OFFERING MEMORANDUM - NNN Properties
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GOLDEN CORRAL
B r a n d N e w 2 0 - Ye a r Tr i p l e - N e t ( N N N ) S a l e - L e a s e b a c k
OFFERING
MEMORANDUM
1053 Lenoir Rhyne Boulevard – Hickory, North Carolina 28602
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. Activity ID: Z0330634
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
1053 Lenoir Rhyne Boulevard – Hickory, North Carolina 28602
Table of Contents Investment Summary 4 Investment Highlights 5 Financial Analysis 6 Tenant Overview 7 Surrounding Area 8 Location Overview 9 Property Photos 10 Surrounding Area Photos 11 Regional Map 12 Demographics / Market Overview 13-14
INVESTMENT SUMMARY Marcus & Millichap is pleased to present this exclusive listing for a Golden Corral. The subject single-tenant Golden Corral is located 1053 Lenoir Rhyne Blvd in Hickory, NC. Built in 1999, the subject property consists of roughly 11,100 square feet of building space. This investment opportunity will be subject to a brand new 20-year triple-net (NNN) sale-leaseback commencing upon the close of escrow. The lease will be subject to four, five-year tenant renewal options bringing the total potential lease term to 40 years. The initial annual rent will be $250,000 and is scheduled to increase by 1.50% annually and continuing throughout the base term and option periods. The property is strategically situated on a 2.35-acre parcel. The sites positioning on Lenoir Rhyne Boulevard offers excellent visibility and exposure to the 37,000 vehicles that travel through each day. This Golden Corral property is located at 1053 Lenoir Rhyne Blvd in Hickory, North Carolina. The property is well-positioned in a highly dense retail corridor consisting of shopping centers, national and local tenants, office complexes, and hotels. Major national and local tenants in the area include: Dollar General, Hardee’s, Outback Steakhouse, Waffle House, Zaxby’s, Starbucks, Cracker Barrel, Bojangles’ and Texas Roadhouse. Valley Hills Mall is located one and a half miles away on the south side of Interstate 45. It operates as the only enclosed mall within a 40 mile radius (spanning six counties) and is anchored by Dillard’s, JCPenney, Belk and Sears. Catawba Valley Community College is located two miles southeast and has a total enrollment of over 4,500 students. Interstate 40 also provides for easy transportation access to nearby cities including Greensboro, Raleigh and Knoxville. Golden Corral is an American family-style restaurant chain that features a large buffet and grill offering numerous hot and cold items, a carving station and their Brass Bell Bakery. Each location serves a daily buffet lunch and dinner and a weekend breakfast buffet. In 1971 James Maynard and William Carl conceived the idea that became Golden Corral and opened its first location in 1973. Golden Corral is a privately held company headquartered in Raleigh, North Carolina with nearly 500 locations across 40 states. Of the nearly 500 locations, over 100 sites are company-owned and the others franchised. Gross sales for the company are over $1.5 billion. The success of Golden Corral over the last 35 years can be attributed to two main factors, strategic locations for each of its restaurants, and fresh ingredients. The majority of the locations are constructed away from direct competition, focusing on small-town America. To stay ahead of the competition Golden Corral also focuses on freshness to separate it from other budget steakhouses. From the start, each Golden Corral cuts its own USDA Choice beef, offering a variety of steaks and does not charge much more than its competitors charge for imported frozen steaks.
Investment Highlights
PRICE: $3,571,429 | CAP: 7.00% | RENT: $250,000
About the Investment
✓ Brand New 20-Year Sale-Leaseback
✓ Triple-Net (NNN) Lease with Zero Landlord Responsibilities
✓ Has 1.5 Percent Annual Rental Increases
✓ There are Four, Five Year Tenant Renewal Options
About the Location
✓ Freestanding Property
✓ Dense Retail Corridor | Surrounding Retailers Include: Dollar General,
Hardee’s, Outback Steakhouse, Waffle House, Zaxby’s, Starbucks, Cracker
Barrel, Bojangles’ and Texas Roadhouse
✓ Strong Traffic Counts | Lenoir Rhyne Blvd and Interstate 40 | 37,000 and
63,000 vehicles per day respectively
✓ Catawba Valley Community College | Located Two and a Half Miles From the
Subject Property | Total Enrollment of Approximately 4,500 Students
✓ Hickory Metro Convention Center | One Mile Away | 76,000 Square Feet of
Meeting Space
About the Tenant / Brand
✓ Golden Corral is a privately held company headquartered in Raleigh, North
Carolina with nearly 500 locations across 40 states.
✓ Strong Track Record With Proven Operational Expertise
✓ Over 100 of the sites are company-owned and the others franchised. Gross
sales for the company are exceed $1.7 billion.
✓ Platinum Corral | Experienced Franchisee in the Golden Corral system |
Operating 26 locations throughout six states.
Golden Corral – Hickory, North Carolina 5
Financial Analysis
PRICE: $3,571,429 | CAP: 7.00% | RENT: $250,000
PROPERTY DESCRIPTION RENT SCHEDULE
Property Golden Corral Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%)
Property Address 1053 Lenoir Rhyne Boulevard
Year 1 $250,000 $20,833 -
City, State, ZIP Hickory, NC 28602
Year Built / Renovated 1999 Year 2 $253,750 $21,146 1.50%
Building Size 11,100 Year 3 $257,556 $21,463 1.50%
Lot Size +/- 2.35 Acres Year 4 $261,420 $21,785 1.50%
Type of Ownership Fee Simple Year 5 $265,341 $22,112 1.50%
THE OFFERING Year 6 $269,321 $22,443 1.50%
Purchase Price $3,571,429
Year 7 $273,361 $22,780 1.50%
CAP Rate 7.00%
Annual Rent $250,000 Year 8 $277,461 $23,122 1.50%
Price / SF $321.75 Year 9 $281,623 $23,469 1.50%
Rent / SF $22.52 Year 10 $285,847 $23,821 1.50%
LEASE SUMMARY Year 11 $290,135 $24,178 1.50%
Property Type Net-Leased Restaurant Year 12 $294,487 $24,541 1.50%
Ownership Type Private
Year 13 $298,905 $24,909 1.50%
Tenant/Guarantor Franchisee (26-Unit Operator)
Original Lease Term 20.0 Years Year 14 $303,388 $25,282 1.50%
Lease Commencement Close of Escrow Year 15 $307,939 $25,662 1.50%
Lease Expiration 20 Years from Close of Escrow Year 16 $312,558 $26,047 1.50%
Lease Term Remaining 20.0 Years Year 17 $317,246 $26,437 1.50%
Lease Type Triple-Net (NNN)
Year 18 $322,005 $26,834 1.50%
Roof & Structure Tenant Responsible
Rental Increases 1.50% Annually Year 19 $326,835 $27,236 1.50%
Options to Renew Four, Five-Year Options Year 20 $331,738 $27,645 1.50%
*Tenant Shall Have a One-Time Termination Option in Year 12 Related to
the Franchise Agreement.
Golden Corral – Hickory, North Carolina 6
Tenant Overview
Property Address: 1053 Lenoir Rhyne Blvd – Hickory, NC 28602
ABOUT GOLDEN CORRAL
When the first Golden Corral® restaurant opened in Fayetteville, North Carolina in 1973,
Golden Corral Corporation took a confident first step in the restaurant business,
beginning a tradition of offering guests real, wholesome foods in a family-friendly
atmosphere and at a great value. Nearly 45 years of success and 500 locations later,
Golden Corral is recognized by Nation’s Restaurant News as “America’s #1 buffet and
grill.” Golden Corral's legendary endless buffet features an abundant variety of delicious
all-time favorites and new menu offerings for breakfast, brunch, lunch and dinner. Guests
can choose from over 150 items including USDA, grilled to order sirloin steaks, pork,
seafood, and shrimp alongside traditional favorites like pot roast, fried chicken, meatloaf,
mashed potatoes, mac and cheese, Bourbon Street Chicken, fresh salads, famous yeast
rolls, the ALL NEW Smokehouse and more. And… dessert innovations are headlined by
freshly-spun cotton candy, decadent desserts (that rival the Las Vegas buffets!), as well as
the Famous Chocolate Fountain featuring a non-stop stream of chocolate, with a variety
of fresh fruits and sweet tooth favorites that are available for dipping and dunking. Gross
sales for the company exceed $1.7 billion.
In addition to the buffet services, giving back is the hallmark of the Golden Corral brand.
As of 2017, Golden Corral has served over 5,400,00 meals to our military heroes and has
raised over $14 million dollars for Disabled American Veterans. Additionally, over the
past 6 years, Golden Corral restaurants and guests have raised over $9 million dollars and
sent nearly 18,000 military children to Camp Corral.
PLATINUM CORRAL
Platinum Corral was founded in 1996 as a multi-unit franchise operator of Golden Corral
Buffet-Grill restaurants. They have become one of the largest, most progressive and
fastest growing operations in the Golden Corral system. Platinum Corral currently
operates 26 locations within North Carolina, South Carolina, Ohio, Virginia, West Virginia,
and Kentucky.
Golden Corral – Hickory, North Carolina 7
Surrounding Area Property Address: 1053 Lenoir Rhyne Blvd – Hickory, NC 28602 Golden Corral – Hickory, North Carolina 8
Location Overview
Property Address: 1053 Lenoir Rhyne Blvd – Hickory, NC 28602
The subject property is well-positioned in a dense retail and office
corridor consisting of many national and local tenants. Surrounding major
retailers include Dollar General, Hardee’s, Outback Steakhouse, Waffle
House, Zaxby’s, Starbucks, Cracker Barrel, Bojangles’ and Texas
Roadhouse. Valley Hills Mall is located one and a half miles away on the ADTC: 14,000
south side of Interstate 40. It operates as the only enclosed mall within a
40 mile radius (spanning six counties) and is anchored by Dillard’s,
JCPenney, Belk and Sears. Surrounding Valley Hills Mall along US Highway
70 sits several other major tenants including Walmart, Sam’s Club,
Lowe’s, Home Depot, Target, AMC.
The Hickory Metro Convention Center is located one-mile away and is
ideal for conferences, banquets, corporate meetings, events and trade
show locations in western North Carolina. The convention center
features over 76,000 square feet of meeting space and accommodates
groups up to 3,800. Catawba Valley Community College is located two
miles southeast and has a total enrollment of over 4,500 students. I-40
also provides for easy transportation access to nearby cities including
Greensboro, Raleigh and Knoxville.
ADTC: 37,000
The Golden Corral is located on Lenoir Rhyne Boulevard, which
experiences average daily traffic counts of 37,000 vehicles. Lenoir Rhyne
Boulevard intersects with nearby Interstate 40, which brings in an
additional 63,000 vehicles to the immediate area per day. There are
roughly 30,700 individuals residing within a three mile radius of the
subject property and over 69,500 individuals within a five mile radius.
ADTC: 63,000
Hickory is a city located primarily in Catawba County, NC, with parts in
adjoining Burke and Caldwell counties. Currently, the area is home to
many leading manufacturers of furniture, fiber optic cable, and pressure-
sensitive tape. It is estimated 60% of the nation's furniture used to be
produced within a 200-mile radius of Hickory. Forty percent of the
world's fiber optic cable is made in the Hickory area. Hickory is the retail
hub of the foothills and Unifour region, and is home to the largest
shopping mall in the region Valley Hills Mall.
Golden Corral – Hickory, North Carolina 9
Property Photo
Subject Property
Golden Corral – Hickory, North Carolina 10Surrounding Area Photos Golden Corral – Hickory, North Carolina 11
Regional Map
Property Address: 1053 Lenoir Rhyne Blvd – Hickory, NC 28602
NORTH CAROLINA
Golden Corral – Hickory, North Carolina 12Demographics
Property Address: 1053 Lenoir Rhyne Blvd – Hickory, NC 28602
3 Mile 5 Miles 10 Miles
Population Trends:
2022 Projection 30,851 70,305 157,666
2017 Estimate 30,676 69,735 156,984
2010 Census 30,406 68,171 155,954
Growth 2017 - 2022 0.57% 0.82% 0.43%
10 Miles Growth 2010 - 2017 0.89% 2.29% 0.66%
2017 Population Hispanic Origin 4,899 8,429 14,093
Population by Race (2017):
White 22,920 56,774 134,198
5 Miles Black 5482 7899 12269
American Indian & Alaskan 193 415 844
3 Miles Asian 1327 3098 6749
Hawaiian & Pacific Island 25 71 129
Other 729 1477 2795
Household Trends:
2022 Projection 12,652 28,419 62,360
2017 Estimate 12,587 28,198 62,095
2010 Census 12,502 27,606 61,677
Growth 2017 - 2022 0.52% 0.78% 0.43%
Growth 2010 - 2017 0.68% 2.14% 0.68%
Owner Occupied 6152 17475 43362
Renter Occupied 6435 10724 18734
Average Household Income (2017): $49,920 $59,884 $57,741
Households by Household Income (2017):Market Overview
City: Hickory | County: Catawba | State: North Carolina
Hickory is a city located primarily in Catawba County, North Carolina,
with parts in adjoining Burke and Caldwell counties. The Hickory area
historically competed in new industries and technologies by applying old
Hickory, NC strengths and favorable geography. In this way, wagon-making know-how,
proximity to expansive forests, and excellent transportation via two
intersecting railroads provided fertile ground for the emergence of the
furniture industry. Likewise experience with textile manufacturing and easy
access to power drove new industries in both fiber-optic cable and
pressure-sensitive tape.
Currently the area is home to many leading manufacturers of furniture,
fiber optic cable, and pressure-sensitive tape. It is estimated 60 percent of
the nation's furniture used to be produced within a 200-mile radius of
Hickory. Forty percent of the world's fiber optic cable is made in the
Hickory area. The Hickory area is additionally marketed as a data-center
corridor and is home to large data-centers operated by Apple and Google.
Apple's billion-dollar data-center campus just south of Hickory is one of the
world's largest. Hickory is the retail hub of the foothills and Unifour region,
and is home to the largest shopping mall in the region Valley Hills Mall.
Major Employers
Employer Estimated # of Employees
Catawba Valley Medical Ctr Inc 1,304
Te Connectivity 1,300
DUKE LIFEPOINT HEALTHCARE 1,290
Shurtape Technologies LLC 1,154
Shurtape Technologies Inc 900
Century Case Goods Division 700
Planning and Development 650
Thomasville Furniture 622
Hickory Chair Company 600
Corning Optcal Cmmncations LLC 513
ADC Dsl Systems Inc 500
Valley Hills Mall LLC 500
Golden Corral – Hickory, North Carolina 14E 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: Allen Smith Marcus & Millichap REIS of North Carolina 201 S Tryon St Suite 1220 Charlotte, NC 28202 Tel: 704-831-4600 1053 Lenoir Rhyne Blvd – Hickory, North Carolina 28602 License: 127350
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