offering memorandum - nnnpro

Red LobsterE X C L U S I V E N E T - L E A S E O F F E R I N G

Subject Property

2080 Sam Rittenberg BoulevardCharleston, SC 29407

OFFERINGMEMORANDUM

Confidentiality and DisclaimerMarcus & Millichap hereby advises all prospective purchasers ofNet Leased property as follows:

The information contained in this Marketing Brochure has beenobtained from sources we believe to be reliable. However, Marcus& Millichap has not and will not verify any of this information, norhas Marcus & Millichap conducted any investigation regardingthese matters. Marcus & Millichap makes no guarantee, warrantyor representation whatsoever about the accuracy or completenessof any information provided.

As the Buyer of a net leased property, it is the Buyer’sresponsibility to independently confirm the accuracy andcompleteness of all material information before completing anypurchase. This Marketing Brochure is not a substitute for yourthorough due diligence investigation of this investmentopportunity. Marcus & Millichap expressly denies any obligationto conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in thisMarketing Brochure are for example only and do not representthe current or future performance of this property. The value of anet leased property to you depends on factors that should beevaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisorsshould conduct a careful, independent investigation of any netleased property to determine to your satisfaction with thesuitability of the property for your needs.

Like all real estate investments, this investment carries significantrisks. Buyer and Buyer’s legal and financial advisors must requestand carefully review all legal and financial documents related tothe property and tenant. While the tenant’s past performance atthis or other locations is an important consideration, it is not aguarantee of future success. Similarly, the lease rate for someproperties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected saleswith little or no record of actual performance, or comparablerents for the area. Returns are not guaranteed; the tenant and anyguarantors may fail to pay the lease rent or property taxes, or mayfali to comply with other material terms of the lease; cash flowmay 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/herown investigation of all matters affecting the intrinsic value of theproperty and the value of any long-term lease, including thelikelihood of locating a replacement tenant if the current tenantshould default or abandon the property, and the lease terms thatBuyer may be able to negotiate with a potential replacementtenant considering the location of the property, and Buyer’s legalability 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 harmlessfrom any kind of claim, cost, expense, or liability arising out ofyour investigation and/or purchase of this net leased property.

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure isproprietary and strictly confidential. It is intended to be reviewedonly by the party receiving it from Marcus & Millichap and shouldnot be made available to any other person or entity without thewritten consent of Marcus & Millichap. This Marketing Brochurehas been prepared to provide summary, unverified information toprospective purchasers, and to establish only a preliminary levelof interest in the subject property. The information containedherein is not a substitute for a thorough due diligenceinvestigation. Marcus & Millichap has not made any investigation,and makes no warranty or representation, with respect to theincome or expenses for the subject property, the future projectedfinancial performance of the property, the size and square footageof the property and improvements, the presence or absence ofcontaminating substances, PCB’s or asbestos, the compliance withState and Federal regulations, the physical condition of theimprovements thereon, or the financial condition or businessprospects of any tenant, or any tenant’s plans or intentions tocontinue its occupancy of the subject property. The informationcontained in this Marketing Brochure has been obtained fromsources we believe to be reliable; however, Marcus & Millichaphas not verified, and will not verify, any of the informationcontained herein, nor has Marcus & Millichap conducted anyinvestigation regarding these matters and makes no warranty orrepresentation whatsoever regarding the accuracy orcompleteness of the information provided. All potential buyersmust take appropriate measures to verify all of the informationset forth herein.

NON-ENDORSEMENT NOTICE

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”)is not affiliated with, sponsored by, or endorsed by anycommercial tenant or lessee identified in this marketing package.The presence of any corporation’s logo or name is not intended toindicate or imply affiliation with, or sponsorship or endorsementby, said corporation of M&M, its affiliates or subsidiaries, or anyagent, product, service, or commercial listing of M&M, and issolely included for the purpose of providing tenant lesseeinformation about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASECONSULT YOUR MARCUS & MILLICHAP AGENT FOR MOREDETAILS.

All potential buyers are strongly advised to take advantage oftheir opportunities and obligations to conduct thorough duediligence and seek expert opinions as they may deem necessary,especially given the unpredictable changes resulting from thecontinuing COVID-19 pandemic. Marcus & Millichap has not beenretained to perform, and cannot conduct, due diligence on behalfof any prospective purchaser. Marcus & Millichap’s principalexpertise is in marketing investment properties and acting asintermediaries between buyers and sellers. Marcus & Millichapand its investment professionals cannot and will not act aslawyers, accountants, contractors, or engineers. All potentialbuyers are admonished and advised to engage otherprofessionals on legal issues, tax, regulatory, financial, andaccounting matters, and for questions involving the property’sphysical condition or financial outlook. Projections and pro formafinancial statements are not guarantees and, given the potentialvolatility created by COVID-19, all potential buyers should becomfortable with and rely solely on their own projections,analyses, and decision-making.

SPECIAL COVID-19 NOTICE

2080 Sam Rittenberg BoulevardCharleston, SC 29407

Representative Photo

Table of ContentsInvestment Highlights 4Financial Analysis 5Concept Overview 6-12Surrounding Area 13Location Overview 14Property Photos 15Local Map 16Regional Map 17Demographics / Market Overview 18-19

4

Investment HighlightsPRICE: $3,096,947 | CAP: 6.00% | RENT: $185,817

About the Investment Long-Term, 19.9-Year Absolute Triple-Net (NNN) Lease with Nearly 15 Years Remaining on

the Base Term Corporate Tenant | Corporate Guaranty Attractive Rental Increases of Two Percent (2.00%) Annually, Beginning in 2021 Four (4), Five (5)-Year Tenant Renewal Options, Bringing the Potential Lease Term to ~40

Years

About the Location Dense Retail Corridor | Citadel Mall (1,138,000+ SF Mall with 100+ Stores), Target,

Dillard’s, Dick’s Sporting Goods, Cost Plus World Market, Belk, Walgreens, Office Depot, Best Buy, McDonald’s, Chick-fil-A, Panera Bread, Ross, TJ Maxx, Taco Bell, Zaxby’s, Dunkin’ Donuts, and Many More

Affluent Suburban Community | Average Household Income Exceeds $75,000 for Homes within Five Miles of the Subject Property

Strong & Growing Demographics | Population Exceeds 123,500 Individuals Within a Five-Mile Radius

Heavily Trafficked Area | Sam Rittenberg Blvd, U.S. Hwy 17 & I-526 | Average Daily Traffic Counts Exceeding 24,000, 46,000 & 80,000, Respectively

Highly Accommodating Area | Comfort Suites West, Hampton Inn & Suites, Holiday Inn, Hotel Bennett, WoodSpring Suites, Town & Country Inn and Suites, TownPlace Suites, and Many More

Excellent South Carolina Real Estate | Less than Six Miles from the Heart of Downtown Charleston | Most Populous City in South Carolina

About the Tenant / Brand Red Lobster is the largest seafood restaurant concept in the world and is an iconic full-

service brand with broad demographic appeal and a significant advertising budget (2nd-largest in casual dining)

The Company was founded in 1968 and currently operates over 700 restaurants throughout the United States and Canada, and has more than 40 franchised restaurants in international markets

Red Lobster is led by an experienced management team with a history of success leading the brand (average 27+ years experience across executive team)

The company generates $2.5B in revenue and is the 6th-largest casual dining concept in North America

Recently acquired by an investment group led by Thai Union Group, one of the worlds largest seafood distributors

Red Lobster – Charleston, SC

Financial Analysis

5

PRICE: $3,096,9471 | CAP: 6.00% | RENT: $185,817PROPERTY DESCRIPTION

Property Red Lobster

Property Address 2080 Sam Rittenberg Boulevard

City, State ZIP Charleston, SC 29407

Year Built / Renovated 1984 / 2012

Building Size (SF) 7,821 SF

Lot Size (Acres) +/- 1.99 Acres

Type of Ownership Fee Simple

THE OFFERINGPurchase Price $3,096,947

CAP Rate 6.00%

Annual Rent $185,817

LEASE SUMMARYProperty Type Net Leased Restaurant

Tenant / Guarantor Corporate

Original Lease Term 19.9 Years

Lease Commencement February 10, 2015

Lease Expiration December 31, 2034

Lease Term Remaining 14.8 Years

Lease Type Absolute Triple-Net (NNN)

Roof & Structure Tenant Responsible

Rental Increases 2.00% Annually, Beginning in 2021

Options to Renew Four (4), Five (5)-Year Options

RENT SCHEDULE

Lease Year Annual Rent Monthly Rent Rent Escalation

Year 6 $182,173 $15,181 -

Year 7 $185,817 $15,485 2.00%

Year 8 $189,533 $15,794 2.00%

Year 9 $193,324 $16,110 2.00%

Year 10 $197,190 $16,433 2.00%

Year 11 $201,134 $16,761 2.00%

Year 12 $205,157 $17,096 2.00%

Year 13 $209,260 $17,438 2.00%

Year 14 $213,445 $17,787 2.00%

Year 15 $217,714 $18,143 2.00%

Year 16 $222,068 $18,506 2.00%

Year 17 $226,510 $18,876 2.00%

Year 18 $231,040 $19,253 2.00%

Year 19 $235,661 $19,638 2.00%

Year 20 $240,374 $20,031 2.00%

INVESTMENT SUMMARYMarcus & Millichap is pleased to present the exclusive listing for a Red Lobster locatedat 2080 Sam Rittenberg Boulevard in Charleston, SC. The site consists of roughly 7,821rentable square feet of building space on an estimated 1.99-acre parcel of land. ThisRed Lobster is subject to a 19.9-year absolute triple-net (NNN) lease, whichcommenced February 10, 2015. The current annual rent is $182,173 and is scheduledto increase by 2.00% annually throughout the remainder of the base term and in eachof the four (4), five (5)-year tenant renewal options.

* Glen Kunofsky & other members of the selling entity, Exclusive Listing Agents, are part fee simple owners of this property. They are licensed real estate salespeople for Marcus & Millichap in the State of New York.


1 - Purchase price based off upcoming rental increase on 1/1/2021

Concept OverviewAbout Red Lobster

• Red Lobster is the largest seafood restaurant concept in theworld and is an iconic full service brand with broaddemographic appeal and a significant advertising budget (2nd

largest in casual dining).

• The Company was founded in 1968 and currently operates700+ restaurants throughout the United States and Canadaand has 40+ franchised restaurants in international markets.

• Red Lobster is led by an experienced management team witha history of success leading the brand (average 27+ yearsexperience across executive team).

• The company generates $2.5B in revenue and is the 6th

largest casual dining concept in North America.

• On August 31st, 2020, a group led by Thai Union Group (“TUG”)acquired Red Lobster from Golden Gate Capital.

• Thai Union Group was previously a minority owner of RedLobster – first acquiring a 25% stake in the company in 2016.

• The new ownership group now includes Thai Union Group,current Red Lobster management, and a newly formedinvestment group, Seafood Alliance, which is led by twoprominent global restaurant operators.

The Transaction

6Red Lobster – Charleston, SC

Concept Overview

OUR HISTORY

FRESH IS IN OUR FOODEach day, you’ll find an updated selection of fresh fish onour Today’s Fresh Fish menu, not to mention live Mainelobster, freshly baked Cheddar Bay Biscuits™, crisp saladsand a host of fresh seafood recipes waiting to beexplored.

FRESH IS IN OUR KNOWLEDGENo one knows seafood better than we do. As globalseafood buyers, we have employees stationedthroughout the world who inspect our seafood themoment it comes out of the water. They ensure it meetsstandards that are second to none. Then, the renownedchefs at our culinary center deliver the fresh expertisethat turns it all into something truly special.

FRESH IS IN OUR DEDICATIONWe hold ourselves to the highest standards for service,quality and a welcoming atmosphere. And we’re focusedon doing what’s right – for our employees, in ourcommunities and in the world.

FRESH IS IN OUR COMMITMENTYou deserve the freshest food and thinking. So every timeyou visit one of our seafood restaurants or our onlineseafood store, you’ll find an uncommon commitment todeliver the best of the sea with fresh energy and freshideas that we hope will make you want to come backagain and again.

We invite you to come in and experience our commitment to quality for yourself. Whether it’s choosing your favorite fresh fish from our “Today’s

Fresh Fish” menu, or selecting your favorite seafood to be prepared over our wood-fired grill, Red Lobster is the place you can enjoy fresh, delicious

seafood now and for generations.


Concept Overview

8

2020

Acquisition by Thai Union Group

2018

We celebrate our 50th anniversary of serving fresh, delicious seafood


Concept Overview

~50% Share in Seafood Casual Dining

• Red Lobster is the largest seafood restaurant concept in the world and the 6th largest casual dining concept in the United States with over $2.5 billion in annual sales and 700+ restaurants.

• The Company is the category killer in the seafood casual dining space, holding almost 50% market share.

• Largest share of any restaurant concept in any segment.

• 6th largest overall casual dining concept in the US.

Strong Market Position Significant Scale With Broad Geographic Reach

6th Largest Casual Dining Concept in the US


Concept Overview

Indispensability vs. Peers

Indispensability (How difficult it would be for me to ‘give up’ ever going there again ) - % very difficult (10 out of 10) shown

AfterBeforeNew Bar Harbor Format

Iconic Brand With Unparalleled Customer Loyalty

• Red Lobster has strong consumer appeal and broad usage across multiple dining out occasions, including high-crave, healthier “good for you” and special meal occasions.

• The brand has a strong foundation of loyal guests, who visit 1-2 times per month and account for more than 50% of sales.

• Red Lobster is the clear leader in casual dining seafood, and the most indispensable brand among major casual dining concepts, further indicating strong consumer loyalty.

Healthy and Recently Remodeled Restaurant Base

• Over $320 million invested in remodels covering >90% of restaurants over the past 9 years.

• $1.4 billion in overall capital expenditure investment over the past 11 years.

• New Bar Harbor format has strong appeal across customer base.


Concept Overview

Kim LopdrupCEO

(31 years in Restaurant Industry)

Salli SettaPresident


Bill LambertCFO


•Salli was named President of Red Lobster in July of 2013

•Prior to her promotion to President, Salli served as Red Lobster’s EVP of Marketing, before which she held numerous roles in Marketing and Culinary at Olive Garden during its turnaround, including VP Marketing and SVP Culinary and Beverage

•24 years of experience in restaurant marketing, advertising and menu development; named “Menu Strategist of the Year” in 2003; recipient of three Menu Masters’ Awards and a Silver Effie for her work on the “Hospitaliano” ad campaign

•BA, University of Central Florida; MBA, Florida Institute of Technology

•Bill served as CFO of Red Lobster from FY2006 to FY2010

•Prior to his return to Red Lobster, Bill served as CFO of LongHorn Steakhouse

•Prior to joining Darden and Red Lobster, Bill spent 21 years with Federated Department Stores in various roles including CFO of Macy’s Central

•BS, Duke University; MBA, University of Michigan

Chip WadeEVP

Operations(30 years in Restaurant

Industry)

•Darryl “Chip” Wade is EVP of Operations at Red Lobster

•Previously, Chip held positions in Enterprise Operations at Darden and as SVP of its Smokey Bones brand

•Outside of Darden, Chip previously served as COO of Legal Sea Foods and in various operations management roles at TGI Friday’s

•BA, Widener University; MBA, University of Texas

•Kim served as President of Red Lobster from FY2005 to FY2011, a period of consistent, above-market growth for the brand

•Prior to his return to Red Lobster, Kim served as President of Specialty Restaurant Group and New Business

•Before joining Darden, Kim served as EVP and COO of North America for Burger King, and at Dunkin’ Brands as VP of Marketing and CEO of its international division

•BBA, College of William & Mary; MBA with distinction, Harvard Business School

Red Lobster is led by an experienced management team with prior success leading the brand.


Concept Overview

• Founded in 1977, Thai Union has a rich history of commitment to seafood expertise and innovation aroundthe world.

• Thai Union Group, based out of Thailand with offices North America, Europe, the Middle-East and Asia,currently serves as a main supplier of seafood for Red Lobster’s across the world.

• Thai Union Group has been listed on the Stock Exchange of Thailand (SET) since November 1994• Prior to the Red Lobster acquisition, Thai Union Group reported annual sales of over $4.1 Billion

• Through acquisitions and organic growth, TUG’s ambitious expansion strategy has established a diverse globalbrand portfolio. Covering three continents, their brands are consumer favorites and market leaders with awide range of products including shelf-stable seafood products, frozen and chilled seafood, PetCare productsand more.

• TUG has a long, successful track record and significant experience servicing consumers, supermarkets,restaurants, hospitality and others.

Global Brands and Partnerships


Surrounding Area

13

2080 Sam Rittenberg Boulevard, Charleston, SC 29407


CAROLINA VOYAGER CHARTER SCHOOL

Location Overview

14

This Red Lobster investment property is situated on Sam Rittenberg Boulevard, whichboasts an average daily traffic count exceeding 24,300 vehicles. Sam RittenbergBoulevard intersects and merges with Interstate-526, as well as Savannah Highway(U.S. Route 17), which bring an additional 80,000 and 46,000 vehicles into theimmediate surrounding area each day, respectively. There are more than 53,500individuals residing within a three-mile radius of the subject property and more than123,500 individuals within a five-mile radius. Average household income for homeswithin five miles of the subject property exceeds $75,000.

The subject property is strategically situated in a highly dense retail corridor thatconsists of numerous regional and national tenants, shopping centers and hospitalityaccommodations, all within close proximity of this site. Major national tenants in theimmediate area include: Target, Dillard’s, Dick’s Sporting Goods, Cost Plus WorldMarket, Belk, Walgreens, Office Depot, Best Buy, McDonald’s, Chick-fil-A, PaneraBread, Ross, TJ Maxx, Taco Bell, Zaxby’s, Dunkin’ Donuts, in addition to many others.This Red Lobster benefits from being an outparcel to Citadel Mall, a regional shoppingmall consisting of more than 1,138,500 square feet and over 100 stores. The subjectRed Lobster additionally benefits from being located within close proximity of varioushospitality accommodations. Among them are: Comfort Suites West, Hampton Inn &Suites, Holiday Inn, Hotel Bennett, WoodSpring Suites, Town & Country Inn andSuites, TownPlace Suites, and more. The Bon Secours Saint Francis Hospital, a 189-bed, state of the art medical facility, is located approximately two miles from thesubject property.

Many businesses have located and invested hundreds of millions of dollars inCharleston's economy in recent years. Industrial hubs continue to provide high-payingjobs in the area. With the arrival of Boeing Aircraft, the city has gained internationalimportance and stature as one of only three places in the world for the manufactureand assembly of wide-body long range commercial aircraft. Other notable firmswithin Charleston include Verizon, Cummins, Daimler AG, Hess Corporation, andInterContinental Hotels Group. Joint Base Charleston, encompassing over 20,877acres and supporting 67 Military Commands and Federal Agencies, provides service toover 90,000 Airmen, Sailors, Soldiers, Marines, Coast Guardsmen, DOD civilians,dependents, and retirees. Because of the influx of investments in Charleston, the citycontinues to expand its inventory of 4-star hotel accommodations. Today the Port ofCharleston boasts the deepest water of any port in the southeast region. Withbeaches, history, amazing sights, great food and friendly people, Charleston is aconsistent hit with tourists who venture to this gracious and beautiful city.

ADTC: 24,000

ADTC: 80,000



ADTC: 46,000

Property Photos

15



Local Map

16



Charleston International Airport (CHS)

Regional Map

17



SOUTH CAROLINA

Demographics

18

1 Mile

3 Miles

5 Miles



1 Mile 3 Miles 5 MilesPOPULATION2023 Projection 7,638 56,253 130,1652018 Estimate 7,433 53,501 123,5322010 Census 7,068 48,014 109,0372000 Census 7,041 47,044 103,327

INCOMEAverage $64,904 $72,362 $75,005Median $50,057 $54,541 $54,442Per Capita $30,439 $34,000 $32,916

HOUSEHOLDS2023 Projection 3,651 26,640 57,2782018 Estimate 3,486 25,130 53,5892010 Census 3,302 22,352 46,8422000 Census 3,100 20,610 42,239

HOUSING2018 $219,267 $240,440 $256,204

EMPLOYMENT2018 Daytime Population 13,162 49,796 134,8182018 Unemployment 2.15% 2.57% 3.17%2018 Median Time Traveled 24 Mins 24 Mins 24 Mins

RACE & ETHNICITYWhite 61.83% 65.41% 62.92%Native American 0.18% 0.19% 0.10%African American 33.39% 28.92% 31.41%Asian/Pacific Islander 1.69% 1.96% 1.83%

Market Overview


Charleston, SC is the oldest and most-populous city in the U.S. state of SouthCarolina. With its world-class deepwater port, a growing international airport, and easilyaccessible ground transportation, Charleston is well prepared to serve any transportation needs.

The Deepest Water of Any Port in the South Atlantic Region:With the deepest channels in the South Atlantic, regularly conducting vessels that draft up to 48feet, and offering weekly service to more than 140 international destinations, Charleston’sworld-class port is well equipped to take on any shipping challenge. In fact, the city’s port isinternationally recognized for its high-efficiency rating—a rating based on speed of vesselsnavigating the natural harbor, availability of multiple terminals specializing in containerized,break-bulk, or rolling cargo, effective teamwork of port personnel and long shoremen, and smarttime-management with “truck turns.” To ensure continued efficiency, the port is everimproving—with harbor deepening, development of a post-Panamax terminal, and purchase ofstate-of-the-art cranes and equipment to handle post-Panamax vessels.

A Growing International Airport:With new direct routes from Southwest Airlines, Frontier and Allegiant, air travel has becomeeasier at Charleston International Airport. Now offering non-stop service to 21 destinations, the30+ year old airport completed a $200 million renovation in late 2016. The award-winningimprovements included the addition of five new gates and 15 new jet bridges and turned theairport into a modern, sophisticated hub of travel for its 3.7 million passengers.

Well-Kept, Easily-Accessed Ground Transportation:Just a short drive up I-26, I-95, I-77, and I-85 provide direct access to North Carolina, Tennessee,New England, Miami, and connecting highways to the rest of the U.S. In fact, Charleston offersone-day truck service to over 60 million people. And as for rail…the North Charleston Terminal’son-terminal rail yard provides easy transport for containers coming from the port to an inlanddestination. Plus, two class-one carriers (Norfolk Southern and CSX) and one short-line serviceprovider (South Carolina Public Railways) offer service to strategic local and national locations.

Mature Industrial Parks:Charleston County offers industrial buildings for lease (typically 20,000 – 200,000 sq. ft.) whichare ideal for light industrial, assembly, and distribution. These industrial buildings can be foundin the Ashley Phosphate Rd. corridor, along Cross County Rd., and in the Ladson area of theNorth Charleston sub-market. Within this same sub-market, flex space of the type typicallypreferred by defense contractors is abundant along the Aviation Ave. and N. Rhett Ave.corridors.

Skilled Workforce:Strong Charleston regional population growth has contributed to a labor force growth rate four(4) times that of the national average. The Charleston region also enjoys one of the mostexperienced and educated workforce populations in the nation. Charleston’s existing workforcepool consists of 375,000 workers in the Charleston region, as well as 22,000+ potentialcandidates in the SC Works online workforce system. Approximately 90% of residents have ahigh school diploma or GED and 33% of residents have a bachelors or advanced degree.Additionally, more than 40,000 students are enrolled in area colleges and universities, nearly15,000 students are enrolled in high school academies, and 28 new residents move to the regioneach day.


EXCLUSIVE NET-LEASE OFFERING

SC Broker of Record:Ben YelmMarcus & MillichapLicense #: 86628

Glen Kunofsky [email protected]

212.430.5115 | NY: 10301203289

John [email protected]

646.805.1412 | NY: 10401332843


mailto:[email protected];[email protected];[email protected]?subject=Red%20Lobster%20-%20Charleston,%20SC

mailto:[email protected];[email protected];[email protected]?subject=Red%20Lobster%20-%20Charleston,%20SC

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