OFFERING MEMORANDUM€¦ · 4 ASSET PRECIS 6 AREA OVERVIEW 10 PROPERTY FEATURES 12 TENANT REPORT 13...

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Wendy’sOFFERING MEMORANDUM

Grand Rapids, MI

TABLE OF CONTENTS

ASSET PRECIS4AREA OVERVIEW6

PROPERTY FEATURES10TENANT REPORT 12INVESTMENT SUMMARY13

EXCLUSIVE LISTINGAGENTS

ADAM RAIZE

ASSOCIATE

[email protected] (310) 844-9370MOB (760) 799-5301LIC # 01998817

GARY CHOU

FVP & Senior Director


KYLE MATTHEWSBROKER OF RECORDLIC # 6505399495

PROPERTY FEATURES

ASSET

INVESTMENT HIGHLIGHTS

PASSIVE, SECURE INVESTMENT

• Long term lease: 7.5 Years remaining on the original 20-year lease with two (2), ten (10) year options to extend

• Absolute NNN lease: Zero landlord responsibilities

• Hedge against inflation: 5% rent increases every 5 years

EXCELLENT LOCATION

• High visibility: Located off of Northland Drive NE, this site benefits from ±25,000 ADT

• Healthy demographics: Over 75,000 people within a 5-mile radius with average household incomes of $89,597

• Other National Tenants in the area include: Anytime Fitness, Walgreens, Cricket, Starbucks and Chase Bank

STRONG OPERATOR IN AN EXCELLENT BRAND

• Seasoned operator: Meritage Hospitality Group is one of the largest operators in the Wendy’s system operating over 180 units in over 8 states

• Strong commitment: Meritage Hospitality continues to expand their Wendy’s operations and Image Activating existing stores

• Iconic brand: Wendy’s has over 6,500 units worldwide and an annual revenue of $1.9B

GRAND RAPIDS, MICHIGAN

• Grand Rapids is the second largest city in the state of Michigan

• The city is the primary business center of Western Michigan

Wendy’s5070 Northland Drive NEGrand Rapids, MI 49525

List Price ........................................................................................... $1,990,992

CAP Rate - Current ...................................................................................6.25%

Gross Leasable Area .......................................................................± 3,378 SF

Lot Size ...........................................................................................± 1.36 Acres

Year Built / Renovated .............................................................................. 2002

PRECIS

~ Wendy’s ~ Grand Rapids ~ Michigan ~4

5~ Matthews Real Estate Investment Services ~

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Current $10,369.17 $124,437 $36.84 6.25%

12/18/2019 $10,888.25 $130,659 $38.68 6.56%

Option 1 $11,432.58 $137,191 $40.61 6.89%

Option 1 - Increase $12,004.25 $144,051 $42.64 7.24%

Option 2 $12,604.50 $151,254 $44.78 7.60%

Option 2 - Increase $13,234.67 $158,816 $47.01 7.98%

Tenant Summary

Tenant Trade Name Wendy’s

Type of Ownership Fee Simple

Lease Guarantor Meritage Hospitality Group

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date 12/18/2004

Rent Commencement Date 12/18/2004

Lease Expiration Date 12/18/2024

Term Remaining on Lease ± 7.8 Years

Increases 5% Increases Every 5 Years

Options Two (2), Ten (10) Year Options

AREA

Grand Rapids, MichiganKnown for having the most vibrant downtown between Chicago and Cleveland, Grand Rapids is the primary cultural and business hub of Western Michigan. It located along the Grand River, just thirty minutes away from Lake Michigan’s golden beaches and captivating sunsets. As Michigan’s second largest city, Grand Rapids has long been a mecca for creators and admirers of craftsmanship. Artistic creativity became an integral part of the city’s identity in the 20th century, encompassing everything from visual and performing arts to brewery and cuisine.

With high incomes and low living costs, Grand Rapids offers big city amenities and a high quality of life to its residents. Grand Rapids’ well-maintained and traditionally Midwestern downtown area has a European appearance where the Grand River flows through it. Bustling with numerous restaurants, clubs, theaters and museums, downtown’s walkable neighborhoods host a number of festivals. Many of these events take place at the Vandenberg Plaza, namely the Celebration on the Grand and Festival of the Arts.

OVERVIEW


7

AREA

R E G I O N A L M A P

Economic SnapshotUpon its establishment, Grand Rapids emerged as a notable furniture-producing center due to nearby hardwood forests. Today, that industry has transitioned towards high-tech office furniture with the headquarters for such names as Steelcase and Herman Miller in the city, two of the world’s leading office furniture companies.

The surrounding area is agricultural, where greater agricultural variety than otherwise found in many Midwestern locations is promoted by the tempering effect of Lake Michigan. Michigan is second only to California in agricultural diversity; the area is responsible for producing 85% of all crops harvested in Michigan. In part because of the agricultural environment, the area was attractive to settlers who started large, successful businesses such as the Meijer, Van Andel and De Vos families, all of whom left large endowments to the city. Consequently, Meijer and Alticor are both headquartered in Grand Rapids along with other national and multi-national companies, such as Haworth,

Wolverine World Wide and Zondervan.

Subject Property

OVERVIEW

M A J O R E M P L O Y E R S

Grand Rapids is home to one of the world’s most visited art museums, the Frederik Meijer Gardens & Sculpture Park, along with several other cultural assets including the Grand Rapids Art Museum, the Van Andel Museum Center, the Gerald R. Ford Presidential Museum and the Roger B. Chaffee Planetarium. A myriad of theaters and stages further enhance Grand Rapids’ culture scene, offering live theater and performances by the city’s Grammy-nominated symphony.

# of Employees

D E M O G R A P H I C S

DevelopmentInterest in rebuilding Grand Rapids’ downtown core has been an ongoing theme since the late 1990’s with eleven LEED projects, new construction and renovations on historic buildings. An estimated $3 billion of generated investment has brought countless jobs to the active, high-energy urban center of a growing region of more than one million people. Moreover, the redevelopment of historic buildings into urban condominiums and apartments have brought over 4,000 young professionals into the walkable downtown area.

Grand Rapids has demonstrated an innate ability to forge a dynamic public-private partnership between businesses and community leaders, setting a multi-billion-dollar development boom in motion. The city’s revitalization initiatives are viewed as a template for generating innovative public-private partnerships and a catalyst for world-class life sciences and biotechnology research.


Western Michigan is the fastest growing region in the upper Midwest as start-ups, software firms and high-tech corporations continue to move into Grand Rapids, which surpasses eleven of its peer communities in manufacturing and job and wealth creation. Businesses find the city to be a great place to do business; Grand Rapids’ infrastructure is ready-made for business, offering facilities that range from incubator space for startups to industrial parks for manufacturing and centers for research development. It offers lower business taxes and opportunities for companies of any size and type.

2 0 1 7 E s t . Av e r a g e H o u s e h o l d I n c o m e

$ 5 7 , 8 1 3

P r o j e c t e d G r o w t h 2 0 1 7 - 2 0 2 2

3 . 8 2 %

2 0 1 7 E s t i m a t e8 0 , 6 6 0

P r o j e c t e d G r o w t h 2 0 1 7 - 2 0 2 2

2 . 9 5 %

2 0 1 7 E s t i m a t e1 9 8 , 7 0 1

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~ Matthews Real Estate Investment Services ~ 9

Gerald R. Ford In ternat ional Airpor tSituated twenty-five miles southeast of Grand Rapids, Gerald R. Ford International Airport is the largest commercial airport in the West Michigan region and the second largest airport in the state. The airport provides commercial air service to the city with eight passenger airlines operating over 150 daily flights to 23 nonstop destination across the country.

Operated by the Interurban Transit Partnership, the Rapid is a public transit system that provides bus service to the Grand Rapids metropolitan area nad its corresponding suburbs. In addition to its fixed routes, the Rapid also operates demand response services for people with disabilities and for those living outside of the fixed-route service area.

The RapidThe Pere Marquette is a passenger train operated by Amtrak that is funded by the Michigan Department of Transportation. Providing direct train service to Chicago from Grand Rapids, the Pere Marquette is part of Amtrak’s Michigan Services, which are three Amtrak passenger rail routes connecting Chicago with the Michigan cities of Grand Rapids, Detroit, and Port Huron.

Pere Marquet te

GETTING AROUND

Beer Ci ty Ale Trai l

UNIQUELY GRAND RAPIDS

Ar tPr ize

Frederik Mei jer Gardens & Sculpture Park

Voted Beer City USA in national polls, the city also attracts beer lovers to its Beer City Ale Trail, which boasts more than 40 breweries. A booming craft brewery industry has garnered Grand Rapids a lot of attention. The Beer City Ale Trail takes visitors through a self-guided craft beer tour, allowing them to experience local craft breweries. Many of the area’s most notable breweries offer an insider look at the creation of their product. Grand Rapids is home to Founders, the third best brewery in the world, and HopCat, which was voted as the number one brewpub in the United States and the third best beer bar in the world: Two places certainly worth checking out!

As an emerging worldwide cultural destination, Meijer Gardens is the state’s second-largest tourist attraction as well as a feature venue in ArtPrize. Located on a 158-acre campus, Meijer Gardens features Michigan’s largest tropical conservatory, sculpture galleries and permanent sculpture collection, outdoor gardens, nature trails and outdoor gardens. This attraction is one of the nation’s most significant sculpture and botanic experiences, drawing more than ten million visitors since its opening in 1995.

ArtPrize is Grand Rapids’ independent international art competition held every summer. The nineteen day-long event is unlike traditional competitions in that contestants are judged by the public and a jury of professional artists; It is the largest art competition decided by public vote. During the competition, art from all over the world can be seen on every corner of downtown. An approximate 200 venues open their doors for this event as the city serves as an opent platform for those wanting to share their artistic opinion, knowledge, and skills.

10 ~ Wendy’s ~ Grand Rapids ~ Michigan ~

PROPERTY

THE OFFERING

PARCEL MAP

Property Name Wendy’s

Property Address 5070 Northland Drive NE

Grand Rapids, MI 92056

Assessor’s Parcel Number 41-10-26-201-011

Zoning C1

Site DescriptionNumber of Stories One

Year Built 2002

Gross Leasable Area (GLA) ± 3,378 SF

Lot Size ± 1.36 Acres (59,241 SF)

Type of Ownership NNN

Parking ± 64 Surface Spaces

Parking Ratio 18.9 : 1,000 SF

Landscaping Professional

Topography Generally Level

ConstructionFoundation Concrete Slab

Framing Wood

Exterior Masonry

Parking Surface Asphalt

Roof Flat

FEATURES

Subject Property

Blythefield Country Club

Northwood Hills Condiminiums

Rolling Pines Apartments Highlands Middle

School

± 25,000 ADTNorthland Drive NE

± 16,000 ADTPlainfield Avenue NE

A E R I A L B I R D ’ S E Y EFEATURES


TENANT

We n d y ’sThe Wendy’s Company operates the Wendy’s fast food chain. The company is the #2 hamburger chain in the US. The Wendy’s chain consists of nearly 6,500 restaurants in the US and more than 25 other countries. Besides burgers and fries, the restaurants serve chicken sandwiches, wraps, and a variety of salads. Instead of milkshakes, Wendy’s serves its famously thick Frosty. Most of the company’s locations are franchised, and it generates most of its sales in the US.

STRATEGY

Wendy’s brand transformation is re-energizing all touch points with consumers. From bold restaurant design to innovative food that consumers’ want, to improved customer service, this exciting evolution of the brand reinforces the mission to position Wendy’s as A Cut Above.

GEOGRAPHIC OUTREACH

There are more than 6,500 Wendy’s® restaurants currently in operation in the United States and 29 countries and U.S. territories worldwide. New market expansion and further development within existing markets will continue to be dominant drivers of Wendy’s worldwide strategy over the coming years. Ultimately, we believe that earnings generated from international markets will be a significant component of our ability to generate long-term value for our stockholders.

Company Name Wendy’s

Parent Company Trade Name The Wendy’s Company (NASDAQ: WEN)

Ownership Public

Credit Rating (S&P) B+

No. of Locations ± 6,500

No. of Employees ± 21,200

Headquartered Dublin, Ohio

Website www.wendys.com

Year Founded 1969

REPORT

INVESTMENT

• Site is located near intersection of Northland Drive NE, which see ±25,000 ADT, and Plainfield Avenue NE, which sees ±16,000 ADT

• Rent increases act as a hedge against inflation

• There are zero landlord responsibilities

• Operated by one of the largest Wendy’s operators

• Proximally located to Highlands Middle School

• It is the urban center of a growing region that offers low business taxes

• Grand Rapids has a strong, diversified economy

• 2017 average household income is estimated to be $57,813 throughout the city

• Forbes name it the Best City in the U.S. to invest in housing in 2016

• Area Development Magazine ranked Grand Rapids 3rd in its 2016 Leading Locations Report

WHY GRAND RAPIDS?

WHY THIS PROPERTY?

SUMMARY

13~ Matthews Real Estate Investment Services ~

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Wendy’s located at 5070 Northland Drive NE, Grand Rapids, MI 92506 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

CONFIDENTIAL ITY & DISCLAIMER STATEMENT

~ Matthews Real Estate Investment Services ~ 15

EXCLUSIVE LISTINGAGENTS

ADAM RAIZEASSOCIATE


GARY CHOUFVP & Senior Director


KYLE MATTHEWSBROKER OF RECORDLIC # 6505399495

Wendy’sGrand Rapids, MI

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OFFERING MEMORANDUM€¦ · 4 ASSET PRECIS 6 AREA OVERVIEW 10 PROPERTY FEATURES 12 TENANT REPORT 13...

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Transcript of OFFERING MEMORANDUM€¦ · 4 ASSET PRECIS 6 AREA OVERVIEW 10 PROPERTY FEATURES 12 TENANT REPORT 13...