OFFERING MEMORANDUM - The Boulder Group
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Subject Property
BURGER KING
EXCLUSIVE NET-LEASE OFFERING
OFFERING
MEMORANDUM 803 Highway 278 East
Amory, MS 38821
Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of Net including the likelihood of locating a replacement tenant if the current affiliation with, or sponsorship or endorsement by, said corporation of
Leased property as follows: tenant should default or abandon the property, and the lease terms M&M, its affiliates or subsidiaries, or any agent, product, service, or
that Buyer may be able to negotiate with a potential replacement commercial listing of M&M, and is solely included for the purpose of
The information contained in this Marketing Brochure has been tenant considering the location of the property, and Buyer’s legal providing tenant lessee information about this listing to prospective
obtained from sources we believe to be reliable. However, Marcus & ability to make alternate use of the property. customers.
Millichap has not and will not verify any of this information, nor has
Marcus & Millichap conducted any investigation regarding these By accepting this Marketing Brochure you agree to release Marcus & ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
matters. Marcus & Millichap makes no guarantee, warranty or Millichap Real Estate Investment Services and hold it harmless from PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR
representation whatsoever about the accuracy or completeness of any kind of claim, cost, expense, or liability arising out of your MORE DETAILS.
any information provided. investigation and/or purchase of this net leased property.
SPECIAL COVID-19 NOTICE
As the Buyer of a net leased property, it is the Buyer’s responsibility CONFIDENTIALITY AND DISCLAIMER
to independently confirm the accuracy and completeness of all All potential buyers are strongly advised to take advantage of their
material information before completing any purchase. This Marketing The information contained in the following Marketing Brochure is opportunities and obligations to conduct thorough due diligence and
Brochure is not a substitute for your thorough due diligence proprietary and strictly confidential. It is intended to be reviewed only seek expert opinions as they may deem necessary, especially given
investigation of this investment opportunity. Marcus & Millichap by the party receiving it from Marcus & Millichap and should not be the unpredictable changes resulting from the continuing COVID-19
expressly denies any obligation to conduct a due diligence made available to any other person or entity without the written pandemic. Marcus & Millichap has not been retained to perform, and
examination of this Property for Buyer. consent of Marcus & Millichap. This Marketing Brochure has been cannot conduct, due diligence on behalf of any prospective purchaser.
prepared to provide summary, unverified information to prospective Marcus & Millichap’s principal expertise is in marketing investment
Any projections, opinions, assumptions or estimates used in this purchasers, and to establish only a preliminary level of interest in the properties and acting as intermediaries between buyers and sellers.
Marketing Brochure are for example only and do not represent the subject property. The information contained herein is not a substitute Marcus & Millichap and its investment professionals cannot and will
current or future performance of this property. The value of a net for a thorough due diligence investigation. Marcus & Millichap has not not act as lawyers, accountants, contractors, or engineers. All
leased property to you depends on factors that should be evaluated made any investigation, and makes no warranty or representation, potential buyers are admonished and advised to engage other
by you and your tax, financial and legal advisors. with respect to the income or expenses for the subject property, the professionals on legal issues, tax, regulatory, financial, and
future projected financial performance of the property, the size and accounting matters, and for questions involving the property’s
Buyer and Buyer’s tax, financial, legal, and construction advisors square footage of the property and improvements, the presence or physical condition or financial outlook. Projections and pro forma
should conduct a careful, independent investigation of any net leased absence of contaminating substances, PCB’s or asbestos, the financial statements are not guarantees and, given the potential
property to determine to your satisfaction with the suitability of the compliance with State and Federal regulations, the physical condition volatility created by COVID-19, all potential buyers should be
property for your needs. of the improvements thereon, or the financial condition or business comfortable with and rely solely on their own projections, analyses,
prospects of any tenant, or any tenant’s plans or intentions to and decision-making.
Like all real estate investments, this investment carries significant continue its occupancy of the subject property. The information
risks. Buyer and Buyer’s legal and financial advisors must request contained in this Marketing Brochure has been obtained from sources *In addition to all other advisements, notices, and disclaimers set forth
and carefully review all legal and financial documents related to the we believe to be reliable; however, Marcus & Millichap has not in this Marketing Brochure, Marcus & Millichap further advises all
property and tenant. While the tenant’s past performance at this or verified, and will not verify, any of the information contained herein, prospective purchasers that certain Marcus & Millichap related or
other locations is an important consideration, it is not a guarantee of nor has Marcus & Millichap conducted any investigation regarding affiliated parties, including NNN Properties LLC, and/or its
future success. Similarly, the lease rate for some properties, including these matters and makes no warranty or representation whatsoever independent contractor salespeople, brokers of record, partners,
newly-constructed facilities or newly-acquired locations, may be set regarding the accuracy or completeness of the information provided. trustees, beneficiaries, shareholders, members, managers, directors,
based on a tenant’s projected sales with little or no record of actual All potential buyers must take appropriate measures to verify all of the officers, employees, or agents, along with their respective heirs,
performance, or comparable rents for the area. Returns are not information set forth herein. successors, personal representatives and/or assigns (collectively, the
guaranteed; the tenant and any guarantors may fail to pay the lease “Marcus & Millichap Related Parties”) may be acting as principals for
rent or property taxes, or may fail to comply with other material terms NON-ENDORSEMENT NOTICE the Seller or own a direct or indirect beneficial interest in the Property
of the lease; cash flow may be interrupted in part or in whole due to or in its ownership. By accepting this Marketing Brochure, any
market, economic, environmental or other conditions. Regardless of Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is prospective purchaser shall thereby waive any claim they may have
tenant history and lease guarantees, Buyer is responsible for not affiliated with, sponsored by, or endorsed by any commercial based on a conflict of interest given the Marcus & Millichap Related
conducting his/her own investigation of all matters affecting the tenant or lessee identified in this marketing package. The presence of Parties’ role as both agent for the Seller and as the Seller (or as a
intrinsic value of the property and the value of any long-term lease, any corporation’s logo or name is not intended to indicate or imply principal of the Seller).
Table of Contents
Investment Highlights 4
Financial Analysis 5
Concept Overview 6
Surrounding Area 7
Location Overview 8
Property Photos 9
Surrounding Area Photos 10
Local Map 11
Regional Map 12
Demographics 13
Market Overview 14
Representative Photo
Investment Highlights
PRICE: $3,189,217 | CAP: 6.00% | RENT: $191,353
Representative Photo
About the Investment
Long Term Lease | 14.5 Years Left on 20-Year Lease
Triple Net (NNN) Lease with Zero Landlord Responsibilities
Operated by Carrols Restaurant Group (NASDAQ: TAST), one of the Largest
Restaurant Companies and Franchisee’s in the United States
Guaranteed by New CFH, LLC | Subsidiary of Carrols With Over 200+ Units
Attractive Rental Increases of One Percent (1.50%) Annually
Four (4) Tenant Renewal Periods of Five (5) Years Each
About the Location
Dense Retail Corridor | Walmart, Chevron, Walgreens, Food Giant, Tractor Supply,
Subway, Hardee’s, AutoZone, Dollar Tree, Hibbett Sports, U-Haul, State Farm, Huddle
House, Pizza Hut, Marathon and Many More
Strong Student Presence | Over 1,600 Students Traveling Through the Area Regularly
Immediate Access to Regional Medical Network | North Mississippi Medical Center
Gilmore-Amory Less Than a Half-Mile Away
Situated Between Two Major Mississippi Economic and Cultural Hubs
Representative Photo
About the Tenant / Brand
Carrols Restaurant Group is one of the Largest Restaurant Companies in the United
States and the Largest Burger King Franchisee Globally | 1,100+-Unit Operator |
Carrols Has Operated Burger King Restaurants Since 1976
Carrols Operates in 23 States and Employs over 27,000 People
Experienced Leadership Team with Proven Track Records
Burger King Brand is One of the World’s Most Recognized Consumer Brands
4
Financial Analysis
PRICE: $3,189,217 | CAP: 6.00% | RENT: $191,353
PROPERTY DESCRIPTION
RENT SCHEDULE
Concept Burger King
Street Address 803 Highway 278 East Lease Year Annual Rent Monthly Rent Rent Escalation
City, State ZIP Amory, MS 38821 Current - 10/31/2022 $188,525 $15,710 -
Year Built / Renovated 1985
11/1/2022 - 10/31/2023 $191,353 $15,946 1.50%
Building Size Estimated (SF) 2,875
11/1/2023 - 10/31/2024 $194,223 $16,185 1.50%
Lot Size Estimated (Acres) 0.78
11/1/2024 - 10/31/2025 $197,136 $16,428 1.50%
Type of Ownership Fee Simple
11/1/2025 - 10/31/2026 $200,093 $16,674 1.50%
THE OFFERING
11/1/2026 - 10/31/2027 $203,095 $16,925 1.50%
Price $3,189,217
CAP Rate 6.00%
11/1/2027 - 10/31/2028 $206,141 $17,178 1.50%
Net Operating Income $191,353 11/1/2028 - 10/31/2029 $209,233 $17,436 1.50%
LEASE SUMMARY 11/1/2029 - 10/31/2030 $212,372 $17,698 1.50%
Property Type Retail 11/1/2030 - 10/31/2031 $215,557 $17,963 1.50%
Property Subtype Net-Lease Quick-Service Restaurant 11/1/2031 - 10/31/2032 $218,791 $18,233 1.50%
Credit Type Franchisee 11/1/2032 - 10/31/2033 $222,072 $18,506 1.50%
Tenant Burger King
11/1/2033 - 10/31/2034 $225,404 $18,784 1.50%
Guarantor New CFH, LLC
11/1/2034 - 10/31/2035 $228,785 $19,065 1.50%
Original Lease Term 20 Years
11/1/2035 - 10/31/2036 $232,216 $19,351 1.50%
Lease Commencement October 28th, 2016
*Pricing is based on upcoming rent bump. Seller will credit rent differential at closing.
Lease Expiration October 31th, 2036
Lease Term Remaining 14.5 Years
INVESTMENT SUMMARY
Marcus & Millichap is pleased to present the exclusive listing for a Burger King located
Lease Type Triple-Net (NNN) at 803 Highway 278 East. in Amory, MS. The site consists of roughly 2,923 rentable
Landlord Responsibilities None square feet of building space on an estimated 0.80-acre parcel of land. This Burger
King is subject to a 20-year absolute triple-net (NNN) lease, which commenced on
Rental Increases 1.50% Annually October 28th, 2016 and has 14.5 years remaining. The current annual rent is scheduled
Renewal Options Remaining 4x5 to increase by 1.50% annually and in each of the 4, 5-year renewal options.
5
Concept Overview
GREAT FOOD COMES FIRST General Information
Every day, more than 11 million guests visit BURGER KING® restaurants around
the world. And they do so because our restaurants are known for serving high- Address Toronto, ON
quality, great-tasting, and affordable food. Founded in 1954, BURGER KING® is
Website http://www.rbi.com
the second largest fast food hamburger chain in the world. The original HOME
OF THE WHOPPER®, our commitment to premium ingredients, signature Stock Ticker QSR (NYSE)
recipes, and family-friendly dining experiences is what has defined our brand
for more than 60 successful years. Current Price* $47.97
*As of June 22, 2022
#2 Fast Food Hamburger Chain, Globally Carrols, LLC
• More than $20 billion in annual system-wide sales, and nearly 350,000 Carrols, LLC is Burger King’s largest franchisee and has operated BURGER KING®
team members, worldwide. The concept has a market capitalization of restaurants since 1976. As of April 30, 2019, the Company completed the
roughly $11 billion. acquisition of 221 additional BURGER KING® and Popeyes restaurants in 10
Southern and Southeastern states. Carrols, which operates 1,010 Burger King
and 55 Popeyes restaurants in 23 states following the acquisition, is the largest
Global Brand Presence | Fully – Franchised
franchisee of Restaurant Brands International, Inc. Carrols LLC’s direct parent
Business Model company, Carrols Restaurant Group, INC. (Nasdaq: TAST), is one of the only
• Over 18,000 restaurants in 100+ countries. QSR industry-leading EBITDA publicly traded companies solely controlling Burger King Franchises and one of
margins the largest restaurant companies and franchisee’s in the United States.
Rich Heritage | Stable, Reliable Long-Term Burger King Worldwide, Inc.
Ownership Founded in 1954, Burger King® is the second largest fast food hamburger chain
• Founded in 1954 with deep ties to the Miami Community. Burger King has in the world. The original Home of the Whopper, the Burger King® system
been actively managed by 3G since 2010. operates in approximately 18,000 locations serving more than 11 million guests
daily in 100 countries and territories worldwide. Approximately 100 percent of
Burger King® restaurants are owned and operated by independent franchisees,
3G Capital many of them family-owned operations that have been in business for decades.
3G Capital is a global investment firm focused on long-term value, with a
particular emphasis on maximizing the potential of brands and businesses. The
Restaurant Brands International
firm and its partners have a strong history of operational excellence, board
Restaurant Brands International is one of the world's largest quick service
involvement, deep sector expertise, and an extensive global network. 3G Capital
restaurant companies with approximately $23 billion in system sales and over
works in close partnership with management teams at its portfolio companies
18,000 restaurants in 100 countries. Restaurant Brands International owns two
and places a strong emphasis on recruiting, developing and retaining top-tier
of the world’s most prominent and iconic quick service restaurant brands – Tim
talent. In October 2010, 3G Capital completed the acquisition of Burger King®,
Hortons® and Burger King®. These independently operated brands have been
one of the most widely-recognized consumer brands in the world.
serving their respective guests, franchisees, and communities for over 50 years.
6
Surrounding Area
7
Location Overview
This Burger King investment property is positioned along Highway 278 East which
experiences an average daily traffic count exceeding 13,400 vehicles. Highway 278 East
intersects west of the property with State Route 25 which boasts an average daily traffic
count of over 6,800 vehicles. There are more than 9,970 individuals living within a five-
mile radius of the property and over 20,490 within a 10-mile radius.
The subject property benefits from being well-positioned in a very dense retail corridor
consisting of national and local tenants, academic institutions and shopping centers all
within close proximity of this property. Major national tenants in the area include
Walmart, Chevron, Walgreens, Food Giant, Tractor Supply, Subway, Hardee’s, AutoZone,
Dollar Tree, Hibbett Sports, U-Haul, State Farm, Huddle House, Pizza Hut, Marathon as
well as several others. West Amory Elementary School, East Amory Elementary School,
Amory Middle School, and Amory High School are all within a three-mile radius of the
property. Collectively these schools serve approximately 1,600 students. North Mississippi
Medical Center Gilmore-Amory is a 95-bed facility providing emergency care, intensive
care, a wound care center, diagnostics, surgery, and many other inpatient & outpatient
services. The subject property is midway between Tupelo and Columbus, two of
Mississippi’s largest cities. These cities have populations of 38,300 and 25,900 ADTC: 13,432
respectively.
The citizens of Amory today enjoy wide paved, tree-lined streets, a refurbished
downtown with canopied walks, several additional business areas, new subdivisions,
several school buildings, over twenty churches, a progressive hospital with dozens of
doctors, several manufacturing facilities, parks, community organizations, a museum
located in the original hospital building, two golf courses, a library, two community
centers, and numerous ball fields. The early history of the town is commemorated each
spring with a Railroad Festival and an old train engine, the Frisco Park Steam Engine, is on ADTC: 6,812
display in the downtown park. With a population of approximately 6,930, the town acts
as a host for the many guests of a benefit concert designed to raise money for
scholarships, a project called Entertainment for Education. The economy of Amory, MS
employs 2,570 people. The largest industries in Amory, MS are Manufacturing, Health
Care & Social Assistance, and Retail Trade, and the highest paying industries are
Administrative & Support & Waste Management Services, Professional, Scientific, &
Management, & Administrative & Waste Management Services, and Finance & Insurance.
8
Property Photos
Subject Property Subject Property
Subject Property Subject Property
9
Surrounding Area Photos
10Local Map
11Regional Map
MISSISSIPPI
12Demographics
3 Miles 5 Miles 10 Miles
POPULATION TRENDS
2010 Population 8,087 10,696 21,625
10 Miles 2022 Population 7,432 9,970 20,490
2027 Population Projection 7,250 9,756 20,127
HOUSEHOLD TRENDS
2010 Households 3,304 4,326 8,494
2022 Households 3,046 4,039 8,046
5 Miles 2027 Household Projection 2,973 3,953 7,900
Annual Growth 2010-2022 0.00% 0.00% 0.10%
Avg Household Income $56,442 $57,975 $60,551
Median Household Income $38,578 $41,680 $44,292
3 Miles HOUSEHOLDS BY HOUSEHOLD INCOME
(2022)
< $25,000 1,094 1,315 2,357
$25,000 - 50,000 616 918 2,009
$50,000 - 75,000 490 673 1,377
$75,000 - 100,000 445 583 1,069
$100,000 - 125,000 173 232 480
$125,000 - 150,000 23 55 210
$150,000 - 200,000 147 174 348
$200,000+ 58 88 196
13Market Overview
Tupelo is a city in, and the county seat of, Lee County, Mississippi, United
States. With an estimated population of 38,300, Tupelo is the sixth-largest city in
Mississippi and is considered a commercial, industrial, and cultural hub of North
Mississippi. The Tupelo micropolitan area contains Lee, Itawamba, and Pontotoc
counties and had a population of 140,081 in 2017.
Tupelo has a deep connection to Mississippi's music history, it is known as the
birthplace of Elvis Presley and Diplo as well as the origin of the group Rae
Sremmurd. The city is home to multiple art and cultural institutions, including the
Elvis Presley Birthplace and the 10,000-seat BancorpSouth Arena, the largest
multipurpose indoor arena in Mississippi. Tupelo is the only city in the Southern
United States to be named an All-America City five times, most recently in 2015.
Its Main Street program, Downtown Tupelo Main Street Association, was the
winner of the national Main Street's Great American Main Street Award in 2020.
Historically, Tupelo served as a regional transportation hub, primarily due to its
location at a railroad intersection. More recently, it has developed a strong
tourism and hospitality sector is based around Elvis Presley’s birthplace and
Natchez Trace. The city has also been successful at attracting manufacturing,
retail, and distribution operations. Tupelo is the headquarters of the North
Mississippi Medical Center, the largest non-metropolitan hospital in the United
States. It serves people in North Mississippi, northwest Alabama, and portions of
Tennessee.
The headquarters of two large banking institutions are located here:
BancorpSouth, with approximately nearly $18 billion in assets (2019), and
Renasant Bank, with assets of more than $12.7 billion (2019). Tupelo is the
smallest U.S. city that hosts the headquarters of more than one bank with over
$10 billion in assets. Tecumseh, Heritage Home Group, Hancock Fabrics, Inc.,
Magnolia Fabrics, Toyota Motor Manufacturing Mississippi, H.M. Richards, JESCO
Construction, MTD Products, Savings Oil Company (Dodge's Stores), and Cooper
Tire & Rubber Company all operate or are headquartered in Tupelo and Lee
Tupelo, MS County. Renin Corporation, a subsidiary of BBX Capital Corporation, operates a
production center in Tupelo.
14E XC LU S I V E N E T - L EA S E O F F E R I N G MS Brokers of Record Marcus & Millichap William M. Davis 5100 Poplar Ave., Ste. 2505 Memphis, TN 38137 Tel: (901) 620-3626 License: B-15586 Bang Realty Brian Brockman 11427 Reed Hartman Hwy, Suite 236 Cincinnati, OH 45241 Tel: (513) 898-1551 License: 21542
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