Offering Memorandum - LoopNet · 2018-12-14 · Offering Memorandum. HUDDLE HOUSE - CORPORATE. 401...

Offering Memorandum

HUDDLE HOUSE - CORPORATE401 W Ogeechee St • Sylvania, GA 30467

Matthew WelchAssociateAtlanta Office(678) 808-2747(954) 675-8302 [email protected]

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap andshould not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or anytenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable;however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these mattersand makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all ofthe information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or nameis not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, orcommercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

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

HUDDLE HOUSE - CORPORATESylvania, GAACT ID Z0230925

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N E T L E A S E D D I S C L A I M E R

Marcus & Millichap 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, Marcus & Millichap has not and will notverify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warrantyor 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 beforecompleting 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 ofthis 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 toyour 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 legaland 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 aguarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on atenant’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 guarantorsmay 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 tomarket, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her owninvestigation 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 tenantif the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenantconsidering 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 Marcus & Millichap Real Estate Investment Services 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.

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OFFERING SUMMARYPrice $450,000Net Operating Income $44,945Capitalization Rate – Current 9.99%Price / SF $236.22Rent / SF $23.59Lease Type NNGross Leasable Area 1,905 SFYear Built / Renovated 1990 / 2000Lot Size 0.69 acre(s)

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EXECUTIVE SUMMARYOFFERING SUMMARY

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FINANCINGDown Payment All CashNet Cash Flow 9.99% / $44,945Cash on Cash Return 9.99%Total Return 9.99% / $44,945

HUDDLE HOUSE - CORPORATE

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OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES *

Sylvania Bearings Plant 320

Screven County Elementary 190

Screven County Elementary Schl 170

Golden Living LLC 112

Syl-View Health Center Inc 105

Bazemore Services Inc 100

State Probation 97

Screven County High School 75

County of Screven 61

Screven County Middle School 55

Westview Apts 52

Mc Donalds Playhouse 43

DEMOGRAPHICS

3-Miles 5-Miles 10-Miles

2017 Estimate Pop 4,532 6,559 10,269

2010 Census Pop 4,641 6,756 10,555

2017 Estimate HH 1,699 2,459 3,868

2010 Census HH 1,760 2,561 4,025

Median HH Income $36,014 $35,551 $34,723

Per Capita Income $19,075 $19,303 $18,999

Average HH Income $49,893 $50,468 $49,278

* # of Employees based on 10 mile radius


OFFERING SUMMARY

Corporate NN Lease with Huddle House Inc. | 3.5+ Years Remaining Long Term Operating History Over 21+ Years | Recent 5-Year Extension 10% CAP Rate | Small Price Point Deal Brand New Roof | Replaced in November 2018 One 5-Year Option Remaining with 2% or CPI Increase

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present the exclusive listing for the HuddleHouse located at 401 Ogeechee St, Sylvania, GA. The property consists ofa 1,905 SF building on .69 Acres of land. The tenant Huddle House Inc. hasbeen operating at this location for over 21+ years. In August of 1997 theyentered into a 15 year lease with three 5-Year options with 2% or CPIincreases in each option. They recently exercised their second option withone more remaining. This is a NN Lease with the Landlord beingresponsible for the Roof and Structure. There is a brand new roof whichwas completely replaced in November of 2018.

INVESTMENT OVERVIEW

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TENANT PROFILES


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Huddle House Inc.

• Locations: The brand has more than 400 restaurants open or

under development across 24 states with a concentration in

the southeast United States.

• System-Wide Sales: $239 Million

• Average Unit Volume: $670,000

• Average Check: $13.71

General Information

Tenant Name Huddle House Inc.

Website https://www.huddlehouse.com/

Parent Company Sentinel Capital Partners

Headquartered Atlanta, GA

Rentable Square Feet 1,905 SF

Percentage of RBA 100.00%

Lease Commencement 8/29/1997

Lease Expiration 8/31/2022

No. of Locations 360

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401 W Ogeechee St, Sylvania, GA 30467LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEHUDDLE HOUSE - CORPORATE

PRICING AND VALUATION MATRIX


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REGIONAL AND LOCAL MAP

AERIAL PHOTO


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PROPERTY SUMMARYOFFERING SUMMARY

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NOTES


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OFFERING SUMMARY

MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.

We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.

Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues to the benefit of our clients.

National platform operating

within the firm’s brokerage offices

$5.63 billion total national

volume in 2017

Access to more capital sources than any other

firm in the industry

Optimum financing solutions to enhance value

Our ability to enhance buyer pool by expanding finance options

Our ability to enhance seller control

• Through buyer qualification support

• Our ability to manage buyers finance expectations

• Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings

• By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file

WHY MMCC?

Closed 1,707 debt and equity

financings in 2017

ACQUISITION FINANCING


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COMPARABLES MAP

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HUDDLE HOUSE - CORPORATE(SUBJECT)

Huddle House

Huddle House

Huddle House

Huddle House

Huddle House

Huddle House

Huddle House

ON MARKET COMPARABLES

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2

3

4

5

7

6

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SALES COMPARABLES

Avg. 5.75%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

HuddleHouse -

Corporate

HuddleHouse

HuddleHouse-2

HuddleHouse-3

HuddleHouse-4

HuddleHouse-5

HuddleHouse-6

HuddleHouse-7

Average Cap Rate

Avg. $462.63

$0.00

$60.00

$120.00

$180.00

$240.00

$300.00

$360.00

$420.00

$480.00

$540.00

$600.00

HuddleHouse -

Corporate

HuddleHouse

HuddleHouse-2

HuddleHouse-3

HuddleHouse-4

HuddleHouse-5

HuddleHouse-6

HuddleHouse-7

Average Price Per Square Foot

ON MARKET COMPARABLES ON MARKET COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


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SUBJECT PROPERTY

Asking Price $450,000

Price/SF $236.22

CAP Rate 9.99%

GLA 1,905 SF

Lot Size 0.69 acre(s)

Year Built 1990

Lease Term Remaining 3.7 Years

HUDDLE HOUSE - CORPORATE401 W Ogeechee St, Sylvania, GA, 30467

1

On Market

List Price $1,246,470

Price/SF $556.96

CAP Rate 5.75%

GLA 2,238 SF


Lease Term Remaining 20 Years

HUDDLE HOUSE1402 North Young Blvd, Chiefland, FL, 32626

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On Market

List Price $840,678

Price/SF $160.13

CAP Rate 5.75%

GLA 5,250 SF

Lot Size 1 acre(s)


HUDDLE HOUSE2426 US-82, Greenville, MS, 38703

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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3

On Market


Price/SF $598.64

CAP Rate 5.75%

GLA 1,732 SF



HUDDLE HOUSEU.S. One 438 S. Main St., Swainsboro, GA, 30401

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On Market

List Price $922,226

Price/SF $461.11

CAP Rate 5.75%

GLA 2,000 SF



HUDDLE HOUSE306 Old US Hwy 1, Louisville, GA, 30434

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On Market

List Price $809,548

Price/SF $420.76

CAP Rate 5.75%

GLA 1,924 SF



HUDDLE HOUSE916 Oak St, Eatonton, GA, 31024

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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6

On Market

List Price $924,730

Price/SF $542.68

CAP Rate 5.75%

GLA 1,704 SF


Year Built 1988


HUDDLE HOUSEW 1145 SC-9 Bypass, Lancaster, SC, 29720

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On Market


Price/SF $498.10

CAP Rate 5.75%

GLA 2,064 SF



HUDDLE HOUSE3320 N US Highway 441, Lake City, FL, 32055

MARKETING TEAM

Source: © 2015 Experian

PROPERTY NAME

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CREATED ON DECEMBER 12, 2018

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX


PRICING AND VALUATION MATRIX


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DEMOGRAPHICS

3 Miles 5 Miles 10 MilesPOPULATION

2022 Projection 4,277 6,256 9,9962017 Estimate 4,532 6,559 10,2692010 Census 4,641 6,756 10,5552000 Census 5,177 7,382 11,287

INCOMEAverage $49,893 $50,468 $49,278Median $36,014 $35,551 $34,723Per Capita $19,075 $19,303 $18,999

HOUSEHOLDS2022 Projection 1,625 2,377 3,8272017 Estimate 1,699 2,459 3,8682010 Census 1,760 2,561 4,0252000 Census 1,934 2,748 4,214

HOUSING2017 $83,216 $83,078 $79,441

EMPLOYMENT2017 Daytime Population 5,900 7,268 9,050

2017 Unemployment 9.90% 9.50% 8.61%2017 Median Time Traveled 30 29 30

RACE & ETHNICITYWhite 48.81% 50.67% 55.52%Native American 0.02% 0.02% 0.01%African American 48.03% 46.03% 41.43%Asian/Pacific Islander 0.99% 0.92% 0.66%

Offering Memorandum - LoopNet · 2018-12-14 · Offering Memorandum. HUDDLE HOUSE - CORPORATE. 401...

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