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DOG HAUS 2018 CONSTRUCTION, 20-YR NNN LEASE4405 Route 36 East | Decatur, IL
CONFIDENTIAL OFFERING
MEMORANDUM
Actual Location
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EXCLUSIVEOFFERING
Single-Tenant Restaurant
New 2018 Construction
20-Year Absolute NNN Lease
JOSIAH BYRNES VICE PRESIDENT
Josiah Byrnes serves as Vice President of Embree Capital Markets Group, Inc., where he helps guide the formation and execution of diversified real estate capital structures and investment strategies for individual, institutional, and international investors, developers, and tenants.
Josiah joined Embree Group of Companies in 2010. He received BA and MBA degrees from the University of Colorado, as well as a Master of Real Estate Development Degree from Arizona State University.
KLINTON LEWIS ASSOCIATE-NET LEASE SERVICES
Klinton Lewis serves as Associate of Net Lease Services with Embree Capital Markets Group, Inc., where he is responsible for marketing current assets, new developments, and private client’s commercial real estate properties. Klinton also provides investment advice to clients, and is focused on new and existing client business development.
Prior to joining the Embree Capital Markets Group Inc., Klinton served as a real estate agent specializing in single-tenant, net-lease properties, with Marcus & Millichap in Austin, Texas.
LISTED BY:
$3,330,000 PURCHASE
PRICE
$232,992 ANNUAL
RENT
7.00% CAP RATE
ANNUAL LEASE
ESCALATIONS
2.00%
Actual Location
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The information contained herein is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from the Embree Group of Companies (Embree Group) and should not be made available to any other person or entity without the written consent of the Embree Group (the Embree Group collectively refers to Embree Capital Markets Group, Inc., Embree Asset Group, Inc., Embree Healthcare Group, Inc., and Embree Construction Group, Inc.). This brochure has been prepared to provide summary information to prospective investors and to establish a preliminary level of interest in establishing an investment relationship with the Embree Group, which may or may not include the sale or purchase of any specific property referenced herein. Several Embree Group employees are licensed real estate agents and brokers in various states.
The information contained herein is not a substitute for a thorough due diligence investigation. The Embree Group has supplied information in this brochure from sources we believe are reliable; however, all potential Buyers and Investors must take appropriate measures to investigate and verify the income and expenses for any specific property, the future projected financial performance of any specific property, the size and square footage of any specific property and its improvements, the presence or absence of contaminating substances, PCB’s or asbestos, 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 any tenant’s plans or intentions to continue its occupancy of any specific property.
The Embree Group reserves the right to withdraw this solicitation at any time without prior notice. The information contained herein is based upon sources deemed to be reliable, but the accuracy of the information is not guaranteed, nor should the information contained herein be considered all inclusive. Statements contained herein which involve matters of opinion, whether or not identified to be that only, are not representations of fact. The price and terms of this offering may be subject to change at any time.
The Embree Group is not affiliated with, sponsered by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of the Embree Group, its affiliates or subsidiaries, or any agent, product, or commercial listing of The Embree Group, and is solely included for the purpose of proving tenant lessee information about this listing to prospective customers.
DISCLAIMER &CONFIDENTIALITY STATEMENT
The Embree Group has an ownership interest in the subject property.
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TABLE OF CONTENTSProperty & Lease Details
- 5 -
Tenant Overview- 6 -
Site Plan - 7 -
Maps & Aerials- 8 -
Location Overview- 12 -
Demographic Analysis - 13 -
Contact- 14 -
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PROPERTY &LEASE DETAILS
RENT ROLLSUMMARY
THE OFFERINGADDRESS 4405 Route 36 East, Decatur, IL 62521
TENANT Goalz DG IL 109, LLCGoalz Restaurant Group, LLC,
and Three Personal Guarantees
SITE DESCRIPTION BUILDING SIZE Approximately 4,748 SF
LAND SIZE Approximately 1.85 Acres
INVESTMENT SUMMARYPURCHASE PRICE $3,330,000
ANNUAL RENT * $232,992
CAP RATE 7.00%
RENT COMMENCEMENT January 31, 2018
LEASE END January 31, 2038
LEASE TYPE Absolute NNN
LEASE ESCALATIONS 2% Annually
RENEWAL OPTIONS Three, Five-Year Options
RENT YEAR
Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10Year 11Year 12Year 13Year 14Year 15Year 16Year 17Year 18Year 19Year 20
CAP RATE
$232,992 $237,651 $242,404 $247,253 $252,198 $257,242 $262,386 $267,634 $272,987 $278,447 $284,016 $289,696 $295,490 $301,400 $307,428 $313,576 $319,848 $326,245 $332,770
MONTHLY RENT
$19,416 $19,804 $20,200 $20,604 $21,016 $21,437 $21,866 $22,303 $22,749 $23,204 $23,668 $24,141 $24,624 $25,117 $25,619 $26,131 $26,654 $27,187 $27,731
ANNUAL RENT
7.00%7.14%7.28%7.43%7.57%7.72%7.88%8.04%8.20%8.36%8.53%8.70%8.87%9.05%9.23%9.42%9.61%9.80%9.99%
GUARANTOR
ROOF& STRUCTURE Tenant Responsible
* Seller will credit buyer at closing for the amount of incremental rent from the dateof closing until the rental increase in January 2019
*
Actual Location
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BRANDOVERVIEW Dog Haus is a craft casual hot dog concept known for its gourmet hot dogs, sausages, burgers and a one of a kind fried chicken sandwich. Founded by partners Hagop Giragossian, Quasim Riaz and André Vener, three friends who share a passion for good food, creativity, quality and commitment to community, the first Dog Haus opened in Pasadena, California in 2010. Dog Haus has garnered critical acclaim and national attention for its signature all beef dogs and hand crafted sausages with no added nitrates, 100% Black Angus beef burgers, and a fried chicken sandwich, all of which are made with hormone- and antibiotic-free meat. All dogs, sausages, burgers and the fried chicken sandwich are served on grilled King’s Hawaiian rolls. Guests can choose from signature Haus creations or customize their own from a wide array of unique toppings. To chase it down, guests can select great craft beers from a tap list emphasizing local favorites, and they can finish their meals on a sweet note with premium shakes or soft-serve ice cream. Open daily, Dog Haus currently has 30+ locations open in nine states with 20+ in development across the country.
COMPANY TYPE PrivateLEASE GUARANTOR Personal & FranchiseSTORE COUNT 25+/- HEADQUARTERS Pasadena, CAWEBSITE www.doghaus.com
INVESTMENT SUMMARY setting class and teaching CHURCH’S
OPERA people about Goals Boards and to goTES CURRENL
OVER TY
OPERATOROVERVIEW
www.GoalzLLC.comGoalz Restaurant Group was formed by restaurant industry veteran Shawn Eby, who had a goal to start and develop his own company that would focus around helping others. He quickly formed a team of top industry professionals to help achieve this. The team includes Wade Lancaster-VP of Operations, Jeron Boemer-VP of Operations, and Steve Piascik-CFO. Goalz Restaurant Group is currently scheduled to open 265 restaurants over the next few years across ten states, (NC, SC, GA, FL, LA, OH, CO, WY, KY, IL) and has additional plans to grow further. Currently the three brands that Goalz will franchise are Captain D’s, Church’s Chicken and Dog Haus.
Shawn has always said “without goals you have no direction and without direction you go nowhere”. When it came to thinking of not just a name but what we want to be known for Shawn thought about his career and how he wanted this to be a company that truly cares about the employees and their families. He thought about his goal
after your dreams. Goalz recently announced a 200 unit Church's Chicken franchise commitment with a plan to open 20 new locations yearly.
The following are Goalzes' national leaders:Shawn Eby - Chief Executive OfficerWade Lancaster Jaron Boemer Steve Piascik
- Vice President of Operations- Vice President of Operations- Chief Financial Officer
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SITEPLAN
N
E
S
W
13,300 Vehicles Per Day
9,00
0 V
ehic
les
Per
Day
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STATE & AREACONTEXT
STAT
E
AR
EA
DECATURDECATUR
180 Miles to Chicago
50 Miles to Champaign
80 Miles to Peoria
125 Miles to St. Louis
175 Miles to Indianapolis
80 Miles to Peoria
125 Miles to St. Louis
50 Miles to Champaign
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HEATMAPS
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W
POPU
LATI
ON N
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W
INC
OM
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4405 Route 36 East Decatur, IL 62521
4405 Route 36 East Decatur, IL 62521
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Millikin University
CITYAERIAL
N
E
S
W
Decatur Airport
Lake Decatur
DECATUR
Downtown 4-Miles
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AERIAL
Decatur Airport
Interstate 36 13,000 Vehicles Per Day)
Mt. Zion (14,000 Vehicles Per D
ay)E. Maryland St (9,000 Vehicles Per Day)
DMH Express
Prairie State Bank & Trust
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LOCATION OVERVIEW ABOUT DECATUR, IL Decatur, Illinois is the largest city in Macon County and is the county seat. The city is located just 40-miles to the east of Springfield, Illinois and 50-
miles southwest of Champaign, Illinois. Decatur has substantial industrial and agricultural processing production, including the headquarters of
agricultural conglomerate Archer Daniels Midland, agribusiness Tate & Lyle’s, and Caterpillar Inc. manufacturing facilities. As of the 2010 census,
there were 76,122 people residing in the city. A new branding effort, Limitless Decatur, was unveiled in 2015 in a marketing strategy to attract and
retain business and residents by promoting Decatur area as a modern and progressive with opportunities to live, work and develop.
The subject property is located on the corner of State Route 36 and South 44th Street with a combined traffic count of over 22,000 vehicles per day.
The subject property previously was a Ruby Tuesdays restaurant that was renovated to the DogHaus restaurant. The site is surrounded by an
extensive number of tenants: Fresenius Medical Care, Walmart shopping center, Kroger, Kid’s Castle Learning Center, Walgreens, Dollar Tree, BP
Gas Station, GNC, Aldi, McDonalds, Arby’s, Culver’s, and Steak & Shake to name a few. Directly across State Route 36 is the Decatur Airport
providing the Decatur residents easy access to Chicago and St. Louis.
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DEMOGRAPHICANALYSIS
ILLINOIS
1 MILE 3 MILE 5 MILE POPULATION
RACE/ETHNICITY
INCOME 1 MILE 3 MILE 5 MILE
2017 Population 53,909 79,516 111,389
2022 Projection 52,375 77,368 108,829
2010 Census 56,835 83,322 114,886
HOUSEHOLDS
2017 Households 22,409 33,390 45,888
2022 Projected Households 21,734 32,437 44,769
Owner Occupied 13,783 22,093 32,592
Renter Occupied 8,626 11,297 13,296
Caucasian 36,968 58,747 89,201
African American 13,888 16,288 16,600
Am. Indian & Alaskan 133 190 288
Asian 298 764 1,141
Hawaiian & Pacific Islander 18 22 32
Hispanic 1,236 1,738 2,086
Other 2,755 3,717 4,448
Avg. Household Income $50,609 $57,337 $64,433
$25,000-$29,999 1,434 1,878 2,467
$35,000-39,999 1,091 1,621 2,093
$45,000-$49,999 1,026 1,542 2,196
$55,000-$59,999 823 1,267 1,803
$65,000-$69,999 717 1,189 1,638
$80,000-$89,999 864 1,524 2,366
$100,000-$125,000 1,046 2,058 3,370
$500,000+ 39 73 180
Businesses 1,566 2,062 2,756
Employees 35,109 46,758 56,690
DAY
DECATUR
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OFFERING MEMORANDUM DECATUR, ILLINOIS
Embree Group of Companies provides nationwide turnkey real estate services, specializing in build-to-suit development, design/build, general construction, program management, and capital markets for specialty retail, financial, automotive, restaurant, healthcare and senior living facilities. Embree’s fully integrated, in-house services allow us to become an extension of the client’s organization. Since 1979, Embree’s foundation has been built on developing tailored programs for 300+ national clients. The firm is headquartered near Austin, Texas, with a regional office located in Phoenix. Over the past 39 years, Embree’s executive team has developed, built, or transacted morethan 12,000 assets in all 50 states, Puerto Rico, and Canada with a total market value in excess of $10 billion.
ABOUT EMBREE
EXCLUSIVELY PRESENTED BY: JOSIAH BYRNES | VICE PRESIDENT
[email protected] | +1.719.243.6569 | www.EmbreeGroup.com
KLINTON LEWIS | ASSOCIATE NET LEASE [email protected] | +1.512.819.4729 | www.EmbreeGroup.com
Actual Location