Birmingham AL - 2,794 SF $2,785,000 • 5.50 % Cap Rate · Birmingham was second in the nation for...

14
Investment Highlights Brand new construction completed November 2014 20 year NNN corporate lease that commenced in November 2014 with 7% rent bumps every 5 years Signalized corner location just off I-59 with close proximity to the international airport and downtown district Well positioned within trade area at a high profile intersection adjacent to Walmart Over 50,000 cars per day in front of property Over 104,000 residents in a 5 mile radius of property Birmingham AL - 2,794 SF $2,785,000 • 5.50 % Cap Rate Jack Jamison, Broker-In-Charge 550 S. Main Street, Suite 300 • Greenville, SC 29601 864.263.5414 o • 864.232.0160 f • www.REALTYLINKDEV.com For investment information: J. Tyson Glasser, CCIM • Investment Sales Advisor [email protected] • 864.263.5427 o • 404.435.6312 c

Transcript of Birmingham AL - 2,794 SF $2,785,000 • 5.50 % Cap Rate · Birmingham was second in the nation for...

Investment Highlights

• Brand new construction completed

November 2014

• 20 year NNN corporate lease that

commenced in November 2014 with 7%

rent bumps every 5 years

• SignalizedcornerlocationjustoffI-59with

close proximity to the international airport

and downtown district

• WellpositionedwithintradeareaatahighprofileintersectionadjacenttoWalmart

• Over 50,000 cars per day in front of property

• Over 104,000 residents in a 5 mile radius of property

BirminghamAL-2,794SF

$2,785,000•5.50%CapRate

JackJamison,Broker-In-Charge550S.MainStreet,Suite300•Greenville,SC29601

864.263.5414o•864.232.0160f•www.REALTYLINKDEV.com

Forinvestmentinformation:J. Tyson Glasser, CCIM •InvestmentSalesAdvisor

[email protected]•864.263.5427o•404.435.6312c

Investment Property

ATTENTION:Thisbrochurehasbeenpreparedtoprovidesummaryinformationtoprospectivepurchasersandtoestablishapreliminarylevelofinterest in thepropertypresented. Itdoesnot,however,purport topresentallmaterial information regarding thesubjectproperty,and it isnota substitute fora thoroughduediligence investigation. Inparticular,RealtyLink,LLChasnotmadeany investigationandmakesnowarrantyorrepresentationwithrespecttothefinancialconditionorbusinessprospectsofanytenantoranytenant’splansorintentionstocontinueorrenewitsoccupancyofthesubjectproperty.Theinformationcontainedinthisbrochurehasbeenobtainedfromsourceswebelievetobereliable;however,RealtyLink,LLChasnotconductedanyinvestigationregardingthesemattersandmakesnowarrantyorrepresentationwhatsoeverregardingtheaccuracyorcompletenessoftheinformationprovided.

TheRealtyLinknameisaregisteredtrademarkofRealtyLink,LLC.

TheRealtyLinklogoisaregisteredservicemarkofRealtyLink,LLC.

Textandcontent©Copyright2014RealtyLink,LLC.

9400ParkwayEast

Birmingham,JeffersonCounty,Alabama35215

TableofContents

Property Summary

FinancialSummary

TenantProfile

Property Photos

Site Plan

Aerial

LocationMaps

MarketPhotos

MarketProfile

Demographics

Property Summary

Location: NWsignalizedcornerofParkwayEastandRedLaneRd,lessthan1/2mileoffI-59exit134about8 miles NE of downtown Birmingham

LandSize: +/-0.95Acres

BuildingSize: +/-2,794SquareFeet

BuildingAge: NewconstructioncompletedNovember2014

Tenant/Guarantor: Hardee’sRestaurants,LLC(corporate)

LeaseType: AbsoluteTripleNet

LeaseCommencement: November18,2014

BaseLeaseTerm: 20years(7.0%rentbumpsevery5years)

OptionTerms: 4optionsat5yearseach

LandlordResponsibility: None

TenantResponsibility: CAM,Taxes,Insurance,Utilities,HVAC,Roof,Structure,ParkingLot

Frontage: +/-288feetonParkwayEastand+/-130feetonRedLaneRd

Signage: All4sidesofbuilding,elevatedpylononParkwayEastandinterstateexitsign

Access: Rightin/rightoutentrance/exitonParkwayEastandallturnentrance/exitonRedLaneRd

Parking: +/-37Spacesincluding2handicapspaces

Zoning: CB-2(ContingencyGeneralBusinessDistrict)

Declaration: PremisesaresubjecttoCovenants,Conditions&RestrictionsAgreement

RightofFirstRefusal: Tenanthas20daysfromreceiptoflandlordnoticetoexerciseROFRoption

TrafficCounts: +/-50,840onParkwayEastatRedLaneRd(2013AADT-ALDOT)

+/-54,410onI-59WestofExit134(2013AADT-ALDOT)

Demographics: 2014 1-Mile 3-Mile 5-Mile

Population 5,405 42,310 103,880

Households 2,270 16,419 40,532

AverageHHIncome $50,140 $48,388 $50,472

MedianHHIncome $39,855 $38,071 $38,056

FinancialSummary

PurchasePrice: $2,785,000

EstimatedBaseRent: $153,056.55 (years1-5)

$163,770.51 (years6-10)

$175,234.44 (years11-15)

$187,500.85 (years16-20)

GoingInCapRate: 5.50%

CapRateon12/1/19: 5.88%

CapRateon12/1/24: 6.29%

CapRateon12/1/29: 6.74%

AverageCapRate: 6.10%(years1-20)

CAM: Tenantpays

Taxes: Tenantpays

Insurance: Tenantpays

AdministrativeFee: None

REAContribution: Tenantpays

AssumableFinancing: Propertydeliveredfreeandclearofdebtatcloseofescrow

ProposedFinancing: 65-70%loan-to-value($835-975Kdownpayment)

4.0-4.25%interestrate

10yearterm

25-30yearamortization

$114,662.00annualdebtservice(using65%LTV,4.0%interest,25yearamort.)

$38,394.55afterdebtcashflow(years1-5)

3.94%cash-on-cashreturn(years1-5)

TenantFinancials: Availablefrombrokerafterexecutionofaconfidentialityagreement

TenantProfile

Hardee’s®isawholly-ownedsubsidiaryofCKERestaurantsHoldings,Inc.,aprivatelyheldcompanyheadquarteredinCarpinteria,CA.Throughitssubsidiaries,CKEfranchisesandoperatesHardee’s®andCarl’sJr.®quick-servicerestaurants.TheCKESystemincludesmorethan3,550locationsin42statesand33countries.

Hardee’s®hasbuiltapositionasoneofAmerica’spremierburgerbrands.Foundedin1960byWilberHardee,Hardee’s®operatesorfranchisesmorethan2,000quick-servicerestaurantsin30U.S.statesand9countries.Today,Hardee’s®islookingforexceptionalnewfranchisecandidatesthroughouttheMid-WesternandEasternUnitedStates.

FoundedbyindustrypioneerCarlN.Karcher,Carl’sJr.®restaurantshavebeenaWestCoastfavoriteformorethan70years.TheKarcherssoongrewtheirsmallbusiness—eventuallyfocusingtheireffortsontheCarl’sJr.brand,oneofthefirstinanewbreedofrestaurantsthattodaymakeupthequick-servicerestaurantindustry.Withmorethan1,500restaurants,Carl’sJr.isregardedastheplacetogoforpremium-qualityburgers.

Sinceitsfoundingin1990,Apollohasgrowntobecomeoneoftheworld’slargestalternativeinvestmentmanagers.AsofMarch31,2013,Apollohadtotalassetsundermanagementof$114billion,withateamof644employeeslocatedintenofficesaroundtheworld.Theyarecontrarian,value-orientedinvestorsinprivateequity,credit,andrealestate.Apolloraises,invests,andmanagesfundsonbehalfofsomeoftheworld’smostprominentpensionandendowmentfundsaswellasotherinstitutionalandindividualinvestors.ApolloaquiredCKERestaurantsin2010.

Hardee’s®consistentlyout-deliversthecompetitionwithaninnovativemenustrategythatfocusesondevelopingpremium,sit-downrestaurantqualitymenuitems.Whetherit’sthe1/3-lb.100%BlackAngusBeefThickburger®line,Hand-ScoopedIceCreamShakes&Malts™orMadefromScratch™Biscuits,Hardee’s®providesabest-in-classmenuthatsupportsapremiumfranchiseopportunity.

Property Photos

Site Plan

To I-59

Aerial

SubjectProperty

LocationMaps

MarketPhotos

MarketProfile

CommunityProfile

BirminghamisthelargestcityinAlabamawithapopulationcurrentlyestimatedat242,820,andametropopulationof1,079,089(BirminghamForward.gov).ThecityisthecountyseatofJeffersonCounty.ThepaceofBirmingham’sgrowthduringtheperiodfrom1881through1920earneditsnicknamesTheMagicCityandThePittsburghoftheSouth.Fromitsfoundingthroughtheendofthe1960s,BirminghamwasaprimaryindustrialcenteroftheSouth.Theeconomydiversifiedduringthelaterhalfofthetwentiethcentury.Thoughthemanufacturing industry maintains a strong presence in Birmingham, other businesses and industries such as banking, telecommunications, transportation,electricalpowertransmission,medicalcare,collegeeducation,andinsurancehaveriseninstature.

Birmingham ranks as one of the most important business centers in the Southeastern UnitedStatesandisalsooneofthelargestbankingcentersintheUnitedStates.Inaddition,theBirminghamareaservesasheadquarterstooneFortune500company:RegionsFinancial,alongwithfiveotherFortune1000companies.Twoofthelargestsoft-drinkbottlersintheUnitedStates,eachwithmorethan$500millioninsalesperyear,arelocatedinBirmingham.TheBuffaloRockCompany,foundedin1901,wasformerlyamakerofjustgingerale,butnowitisamajorbottlerforthePepsiColaCompany.TheCoca-ColaBottlingCompany,United,foundedin1902,isthethird-largestbottlerofCoca-ColaproductsintheU.S.

Birminghamranks13thamongthelargestsoutheasternmetropolitanareas,represents24percentofAlabama’stotalpopulation,31percentofAlabama’stotalpayrolldollars,ranks48thinpopulationamongthenation’stop300metropolitanareas,andishometo40,680Businesses.TheBirminghammetropolitanareahasconsistentlybeenratedasoneofAmerica’sbestplacestoworkandearnalivingbasedonthearea’scompetitivesalaryratesandrelativelylowlivingexpenses.Onestudypublishedin2006bySalary.comdeterminedthatBirminghamwassecondinthenationforbuildingpersonalnetworth,basedonlocalsalaryrates,livingexpenses,andunemploymentrates.

Healthcare

TheUABHealthSystem(UABHS)isapartnershipbetweenUABandtheUniversityofAlabamaHealthServicesFoundation(UAHSF),aprivatenot-for-profitmedicalpracticemadeupofthefacultyoftheUABSchoolofMedicine.UABHSisgovernedbyaboardofdirectorswhichhasrepresentativesofUAHSF,theUniversityofAlabamaBoardofTrustees,andUABadministrators.TheUABpresidentistheexofficiochairpersonoftheUABHealthSystem.TheCEOoftheUABHSreportsdirectlytotheUABHealthSystemboardandisappointedbythechairmanoftheboard.

UABHospitalisthecentralinstitutionofUABHS.ItwasformedasUniversityHospitalin1945fromthemergerofJeffersonHospitalandHillmanHospital,twoprivatehospitalsintheSouthsideofBirminghamacquiredbytheUniversityofAlabamaBoardofTrustees.UniversityHospitalwascreatedtoserveastheprimaryteachinghospitalfortheSchoolofMedicine.

InadditionUABHSmanages,butdoesnotoperate,MedicalWestinBessemerandBaptistHealthinMontgomery.UABHSalsohasaffiliationswiththeBirminghamVAMedicalCenter,Children’sHospitalofAlabama,andHuntsvilleHospitalinHuntsville.

MarketProfile

Recreation/Leisure

IthasbeensaidthatBirminghamisthelastmajorSoutherncityinAmerica,whereafriendly“Howy’alldoin’,”aheartymealofcountry-friedsteakwithbutterbeansandatruetasteofSouthernhospitalityawaitvisitors.Whetheryou’reintothehistoryoftheCivilRightsmovement,afanofjazzmusicorjustlookingforcultureandafewfunactivitiesforthefamily,SweetBirminghamistheplaceforyou.SpendthemorningattheBirminghamMuseumofArt,thenhavelunchatatraditionalSoutherntearoom.OutdoorenthusiastscanteeoffattheRobertTrentJonesGolfTrailorpackalunchandspendthedayhikingandenjoyingthevistasatRuffnerMountain.Aworld-classzoo,theinnovativeMcWaneCenterandVisionLand,Alabama’sfirstamusementpark,aresuretokeepfamiliesentertainedandonthego.Intheevening,listentoabluesshowatanoutdoorcafeandthenspendthenightatasmallcozyinnorsplurgeforaneleganthotel.Birmingham’snightlifeisprimarilyclusteredaroundFivePointsSouthandLakeview,butanadditional$55-millionentertainmentdistricthasbeenapprovedforanareaadjacenttotheBJCC.Birminghamishometoexcitingattractions,fantastic,one-of-a-kindrestaurantsandastockofyear’roundentertainment.Golfanyone?Fromtheworld-classRobertTrentJonesGolfTrailtouniqueshoppingandnightlife,Birminghamhasitall.(www.tripadvisor.com)

Education

TheBirminghamareaisreputedtobethehomeofsomeofAlabama’sbest highschools,colleges,anduniversities.In2005,theJeffersonCountyInternational Baccalaureate School in Irondale, an eastern suburb of Birmingham, was rated as the No.1highschoolinAmericabyNewsweek,anationalpublication.Theschool remainsamongthenation’stop5highschools.

Inhighereducation,BirminghamhasbeenthelocationoftheUniversityofAlabama SchoolofMedicine(formerlytheMedicalCollegeofAlabama)andtheUniversity ofAlabamaSchoolofDentistrysince1947.Sincethattimeithasalsoobtained acampusoftheUniversityofAlabama,UniversityofAlabamaatBirmingham (foundedcirca1969),oneofthreemaincampusesoftheUniversityofAlabama System.Itisalsohometothreeprivateinstitutions:SamfordUniversity,Birmingham-SouthernCollege,andMilesCollege.Betweenthesecollegesanduniversities,theBirminghamareahasmajorcollegesofmedicine,dentistry,optometry,pharmacy,law,engineering,andnursing.Thecityhasthreeofthestate’sfivelawschools:CumberlandSchoolofLaw,BirminghamSchoolofLaw,andMilesLawSchool.BirminghamisalsotheheadquartersoftheSoutheasternConference,oneofthemajorU.S.collegiateathleticconferences.

ForinformationaboutRoebuck,AL.,pleasevisithttp://alabama.hometownlocator.com/al/jefferson/roebuck.cfm,http://www.realtor.com/local/Roebuck_Birmingham_AL/lifestyle

Demographics

Thefollowingpagesdetailthedemographicdataforthismarket

withina1-mile,3-mile,and5-mileradius.