OFFERING MEMORANDUM OUTBACK STEAKHOUSE - 11600 RESEARCH BLVD, AUSTIN, TX - NET LEASE CAPITAL MARKETS
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OFFERING MEMORANDUM OUTBACK STEAKHOUSE - 11600 RESEARCH BLVD, AUSTIN, TX NET LEASE CAPITAL MARKETS
11600 RESEARCH BLVD | AUSTIN, TX
NET LEASE CAPITAL MARKETS
MATT BERRES SAMER KHALIL KARICK BROWN
Executive Managing Director Director Associate
949.608.2066 949.608.2042 949.608.2175
matt.berres@ngkf.com samer.khalil@ngkf.com karick.brown@ngkf.com
BROKER OF RECORD
LISPAH HOGAN, CCIM, MCR
Executive Managing Director
1700 Post Oak Blvd.
2 BLVD Place, Ste. 250
Houston, TX 77056
713.490.9994
lhogan@ngkf.com
License #342405
Click Here to View TREC’s Information About Brokerage Services Form
This Confidential Offering Memorandum has been prepared exclusively by Newmark Knight Frank (“Newmark Knight Frank”, “Agent”) on behalf of Ownership, the (“Owners”), regarding
the purchase of the property described herein as Outback Steakhouse, Austin, TX. The materials and information contained in this Confidential Offering Memorandum do not purport to
be all-inclusive or to contain all of the information which prospective investors may need or desire. Analysis and verification of the information contained in this Memorandum are solely the
responsibility of the prospective purchaser.
Additional information and an opportunity to inspect the Property will be made available upon written request of interested and qualified prospective purchasers. Seller and Agent each
expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property, and/or terminate discussions with any party at any time with or
without notice. Seller reserves the right to change the timing and procedures for the Offering process at any time in Seller’s sole discretion. Seller shall have no legal commitment or obligations
to any party reviewing this Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Seller, and a written agreement for the purchase of the Property
has been fully executed and delivered by Seller and the Purchaser thereunder.
This Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this
Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not forward, photocopy or duplicate it, that you will not disclose this Memorandum or any of
the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an
agreement of confidentiality) without the prior written authorization of Seller or Agent, and that you will not use this Memorandum or any of the contents in any fashion or manner detrimental
to the interest of Seller or Agent. If you have no further interest in the Property, please return the Confidential Offering Memorandum forthwith or delete the file.
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INVESTMENT HIGHLIGHTS
PREMIER INTERNATIONAL CASUAL DINING CONCEPT |
CORPORATE GUARANTY (S&P: B+)
Outback Steakhouse is a casual steakhouse restaurant concept
focused on steaks, bold flavors and Australian decor, with more than
700 locations throughout the U.S. and more than 100 internationally.
Outback is a subsidiary of Bloomin’ brands (Nasdaq: BLMN / S&PL:
B+), which reported $4.07 billion in Revenue in Fiscal Year 2019, more
than 60% of which is attributable to Outback Steakhouse.
26 YEAR OPERATING HISTORY | RECENT 15 YEAR EXTENSION |
PASSIVE NNN LEASE | ZERO LANDLORD RESPONSIBILITIES
Outback Steakhouse, which has been operating at this location since
1994, recently extended its tenancy via a new 15-year lease in 2016. With
approximately eleven (11) years remaining in the current term and four (4),
five (5) year options, the tenant has demonstrated its commitment to this
location. The NNN lease requires the tenant to perform all maintenance
and repair of the property, making this an ideal passive investment for both
local and out-of-area investors.
ANNUAL 1% RENTAL INCREASES | INCOME GROWTH | HEDGE AGAINST
INFLATION
The lease features attractive 1% annual increases throughout the primary and option
term(s), providing the landlord with income growth and a hedge against inflation.
ATTRACTIVE AUSTIN, TX LOCATION | #1 BEST PLACE TO LIVE IN THE U.S.
2017-2019 | #1 FASTEST GROWING MAJOR METRO | #1 U.S. MARKET TO
WATCH IN 2020 | HIGHLY VISIBLE & EASILY ACCESSIBLE SITE | AFFLUENT
TRADE AREA DEMOGRAPHICS | NO STATE INCOME TAX
Austin, Texas is the 11th largest U.S. city and has garnered national acclaim as the #1
best place to live in the U.S. for three consecutive years (U.S. News & World Report), the
#1 fastest growing major metro in the US (Austin Chamber) and the #1 overall real estate
prospects to watch in 2020 (PWC/ULI). The subject property is visible and easily accessible
from US 183 (137,310 VPD) and is ideally situated to serve the 265,257 residents boasting an
average household income of $101,083 within 5 miles.
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PRICE/CAP RATE
Price (PSF) $3,432,021 ($556)
Cap Rate 5.75%
Annual NOI $197,341
EXECUTIVE SUMMARY
11600 Research Blvd
Address
Austin, TX
Outback Steakhouse / OSI Restaurant
Tenant / Guarantor
Partners, LLC (Corporate)
Use Retail
Acreage 2.12
Rentable Building Area
6,176
(SF)
Expense Structure NNN
Rent Increases 1% Annually
Commencement Date September 15, 2016*
Primary Term Expiration September 31, 2031
Initial Term Fifteen (15) Years (11 years remaining)
Ownership Interest Fee Simple
*Tenant has operated at the site since construction in 1994 and signed a new
fifteen (15) year lease in 2016.
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Keyence
Wellsprings
Derma Spa
AD
Y VI LL E RO
LL
JO
137
,310
D
AR
EV
VPD
UL
BO
CH
US US US
89 189 183
AR
SE
RE
TRADE AREA AERIAL EAST
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LEASE ABSTRACT / PROPERTY DETAILS
LEASE ABSTRACT PROPERTY DETAILS
11600 Research Blvd Rentable Building Area
Address Austin, TX
6,176 SF
Acreage 2.12
Tenant Trade Name Outback Steakhouse
OSI Restaurant Partners, Year Built 1994
Tenant/Guarantor LLC (Corporate)
APN 360684
Commencement Date September 15, 2016
Primary Term Expiration September 31, 2031
RENT SCHEDULE - PRIMARY TERM
Lease Term Remaining 11 Years ANNUAL RENT INCREASE % CAP RATE %
Current $197,341 - 5.75%
Option Periods 4 (5-Year) 9/15/2021 $199,315 1.00% 5.81%
9/15/2022 $201,308 1.00% 5.87%
Annual Rent (PSF) $197,341 ($31.95 SF/Yr)
9/15/2023 $203,321 1.00% 5.92%
9/15/2024 $205,354 1.00% 5.98%
Rent Increases 1% Annually
9/15/2025 $207,408 1.00% 6.04%
9/15/2026 $209,482 1.00% 6.10%
Lease Structure NNN
9/15/2027 $211,576 1.00% 6.16%
Utilities Tenant Responsible 9/15/2028 $213,692 1.00% 6.23%
9/15/2029 $215,829 1.00% 6.29%
Taxes Tenant Responsible 9/15/2030 $217,987 1.00% 6.35%
9/15/2031 $220,167 1.00% 6.42%
Landlord Responsibilities Tenant Responsible
Insurance Tenant Responsible
ROFR Thirty (30) Days
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POPULATION 1 MI 3 MI 5 MI
ABOUT AUSTIN, TEXAS
2020 Estimate 15,904 96,634 265,257
2025 Projection 17,522 106,936 292,323
#1 Best Place to Live in U.S. 2017, 2018 & 2019 (U.S. News & World Report)
2010 Census 14,488 83,413 232,383
#1 Fastest Growing Major Metro (Austin Chamber)
HOUSEHOLDS 1 MI 3 MI 5 MI
#1 Overall Real Estate Prospects to Watch in 2020 (PWC/ULI)
2020 Estimate 8,869 49,240 123,206
#2 Best Cities and Neighborhoods for Millenials (Forbes)
2025 Projection 9,712 54,314 136,066
#5 Highest Concentration of College-Educated Adults (CityLab)
2010 Census 7,729 40,476 104,017
#8 Safest Large City in America (SafeWise)
2020 Avg. Household
$97,175 $100,317 $101,083
Income
The Austin region, known as the “Human Capital,” has developed
Outback Steakhouse - Austin, TX
a diverse, creative, and innovative ecosystem that has many different
layers.
• Capital of the State of Texas
• 11th largest U.S. city
• 2.2 million metro area population
• 80% of the population lives within the Texas triangle of Dallas, Houston & San Antonio—
and Austin is in the center!
• Central time zone
• Austin Bergstrom International Airport— runner-up for Best U.S. Airport in Fodor’s 2019
Travel Awards
• Austin is known as the “Live Music Capital of the World”, with nearly 200 venues in Austin
featuring live music. Live music contributes almost $3 billion to Austin’s tourism sector, and
supports almost 6,000 jobs.
• Affordable cost of living—below national average and significantly lower than many major
markets
9/14/2020, 3:36:03 PM
• State & local tax burden 18% lower than national average 0 1
0 1.75
• No personal state income tax Sources: Esri, HERE, Garmin,
Esri, HERE, Garmin, FAO, NOAA, USGS, EPA | Austin Community Colle
Source: austinchamber.com
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DOWNTOWN AUSTIN, TX
UNIVERSITY OF TEXAS DELL HQ - ROUND ROCK, TX
10TENANT/GUARANTOR SYNOPSIS
YEAR FOUNDED COMPANY TYPE
Outback Steakhouse 1988 Public (NASDAQ: BLMN)
• Revenue: $2.49 billion (Fiscal Year 2019)
WEBSITE
• Business Insider: 20 Best Chain Restaurants in the US HEADQUARTERS www.bloominbrands.com
• Fox News: Top 5 Best Chain Steakhouses in America
Tampa, FL www.outback.com
Outback Steakhouse is a casual steakhouse restaurant focused on steaks,
signature flavors, and Australian-themed decor. Outback Steakhouse specializes LOCATIONS S&P CREDIT RATING
in seasoned and seared or wood-fire grilled steaks but also offers chops, chicken, 1,473 B+
seafood, pasta, salads, and seasonal specials. Outback Steakhouse distinguishes
itself from other traditional dining establishments primarily through its unique recipes
and Australian theme. For example, the marinade blend used for their steaks has
over 17 different spices. Outback also has regional menu variation, with crawfish
and sweet potatoes in the South, lobster in the East, and Alaskan King Crab in the #1 CASUAL RESTAURANT DINING BRAND OF THE YEAR
West.
At the close of Fiscal Year 2019, Bloomin’ Brands operated 979 Outback
Steakhouse locations in 21 countries throughout North and South America, Asia,
and Australia.
Bloomin’ Brands (OSI Restaurant Partners, LLC)
• S&P 600 and Russell 2000 component
• Revenue: $4.07 billion (Fiscal Year 2019)
• Net Income: $130.57 million (Fiscal Year 2019)
Bloomin’ Brands operates four restaurant concepts through its 1,473 outlets in
21 countries, primarily in the US, where 83% of the venues are located. With
franchises only accounting for 14% of the US network, sales from company-
owned locations are heavily represented in real estate trading activity. The leading
chain is Outback Steakhouse, making up 52% of total sales, Carrabba’s Italian
Grill is second with 15% The remaining two brands, Bonefish Grill and Fleming’s
Prime Steakhouse & Wine Bar, make up 14% and 7% respectively, while Bloomin’
Brands’s international operations generate 12%.
1112
11600 RESEARCH BLVD | AUSTIN, TX
For more information, please contact:
NET LEASE CAPITAL MARKETS
MATT BERRES SAMER KHALIL KARICK BROWN
Executive Managing Director Director Associate
949.608.2066 949.608.2042 949.608.2175
matt.berres@ngkf.com samer.khalil@ngkf.com karick.brown@ngkf.com
BROKER OF RECORD
LISPAH HOGAN, CCIM, MCR
Executive Managing Director
1700 Post Oak Blvd.
2 BLVD Place, Ste. 250
Houston, TX 77056
713.490.9994
lhogan@ngkf.com
License #342405
Click Here to View TREC’s Information About Brokerage Services Form
18401 Von Karman Ave., Suite 150 | Irvine, CA 92612
Disclaimer: The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is
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