Birmingham AL

Birmingham AL - 2,794 SF
$2,785,000 • 5.50 % Cap Rate
Investment Highlights
• Brand new construction completed
November 2014
• 20 year NNN corporate lease that
commenced in November 2014 with 7%
rent bumps every 5 years
• Signalized corner location just off I-59 with
close proximity to the international airport
and downtown district
• Well positioned within trade area at a high profile intersection adjacent to Walmart
• Over 50,000 cars per day in front of property
• Over 104,000 residents in a 5 mile radius of property
For investment information:
J. Tyson Glasser, CCIM • Investment Sales Advisor
[email protected] • 864.263.5427 o • 404.435.6312 c
Jack Jamison, Broker-In-Charge
550 S. Main Street, Suite 300 • Greenville, SC 29601
864.263.5414 o • 864.232.0160 f • www.REALTYLINKDEV.com
Investment Property
9400 Parkway East
Birmingham, Jefferson County , Alabama 35215
ATTENTION: This brochure has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of
interest in the property presented. It does not, however, purport to present all material information regarding the subject property, and it is not
a substitute for a thorough due diligence investigation. In particular, RealtyLink, LLC has not made any investigation and makes no warranty or
representation with respect to the financial condition or business prospects of any tenant or any tenant’s plans or intentions to continue or renew its
occupancy of the subject property. The information contained in this brochure has been obtained from sources we believe to be reliable; however,
RealtyLink, LLC has not conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the
accuracy or completeness of the information provided.
The RealtyLink name is a registered trademark of RealtyLink, LLC.
The RealtyLink logo is a registered service mark of RealtyLink, LLC.
Text and content © Copyright 2014 RealtyLink, LLC.
Table of Contents
Property Summary
Financial Summary
Tenant Profile
Property Photos
Site Plan
Aerial
Location Maps
Market Photos
Market Profile
Demographics
Property Summary
Location:
NW signalized corner of Parkway East and Red Lane Rd, less than 1/2 mile off I-59 exit 134 about 8 miles NE of downtown Birmingham
Land Size:
+/- 0.95 Acres
Building Size: +/- 2,794 Square Feet
Building Age:
New construction completed November 2014
Tenant/Guarantor: Hardee’s Restaurants, LLC (corporate)
Lease Type:
Absolute Triple Net
Lease Commencement: November 18, 2014
Base Lease Term:
20 years (7.0% rent bumps every 5 years)
Option Terms: 4 options at 5 years each
Landlord Responsibility: None
Tenant Responsibility: CAM, Taxes, Insurance, Utilities, HVAC, Roof, Structure, Parking Lot
Frontage:
+/- 288 feet on Parkway East and +/- 130 feet on Red Lane Rd
Signage:
All 4 sides of building, elevated pylon on Parkway East and interstate exit sign
Access: Right in/right out entrance/exit on Parkway East and all turn entrance/exit on Red Lane Rd
Parking:
+/- 37 Spaces including 2 handicap spaces
Zoning:
CB-2 (Contingency General Business District)
Declaration:
Premises are subject to Covenants, Conditions & Restrictions Agreement
Right of First Refusal:
Tenant has 20 days from receipt of landlord notice to exercise ROFR option
Traffic Counts: +/- 50,840 on Parkway East at Red Lane Rd (2013 AADT - ALDOT)
+/- 54,410 on I-59 West of Exit 134 (2013 AADT - ALDOT)
Demographics: 2014 1-Mile 3-Mile 5-Mile
Population
5,405 42,310 103,880
Households
2,270 16,419 40,532
Average HH Income
$50,140
$48,388
$50,472
Median HH Income
$39,855
$38,071
$38,056
Financial Summary
Purchase Price: $2,785,000
Estimated Base Rent:
$153,056.55
(years 1-5)
$163,770.51
(years 6-10)
$175,234.44
(years 11-15)
$187,500.85
(years 16-20)
Going In Cap Rate:
5.50% Cap Rate on 12/1/19:
5.88%
Cap Rate on 12/1/24:
6.29%
Cap Rate on 12/1/29:
6.74%
Average Cap Rate:
6.10% (years 1-20)
CAM: Tenant pays
Taxes: Tenant pays
Insurance:
Tenant pays
Administrative Fee:
None
REA Contribution:
Tenant pays
Assumable Financing: Property delivered free and clear of debt at close of escrow
Proposed Financing: 65-70% loan-to-value ($835-975K down payment)
4.0-4.25% interest rate
10 year term
25-30 year amortization
$114,662.00 annual debt service (using 65% LTV, 4.0% interest, 25 year amort.)
$38,394.55 after debt cash flow (years 1-5)
3.94% cash-on-cash return (years 1-5)
Tenant Financials:
Available from broker after execution of a confidentiality agreement
Tenant Profile
Hardee’s® is a wholly-owned subsidiary of CKE Restaurants Holdings, Inc., a privately held company
headquartered in Carpinteria, CA. Through its subsidiaries, CKE franchises and operates Hardee’s® and
Carl’s Jr.® quick-service restaurants. The CKE System includes more than 3,550 locations in 42 states and 33
countries.
Hardee’s® has built a position as one of America’s premier burger brands. Founded in 1960 by Wilber
Hardee, Hardee’s® operates or franchises more than 2,000 quick-service restaurants in 30 U.S. states and
9 countries. Today, Hardee’s® is looking for exceptional new franchise candidates throughout the MidWestern and Eastern United States.
Founded by industry pioneer Carl N. Karcher, Carl’s Jr.® restaurants have been a West Coast favorite for
more than 70 years. The Karchers soon grew their small business — eventually focusing their efforts on the
Carl’s Jr. brand, one of the first in a new breed of restaurants that today make up the quick-service restaurant
industry. With more than 1,500 restaurants, Carl’s Jr. is regarded as the place to go for premium-quality
burgers.
Since its founding in 1990, Apollo has grown to become one of the world’s largest alternative investment
managers. As of March 31, 2013, Apollo had total assets under management of $114 billion, with a team
of 644 employees located in ten offices around the world. They are contrarian, value-oriented investors
in private equity, credit, and real estate. Apollo raises, invests, and manages funds on behalf of some of
the world’s most prominent pension and endowment funds as well as other institutional and individual
investors. Apollo aquired CKE Restaurants in 2010.
Hardee’s® consistently out-delivers the competition with an innovative menu strategy that focuses on
developing premium, sit-down restaurant quality menu items. Whether it’s the 1/3-lb. 100% Black Angus
Beef Thickburger® line, Hand-Scooped Ice Cream Shakes & Malts™ or Made from Scratch™ Biscuits,
Hardee’s® provides a best-in-class menu that supports a premium franchise opportunity.
Property Photos
Site Plan
To I-59
Aerial
Subject
Property
Location Maps
Market Photos
Market Profile
Community Profile
Birmingham is the largest city in Alabama with a population currently estimated at 242,820, and a metro population of 1,079,089
(BirminghamForward.gov). The city is the county seat of Jefferson County. The pace of Birmingham’s growth during the period from 1881
through 1920 earned its nicknames The Magic City and The Pittsburgh of the South. From its founding through the end of the 1960s,
Birmingham was a primary industrial center of the South. The economy diversified during the later half of the twentieth century. Though the
manufacturing industry maintains a strong presence in Birmingham, other businesses and industries such as banking, telecommunications,
transportation, electrical power transmission, medical care, college education, and insurance have risen in stature.
Birmingham ranks as one of the most important business centers in the Southeastern
United States and is also one of the largest banking centers in the United States. In
addition, the Birmingham area serves as headquarters to one Fortune 500 company:
Regions Financial, along with five other Fortune 1000 companies. Two of the largest
soft-drink bottlers in the United States, each with more than $500 million in sales per
year, are located in Birmingham. The Buffalo Rock Company, founded in 1901, was
formerly a maker of just ginger ale, but now it is a major bottler for the Pepsi Cola
Company. The Coca-Cola Bottling Company, United, founded in 1902, is the thirdlargest bottler of Coca-Cola products in the U.S.
Birmingham ranks 13th among the largest southeastern metropolitan areas, represents 24 percent of Alabama’s total population, 31
percent of Alabama’s total payroll dollars, ranks 48th in population among the nation’s top 300 metropolitan areas, and is home to 40,680
Businesses. The Birmingham metropolitan area has consistently been rated as one of America’s best places to work and earn a living based
on the area’s competitive salary rates and relatively low living expenses. One study published in 2006 by Salary.com determined that
Birmingham was second in the nation for building personal net worth, based on local salary rates, living expenses, and unemployment rates.
Healthcare
The UAB Health System (UABHS) is a partnership between UAB and the University of Alabama Health Services Foundation (UAHSF), a
private not-for-profit medical practice made up of the faculty of the UAB School of Medicine. UABHS is governed by a board of directors
which has representatives of UAHSF, the University of Alabama Board of Trustees, and UAB administrators. The UAB president is the ex
officio chairperson of the UAB Health System. The CEO of the UABHS reports directly to the UAB Health System board and is appointed by
the chairman of the board.
UAB Hospital is the central institution of UABHS. It was formed as University Hospital in 1945 from the merger of Jefferson Hospital and
Hillman Hospital, two private hospitals in the Southside of Birmingham acquired by the University of Alabama Board of Trustees. University
Hospital was created to serve as the primary teaching hospital for the School of Medicine.
In addition UABHS manages, but does not operate, Medical West in Bessemer and Baptist Health in Montgomery. UABHS also has
affiliations with the Birmingham VA Medical Center, Children’s Hospital of Alabama, and Huntsville Hospital in Huntsville.
Market Profile
Recreation/Leisure
It has been said that Birmingham is the last major Southern city in America, where a friendly “How y’all doin’,” a hearty meal of country-fried
steak with butter beans and a true taste of Southern hospitality await visitors. Whether you’re into the history of the Civil Rights movement,
a fan of jazz music or just looking for culture and a few fun activities for the family, Sweet Birmingham is the place for you. Spend the
morning at the Birmingham Museum of Art, then have lunch at a traditional Southern tea room. Outdoor enthusiasts can tee off at the
Robert Trent Jones Golf Trail or pack a lunch and spend the day hiking and enjoying the vistas at Ruffner Mountain. A world-class zoo, the
innovative McWane Center and VisionLand, Alabama’s first amusement park, are sure to keep families entertained and on the go. In the
evening, listen to a blues show at an outdoor cafe and then spend the night at a small cozy inn or splurge for an elegant hotel. Birmingham’s
nightlife is primarily clustered around Five Points South and Lakeview, but an additional $55-million entertainment district has been
approved for an area adjacent to the BJCC. Birmingham is home to exciting attractions, fantastic, one-of-a-kind restaurants and a stock of
year ’round entertainment. Golf anyone? From the world-class Robert Trent Jones Golf Trail to unique shopping and nightlife, Birmingham
has it all. (www.tripadvisor.com)
Education
The Birmingham area is reputed to be the home of some of Alabama’s best high schools, colleges, and universities. In 2005, the Jefferson County International Baccalaureate School in Irondale, an eastern suburb of Birmingham, was rated as the No. 1 high school in America by Newsweek, a national publication. The school remains among the nation’s top 5 high schools.
In higher education, Birmingham has been the location of the University of Alabama School of Medicine (formerly the Medical College of Alabama) and the University of Alabama School of Dentistry since 1947. Since that time it has also obtained a campus of the University of Alabama, University of Alabama at Birmingham (founded circa 1969), one of three main campuses of the University of Alabama System. It is also home to three private institutions: Samford University, BirminghamSouthern College, and Miles College. Between these colleges and universities, the Birmingham area has major colleges of medicine,
dentistry, optometry, pharmacy, law, engineering, and nursing. The city has three of the state’s five law schools: Cumberland School of Law,
Birmingham School of Law, and Miles Law School. Birmingham is also the headquarters of the Southeastern Conference, one of the major
U.S. collegiate athletic conferences.
For information about Roebuck, AL., please visit http://alabama.hometownlocator.com/al/jefferson/roebuck.cfm, http://www.
realtor.com/local/Roebuck_Birmingham_AL/lifestyle
Demographics
The following pages detail the demographic data for this market
within a 1-mile, 3-mile, and 5-mile radius.