Carl's Jr. - McAllen, TX

MCALLEN, TX

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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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

PRICING & FINANCIAL ANALYSIS

Offering Summary

Price $2,600,000

Cap Rate 5.65%

Net Operating Income $147,000

Year Built 2011

Gross Leasable Area 2,583 SF

Lot Size 0.82 Acres

LeaSe Summary

Lease Term 20 Years

Lease Commencement 1/23/2012

Lease Expiration 12/31/2031

Remaining Term 16 Years

Lease Type NNN

Roof & Structure Tenant

Increases Every 5 Years

Options 4 x 5 Year

Options to Purchase None

AnnuAlized OperAting dAtA

Year(s) Commencement Annual Increase

1-5 1/23/2012 $147,000 -

6-10 1/1/2017 $154,350 5.00%

11-15 1/1/2022 $161,700 4.76%

16-20 1/1/2027 $169,050 4.55%

Option 1: 21-25 1/1/2032 Market Rate -




net Operating incOme $147,000

Carl’s Jr.900 S Jackson Road McAllen, TX 78503

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TENANT INFORMATION

tenant Summary

Company Carl’s Jr.

Ownership Wholly Owned Subsidiary

Number of Locations 1385+

Years In Business 75 Years

Headquarters Carpinteria, CA

Website www.carlsjr.com

Carl’s Jr. is an American-based quick-service restaurant chain operated by CKE Restaurants Holdings, Inc. (“CKE”) in the Western and Southwestern states. The brand is renowned for its bigger, better burgers and innovative menu items, as well as its youthful and edgy advertising that targets its core audience. In 2016, Entrepreneur listed Carl’s Jr. as #54 on their Top Franchise 500 list, which ranks the overall financial strength, stability, and growth rate for the top 500 franchisees in any field across the United States. As of March 2016, CKE (the parent company of Carl’s Jr. and Hardee’s) has a total of 3,664 franchised or company-operated restaurants in 44 states and 38 foreign countries and U.S. territories.

cOmpany Summary

Company CKE Restaurants Holdings, Inc.

Ownership Private, Roark Capital Group

Number of Locations 3,664+

Years In Business 50 Years

Headquarters Carpinteria, CA

Website www.ckr.com

CKE Restaurants Holdings, Inc. (“CKE”) is a privately held company headquartered in Carpinteria, Calif. Through its subsidiaries, CKE owns and licenses Carl’s Jr.® and Hardee’s® quick-service restaurants. CKE operates Carl’s Jr. and Hardee’s as one brand under two names acknowledging the regional heritage of both banners. After recent openings in Australia, Columbia, Guatemala and Honduras, CKE now has a total of 3,664 franchised or company-operated restaurants in 44 states and 38 foreign countries and U.S. territories. Known for its one-of-a-kind premium menu items such as 100 percent Angus Beef Thickburgers®, Hand-Breaded Chicken Tenders™ and Hand-Scooped Ice Cream Shakes™, as well as an award-winning marketing approach, the Carl’s Jr./Hardee’s brand continues to deliver substantial and consistent growth in the U.S. and overseas. The Carl’s Jr./Hardee’s system is now 92 percent franchised, with international restaurants representing 19 percent of the system.

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INVESTMENT HIGHLIGHTS

• Top 10 Fastest Growing Cities in the U.S. (CNN Money)

• 16-Year Absolute Net Lease

• Zero Landlord Responsibility

• Across the Street from a Newly Constructed 157,000 SF Costco

• Benefits from Cross Border Traffic

• Jackson Road is Home to Many National Fast Food and Casual Diners Including; Jack in the Box, Sonic, Chick-fil-A, Raising Canes, Starbucks, Panda Express, Red Robin, and Krispy Kreme Among Many Others

• Population Within a 5-Mile Radius Exceeds More Than 225,00 People

• Traffic Counts Along Interstate 2 Exceed 107,000 Vehicles per Day

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AERIAL MAP

SAM HOUSTON BLVD

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INTERSTATE 2

McAllenMedicalCenter

Rio GrandeRegionalHospital

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LOCAL MAP

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REGIONAL MAP

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MARKET SUMMARY

MCALLEN, TX

McAllen is the twentieth most populous city in Texas and the largest city in Hidalgo County, Texas. It is located at the southern tip of Texas in the Rio Grande Valley and is part of the Southern United States. It is on the Rio Grande, across from the Mexican city of Reynosa, and is about 70 miles (110 km) west of South Padre Island and the Gulf of Mexico.

The 2012 estimates put the city’s population at 140,717 and the McAllen–Edinburg– Mission metropolitan area at 804,934. The Reynosa–McAllen Metropolitan Area counts a population of nearly 1.5 million.

The latter half of the 20th century saw steady growth, which accelerated during the 1980s, leading to an economic and population boom in the 1990s and 2000s.

Today the McAllen,Edinburg, Mission metropolitan area is one of the fastest growing metropolitan areas in the United States, The introduction of the maquiladora economy and the North American Free Trade Association led to a boom in international trade, cross-border commerce with Mexico, and health care.

McAllen is a regional retail destination for northeastern Mexican states. While McAllen’s total population is 20th among Texas cities, it ranks 12th in overall retail sales, and third in the state in total retail sales both per household and per capita.

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DEMOGRAPHIC SUMMARY

Geography: 5 Miles

Demographic data © 2016 esri

PoPulation

In the identified area, the current year population is 225,180. The rate of change since 2000 was 36.3%. The five-year projection for the population in the area is 242,605 representing a change of 7.7% from 2016 to 2021. Currently, the population is 48.1% male and 51.9% female. The median age in this area is 31.1, compared to U.S. median age of 38.0.

HouseHolds There are currently 67,809 households in your selected geography. The number of households has changed by 39.8% since 2000. It is estimated that the number of households in your area will be 73,041 five years from now, which represents a change of 7.7% from the current year. The average household size in your area is 3.30 persons.

income In 2016, the median household income for your selected geography is $35,337, compare this to the Entire US average which is currently $54,149. It is estimated that the median household income in your area will be $34,435 five years from now.

The current year per capita income in your area is $16,289, compare this to the Entire US average, which is $29,472. The current year average household income in your area is $53,160, compare this to the Entire US average which is $77,008.

Race and etHnicity The current year racial makeup of your selected area is as follows: 84.3% White, 0.9% Black, 0.5% Native American and 1.5% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 90.7% of the current year population in your selected area. Compare this to the Entire US average of 17.9%.

Housing In 2016, there were 40,056 owner occupied housing units in your area and there were 27,753 renter occupied housing units in your area. Median home value in the area is $87,511, compared to a median home value of $198,891 for the U.S.

emPloyment In 2016, there were 85,094 employees in your selected area, this is also known as the daytime population. Currently 56.0% of employees are employed in white-collar occupations in this geography, and 20.4% are employed in blue-collar occupations. In 2016, unemployment in this area is 5.7%.

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DEMOGRAPHIC STATISTICS

pOpulAtiOn 1-Mile 3-Miles 5-Miles

2000 Population 6,438 71,595 165,229

2010 Population 8,132 80,364 207,786

2016 Population 8,409 86,873 225,180

2021 Population 8,974 93,367 242,605

traffic cOuntS

HOuseHOlds 1-Mile 3-Miles 5-Miles

2000 Households 2,329 22,124 48,500

2010 Households 2,844 25,959 62,636

2016 Households 2,884 28,041 67,809

2021 Households 3,083 30,153 73,041

2016 Daytime Population 3,096 33,471 85,094

2016 Average Household Size 2.88 3.07 3.30

2010 Owner Occupied Housing Units 43.0% 47.8% 54.6%

2010 Renter Occupied Housing Units 45.1% 37.6% 33.6%

2010 Vacant 11.9% 14.6% 11.7%



2016 Vacant 13.8% 14.6% 11.9%



2021 Vacant 13.9% 14.7% 11.9%

incOMe 1-Mile 3-Miles 5-Miles

$ 0 - $14,999 21.0% 25.2% 22.2%

$ 15,000 - $24,999 14.8% 14.0% 14.7%

$ 25,000 - $34,999 14.0% 12.7% 12.7%

$ 35,000 - $49,999 13.6% 14.3% 14.2%

$ 50,000 - $74,999 14.2% 14.2% 14.8%

$ 75,000 - $99,999 7.6% 8.4% 8.9%

$100,000 - $149,999 7.4% 6.1% 6.9%

$150,000 - $199,999 3.5% 2.6% 2.8%

$200,000+ 3.7% 2.5% 2.8%

2016 Median Household Income $35,109 $33,117 $35,337

2016 Per Capita Income $19,388 $16,620 $16,289

2016 Average Household Income $57,196 $50,438 $53,160

22,000

104,000

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Vitorino Group and it should not be made available to any other person or entity without the written consent of Vitorino Group. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Vitorino Group.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Vitorino Group has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Vitorino Group has not verified, and will not verify, any of the information contained herein, nor has Vitorino Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE VITORINO GROUP AGENT FOR MORE DETAILS.

CONFIDENTIALITY AGREEMENT

Vitorino Group hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, the Vitorino Group has not and will not verify any of this information, nor has the Vitorino Group conducted any investigation regarding these matters. The Vitorino Group makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. The Vitorino Group expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release The Vitorino Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Net Lease Disclaimer

Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker

who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER:The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER:The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY:A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

Information About Brokerage Services

intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction:

With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.

If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

(1) shall treat all parties honestly;(2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner;(3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and(4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.

exclusively listed

469.844.8880 | VITORINOGROUP.COM

Carl's Jr. - McAllen, TX

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