3300 N 1 Avenue Confidential Offering Memorandum ... › d2 › -cMNLlkJqCaa0z7R4...The Property is...

Confidential Offering Memorandum3300 N 1st Avenue

Evansville, IN 47710Confidential Offering Memorandum3300 N 1st Avenue

Evansville, IN 47710

©2018 Jones Lang LaSalle IP, Inc. All rights reserved.

Popeyes – Evansville, IN

Table of Contents

I. Investment Summary 03

II. Property Overview 05

III. Market Overview 07

V. Tenant Overview 14

VI. JLL Contacts 16

© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 3

Investment Summary

Popeyes – Evansville, IN

Popeyes | Evansville, IN


Investment Summary

JLL is pleased to offer for sale the fee-simple interest in a single-tenant Popeyes restaurant (the “Property”, or “Asset”) located in Evansville, Indiana. The Asset

features an absolute net lease with zero landlord responsibilities and 15.5 years of contractual term remaining. There are annual rent increases at the lesser of 1.50%

or 1.25 times the CPI increase, and the tenant has 4, 5-year options to extend the lease. The tenant has guaranteed the lease through both their master franchise

entity and with a personal guarantee, and reports financials quarterly. This offering provides a long-term, passive net lease opportunity located within a dynamic retail

trade area in Indiana’s third-largest city and regional hub.

PROPERTY SUMMARY

Property Address3300 N 1st Avenue

Evansville, IN 47710

Tenant Evansville Favorite Chicken Inc. d.b.a.

Popeyes

Purchase Price $1,614,560

Cap Rate 6.25%

NOI $100,910

Lease Expiration 12/31/2033

Lease Term Remaining 15.5 Years

Renewal Options 4, 5-year options

Rent EscalationsLesser of 1.50% annually or 1.25x CPI

including option periods

Year Built 2005

Lease Type Absolute NNN

Landlord Responsibilities None

Total Square Feet 3,235 SF

Parcel Size 1.13 Acres

INVESTMENT HIGHLIGHTS

EXCELLENT IN-PLACE LEASE FUNDAMENTALS

• Absolute NNN lease with zero landlord responsibilities, 15.5 years of primary

term remaining, and contractual rental growth annually.

STRONG AND EXPERIENCED TENANT

• The tenant has many years of experience in the QSR industry and operates

multiple restaurants. The lease is guaranteed by Decatur Fastfood LLC and a

personal guarantee from the operator.

• The Asset is a financially high-performing location, and the buyer will benefit from

quarterly financial reporting required from the tenant.

DYNAMIC RETAIL MARKET

• The Asset is located on 1st Avenue surrounded by national retailers such as

Target, Walmart, CVS, Walgreens, Starbucks, and numerous restaurants and

regional grocers. Other area traffic drivers include Evansville Country Club and Ivy

Technical Institute.

• There are over 120,000 residents within 5 miles of the Asset and retail vacancy is

minimal at just 3.1% in the submarket, significantly lower than the average for the

MSA (6.7%).

*Based on full year 2016 financials


Property Overview Popeyes – Evansville, IN



Property Overview

The Property is optimally positioned along 1st Avenue, a busy retail corridor just north of Evansville’s downtown. There are 15.5 years of primary lease term

remaining on a triple net lease with absolutely zero landlord responsibilities and annual rent increases of the lesser of 1.50% or 1.25x CPI. The Tenant is an

experienced QSR operator and operations at this location are highly profitable, with financials reported quarterly. The Asset is extremely well parked with over

17 spaces per 1,000 SF, and is exceptionally large for a fast food Asset at 1.13 acres.

BUILDING SPECIFICATIONS

Address 3300 N 1st Avenue, Evansville, IN 47710

Year Built 2005

Parcel Size +/- 1.13 Acres

Parking Spaces +/- 55 Spaces

Property Size +/- 3,235 SF

Tenant Evansville Favorite Chicken, Inc. d.b.a. Popeyes

Guarantor Decatur Fastfood LLC & Personal Guaranty

Financials Both unit and guarantor financials reported quarterly

Lease Type Absolute NNN

LL Responsibilities None

Lease Commencement 12/30/2013

Lease Expiration 12/31/2033

Lease Term Remaining 15.5 Years

Renewal Options 4, 5-year options

Net Operating Income $100,910

Rental Increases Lesser of 1.50% or 1.25 times the change in CPI annually


Market Overview & Aerials Evansville, IN



Market Overview

Evansville OverviewEvansville, Indiana is the county seat of Vanderburgh County and the largest city in Southern Indiana, serving as the commercial, medical, and cultural hub of

the IL-IN-KY tri-state area. The greater Evansville MSA is home to over 314,000 residents.

Evansville is the trade hub for large portions of Indiana, Illinois, and Kentucky, and plays host to a large number of major employers. Evansville is home to the

headquarters of NYSE-listed companies such as Accuride, Berry Global, Springleaf, and Vectren, as well as the NASDAQ-listed Old National Bank and Shoe

Carnival. Mead Johnson operates a global operations center in Evansville, and Alcoa, AK Steel, and Toyota have plants in the Evansville area.

Evansville is an important transit hub for both civilian travel and commercial shipping. The Evansville Regional Airport offers 30+ daily flights to and from

Atlanta, Charlotte, Chicago, Dallas/Fort Worth, Detroit, and Orlando/Sanford. Interstate-64 is passes through Evansville and provides convenient automobile travel

to St. Louis and Louisville.

CSX, Norfolk Southern, Indiana Southwestern, and Evansville Western all operate major freight railways through Evansville. These rail lines are served by the

Howell Yard, an intermodal facility that handles up to 3,000 containers and piggyback trailers per month. Evansville’s port system along the Ohio River includes

three public ports and numerous private ports, with year-round service from five major barge companies operating on the Ohio River. The river connects Evansville

to all major U.S. river logistics markets, the Great Lakes, and international markets through the Port of New Orleans. Additionally, Evansville has been a U.S.

Customs Port of Entry for over 125 years, allowing international cargo to be shipped to Evansville in bond and clear custom upon arrival.

Retail Market Statistics

As of Q12018Evansville

Northside/

Airport

(Market) (Submarket)

Total Retail Inventory (SF) 21,062,868 2,497,748

Vacancy 6.7% 3.1%

12 Month Net Absorption (SF) -533,847 17,560

Evansville Demographic Snapshot

1-Mile 3-Miles 5-Miles

Total Population 8,097 52,096 124,105

Total Households 3,815 21,985 52,227

Average Household Income $46,592 $51,114 $57,328

Median Household Income $35,279 $37,866 $41,803

Popeyes | Evansville, INMarket Overview

Aerial Map

9© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.

Evansville Country

Club

IN-66

22,700 VPD



Looking North

Superior

Auto

River City

Pawn

North Park

Church

Nation’s

Medicines

Woodbridge

Place

192 Units

Fairway

Plaza

60 Units



Looking South

Superior

Auto

River City

Pawn

Grandview Tower

Apartments

172 Units

St. Matthews

Church

Downtown

Evansville



360° Aerial

W

S SE

SW



360° Aerial Continued

NE

NWN

E


Tenant Overview Popeyes – Decatur Fastfood LLC


Popeyes Overview

Popeyes Louisiana Kitchen is a multinational chain of Cajun-inspired fried

chicken restaurants. Popeyes has restaurants in over 40 U.S. states, the District

of Columbia, Puerto Rico, and over 30 countries worldwide. With over 2,500

locations, Popeyes boasts the second-largest footprint of any U.S. chicken

chain. The company operates 30 corporate locations, while the remainder are

franchised.

In March of 2018, Popeyes was acquired by Restaurant Brands International, a

Canadian conglomerate that also owns and operates the Tim Hortons and

Burger King banners. Restaurant Brands International is traded on the New York

Stock Exchange under the “QSR” ticker, and recorded $4.58 billion in revenue in

2017.

Evansville Favorite Chicken, Inc. Overview

The subject Property is leased to Evansville Favorite Chicken, Inc., operated by

a multi-restaurant franchisee with extensive experience in the QSR industry. The

lease is guaranteed both by Decatur Fastfood LLC, and a personal guarantee

from the operator.


Tenant Overview


16

JLL Contacts

TRANSACTION LEADS

Peter BaumanJLL Capital Markets

+1 602 282 6289

[email protected]

Tivon MoffittJLL Capital Markets

+1 602 282 6348

[email protected]

www.us.jll.com/capitalmarketsCopyright © Jones Lang LaSalle IP, Inc. 2018This publication is the sole property of Jones Lang LaSalle and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle.

The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information.

We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance

on this publication. Jones Lang LaSalle Americas, Inc., California license # 01223413. Jones Lang LaSalle Americas, Inc. License # 19262.

Contact Information

PRODUCTION SUPPORT

Quinn McCarthyJLL Capital Markets

+1 312 228 3363

[email protected]

BROKER OF RECORD

John RobinsonMidwest Brokerage

+1 317 810 7172License # RC50900387

mailto:[email protected]


http://www.us.jll.com/capitalmarkets


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