net lease investment services · the lease is absolute net with the tenant responsible for all...

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

201 California Street, Suite 800 / San Francisco, CA 94111 / tel +1 415 781 8100 / fax +1 415 956 3381 / www.thinknnn.com / Cushman & Wakefield / Lic #01880493

Net Lease Investment Services

Popeyes Louisiana KitchenRapid City, South Dakota

Price: $2,725,000 - 6.25% Cap Rate

• 20-Year NNN Lease with 1.50% Annual Increases

• Exceptional Unit Sales - 2X National Average

• Excellent Access to Interstate 90

• Double Drive-Thru

• Over 4 million annual tourists visiting Mt. Rushmore, The Black Hills, Deadwood and Sturgis

File Photograph

For more information, please contact:

Colby Moore+1 415 677 0422 [email protected] LIC #01900405

In association with:

Sandra Runde, CCIM, SIOR+1 605 343 7500 SD LIC 4699



Popeyes Louisiana Kitchen Rapid City, South Dakota

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LOCATION The property is located at 1323 E North Street, Rapid City, South Dakota

LOT SIZE Approximately 1.50 acres – ±65,340 square feet.

IMPROVEMENTS A 2,888± square foot freestanding POPEYES restaurant with double drive-thru.

LEASE Leased to PLATINUM RESTAURANT GROUP, INC., dba POPEYES for 20 years from October 27, 2014 until September 30, 2034. The lease is absolute net with the tenant responsible for all taxes, insurance and maintenance including roof and structure. There is one 5-year option to renew.

ANNUAL INCOME The current annual rent of $170,520 increases by 1.50% annually.

See rent schedule.

PRICE $2,725,000 - 6.25% Cap Rate

RENT PER SQUARE FOOT $58.17 net per year - $4.85 net per month

ABOUT THE TENANT:PLATINUM RESTAURANT GROUP, INC.

PLATINUM RESTAURANT GROUP, INC., was formed in January 2013 by Chris Connelly and Josh Holdinghausen. The company currently owns and operates 3 Marco’s Pizza restaurants in South Dakota with 3 more under development.

Platinum was awarded the right to operate the Popeye’s Louisiana Kitchen franchise in 2013 and was awarded the Silver Shovel Award from Popeyes Louisiana Kitchen, Inc. in 2015.




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AFC ENTERPRISES, INC. Founded in Atlanta in 1992 as AFC ENTERPRISES, INC., the Company is a developer, operator and franchisor of quick-service restaurants under the trade name, Popeyes® Louisiana Kitchen and Popeyes® Chicken & Biscuits. In January 2014, AFC Enterprises, Inc. changed its corporate name to Popeyes Louisiana Kitchen, Inc. and is traded on Nasdaq under the ticker symbol “PLKI”.

The POPEYES® brand was founded in New Orleans, Louisiana in 1972 and is the world’s second largest quick-service chicken concept (based on the number of units). Within the QSR industry, Popeyes distinguishes itself with a unique “New Orleans” style menu that features spicy chicken, chicken tenders, fried shrimp and other seafood, as well as jambalaya, Red Beans and Rice and other regional items. Popeyes is a highly differentiated QSR brand with a passion for its Louisiana heritage and flavorful authentic food.

Popeyes serves food the world craves and is continuing to expand its global reach. As of December 2014, the Company operates and franchises 2,379 Popeyes restaurants in 48 states, the District of Columbia, three territories and 26 foreign countries. Of the 1,805 domestic franchised restaurants, approximately 70% are concentrated in Texas, California, Louisiana, Florida, Illinois, Maryland, New York, Georgia, Virginia and Mississippi. Of the 509 international franchised restaurants, approximately 60% are located in Korea, Canada and Turkey. More than 77% of the company-operated restaurants are concentrated in Louisiana and Tennessee.

For the fiscal year ended December 28, 2014, Popeyes reported total revenues of $235.6 million with net income of $38.0 million and shareholders’ equity of $260.3 million.

For the 10 months ended October 4, 2015, Popeyes reported total revenues of 200 million with net income of $34.5 million compared to $29.2 million and shareholder’s equity of $267 billion.

For more information, visit www.popeyes.com.




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ANNUAL INCOME YEARS ANNUAL RENT RETURN1 $168,000 –

2 (Current) $170,520 6.25%3 $173,078 6.35%4 $175,674 6.45%5 $178,309 6.54%6 $180,984 6.64%7 $183,698 6.74%8 $186,454 6.84%9 $189,251 6.94%10 $192,090 7.05%11 $194,971 7.15%12 $197,895 7.26%13 $200,864 7.37%14 $203,877 7.48%15 $206,935 7.59%16 $210,039 7.71%17 $213,190 7.82%18 $216,387 7.94%19 $219,633 8.06%20 $222,928 8.18%

OPTION YEARS OPTION RENT RETURNOption Year 1 $226,272 8.30%Option Year 2 $229,666 8.43%Option Year 3 $233,111 8.55%Option Year 4 $236,607 8.68%Option Year 5 $240,156 8.81%




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SITE INFORMATION The subject property sits on approximately 1.50 acres of land and is comprised of approximately 2,888 square feet of building space.

The subject property is located at 1323 E North Street, Rapid City, South Dakota. It is well positioned on Business Route 90, which has an average traffic volume of over 25,000 vehicles per day. The subject property is easily accessible via Business Route 90 (E North Street) and Interstate 90.

Nearby tenants include Menards, On the Border, Kmart, Burger King, Taco Bell, KFC, McDonald’s, and Wendy’s.

AREA RETAILERS Rushmore Mall - Anchored by JCPenney, Sears and Herberger’s. Other major retailers include Aeropostale, American Eagle Outfitters, Arby’s, Bath & Body Works, Champs, Charlotte Russe, Chico’s, Eddie Bauer, Famous Footwear, Foot Locker, Fuddruckers, GameStop, GNC, Gymboree, Hobby Lobby, Journey’s, Olive Garden, Payless, Planet Fitness, ProImage Sports, Red Lobster, rue21, Starbucks, Subway, Texas Roadhouse, Torrid, Toys “R” Us, Victoria’s Secret, Vitamin World, Zales and Zumiez.

Rushmore Crossing - The newest shopping center in Rapid City. Major retailers include Target, Gap, dressbarn, Lane Bryant, Bed Bath & Beyond, TJMaxx, Sam’s Club, GameStop, Dollar Tree, Scheel’s, Ulta, OshKosh and Gordman’s.

RAPID CITY, SOUTH DAKOTA Rapid City (population 67,956) is the second-largest city in South Dakota and the county seat of Pennington County. Known as the “Gateway to the Black Hills” and the “City of Presidents”, Rapid City is split by a low mountain ridge that divides the western and eastern parts of the city.

ECONOMYRapid City’s economy is diverse. Rapid City is the center for the manufacture of Black Hills gold jewelry, a popular product with tourists and Westerners in general. Rapid City is also the location of the only manufacturer of stamping machines used for the labeling of plywood and chipboard products.

Tourism is also a major portion of the Rapid City economy, due to the proximity of Mount Rushmore, Sturgis, home of the Sturgis Motorcycle Rally, Deadwood, and other attractions in the Black Hills. Rapid City is the major source of services for the Motorcycle Rally, and the Rally’s demand for motel rooms, camp sites, and other services for tourists during the first week of August means that Rapid City has the capacity to host large conventions and large numbers of tourists year-round. Various minor tourist attractions, including wildlife parks, specialty shops, caves, water parks, private museums, and other businesses are found in and near Rapid City.




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RAPID CITY, SOUTH DAKOTA (CONTINUED)

ECONOMY (CONTINUED)The largest sector of the Rapid City economy is government services, including local, state, and federal. Major employers include Ellsworth Air Force Base (located on the outskirts of the city) home of the 28th Bomb Wing flying the B-1B long-range bomber; the Army National Guard based at Camp Rapid and hosting annual exercises in the Black Hills drawing troops from five to ten states; and various federal agencies including the National Park Service, US Forest Service, and Indian Health Service.

Other economic sectors include financial service and investing companies such as Waddell and Reed, Citibank, WaMu, Merrill Lynch, and Northwestern Mutual. Rapid City is the headquarters for Assurant Insurance’s pre-need division and Rapid City has a strong medical services sector, and institutions of higher education. Rapid City is also the major market town for much of five states, drawing commerce from more than half of South Dakota, and large portions of North Dakota, Montana, Wyoming, and the Nebraska Panhandle.

TRANSPORTATIONRapid City is a major transportation hub for the Northern Plains. Rapid City Regional Airport (RAP) provides flights to the airline hub cities of Denver, Minneapolis, Salt Lake City, Dallas-Fort Worth, Las Vegas, Phoenix/Mesa, Houston, Atlanta and Chicago.

Interstate 90 (I-90) is the primary east-west route for Rapid City. Rapid City is served by a series of 7 exits. I-90 skims the northern side of Rapid City. US Highway 16 is the main route to the southwest and the Black Hills from Rapid City. It links Rapid City to Custer and then west to Newcastle, Wyoming, where it connects to US Highway 85 for travel to Cheyenne and Denver. South Dakota Highway 44 is a state highway that links the interior of the Black Hills to the southwest of Rapid City, and the Pine Ridge Indian Reservation and nearby areas in the Great Plains to the southeast.

NOTE The information set forth herein has been received by us from sources we believe to be reliable, but we have made no independent investigation of the accuracy or completeness of the information and make no representations with respect thereto. The above is submitted subject to errors, prior sale or lease, change in status, or withdrawal without notice.

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2015 Summary 5 miles 10 miles 15 miles

Population 73,555 106,884 115,316Households 30,786 43,618 47,057Families 18,155 27,726 30,335Average Household Size 2.31 2.38 2.38Owner Occupied Housing Units 17,388 27,004 29,893Renter Occupied Housing Units 13,398 16,614 17,164Median Age 34.8 35.5 36.2Median Household Income $42,840 $47,936 $49,225Average Household Income $54,565 $64,471 $65,776

2020 Projected Summary

Population 78,214 114,261 123,489Households 32,979 46,951 50,741Families 19,281 29,643 32,500Average Household Size 2.30 2.37 2.37Owner Occupied Housing Units 18,605 29,051 32,230Renter Occupied Housing Units 14,374 17,900 18,511Median Age 35.3 36.2 36.9Median Household Income $50,879 $55,972 $57,361Average Household Income $63,441 $74,829 $76,304

Trends: 2015-2020 Annual Rate

Population 1.24% 1.34% 1.38%Households 1.39% 1.48% 1.52%Families 1.21% 1.35% 1.39%Owner Households 1.36% 1.47% 1.52%Median Household Income 3.50% 3.15% 3.11%

net lease investment services · the lease is absolute net with the tenant responsible for all...

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