DENNY'S NET LEASED INVESTMENT · 2017. 12. 13. · Customer service representatives 13.50 10.00...

SVN | MILLER COMMERCIAL REAL ESTATE | 206 E. MAIN STREET, SALISBURY, MD 21801 SALE BROCHURE

DENNY'SNET LEASEDINVESTMENT405 PUNKIN COURTSALISBURY, MD 21801

Henry Hanna, CCIM, SIORCouncil Chair of Industrial [email protected]

Wesley Cox, CCIMSenior [email protected]

DENNY'S - NET LEASED INVESTMENT | 405 PUNKIN COURT SALISBURY, MD 21801 SVN | Miller Commercial Real Estate | Page 2

OFFERING SUMMARY

Sale Price: $2,600,000

Cap Rate: 5.5%

NOI: $144,000

Cap Rate Over Term; 6.2%

Lot Size: 1.68 Acres

Year Built: 1998

Building Size: 5,622 SF

Renovated: 2017

Zoning: General Commercial

Market: Eastern Shore of

Maryland

Submarket: Salisbury

Price / SF: $462.47

Absolute Net Leased investment of a Denny's Restaurant - No landlord responsibilities. Denny's is one ofAmerica's largest full-service restaurant chains. They currently operate over 1,700 franchised, licensed andcompany-owned restaurants. This Denny's has a very strong and experienced operator with multiple locations.

PROPERTY OVERVIEW

PROPERTY HIGHLIGHTS

• New 20 year lease to start at settlement - 7.5% increases every 5 years.

• Very strong operator with 9 stores as of 2018.

• Newly renovated - $447,000 in recent upgrades

• Available 1st quarter 2018

• This Denny's serves over 20,000 customers per month.

• Located adjacent to Sleep Inn, which averages over 16,000 guests per year.

Property Summary


LEASE HIGHLIGHTS

• 7.5% INCREASES EACH 5 YEAR PERIOD

• Year 1-5 $144,000

• Year 6-10 $154,800

• Year 11-15 $166,410

• Year 16-20 $178,890

• Two Five Year Options after 20 Years

Property Name: Denny's - Net Leased Investment

Property Address: 405 Punkin Court, Salisbury, MD 21801

Property Type: Retail

Lot Size: 1.68 Acres

Building Size: 5,622 SF

Gross Leasable Area: 5,622 SF

Zoning: General Commercial

Parking Spaces: 100

Cross Streets: US Rt. 50

Year Built: 1998

Year Renovated: 2016-2017

PROPERTY OVERVIEW

Absolute Net Leased investment of Denny's Restaurant - No landlord responsibilities. Denny's isone of America's largest full-service restaurant chains. They currently operate over 1,700franchised, licensed and company-owned restaurants.

LOCATION OVERVIEW

Located just off US Route 50 with tremendous exposure and visibility and bypass interchangewith Sleep Inn, Country Inn & Suites & Microtel all within site.

Just two minutes to Shorebirds minor league baseball stadium and only 5 minutes to Salisbury/Ocean City Airport.

Property Details & Highlights


Additional Photos


Traffic Count Map


Denny's - Net LeasedInvestment

Aerial Map


Retailer Map


Location Maps


POPULATION 5 MILES 10 MILES 15 MILES

Total population 53,588 109,004 148,078

Median age 33.5 34.7 34.9

Median age (male) 32.0 33.3 33.6

Median age (Female) 34.3 35.7 35.8

HOUSEHOLDS & INCOME 5 MILES 10 MILES 15 MILES

Total households 20,782 40,592 54,778

# of persons per HH 2.6 2.7 2.7

Average HH income $56,425 $64,787 $63,273

Average house value $198,906 $215,989 $217,182

* Demographic data derived from 2010 US Census

Demographics Map

With its strategic location along the East Coast and situated at the crossroads of Maryland’s Lower Eastern Shore, Wicomico County serves as a hub for commerce, industry, health care, education and transportation. Situated halfway between the Atlantic Ocean and the Chesapeake Bay, cultural, recreational and civic amenities add to the lure of Wicomico, offering citizens a lifestyle second to none.

Wicomico is the number two agricultural producing county in Maryland, and ranks third in broiler chicken production. Popular crops include corn, soybeans, wheat and vegetables. In addition to agriculture and poultry, health care, educational sectors and a diverse industrial base offer stability and a firm foundation for Wicomico’s economy. Jubilant Cadista Pharmaceuticals recently announced the addition of 200 new jobs associated with the expansion of its Salisbury headquarters and manufacturing facility.

Wicomico’s 2,520 businesses employ 36,300 workers; nearly 50 of these businesses have 100 or more workers. Major employers are Chesapeake Shipbuilding, Delmarva Power, Jubilant Cadista Pharmaceuticals, K&L Microwave, MaTech, Peninsula Regional Medical Center, Perdue Farms, Salisbury University and Tishcon.

Wicomico County has a 4,220-acre State Enterprise Zones in Salisbury and a 129-acre zone in Fruitland.

Washington, DC

New York

Salisbury

Washington, DC

Baltimore

Wicomico County, on Maryland’s Eastern Shore, borders the Chesapeake Bay on the west and Delaware on the north.

LOCATIONDriving distance from Salisbury: Miles Kilometers

Atlanta, Georgia 692 1,114Baltimore, Maryland 102 165Boston, Massachusetts 430 692Chicago, Illinois 793 1,276New York, New York 219 353Philadelphia, Pennsylvania 131 210Pittsburgh, Pennsylvania 324 521Richmond, Virginia 212 341Washington, DC 114 183

CLIMATE AND GEOGRAPHY1

Yearly Precipitation (inches) 45.2Yearly Snowfall (inches) 6.0Summer Temperature (ºF) 76.1Winter Temperature (ºF) 38.7Days Below Freezing 76.0Land Area (square miles) 379.1Water Area (square miles) 14.4Shoreline (miles) 361Elevation (feet) sea level to 73

POPULATION2,3

Wicomico County Lower Households Population Eastern Shore* Maryland

2000 32,218 84,644 155,934 5,296,4862010 37,220 98,733 176,657 5,773,5522020** 41,725 109,200 193,050 6,224,550

*Somerset, Wicomico and Worcester counties**Projections

Selected places population (2010): Salisbury 30,343; Fruitland 4,866; Delmar 3,003; Pittsville 1,417; Hebron 1,084

POPULATION DISTRIBUTION2,3 (2014)Age Number Percent

Under 5 6,030 5.95 - 19 21,251 20.920 - 44 34,100 33.645 - 64 25,539 25.265 and over 14,619 14.4Total 101,539 100.0Median age 35.5 years

Brief Economic FactsW I C O M I C O C O U N T Y, M A R Y L A N D

2016

LABOR AVAILABILITY3,4,5 (BY PLACE OF RESIDENCE) Labor Mkt.Civilian Labor Force (2015 avg. - prelim.) County Area* Total civilian labor force 50,564 182,845 Employment 47,124 171,196 Unemployment 3,439 11,649 Unemployment rate 6.8% 6.4%Residents commuting outside the Number Percentcounty to work (2010-2014) 11,616 24.9%Employment in selected occupations (2010-2014) Management, business, science and arts 16,388 34.5% Service 9,478 19.9% Sales and office 11,374 23.9% Production, transp. and material moving 5,795 12.2%* Wicomico, Somerset and Worcester counties, MD and Sussex County, DE

MAJOR EMPLOYERS6,7 (2015)Employer Product/Service Employment

Peninsula Regional Med. Ctr. Medical services 2,900Salisbury University Higher education 1,800Perdue Farms HQ / poultry processing 1,600Walmart / Sam's Club Consumer goods 750Wor-Wic Comm. College Higher education 431Jubilant Cadista Pharma. Generic pharmaceuticals 400Labinal Salisbury Electronics assembly 345Genesis HealthCare / Salis-bury Rehab. and Nurs. Ctr.

Nursing care 340

Delmarva Power Energy products and svcs. 300K&L Microwave Electronics assembly 265Dove Pointe Services for the disabled 250SHORE UP! Social services 250Three Lower Counties Social services 250BBSI Staffing services 249Boscov's Consumer goods 249Pepsi-Cola Bottling Beverages 249Verizon Telecommunications 249Piedmont/American Airlines HQ / airline 220McDonald's Restaurants 185Delaware Elevator HQ / elevator installation 170Macy's Consumer goods 160Darden Restaurants Restaurants 150Giant Food Groceries 150Lowe’s Home improvement prods. 150MaTech Precision machining 150Sears / Kmart Consumer goods 150Excludes post offices, state and local governments; includes higher education

EMPLOYMENT4 (2014, BY PLACE OF WORK) Estab- Annual Avg. Emp. Avg. Wkly.Industry lishments Empl. % Wage

Federal government 28 291 0.7 $1,178State government 13 2,772 6.3 819Local government 47 4,762 10.8 779Private sector 2,524 36,337 82.3 746 Natural resources and 31 296 0.7 657 mining Construction 279 1,851 4.2 866 Manufacturing 99 3,627 8.2 783 Trade, transportation 615 9,744 22.1 679 and utilities Information 22 517 1.2 1,043 Financial activities 258 1,615 3.7 924 Professional and business 424 4,178 9.5 937 services Education and health 315 8,482 19.2 938 services Leisure and hospitality 244 4,518 10.2 272 Other services 237 1,509 3.4 487Total 2,612 44,162 100.0 757 Includes civilian employment only

HOURLY WAGE RATES4 (2015)Selected Occupations Median Entry Experienced

Accountants $24.25 $16.00 $31.50Bookkeeping/accounting clerks 16.00 12.00 19.00Computer user support specialists 20.25 14.25 25.25Customer service representatives 13.50 10.00 17.50Electronics engineering technicians 36.75 20.25 40.75Freight, stock and material 12.25 9.50 17.75movers, hand Industrial truck operators 14.75 9.00 16.50Inspectors, testers, sorters 13.75 9.25 19.75Maintenance workers, machinery 16.00 12.00 19.25Network administrators 31.75 17.00 39.75Packaging and filling machine 9.25 8.25 10.50operatorsPackers and packagers, hand 9.75 8.25 11.00Secretaries 14.75 10.50 18.00Shipping/receiving clerks 13.00 9.75 14.75Team assemblers 13.50 9.75 16.75Telemarketers 11.50 8.50 14.25Wages are an estimate of what workers might expect to receive on the Lower Eastern Shore (Somerset, Wicomico and Worcester counties) and may vary by industry, employer and locality

W I C O M I C O C O U N T Y, M A R Y L A N DBrief Economic Facts

SCHOOLS AND COLLEGES3,8 Educational Attainment - age 25 & over (2010-2014)

High school graduate or higher 87.0% Bachelor’s degree or higher 27.7%Public Schools Number: 16 elementary; 5 middle/combined; 3 high Enrollment: 14,790 (Sept. 2015) Cost per pupil: $12,610 (2012-2013) Students per teacher: 13.2 (Oct. 2014) High school career / tech enrollment: 963 (2015) High school graduates: 873 (July 2014)Nonpublic Schools Number: 16 (Sept. 2015)Higher Education Enrollment (‘15) Degrees (‘14)2-year institution Wor-Wic Community College 3,137 4234-year institution Salisbury University 8,671 2,157The University of Maryland Eastern Shore is located in neighboring Somerset County.

TAX RATES9

Wicomico Co. Maryland

Corporate Income Tax (2016) none 8.25% Base – federal taxable incomePersonal Income Tax (2016) 3.20% 2.0%-5.75% * Base – federal adjusted gross income

*Graduated rate peaking at 5.75% on taxable income over $300,000

Sales & Use Tax (2016) none 6.0% Exempt – sales for resale; manufacturer’s purchase of raw materials;

manufacturing machinery and equipment; purchases of materials and equipment used in R&D and testing of finished products; purchases of computer programs for reproduction or incorporation into another computer program for resale

Real Property Tax (FY 16) $0.9516 $0.112 Effective rate per $100 of assessed value In addition to this rate, there are some miscellaneous taxes and/

or special taxing areas in the county; in an incorporated area, a municipal rate will also apply

Business Personal Property Tax (FY 16) $2.1715 none Rate per $100 of depreciated value Exempt – manufacturing and R&D machinery, equipment, materials

and supplies; manufacturing and R&D inventory Partially exempt – warehousing inventory (86% exempt; being

phased out at 7% per year) In an incorporated area, a municipal rate will also apply; municipal

exemptions may be available

Major Tax Credits Available One Maryland, Enterprise Zone, Job Creation, R&D, Biotechnology and Cybersecurity Investment, Arts & Entertainment District

BUSINESS AND INDUSTRIAL PROPERTY6

Industrial sites in the county range from one to 300 acres. Northwood Industrial Park in the Salisbury area has a total of 350 acres with 50 acres available. Air Business Center (ABC) has sites with direct runway access for air-related business uses. Long-term land leases are available.Fruitland Industrial Park has a total of 110 acres with municipal services and rail access.Westwood Commerce Park, at the intersection of U.S. Route 50 and the Salisbury Bypass, offers 260 acres served by Salisbury city water and sewer, as well as natural gas and high-speed voice and data lines.Salisbury Airport Incubator provides below market lease rates with flexible terms to technology-oriented firms.Business IncubatorSalisbury Airport Incubator, Salisbury

Market Profile Data (2015) Low High AverageLand – cost per acre Industrial $17,000 $125,000 $40,000 Office $22,000 $250,000 $60,000Rental Rates – per square foot Warehouse / Industrial $2.00 $7.00 $4.50 Flex / R&D / Technology $5.00 $14.00 $9.50 Class A Office $6.50 $15.00 $11.00

HOUSING2,3,10 Occupied Units (2010-2014) 36,479 (63.1% owner occupied) MedianHousing Transactions (2014) Units Selling Price All arms-length transactions 728 $150,000 All multiple-listed properties* 921 $135,975*Excludes auctions and FSBO

INCOME3 (2010-2014) Percent HouseholdsDistribution Wicomico Co. Maryland U.S.

Under $25,000 23.4 15.4 23.2$25,000 - $49,999 24.3 17.9 23.7$50,000 - $74,999 19.6 17.2 17.8$75,000 - $99,999 12.4 13.4 12.2$100,000 - $149,999 13.0 18.1 13.0$150,000 - $199,999 3.8 8.9 5.1$200,000 and over 3.4 9.1 5.0Median household $52,301 $74,149 $53,482Average household $68,847 $97,135 $74,596Per capita $26,298 $36,670 $28,555Total income (millions) $2,511 $209,422 $8,668,940


TRANSPORTATIONHighways: U.S. 13 and U.S. 50Rail: Norfolk Southern Railway Truck: 67 local and long-distance trucking establishments are located on the Lower Eastern Shore Water: Wicomico River, 14 ft. channel at Salisbury; Port of Salisbury is the second largest in Maryland; also served by the Port of Baltimore, 50’ channel; a leading U.S. automobile and break-bulk port; seven public terminals including the state-of-the-art Intermodal Container Transfer FacilityAir: The Salisbury-Ocean City Wicomico Regional Airport, 4.5 miles east of Salisbury, offers runway lengths of 5000’ and 6400’, a full instrument landing service (ILS), aviation fuel, charter service, and an industrial park with runway access; commercial passenger service provided by USAirways Express to Philadelphia and Charlotte; airport is home to numerous corporate clients, a small business incubator and a FedEx distribution center; UPS has a regional distribution center in Salisbury

RECREATION AND CULTUREParks and Recreation: Five state parks provide camping and natural beauty; other activities include swimming, fishing–including deep sea fishing–boating, golfing, skeet, trap and silhouette shooting, hiking, biking, canoeing, bird watching, and country and yacht club activitiesSports: Collegiate athletic events, tennis and professional golf tournaments; horse racing (trotting) at Ocean Downs; a Hunt Club/Pony Club; Wicomico County is home to the Delmarva Shorebirds, a Class A minor league affiliate of the Baltimore OriolesCultural: Summer band, big band, and rock music concerts; national country western shows; the Salisbury Symphony; dinner theater plays; a Council of Arts serves the area, as does the largest civic center on the Delmarva PeninsulaArts & Entertainment District: SalisburyAttractions: Ward Museum of Wildfowl Art, antique auto clubs and shows, and a first-class zooEvents: Salisbury Festival, Pork in the Park, Autumn Wine Festival, Good Beer Festival celebrating craft beers, World Wildfowl Carving Show, and tours of historic homes

GOVERNMENT11

County Seat: SalisburyGovernment: County executive; seven council members (two elected at large and five from districts) for four-year terms; charter form of government allows for the separation of the executive from the legislative branch; lawmaking powers are vested in an elected legislative body Robert L. Culver, Jr., County Executive 410.548.4801 John T. Cannon, President, County Council 410.548.4696Website: www.wicomicocounty.org County Bond Rating: AA+ (S&P); Aa2 (Moody’s); AA (Fitch)

Salisbury-Wicomico Economic Development, Inc.David Ryan, Executive Director One Plaza East, Suite 501 • P. O. Box 4700 Salisbury, Maryland 21803 Telephone: 410.749.1251 Email: [email protected] www.swed.org

Sources: 1 National Oceanic and Atmospheric Administration (1981-2010 normals);

Maryland Geological Survey 2 Maryland Department of Planning 3 U.S. Bureau of the Census 4 Maryland Department of Labor, Licensing and Regulation, Office of Workforce

Information and Performance5 U.S. Bureau of Labor Statistics6 Salisbury-Wicomico Economic Development, Inc.7 Maryland Department of Commerce8 Maryland State Department of Education; Maryland Higher Education

Commission9 Maryland State Department of Assessments and Taxation; Comptroller of the

Treasury10 Maryland Association of Realtors 11 Maryland State Archives; Maryland Association of Counties

UTILITIESElectricity: Delmarva Power and Choptank Electric Cooperative, Inc.; customers of investor-owned utilities and major cooperatives may choose their electric supplierGas: Natural gas supplied by Chesapeake Utilities Corporation; customers may choose their gas supplierWater: Municipal systems in Delmar, Fruitland, Hebron, Pitts-ville, Salisbury, Sharptown and WillardsSewer: Municipal systems in Delmar, Fruitland, Hebron, Pitts-ville, Salisbury, Sharptown, Willards and Air Business Center Telecommunications: Predominant local carrier - Verizon Maryland; long distance carriers - AT&T, Verizon, Sprint Nextel and others; AT&T, Verizon and Sprint Nextel PoPs are located in Salisbury



Disclaimer

The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be usedfor any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent ofthe SVN® Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property.

The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person isauthorized by the Owner to provide any information or to make any representations other than contained in this Offering Brochure. If the person receivingthese materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor.

Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the informationcontained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. ThisOffering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct,and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representationsor warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or madeavailable to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fullyexecuted and delivered Real Estate Purchase Agreement between it and Owner.

The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the SVN Advisor nor anyof their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this OfferingBrochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, toreject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with anyentity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the OfferingBrochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on termsacceptable to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing andagreed to release the Owner and the SVN Advisor from any liability with respect thereto.

To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any suchcorrespondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospectivepurchaser proceeds at its own risk.

DENNY'S NET LEASED INVESTMENT · 2017. 12. 13. · Customer service representatives 13.50 10.00...

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Transcript of DENNY'S NET LEASED INVESTMENT · 2017. 12. 13. · Customer service representatives 13.50 10.00...