031102 Menu Price Increases Inevitable, Imminent for Casual Dining
A NET LEASED CASUAL DINING RESTAURANT
Transcript of A NET LEASED CASUAL DINING RESTAURANT
IHOPA NET LEASED CASUAL DINING RESTAURANT
SACRAMENTO, CA
IHOP
5.50%CAP
$1,552,000PRICE
4770 FLORIN ROAD, SACRAMENTO, CA 95823
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
LEASABLE SF4,461 SF
TRAFFIC273,000+
LEASE TYPEABSOLUTE NNN
LAND AREA0.57 Acres
NOI$85,377
LEASE EXPIRATION12/11/2021
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Overview
Triple net lease with recent upgrades completed
Tenant spent over $175,000 over the last 12 months to remodel building
and property
Long Term Corporate Leased Store at location for over 20 years
Franchisee operates over 20 IHOPs in the Sacramento Region
Lease has just over three years remaining and no remaining options
Sustainable rent level with potential upside
Ideal location in Florin Square Shopping Center
Visible and accessible from Highway 99 (207,200 VPD)
Located between the major retail shopping centers in South Gate Plazaand Florin Mall Town Center
THE OFFERING represents the opportunity for an investor to acquire an established and proven, net leased IHOP restaurant with three years remaining of primary term at a sustainable rent level with potential for long term rent growth. The lease is a long-term corporate lease that has been at the location since 1986.
The property is located at the ‘top five’ retail intersection of Highway 99 and Florin Road in the heart of a major retail trade area in Sacramento. The location benefits from on/off ramp access immediately off of Highway 99 with vehicle counts of 207,200 VPD. The property shares a parking lot with a new construction Dutch Bros Coffee building which attracts morning/breakfast traffic. Parking in the center is ample and shared.
DAVE [email protected]: 415.274.7390 CA DRE#: 01389761
Contact the team
IHOP HAS OVER 1,700 LOCATIONS IN ALL 50 U.S. STATES
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
SACRAMENTO is the capital city of California, as well as the the sixth-largest city in the state. The city hosts a population of over 500,000 and a metropolitan area of over 2,500,000. It is the most rapidly-growing major city in the state and a hub for politics, finances, education and tourism. Sacramento is home to several major universities, including Sacramento State University, University of the Pacific, and nearby University of California - Davis.
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Investment Highlights
Aerial
99
99
STOCKTO
N BO
ULEVARD
STOCKTO
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BOU
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FRANKLIN
BOU
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FRAN
KLIN
BOU
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FLORIN ROAD FLORIN ROAD
MIDDLE SCHOOL
HIGH SCHOOL
HIGH SCHOOL
ELEMENTARY SCHOOL
SACRAMENTO COUNTY
SACRAMENTO COUNTY
CALIFORNIA DMV
ELEMENTARY SCHOOL
ELEMENTARY SCHOOL
ELEMENTARY SCHOOL
®
182,700 VPD
28,583 VPD
56,296VPD
30,600 VPD
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Aerial
207,200VPD
SACRAMENTO CITY CENTER
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
SACRAMENTO CITY CENTER
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
SACRAMENTO CITY CENTER
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
FLORIN ROAD
10,420VPD
99
207,200 VPD
56,296VPD
EAST PARKWAY
Retail Aerial
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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Retail Aerial
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
FLORIN ROAD10,420
VPD
EAST PARKWAY
56,296VPD
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Income & Expense
CURRENTPrice: $1,552,000Capitalization Rate: 5.50%Price Per Square Foot: $347.90Total Leased (SF): 100.00% 4,461
Total Vacant (SF): 0.00% 0Total Rentable Area (SF): 100.00% 4,461INCOME P/SFScheduled Rent $19.14 $85,377
EFFECTIVE GROSS INCOME $85,377
EXPENSES P/SFProperty Tax NNNInsurance NNNCommon Area Maintenance NNNNET OPERATING INCOME $85,377
11/26/2018 Capital Pacific Real Estate Brokerage Co.
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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Income & Expense
Rent Roll
TENANT INFO LEASE TERMS RENT SUMMARY
TENANT SQ. FT PERCENT OF LOT TERM MONTHY RENT ANNUAL RENT RENT/FT/YR LEASE TYPE
IHOP 4,461 100.00% 12/12/1986 12/11/2021 $7,114.75 $85,377.00 $19.14 NNN
Corporate Lease No Remaining Options
Current Totals: 4,461 100.00%
Occupied 4,461 100.00% 2018 Total Monthly Rent: $7,114.75
Vacant 0 0.00% 2018 Total Annual Rent: $85,377.00
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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BASE RENT
DATE RANGE MONTHLY RENT ANNUAL RENT
12/12/1986 - 12/11/2021 $7,114.75 $85,377.00No Remaining Options
RENT
TENANT International House of Pancakes, Inc.GUARANTOR CorporateBUILDING SF 4,461 SFLEASE TYPE Absolute NNNTERM 25 year base term with two 5-year optionsRENT COMMENCEMENT December 12, 1986EXPIRATION December 11, 2021
PREMISE& TERM
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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Lease AbstractTENANT’S OBLIGATIONS Keep Leased premises in good condition and repair. LANDLORD’S OBLIGATIONSRepair common area subject to reimbursement.TAXESTenant shall pay its pro rata share of all taxes assessed against Premises, and personal property tax on demised premises.INSURANCETenant must have public liability insurance, fire insurance. Lessor must insure common area subject to reimbursement.UTILITIESTenant pays for all utilities on leased premises.CAMTenant pays pro rata share.
ASSIGNMENT/SUBLETTINGRequires written consent of landlord.EARLY TERMINATIONNone.RIGHT OF FIRST REFUSALLessor shall give to the lessee a notice in writing specifying terms of desire to sell property, and offer to sell it to lessee upon aforementioned terms. Tenant has 10 days to accept or reject. For 90 days thereafter, lessor is free to sell at agreed upon terms.
EXPENSES
LEASEPROVISIONS
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For 60 years, the IHOP family restaurant chain has served its world famous pancakes and a wide variety of breakfast, lunch, and dinner items that are loved by people of all ages. IHOP offers its guests an affordable, everyday dining experience with warm and friendly service.
As of December 2017, there were 1,786 IHOP restaurants in all 50 states and the District of Columbia, as well as in Bahrain, Canada, Dubai (UAE), Guatemala, Kuwait, Mexico, Puerto Rico, Saudi Arabia, The Philippines and the U.S. Virgin Islands. In 2017 alone, they added 50 restaurants. The company is owned by DineEquit and 99% of the restaurants are run by independent franchisees. DineEquit saw slaes of over $604.8 million in fiscal 2017.
ABOUT IHOP
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
$2.3 Million
LOCATIONS THROUGHOUT WESTERN U.S.
1,786
Tenant Overview
DINEEQUIT 2017 SALES
$604.8 Million
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Site Plan
EAST PARKWAY
CIRCLE PARKWAY
FLORIN ROAD
ON RAMP
99
NOT A PART
MARKET
RESTAURAN
TM
ISC.
56,296VPD
10,420VPD
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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SignageSignage
SMOKE SHOPCLEANERSHAIR SALON
22’-0
”
5’-6
”5’
-6”
1’-9
”1’
-9”
11’-6”
12’-0”
SCALE: 1/4” = 1’
MAIN SIGN - FRONT ELEVATION
7134 Kingsley St. Sacramento, CA 95828P. 916.640.5676WWW.PANSIGNCO.COMCCL# 756432
Phase:
Conceptual
Design Development
Construction Drawing
Client Approval
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Date: 4-24-18
Revision 1: 8-10-18
Revision 3:
Revision 4:
Drawn By: LP
ALL RIGHTS RESERVED:This is an original unpublishedpiece of artwork generated byPAN SIGN CO. It is not to beshown to anyone outside yourorganization, nor is to be used,reproduced, copied or exhibitedin any fashion without writtenauthorization from PAN SIGN CO.
Sheet No:
1.00
4750 Florin RoadSacramento, CA 95823
Project:
Address:
SIMULATED NIGHT VIEW
4750 Florin RdMonument Sign
3/16” THICK WHITE LEXAN FACES
ALUMINUM SIGN CABINET W/ TEXCOTE PAINTED DUNN- EDWARDS PRAIRIE LAND (DET489)
ALUMINUM CAP AND TRIM W/ TEXCOTE PAINTED DUNN-EDWARDDS ESPRESSO MACCHIATO (DET680)
1/2” THICK CLEAR ACRYLIC ADDRESS #’S W/ PAINTED WHITE, SATIN FINISH
ALUMINUM BASE W/ MASONARY STACKED STONE
TOTAL SQFT: 264
COLOR GUIDE
DUNN- EDWARDS PRAIRIE LAND (DET489)
DUNN-EDWARDDS ESPRESSO MACCHIATO (DET680)
INTERNATIONAL GROCERIESRED STAR
1’-8”
3’-1 1/2”
AMERICANFURNITURE
G A L L E R I E S
4750 - 4770
SMOKE SHOPCLEANERSHAIR SALON
INTERNATIONAL GROCERIESRED STAR
AMERICANFURNITURE
G A L L E R I E S
4750 - 4770
Revision 2: 8-31-18
2’-0”2'-0" 2'-0"
THIS PACKAGE IS CURRENTLY UNDER APPLICATION BY THE LANDLORD AND PROJECTED FOR INSTALLATION IN 2019. 12
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
POPULATION
1-MILE 3-MILES 5-MILES
2010 23,004 180,283 359,050
2018 24,750 192,133 382,996
2023 25,987 201,145 402,016
2018 HH INCOME
1-MILE 3-MILES 5-MILES
Average $51,021 $52,403 $72,907
Median $36,946 $39,793 $52,855
SACRAMENTO
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Demographics
TOP EMPLOYERS IN SACRAMENTO VALLEY
EMPLOYER
State of California 69,469
Sacramento County 10,634
UC Davis Health System 9,985
Sutter Health SacramentoSierra Region 6,507
Intel Corp. 6,000
SACRAMENTO
THE AVERAGE HOUSEHOLD INCOME WITHIN A 5-MILE RADIUS
IS OVER $72K
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SACRAMENTO,CALIFORNIA
SACRAMENTO is the capital city of California, the sixth-largest city in the state, and the 35th largest city in the United States. The urban Sacramento area has a population of 1.44 million while the Sacramento Valley, which includes ten counties, has an estimated population of 2.66 million.
Sacramento is one of the most historic cities in California, boasting an impressive array of museums, landmarks, parks, amenities, and more. California State University, Sacramento, is located in downtown Sacramento and offers 151 Bachelor’s degrees, 69 Master’s degrees, 28 teaching credentials, and 2 Doctoral degrees. There are over 30,500 students enrolled annually.
The Sacramento Valley is located in the Central Valley, which is comprised of ten Northern California counties. Government and transportation are key sectors of the
economy. Technology-related companies such as Intel and Hewlett-Packard have increasingly been drawn to Sacramento based on proximity to research centers and a well-educated labor pool. Other economic drivers include health services, hospitality, education & construction.
SACRAMENTO ECONOMY
Location Overview
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
2.66 MILLION
SACRAMENTO VALLEY POPULATION (ESTIMATED)
SACRAMENTO, CA
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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
DAVE [email protected]: 415.274.7390
CA BRE# 01389761
JOE CACCAMOJOHN ANDREINI
ZANDY SMITH
DAVE LUCAS
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CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS
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