Offering Memorandum BURGER KING Freddy’s Frozen Custard

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

BURGER KING2111 N WOODLAWN STWICHITA, KS 67208

Offering Memorandum

AERIAL PHOTO BURGER KING

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070170


2

AARON’S - CORPORATE RELOCATION STORE

N WOODLAWN ST

Burger King

SOMERSETAPARTMENTS

DOWNTOWNWICHITA

E 21ST ST N

AERIAL PHOTO

3

BURGER KING



Starbucks N WOODLAWN ST

E 21ST ST N

Burger King

EXECUTIVE SUMMARY


4

BURGER KING

BURGER KING 2111 N Woodlawn StWichita, KS 67208

FINANCIAL SUMMARY

Price $1,221,000

Down Payment 100% $1,221,000

Cap Rate 6.50%

Building SF +/- 3,817 SF

Net Cash Flow 6.50% $79,339 *

Year Built 1981 / 2005

Lot Size 0.78 Acres

LEASE SUMMARY

Lease Type Absolute Triple-Net (NNN) Lease

Tenant Genesh Inc.

Roof & Structure Tenant Responsible

Rent Commencement Date April 26, 2005

Lease Expiration Date April 25, 2025

Lease Term Remaining 7 Years

Rental Increases Percentage Rent (8.5% of Gross Sales)

Renewal Options 2, 5 Year Options

BASE RENT $79,339

Net Operating Income $79,339

Total Return 6.50% $79,339

* $52,380 Base Rent + $26,959 Percentage Rent = $79,339 total rent for year 2017

TENANT SALES:2015 - $918,7362016 - $936,6792017 - $939,0442018 - $995,389 (annualized if the 6% actual increase through the first part of the year continues - rent would total $84,608 for year 2018 which would equate to a 6+% increase in rent over year 2017 and increase the cap rate at list price to 6.93%)

AERIAL PHOTO

5

BURGER KING



Starbucks

TENANT OVERVIEW

BURGER KING

Every day, more than 11 million guests visit Burger King restaurants around the world. And they do so because Burger King is known for serving high-quality, great-tasting, and affordable food. Founded in 1954, the Burger King brand is the second largest fast food hamburger chain in the world. The original Home of the Whopper, the commitment to premium ingredients, signature recipes, and family-friendly dining experiences is what has defined the brand for more than 50 success-ful years.d

In 2010, 3G Capital, a global multi-million dollar investment firm fo-cused on long term value creation, purchased Burger King Corporation, making it a privately-held company. 3G Capital’s strategy is to iden-tify and invest in opportunities that are well-positioned for profitable, long-term growth and success across a variety of different sectors and regions. The firm’s management team leverages prior investment experience, industry expertise and an extensive global network to suc-cessfully implement this strategy.

FRANCHISEE OVERVIEW: Genesh, Inc.

Founded in 1998, Genesh, Inc. is a Kansas-based franchisee of Burger King Corporation. Currently, they operate over 58 restaurants in Kan-sas and Missouri with new locations being opened regularly.

Burger King is all about ‘Have It Your Way’ and they strive each and ev-eryday to provide a rewarding, challenging, and fair work environment for all of their team members, and restaurant leaders. They also want to provide a great dining visit for each one of their guests. Burger King (BKC) is the second largest fast food hamburger chain in the world with more than 11,200 restaurants in all 50 states and 69 countries and U.S. territories worldwide. They are proud to be a Burger King franchisee. They are committed to providing an excellent dining expe-rience and terrific value to their guests while providing a fair, challeng-ing and motivational work environment for their employees.

www.burgerking.com

WICHITA, KANSAS




6


LOCATION OVERVIEWINVESTMENT HIGHLIGHTS

Wichita is the largest city in the State of Kansas and the 49th-largest city in the United States. Located in south-central Kansas on the Arkansas River, Wichita is the county seat of Sedgwick County and the principal city of the Wichita metropolitan area. In 2014, the estimated population of the Wichita metropolitan area was 641,076, and that of the larger Wichita-Winfield combined statistical area was 673,598. Major highways, including the Kansas Turnpike, US 400 and Interstate I-135, link the city with a large trade area that encompasses a population of more than a milion people within a 100-mile radius. The nearest large cities are Denver to the west, Kansas City to the northeast, Oklahoma City to the south, and Tulsa to the southeast.

Since the growth of the aircraft industry during the inter-war years, Wichita has been a leading producer of general aviation and commercial aircraft. McConnell Air Force Base was activated in 1951 and has remained an important factor in the community. Additionally, Airbus maintains a workforce in Wichita. The city has long been known as a center of entrepreneurship. In addition to aircraft pioneers, Fred Kock founded Koch Industries in Wichita, and Dan and Frank Carney founded Pizza Hut. Coleman, Freddy’s Frozen Custard, and many other successful companies began in Wichita.

Wichita has evolved into a cultural and entertainment center. The downtown district offers restaurants, retail shops, museums and parks. INTRUST Bank Arena, located in downtown Wichita, features a total potential capacity of over 15,000. Several universities are located in Wichita, the largest being Wichita State University. Friends University and Newman University are also located in Wichita.

In 2011, the city was ranked 8th on the list of the 10 best value cities and in 2013, Wichita was ranked 23 out of 102 major markets for small-business vitality. Commute times are the lowest among the 100 major metropolitan markets. Wichita has also been named the most “Uniquely American” city by Newsmax Magazine, in addition to being designated an “All-American City” four times.

• Absolute Triple-Net (NNN) Lease• Drive-Thru Location• Less Than 2 Miles from Wichita State University (15,080+ Enrolled)• Infill Wichita - 169,120+ Residents in Growing Trade Area• One Mile from Bradley Fair - Shopping Center with 50+ Retailers and Restaurants• Across from ALDI Supermarket• Close Proximity to Sam’s Club, Kohl’s, Walmart Supercenter, PetCo, Target, etc.• Over 220,425 Daytime Employees in Trade Area• 15 Minutes from Downtown Wichita• Average Household Income Exceeds $83K in 3-Mile Radius

PROPERTY DESCRIPTION

Income 1-Mile 3-Miles 5-Miles

2012 Est. Average Household Income $72,940 $83,290 $69,880

2012 Est. Median Household Income $48,995 $54,890 $45,823

2012 Est. Per Capita Income $33,375 $35,159 $28,823

Population 1-Mile 3-Miles 5-Miles

2022 Projection 12,066 74,893 172,351

2017 Estimate 11,606 73,355 169,120

Growth 2017 - 2022 3.97% 2.10% 1.91%

Households 1-Mile 3-Miles 5-Miles

2022 Projections 5,568 31,796 71,212

2017 Estimate 5,267 30,633 68,935

Growth 2017 - 2022 5.72% 3.80% 3.30%

DEMOGRAPHIC REPORT

AERIAL PHOTO

7

BURGER KING



Starbucks




8


LOCAL MAP

Williams-Sonoma

MAP

2 MILESWichita State

University

6 MILESDowntown

Wichita

14 MILESWichita Dwight D.

Eisenhower National Airport

4 MILESWesley Medical

Center

SUBJECT PROPERTY

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap 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. Marcus & Millichap 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 care-ful, 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 finan-cial 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 fa-cilities 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 inter-rupted 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.

Net Leased Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from Marcus &Millichap Real Estate Investment Services of Florida, Inc. (“Marcus & Millichap”) andshould not be made available to any other person or entity without the written consentof Marcus & Millichap.

This Marketing Brochure has been prepared to provide summary, unverified informationto prospective purchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makesno warranty or representation, with respect to the income or expenses for the subjectproperty, the future projected financial performance of the property, the size and squarefootage of the property and improvements, the presence or absence of contaminatingsubstances, PCB’s or asbestos, the compliance with State and Federal regulations, thephysical condition of the improvements thereon, or the financial condition or businessprospects of any tenant, or any tenant’s plans or intentions to continue its occupancyof the subject property. The information contained in this Marketing Brochure hasbeen obtained from sources we believe to be reliable; however, Marcus & Millichaphas not verified, and will not verify, any of the information contained herein, nor hasMarcus & Millichap conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all ofthe information set forth herein.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Confidentiality Agreement

exclusively listedExclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.

GREG BATESBroker of RecordKANSAS CITY OFFICETel: (816) [email protected]: BR00035677

Offering Memorandum BURGER KING Freddy’s Frozen Custard

Documents

Transcript of Offering Memorandum BURGER KING Freddy’s Frozen Custard