offering memorandum · replacement tenant considering the location of the property, and...

Offering Memorandum

ABSOLUTE NNN CHECKERS2223 Whiskey Rd • Aiken, SC 29803

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe 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 a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & 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 YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

ABSOLUTE NNN CHECKERS

Aiken, SC

ACT ID Z0280760

2

N E T L E A S E D D I 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.

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.

3

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Location Overview

Regional and Local Map

FINANCIAL ANALYSIS 02Acquisition Financing

MARKET OVERVIEW 03Market Analysis

Demographic Analysis


4


5

INVESTMENT

OVERVIEW

OFFERING SUMMARY

Price $1,137,450

Net Operating Income $79,608

Capitalization Rate – Current 7.00%

Price / SF $1,566.74

Rent / SF $109.65

Lease Type Absolute Net

Gross Leasable Area 726 SF

Year Built / Renovated 2008

Lot Size 0.42 acre(s)

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

#

FINANCING

Down Payment All Cash

Net Cash Flow 7.00% / $79,608

Cash on Cash Return 7.00%

Total Return 7.00% / $79,608


6


6

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER# OF

EMPLOYEES *

Srns 6,011

CB&i Areva Mox Services LLC

1,539

Agy Aiken LLC 921

URS 661

Walmart 600

Aurora Pavilion 573

United States Dept of Energy 451

Caresouth Hospice of Aiken 431

Owens Corning 400

Westinghouse 360

Aiken County Bd Disabilities 350

URS Professional Solutions LLC

350

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 5,408 28,675 48,958

2010 Census Pop 5,082 27,352 47,107

2017 Estimate HH 2,530 12,749 20,840

2010 Census HH 2,366 12,131 20,046

Median HH Income

$61,111 $73,858 $61,169

Per Capita Income $35,888 $42,220 $36,080

Average HH Income

$76,456 $94,905 $84,114

* # of Employees based on 5 mile radius


OFFERING SUMMARY

Lease Guaranteed by Franchisee (Augusta Burger Express) & Business

Operator

15 Year Absolute NNN Base Lease (11+ Years Remaining)

2.5% Annual Increases Starting Year 6

39,000-plus Average Daily Traffic on Whiskey Road

Proximity to Numerous Institutional & Educational Facilities

48,958 Residents in 5-mile Radius with Average Household Income of

$84,000 +

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present a 726 +/- square foot Checkers Drive-In located at 2223 Whiskey Road in Aiken, Aiken County, South Carolina.

This investment is strategically located on an out parcel to a Publix anchored shopping center and adjacent to the Aiken Mall. Checker's benefits both

from direct access off of Whiskey Road as well as exposure which comes from an estimated daily traffic count on Broad Street of 39,000 +/- vehicles per

day. The average household income in a 3 mile radius is $90,212. Some of the nearby traffic generators in close proximity are: Walmart Supercenter,

Lowe's Home Improvement, Home Depot, Kroger, Walgreen's, Publix, CVS/pharmacy, Outback, Atlanta Bread Company, Petco, Dollar Tree, Golden

Corral, IHOP, Chili’s, T.J. Maxx, Anytime Fitness, Five Guys, Game Stop, Regal Cinemas, Chuck E. Cheese, Staples, Chick-Fil-A, Holiday Inn, Quality Inn,

Hampton Inn, Comfort Suites, Sleep Inn, Country Inn & Suites, Wells Fargo, Bank of America, BB&T, Citi Trends, and Radio Shack. The subject property is

also in close proximity to the Aiken Mall, which is a 508,200 regional mall, which is anchored by Belk, and JCPenney.

With its proximity to Interstate 20 and to major cities like Atlanta, Charleston, Charlotte and Savannah, Aiken is ideally situated for business. With lush,

idyllic mountains and beautiful, sandy beaches less than 3 hours away by car, Aiken is the perfect home for almost any lifestyle. The Greater Aiken area

also enjoys a strong global presence with several international companies, such as Bridgestone/Firestone South Carolina, Advanced Glassfiber Yarn,

GlaxoSmithKline, Rieter Automotive Systems North America, SKF Automotive Division, Metso Paper USA, and Shinsho American Corporation.

Within a five-mile radius of Aiken, the average household income is $84.114 among the 48,958 individuals who reside within a five-mile radius of the

subject property.

The asking price of $1,137,450 represents a 7.00 percent cap rate.

INVESTMENT OVERVIEW

7

12

TENANT PROFILES


8

Checkers

Checkers is one the largest chains of double drive-thru restaurants in

the U.S Originally debuting as separate companies Checkers and Rally’s

formed a merger in 1999. Checkers was founded in 1986 in Mobile,

Alabama and Rally’s was founded in 1986 in Louisville, Kentucky.

Checkers operates 820 locations in 28 states across the U.S.

Additionally, Checkers has a strong pipeline for future growth with

1,200 total locations projected by the year 2020. The company is

headquartered in Tampa, Florida

General Information

Tenant Name Checkers

Website www.checkers.com

Parent Company Oak Hill Capital Partners

Headquartered Tampa, Florida

Rentable Square Feet 726 SF

Lease Commencement 11/1/2015

Lease Expiration 10/31/2030

No. of Locations 880 +

#

CLOSE PROXIMITY TO:

2223 Whiskey Rd, Aiken, SC 29803

Aiken is the largest city of Aiken County,

South Carolina and is part of the Augusta-

Richmond County Metropolitan Statistical

Area. It borders Wood Valley, Montmorenci,

Balltown and Graniteville. Aiken is

approximately 17 miles northeast of Augusta,

GA and approximately 50 miles south west of

Columbia, SC. The major roads that pass

through or by Aiken are Highways US 1, US

78, SC 19, SC 118, SC 302, and SC 421.

Aiken is home to the University of South

Carolina Aiken, the Aiken Steeplechase

Association, and the Aiken Thoroughbred

Racing Hall of Fame.

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEABSOLUTE NNN CHECKERS

PRICING AND VALUATION MATRIX


9

LOCATION OVERVIEW

Personal & Franchisee Guarantee

15 Year Absolute NNN Lease (11+ Years

Remaining)

2.5% Annual Increases Start in Year 6

Built in 2008

Double Drive-Thru + Walk-up Window

Patio Seating Available

Located in Heavy Retail Corridor

#


LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX




10

REGIONAL AND LOCAL MAP

AERIAL PHOTO


11

Brittany Downs Apartments

Social Security Administration

South Aiken High School

Kennedy Middle School

Churchill Commons

Apartments

Greenbriar Apartments

New London Apartments

Walgreens

Subject Property

f

AERIAL PHOTO

PROPERTY PHOTO


12

PROPERTY PHOTO


13


14

FINANCIAL

ANALYSIS



NOTES




15

PRICING AND VALUATION MATRIXPRICING AND VALUATION MATRIX




15


15

Lease Personally Guaranteed from Current Business Operator.

Lease also Guaranteed by Augusta Burgers Express, Inc.

#

PROPERTY SUMMARY

OFFERING SUMMARY

#


16

OFFERING SUMMARY

NOTES:

Lease Personally Guaranteed from Current Business Operator.

Lease also Guaranteed by Augusta Burgers Express, Inc.

Augusta Burgers Express, Inc. is owned and operated by Andy Pye, a franchisee of Checkers since 1998 owning restaurants

in August (GA), Charleston (SC), Sumter (SC) and Virginia Beach (VA). In addition to Checkers, the Pye Family also owns

Fireside Subs and Bruster’s restaurants. Between all three brands, the Pye’s own more than 20 units regionally.

MARCUS & MILLICHAP CAPITAL CORPORATION

CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to

providing superior capital market expertise, precisely managed execution, and

unparalleled access to capital sources providing the most competitive rates and

terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie

Mae, Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform

operating

within the firm’s

brokerage

offices

$5.63 billion

total national

volume in 2017

Access to

more capital

sources than

any other firm

in the industry

Optimum financing solutions

to enhance value

Our ability to enhance

buyer pool by expanding

finance options

Our ability to enhance

seller control

• Through buyer

qualification support

• Our ability to manage buyers

finance expectations

• Ability to monitor and

manage buyer/lender

progress, insuring timely,

predictable closings

• By relying on a world class

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,707

debt and equity

financings

in 2017

ACQUISITION FINANCING


17


18

MARKET

OVERVIEW

MARKET OVERVIEW

OVERVIEW

AUGUSTA

Augusta, Georgia, is the home of Augusta National Golf Club, where the

Masters Tournament is played each year. The Augusta-Richmond

County metro consists of seven counties: Burke, Columbia, Lincoln,

McDuffie and Richmond counties in Georgia and Aiken and Edgefield

counties in South Carolina. There are more than 600,000 residents in the

market and the region is projected to add 30,000 people and 15,000

households over the next five years. The consolidated city-county of

Augusta-Richmond contains 203,000 citizens.

The metro is a center for medicine, biotechnology and cybersecurity activities.

Fort Gordon is a major economic driver employing nearly 17,000 workers. The facility has been

designated to house the U.S. Army Cyber Command. The market is also home to military

contractors such as Textron Specialized Vehicles.

Healthcare-product manufacturing supports the economy, in addition to the Medical District.

Covidien is a global health products company with operations in the area.

The famous Augusta National Golf Club and the Masters Tournament attract thousands of

tourists to the region each year.

DEMOGRAPHICS

1

ECONOMY

METRO HIGHLIGHTS

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau


MEDICAL DISTRICT

University Hospital along with employers in the Medical District provide tens of

thousands of jobs in the region.

REGIONAL ECONOMIC HUB

The metro is an economic hub and houses operations for multiple large

corporations such as International Paper, Kellogg's and Procter & Gamble.

QUALITY OF LIFE

A low cost of living and various employment opportunities allow a high

homeownership rate of more than 66 percent, well above the U.S. rate.

600K

2017POPULATION:

228K

2017HOUSEHOLDS:

37.3

2017MEDIAN AGE:

$49,300

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

37.8U.S. Median:

$56,3006.5%

Growth2017-2022*:

5%

Growth2017-2022*:

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2017 Experian

Created on August 2018

POPULATION 1 Miles 3 Miles 5 Miles

2022 Projection

Total Population 5,918 30,639 51,883

2017 Estimate


2010 Census


2000 Census


Current Daytime Population

2017 Estimate 10,449 34,845 65,169

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2022 Projection

Total Households 2,844 13,847 22,451

2017 Estimate


Average (Mean) Household Size 2.09 2.24 2.29

2010 Census


2000 Census


Occupied Units

2022 Projection 2,844 13,847 22,451

2017 Estimate 2,743 13,857 22,912

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2017 Estimate

$150,000 or More 9.10% 13.74% 11.15%

$100,000 - $149,000 16.61% 21.09% 17.84%

$75,000 - $99,999 14.82% 14.50% 12.92%

$50,000 - $74,999 17.72% 16.08% 16.39%

$35,000 - $49,999 13.24% 11.56% 12.19%

Under $35,000 28.51% 23.03% 29.51%

Average Household Income $76,456 $94,905 $84,114

Median Household Income $61,111 $73,858 $61,169

Per Capita Income $35,888 $42,220 $36,080

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles

Total Average Household Retail Expenditure

$62,863 $69,747 $64,278

Consumer Expenditure Top 10 Categories

Housing $16,488 $18,079 $16,738

Transportation $11,629 $12,571 $11,494

Shelter $8,601 $9,052 $8,444

Food $6,503 $7,066 $6,517

Personal Insurance and Pensions $5,407 $5,990 $5,285

Health Care $4,728 $5,700 $5,185

Utilities $3,866 $4,204 $3,961

Gifts $2,781 $4,284 $3,647

Entertainment $2,731 $3,287 $2,953

Cash Contributions $2,148 $2,720 $2,453

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2017 Estimate Total Population 5,408 28,675 48,958

Under 20 20.93% 19.72% 21.71%

20 to 34 Years 23.18% 16.72% 17.00%

35 to 39 Years 6.02% 4.76% 4.87%

40 to 49 Years 12.15% 10.61% 10.70%

50 to 64 Years 18.63% 23.26% 22.39%

Age 65+ 19.11% 24.92% 23.33%

Median Age 39.90 48.47 46.22

Population 25+ by Education Level

2017 Estimate Population Age 25+ 3,906 21,517 35,509

Elementary (0-8) 1.35% 1.02% 2.35%

Some High School (9-11) 3.17% 3.28% 5.85%

High School Graduate (12) 21.07% 17.32% 22.06%

Some College (13-15) 21.62% 20.26% 20.38%

Associate Degree Only 7.19% 6.42% 6.46%

Bachelors Degree Only 25.71% 29.70% 24.55%

Graduate Degree 19.63% 21.59% 17.55%

20

Income

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

$61,169, compare this to the US average which is currently $56,286.

The median household income for your area has changed by 33.81%

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

area will be $72,728 five years from now, which represents a change

of 18.90% from the current year.

The current year per capita income in your area is $36,080, compare

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

household income in your area is $84,114, compare this to the US

average which is $81,217.

Population

In 2017, the population in your selected geography is 48,958. The

population has changed by 16.51% since 2000. It is estimated that

the population in your area will be 51,883.00 five years from now,

which represents a change of 5.97% from the current year. The

current population is 47.70% male and 52.30% female. The median

age of the population in your area is 46.22, compare this to the US

average which is 37.83. The population density in your area is 623.33

people per square mile.

Households

There are currently 20,840 households in your selected geography.

The number of households has changed by 23.39% since 2000. It is

estimated that the number of households in your area will be 22,451

five years from now, which represents a change of 7.73% from the

current year. The average household size in your area is 2.29 persons.

Employment

In 2017, there are 27,975 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

64.76% of employees are employed in white-collar occupations in

this geography, and 34.91% are employed in blue-collar occupations.

In 2017, unemployment in this area is 5.32%. In 2000, the average

time traveled to work was 23.00 minutes.

Race and Ethnicity

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

70.65% White, 24.20% Black, 0.07% Native American and 1.78%

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 3.23% of the current year

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

17.88%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $179,037 in 2017,

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

12,317 owner occupied housing units in your area and there were

4,572 renter occupied housing units in your area. The median rent at

the time was $420.

Source: © 2017 Experian

DEMOGRAPHICS

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