offering memorandum 15-year absolute-net (nnn) … · demographic analysis. rent increases monthly...

1821 N SUPERIOR AVE, TOMAH, WISCONSIN 54660

15-Year Absolute-Net (NNN) Sale-LeasebackOFFERING MEMORANDUM

ACTUAL PHOTO

CON F I DE N T I A L I T Y A N D DI S C L A I M E R

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.

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.

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) 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 M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

NON-ENDORSEMENT NOTICE

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

N E T L E A S E DI S C L A I M E R

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.

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.

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.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.

EXCLUSIVELY LISTEDEXCLUSIVELY LISTED BY:

OFFICES NATIONWIDEwww.marcusmillichap.com

GABRIEL BRITTI First Vice President Investments Senior Director, National Retail GroupMIAMI OFFICEOffice: (786) [email protected]

RONALD ISSENBERG First Vice President Investments Senior Director, National Retail GroupMIAMI OFFICEOffice: (786) [email protected]

TABLE OF CONTENTS EXECUTIVE SUMMARY......................... FINANCIAL ANALYSIS.........................

RESEARCH..........................................

DEMOGRAPHIC ANALYSIS..................

EXECUTIVE SUMMARY

7This 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 of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap Y0390891

EXECUTIVE SUMMARY

■ TRAFFIC COUNTS EXCEED 17,000 CARS PER DAY

■ 15-YEAR ABSOLUTE-NET LEASE WITH 4, FIVE-YEAR OPTIONS

■ 16 UNIT GUARANTOR

■ AVERAGE HOUSEHOLD INCOME IS OVER $76,000 IN ONE MILE RADIUS

■ ABSOLUTE-NET - NO LANDLORD RESPONSIBILITIES

■ STRATEGICALLY LOCATED NEAR INTERSTATE 94

INVESTMENT HIGHLIGHTS

INVESTMENT OVERVIEW

Marcus & Millichap is pleased to present this free standing Pizza Hut located in Tomah, Wisconsin, including 1,619 rentable square feet on a large 2.18 acre parcel.

This offering affords an investor the opportunity to acquire fee simple ownership in this 2016 renovated Pizza Hut with a new 15-year Absolute Net lease with four, 5-year option periods. This is a true Triple Net Lease with zero landlord responsibilities. The lease guarantor operates 16 locations. .

It is conviently situated within a mile of LaGrange Public School, Tomah VA Medical Center, Walmart Supercenter, Marcus Ho-Chunk Cinema, in addition to a number of hotels; Hampton Inn, Econo Lodge, Quality Inn and Cranberry Inn. The area also benefits from a multitude of National Tenants including; Aldi, Dollar Tree, Starbucks, Arby’s, Subway, Dunkin Donuts, Advance Auto Parts and BP to name a few.

The city is surrounded by the Town of Tomah and the Town of La Grange. Much of the city’s commercial, retail, and residential development over the last 40 years has occurred in the northern half of the city; one of the highlights being Walmart Distribution Center, a significant economic driver in the region.

EXECUTIVE SUMMARY FINANCIAL ANALYSIS RESEARCH DEMOGRAPHIC ANALYSIS

RENT INCREASES MONTHLY RENT ANNUAL RENT

Years 1 - 5 $5,000 $60,000

Year 6 - 10 $5,250 $63,000

Years 11 - 15 $5,513 $66,150

Option 1 $5,788 $69,458

Option 2 $6,078 $72,930

Option 3 $6,381 $76,577

Base Rent ( $37.06 / SF ) $60,000.00

NET OPERATING INCOME $60,000

TOTAL ANNUAL RETURN CAP 6.25% $60,000

PROPERTY RENT DATA

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 of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap Y0390891

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List Price $960,000 Down Payment 100% / $960,000

Cap Rate 6.25%

Price/SF (GLA) $592.96

Type of Ownership Fee Simple

Pizza Hut 1821 N SUPERIOR AVE, TOMAH, WISCONSIN 54660

THE OFFERING

PROPERTY DETAILS

FINANCIAL OVERVIEW

Lot Size 95,135 SF (2.18 ACRES)

Rentable Square Feet 1,619 SF

Year Built / Renovated N/A / Remodeled 2016

Assessor’s Parcel Number 286-02651-4800

PRICING AND FINANCIAL ANALYSIS



Tenant Trade Name Pizza Hut

Tenant Franchisee Guarantee

Ownership Private

Guarantor Franchisee

Lease Type NNN

Lease Term 15 Years

Lease Commencement Date COE

Expiration Date of Base Term COE

Tenant Responsibility Roof & Structure ,Taxes, Insurance, Utilities

Landlord Responsibility None

Increases 5 Percent Increase Every 5 Years

Options Three - Five Year Options

Term Remaining on Lease 15 Years

Property Type Net Leased Restaurant

Right of First Refusal/Offer Yes

PRICING AND FINANCIAL ANALYSIS

LEASE ABSTRACT



LOCAL STREET AERIAL

RESEARCH


ABOUT

Pizza Hut is an American restaurant chain and international franchise, known for pizza and side dishes, it is now corporately known as Pizza Hut, Inc. and is a subsidiary of Yum! Brands, Inc., the world’s largest restaurant company.

In 2012, the company had more than 6,000 Pizza Hut restaurants in the United States, and had more than 5,139 store locations in 94 other countries and territories around the world. Pizza Hut has grown to become the largest pizza company in the world.

As of November, 2014 Pizza Hut revamped their menu, adding five new toppings, six sauces, 10 crust flavors (like “honey Sriracha” and “ginger boom boom”), and even health-conscious “Skinny Slice” pizzas.

Name Pizza Hut

Ownership Public

Stock Symbol YUM

Sales Volume $485.80 Billion

Board NYSE

HQ Plano, TX

Rating BBB

Agency Standard’s & Poor

Web Site www.pizzahut.com

TENANT OVERVIEW


TENANT SUMMARY

RESEARCH


DEMOGRAPHIC ANALYSIS


POPULATION PROFILE


HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure $66,935 $61,105 $62,300

Consumer Expenditure Top 10 Categories

Housing $18,593 $16,957 $17,239

Shelter $10,909 $9,992 $10,132

Transportation $10,417 $9,678 $9,865

Food $7,185 $6,607 $6,718

Personal Insurance and Pensions $6,252 $5,229 $5,395

Health Care $4,818 $4,352 $4,473

Utilities $3,656 $3,392 $3,465

Entertainment $2,772 $2,534 $2,586

Cash Contributions $2,757 $2,366 $2,464Household Furnishings and Equipment $1,857 $1,646 $1,696

POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age

2016 Estimate Total Population 1,542 10,287 13,530

Under 20 25.67% 26.29% 26.17%

20 to 34 Years 16.89% 18.98% 18.06%

35 to 39 Years 5.71% 5.78% 5.77%

40 to 49 Years 12.12% 11.81% 12.15%

50 to 64 Years 21.20% 20.80% 21.42%

Age 65+ 18.38% 16.34% 16.45%

Median Age 41.39 39.08 40.01

Population 25+ by Education Level

2016 Estimate Population Age 25+ 1,074 7,039 9,298

Elementary (0-8) 2.90% 2.43% 2.52%

Some High School (9-11) 6.62% 6.23% 6.19%

High School Graduate (12) 38.47% 39.47% 38.89%

Some College (13-15) 19.81% 21.79% 22.21%

Associate Degree Only 10.70% 11.53% 11.82%

Bachelors Degree Only 16.48% 13.22% 13.01%

Graduate Degree 4.87% 5.08% 5.01%

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 of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap Y0390891

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DEMOGRAPHIC DATA © 2016 BY EXPERIAN.


DEMOGRAPHIC STUDIES


POPULATION 1 Miles 3 Miles 5 Miles 2021 Projection

Total Population 1,628 10,657 14,013

2016 Estimate


2010 Census


2000 Census


Current Daytime Population

2016 Estimate 2,706 15,250 17,412

HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2021 Projection

Total Households 604 4,559 5,901

2016 Estimate


Average (Mean) Household Size 2.39 2.29 2.33

2010 Census


2000 Census


Occupied Units

2021 Projection 604 4,559 5,901

2016 Estimate 602 4,654 6,035

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2016 Estimate

$150,000 or More 5.35% 3.38% 3.60%

$100,000 - $149,000 15.80% 11.78% 12.20%

$75,000 - $99,999 15.69% 12.40% 12.98%

$50,000 - $74,999 23.82% 22.75% 23.83%

$35,000 - $49,999 14.15% 13.22% 13.14%

Under $35,000 23.99% 35.66% 33.35%

Average Household Income $76,543 $63,175 $65,021

Median Household Income $62,877 $51,190 $53,471

Per Capita Income $28,443 $27,098 $27,401


RACE AND ETHNICITY The current year racial makeup of your selected area is as follows: 87.97% White, 3.63% Black, 0.30% Native American and 1.86% Asian/Pacific Islander. Compare these to US averages which are: 70.77% White, 12.80% Black, 0.19% Native American and 5.36% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 4.04% of the current year population in your selected area. Compare this to the US average of 17.65%.

HOUSING The median housing value in your area was $142,435 in 2016, compare this to the US average of $187,181. In 2000, there were 301 owner occupied housing units in your area and there were 123 renter occupied housing units in your area. The median rent at the time was $497.

EMPLOYMENT In 2016, there are 1,254 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 49.37% of employees are employed in white-collar occupations in this geography, and 50.45% are employed in blue-collar occupations. In 2016, unemployment in this area is 4.69%. In 2000, the average time traveled to work was 17.00 minutes.

POPULATIONIn 2016, the population in your selected geography is 1,542. The population has changed by 17.80% since 2000. It is estimated that the population in your area will be 1,628.00 five years from now, which represents a change of 5.58% from the current year. The current population is 49.76% male and 50.24% female. The median age of the population in your area is 41.39, compare this to the US average which is 37.68. The population density in your area is 489.76 people per square mile..

HOUSEHOLDS There are currently 564 households in your selected geography. The number of households has changed by 33.33% since 2000. It is estimated that the number of households in your area will be 604 five years from now, which represents a change of 7.09% from the current year. The average household size in your area is 2.39 persons.

INCOMEIn 2016, the median household income for your selected geography is $62,877, compare this to the US average which is currently $54,505. The median household income for your area has changed by 53.63% since 2000. It is estimated that the median household income in your area will be $74,640 five years from now, which represents a change of 18.71% from the current year. The current year per capita income in your area is $28,443, compare this to the US average, which is $29,962. The current year average household income in your area is $76,543, compare this to the US average which is $78,425.

GEOGRAPHY: 1 MILE



EXCLUSIVELY LISTEDEXCLUSIVELY LISTED BY:

OFFICES NATIONWIDEwww.marcusmillichap.com

BROKER OF RECORD | TODD LINDBLOM | TITLE: REGIONAL MANAGER | MARCUS & MILLICHAP | 13890 BISHOPS DRIVE, SUITE 300 | BROOKFIELD, WI 53005TEL: (262) 364-1964 | FAX: (262) 364-1910 | LICENSE: 56163-90

GABRIEL BRITTI First Vice President Investments Senior Director, National Retail GroupMIAMI OFFICEOffice: (786) [email protected]

RONALD ISSENBERG First Vice President Investments Senior Director, National Retail GroupMIAMI OFFICEOffice: (786) [email protected]

offering memorandum 15-year absolute-net (nnn) … · demographic analysis. rent increases monthly...

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