net leased single tenant investment offering€¦ · wendys restaurant 3990 hwy 61 south ~ memphis,...
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NET LEASED SINGLE TENANT INVESTMENT OFFERING
WENDY’S FAMILY RESTAURANT 3990 Hwy. 61 South
Memphis, Tennessee 38109
EXCLUSIVELY LISTED BY: FRANCIS GONZAGA
NEA California Group, Inc. D i r e c t : 8 1 8 - 6 4 8 - 3 0 8 0
F a x : 8 1 8 - 9 0 7 - 5 6 5 0 f g o n z a g a @ s o c a l . r r . c o m
NEA California Group, Inc.
WENDYS RESTAURANT
3990 Hwy 61 South ~ Memphis, TN 38109
The information provided in this overview is strictly confidential and is the property of NEA California Group, Inc. Due to the commercial value of the information, this overview is not to be made available to any other person or entity without the consent of NEA California Group, Inc.
This overview has been prepared to provide information to a prospective Purchaser. It does not purport to present all material facts or complete information concerning the subject property. Additionally, this overview is not intended to be a substitute for a thorough investigation and the disclosure of all material facts concerning the subject property by the Purchaser.
NEA California Group, Inc. makes no warranty or representation with respect to the financial condition or business prospects of any tenant or any tenant’s plans or intentions to continue to renew its occupancy at the subject property.
All market analysis projections are provided for general reference purposes only and are based upon assumptions relating to the general economy, competition and other market conditions. The information contained in this overview has been obtained from sources we believe to be reliable. However, NEA California Group, Inc has not conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.
FRANCIS GONZAGA NEA California Group, Inc.
17418 Chatsworth Street Suite 201
Granada Hills, CA 91344 Direct: 818-648-3080 Fax: 818-907-5650
Email: [email protected]
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WENDYS RESTAURANT 3990 Hwy 61 South ~ Memphis, TN 38109
SUBJECT PROPERTY: WENDY’S RESTAURANT PROPERTY ADDRESS: 3990 Hwy 61 South CITY, STATE, ZIP CODE: Memphis, Tennessee 38109 PARCEL ID: 076034-000730 TAX MAP PAGE: 194H STORY: SINGLE TYPE: RETAIL PAD /FAST FOOD YEAR BUILT: 1993 BLDG. SQFT.: 2,998 LOT SIZE: 0.860 AC
INVESTMENT HIGHLIGHTS
NEA California Group, Inc.
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NNN Lease – Zero Landlord Responsibilities
Four 5 Year Options to Renew
2% Annual Rental Increases
Strong Tenant – high sales
Owns & Operates over 250 restaurants in
twelve (12) states
Excellent Location – high traffic count
Excellent Mix of Surrounding Tenants including Kohls, Walgreens, Family Dollar, Sears, Walmart Super Center, Jack in the Box, KFC, Taco Bell, Mc Donalds, Church’s, and Subway
WENDYS RESTAURANT 3990 Hwy 61 South ~ Memphis, TN 38109
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NEA California Group, Inc.
WENDYS RESTAURANT 3990 Hwy 61 South ~ Memphis, TN 38109
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NEA California Group, Inc.
WENDYS RESTAURANT 3990 Hwy 61 South ~ Memphis, TN 38109 NEC of Hornlake & Hwy 61 South
Southbound Hwy 61 South Northbound Hwy 61 South
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NEA California Group, Inc.
WENDYS RESTAURANT 3990 Hwy 61 South ~ Memphis, TN 38109
Memphis is a city in the southwestern corner of the U.S. state of Tennessee, and the county seat of Shelby County.Memphishadapopulationof655,155in2012,makingitthelargestcityinthestateofTennessee,thelargestcityontheMississippi River, the third largestin the Southeastern United States,and the 20th largest in the UnitedStates. The greater Memphismetropolitan area, includingadjacentcountiesinMississippiandArkansas,hada2010populationof1,316,100.ThismakesMemphisthesecond‐largestmetropolitanareainTennessee, surpassed only bymetropolitanNashville.MemphisistheyoungestofTennessee'smajorcities.
DowntownMemphisrisesfromabluffalongtheMississippiRiver,andthecity's urban area sprawls outward over southwest Tennessee and intonorthern Mississippi and eastern Arkansas. Several large parks arescatteredthroughthecity,notablyOvertonParkinMidtownandthe4,500acres Shelby Farms. The city is a national transportation hub andMississippi River crossing for Interstate 40 (east‐west), Interstate 55(north‐south), barge traffic, Memphis International Airport (FedEx's"SuperHub"facility)andnumerousfreightrailroadsthatservethecity.
In2013,ForbesMagazinerankedMemphisasoneofthetop15citiesintheUnitedStateswithan"emergingdowntown”area.Alsoin2013,USAToday
readers voted Beale Street as America's Best Iconic Street andGraceland as the Best Iconic AmericanAttraction. TheNationalCivilRightsMuseum(theLorrraineMotel,thesiteofM.L.King'sassassination)placedthirdinthepoll.
The city's central location has led tomuch of its businessdevelopment. Located on the Mississippi River andintersected by five major freight railroads and twoInterstate Highways, I‐40 and I‐55, Memphis is ideallylocated for commerce in the transportation and shippingindustry.Athirdinterstate,I‐69,isunderconstruction,andafourth,I‐22,hasrecentlybeendesignatedfromtheformerHigh Priority Corridor X. River barges are unloaded ontotrucksandtrains.ThecityishometoMemphisInternationalAirport,theworld'ssecondbusiestcargoairport(followingHong Kong), which serves as a primary hub for FedExExpressshipping.
Memphis is the home of three Fortune 500 companies:FedEx, AutoZone, and International Paper. Other majorcorporations based in Memphis include Allenberg Cotton,American Residential Services, Baker, Donelson, Bearman,Caldwell&Berkowitz,CargillCotton,CityGear,FirstHorizonNational Corporation, Evergreen Packaging, Fred's, GTx,Guardsmark, Lenny's Sub Shop, Perkins Restaurant andBakery,ServiceMaster,Thomas&Betts,TrueTemperSports,VarsityBrands, andVerso Paper. Corporationswithmajor operations based inMemphis include Carrier,Merck& Co.,Medtronic,SharpManufacturing,Smith&Nephew,andTechnicolorHomeEntertainmentServices.Gibsonguitars,basedinNashville,hasafactoryinMemphis,nearBealeSt.andtheFedExcenter.TheFederalReserveBankofSt.Louisalsohasabranch in Memphis. Kruger Products, manufacturer of White Cloud tissue products, operates the largest tissuemanufacturingfacilityunderoneroofintheMemphisarea.
*Source: Wikipedia
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WENDYS RESTAURANT 3990 Hwy 61 South ~ Memphis, TN 38109
Wendy'sisaninternationalfastfoodchainrestaurantfoundedbyDaveThomas onNovember 15, 1969, in Columbus,Ohio, UnitedStates. The companymoved its headquarters toDublin, Ohio, onJanuary 29, 2006. As of March 1999, Wendy's was the world'sthirdlargesthamburgerfastfoodchainwithapproximately6,650locations, following Burger King' 12,000+ locations andMcDonald's' 31,000+ locations. OnApril 24, 2008, the companyannounced amerger with Triarc, the parent company of Arby's.Despite the new ownership, Wendy's headquarters remained inDublin.[4]Previously,Wendy'shadrejectedmorethantwobuyoutoffers from Triarc Companies Inc. Following the merger, Triarcbecame known as Wendy's/Arby's Group, a publicly tradedcompany.
Approximately77%ofWendy'srestaurantsarefranchised,themajorityofwhicharelocatedinNorthAmerica.Wendy'sanditsaffiliatesemploymorethan46,000peopleinitsglobaloperations.Infiscalyear2006,thefirmhad$2.469billion(USD) in total sales.[5]WhileWendy's sets standards forexterior storeappearance, foodqualityandmenu, individualownershavecontroloverhoursofoperations,interiordecor,pricingandstaffuniformsandwages.
Wendy'smenu consists primarily of hamburgers, chickensandwiches, French fries and beverages, including theFrosty. Unlike Burger King andMcDonald's, the companydoesnothaveasignaturesandwich,suchastheBigMacortheWhopper.Instead,ithastheDave'sHot'NJuicy1/4lb.Single (introduced in 2011 as a reworking of thelongstandingWendy'sSingle),asquare‐pattyburgermadewith fresh ground beef rather than round frozen patties.Wendy's uses these square hamburger patties as itssignatureitem.
Founded: Columbus,Ohio,UnitedStates(November15,1969)
Headquarters: Dublin,Ohio
Locations: 6,537stores(January2017)
Ownership: Public
S&PRating: B+
Board/Symbol: NASDAQ/WEN
Revenue: Approx..1.4billionUSD(2016)
Employees: 21,200(2015)
Website: www.wendy's.com
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NEA California Group, Inc.
WENDYS RESTAURANT 3990 Hwy 61 South ~ Memphis, TN 38109
Meritage Hospitality Group Inc. (Meritage) is a progressive, dynamic company, drivingstrategic growth in the competitive culinary market. Each of our concepts delivers adistinctivediningexperienceforourguests,aworkenvironmentrichwithopportunityforourteammembers&optimumresultsforitsstakeholders.MeritageHospitalityGroup Inc. (Meritage), incorporatedonAugust8, 1986, conducts its business operations in the quick‐service andcasualdiningrestaurantindustries.TheCompanyoperatesWendy'srestaurants within the quick‐service restaurant industry. Meritagealso owns and operates casual dining restaurants in Michiganthrough brands, including Twisted Rooster, Crooked Goose andFreighters Eatery & Taproom. As of May 18, 2017, the Companyoperated 250 restaurants across Arkansas, Florida, Georgia, Michigan, Missouri,Mississippi,NorthCarolina,SouthCarolina,Ohio,Oklahoma,TennesseeandVirginia.Wendy'srestaurantsofferadiversemenuoffooditemsfeaturinghamburgersandchickenbreast sandwiches, all of which are prepared to order with the customer's choice ofcondiments. The Wendy's menu also includes chili, baked and French fried potatoes,chicken nuggets, salads, soft drinks, Frosty desserts and children'smeals. EachWendy'srestaurant also features soft drink products. The Twisted Roostermenu features classicAmerican fare. The Company's Twisted Rooster menu includes steaks, signaturesandwiches,fish,pastaplates,TwistedRooster'ssignaturemacaroniandcheese,fresh‐cutsaladswithsignaturedressingsandhomemadedesserts.Italsooffersarangeofalcoholicbeverages,includingbeer,wineandcocktails.
Therestaurantsservelunchanddinner,andspecial menu items, including seasonalpromotions, daily special selections and aspecial kids menu. Twisted Roosterrestaurants offer curbside takeout. TheCrookedGooseisacornerpubthatfeaturesold‐school pub favorites and offers wings,pizzas,crookedgrilledcheesesandburgers.The Freighters restaurants' menu offersappetizers, specialty entrees and desserts,among others. The full‐service bar isstockedwithlocallysourcedlibations,fromcraftbeers,winesandsodas tosmall‐batchliquors. The restaurant serves breakfast,lunch, dinner and room service. It alsoserves as a caterer for the adjoining hotel,and features a range of corporate and
privateeventcateringpackages.
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WENDYS RESTAURANT 3990 Hwy 61 South ~ Memphis, TN 38109
POPULATION MEMPHIS TENNESSEE 2010 646,889 6,346,1052012 654,556 6,454,9142013 646,872 6,495,978GrowthRate 1.2% 2.4%HOUSING MEMPHIS TENNESSEE HousingUnits(2010) 291,883 2,812,133HomeOwnershipRate(2012) 52.1% 68.4%Households(2012) 244,538 2,468,841PersonsperHousehold(2012) 2.6% 2.5%MedianHouseholdIncome $36,817 $44,140BUSINESS MEMPHIS TENNESSEE No.ofBusinesses/Firms 52,144 545,348RetailSales $8,975,228 $77,547,291Accommodation&FoodServiceSales $1,463,050 $10,626,759AGE DISTRIBUTION MEMPHIS TENNESSEE 0‐4 7.6% 6.4%5‐18 26.0% 23.6%19‐64 56.1% 56.6%65+ 10.3% 13.4%MEDIAN AGE MEMPHIS TENNESSEE 2013 33.1 35.9Male/FemaleRatio 47.5%/52.5% 48.7%/51.3%GEOGRAPHY MEMPHIS TENNESSEE LandArea(squaremiles) 315.06 41,234.90PersonsperSquareMiles(2010) 2,053.3 154.9
*Source: U.S. Census Bureau
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WENDYS RESTAURANT 3990 Hwy 61 South ~ Memphis, TN 38109
INVESTMENTSUMMARYListPrice: $1,585,000Bldg.SquareFootage: 2,998 PriceperSqft.: $529CapRate: 9.50%YearBuilt: 1993LotSize: +/‐0.860ACLeaseType: AbsoluteNNNIncreases: 2.0%AnnuallyLeaseExpiration: September2021RenewalOptions: Four5YearOptionswith2.0%AnnualIncreasesLeaseGuarantor: MeritageHospitalityGroup
ANNUALIZEDOPERATINGINFORMATION Month Annual Cap
Oct. 2016 – Sept. 2017 $12,543 $150,512 9.50% Oct. 2017 – Sept. 2018 $12,793 $153,522 9.69% Oct. 2018 – Sept. 2019 $13,049 $156,592 9.88% Oct. 2019 – Sept. 2020 $13,310 $159,724 10.08% Oct. 2020 – Sept. 2021 $13,577 $162,919 10.28%
Tenant has four 5 year options with 2.0% Annual Rental Increases
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NEA California Group, Inc.
WENDYS RESTAURANT 3990 Hwy 61 South ~ Memphis, TN 38109
FRANCIS GONZAGA NEA California Group, Inc. 17418 Chatsworth Street Suite 201 Granada Hills, CA 91344 Direct: 818-648-3080 Fax: 818-907-5650 Email: [email protected]
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