offering memorandum - sig | sands investment...
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Absolute NNN Lease Investment Opportunity OFFERING MEMORANDUM
3058 Eastway Drive | Charlotte, NC
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Exclusively Marketed By: Sands Investment Group
Sands Investment Group 2701 Ocean Park Boulevard, Suite 140 Santa Monica, CA 90405 844.4.SIG.NNN www.SIGnnn.com
© 2015 Sands Investment Group (SIG). The information contained in this ‘Offering Memorandum,’ has been obtained from sources believed to be reliable. Sands Investment Group does not doubt its accuracy, however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is the responsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine it’s accuracy and completeness. Any and all projections, market assumptions and cash flow analysis are used to help determine a potential overview on the property, however there is no guarantee or assurance these projections, market assumptions and cash flow analysis are subject to change with property and market conditions. Sands Investment Group encourages all potential interested buyers to seek advice from your tax, financial and legal advisors before making any real estate purchase and transaction.
INVESTMENT SUMMARY
AREA OVERVIEW
TENANT PROFILE
LEASE ABSTRACT
Investment Summary Investment Highlights
Location & Area Maps Retail Map City Overview
Tenant Profile
Lease Summary Rent Roll
3058 Eastway Drive Charlotte, NC 28205
Matt Weiss DRE # 01916909 818.621.1898 | DIRECT [email protected]
Max Freedman TX Lic. # 644481 512.766.2711 | DIRECT [email protected]
In Cooperation with JDS Real Estate Services, Inc. – Lic #: 281180
INVESTMENT SUMMARY
OFFERING SUMMARY
PRICE $2,281,000
CAP 4.40%
NOI $100,386*
PRICE PER SF $559.75
YEARS REMAINING 20 Years
LEASE GUARANTY McDonald’s USA LLC
PROPERTY SUMMARY
ADDRESS 3058 Eastway Dr.
Charlotte, NC 28205
COUNTY Mecklenburg
BUILDING AREA 4,075 SF
LAND AREA 43,124 SF
BUILT 1996
*NOI Based off August 2016 Rental Increase. Seller will Credit Back Buyer
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INVESTMENT HIGHLIGHTS HIGHLIGHTS
• Remodeled in 2012 to New Prototype with Double Drive-thru 24 Hour Location and Play Place
• World’s Largest Fast Food Chain with Revenue in Excess of $27 Billion
• Long Term Lease Recently Renegotiated Expires 2036
• Guaranty from McDonald’s Corporate
• 10% Rental Escalations Every 5 Years (Next in 2021)
• Strong Demos with Population of 290k Residents within 5 Miles
• Excellent Traffic Count of 32,087 VPD on Eastway Drive at Woodland Drive and 29,823 VPD on Eastway Drive at Central Avenue
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LOCATION MAP
AERIAL MAP
RETAIL MAP
Eastway Middle School
Charlotte Mecklenburg Police Dept.
Merry Oaks Elementary
School
SUBJECT PROPERTY DEMOGRAPHICS 1 Mile 3 Mile 5 Mile
Population 14,578 121,556 291,573
Median Household Income $33,519 $38,031 $43,677
AREA OVERVIEW Street / Cross Road Average Vehicles Per Day
Eastway Dr/Central Ave 29,823
Eastway Dr/Woodland Dr 32,087
Charlotte is the largest city in the U.S. state of North Carolina. It is the seat of Mecklenburg County and the second largest city in the Southeastern United States. Charlotte is the third fastest growing major city in the United States. In 2014, the estimated population of Charlotte according to the U.S. Census Bureau was 809,958, making it the 17th largest city in the United States based on population. The Charlotte metropolitan area ranks 22nd largest in the US and had a 2014 population of 2,380,314. Charlotte is home to the corporate headquarters of Bank of America and the east coast operations of Wells Fargo, which among other financial operations makes it the second largest banking center in the United States. Among Charlotte's many notable attractions, some of the most popular include the Carolina Panthers of the NFL, the Charlotte Hornets of the NBA, two NASCAR Sprint Cup races and the NASCAR All-Star Race, the Wells Fargo Championship, the NASCAR Hall of Fame, Carowinds amusement park, and the U.S. National Whitewater Center. Nicknamed the Queen City, Charlotte and its resident county received its name in honor of Charlotte of Mecklenburg-Strelitz, who had become queen consort of Great Britain the year before the city's founding. A second nickname derives from the American Revolutionary War, when British commander General Cornwallis occupied the city but was driven out by hostile residents, prompting him to write that Charlotte was "a hornet's nest of rebellion", leading to the nickname The Hornet's Nest.
City Overview AREA OVERVIEW
McDonald's is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across more than 36,000 outlets. Founded in the United States in 1940, the company began as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948, they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. In 2012, the company had annual revenues of $27.5 billion and profits of $5.5 billion. According to a 2012 BBC report, McDonald's is the world's second largest private employer—behind Walmart—with 1.9 million employees, 1.5 million of whom work for franchises. McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, fruit, and seasoned fries.
TENANT PROFILE
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LEASE SUMMARY
TENANT McDonald’s USA LLC
PREMISES A Building of 4,075 SF in
Charlotte, NC.
LEASE COMMENCEMENT July 25, 1996
LEASE EXPIRATION August 7, 2036
LEASE TERM 20 Years
RENEWAL OPTIONS None
RENT INCREASES 10% Every 5 Years
LEASE TYPE Absolute NNN
USE Restaurant
PROPERTY TAXES Tenant’s Responsibility
INSURANCE Tenant’s Responsibility
COMMON AREA Tenant’s Responsibility
ROOF & STRUCTURE Tenant’s Responsibility
REPAIRS & MAINTENANCE Tenant’s Responsibility
HVAC Tenant’s Responsibility
UTILITIES Tenant’s Responsibility
RIGHT OF FIRST REFUSAL/OFFER No
LEASE ABSTRACT
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SIZE MONTHLY RENT LEASE TERM
TENANT NAME SQUARE
FOOTAGE % OF
TOTAL
MONTHLY BASE RENT
RENT / SF
% OF TOTAL
INCREASE DATES
RENTAL INCREASE
LEASE BEGIN
LEASE END OPTIONS
McDonald’s 4,075 100% $8,365.50* $24.63 100% Every 5 Years 10% 7/25/1996 8/7/2036 None
RENT ROLL
*Based off August 2016 Rental Increase. Seller will Credit Back Buyer
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The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Sands Investment Group and should not be made available to any other person or entity without the written consent of Sands Investment Group. This Offering Memorandum 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, 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 Offering Memorandum has been obtained from sources we believe to be reliable; however, Sands Investment Group has not verified, and will not verify, any of the information contained herein, nor has Sands Investment Group 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.
By receipt of this Memorandum, you agree that this Memorandum and its contents are of confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose its contents in any manner detrimental to the interest of the Owner. You also agree that by accepting this Memorandum you agree to release Sands Investment Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.
CONFIDENTIALITY AGREEEMENT
Exclusively Marketed By:
844.4.SIG.NNN | F: 844.328.5905 | WWW.SIGNNN.COM | 2701 OCEAN PARK BLVD, SUITE 140 | SANTA MONICA, CA 90405
Matt Weiss Lic # 01916909 818.621.1898 | DIRECT [email protected]
Max Freedman Lic # 644481 512.766.2711 | DIRECT [email protected]
In Cooperation with JDS Real Estate Services, Inc. – Lic #: 281180