Dairy Queen Grill & Chill...offer an expanded menu including breakfast, Grill Burgers, and grilled...

Dairy Queen Grill & Chill 1100 W 135th TerraceKansas City, Missouri

Net Lease Investment Offering

www.bouldergroup.com | Confidential Offering Memorandum| 2 |

Dairy Queen | Kansas City, MO

Offering SummaryExecutive Summary ................................................................... 1

Investment Highlights ............................................................. 2

Property Overview ...................................................................... 3

Location OverviewPhotographs ...................................................................................4

Drone Aerials .................................................................................. 5

Location Aerial .............................................................................. 7

Site Plans ...........................................................................................8

Location Maps ............................................................................. 10

Market OverviewMarket Overview .........................................................................12

Demographics .............................................................................13

Tenant SummaryTenant Profile ............................................................................... 14

Table of Contents

TABLE OF CONTENTS


Dairy Queen | Kansas City, MOExecutive Summary

EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a single tenant net leased Dairy Queen property located in Kansas City, Missouri. The property was recently constructed in 2018 and has a twenty-year lease which expires in October 2038. The lease is absolute triple net and features zero landlord responsibilities. Additionally, there are 7% rental escalations every five years and in each five 5-year renewal option. The lease is personally guaranteed by the owner and operator of Fast N Friendly, LLC, who operators 13 Dairy Queen and 6 Fast N Friendly locations.

The Dairy Queen property is ideally located along West 135th Street (20,000 VPD), a primary east-west thoroughfare. The property is well positioned as an outparcel to a Super Target anchored center and is directly across from Walmart Supercenter and Lowes. Additional retailers in the corridor include Starbucks, Bank of America, World Market, Marshalls, Petco, Wendy’s, McDonald’s and Chipotle. The property is located in a very affluent neighborhood of Kansas City. There are approximately 50,000 people living within three miles of the property with an average household income of $156,488. The population is projected to grow 3.39% over the next five years.

Dairy Queen is a chain of soft serve ice cream and fast-food restaurants owned by International Dairy Queen, Inc., a subsidiary of Berkshire Hathaway Inc. International Dairy Queen, Inc., also owns Orange Julius and Karmelkorn. DQ Grill & Chill locations feature hot food, treats, table delivery, and self-serve soft drinks. It is the new concept for new and renovated full-service restaurants. Stores are larger than older-style locations and feature a completely new store design. In most cases, they offer an expanded menu including breakfast, Grill Burgers, and grilled sandwiches, as well as limited table service. They also contain self-serve soft drink fountains allowing free refills.



INVESTMENT HIGHLIGHTS

■ Long term lease with over 18 years remaining

■ Absolute triple net with zero landlord responsibilities

■ New construction (2018)

■ 7% rental escalations every five years

■ Ideally located along West 135th Street (20,000 VPD), a primary east-west thoroughfare

■ Well positioned as an outparcel to a Super Target anchored center and is directly across from Walmart Supercenter and Lowes

■ Additional retailers in the corridor include Starbucks, Bank of America, World Market, Marshalls, Petco, Wendy’s, McDonald’s and Chipotle

■ Located in a very affluent neighborhood of Kansas City - approximately 50,000 people living within three miles of the property with an average household income of $156,488

■ Population is projected to grow 3.39% over the next five years

Investment Highlights



PROPERTY OVERVIEW

Price: $2,051,282

Cap Rate: 5.85%

Net Operating Income: $120,000

Lease Expiration: October 31, 2038

Rental Escalations: 7% every five years

Renewal Options: Five 5-Year

Tenant: Fast N Friendly, LLC dba Dairy Queen

Guarantor:Personal Guarantee (13 Dairy Queen

and 6 Fast n Friendly Locations)

Lease Type: Absolute NNN

Building Size: 3,084 SF

Land Size: 1.15 Acres

Year Built: 2018

Property Overview


Dairy Queen | Kansas City, MOPhotographs


Dairy Queen | Kansas City, MODrone Aerial

W 35TH STREET (20,000 VPD)

W 35TH STREET (20,000 VPD)


Dairy Queen | Kansas City, MODrone Aerial

W 35TH STREET (20,000 VPD)W 35TH STREET (20,000 VPD)

STATE LIN

E RO

AD

STATE LIN

E RO

AD


Dairy Queen | Kansas City, MOLocation Aerial

MISSOURIMISSOURIKANSASKANSAS


Dairy Queen | Kansas City, MOMaster Site Plan

MASTER SITE PLAN


Dairy Queen | Kansas City, MOSite Plan

SITE PLAN


Dairy Queen | Kansas City, MOLocation Map



1-Mile 3-Mile 5-Mile

Total Population: 4,559 48,421 147,623

Total Households: 1,912 18,617 59,193

1-Mile 3-Mile 5-Mile

Average Household Income: $100,129 $112,306 $87,476

Median Household Income: $149,263 $156,488 $125,307

Population Income

DEMOGRAPHICS

Demographics


Dairy Queen | Kansas City, MOMarket Overview

City ofKansas City, Missouri

Kansas City is the largest city in the U.S. state of Missouri by population and area. According to the U.S. Census Bureau, the city had an estimated population of 491,918 in 2018, making it the 38th most-populous city in the United States. It is the most populated municipality and historic core city of the Kansas City metropolitan area, which straddles the Kansas–Missouri state line and has a CSA population of 2,487,053. Most of the city lies within Jackson County, but portions spill into Clay, Cass, and Platte counties. The city borders Johnson County and Kansas City, Kansas, (KCK/Wyandotte County) in Kansas. Kansas City was founded in the 1830s as a Missouri River port at its confluence with the Kansas River coming in from the west.

The city is composed of several neighborhoods, including the River Market District in the north, the 18th and Vine District in the east, and the Country Club Plaza in the south. Kansas City is known for its long tradition of jazz music and culture, especially theater – the city was the center of the Vaudevillian Orpheum circuit in the 1920s. It is also noted for its cuisine, including its distinctive Kansas City-style barbecue, and its craft breweries.



Dairy Queen

Dairy Queen, often abbreviated DQ, is a chain of soft serve ice cream and fast-food restaurants owned by International Dairy Queen, Inc., a subsidiary of Berkshire Hathaway Inc. International Dairy Queen, Inc., also owns Orange Julius and Karmelkorn. The first DQ restaurant was located in Joliet, Illinois. For nearly 80 years, the DQ system’s recipe for success has been simple. It’s been a combination of hardworking people who own and operate restaurants, and great-tasting food and tempting treats served in our establishments.

DQ Grill & Chill locations feature hot food, treats, table delivery, and self-serve soft drinks. It is the new concept for new and renovated full-service restaurants. Stores are larger than older-style locations and feature a completely new store design. In most cases, they offer an expanded menu including breakfast, Grill Burgers, and grilled sandwiches, as well as limited table service. They also contain self-serve soft drink fountains allowing free refills.

The franchise and lease guarantor, Fast N Friendly, LLC, owns and operates 13 Dairy Queens and 6 Fast N Friendly Convenience stores.

Website: www.Dairyqueen.comType: SubsidiaryFounded: 1940Number of Locations: 6,800Headquarters: Edina, Minnesota

Tenant Overview

Jimmy [email protected]

EXLUSIVELY LISTED BY:

Randy [email protected]

The Boulder Group3520 Lake Avenue, Suite 203Wilmette, Illinois 60091

www.bouldergroup.com

CONFIDENTIALITY & DISCLAIMERThe 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 The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum has been prepared to provide summary, unverified 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. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder 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.

Dairy Queen Grill & Chill...offer an expanded menu including breakfast, Grill Burgers, and grilled...

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