NNN Red Lobster Corporate · Red Lobster is the largest seafood restaurant concept in the world and...

Actual Building

NNN Red Lobster Corporate 3600 N, US-75, Sherman, TX 75090

• 20.5± Years Remain on Absolute NNN Corporate Lease (Zero LL Obligations) • 2% Annual Rent Bumps – Excellent Hedge Against Inflation • Located in Dense Retail Corridor – next to Walmart, Lowe’s, Target, Home Depot,

Sam’s Club, Kohl’s and much more.

Price $5,100,000 | 6.15% CAP | NOI $313,630*

Demographics 1-Mile 3-Mile 5-Mile

Total Population 2016 3,809 31,549 45,563

Total Population 2021 3,856 31,720 46,299

Average HH Income $50,544 $59,465 $63,096

No warranty expressed or implied has been made as to the accuracy of the information provided herein, no liability assumed for error or omissions

Asking Price $5,100,000

CAP Rate 6.15%

NOI $313,630*

Years Left on Lease 20.5± Years

Rent Increases 2% Annual

PROPERTY / LEASE OVERVIEW

We are pleased to present the opportunity to purchase an absolute NNN Red Lobster located in Sherman (Dallas), TX for $5,100,000 / 6.15% CAP. There are approximately 20.5± years remaining on the corporately backed Lease with 2% annual rent bumps and 4 x 5 year options. The Lease is absolute NNN with zero Landlord obligations - Tenant is responsible for all property taxes, insurance and maintenance/repairs, etc. The Property is situated on 1.45± acres off US-75 with over 46,000+ VPD. Positioned as an out-parcel to the Sherman Towncenter which contains more than 60 stores and restaurants including; Target, Walmart, Home Depot, JC Penney, TJ Maxx, Best Buy, Old Navy, Ross Dress for Less, Cinemark Sherman, Starbucks, Hobby Lobby, Panera Bread, Chick-Fil-A, Buffalo Wild Wings, Chipotle and more! The Lease is corporately guaranteed by Red Lobster, a subsidiary of Golden Gate Capital, who has a long track record of investments in multi-unit restaurant and retail businesses, Golden Gate Capital has over $15 billion in assets under management. Red Lobster is the largest seafood restaurant concept in the world and is an iconic full service brand with broad Demographic appeal and a significant advertising budget (2nd largest in casual dining). The Company was founded in 1968 and currently operates 704 restaurants throughout the United States and Canada and has 43 franchised restaurants in international markets.

*Priced off Aug 2019 Rent Bump - Seller to provide rent credit at closing

Lease Commencement December 17, 2015

Lease Expiration July 31, 2039

Building Size 7,189± SF

Lot Size 1.65± AC

Options to Renew 4 x 5 year w/Bumps

Year Built/Remodel 2007

Tenant Red Lobster Hospitality, LLC

Lease Guarantor Corporate

Lease Type Fee Simple – Absolute NNN

Roof & Structure Tenant Responsible

PROPERTY / LEASE OVERVIEW

3600 N, US-75, Sherman, TX 75090

AERIAL PHOTO

Steven Schroeder | Single Tenant Net Leased Specialist | Solid Investments of Berger Realty Group C: 954-593-6466 • F: 954-944-1830 • [email protected] • www.SolidInvestmentsFL.com No warranty expressed or implied has been made as to the accuracy of the information provided herein, no liability assumed for error or omissions


AERIAL PHOTO AERIAL PHOTO


AERIAL AERIAL PHOTO

Absolute NNN Lease - ZERO Landlord Responsibilities

Long Term Lease - 20.5± Years Left on the Primary Term

2% Annual Rent Increases – Excellent Hedge Against Inflation

Corporate Guaranteed Lease by Red Lobster, a subsidiary of Golden Gate Capital, who has over $15 billion in assets under management - Notable restaurant and retail investments include Express, Payless Shoe Source, Anne Taylor, California Pizza Kitchen, J. Jill, and Eddie Bauer, among others.

Red Lobster is the World’s Largest Seafood Restaurant Concept with 700+ Locations and staffs over 58,000 employees and brought in $2.5 billion in net sales.

Thai Union, primarily known for its large global tuna brands including Chicken of the Sea and John West, recently invested $575 million (25% stake) into Red Lobster – Click here to read that article.

Strong Population Growth – 44,419 People Within Five-Mile Radius

65 Miles Northeast of Dallas, Texas

Great Visiblity from Highway – U.S. Highway 75 and U.S. Route 82 | 28,140 and 17,937 Vehicles a Day Respectively

Positioned as an out-parcel to the Sherman Towncenter which contains more than 60 stores and restaurants including; Target, Walmart, Home Depot, JC Penney, TJ Maxx, Best Buy, Old Navy, Ross Dress for Less, Cinemark Sherman, Starbucks, Hobby Lobby, Panera Bread, Chick-Fil-A, Buffalo Wild Wings, Chipotle and more!

Sale Includes BOTH Building & Land (depreciable asset)

Texas has No State Income Tax


PROPERTY HIGHLIGHTS

https://www.seafoodsource.com/news/supply-trade/thai-union-buys-usd-575-million-stake-in-red-lobster

AERIAL PHOTO


PROPERTY PHOTO

PROPERTY PHOTO PROPERTY PHOTO


ABOUT THE LOCATION

This Red Lobster property is located at 3600 North U.S. Highway 75 in Sherman, Texas. Sherman is in Grayson County and is 65 miles northeast of Dallas. This Red Lobster is located off of North U.S. Highway 75, which has an average daily traffic count of 28,140 vehicles. Adjacent to North U.S. Highway 75 is U.S. Route 82, which brings in an additional 17,937 vehicles daily to the area. There are 44,419 people within a five-mile radius of the subject property. The subject property is well-positioned in a dense retail corridor, benefitting from its proximity to major national and local retailers. Major national retailers in the area include Target, Lowe’s, Home Depot, Walmart, Sam’s Club, JCPenney, Aldi, Petco, Belk, Best Buy, T.J. Maxx, Holiday Inn, La Quinta Inn, Olive Garden, Texas Roadhouse, IHOP, Golden Corral, Chipotle and many more. The Midway Mall is located one mile away from this Red Lobster site and is anchored by Sears, Dillard’s and Burlington Coat Factory. Sherman faces increasing growth based on its location, superior infrastructure and proven track record of attracting major employers. Being directly in the path of the rapid northward


expansion of the Dallas-Fort Worth metroplex, Sherman is well positioned to increase business traffic over the next several years. Sherman’s infrastructure is outstanding. The transportation system is anchored by the crossroads of U.S. Highway 75 and U.S. Highway 82 and is bolstered by the excellent airport facilities at the North Texas Regional Airport and Sherman Municipal Airport.

AERIAL PHOTO


PROPERTY PHOTO

PROPERTY PHOTO PROPERTY PHOTO



RENT ROLL

Lease Year NOI CAP Increases

August 1, 2019 - July 31, 2020 $313,630 6.15% 2%

August 1, 2020 - July 31, 2021 $319,903 6.27% 2%

August 1, 2021 - July 31, 2022 $326,301 6.40% 2%

August 1, 2022 - July 31 2023 $332,827 6.53% 2%

August 1, 2023 - July 31, 2024 $339,484 6.66% 2%

August 1, 2024 - July 31 2025 $346,273 6.79% 2%

August 1, 2025 - July 31 2026 $353,199 6.93% 2%

August 1, 2026 - July 31 2027 $360,263 7.06% 2%

August 1, 2027 - July 31 2028 $367,468 7.21% 2%

August 1, 2028 - July 31 2029 $374,817 7.35% 2%

August 1, 2029 - July 31 2030 $382,314 7.50% 2%

August 1, 2030 - July 31 2031 $389,960 7.65% 2%

August 1, 2031 - July 31 2032 $397,759 7.80% 2%

August 1, 2032 - July 31, 2033 $405,714 7.96% 2%

August 1, 2033 - July 31, 2034 $413,829 8.11% 2%

August 1, 2034 - July 31, 2035 $422,105 8.28% 2%

August 1, 2035 - July 31, 2036 $430,547 8.44% 2%

August 1, 2036 - July 31, 2037 $439,158 8.61% 2%

August 1, 2037 - July 31, 2038 $447,942 8.78% 2%

August 1, 2038 - July 31, 2039 $456,900 8.96% 2%

RENT ROLL


TENANT PROFILE

Website - www.RedLobster.com Number of Locations: 705 • Red Lobster is the largest seafood restaurant concept in the world

and is an iconic full service brand with broad demographic appeal and a significant advertising budget (2nd largest in casual dining).

• Thai Union, primarily known for its large global tuna brands including Chicken of the Sea and John West, recently invested $575 million (25% stake) into Red Lobster – Click here to read that article.

• The Company was founded in 1968 and currently operates 704 restaurants throughout the United States and Canada and has 43 franchised restaurants in international markets.

• Red Lobster is led by an experienced management team with a history of success leading the brand (average 27+ years experience across executive team).

• The company generates $2.5B in revenue and is the 6th largest casual dining concept in North America.

• On July 28, 2014, Golden Gate Capital (“GGC”) acquired Red Lobster from Darden Restaurants

• Red Lobster is now an independently owned company, completely separate from Darden Restaurants

• Red Lobster is well capitalized with >$200M net worth and >$200M of liquidity

• Golden Gate Capital has a long, successful track record and significant experience with multi-unit restaurant and retail businesses

Tenant: Red Lobster Hospitality LLC

Business Type: Casual Dining Restaurant

Ownership: Private

Revenue: $2.5 Billion

Founded: 1968

Headquarters: Orlando, FL

Website www.goldengatecap.com

TENANT PROFILE

50% Share in Seafood Casual Dining

http://www.redlobster.com/

https://www.seafoodsource.com/news/supply-trade/thai-union-buys-usd-575-million-stake-in-red-lobster

http://www.goldengatecap.com/

Solid Investments of Berger Realty 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, Solid Investments of Berger Realty Group has not and will not verify any of this information, nor has Solid Investments of Berger Realty Group conducted any investigation regarding these matters. Solid Investments of Berger Realty 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. Solid Investments of Berger Realty 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 Solid Investments of Berger Realty Group Real 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 NET LEASE DISCLAIMER

Exclusively Marketed By

SOLID INVESTMENTS

STEVEN SCHROEDER Net Leased Specialist

O: 954-593-6466 F: 954-944-1830

[email protected] www.SolidInvestmentsFL.com

Berger Realty Group

NNN Red Lobster Corporate · Red Lobster is the largest seafood restaurant concept in the world and...

Documents

Transcript of NNN Red Lobster Corporate · Red Lobster is the largest seafood restaurant concept in the world and...