IHOP Restaurant Folsom, CA

offering memorandum.
, 1 56
AAD
T)
IHOP Restaurant
Folsom, CA
E Bi
dwe
ll St
(30
Willow Creek
Town Center
Blu
e Ra
vine
Rd
Actual Site
$2,560,000
5.50% CAP Rate
Lease
••NNN
Tenant Since 1995
••Established
Exercised 1st Option
••Recently
••Located in a Highly Trafficked Retail Corridor
••
••
E. Bidwell Street – 30,156 AADT
(20,
952 A
ADT)
Demographics with over $117,000
••High-End
Average Household Income within 5 Miles
••
Location in Desirable Grocer-Anchored
••Excellent
Shopping Center
Located near Intel’s Campus with over 7,000
Employees
Blue Ravine Road – 20,952 AADT
www.maffiateam.com
Confidentiality & Disclosure
Newmark Cornish & Carey Commercial Newmark Knight Frank (“Broker”) has been retained on an exclusive basis to market the property described herein (“Property”). The Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute
the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial,
title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract
to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase
based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and
such other matters as the Seller deems appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of
the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the
express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that
a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and
has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners,
shareholders, directors, or officers, makes any representation or warranty regarding the accuracy of such pro forma. Purchaser must
make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of
the projections contained in the pro forma.
Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to
accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed
to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
Ryan Forsyth
Senior Associate
916.504.4908
[email protected]
CA RE License #01716551
Ken Noack, Jr.
Senior Vice President
916.747.6442
[email protected]
CA RE License #00777705
2725 Riverside Boulevard • Sacramento, CA 95818 • Tel 916.504.4908 • Fax 916.290.0115 • www.maffiateam.com
Table of Contents
•Property Information........................................................................................................................1
•Tenant Information.......................................................................................................................... 2
•About the Area................................................................................................................................ 3
•Site Plan......................................................................................................................................... 4
•Aerials............................................................................................................................................ 5
•Location Maps................................................................................................................................ 8
•Demographics............................................................................................................................... 11
Property Information
Location
The property is located at 1009 E. Bidwell Street in Folsom, California, adjacent to US Highway 50.
Lot Size
Approximately 0.55 acres, or 24,040 square feet.
Improvements
Construction was completed in 1995 of an approximately 4,000 square foot sit-down restaurant for IHOP Restaurant.
Lease
Leased to IHOP Properties, Inc. starting in June 1995, on a 20 year lease through June 30, 2015. The tenant has exercised
their first option early extending the term out to June 30, 2020. The lease is net, with the tenant responsible for taxes,
insurance, and maintenance including roof and structure. Tenant also pays an additional 15% administrative fee on
maintenance. The tenant has one five-year option remaining at a fixed rent.
Net Annual
Income
Period
Annual Rent
Return
(Current) - 6/31/15
$124,680
N/A
07/01/15 - 06/31/20
$140,892
5.50%
07/01/20 - 06/31/25 (Option 2)
$159,216
6.22%
Price
$2,560,000 (5.50% Return)
Financing
The property will be delivered free and clear of permanent financing.
1
Tenant Information
IHOP, formerly known as The International House of Pancakes, is a United States-based restaurant chain that specializes
in breakfast foods. It is a wholly owned subsidiary of DineEquity, Inc. (NYSE: “DIN”), with 99% of the 1,565 restaurants
run by independent franchisees. While IHOP’s focus is on breakfast foods such as pancakes, French toast and omelets,
it also offers a menu of lunch and dinner items. The chain has more than 1,500 restaurants in all 50 states, the District of
Columbia, Canada, Mexico, Guatemala, Puerto Rico and the U.S. Virgin Islands.
Fiscal 2014 same-store sales increased 3.9%, the strongest full-year sales increase since fiscal 2004.
DineEquity is a US company that both franchises and operates restaurants. Headquartered in Glendale, California, the
company was founded originally as IHOP (International House Of Pancakes) and changed its corporate identity after it
acquired Applebee’s in 2008. IHOP stated it would franchise most of Applebee’s 500 company-owned stores. Applebee’s
has 2,019 restaurants overall worldwide, including those operated by franchisees.
For more information please visit http://www.ihop.com and http://www.dineequity.com.
2
About the Area
Site
Information
The property is located on a outparcel pad fronting Willow Creek Town Center on the corner of East Bidwell Street and
Blue Ravine Road. Willow Creek Town Center is anchored by Save Mart Supermarkets and CVS Pharmacy; additional
retailers within the center include The Habit Burger Grill, Wingstop, Chipotle Mexican Grill, Golden 1 Credit Union and
Anytime Fitness. Both Save Mart and CVS own their own parcel and building. Blue Ravine Road and East Bidwell Street
are the major thoroughfares within Folsom, with annual average daily traffic of over 52,000 vehicles directly in front of
the property.
The Folsom market is a highly desirable retail destination with the subject property being located at the “main and main”
location. There are numerous national tenants in the immediate vicinity, including Target, Trader Joes, Lowes Home Improvements, Petco, Orchard Supply, Home Goods, JoAnn, Grocery Outlet, AutoZone, Peet’s Coffee & Tea, Jack in the Box,
Bank of the West and Carl’s Jr.
The average household income within a five mile radius of the property is over $117,000 which reflects an excellent workforce, including Intel’s campus of over 7,000 employees.
General
Overview
Folsom is an affluent incorporated city of approximately 72,590 residents within Sacramento County. The city is centrally
located between Interstate 80 and US Highway 50 and resides within the Sacramento MSA. Folsom is best known as being
a popular upper middle-class Sacramento suburb, with abundant parks, good schools and a strong community. The city’s
estimated median household income in 2012 was $109,630. Folsom is home to Folsom Lake College, Folsom Dam, Folsom
Lake recreation area and a charming historic district.
Many high tech companies have built large production facilities in Folsom, and commercial growth continues with new
business parks expanding throughout the City. The Folsom Automall along Folsom Boulevard and Highway 50 has grown
to over six dealerships. The Folsom Premium Outlets mall continues to grow and brings shoppers from a very broad trade
area. Folsom is also home to the largest private employer the Sacramento, Intel, which has 7,000 employees. Other
major employers (500 or more employees) include Folsom State Prison, Verizon, Folsom Cordova Unified School District,
Worthington Imports (auto dealer), Peterson’s Folsom Lake Enterprises (auto dealer), California ISO (utilities provider) and
Maximus (government consulting).
3
STOP
EASEMENT TO LEFT OUT
STOP
E BIDWELL ST
STOP
Site Plan
BLUE RAVINE RD
STOP
STOP
STOP
4
Aerial | Close-Up View
Willow Creek
Town Center
Blue
Rav
ine
Rd
(20,
952
AAD
T)
AAD
T
)
Aerial | Mid-Range View
E Bi
dwe
ll St
(30
,156
Willow Creek
Town Center
Blu
e
Rav
ine
Rd (
20,9
52 A
A
DT)
Aerial | Distant View
Lembi Park
Creekside
Medical
Willow Creek
Town Center
d (2
eR
e
Blu
E Bi d
well
S
)
ADT
A
52
0,9
in
Rav
M
on
se
tro
t (3 0
,156
AAD
T)
Dr
7
Location Map
Site
Location Map
Site
Location Map
Site
Demographics
1009 E Bidwell St
Folsom, CA 95630
2014 Group Quarters
137
6,846
7,115
2019 Total Population
16,186
80,773
144,065
2014-2019 Annual Rate
0.69%
0.89%
0.75%
Household Summary
2000 Households
4,602
19,816
38,242
2000 Average Household Size
2.54
2.61
2.71
2010 Households
6,246
26,257
48,755
2010 Average Household Size
2.44
2.60
2.64
2014 Households
6,314
27,030
49,760
1009 E Bidwell St, Folsom, California, 95630
2014 Average Household Rings:
Size
2.46
2.61
2.65
1, 3, 5 mile radii
Latitude: 38.66973
2019 Households
6,508
28,265
51,620
Longitude: -121.15506
2.47
2.62
2.65
2019 Average Household Size
1 mile
30.90%
miles
50.74%
miles
2014-2019 Annual Rate
0.61%
Population
Summary
2010 Families
3,765
18,388
35,393
2000
Total
Population
11,772
58,722
110,882
2010
Average
Family Size
3.14
3.11
3.10
2010
Total
Population
15,411
75,278
136,179
2014 Families
3,804
18,939
36,119
2014
Total
Population
15,640
77,274
138,803
2014 Average Family Size
3.15
3.12
3.10
2014
Group Quarters
137
6,846
7,115
2019
Families
3,926
19,827
37,483
2019
Total
Population
16,186
80,773
144,065
2019 Average Family Size
3.16
3.13
3.11
2014-2019
0.69%
0.89%
0.75%
2014-2019 Annual
Annual Rate
Rate
0.63%
0.92%
0.74%
Household
Summary
Housing
Unit
Summary
2000 Housing
Households
4,602
19,816
38,242
2000
Units
4,890
20,632
39,508
2000 Average
Household
Size
2.54
2.61
2.71
Owner
Occupied
Housing Units
61.5%
72.0%
75.6%
2010
Households
6,246
26,257
48,755
Renter
Occupied Housing Units
32.7%
24.1%
21.2%
2010 Average
Size
2.44
2.60
2.64
Vacant
HousingHousehold
Units
5.9%
4.0%
3.2%
2014 Housing
Households
6,314
27,030
49,760
2010
Units
6,593
27,560
51,156
2014 Average
Household
Size
2.46
2.61
2.65
Owner
Occupied
Housing Units
42.6%
65.7%
70.6%
2019
Households
6,508
28,265
51,620
Renter
Occupied Housing Units
52.1%
29.6%
24.7%
2019 Average
Size
2.47
2.62
2.65
Vacant
HousingHousehold
Units
5.3%
4.7%
4.7%
2014-2019
0.61%
0.90%
0.74%
2014
Housing Annual
Units Rate
6,614
28,111
52,049
2010
Families
3,765
18,388
35,393
Owner
Occupied Housing Units
41.7%
65.1%
69.6%
2010 Average
Family
SizeUnits
3.14
3.11
3.10
Renter
Occupied
Housing
53.7%
31.1%
26.0%
2014
Families
3,804
18,939
36,119
Vacant Housing Units
4.5%
3.8%
4.4%
2014
Average
Family Size
3.15
3.12
3.10
2019
Housing
Units
6,791
29,263
53,887
2019
Families
3,926
19,827
37,483
Owner
Occupied Housing Units
42.1%
65.4%
69.6%
2019
Family
SizeUnits
3.16
3.13
3.11
RenterAverage
Occupied
Housing
53.7%
31.2%
26.2%
2014-2019
Annual
Rate
0.63%
0.92%
0.74%
Vacant
Housing
Units
4.2%
3.4%
4.2%
HousingHousehold
Unit Summary
Median
Income
4,890
20,632
39,508
2000 Housing Units
2014
$80,153
$90,876
$91,897
Owner Occupied Housing Units
61.5%
72.0%
75.6%
2019
$90,040
$102,612
$104,192
Renter
Occupied
32.7%
24.1%
21.2%
Median
Home
ValueHousing Units
Vacant Housing Units
5.9%
4.0%
3.2%
2014
$296,063
$344,616
$357,560
1009 E Bidwell St, Folsom, California, 95630
2010 Housing Units
6,593
27,560
51,156
2019
$319,937
$407,105
$439,727
Rings: 1, 3, 5 mile radii
Latitude: 38.66973
Owner Occupied
42.6%
65.7%
70.6%
Per Capita
Income Housing Units
Renter Occupied Housing Units
52.1%
29.6% Longitude: -121.15506
24.7%
2014
$40,221
$40,532
$42,811
15.3%
mile
3 miles
5 4.7%
miles
Vacant Housing Units
4.7%
2019
$45,820
$46,872
$49,836
2014
Households
by Income
2014
Housing
Units
6,614
28,111
52,049
Median
Age
Owner Occupied
Housing Units
41.7%
65.1%
69.6%
Household
Income Base
6,314
27,030
49,760
2010
35.6
37.8
39.7
Renter Occupied Housing Units
53.7%
31.1%
26.0%
<$15,000
7.4%
6.0%
5.1%
2014
36.0
38.5
40.6
Vacant Housing
Units
4.5%
3.8%
4.4%
2019
36.1
38.7
40.7
$15,000
- $24,999
5.6%
4.8%
4.8%
2019
Housing
Units
6,791
29,263
53,887
$25,000
- $34,999
7.0%
5.4%
6.1%
Owner Occupied
Housing Units
42.1%
65.4%
69.6%
$35,000
- $49,999
12.2%
10.1%
9.8%
Renter
Occupied
Housing
Units
53.7%
31.2%
26.2%
Data Note:$50,000
Household
includes
persons not residing in group quarters. Average Household Size
is the household population
divided by total households.
- population
$74,999
14.1%
14.3%
14.5%
Persons in families
theUnits
householder and persons related to the householder by birth, marriage, or adoption.
Per Capita Income3.4%
represents the income received
by
Vacantinclude
Housing
4.2%
4.2%
$75,000 - $99,999
14.1%
13.6%
13.3%
all persons
agedHousehold
15 years and Income
over divided by the total population.
Median
$100,000
$149,999
22.3%
22.2%
21.0%
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2014 and 2019. Esri converted Census 2000 data into 2010 geography.
2014
$80,153
$90,876
$91,897
$150,000 - $199,999
11.2%
14.2%
13.6%
March
31, 2015
2019
$90,040
$102,612
$104,192
$200,000+
6.1%
9.4%
11.9%
Median Home Value
Average Household Income
$96,380
$111,346
$116,854
2014
$296,063
$344,616
$357,560
©2014 Esri
Page 1 of 7
2019
Households by Income
$439,727
2019
$319,937
$407,105
Household
Income Base
6,508
28,265
51,620
Per
Capita Income
<$15,000
6.4%
5.1%
4.2%
2014
$40,221
$40,532
$42,811
$15,000 - $24,999
3.9%
3.2%
3.2%
2019
$45,820
$46,872
$49,836
$25,000
5.3%
4.1%
4.6%
Median
Age - $34,999
Market Profile
Market Profile
$35,000 - $49,999
2010
$50,000 - $74,999
2014
2019
$75,000 - $99,999
$100,000 - $149,999
11.2%
35.6
13.1%
36.0
36.1
15.1%
9.1%
37.8
12.8%
38.5
38.7
14.0%
8.8%
39.7
12.9%
40.6
40.7
13.6%
23.6%
22.2%
20.8%
$150,000 - $199,999
13.6%
17.2%
16.5%
Data Note:$200,000+
Household population includes persons not residing in group quarters. Average Household Size
is the household population
divided by total households.
7.8%
12.4%
15.3%
Persons in families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income represents the income received by
Average Household Income
$110,226
$128,533
$135,989
all persons aged 15 years and over divided by the total population.
2014
Occupied
Housing
Units by
Source:
U.S. Owner
Census Bureau,
Census
2010 Summary
FileValue
1. Esri forecasts for 2014 and 2019. Esri converted Census 2000 data into 2010 geography.
Total
<$50,000
2,758
18,289
1.0%
1.6%
36,220
March 31, 2015
1.2%
11