OFFERING MEMORANDUM - HOOTERS - NNN Properties
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Subject Property
HOOTERS
EXCLUSIVE NET -LEASE OFFERING
OFFERING
MEMORANDUM 3725 East Franklin Boulevard
Gastonia, NC 28054
Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of Net including the likelihood of locating a replacement tenant if the current M&M, its affiliates or subsidiaries, or any agent, product, service, or
Leased property as follows: tenant should default or abandon the property, and the lease terms commercial listing of M&M, and is solely included for the purpose of
that Buyer may be able to negotiate with a potential replacement providing tenant lessee information about this listing to prospective
The information contained in this Marketing Brochure has been tenant considering the location of the property, and Buyer’s legal customers.
obtained from sources we believe to be reliable. However, Marcus & ability to make alternate use of the property.
Millichap has not and will not verify any of this information, nor has By accepting this Marketing Brochure you agree to release Marcus & ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
Marcus & Millichap conducted any investigation regarding these Millichap Real Estate Investment Services and hold it harmless from PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR
matters. Marcus & Millichap makes no guarantee, warranty or any kind of claim, cost, expense, or liability arising out of your MORE DETAILS.
representation whatsoever about the accuracy or completeness of investigation and/or purchase of this net leased property.
any information provided. SPEICAL COVID-19 NOTICE
CONFIDENTIALITY AND DISCLAIMER
As the Buyer of a net leased property, it is the Buyer’s responsibility All potential buyers are strongly advised to take advantage of their
to independently confirm the accuracy and completeness of all The information contained in the following Marketing Brochure is opportunities and obligations to conduct thorough due diligence and
material information before completing any purchase. This Marketing proprietary and strictly confidential. It is intended to be reviewed only seek expert opinions as they may deem necessary, especially given
Brochure is not a substitute for your thorough due diligence by the party receiving it from Marcus & Millichap and should not be the unpredictable changes resulting from the continuing COVID-19
investigation of this investment opportunity. Marcus & Millichap made available to any other person or entity without the written pandemic. Marcus & Millichap has not been retained to perform, and
expressly denies any obligation to conduct a due diligence consent of Marcus & Millichap. This Marketing Brochure has been cannot conduct, due diligence on behalf of any prospective purchaser.
examination of this Property for Buyer. prepared to provide summary, unverified information to prospective Marcus & Millichap’s principal expertise is in marketing investment
purchasers, and to establish only a preliminary level of interest in the properties and acting as intermediaries between buyers and sellers.
Any projections, opinions, assumptions or estimates used in this subject property. The information contained herein is not a substitute Marcus & Millichap and its investment professionals cannot and will
Marketing Brochure are for example only and do not represent the for a thorough due diligence investigation. Marcus & Millichap has not not act as lawyers, accountants, contractors, or engineers. All
current or future performance of this property. The value of a net made any investigation, and makes no warranty or representation, potential buyers are admonished and advised to engage other
leased property to you depends on factors that should be evaluated with respect to the income or expenses for the subject property, the professionals on legal issues, tax, regulatory, financial, and
by you and your tax, financial and legal advisors. future projected financial performance of the property, the size and accounting matters, and for questions involving the property’s
square footage of the property and improvements, the presence or physical condition or financial outlook. Projections and pro forma
Buyer and Buyer’s tax, financial, legal, and construction advisors absence of contaminating substances, PCB’s or asbestos, the financial statements are not guarantees and, given the potential
should conduct a careful, independent investigation of any net leased compliance with State and Federal regulations, the physical condition volatility created by COVID-19, all potential buyers should be
property to determine to your satisfaction with the suitability of the of the improvements thereon, or the financial condition or business comfortable with and rely solely on their own projections, analyses,
property for your needs. prospects of any tenant, or any tenant’s plans or intentions to and decision-making.)
continue its occupancy of the subject property. The information
Like all real estate investments, this investment carries significant contained in this Marketing Brochure has been obtained from sources
risks. Buyer and Buyer’s legal and financial advisors must request we believe to be reliable; however, Marcus & Millichap has not
and carefully review all legal and financial documents related to the verified, and will not verify, any of the information contained herein,
property and tenant. While the tenant’s past performance at this or nor has Marcus & Millichap conducted any investigation regarding
other locations is an important consideration, it is not a guarantee of these matters and makes no warranty or representation whatsoever
future success. Similarly, the lease rate for some properties, including regarding the accuracy or completeness of the information provided.
newly-constructed facilities or newly-acquired locations, may be set All potential buyers must take appropriate measures to verify all of the
based on a tenant’s projected sales with little or no record of actual information set forth herein.
performance, or comparable rents for the area. Returns are not
guaranteed; the tenant and any guarantors may fail to pay the lease NON-ENDORSEMENT NOTICE
rent or property taxes, or may fail to comply with other material terms
of the lease; cash flow may be interrupted in part or in whole due to Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is
market, economic, environmental or other conditions. Regardless of not affiliated with, sponsored by, or endorsed by any commercial
tenant history and lease guarantees, Buyer is responsible for tenant or lessee identified in this marketing package. The presence of
conducting his/her own investigation of all matters affecting the any corporation’s logo or name is not intended to indicate or imply
intrinsic value of the property and the value of any long-term lease, affiliation with, or sponsorship or endorsement by, said corporation of
Table of Contents
Investment Highlights 4
Financial Analysis 5
Concept Overview 6
Surrounding Area 7
Location Overview 8
Local Map 9
Regional Map 10
Demographics 11
Market Overview 12
Representative Photo
Investment Highlights
TOTAL PRICE: $2,300,000 (Please Contact Agent for More Details)
About the Investment
Hooters Parcel (A) $1,600,000 ✓ Original Build-to-Suit With 23 Years of Operating History
✓ NNN Lease With Full Corporate Guaranty
NOI $119,922 ✓ Hooters Has Recently Upgraded and Remodeled the Interior
CAP 7.50% ✓ Recently Exercised a 5-Year Option, Demonstrating Commitment to this
+ Legacy Location
✓ Additional 5+ Acres For Additional Development Along Coveted E Franklin
Additional Acreage (B) $700,000 Blvd Corridor | Huge Barriers to Entry and Shortage of Developable Land
TOTAL PRICE $2,300,000 About the Location
✓ Extremely Dense, Primary Retail Corridor | Walmart, Target, Best Buy,
Lowe’s, The Home Depot, McDonald’s, Chipotle, Panera Bread, Popeye’s,
This Offering Includes: Chick Fil-A, Starbucks, GameStop, Sam’s Club, Party City, Aldi, and Many
Parcel A: +/- 2.02 AC w/ Cash-Flowing Hooters More
Parcel B: Additional +/- 5.17 AC For Development ✓ Strong Demographics | Population Exceeds 105,000 Individuals Within a
Five-Mile Radius
SubjectPer
✓ Exceptional Traffic Counts & Access | Over 38,000 and 126,000 Vehicles Property
Day Along Andrew Jackson Highway and U.S. Interstate 85, respectively |
Accessible from Three-Way, Signalized Intersection
✓ Charlotte Douglas International Airport | Located Just Under 10 Miles Away
| Serves over 27 Million Passengers Per Year
✓ Significant Growth Within the Submarket and Larger Charlotte MSA
✓ CaroMont Regional Medical Center | 3,350+ Employees, 450-Bed Hospital
✓ Multiple Large-Scale Retail & Residential Developments, Both East and West
of the Subject Property
A ✓ Massive Retail Exposure | One of the Most Significant Retail Corridors in the
Region| Located On and Within Major Traffic Arterials, Capturing
About the Tenant / Brand
B ✓ World Renowned Tenant With 40 Years of Experience and Locations in 29
Different Countries
✓ In 2020, Hooters saw Total Sales of over $841 Million, With 2.7% Sales
Growth and 2.2% Unit Growth in the Face of a Pandemic. The Company
adopted New Strategies and Systems Which Helped the Brand Come Out of
the Pandemic On Top
4
Financial Analysis
TOTAL PRICE: $2,300,000 (Please Contact Agent for More Details)
PROPERTY DESCRIPTION RENT SCHEDULE
Property Hooters Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%)
Property Address 3725 E Franklin Blvd 12/1/2018 - 11/30/2023 $119,922.00 $9,993.50 -
City, State, ZIP Gastonia, NC 28054 Option Schedule
Year Built / Renovated 1998 First Extension Option
Building Size 3,616 SF 12/1/2023-11/30/2028 $131,914.20 $10,992.85 10.00%
Parcel A (Hooters): 2.02 AC Second Extension Option
Lot Size
Parcel B: 5.17 AC 12/1/2028-11/30/2033 $145,105.62 $12,092.14 10.00%
Type of Ownership Fee Simple Third Extension Option
12/1/2033-11/30/2038 $159,616.18 $13,301.35 10.00%
THE OFFERING | HOOTERS (PARCEL A)
Annual Rent $119,922 Hooters Parcel (Parcel A) $1,600,000
CAP Rate 7.50%
NOI $119,922
Purchase Price $1,600,000
CAP 7.50%
THE OFFERING | ADDITIONAL ACREAGE (PARCEL B) +
Price $700,000 Additional Acreage (Parcel B) $700,000
AC 5.17 AC
TOTAL PRICE $2,300,000
LEASE SUMMARY
Property Type Net-Leased Restaurant
Ownership Type Private INVESTMENT SUMMARY
Tenant / Guarantor Hooters of Gastonia, Inc Marcus & Millichap is pleased to present the exclusive listing for the Hooters Restaurant
located at 3725 E Franklin Blvd in Gastonia, NC. The site presently consists of roughly 3,616
Original Lease Term 20.0 Years
rentable square feet of building space on estimated 2.02-acre parcel of land. In addition, there
Lease Commencement November 20, 1998
is another 5-acre parcel of land situated behind the subject property that is included in this
Lease Expiration November 20, 2023 offering. This presents a unique opportunity to acquire a cash-flowing, legacy net lease asset
Lease Term Remaining 2.0 Years with prime frontage along Franklin Blvd, with the ability to further develop in a corridor that
Lease Type NNN has little-to-no available land remaining. An investor would have a very attractive basis in the
Roof & Structure Tenant Responsible Hooters asset, which would also provide a potential development runway in unlocking
Rental Increases 10% In Options considerable value in this exceptionally busy corridor. This Hooters is subject to a 20-year
Options to Renew Three (3), Five (5)-Year Options absolute triple-net (NNN) lease, which commenced in November 1998. The tenant is currently
in their first option period. The current annual rent is $119,922 and is scheduled to increase by
ten percent (10%) at the commencement of each of the three (3), five (5)-year renewal options.
5
Concept Overview
Atlanta, Georgia Private 420+ 1983 www.hooters.com
Headquarters Company Type Locations Founded Website
Hooters was founded in 1983 in Clearwater, Florida, and has since expanded globally to more than 420 locations in 42 U.S. states and
29 countries. Known for its world-famous Hooters-style chicken wings, Hooters offers great quality food and beverages at reasonable
prices, served in an energetic and inviting environment, all with exceptional service from the world-renowned Hooters Girls.
In 2020, Hooters saw total sales of over $841 million, with 2.7% sales growth and 2.2% unit growth across the year. The brand achieved
these figures by implementing certain systems and strategies well before the COVID-19 pandemic, which ultimately helped the
brand come out of the pandemic on top. Hooters capitalized on takeout and delivery by partnering with Uber Eats and developing
new spin-off fast casual restaurant concepts.
Location played a large factor in Hooters’ success as well, as a majority of its restaurants are located in the Southeastern states, which
were among the first to lift pandemic restrictions in 2020. According to Hooters CEO Sal Melilli, although on-premises dining is the
core of the company’s sales, off-premises business is still well above 2019 levels.
6
Surrounding Area
Brand New Retail
Shops @ Franklin
7
Location Overview
This Hooters property has more than 60 feet of frontage along East Franklin
Boulevard, which sees average daily traffic counts in excess of 38,600 vehicles. The
subject property is well positioned between S Main St (23,600+ VPD) and Cox Rd
(28,000+ VPD), both of which provide access to I-85 (126,00+ VPD), which connects
the three most populous metropolitan areas of North Carolina. Franklin Boulevard
is a primary east-west arterial, bisecting Gastonia and connecting Charlotte to the
east with I-85 to the west. Franklin Boulevard has commanding retail exposure and
is the main thoroughfare through the subject trade area, benefitting this property
with considerable all-day traffic. The subject property not only benefits from the
prominence of the Franklin Blvd Corridor, but also the complimentary retail
presence in the vicinity and the density of the surrounding communities and
developments. There are more than 41,900 individuals residing within a three-mile
radius of the property and more than 105,400 individuals within a five-mile radius.
ADTC: 126,900
The subject property benefits from being well-positioned in a very dense retail
corridor consisting of large shopping centers with national and local tenants, all ADTC: 23,655
within close proximity of this property. Notable national tenants in the area include
Walmart, Target, Best Buy, Lowe’s, The Home Depot, McDonald’s, Chipotle, Panera
Bread, Popeye’s, Chick Fil-A, Starbucks, GameStop, Sam’s Club, Party City, Aldi, and
many more. Other significant, nearby points of interest and economic drivers are
the CaroMont Regional Medical Center (435-bed hospital), Franklin Square
Shopping Center, The Franklin Urban Sports and Entertainment Complex, Loray Mill,
and numerous other developments.
ADTC: 38,600
Gastonia, North Carolina is the third largest city in the Charlotte, North Carolina
MSA. A three time all American city, Gastonia‘s strategic location, minutes west of
Charlotte, North Carolina and midway between Atlanta and North Carolina’s
research triangle area, Charlotte attracts a diverse business and industrial base
looking for ideal sites to which they can locate, relocate or expand. Gastonia, North
Carolina is located just 25 minutes to the Charlotte Douglas International Airport
but also has its own municipal airport which serves a growing number of corporate
and general aviation demands. Interstate 85 and US Highway 321 are major
arterials benefiting residents looking for mountain access and businesses which
require strategic shipping efficiency.
8
Local Map
Gastonia Municipal Airport (AKH)
Charlotte Douglas International Airport (CLT)
9
Regional Map
NORTH CAROLINA
10Demographics
1 Mile 3 Miles 5 Miles
POPULATION TRENDS
2010 Population 4,223 38,320 95,406
5 Miles 2021 Population 4,322 41,927 105,422
2026 Population Projection 4,481 43,945 110,664
Annual Growth 2010-2021 0.20% 0.90% 1.00%
Annual Growth 2021-2026 0.70% 1.00% 1.00%
3 Miles POPULATION BY RACE (2021)
White 3,573 32,048 78,751
Black 549 7,552 21,386
American Indian/Alaskan Native 34 366 660
Asian 83 961 2,213
1 Mile Hawaiian & Pacific Islander 13 27 80
Two or More Races 69 972 2,333
Hispanic Origin 368 4,819 9,478
HOUSEHOLD TRENDS
2010 Households 1,737 15,359 37,521
2021 Households 1,773 16,748 41,472
2026 Household Projection 1,838 17,548 43,546
Annual Growth 2010-2021 0.40% 0.70% 0.80%
Annual Growth 2021-2026 0.70% 1.00% 1.00%
AVERAGE HOUSEHOLD INCOME (2021) $79,034 $75,951 $75,369
MEDIAN HOUSEHOLD INCOME (2021) $67,065 $59,069 $58,158
HOUSEHOLDS BY HOUSEHOLD INCOME
(2021)
< $25,000 300 3,394 8,678
$25,000 - 50,000 327 3,556 9,338
$50,000 - 75,000 368 3,409 7,677
$75,000 - 100,000 331 2,272 5,006
$100,000 - 125,000 195 1,767 4,826
$125,000 - 150,000 95 837 2,088
$150,000 - 200,000 83 759 2,111
$200,000+ 72 754 1,748
11Market Overview
Charlotte, North Carolina Charlotte is the largest city in the state of North Carolina and the third
fastest growing major city in the United States. In 2020, the estimated
population of Charlotte according to the United States Census Bureau was
874,579, making it the 16th largest city in the United States based on
population. The Charlotte metropolitan area stretches 3,198 square miles
across the Piedmont region of the Southeastern United States. It contains
seven counties in North Carolina: Mecklenburg, Gaston, Union, Cabarrus,
Iredell, Rowan and Lincoln. South Carolina counties include York, Lancaster and
Chester. A strong financial presence has contributed to the local population
growing to more than 2.5 million citizens. This has led the area to become one
of the nation’s fastest-growing metro regions over the past 15 years. In
November of 2017, the National Real Estate Investor named Charlotte’s
Suburbs as the second-best suburbs for millennials. Charlotte is the largest city
in the area, with nearly 850,000 people, followed by Concord and Gastonia,
each with just under 100,000 residents.
Charlotte has become a major U.S. Financial center with the third most banking
assets after New York City and San Francisco. The city is home to the corporate
headquarters of Bank of America and the east coast operations of Wells Fargo,
which along with other financial institutions makes it the second largest
banking center in the United States. Charlotte was also recently ranked
seventh for best places for business and careers by Forbes and tenth for
biggest population growth by the U.S. Census Bureau of 15 largest cities. The
area is also an increasingly growing trucking and freight transportation hub for
the East Coast. The Charlotte city center has seen remarkable growth over the
last decade. Numerous residential units continue to be built uptown, including
over 20 skyscrapers under construction, recently completed, or in the planning
stage. Additionally, Charlotte is the epicenter of the United States motorsports
industry, housing multiple NASCAR offices, the NASCAR Hall of Fame, and
Charlotte Motor Speedway in Concord, just outside the city.
12Cade Kearn Anthony D’Ambrosia
714.336.4737 203.887.8797
ckearn@nnnpro.com adambrosia@nnnpro.com
E XC LU S I V E N E T - L EA S E O F F E R I N G
NC BROKER OF RECORD:
Ben Yelm
Marcus & Millichap
License: 303785You can also read
