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LUFKIN, TX
Logan's Ground Lease
OFFERING MEMORANDUM
CONFIDENTIALITY AND DISCLAIMER
The 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 and should 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, unverified information 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 due diligence 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, the future 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 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 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 matters and 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 of the information set forth herein.
LUFKIN, TX
Logan's Ground Lease
Marcus & 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 name is 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, or commercial 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 YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.
NON-ENDORSEMENT NOTICE
NET LEASED DISCLAIMER
Logan's Ground LeaseLUFKIN, TX
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 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 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 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.
INTRODUCTION
Logan's Ground LeaseLUFKIN, TX
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
IABS
Section 1 PRICING AND FINANCIAL ANALYSIS
Section 2 PROPERTY DESCRIPTION
Section 3 RECENT SALES
Section 4 DEMOGRAPHIC ANALYSIS
TABLE OF CONTENTS
Logan's Ground Lease
Logan's Ground LeaseLUFKIN, TX
PRICING AND FINANCIAL ANALYSIS
Annualized Operating Data
4201 South MedfordLufkin, TX 75901
Price $1,700,000
Down Payment 100% / $1,700,000
Rentable Square Feet 7,467
CAP Rate 6.23%
Year Built 2007
Lot Size 1.442 Acres
Type of Ownership Leased Fee / Ground Lease
Location
Rent Increases Annual Rent Monthly Rent
Option 1, 5 Year $116,463.00 $9,705.25
Option 2, 5 Year $128,109.00 $10,675.75
Option 3, 5 Year $140,920.00 $11,743.33
1
Base Rent Years 6-10 ($14.18/SF) $105,875
Net Operating Income $105,875
Total Return 6.23% / $105,875
PRICING AND FINANCIAL ANALYSIS
Tenant Trade Name Logan's Road House, Inc.
Ownership Private
Tenant Logan's Roadhouse
Lease Guarantor Corporate Guarantee
Lease Type Ground Lease
Roof and Structure Tenant Responsible
Lease Term 15 Years
Lease Commencement Date February 5, 2007
Rent Commencement Date February 5, 2007
Lease Expiration Date January 31, 2022
Term Remaining on Lease 6 Years
Increases 10%, Every 5 Years
Options Yes
Logan's Ground LeaseLUFKIN, TX
Tenant Summary
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
FINANCIAL OVERVIEW
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PRICING AND FINANCIAL ANALYSIS
Logan's Ground LeaseLUFKIN, TX
Property Name Logan's Ground Lease
Property Address 4201 South Medford Drive
Lufkin, TX 75901
Property Type Net Leased Restaurant - Other
Rentable Square Feet 7,467
Tenant Trade Name Logan's Road House, Inc.
Ownership Private
Tenant Logan's Roadhouse
Sales Volume $614 Million
Lease Guarantor Corporate Guarantee
Lease Commencement Date February 5, 2007
Rent Commencement Date February 5, 2007
Lease Expiration Date January 31, 2022
Term Remaining on Lease 6 Years
Lease Type Ground Lease
Roof and Structure Tenant Responsible
Lease Term 15 Years
Increases 10%, Every 5 Years
Options to Renew Yes
Options to Terminate None
Options to Purchase Yes
First Right of Refusal Yes
No. of Locations 250+
Headquartered Nashville, TN
Web Site www.logansroadhouse.com
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
TENANT OVERVIEW
Note: Logan's filed for bankruptcy recently and those proceedings are now closed. This location/lease was not on the list of stores to be closed and is current.
Logan's Ground LeaseLUFKIN, TX
PROPERTY DESCRIPTION
The subject property is a 7,647-square foot, freestanding restaurant situated on 1.44 acres in Lufkin, Texas. The property is leased to Logan's Roadhouse under a ground lease and with rent at a conservative $14 per square foot for the structure with six years remaining on the lease.
The property sits on an outparcel to Home Depot, located in the major retail trade area in Lufkin, Texas, near the Lufkin Mall. Other retailers in the area include Super Target (across the street), Cinemark, Lowe's Home Improvement, and many more.
Lufkin is a city in Angelina County in eastern Texas. This city is 120 miles northeast of Houston. Founded in 1882, the population was 35,067 at the 2010 Census.
Investment Highlights
■ Replaceable Rent at $14 per Square Foot
■ Home Depot Outparcel Located in Major Retail TradeArea
■ Six Years Remaining on Lease
■ Zero Landlord Responsibility
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PROPERTY DESCRIPTION
Logan's Ground LeaseLUFKIN, TX
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
INVESTMENT OVERVIEW
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PROPERTY DESCRIPTION
Logan's Ground LeaseLUFKIN, TX
The Offering
Property Logan's Ground Lease
Property Address 4201 South Medford Drive
Lufkin, TX 75901
Site Description
Year Built 2007
Rentable Square Feet 7,467
Lot Size 1.442 Acres
Type of Ownership Leased Fee / Ground Lease
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
PROPERTY SUMMARY
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PROPERTY DESCRIPTION
Logan's Ground LeaseLUFKIN, TX
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
PROPERTY PHOTOS
Local Map Regional Map
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PROPERTY DESCRIPTION
Logan's Ground LeaseLUFKIN, TX
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
AREA MAPS
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PROPERTY DESCRIPTION
Logan's Ground LeaseLUFKIN, TX
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
AERIAL PHOTO
Logan's Ground LeaseLUFKIN, TX
RECENT SALES
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Logan's Ground Lease
Logan's Roadhouse Ground Lease
Logan's Roadhouse
Logan's Roadhouse
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RECENT SALES
Logan's Ground LeaseLUFKIN, TX
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
RECENT SALES MAP
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Average Price per Square Foot
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RECENT SALES
Logan's Ground LeaseLUFKIN, TX
Average Cap Rate
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
CAP RATE AND PRICE PER SQUARE FOOT
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Subject Property
Logan's Ground Lease
4201 South Medford Drive
Lufkin, TX 75901
Logan's Roadhouse Ground Lease
504 Northgate Mall
Chattanooga, TN 37343
Logan's Roadhouse
701 East Stassney Lane
Austin, TX 78745
CommentsRent is $96,800 and part of a large outparcels to mall portfolio and situated on 1.67 acres
Comments
2.07 acre site with rent at $234,477
Close of Escrow: 8/12/16 Sales Price: $1,500,000
Rentable SF: N/A Down Payment: N/A
Year Built: 2002 CAP Rate: 6.45%
Price/SF: $190.00
Close of Escrow: 3/15/16 Sales Price: $3,300,000
Rentable SF: 7,967 Down Payment:
Year Built: 2002 CAP Rate: 7.11%
Price/SF: $414.00
Rentable Square Feet: 7,467 Sales Price: $1,700,000
Year Built: 2007 Down Payment: $1,700,000
CAP Rate: 6.23%
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RECENT SALES
Logan's Ground LeaseLUFKIN, TX
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
RECENT SALES
3Logan's Roadhouse
130 Chandler Road
Dickson, TN 37055
Comments
2.09 acre site with rent at $261,174
Close of Escrow: 11/20/15 Sales Price: $3,602,000
Rentable SF: 6,500 Down Payment:
Year Built: 2009 CAP Rate: 7.25%
Price/SF: $554.00
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RECENT SALES
Logan's Ground LeaseLUFKIN, TX
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
RECENT SALES
Logan's Ground LeaseLUFKIN, TX
DEMOGRAPHIC ANALYSIS
1 Mile 3 Miles 5 Miles
2000 Population 2,874 28,855 42,540
2010 Population 3,302 30,678 45,410
2014 Population 3,311 31,079 46,056
2019 Population 3,413 31,510 46,870
2000 Households 1,240 10,997 15,772
2010 Households 1,346 11,458 16,657
2014 Households 1,354 11,653 16,951
2019 Households 1,399 11,884 17,366
2014 Average Household Size 2.51 2.60 2.65
2014 Daytime Population 4,036 20,278 25,775
2000 Owner Occupied Housing Units 54.45% 56.82% 59.18%
2000 Renter Occupied Housing Units 37.09% 34.81% 32.25%
2000 Vacant 8.46% 8.37% 8.58%
2014 Owner Occupied Housing Units 54.34% 56.81% 58.55%
2014 Renter Occupied Housing Units 45.66% 43.19% 41.45%
2014 Vacant 8.52% 8.76% 9.02%
2019 Owner Occupied Housing Units 54.21% 56.91% 58.52%
2019 Renter Occupied Housing Units 45.79% 43.09% 41.48%
2019 Vacant 8.61% 8.74% 9.04%
$ 0 - $14,999 11.9% 15.9% 16.0%
$ 15,000 - $24,999 15.1% 14.9% 15.3%
$ 25,000 - $34,999 13.7% 13.1% 13.7%
$ 35,000 - $49,999 20.1% 15.6% 16.2%
$ 50,000 - $74,999 18.4% 16.8% 16.4%
$ 75,000 - $99,999 9.9% 9.9% 9.5%
$100,000 - $124,999 5.5% 6.0% 5.6%
$125,000 - $149,999 3.4% 3.1% 2.9%
$150,000 - $199,999 1.2% 2.1% 1.9%
$200,000 - $249,999 0.3% 1.1% 1.0%
$250,000 + 0.7% 1.7% 1.6%
2014 Median Household Income $39,515 $40,325 $39,046
2014 Per Capita Income $22,503 $22,902 $21,626
2014 Average Household Income $54,319 $60,079 $57,860
Demographic data © 2012 by Experian.
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DEMOGRAPHIC ANALYSIS
Logan's Ground LeaseLUFKIN, TX
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
DEMOGRAPHIC REPORT
Geography: 5 miles
Population
In 2014, the population in your selected geography is 46,056. The population has changed by 8.26% since 2000. It is estimated that
the population in your area will be 46,870 five years from now, which represents a change of 1.76% from the current year. The
current population is 47.64% male and 52.35% female. The median age of the population in your area is 34.2, compare this to the
Entire US average which is 37.3. The population density in your area is 586.66 people per square mile.
Households
There are currently 16,951 households in your selected geography. The number of households has changed by 7.47% since 2000. It
is estimated that the number of households in your area will be 17,365 five years from now, which represents a change of 2.44%
from the current year. The average household size in your area is 2.65 persons.
Income
In 2014, the median household income for your selected geography is $39,046, compare this to the Entire US average which is
currently $51,972. The median household income for your area has changed by 14.44% since 2000. It is estimated that the median
household income in your area will be $46,278 five years from now, which represents a change of 18.52% from the current year.
The current year per capita income in your area is $21,626, compare this to the Entire US average, which is $28,599. The current
year average household income in your area is $57,859, compare this to the Entire US average which is $74,533.
Race & Ethnicity
The current year racial makeup of your selected area is as follows: 60.86% White, 22.43% Black, 0.02% Native American and 1.52%
Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and
5.02% Asian/Pacific Islander.
People of Hispanic origin are counted independently of race. People of Hispanic origin make up 25.07% of the current year
population in your selected area. Compare this to the Entire US average of 17.13%.
Housing
In 2000, there were 10,208 owner occupied housing units in your area and there were 5,562 renter occupied housing units in your
area. The median rent at the time was $379.
Employment
In 2014, there are 25,775 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed
that 52.58% of employees are employed in white-collar occupations in this geography, and 46.98% are employed in blue-collar
occupations. In 2014, unemployment in this area is 6.39%. In 2000, the average time traveled to work was 19.0 minutes.
Demographic data © 2012 by Experian.
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DEMOGRAPHIC ANALYSIS
Logan's Ground LeaseLUFKIN, TX
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
SUMMARY REPORT
Number of people living in a given area per square mile.
Demographic data © 2012 by Experian.
17
DEMOGRAPHIC ANALYSIS
Logan's Ground LeaseLUFKIN, TX
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
POPULATION DENSITY
The number of people employed in a given area per square mile.
Demographic data © 2012 by Experian.
18
DEMOGRAPHIC ANALYSIS
Logan's Ground LeaseLUFKIN, TX
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
EMPLOYMENT DENSITY
Average income of all the people 15 years and older occupying a
single housing unit.
Demographic data © 2012 by Experian.
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DEMOGRAPHIC ANALYSIS
Logan's Ground LeaseLUFKIN, TX
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
AVERAGE HOUSEHOLD INCOME
Two-way, average daily traffic volumes.Traffic Count data © 2012 by TrafficMetrix. All rights reserved.
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DEMOGRAPHIC ANALYSIS
Logan's Ground LeaseLUFKIN, TX
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 ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 X0060863 Marcus & Millichap. All rights reserved.
TRAFFIC COUNTS
* Traffic Count Estimate
LUFKIN, TX
OFFERING MEMORANDUM
Logan's Ground Lease
Offices Throughout the U.S. and Canada
www.MarcusMillichap.com
Exclusively Listed By:
Blake BurnettAssociate Vice President Investments
Associate Director, National Retail GroupDallas Office
License: TX: 559323Tel: (972) 755-5244Fax: (972) 755-5210
[email protected]/BlakeBurnett