Denny’s - Matthews€¦ · Property Name Denny’s Property Type Restaurant Parent Company Trade...

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Denny’s2160 Scenic Hwy N, Snellville, GA 30078

OFFERING MEMORANDUM

Representative Photo

This Marketing Brochure contains select information pertaining to the business and affairs of Denny’s located at 2160 Scenic Hwy N, Snellville, GA 30078 here to referred to as “Property”. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc.

This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

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 the Buyer’s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the 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 the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals.

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 performance.

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 Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property.

NON-ENDORSEMENT NOTICEMatthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

CONFIDENTIALITY & DISCLAIMER STATEMENT

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PRICING AND FINANCIAL ANALYSISInvestment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

PROPERTY DESCRIPTIONProperty Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Bird’s Eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Tenant Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Regional Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

DEMOGRAPHICSDemographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11City Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

TABLE OF CONTENTS

PRESENTED BY

Kyle MatthewsBroker of Record

License No. 363764

Chuck EvansAssociate

License No. 01963473O 310.919.5841M [email protected]

Calvin ShortVP & Senior Director - STNL


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™PRICING AND FINANCIAL ANALYSIS

Investment HighlightsIDEAL 1031 EXCHANGE OPPORTUNITY

• Brand new 20 years remaining on the initial term

• Bondable NNN investment; tenant is responsible for all maintenance including roof and structure

• Attractive rental increases of 7.50% every five (5) years - Strong hedge against inflation

• Four (4) Five (5) Year Options to renew

• Projected store sales above the national average - $1,750,000

PRIME LOCATION IN MAJOR RETAIL CORRIDOR

• Denny’s is located off of Highway 124 which boasts traffic counts in excess of 50,000 cars per day

• Across the street from the Snellville Pavilion which is the main hub of retail activity in Snellville. Snellville Pavilion is nearly a 1,000,000 sq ft outdoor shopping center that is anchored by Kohl’s, Belk, Old Navy, Hhgregg and Staples

• Average household income within a 1-mile radius is in excess of $87,462



STRONG NATIONAL BRAND

• 100% leased to RWDT Foods, Inc., franchisee for national tenant, Denny’s (NASDAQ: DENN)

• Denny’s Inc. (NASDAQ; DENN) is one of the largest full service restaurants operating in over 11 countries and has over 1,500 sites domestically

• Rare opportunity to lease from RWDT Foods, Inc., which is one of the fastest growing enterprises in the Denny’s concept

• Healthy 7.50% occupancy/sales ratio - Provides for long term security and healthy operating margins

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Investment Overview

EXECUTIVE SUMMARY2160 Scenic Hwy N Snellville, GA 30078List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,187,500Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . . .6,240 SFCAP Rate - Current. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.00 %Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1987Lot Size . . . . . . . . . . . . . . . . . . . . . . . . ± 1.23 Acres (53,579 SF)

ANNUALIZED OPERATING DATAMonthly Rent Annual Rent Increases CAP Rate

Years 1 - 5 $10,937.50 $131,250.00 $21.03 6.00%

Years 6 - 10 $11,757.81 $141,093.75 $22.61 6.45%

Years 11 - 15 $12,639.65 $151,675.78 $24.31 6.93%

Years 16 - 20 $13,587.62 $163,051.46 $26.13 7.45%

Option 1 $14,606.69 $175,280.32 $28.09 8.01%

Option 2 $15,702.20 $188,426.35 $30.20 8.61%

Option 3 $16,879.86 $202,558.33 $32.46 9.26%

Option 4 $18,145.85 $217,750.20 $34.90 9.95%

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Financial Overview

TENANT SUMMARYTenant Trade Name Denny’s

Type of Ownership Fee Simple

Lease Guarantor Franchisee

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term +20 years

Lease Commencement Date Close of Escrow

Rent Commencement Date Close of Escrow

Lease Expiration Date 20 Years from COE

Term Remaining on Lease +20 years

Increases 7.50% Every 5 Years

Options Four (4) Five (5) Year

Property Name Denny’s

Property Type Restaurant

Parent Company Trade Name Denny’s

Ownership Public

Credit Rating B+

Rating Agency Standard & Poor’s

Revenue $ 472,295,000

Net Income $ 32,725,000

Stock Symbol DENN

Board NASDAQ

No. of Locations + 1700

No. of Employees +8,300

Headquartered Spartanburg, SC

Web Site www.dennys.com

Year Founded 1953

Denny’s is America’s diner. This is where guests have gone for over 60

years now to sit back, relax and enjoy delicious, hearty meals 24/7, every

day of the year. From breakfast anytime to satisfying lunches and dinners,

if you’re in the mood for it, chances are we’re serving it. Denny’s is always

open, always welcoming and always serving up hearty diner food along

with a mug of fresh hot coffee. So come on in anytime, park yourself in a

comfortable booth, take a seat at the counter, whatever you want, because

it won’t take you long to understand why we’re truly America’s diner.

Harold Butler and Richard Jezak opened a donut stand in 1953 and called

it Danny’s Donuts. Butler’s stated promise was “To serve the best cup of

coffee, make the best donuts, give the best service, offer the best value

and stay open 24 hours a day.” Today that donut stand is a restaurant chain

with a slightly different name, over 1,700 locations and a proven reputation

for keeping Mr. Butler’s original promise.

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Company Overview


™PROPERTY DESCRIPTION

THE OFFERINGProperty Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Denny’sProperty Address . . . . . . . . . . . . . . . . . . . . .2160 Scenic Hwy N Snellville, GA 30078Assessor’s Parcel Number . . . . . . . . . . . . . . . . . . . . .R5039-214Zoning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AA005

SITE DESCRIPTIONNumber of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OneYear Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1987Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . . .6,240 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . . ± 1.23 Acres (53,579 SF)Type of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . Fee SimpleParking . . . . . . . . . . . . . . . . . . . . . . . . . . ± 12 Surface SpacesParking Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . .1.90 : 1,000 SFLandscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . ProfessionalTopography. . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level


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Property Overview

PROPERTY DESCRIPTION

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Bird’s Eye

8

Tenant Map

PROPERTY DESCRIPTION

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Regional Map

™DEMOGRAPHICS

Population 1-Mile 3-Mile 5-Mile

2021 Projection 5,166 63,151 185,937

2016 Estimate 4,957 59,388 171,907

2010 Census 4,719 54,731 153,383

2000 Census 4,712 46,503 112,692

Growth 2016-2021 4.21% 6.34% 8.16%

Growth 2010-2016 5.05% 8.51% 12.08%

Growth 2000-2010 0.14% 17.69% 36.11%

Households

2021 Projection 2,000 21,286 60,584

2016 Estimate 1,902 19,970 56,185

2010 Census 1,777 18,346 50,636

2000 Census 1,570 15,116 36,747

Growth 2016-2021 5.18% 6.59% 7.83%

Growth 2010-2016 7.01% 8.85% 10.96%

Growth 2000-2010 13.17% 21.37% 37.80%

Income

$0 - $15,000 5.13% 5.72% 6.37%

$15,000 - $24,999 6.06% 7.40% 7.60%

$25,000 - $34,999 7.75% 9.59% 9.74%

$35,000 - $49,999 12.18% 14.96% 14.81%

$50,000 - $74,999 19.67% 16.98% 18.72%

$75,000 - $99,999 16.83% 15.50% 15.71%

$100,000 - $124,999 12.65% 10.43% 10.14%

$125,000 - $149,999 7.27% 8.05% 7.10%

$150,000 - $199,999 7.67% 6.98% 5.96%

$200,000 - $249,999 2.41% 1.91% 1.71%

$250,000 - $499,999 2.05% 2.06% 1.83%

$500,000+ 0.32% 0.43% 0.31%

2016 Est. Average Household Income $87,462 $83,561 $79,677

2016 Est. Median Household Income $73,995 $68,145 $65,332

11 DEMOGRAPHICS

Demographics Report

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City Overview

SNELLVILLE, GEORGIALocated in Gwinnett County between Atlanta and Athens at the intersection of U.S. Highway 78 and Georgia Highway 124, Snellville is a bustling suburb with small-town charm. It is less than an hours drive away from both major cities, which has allowed Snellville to prosper and become one of Gwinnett County’s fastest growing cities for the past thirty years. Visitors and residents have access to a variety of shopping and eateries on Highway 124, the world class Eastside Hospital and award-winning schools. City Hall and Briscoe Park host numerous events and festivals, including the Snellville Farmers’ Market, variety of summer concerts, movies in the park, Snellville Days, the Fall Festival and the annual International Festival. Additional nearby attractions include Stone Mountain Park and numerous state parks.

ATLANTA, GEORGIA

Atlanta is Georgia’s capital and most populous city, as well as the economic and cultural hub of the Atlanta metropolitan area. As a rapidly growing city, it is understandable that Atlanta contains the country’s third largest concentration of Fortune 500 companies, and the city is the global headquarters of corporations such as The Coca-Cola Company, The Home Depot, Delta Air Lines, AT&T Mobility, Chick-fil-A, UPS, and Newell-Rubbermaid. Over 75 percent of Fortune 1000 companies conduct business operations in the Atlanta metropolitan area, and the region hosts offices of about 1,250 multinational corporations.

TOP EMPLOYERS - ATLANTA, GEORGIA1. Delta Air Lines

2. Emory University / Emory Healthcare

3. Wal-Mart Stores, Inc.

4. The Home Depot

5. AT&T

6. The Kroger Co.

7. Wellstar Health Systems

8. Publix Super Markets, Inc.

9. USPS

10. Northside Hospital

841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.matthews.com™

Denny’s2160 Scenic Hwy N, Snellville, GA 30078

OFFERING MEMORANDUM

Chuck EvansAssociate


Calvin ShortVP & Senior Director - STNL


Kyle MatthewsBroker of Record

License No. 363764

Denny’s - Matthews€¦ · Property Name Denny’s Property Type Restaurant Parent Company Trade...

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