offering memorandum buffalo wild wings · area overview racine, wisconsin racine, wisconsin is a...

Offering Memorandum

BUFFALO WILD WINGSRacine, WI

TABLE OF CONTENTS

• THE OFFERING

• INVESTMENT HIGHLIGHTS

• TENANT OVERVIEW

• AREA OVERVIEW

• DEMOGRAPHICS

Andrew Chason, CCIMFirst Vice [email protected] MOB FAX License: AL: 000079317-0

Marcus & Millichap208 North Greeno Rd., Suite B2Fairhope, AL 36532www.marcusmillichap.com

EXCLUSIVELY LISTED BY

(251) 929-7254

(251) 929-7310(205) 965-8250

Buffalo Wild Wings | Racine, WI | 2

PROPERTY ADDRESS 5880 DURAND AVENUE RACINE, WI

BUILDING SIZE ±6,465 SF

LOT SIZE ±1.5 ACRES

PARKING 103 SPACES

YEAR BUILT 2013

OCCUPANCY 100%

OWNERSHIP NNN GROUND LEASE

PRICING OVERVIEW

RENT ROLL

TENANT GLA % OF GLA ANNUAL RENT RENT/SF RENTCOMMENCEMENT LEASE EXPIRATION OPTIONS CHANGES ON CHANGES TO

BlazinWings, Inc. ±6,465 SF 100% $132,000 $20.42 9/23/2013 15 Years Four Five-Year

10/01/2023Option 1Option2Option 3Option 4

$145,200$159,720$175,692$193,261$212,587

THE OFFERINGMarcus & Millichap is pleased to present the exclusive listing for the Buffalo Wild Wings located at 5880 Durand Avenue in Racine, Wisconsin. Th is offering is an absolute triple-net ground lease which is corporately guaranteed by Buffalo Wild Wings, Inc. In 2013, the tenant signed a 15-year lease which features 10 percent rent increases every five years in the base term and each of the four, five-year options to renew. The tenant currently has just under ten years of base term remaining.

The site is a well located 1.5-acre outparcel to the 810,000-square-foot Regency Mall. The site has tremendous frontage along Durand Avenue with traffic counts of 27,500 VPD. It’s also just east of the intersection of Green Bay Road with traffic counts of 29,700 VPD. The site has multiple points of access and excellent visibility along Durand Avenue.

Retailers in this trade area include Target, Home Depot, Ross, Jo-Ann Fabrics, T.J. Maxx, Hobby Lobby, Michaels, Dick's Sporting Goods, Best Buy, Barnes & Noble, Walgreens, Starbucks and others.

OVERVIEW

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. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

PURCHASE PRICE $2,256,000

CAP RATE 5.85%

NOI $132,000

PROFORMA

BASE RENTBuffalo Wild Wings $132,000

NET OPERATING INCOME $132,000



SITE PHOTO

Actual Site


SITE PHOTO


Actual Site


SITE PLAN



Retail Aerial



Market Aerial



OWNERSHIP PRIVATE

HEADQUARTERED MINNEAPOLIS, MN

YEAR FOUNDED 1982

WEBSITE WWW.BUFFALOWILDWINGS.COM


TENANT OVERVIEW

BUFFALO WILD WINGS, INC.

Now headquartered in Minneapolis, Minnesota, Buffalo Wild Wings was founded in 1982 after friends James Disbrow and Scott Lowery were unable to find a good place to eat buffalo-style chicken wings in Columbus, Ohio pushing the pair to open their own restaurant. A year later, they opened a second location in the Columbus suburb of Westerville and once the company began to offer franchising in 1992, the company really took off with locations around the globe throughout North America, Southeast Asia and the Middle East.

In November 2017, Roark Capital Group and The Wendy’s Company co-owned Arby’s Restaurant Group announced its plan to purchase the then public chain for approximately $2.9 billion including debt. This deal completed on February 5, 2018 with Arby’s Restaurant Group being renamed to Inspire Brands and set up as the holding parent company to Arby’s, Buffalo Wild Wings and R Taco. Inspire Brands has more than 4,600 restaurants under its umbrella with total annual system sales in excess of $7.6 billion.

The chain is known for buffalo-style chicken wings along with 21 mouthwatering signature sauces and seasonings, as well as a complement of other items such as chicken tenders and legs. The chain’s menu also features appetizers, burgers, tacos, salads, and desserts, along with beer, wine, and other beverages.


LEASE SUMMARY

TENANT LEGAL NAME Blazin Wings, Inc.

BUILDING SIZE ±6,465 SF

RENT COMMENCEMENT 9/23/13

RENT EXPIRATION 9/30/28

TERM REMAINING 10 Years

RENT ESCALATIONS 10 Every 5 Years

EXTENSION OPTIONS Four, Five-Year Options

TAXES Tenant pays taxes directly

INSURANCE Tenant maintains insurance

LANDLORD RESPONSIBILTIES None

TENANT REPAIRS Tenant is responsible for all maintenance, repair and replacement of Roof, Structure, HVAC Systems, Common Area & Parking Areas

UTILITIES Tenant pays utilities directly.

RIGHT OF FIRST REFUSAL None




AREA OVERVIEW

RACINE, WISCONSINRacine, Wisconsin is a city located in the southeastern part of Wisconsin and is the county seat of Racine County. Located on the shore of Lake Michigan, Racine is located just 22 miles south of Milwaukee and is the fifth most populous county in Wisconsin with a population of more than 195,408.

MILWAUKEE, WI 22 MILES

CHICAGO, IL 60 MILES

MADISON, WI 86 MILES

DISTANCE TO MAJOR CITIES

Racine is home to several respected international company headquarters, including J. I. Case (heavy equipment), S. C. Johnson & Son (cleaning and chemical products), Dremel Corporation, Reliance Controls Corporation (time controls and transfer switches), Twin Disc, and Arthur B. Modine (Heat Exchangers).

EMPLOYMENT

TOP EMPLOYERS NUMBER EMPLOYED

Wheaton Franciscan Healthcare 2,661

S.C. Johnson & Son, Inc. 2,600

CNH America, LLC 2,500

Racine United School District 2,500

InSink Erator 1,000


Racine is also home to new employer, Foxconn Technology Group, the global leader in manufacturing services for the computer, communication and consumer electronics industry.

The approximately 22 million-square-foot Racine, Wisconsin site (the largest project in the state and one of the largest manufacturing campuses in the world) will be the new fabrication plant for

LCD panel glass offering thousands of new jobs for the area.

REGIONAL MAP



LOCAL MAP



PROPERTY NAME

MARKETING TEAM

5880 DURAND AVE

DEMOGRAPHICS

Source: © 2017 Experian

Created on December 2018

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Population 7,871 63,706 121,383

▪ 2017 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Current Daytime Population

2017 Estimate 10,154 64,912 115,245

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Households 3,228 25,569 47,702

▪ 2017 Estimate


Average (Mean) Household Size 2.32 2.44 2.48

▪ 2010 Census


▪ 2000 Census


HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2017 Estimate

$200,000 or More 1.36% 2.28% 2.64%

$150,000 - $199,999 2.33% 3.10% 3.26%

$100,000 - $149,000 11.46% 12.37% 11.69%

$75,000 - $99,999 12.17% 13.43% 12.50%

$50,000 - $74,999 18.77% 20.89% 19.56%

$35,000 - $49,999 14.70% 14.21% 13.31%

$25,000 - $34,999 10.53% 11.34% 11.60%

$15,000 - $24,999 13.03% 11.82% 13.11%

Under $15,000 17.14% 13.35% 14.61%

Average Household Income $58,761 $66,607 $65,883

Median Household Income $45,290 $52,155 $49,564

Per Capita Income $24,424 $26,974 $26,030

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2017 Estimate Total Population 7,821 62,719 119,108

Under 20 25.79% 25.18% 26.62%

20 to 34 Years 19.76% 20.09% 20.95%

35 to 39 Years 5.48% 6.36% 6.25%

40 to 49 Years 10.42% 12.05% 11.93%

50 to 64 Years 19.32% 20.54% 20.13%

Age 65+ 19.23% 15.76% 14.13%

Median Age 39.01 38.67 36.88

▪ Population 25+ by Education Level

2017 Estimate Population Age 25+ 5,280 42,900 78,724

Elementary (0-8) 2.04% 2.27% 3.32%

Some High School (9-11) 9.37% 9.51% 10.07%

High School Graduate (12) 31.35% 33.13% 32.33%

Some College (13-15) 24.75% 24.53% 23.66%

Associate Degree Only 9.34% 9.00% 8.43%

Bachelors Degree Only 14.66% 13.60% 13.90%

Graduate Degree 7.54% 7.12% 7.23%


Income

In 2017, the median household income for your selected geography is

$45,290, compare this to the US average which is currently $56,286.

The median household income for your area has changed by -1.81%

since 2000. It is estimated that the median household income in your

area will be $53,599 five years from now, which represents a change

of 18.35% from the current year.

The current year per capita income in your area is $24,424, compare

this to the US average, which is $30,982. The current year average

household income in your area is $58,761, compare this to the US

average which is $81,217.

Population

In 2017, the population in your selected geography is 7,821. The

population has changed by 4.83% since 2000. It is estimated that the

population in your area will be 7,871.00 five years from now, which

represents a change of 0.64% from the current year. The current

population is 46.16% male and 53.84% female. The median age of the

population in your area is 39.01, compare this to the US average

which is 37.83. The population density in your area is 2,484.24 people

per square mile.

Households

There are currently 3,191 households in your selected geography. The

number of households has changed by 10.45% since 2000. It is

estimated that the number of households in your area will be 3,228

five years from now, which represents a change of 1.16% from the

current year. The average household size in your area is 2.32

persons.

Employment

In 2017, there are 5,057 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

61.64% of employees are employed in white-collar occupations in this

geography, and 39.52% are employed in blue-collar occupations. In

2017, unemployment in this area is 6.70%. In 2000, the average time

traveled to work was 22.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

63.90% White, 23.78% Black, 0.05% Native American and 3.42%

Asian/Pacific Islander. Compare these to US averages which are:

70.42% White, 12.85% Black, 0.19% Native American and 5.53%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 12.83% of the current year

population in your selected area. Compare this to the US average of

17.88%.

PROPERTY NAME

MARKETING TEAM

5880 DURAND AVE

Housing

The median housing value in your area was $160,679 in 2017,

compare this to the US average of $193,953. In 2000, there were

1,525 owner occupied housing units in your area and there were 1,365

renter occupied housing units in your area. The median rent at the

time was $491.

Source: © 2017 Experian

DEMOGRAPHICS


NET LEASED DISCLAIMER

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.


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.

NON-ENDORSEMENT NOTICE

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.

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.

Todd Lindblom, Broker of Record - Milwaukee, Lic. # 56163-90



WISCONSIN REALTORS® ASSOCIATION4801 Forest Run Road, Madison, WI 53704

Marcus & Millichap Real EstateEffective July 1, 2016

1 2 3 4 5 6 7

Prior to negotiating on your behalf the brokerage firm, or an agent associated with the firm, must provide you the following disclosure statement: DISCLOSURE TO CUSTOMERS You are a customer of the brokerage firm (hereinafter Firm). The Firm is either an agent of another party in the transaction or a subagent of another firm that is the agent of another party in the transaction. A broker or a salesperson acting on behalf of the Firm may provide brokerage services to you. Whenever the Firm is providing brokerage services to you, the Firm and its brokers and salespersons (hereinafter Agents) owe you, the customer, the following duties:

8 (a) The duty to provide brokerage services to you fairly and honestly.9 (b) The duty to exercise reasonable skill and care in providing brokerage services to you.10 (c) The duty to provide you with accurate information about market conditions within a reasonable time if you request 11 it, unless disclosure of the information is prohibited by law.12 (d) The duty to disclose to you in writing certain Material Adverse Facts about a property, unless disclosure of the13 information is prohibited by law (see lines 42-51).14 (e) The duty to protect your confidentiality. Unless the law requires it, the Firm and its Agents will not disclose your15 confidential information or the confidential information of other parties (see lines 23-41).16 (f) The duty to safeguard trust funds and other property held by the Firm or its Agents.17 (g) The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the18 advantages and disadvantages of the proposals.19 Please review this information carefully. An Agent of the Firm can answer your questions about brokerage services, 20 but if you need legal advice, tax advice, or a professional home inspection, contact an attorney, tax advisor, or home 21 inspector. This disclosure is required by section 452.135 of the Wisconsin statutes and is for information only. It is a 22 plain-language summary of the duties owed to a customer under section 452.133(1) of the Wisconsin statutes.23 CONFIDENTIALITY NOTICE TO CUSTOMERS The Firm and its Agents will keep confidential any information given to the 24 Firm or its Agents in confidence, or any information obtained by the Firm and its Agents that a reasonable person 25 would want to be kept confidential, unless the information must be disclosed by law or you authorize the Firm to 26 disclose particular information. The Firm and its Agents shall continue to keep the information confidential after the 27 Firm is no longer providing brokerage services to you.28 The following information is required to be disclosed by law:29 1. Material Adverse Facts, as defined in Wis. Stat. § 452.01(5g) (see lines 42-51).30 2. Any facts known by the Firm or its Agents that contradict any information included in a written inspection 31 report on the property or real estate that is the subject of the transaction.32 To ensure that the Firm and its Agents are aware of what specific information you consider confidential, you may 33 list that information below (see lines 35-41) or provide that information to the Firm or its Agents by other means. At a 34 later time, you may also provide the Firm or its Agents with other Information you consider to be confidential.35 CONFIDENTIAL INFORMATION: _______________________________________________________________________________36 _______________________________________________________________________________________________________________37 _______________________________________________________________________________________________________________38 NON-CONFIDENTIAL INFORMATION (The following information may be disclosed by the Firm and its Agents): _________39 _______________________________________________________________________________________________________________40 _______________________________________________________________________________________________________________41 __________________________ (Insert information you authorize to be disclosed, such as financial qualification information.)42 DEFINITION OF MATERIAL ADVERSE FACTS43 A “Material Adverse Fact” is defined in Wis. Stat. § 452.01(5g) as an Adverse Fact that a party indicates is of such 44 significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable 45 party, that it affects or would affect the party’s decision to enter into a contract or agreement concerning a transaction 46 or affects or would affect the party’s decision about the terms of such a contract or agreement.47 An “Adverse Fact” is defined in Wis. Stat. § 452.01(1e) as a condition or occurrence that a competent licensee 48 generally recognizes will significantly and adversely affect the value of the property, significantly reduce the structural 49 integrity of improvements to real estate, or present a significant health risk to occupants of the property; or information 50 that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations under a 51 contract or agreement made concerning the transaction.52 NOTICE ABOUT SEX OFFENDER REGISTRY You may obtain information about the sex offender registry and persons 53 registered with the registry by contacting the Wisconsin Department of Corrections on the Internet at54 http://www.doc.wi.gov or by telephone at 608-240-5830.

No representation is made as to the legal validity of any provision or the adequacy of any provision in any specific transaction.

Copyright © 2016 by Wisconsin REALTORS® Association

Drafted by Attorney Debra Peterson Conrad

Marcus & Millichap Real Estate Services13890 Bishop’s Drive Suite 300Brookfield, WI 53005

DISCLOSURE TO NON-RESIDENTIAL CUSTOMERS

offering memorandum buffalo wild wings · area overview racine, wisconsin racine, wisconsin is a...

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