OFFERING MEMORANDUM 2406 Williams Street Cape Girardeau, MO 63703 - EXCLUSIVE LISTING - Tiktin Real Estate
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OFFERING
EXCLUSIVE MEMORANDUM
LISTING 2406 Williams Street
Cape Girardeau, MO 63703
ACTUAL PROPERTY PHOTO
Actual Property Photo
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is in-
tended to be reviewed only by the party receiving it from Tiktin Real Estate Investment Services and should not
be made available to any other person or entity without the written consent of Tiktin Real Estate Investment
Services. This Marketing Brochure has been prepared to provide summary, unverified information to prospective
CONFIDENTIALITY 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. Tiktin Real Estate Investment Services has
AND DISCLAIMER 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 finan-
cial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of
the subject property. The information contained in this Marketing Brochure has been obtained from sources we
believe to be reliable; however, Tiktin Real Estate Investment Services has not verified, and will not verify, any of
the information contained herein, nor has Tiktin 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.
NON-ENDORSEMENT NOTICE:
Tiktin Real Estate Investment Services, Inc. (“Tiktin”) is not affiliated with, sponsored by, or endorsed by any com-
mercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is
not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Tiktin, its
affiliates or subsidiaries, or any agent, product, service, or commercial listing of Tiktin, and is solely included for
the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR
TIKTIN REAL ESTATE INVESTMENT SERVICES AGENT FOR MORE DETAILS.
2
FINANCIAL ANALYSIS
TABLE OF Pricing Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
EXECUTIVE SUMMARY
CONTENTS Investment Overview . . . . . . . . . . . . . . . . . . . . . . . 7
Tenant Overview . . . . . . . . . . . . . . . . . . . . . . . . . .8-9
PROPERTY DESCRIPTION
Property Details . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Local Aerial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Local Retailer Map . . . . . . . . . . . . . . . . . . . . . . . . . 13
Local Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Regional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
MARKET OVERVIEW
Market Overview . . . . . . . . . . . . . . . . . . . . . . . . . . 17
COMPETITIVE PROPERTY SET
Sales Comparables Map . . . . . . . . . . . . . . . . . . . . . 19
Sales Comparables . . . . . . . . . . . . . . . . . . . . . . .20-22
MARKET OVERVIEW
Demographic Summary . . . . . . . . . . . . . . . . . . . 24-25
3
FINANCIAL ANALYSIS
PRICING ANALYSIS
IHOP RESTAURANT LEASE SUMMARY
FINANCIAL 2406 William Street, Cape Girardeau, MO 63703 Lease Type Absolute Triple Net (NNN)
ANALYSIS OFFERING PRICE
Price $1,833,000
Roof And Structure
Lease Guarantor
Tenant Responsible
Franchisee
Cap Rate 6.50% Original Lease Term 15 Years
NOI $119,145 Rent Commencement Date Close of Escrow
Gross Leasable Area (GLA) 6,442 SF Lease Expiration Date 15 Years thereafter
Price/Rentable SF $284.53 Remaining Lease Term 15 Years
Lot Size 1.01 Acres Options 4 (5) Year
Year Built/Renovated: 2004/2014 Increases 10% Every 5 Years
ANNUALIZED OPERATING DATA
RENT INCREASES ANNUAL RENT MONTHLY RENT CAP RATE
Years 1 - 5 ($18.49/SF) $119,145 $9,928 6.50%
Years 5 - 10 ($20.34/SF) $131,060 $10,921 7.15%
Years 11-15 ($22.37/SF) $133,100 $12,013 7.87%
Option 1 | Years 16 - 20 $158,582 $13,215 8.65%
Option 2 | Years 21 - 25 $174,440 $14,536 9.52%
Option 3 | Years 26 - 30 $191,884 $15,990 10.47%
Option 4 | Years 31- 35 $211,073 $17,589 11.52%
BASE RENT ($18.49/SF) $119,145
TOTAL RETURN 6.50%/$119,145
5
EXECUTIVE SUMMARY
INVESTMENT HIGHLIGHTS
■■ Substantial Franchisee Operates 160+
Locations
■■ Low Rent At Only $18.49/PSF
EXECUTIVE ■■ Sale/Leaseback Absolute Triple Net Lease
With 15 Year base Term
SUMMARY ■■ Attractive 10% Increases Every 5 Years
■■ Zero Landlord Responsibilities
■■ Approximately 1.4 Miles from Interstate
55 (I-55)
■■ Outparcel to Schnucks Grocery Anchored
Shopping Center
■■ Surrounding Retailers Include K-Mart,
Schnucks, Wendy's, Buffalo Wild
Wings, Walmart Neighborhood Center,
Walgreen's, amongst others
INVESTMENT OVERVIEW
Tiktin Real Estate Investment Services is pleased
to present this IHOP Restaurant located at 2406
William Street, Cape Girardeau, Missouri. This
property consists of a 6,442-square-foot IHOP
Restaurant built in 2004, renovated in 2014,
and situated on 1.01 Acres.
At the close of escrow, seller will sign a 15 year Triple Net (NNN) lease. The lease will provide for zero landlord
responsibilities, 10 percent increases every 5 years and four, 5 year options. Annual rent will be initially set
at $110,000 per year.
This property offers direct frontage, signage and access along William Street and Route 61, which experiences
combined traffic counts in excess of 40,104 vehicles per day. Additionally, this IHOP Restaurant is located just
1.4 miles from Interstate 55 (I-55) and is an outparcel to a Schnucks anchored shopping center.
The City of Cape Girardeau has become the regional destination for healthcare, education, entertainment,
shopping and employment. Cape Girardeau’s population swells to 100,000 daily. Two state-of-the-art
hospitals sit within the city limits. Together, these hospitals serve more than one million people from five
states. Southeast Missouri State University welcomes more than 10,000 students from the region and across
the world every day. Multiple private and parochial schools and more than fifty churches call Cape Girardeau
home.
7
TENANT OVERVIEW
Property
Property Single Tenant - Restaurant
Property Address 2406 William St., Cape Girardeau, MO 63703
TENANT Tenant
Tenant Trade Name IHOP Restaurant
OVERVIEW Ownership Private
Tenant Franchisee
Lease Guarantor Franchisee
Sales Volume N/A
LEASE
Lease Commencement Date Close of Escrow
Rent Commencement Date Close of Escrow
Lease Expiration Date 15 Years thereafter
Lease Type Absolute Triple Net (NNN)
Roof and Structure Tenant Responsibility
Lease Term 15 Years
Year 1 Net Operating Income $110,000
Increases 10 Percent Every 5 Years
OPTIONS
Options to Renew 4 (5) Year
Options to Terminate N/A
Options to Purchase N/A
First Right of Refusal N/A
International House of Pancakes, stylized as its acronym, IHOP, is an American multinational pancake house/
fast casual family restaurant chain that specializes in breakfast foods. It is owned by DineEquity, with 99% of
the restaurants run by independent franchisees. While IHOP's focus is on breakfast foods, it also offers a menu
of lunch and dinner items. The company has 1,650 locations in North America, Latin America, the Middle East,
Southeast Asia, and Oceania. It is known for many of its locations being open 24 hours a day, 7 days a week.
8
FRANCHISEE OVERVIEW
Principal - Andy Patel
Anand D Patel, known as Andy, is the principal of a multi franchisee group
which has been involved in the restaurant businesses for more than 29
years. Andy started his restaurant career in the late 1980's with Wendy's
TENANT Restaurants in Laurel, Maryland. Within 6 months he was promoted to
Assistant Manager, while holding part-time positions at McDonald's,
OVERVIEW Domino's and Burger King.
In 1992, Andy purchased his first restaurant and helped turn its operating
loss into a profit within one year. In 1994, he purchased an IHOP
restaurant from Corporate and doubled the revenue within one year.
That year, he won an award for highest sales increase across all IHOPs
nationwide. In 2002, he bought another restaurant and won the highest
sales increase in the country. He has won various awards throughout his
career for his management approach including "Franchisee of the Year"
from Florida's IHOPs in 1994, 1995, and 2002.
Since Andy's first IHOP restaurant purchase, he has expanded his
portfolio to 5 IHOP Restaurants, 73 Burger King Restaurants, and 18 Pizza
Hut Restaurants. He has also added 9 Applebee's Restaurants in New
Mexico, 20 Applebee's Restaurants in Virginia, and recently another 22
Applebee's Restaurants in the Memphis Tennessee area.
Andy manages over $250 million in revenue and just over 5,000 active
employees with just as much dedication and conviction as he did when
he started working in the industry.
Besides being a successful Entrepreneur, Andy is a proud family man.
He enjoys spending quality time with his beautiful wife of 20 years,
Anissa, and 4 children. His favorite pastimes include watching football,
basketball, and going to the movies. In addition to work, family, friends,
and pastimes, he enjoys donating to various local charities and sits on
the board for West Palm Beach Homeland Security.
9
PROPERTY PHOTOS
ACTUAL PROPERTY PHOTOPROPERTY DETAILS
THE OFFERING
Property IHOP Restaurant
Property Address 2406 Williams Street, Cape Girardeau, MO
SITE DESCRIPTION
PROPERTY Gross Building Area:
Lot Size:
6,442 SF
1.01 Acres
DESCRIPTION Ownership:
Year Built/Renovated:
FEE SIMPLE
2004/2014
Number of Stories: 1 Stories
Parking: 75 Spaces
Parking Ratio: 1.16/1,000 SF
Topography: FLAT
PARCELS
Number of Tax Parcels 1
APN 20-308-00-08-00702-0000
CONSTRUCTION
Foundation Concrete
Framing Concrete
Exterior Concrete
Parking Surface Asphalt
Roof Flat
MECHANICAL
HVAC Central Air
Utilities City of Cape Girardeau
ZONING
PUD: CI
ACCESS POINTS
William Street & Leming Lane
UTILITIES
Gas Tenant
Electric Tenant
Water Tenant
Sewer Tenant
Trash: Tenant
11PROPERTY
DESCRIPTION
LOCAL AERIAL
12PROPERTY
DESCRIPTION
LOCAL AERIAL
13PROPERTY
DESCRIPTION
LOCAL AERIAL
14PROPERTY
DESCRIPTION
LOCAL AERIAL
15PROPERTY
DESCRIPTION
LOCAL AERIAL
16PROPERTY
DESCRIPTION
LOCAL RETAILER MAP
SUBJECT PROPERTY
17PROPERTY
DESCRIPTION
AERIAL MAP
SUBJECT PROPERTY
18PROPERTY
DESCRIPTION
REGIONAL MAP
SUBJECT PROPERTY
19MARKET OVERVIEW
CAPE GIRARDEAU OVERVIEW
Born on the Mississippi River more than 200
years ago, Cape Girardeau, Missouri, has
evolved from a tiny trading post to a frontier
settlement governed by a French-Canadian
commandant to a thriving, culturally-rich
MARKET community of 38,000 residents on the world's
OVERVIEW only inland cape.
Although part of the actual cape was
destroyed in the 1800s to make way for the
railroads, this memorial "Cape Rock" sits atop
the bluff of Girardot's trading post.
It was about 1733 that an adventuresome
French soldier, Jean D. Girardot, established a
trading post in a remote region populated by
more than 20 Native American tribes. Girardot
chose a promontory rock overlooking the Mississippi River as the site for his trading post. Trappers and river
travelers soon discovered this welcome bit of civilization carved out of the vast forest that one day would
become Missouri. They called the place "Cape Girardot."
The Louisiana Purchase in 1803, easily the greatest discount sale in history, brought the Missouri region into
American possession at the cost of 2 cents per acre. As a result, Louis Lorimier donated four acres for the
establishment of a seat of justice. In 1806, the city was platted and in 1808 was incorporated into a town.
Lorimier died in 1812 and is buried in historic Old Lorimier Cemetery.
With the arrival of the steamboat in 1835, Cape Girardeau became a river boom town. It was the busiest port
between St. Louis and Memphis. Until the Civil War, the Riverfront bustled with activity as a commercial center
and as an inviting port of debarkation for steamboat passengers.
During the Civil War, Cape Girardeau was occupied by Union forces who built four forts to protect the city and
river. For a brief period in 1863, General Ulysses S. Grant set up headquarters in Cape Girardeau before moving
his headquarters to Cairo, Illinois. A minor skirmish was fought just west of town in 1863, but fortunately Cape
Girardeau was spared the devastation that claimed other cities.
The post-Civil War years brought continued growth: the establishment of public education in 1867, the
introduction of rail service, and advances in agriculture and industry. In 1873, a teaching university was
founded in Cape Girardeau that is now Southeast Missouri State University. The university now provides higher
education for more than 8,000 students in all disciplines.
Today, Cape Girardeau is a regional hub for education, commerce, and medical care. Although the city's
population is around 37,000 people, it is estimated that as many as 90,000 come to Cape Girardeau daily to work,
shop, go to school, or visit the many doctors' offices or two hospitals. In addition, the Bill Emerson Memorial
Bridge, which was officially opened in December 2003, carries 26,000 cars in and out of Cape Girardeau every
day. 21SALES COMPARABLES
COMPETITIVE
PROPERTY SET
SALES COMPARABLES MAP
3
4
SUBJECT PROPERTY
2
1
Recent Sales
Subject Property
1 IHOP - Wylie
2 IHOP - Atlanta
3 IHOP - Bridgeview
4 IHOP - Topeka
23COMPETITIVE
PROPERTY SET
Cap Rate
6.20%
6.00%
5.80% Average 5.87%
5.60%
5.40%
5.20%
5.00%
4.80%
Subject IHOP - Wylie IHOP - IHOP - IHOP -
Property Atlanta Bridgeview Topeka
Price SF
$1,000.00
$900.00
$800.00
$700.00
Average $617.58
$600.00
$500.00
$400.00
$300.00
$200.00
$100.00
$-
Subject Property IHOP - Wylie IHOP - Atlanta IHOP - Bridgeview IHOP - Topeka
24COMPETITIVE
PROPERTY SET
SALES COMPARABLES
Subject Property 2406 William St., Cape Girardeau, MO 63703
Sales Price: $1,833,000
Cap Rate: 6.50%
Price/SF: $284.53
Gross Leasable Area (GLA): 6,442 SF
Lot Size: 1.01 Acres
Year Built/Renovated: 2004/2014
1 IHOP - Wylie 2592 W FM 544, Wylie, Texas 75098
Close of Escrow: 7/19/2017
Sales Price: $2,875,000
Cap Rate: 5.50%
Price/SF: $635.36
Gross Leasable Area (GLA): 4,525 SF
Year Built: 2017
COMMENTS: At closing this was a Triple Net Lease with approximately 15 years remaining on a sale-leaseback. The guarantor was Argonne Capital
and the lease calls for 1% annual increases.
2 IHOP - Atlanta 5516 Peachtree Industrial Blvd., Atlanta, GA 30341
Close of Escrow: 1/5/2018
Sales Price: $3,459,000
Cap Rate: 6.07%
Price/SF: $986.03
Gross Leasable Area (GLA): 3,508 SF
Year Built/Renovated: 1979/2012
COMMENTS: At closing, this was a Triple Net Lease with approximately 14 years remaining with three, 5-year options and 10% increases every 5
years.
25COMPETITIVE
PROPERTY SET
SALES COMPARABLES
3 IHOP - Bridgeview 7240 W 79th Street, Bridgeview, IL 60455
Close of Escrow: 11/27/2017
Sales Price: $3,225,000
Cap Rate: 5.95%
Price/SF: $649.68
Gross Leasable Area (GLA): 4,964 SF
Year Built/Renovated: 1990/2010
COMMENTS: At closing this was a Triple Net Lease with approximately 15 years remaining on the lease. IHOP has been at this location since 1997.
4 IHOP - Topeka 1731 SW Wanamaker Road, Topeka, KS 66604
Close of Escrow: 10/18/2017
Sales Price: $2,570,000
Cap Rate: 5.35%
Price/SF: $532.31
Gross Leasable Area (GLA): 4,828 SF
Year Built: 1999
26DEMOGRAPHICS
MARKET DEMOGRAPHIC
SUMMARY
POPULATION 1-MILE 5-MILES 10-MILES
OVERVIEW
2023 Population 7,263 45,491 74,588
2018 Population 7,104 44,510 73,091
2010 Population 6,831 42,744 69,814
HOUSEHOLDS 1-MILE 5-MILES 10-MILES
2023 Households 3,365 18,181 29,557
2018 Households 3,298 17,754 28,959
2010 Households 3,205 17,068 27,645
Growth 2018 - 2023 2.03% 2.23% 2.06%
Growth 2010 - 2018 2.90% 4.20% 4.75%
Owner Occupied Housing Units 1,382 9,959 18,222
Renter Occupied Housing Units 1,915 7,826 10,737
2018 Avg Household Income $52,701 $64,265 $66,636
2018 Med Household Income $36,881 $46,705 $49,319
INCOME 1-MILE 5-MILES 10-MILES
$0 - $25,000 1,016 4,667 6,933
$25,000 - $50,000 1,137 4,931 7,807
$50,000 - $75,000 478 3,375 5,710
$75,000 - $100,000 370 2,166 3,858
$100,000 - $125,000 99 684 1,404
$125,000 - $150,000 57 597 935
$150,000 - $200,000 24 599 1,107
$200,000+ 115 767 1,206
28MARKET DEMOGRAPHIC SUMMARY
Geography: 10 Miles
OVERVIEW
POPULATION
In 2018, the population in your selected geography was 73,091. The population has changed by 4.69% since 2010. It is
estimated that the population in your area will be 74,588 five years from now, which represents a change of 2.05% from
the current year.
HOUSEHOLDS
There are currently 28,959 households in your selected geography. The number of households has changed by 4.75%
since 2010. It is estimated that the number of households in your area will be 29,557 five years from now, which
represents a change of 2.06% from the current year.
INCOME
In 2018, the median household income for your selected geography is $49,319, compare this to the U.S. average which is
currently $51,972.
The current year per capita income in your area is $26,401, compare this to the U.S. average, which is $26,964. The current
year average household income in your area is $66,636, compared this to the U.S. average which is $72.641.
SUBMARKET DATA: ZIP CODE 63703
HOUSING
The median sales price for homes within this area is $141,000 compared to the U.S. average which is $234,200.
EMPLOYMENT
In 2018, there are 2,035 employees with full time Earnings, 1,964 with part time earning, and 2,939 with no earnings, in
your selected area, this is also known as the daytime population.
Source: CoStar Demographics & United States Zip Codes.
29EXCLUSIVELY BROKER OF LISTED BY: RECORD: TIKTIN REAL ESTATE INVESTMENT SERVICES Intelica Commercial Real Estate Company Tel: (305) 363-4750 MO License No: 2007035188 Tel: (844) 4 - TIKTIN Fax: (305) 675-0774 www.TiktinRealEstate.com
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