mm forsale burger kingspartanburgsc · 2016. 3. 30. · carrols llc is headquartered in syracuse,...

SPARTANBURG, SC

Burger King

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.

SPARTANBURG, SC

Burger King

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

Burger KingSPARTANBURG, SC

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.

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RECENT SALES

Section 4 ON MARKET COMPARABLES

Section 5 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

Burger King


PRICING AND FINANCIAL ANALYSIS

1



Existing Financing

Loan Type Free and Clear

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. © 2014 Marcus &Millichap. All rights reserved.

FINANCING

Annualized Operating Data

2

106 Sha LaneSpartanburg, SC 29307

Price $825,000

Down Payment 100% / $825,000

Rentable Square Feet 4,600

Price/SF $179.35

CAP Rate 8.73%

Year Built 1992

Lot Size 1.3

Type of Ownership Fee Simple

Location



Base Rent ($15.65/SF) $72,000

Net Operating Income $72,000

Total Return 8.73% / $72,000

Tenant Trade Name Burger King

Ownership Public

Tenant Franchisee

Lease Guarantor Franchisee Guarantee

Lease Type Triple Net (NNN)

Roof and Structure Tenant Responsible

Lease Term 20-years

Lease Commencement Date July 1, 2005

Rent Commencement Date July 1, 2005

Lease Expiration Date July 1, 2017

Term Remaining on Lease 3+ years

Increases Per Sale Increase

Options Four 5-year


Tenant Summary

FINANCIAL OVERVIEW

Burger King Rent is the greater of $72,000 per year or 6.5%

of the gross sales.

3




Property Name Burger King

Property Address 106 Sha Lane

Spartanburg, SC 29307

Property Type Net Leased Restaurant Fast Food


Tenant Trade Name Burger King

Ownership Public

Tenant Franchisee

Sales Volume

Net Worth

Lease Guarantor Franchisee Guarantee

Credit Rating

Valueline Financial Strength

Rating Agency

Stock Symbol

Board

Rank

Lease Commencement Date July 1, 2005

Rent Commencement Date July 1, 2005

Lease Expiration Date July 1, 2017

Term Remaining on Lease 3+ years

Lease Type Triple Net (NNN)

Roof and Structure Tenant Responsible

Lease Term 20-years

Year 1 Net Operating Income

Increases Per Sale Increase

Options to Renew Four 5-year

Options to Terminate No

Options to Purchase No

First Right of Refusal No

No. of Locations 580+

Headquartered Syracus, NY

Web Site

Franchisee Profile

Years in the Business Since 1976

Other Concepts Owned

TENANT OVERVIEW

Carrols LLC is headquartered in Syracuse, New York and is Burger King Corporation’s largest franchisee and one of the largest restaurant

companies in the United States. Carrols LLC’s indirect parent company, Carrols Restaurant Group, Incorporated. (NASDAQ: TAST), is one the only

publicly traded company solely controlling Burger King Franchises. Carrols owns and operates over 580 BURGER KING® restaurants and has

operated Burger King restaurants since 1976.


PROPERTY DESCRIPTION

Marcus&Millichap is pleased to present the exclusive listing for 106 Sha Lane, Sppartanburg South Carolina. This outstanding investment is the unique opportunity to own a Burger King quick-service restaurant operated y the largest Franchisee of Burger Kings within the Burger King System. This Burger Kings comprised of roughly 3,000 square feet and sits on approximately 1.29 acres of prime land.

Included in the sale is an additional 1,600 square feet dark convenience store / gas station.

Burger King is paying $72,000/yr or 6.5% of sales, whichever is greater.

The property is the first property as you exit off I-85 at Highway 221.

Spartanburg is approximately 70 miles west of Charlotte, 160 miles north east of Atlanta and 105 miles north of Augusta.

Area retailers include a variety of fast food, gas and convenience stores including Wendy’s, McDonald’s, Waffle House, Arby’s and Ingles Supermarket among others.

Operator is the largest franchisee of Burger King System with over 580 locations.

Investment Highlights

■ First Restaurant off Interstate 85 Exit

■ Over 110,000 Average Daily Traffic on I-85

■ Very active location with Major Gas, Restaurants and Hotels

■ Largest Franchisee of the Burger King System

■ Triplenet Leased with No landlord responsibilities

■ Value add opportunity with 1,600 SF additional space

5




INVESTMENT OVERVIEW

This is a triple net lease. Landlord has absolutely no maintenance, repair or replacement responsibility for the building or land, such responsibility being solely that of the tenant. Tenant pays taxes directly and insures theproperty at no cost to landlord.

6




INVESTMENT OVERVIEW

7



The Offering

Property Burger King

Property Address 106 Sha Lane


Site Description

Year Built 1992


Lot Size 1.3

Type of Ownership Fee Simple


PROPERTY SUMMARY

8




TENANT'S OVERVIEW

TENANT OVERVIEW | CARROLS RESTAURANT GROUP, INC.

Headquartered in Syracuse, New York, Carrols ,LLC is Burger King Corporation’s largest franchisee and one of the largest restaurant companies in the United States.

Carrols Restaurant Group, Inc. (Nasdaq:TAST), the indirect parent company of Carrols LLC is the only publicly traded franchisee of solely Burger King restaurants.

Carrols Corporation is proud to be a franchisee of Burger King Corporation. Carrols' excellent record in the restaurant industry, combined with the strength of the Burger King brand, offers prospective employees a rewarding career opportunity.

Carrols owns and operates more than 580 restaurants under the Burger King brand. Carrols operates in 13 states and employs over 17,000 people.

On August 22, 2014, Carrols announced it signed definitive agreements to purchase 64 Burger King restaurants from certain subsidiaries of Heartland Food LLC for a total cash purchase of approximately $18.0 million excluding inventory. The restaurants to be acquired are located in or around the following markets: Nashville, TN, Springfield, IL, Terre Haute, IN, Evansville, IN, and other nearby markets.

Daniel T. Accordino, the Company's Chief Executive Officer said, "The consummation of this transaction will expand our footprint to a number of markets contiguous to our existing operations and is consistent with our stated strategy to enhance shareholder value through our expanding ownership within the BURGERKING® system. Since our stock offering earlier this year we have completed the acquisition of 29 BURGERKING® restaurants, and the expected closing of this transaction will bring our total 2014 acquisitions to almost 100 restaurants. We also continue to evaluate additional opportunities.“

For the full article, please visit: http://investor.carrols.com.

9




PROPERTY PHOTOS

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PROPERTY PHOTOS

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PROPERTY PHOTOS

12




PROPERTY PHOTOS

Local Map Regional Map

13




AREA MAPS

14




SITE PLAN

15




AERIAL PHOTO

16




AREA PHOTOS

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AREA PHOTOS


RECENT SALES

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2)

3)

4)

5)

6)

Burger King

Burger King- Chattanooga TN

Burger King- Pontotoc MS

Burger King- Kinston NC

Burger King- Corinth MS

Burger King- Valdosta GA

Burger King- Travelers Rest SC

19

RECENT SALES



RECENT SALES MAP

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Subject BurgerKing-

ChattanoogaTN

BurgerKing-

PontotocMS

BurgerKing-

KinstonNC

BurgerKing-

CorinthMS

BurgerKing-

ValdostaGA

BurgerKing-

TravelersRestSC

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Subject BurgerKing-

ChattanoogaTN

BurgerKing-

PontotocMS

BurgerKing-

KinstonNC

BurgerKing-

CorinthMS

BurgerKing-

ValdostaGA

BurgerKing-

TravelersRestSC

Average Price per Square Foot

20

RECENT SALES


Average Cap Rate


CAP RATE AND PRICE PER SQUARE FOOT

1

2

Subject Property

Burger King

106 Sha Lane


Burger King- Chattanooga TN

4827 Hixson Pike

Hixson, TN 37343

Burger King- Pontotoc MS

207 Highway 15 North

Pontotoc, MS 38863

Comments•Burger King in Chattanooga (Hixson), TN

•Fourteen Year Absolute NNN Lease | 100% No Landlord Responsibilities

•10% Increases Every 5-Years During Lease & Options

Comments

•Absolute 20-Year (NNN) Lease

•20 Years Remaining on Initial Term

•2.5 Percent Annual Rental Increases Starting In Year Six

Close of Escrow: 5/8/2013 Sales Price: $1,162,974

Rentable SF: 2,607 Down Payment: 100%

Year Built: 2008 CAP Rate: 6.25%

Price/SF: $356.86

Close of Escrow: 5/16/2014 Sales Price: $579,000



Price/SF: $155.56

21

Rentable Square Feet: 4,600 Sales Price: $825,000

Year Built: 1992 Down Payment: $825,000

CAP Rate: 8.73%

Price/SF: $179.35

RECENT SALES



RECENT SALES

3

4

5

Burger King- Kinston NC

2015 West Vernon Avenue

Kinston, NC 28504

Burger King- Corinth MS

1105 Cass Street

Corinth, MS 38834

Burger King- Valdosta GA

2007 West Hill Avenue

Valdosta, GA 31601

Comments

•2 Percent Annual Increases

•Absolute NNN Lease with no Landlord Responsibility

•Prime Location with Significant Potential

Comments

■ 20-Year Triple-Net (NNN) Lease

■ 7.5 Percent Rental Increases Every Five Years

■ Franchisee Operator

Comments

■ Located on a Strong Retail Corridor

■ Out Parcel to Vernon Park Mall

■ Close to Many Parks and Recreational Facilities

■ Near the North Carolina Global TransPark



Year Built/Renovated: 1988/2013 CAP Rate: 6.00%

Price/SF: $324.40

22




Price/SF: $365.83

RECENT SALES



RECENT SALES



Year Built/Renovated: 1985/2008 CAP Rate: 8.25%

Price/SF: $501.22

6Burger King- Travelers Rest SC

6417 State Park Road

Travelers Rest, SC 29690

Comments•Brand New 20-Year Triple-Net (NNN) Sale-Leaseback

•Long Standing Burger King Location

•1 Percent Annual Increases Starting Year 11




Price/SF: $556.83

23

RECENT SALES



RECENT SALES


ON MARKET COMPARABLES

1)

2)

3)

4)

5)

Burger King

Burger King- Cheraw SC

Burger King- Lillington NC

Burger King- Fayetteville NC


Burger King- Roxboro NC

25




ON MARKET COMPARABLES MAP

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Subject BurgerKing-

CherawSC

BurgerKing-

LillingtonNC

BurgerKing-

FayettevilleNC

BurgerKing-

FayettevilleNC

BurgerKing-

RoxboroNC

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Subject BurgerKing-

CherawSC

BurgerKing-

LillingtonNC

BurgerKing-

FayettevilleNC

BurgerKing-

FayettevilleNC

BurgerKing-

RoxboroNC

Average Price per Square Foot

26



Average Cap Rate


CAP RATE AND PRICE PER SQUARE FOOT

1

Subject Property

2

Burger King

106 Sha Lane


Burger King- Cheraw SC

1014 Chesterfield Highway

Cheraw, SC 29520

Burger King- Lillington NC

1601 South Main Street

Lillington, NC 27546

Comments

Freestanding Single-Tenant Building Located in Walmart Outparcel

Comments

■ Absolute 20-Year Triple-Net (NNN) Lease

■ Subleased to Carrols, LLC

■ Percentage Rent Increases

Status: On Market List Price: $1,285,714



Price/SF: $414.07




Price/SF: $364.57

27

Rentable Square Feet: 4,600 List Price: $825,000

Year Built: 1992 Down Payment: $825,000

CAP Rate: 8.73%

Price/SF: $179.35





5

4

3Burger King- Fayetteville NC

2117 Cedar Creek Road

Fayetteville, NC 28312


7011 Raeford Road

Fayetteville, NC 28304

Burger King- Roxboro NC

231 South Madison

Roxboro, NC 27573

Comments

■ Absolute 20-Year Triple-Net (NNN) Lease



Comments

■ 20-Year Triple-Net "NNN" Lease

■ Every Five Years, 5 Percent Rental Increases

■ Tenant Recently Signed Brand New 20-Year Lease

Comments

■ Absolute 20-Year Triple- Net (NNN) Lease






Price/SF: $302.82




Price/SF: $359.59

28





Price/SF: $611.65





DEMOGRAPHIC ANALYSIS

1 Mile 5 Miles 10 Miles

2000 Population 591 47,438 152,304

2010 Population 519 52,047 164,508

2013 Population 522 52,835 167,560

2018 Population 506 54,828 173,149

2000 Households 220 19,423 59,335

2010 Households 223 21,154 64,136

2013 Households 224 21,519 65,439

2018 Households 221 22,584 68,223

2013 Average Household Size 2.28 2.33 2.47

2013 Daytime Population 1,367 31,226 82,107

2000 Median Housing Value $0 $93,977 $90,081

2000 Owner Occupied Housing Units 62.38% 60.53% 61.15%

2000 Renter Occupied Housing Units 32.54% 30.27% 29.87%

2000 Vacant 9.46% 8.30% 8.83%



2013 Vacant 7.27% 9.79% 10.48%



2018 Vacant 7.16% 9.90% 10.62%

$ 0 - $14,999 4.8% 16.3% 16.9%

$ 15,000 - $24,999 16.0% 14.7% 14.1%

$ 25,000 - $34,999 19.5% 11.4% 12.9%

$ 35,000 - $49,999 8.8% 14.1% 13.7%

$ 50,000 - $74,999 25.6% 20.7% 19.5%

$ 75,000 - $99,999 17.3% 10.2% 10.3%

$100,000 - $124,999 3.5% 5.7% 5.8%

$125,000 - $149,999 1.6% 2.4% 2.7%

$150,000 - $199,999 2.8% 2.3% 2.2%

$200,000 - $249,999 0.1% 0.8% 0.8%

$250,000 + 0.3% 1.4% 1.2%

2013 Median Household Income $50,896 $43,591 $41,290

2013 Per Capita Income $24,282 $24,588 $22,593

2013 Average Household Income $56,133 $58,568 $56,888

Demographic data © 2012 by Experian.

30




DEMOGRAPHIC REPORT

Geography: 10 miles

Population

In 2013, the population in your selected geography was 167,560. The population has changed by 10.01% since 2000. It is estimated

that the population in your area will be 173,149 five years from now, which represents a change of 3.33% from the current year. The

current population is 47.7% male and 52.2% female. The median age of the population in your area is 37.2, compare this to the U.S.

average which is 37. The population density in your area is 514.69 people per square mile.

Households

There are currently 65,439 households in your selected geography. The number of households has changed by 10.28% since 2000.

It is estimated that the number of households in your area will be 68,223 five years from now, which represents a change of 4.25%

from the current year. The average household size in your area is 2.46 persons.

Income

In 2013, the median household income for your selected geography is $41,290, compare this to the U.S. average which is currently

$53,535. The median household income for your area has changed by 13.91% since 2000. It is estimated that the median household

income in your area will be $48,304 five years from now, which represents a change of 16.98% from the current year.

The current year per capita income in your area is $22,593, compare this to the U.S. average, which is $28,888. The current year

average household income in your area is $56,888, compare this to the U.S. average which is $75,373.

Race & Ethnicity

The current year racial makeup of your selected area is as follows: 66.68% White, 25.57% African American, 0.30% Native American

and 2.49% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.20% White, 12.65% African American, 0.96%

Native American and 5.01% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 6.83% of the current year

population in your selected area. Compare this to the U.S. average of 16.55%.

Housing

The median housing value in your area was $90,081 in 2000, compare this to the U.S. average of $110,781 for the same year. In

2000, there were 39,803 owner occupied housing units in your area and there were 19,444 renter occupied housing units in your

area. The median rent at the time was $406.

Employment

In 2013, there are 82,107 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed

that 53.2% of employees are employed in white-collar occupations in this geography, and 46.7% are employed in blue-collar

occupations. In 2013, unemployment in this area is 4.70%. In 2000, the median time traveled to work was 18.7 minutes.


31




SUMMARY REPORT

Number of people living in a given area per square mile.


32




POPULATION DENSITY

The number of people employed in a given area per square mile.


33




EMPLOYMENT DENSITY

Average income of all the people 15 years and older occupying a

single housing unit.


34




AVERAGE HOUSEHOLD INCOME

35




TRAFFIC COUNTS

SPARTANBURG, SC

OFFERING MEMORANDUM

Burger King

Offices Throughout the U.S. and Canada

www.MarcusMillichap.com

mm forsale burger kingspartanburgsc · 2016. 3. 30. · carrols llc is headquartered in syracuse,...

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