OFFERING MEMORANDUM - NNN Properties
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Subject Property
OFFERING
MEMORANDUM
1880 E Dorothy Ln – Dayton, OH 45429
Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected
Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square
sales with little or no record of actual performance, or footage of the property and improvements, the presence or
The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the
obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical
Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial
information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s
investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject
no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure
accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable;
intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify,
As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus &
responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters
completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding
purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All
thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of
opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein.
to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release
Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE
Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising
Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc.
the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any
net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package.
evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended
to indicate or imply affiliation with, or sponsorship or
Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or
should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing
leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing
suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective
written consent of Marcus & Millichap. This Marketing Brochure customers.
Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information
risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE
and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE
the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS.
this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation,
guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the
Table of Contents
Investment Highlights 4
Concept/Tenant Overview 5
Financial Analysis 6
Surrounding Area 7
Location Overview 8
Property Photo 9
Surrounding Area Photos 10
Local Map 11
Regional Map 12
Demographics 13
Market Overview 14
Representative Photo
Investment Highlights
About the Investment
✓ Long-Term, 20-Year Triple-Net (NNN) Lease | 15.5 Years Remaining
✓ MUY! Restaurants | Operates Approximately 770 Quick Service Restaurants
Nationwide
✓ MUY! Hamburger Partners, LLC | ~315-Unit Operator
✓ Wendy’s Has Been Dedicated to This Location Since 1973
✓ 8% Rental Increases Every 5 Years
✓ Two (2), Ten (10)-Year Tenant Renewal Option Periods
About the Location
✓ Main Retail Area in Dayton | Major National Tenants Include: McDonald’s, Sonic,
Kroger Taco Bell KFC, Midas, Applebee’s, Speedway, Chase Bank, Dairy Queen,
Sears Outlet, Walgreens, Archers, Aldi, Bob Evans, and CVS
✓ Large Academic Presence in a Two-Mile Radius | Most Notable is Kettering
Fairmont High School | Total Enrollment of 2,300 Students
✓ Miami Valley Hospital | 848-Bed Medical Facility | Two Miles From Subject
Property
About the Brand
✓ The Wendy’s Company is the World’s Third Largest Quick-Service Hamburger
Company
✓ The Wendy’s System Includes More Than 6,600 Franchise and Company
Restaurants in the U.S. and 29 Other Countries and U.S. Territories Worldwide
✓ Wendy’s Continues its Successful Global Expansion | 69 Year-To-Date Global
Restaurant Openings
✓ MUY! Restaurants is One of the Largest Franchise Restaurant Companies in the
U.S. with Over 25,000 Team Members
Wendy’s – Dayton, OH 4
Concept/Tenant Overview About Wendy’s Wendy’s is an American international fast food chain restaurant founded by Dave Thomas on November 15, 1969, in Columbus, Ohio. The company moved its headquarters to Dublin, Ohio on January 29, 2006. The Wendy's chain offers made-to-order burgers and fries as well as alternative menu items such as baked potatoes, chili, and salads. The chain is known for its square hamburgers, sea salt fries, and the Frosty, a form of soft serve ice cream mixed with frozen starches. As of 2018, Wendy’s is the world's number three hamburger chain in terms of locations (only behind McDonald's and Burger King), with approximately 6,600 franchise and Company-operated restaurants in the United States and 30 countries and U.S. territories worldwide. About MUY! Restaurants MUY! Restaurants is one of the largest private restaurant employers in the United States with 25,000+ team members committed to great customer service. The brand is also one of the Largest Franchise Restaurant Companies in the United States, with roughly 770 units throughout the country. Through its Wendy’s focused entity MUY! Hamburger Partners, LLC, MUY! Restaurants operates approximately 315 Wendy’s locations across five states: New York, Ohio, Pennsylvania, Kentucky, and Texas, 150 of which are located in New York and Ohio. MUY! Hamburger Partners, LLC believes that customer satisfaction is the driving force behind their success, and as a result, hold customer experience at each of their restaurants as the top priority. Wendy’s – Dayton, OH 5
Financial Analysis
PRICE: $1,792,127 | CAP: 5.50% | Rent: $98,567
Property Description Rent Schedule1
Property Wendy's Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%)
Property Address 1880 East Dorothy Lane Current Rent $98,567 $8,214 -
City, State, ZIP Dayton, OH 45429 Year 7 $98,567 $8,214 -
Building Size (Square Feet) 3,036 Year 8 $98,567 $8,214 -
Lot Size (Acres) +/- 0.97 Year 9 $98,567 $8,214 -
Type of Ownership Fee Simple Year 10 $98,567 $8,214 -
The Offering Year 11 $106,452 $8,871 8.00%
Purchase Price $1,792,127 Year 12 $106,452 $8,871 -
CAP Rate 5.50% Year 13 $106,452 $8,871 -
Annual Rent $98,5671 Year 14 $106,452 $8,871 -
Lease Summary Year 15 $106,452 $8,871 -
Year 16 $114,969 $9,581 8.00%
Property Type Net-Leased Restaurant
Year 17 $114,969 $9,581 -
Tenant MUY! Hamburger Partners, LLC
Year 18 $114,969 $9,581 -
Original Lease Term 20 Years
Year 19 $114,969 $9,581 -
Lease Commencement March 25, 2014
Year 20 $114,969 $9,581 -
Lease Expiration March 31, 2034
Lease Term Remaining 15.5 Years
INVESTMENT SUMMARY
Marcus & Millichap is pleased to present the exclusive listing for a Wendy’s
Lease Type Triple-Net (NNN) located at 1880 East Dorothy Lane in Dayton, Ohio. This property is subject to a
20-year triple-net (NNN) lease with 15.5 years remaining on the initial lease
Rental Increases 8% Every Five (5) Years
term. The offering consists of 3,036 rentable square feet of building space and
Options to Renew Two (2), Ten (10)-Year sits on approximately 0.97 acres of land. The annual rent is $98,567 and is
1Based on the upcoming April, 2019 Rental Increase
subject to 8% rental increases every five years with two (2), ten (10)-year tenant
renewal option periods.
Wendy’s – Dayton, OH 6
Surrounding Area
E Dorothy Ln
Woodman Dr
Wendy’s – Dayton, OH 7
Location Overview This subject investment property is located at 1880 East Dorothy Lane in Dayton, Ohio. East Dorothy Lane has an average daily traffic count of 25,000 vehicles. The subject property also benefits from its close proximity to Woodman Drive, which brings roughly 20,000 vehicles into the area, on average, each day. The subject property is well-positioned in a main retail corridor in Dayton, with many other national and local retail and restaurant tenants. These tenants include: McDonald’s, Sonic, Kroger Taco Bell KFC, Midas, Applebee’s, Speedway, Chase Bank, Dairy Queen, Sears Outlet, Walgreens, Archers, Aldi, ADTC: 20,000 Bob Evans, and CVS. In addition to these numerous retail and restaurant concepts, the subject property benefits from being located roughly one and a half miles down the road from The Greene, which is a large luxury development that is comprised of retail concepts, restaurants, apartments, and office space. In addition to the strong retail area, the subject property is located within two miles of nine academic institutions. The most notable of these institutions is Kettering Fairmont High School, which has a total enrollment of over 2,300 students. The subject property is also located just over two miles southeast of the Miami Valley Hospital, which is a state of the ADTC: 25,000 art 848-bed medical facility. Dayton is the sixth-largest city in state of Ohio, as well as being the county seat of Montgomery County. Dayton is home to the fourth-largest metropolitan area in Ohio and the 63rd in the United States. Dayton serves as a logistical centroid for manufacturers, suppliers, and shippers. The city also hosts significant research and development in fields such as industrial, aeronautical, and astronautical engineering that have led to many technological innovations. Much of this innovation is due in part to Wright-Patterson Air Force Base and its place in the community. With the decline of heavy manufacturing, Dayton’s businesses have diversified into a service economy that includes insurance and legal sectors as well as healthcare and government sectors. Along with defense and aerospace, healthcare accounts for much of the Dayton area’s economy. Hospitals in the Greater Dayton area have an estimated combined employment of nearly 32,000 people and a yearly economic impact of nearly $6.8 billion. Wendy’s – Dayton, OH 8
Property Photo Wendy’s – Dayton, OH 9
Surrounding Area Photos Wendy’s – Dayton, OH 10
Local Map
John Glenn Columbus
International Airport (CMH)
Dayton International
Airport (DAY)
Cincinnati/Northern Kentucky
International Airport (CVG)
Wendy’s – Dayton, OH 11Regional Map
OHIO
Wendy’s – Dayton, OH 12Demographics
3 Miles 5 Miles 10 Miles
10 Miles POPULATION
2022 Projection 89,374 208,347 534,311
2017 Estimate 89,238 208,095 524,462
2010 Census 88,830 206,612 519,599
2000 Census 90,413 213,476 526,404
INCOME
5 Miles Average $69,160 $71,519 $68,325
Median $51,048 $50,725 $47,297
3 Miles Per Capita $31,635 $30,533 $28,599
HOUSEHOLDS
2022 Projection 41,075 88,185 222,294
2017 Estimate 40,730 87,318 216,555
2010 Census 40,701 87,219 215,555
2000 Census 40,859 88,631 214,152
HOUSING
2017 $135,164 $141,875 $134,221
EMPLOYMENT
2017 Daytime
82,830 227,877 581,275
Population
2017 Unemployment 3.81% 4.94% 5.40%
2017 Median Time
21 21 22
Traveled
RACE & ETHNICITY
White 91.79% 88.71% 74.77%
Native American 0.02% 0.04% 0.05%
African American 3.08% 4.93% 18.16%
Asian/Pacific Islander 2.04% 2.20% 2.80%
Wendy’s – Dayton, OH 13Market Overview
Dayton is the sixth-largest city in state of Ohio, as well as being
Dayton, OH the county seat of Montgomery County. Dayton is home to the fourth-
largest metropolitan area in Ohio and the 63rd in the United States.
Dayton serves as a logistical centroid for manufacturers, suppliers, and
shippers. The city also hosts significant research and development in
fields such as industrial, aeronautical, and astronautical engineering
that have led to many technological innovations. Much of this
innovation is due in part to Wright-Patterson Air Force Base and its
place in the community. With the decline of heavy manufacturing,
Dayton’s businesses have diversified into a service economy that
includes insurance and legal sectors as well as healthcare and
government sectors. Along with defense and aerospace, healthcare
accounts for much of the Dayton area’s economy. Hospitals in the
Greater Dayton area have an estimated combined employment of
nearly 32,000 people and a yearly economic impact of nearly $6.8
billion. Dayton was recently rated the #3 city in the nation by
HealthGrades for excellence in healthcare, and many hospitals in the
city have been consistently ranked by Forbes, U.S. News & World
Report, and HealthGrades for clinical excellence. The Dayton region
ranked within the top 10% in the nation in arts and culture, and #2 in
the country amongst mid-size cities as an arts destination, ranking
higher than larger cities such as Atlanta, St. Louis, and Cincinnati.
Major Employers
Employer Estimated # of Employees
Air Force Research Laboratory 9,000
Newpage Energy Services LLC 6,000
Miami Valley Hospital 5,040
Med America Hlth Systems Corp 4,700
Dayton Board of Education 3,500
General Motors 3,000
US Post Office 2,869
Wright State University 2,826
University of Dayton 2,684
Bae Systems Modern Tech 2,660
Wendy’s – Dayton, OH 14Michael Glass
5005 Rockside Rd, Ste. 1100
Independence, OH 44131
Tel: 216.264.2000
OH: BRK.2007005898
Glen Kunofsky
Glen.Kunofsky@marcusmillichap.com
212.430.5115
NY: 10301203289
Matthew Anuszkiewicz
Matthew.Anuszkiewicz@marcusmillichap.com
212.430.5129
NY: 10401285141
Read Ziegler
Read.Ziegler@marcusmillichap.com
646.805.1490
NY: 10401319262
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