OFFERING MEMORANDUM - POPEYES - NNN ...

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                              POPEYES
                       EXCLUSIVE NET -LEASE OFFERING

   OFFERING
      MEMORANDUM                                       1275 Gateway Blvd, Cottage Grove, OR 97424
OFFERING MEMORANDUM - POPEYES - NNN ...
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
OFFERING MEMORANDUM - POPEYES - NNN ...
Table of Contents
 Investment Highlights            4
 Financial Analysis               5
 Concept & Guarantor Overview     6
 Surrounding Area                 7
 Location Overview                8
 Local Map                        9
 Regional Map                     10
 Demographics / Market Overview   11-12

                                          Representative Photo
OFFERING MEMORANDUM - POPEYES - NNN ...
Investment Highlights
               PRICE: $3,708,089 | CAP: 4.50%| RENT: $166,864

 About the Investment
 ✓   Brand New 20 Year Lease That That Commences at Close of Escrow
 ✓   Rent Commences on April 1, 2022 | Seller will Credit Buyer Rent at Closing
 ✓   Triple Net (NNN) Lease with Zero Landlord Responsibilities
 ✓   Attractive Rental Increases of 1.75% Percent Annually Beginning in Year 6
 ✓   Four (4) Tenant Renewal Periods of Five (5) Years Each

 About the Location
 ✓ Dense Retail Corridor | Walmart, Walgreens, Bi-Mart, Grocery Outlet, O’Reilly Auto
   Parts, AutoZone Auto Parts, Arby’s, McDonalds, Jack in the Box, Subway and More
 ✓ Strong Traffic Counts | I-5 and Row River Rd | Boasts Average Daily Traffic Counts of
   Approximately 27,699 and 14,500 Vehicles, Respectively
 ✓ Large Academic Presence | Cottage Grove High School is Located Just Over Two-
   Miles from the Subject Property | Combined Enrollment of 800 Students                   Representative Photo

 About the Tenant / Brand
 ✓ Popeyes is the World’s Second Largest Quick Service Chicken Concept
 ✓ Popeyes is a Unique, Highly-Differentiated Brand - Internationally-recognized
   Louisiana heritage since 1972
 ✓ Ambrosia QSR is a Well-Funded Developer and Operator of Burger King and Popeyes
   Locations Throughout Washington and Oregon
 ✓ Lease Guaranteed by Ambrosia QSR II, LLC | A 12-Unit Popeyes Entity with Plans for
   Expansion

                                                                                           Representative Photo

Popeyes                                                                                                     4
OFFERING MEMORANDUM - POPEYES - NNN ...
Financial Analysis
                      PRICE: $3,708,089 | CAP: 4.50%| RENT: $166,864
                                 PROPERTY DESCRIPTION                                                                                                                 RENT SCHEDULE
Property                                                                                                Popeyes                   Lease Year                  Annual Rent                 Monthly Rent    Rent Escalation
Property Address                                                                        1275 Gateway Blvd                             Year 1                    $166,864                        $13,905          -
City, State ZIP                                                                Cottage Grove, OR 97424                                Year 2                    $166,864                        $13,905          -
Year Built / Renovated                    New Construction - Expected to Open March 2022                                              Year 3                    $166,864                        $13,905          -
                                                                                                                                      Year 4                    $166,864                        $13,905          -
Building Size (SF)                                                                                          2,333
                                                                                                                                      Year 5                    $166,864                        $13,905          -
Lot Size (Acres)                                                                                +/- 1.00 Acres
                                                                                                                                      Year 6                    $169,784                        $14,149       1.75%
Type of Ownership                                                                                   Fee Simple                        Year 7                    $172,755                        $14,396       1.75%
                                           THE OFFERING                                                                               Year 8                    $175,779                        $14,648       1.75%
                                                                                                                                      Year 9                    $178,855                        $14,905       1.75%
Purchase Price                                                                                     $3,708,089
                                                                                                                                     Year 10                    $181,985                        $15,165       1.75%
CAP Rate                                                                                                   4.50%
                                                                                                                                     Year 11                    $185,169                        $15,431       1.75%
Annual Rent                                                                                           $166,864                       Year 12                    $188,410                        $15,701       1.75%
                                        LEASE SUMMARY                                                                                Year 13                    $191,707                        $15,976       1.75%
Property Type                                                                                                                        Year 14                    $195,062                        $16,255       1.75%
                                                                                   Net-Leased Restaurant
                                                                                                                                     Year 15                    $198,475                        $16,540       1.75%
Tenant / Guarantor                                                                    Ambrosia QSR II, LLC
                                                                                                                                     Year 16                    $201,949                        $16,829       1.75%
Rent Commencement                                                                                 April 1, 2022                      Year 17                    $205,483                        $17,124       1.75%
Original Lease Term                                                                                     20 Years                     Year 18                    $209,079                        $17,423       1.75%
Lease Commencement                                                                       At Close of Escrow                          Year 19                    $212,738                        $17,728       1.75%
Lease Expiration                                                          20 Years from Store Opening                                Year 20                    $216,461                        $18,038       1.75%
Lease Term Remaining                                                                                    20 Years            INVESTMENT SUMMARY
Lease Type                                                                                  Triple Net (NNN)                Marcus & Millichap is pleased to present the exclusive listing for a Popeyes located at
                                                                                                                            1275 Gateway Boulevard in Cottage Grove, OR. The property consists of 2,333 square
Roof & Structure                                                                       Tenant Responsible                   feet of building space and is situated on an estimated 1.00-acres of land. The tenant is
Rental Increases                                                       1.75% Annually Starting Year 6                       subject to a 20-year absolute triple net (NNN) lease, that commences at the close of
                                                                                                                            escrow. The base rent is $166,864 and will increase by 1.75% percent annually starting
Options to Renew                                                        Four (4), Five (5)-Year Options                     in year six and continuing throughout the base term and into each of the four (4), five
                                                                                                                            (5)-year tenant renewal option periods.
*Principals of the NNN Pro Group and Marcus and Millichap, are part fee owners of this property. They are licensed real estate salespeople for Marcus and Millichap in the State of New York.

 Popeyes                                                                                                                                                                                                                5
OFFERING MEMORANDUM - POPEYES - NNN ...
Concept & Guarantor Overview
 About Popeyes

 Founded in 1972, Popeyes is the world’s second largest quick service
 chicken concept as measured by total number of restaurants (only
 behind KFC). As of December 31, 2018, Popeyes owned or franchised
 a total of 3,102 restaurants. Popeyes restaurants are quick service
 restaurants that distinguish themselves with a unique “Louisiana”
 style menu featuring spicy chicken, chicken tenders, fried shrimp and
 other seafood, red beans and rice and other regional items. Popeyes
 was acquired on March 27, 2017 for a total consideration of $1.7
 billion by Restaurant Brands International (NYSE: QSR).

 Fun Facts:
 ➢ Global Leadership in Chicken Segment - One of the largest players                                                             Representative Photo
   with rapidly-growing market share
 ➢ Unique, Highly-Differentiated Brand - Internationally-recognized
   Louisiana heritage since 1972                                         Ambrosia QSR
 ➢ Highly-Attractive Unit Economics - >$1.4mm ARS and strong             Ambrosia QSR is a well-funded developer and operator of Popeyes and
                                                                         Burger King locations. They are based out of Vancouver, WA with over
   franchisee EBITDA margins
                                                                         100 locations throughout the Pacific Northwest. With new capital
 ➢ Nearly Fully-Franchised Business Model - 98% franchised, leading
                                                                         investors, the tenant is looking to expand, and the strength of the
   to healthy margins and cash flow                                      operator will only continue to grow over the next few years. The operator
 ➢ Significant Expansion Opportunity in the U.S. - Consistent track      is following a tactical and sophisticated development thesis by selecting
   record of successful growth across the country                        high quality locations with tremendous upside potential. The guarantor is
 ➢ International Growth Acceleration - Numerous development              Ambrosia QSR II, LLC, a 12-unit Popeyes entity.
   agreements signed in last few years

Popeyes                                                                                                                                             6
OFFERING MEMORANDUM - POPEYES - NNN ...
Surrounding Area

Popeyes                      7
Location Overview
The Popeyes property on Gateway Boulevard which serves as an access road to I-5
and intersects with Row River Rd. I-5 and Row River Road which experience
average daily traffic counts of 27,699 and 14,350 vehicles per day, respectively.
There are approximately 17,318 individuals within a five-mile radius of the subject
property and 28,400 individuals within a ten-mile radius.
                                                                                         ADTC: 14,350
The subject property benefits from being located in a dense retail corridor
surrounded by national and local tenants, shopping centers, car dealerships, and
medical facilities. Major national tenants in the area include Walmart, Walgreens,
Bi-Mart, Grocery Outlet, O’Reilly Auto Parts, AutoZone Auto Parts, Arby’s,
McDonalds, Jack in the Box, Subway, as well as many more. The subject property
benefits from being located less than a mile rom Cottage Grove Community
Hospital. The facility provides 24-hour emergency care and a 14-bed inpatient unit.
The subject property is located within a five-mile radius of several academic
intuitions. Most notable of these Cottage Grove High School, located two-miles
from the subject property with a total enrollment of approximately 800 students.

Cottage Grove is a city in Lane County, Oregon, United States. It is the third largest
city in Lane County. The city is located on Interstate 5, Oregon Route 99, and the
main Willamette Valley line of the CORP railroad. Cottage Grove is located just over
twenty-miles from Eugene. Eugene is the state's third most populous city (after
Portland and Salem) and the county seat of Lane County. The Eugene-Springfield,
Oregon metropolitan statistical area (MSA) is the 146th largest metropolitan
statistical area in the US and the third-largest in the state, behind the Portland
Metropolitan Area and the Salem Metropolitan Area. Eugene is home to the
University of Oregon, Northwest Christian University, and Lane Community
College. The city is also noted for its natural environment, recreational
opportunities, such as bicycling, running/jogging, rafting, and kayaking, and its                       ADTC: 27,699
focus on the arts. Eugene’s official slogan is “A Great City for the Arts and
Outdoors.” It is also referred to as the “Emerald City” and as “Track Town, USA.”
The Nike corporation had its beginnings in Eugene. In 2021, the city will host the
18th Track and Field World Championships.

Popeyes                                                                                                                8
Local Map

Popeyes               9
Regional Map

                  OREGON

Popeyes                    10
Demographics
                                                                  3 Miles 5 Miles 10 Miles
                         Population Trends:
                           2010 Population                          14,115    16,337    27,001
              10 Miles     2020 Population                          15,095    17,318    28,400
                           2025 Population Projection               16,012    18,343    30,040
                           Growth 2010 - 2020                        0.70%     0.60%     0.50%
                           Growth 2020 - 2025                        1.20%     1.20%     1.20%
               5 Miles   Population by Race (2020):
                           White                                    13,931    15,996    26,334
                           Black                                        68        76       132
                           American Indian/Alaskan Native              254       284       431
                           Asian                                       228       258       385
              3 Miles      Hawaiian & Pacific Islander                  12        15        30
                           Two or More Races                           603       688     1,088
                           Hispanic Origin                           1,160     1,257     2,051
                         Household Trends:
                           2010 Households                           5,661     6,541    10,665
                           2020 Households                           6,057     6,932    11,227
                           2025 Household Projection                 6,426     7,343    11,878
                           Growth 2010 - 2020                        0.30%     0.20%     0.10%
                           Growth 2020 - 2025                        1.20%     1.20%     1.20%
                           Owner Occupied                            4,077     4,803     8,257
                           Renter Occupied                           2,349     2,540     3,621
                         Average Household Income (2020):          $58,658   $60,499   $66,357
                         Households by Household Income (2020):
Market Overview
                            Cottage Grove                         is a city in the U.S. state of Oregon, in the
                            Pacific Northwest located just under twenty miles from Eugene. Eugene is at the
                            southern end of the verdant Willamette Valley, near the confluence of the
                            McKenzie and Willamette Rivers, about 50 miles east of the Oregon Coast. Eugene
                            is the state's third most populous city (after Portland and Salem) and the county
                            seat of Lane County. The Eugene-Springfield, Oregon metropolitan statistical area
                            (MSA) is the 146th largest metropolitan statistical area in the US and the third-
                            largest in the state, behind the Portland Metropolitan Area and the Salem
                            Metropolitan Area. The city's population for 2018 was estimated to be 171,245 by
                            the US Census. Eugene is home to the University of Oregon, Northwest Christian
                            University, and Lane Community College. The city is also noted for its natural
                            environment, recreational opportunities, such as bicycling, running/jogging,
                            rafting, and kayaking, and its focus on the arts. Eugene’s official slogan is “A Great
                            City for the Arts and Outdoors.” It is also referred to as the “Emerald City” and as
                            “Track Town, USA.” The Nike corporation had its beginnings in Eugene. In 2021,
                            the city will host the 18th Track and Field World Championships.

                            Eugene’s largest employers are PeaceHealth Medical Group, the University of
                            Oregon, and the Eugene School District. Eugene’s largest industries are wood
                            products manufacturing and recreational vehicle manufacturing. Eugene has
                            quickly made a name for itself as a culinary hub in Oregon. The city has over 25
                            breweries, offers a variety of fine dining options with a local focus; the city is
                            surrounded by award-winning wineries.

   Eugene, Oregon

Popeyes                                                                                                      12
E XC LU S I V E N E T L EA S E O F F E R I N G

Adam Lewis
Broker of Record
111 SW 5th Ave., Ste. 1950
Portland, OR 97204
P: (503) 200-2000                                                 1275 Gateway Blvd, Cottage Grove, OR 97424
 Lic #: 201209561
Firm Lic #: 200709023
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