Park;
Reelfoot Lake, which America’s bald eagle calls
home in winter; and Chickasaw State Park and
Natchez Trace State Park with their rustic trails and
picnic areas. Paris Landing State Park and Pickwick
State Park – northeast and southeast respectively
from Jackson – sit on the scenic Tennessee River
and offer boating, golf courses, lodging and other
recreational activities. The Hatchie River National
Wildlife Refuge remains the longest continuous
stretch of naturally meandering river in the lower
Mississippi River Valley.
Jackson is the county seat of Madison County,
Tennessee and based on the 2012 estimate, is
the seventh largest city in Tennessee. Located 70
miles east of Memphis, it has long been associated
The above information has been obtained from sources we believe to be reliable, however we do not take responsibility for its correctness.
MarketRetail
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MarketRetail
A P RA TR NT NE ER R S LLC
S LLCAREA OVERVIEW
Demographics
POPULATION 1 MILE 3 MILES 5 MILES MEDIAN HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES
2000 Population 2,719 9,200 33,770 2016 Median Household Income $31,554 $33,715 $27,476
2010 Population 2,658 8,684 30,907 2021 Median Household Income $32,741 $33,826 $26,685
2016 Population 2,697 8,868 31,632 2016-2021 Annual Rate 0.74% 0.07% -0.58%
2021 Population 2,724 8,993 32,138 AVERAGE HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES
2000-2010 Annual Rate -0.23% -0.58% -0.88% 2016 Average Household Income $40,096 $43,588 $38,997
2010-2016 Annual Rate 0.23% 0.34% 0.37% 2021 Average Household Income $43,369 $46,845 $41,345
2016-2021 Annual Rate 0.20% 0.28% 0.32% 2016-2021 Annual Rate 1.58% 1.45% 1.18%
2016 Male Population 46.6% 48.5% 47.9% PER CAPITA INCOME 1 MILE 3 MILES 5 MILES
2016 Female Population 53.4% 51.5% 52.1% 2016 Per Capita Income $16,211 $17,339 $16,365
2016 Median Age 40.1 40.5 36.4 2021 Per Capita Income $17,433 $18,492 $17,153
RACE AND ETHNICITY 1 MILE 3 MILES 5 MILES 2016-2021 Annual Rate 1.46% 1.30% 0.95%
2016 White Alone 77.5% 64.5% 41.6% HOUSING 1 MILE 3 MILES 5 MILES
2016 Black Alone 18.1% 32.2% 55.1% 2000 Total Housing Units 1,226 3,994 14,412
2016 American Indian/Alaska Native Alone 0.0% 0.2% 0.2% 2000 Owner Occupied Housing Units 792 2,506 7,372
2016 Asian Alone 0.3% 0.2% 0.2% 2000 Renter Occupied Housing Units 363 1,181 5,687
2016 Pacific Islander Alone 0.1% 0.0% 0.0% 2000 Vacant Housing Units 71 307 1,353
2016 Other Race 2.1% 1.3% 1.1% 2010 Total Housing Units 1,217 3,782 13,370
2016 Two or More Races 1.9% 1.7% 1.8% 2010 Owner Occupied Housing Units 702 2,253 6,163
2016 Hispanic Origin (Any Race) 3.7% 2.5% 2.2% 2010 Renter Occupied Housing Units 407 1,160 5,318
HOUSEHOLDS 1 MILE 3 MILES 5 MILES 2010 Vacant Housing Units 108 369 1,889
2000 Households 1,155 3,687 13,059 2016 Total Housing Units 1,232 3,846 13,778
2010 Households 1,109 3,413 11,481 2016 Owner Occupied Housing Units 650 2,131 5,701
2016 Total Households 1,111 3,443 11,626 2016 Renter Occupied Housing Units 462 1,312 5,924
2021 Total Households 1,116 3,471 11,746 2016 Vacant Housing Units 121 403 2,152
2000-2010 Annual Rate -0.41% -0.77% -1.28% 2021 Total Housing Units 1,242 3,894 14,037
2010-2016 Annual Rate 0.03% 0.14% 0.20% 2021 Owner Occupied Housing Units 653 2,151 5,744
2016-2021 Annual Rate 0.09% 0.16% 0.21% 2021 Renter Occupied Housing Units 463 1,320 6,002
2016 Average Household Size 2.43 2.51 2.49 2021 Vacant Housing Units 126 423 2,291
Source: U.S. Census Bureau, Census 2010 Summary
The above information has been obtained from sources we believe to be reliable, however we do not take responsibility for its correctness.
MarketRetail
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MarketRetail
A P RA TR NT NE ER R S LLC
S LLCMarketRetail
P A R T N E R S LLC
Kevin Fulton Garron Wright
Managing Partner Partner
Mobile: 615.796.4076 Mobile: 312.560.0385
kfulton@marketretailpartners.com gwright@marketretailpartners.com
License #: 313966 License #: 311483
7003 Chadwick Drive | Suite 208 | Brentwood, TN 37027 | Office: 615.345.4455You can also read
