Macaroni Grill Ground Lease | Charlotte, NC

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Macaroni Grill Ground Lease | Charlotte, NC
Net Leased Investment Services
Subject Property
OFFERING MEMORANDUM
Exclusively Offered by Cushman & Wakefield
Macaroni Grill Ground Lease | Charlotte, NC
Sam Young
Investment Sales
+1 704 887 3024
[email protected]
David Hoppe
Investment Sales
+1 704 335 4446
[email protected]
Confidentiality Agreement
The material contained in this Offering
Memorandum is confidential, furnished solely
for the purpose of considering the acquisition of
8620 Research Drive, Charlotte, NC and is not to
be used for any other purpose or made available
to any other person without the express written
consent of Cushman & Wakefield. The material
is based in part upon information obtained from
the Seller and in part upon information obtained
by Cushman & Wakefield from sources it deems
to be reliable. Summaries contained herein of
any legal documents are not intended to be
comprehensive statements of the terms of such
documents, but rather only outlines of some
of the principal provisions contained herein.
Prospective purchasers should make their own
investigations, projections, and conclusions.
It is expected that prospective investors will
conduct their own independent due diligence
concerning the Property, including such
engineering inspections as they deem necessary
to determine the condition of the Property and
the existence or absence of any potentially
hazardous material used in the construction
or maintenance of the building or located at
the land site. No representations expressed or
implied are made as to the foregoing matters by
Cushman & Wakefield, or assignees.
Table of Contents
INVESTMENT SUMMARY
Investment Advisors
TENANT INFORMATION
Sam Young
+1 704 887 3024
[email protected]
David Hoppe
+1 704 335 4446
[email protected]
LOCATION OVERVIEW
SUBMARKET OVERVIEW
DEMOGRAPHICS
03
04
05
09
10
Romano’s Macaroni Grill
CHARLOTTE, NC
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INVESTMENT SUMMARY
Net Lease Investment Services
Property:
Macaroni Grill Ground Lease
Tenant:
Mac Acquisition, LLC
Location:
8620 Research Drive, Charlotte, NC
Improvements:
6,467 SF Restaurant
Year Built:
2000
Land Size:
3.07 acres
Building Size:
6,467 SF
Lease Term:
10 years (July 1, 2016 - June 30, 2026)
Options to Extend:
Macaroni Grill exercised two (5) year renewal
options, providing 10 years of firm term.
Rent Commencement:
July 1, 2016 (New 10 year firm term)
Lease Type:
Absolute NNN Ground Lease. Tenant pays all
taxes, insurance, maintenance and repairs to the
premises.
Rental Increases:
10% escalations every 5 years during the term
and options to extend
Rent Schedule:
Asking Price:
Investment Highlights
• Absolute NNN Ground Lease with 10% Rental Increases
The tenant is responsible for taxes, insurance, maintenance and all
repairs to the improvements. The rent increases 10% at the beginning of
the 6th year and the beginning of each option to renew.
• New 10 Year Lease Extension
Macaroni Grill has exercised two (2) - five (5) year renewal options
creating 10 years of firm term beginning July 2016 with two (2) - five (5)
year additional options to renew.
Period
Annual Rent
Monthly Rent
Years 1-5
$157,625
$13,135
Years 5-10
$173,385
$14,449
5 Year Option 1
$190,725
$15,894
5 Year Option 2
$209,797
$17,483
$2,425,000 (6.50% CAP)
• Leading Italian-Themed Restaurant Chain
Macaroni Grill has grown to nearly 150 company-owned locations in 33
states, plus 25 franchise locations. The company generates more than
$300 million in US sales and another $40 million through its franchise
operations.
• Long-Term Operating History at Subject Location
Macaroni Grill has successfully operated at this location since 2000 and
demonstrates continued commitment by executing a 10 year extension
agreement and making plans for capital improvements to the facility.
• Exceptional Daytime Employment and Demographics
Subject property is located in a submarket commonly called University
City. University City is Charlotte’s 2nd largest employment center with
73,000 employees, 23 Fortune 500 companies represented and 11 million
square feet of office space. University City’s area population exceeds
180,000 residences with the median age being 29.5.
• Large 3.07 Acre Parcel and High-Quality Improvements
The large land parcel has over 120 parking spaces and a substantial brick
and stone building containing approximately 6,467 SF of space, enhancing
residual value.
Romano’s Macaroni Grill
CHARLOTTE, NC
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TENANT INFORMATION
ABOUT RAMANO’S MACARONI GRILL
Founded in 1988, Romano’s Macaroni Grill is a leading casual Italian
restaurant with more than 146 locations worldwide. Working in open
kitchens, Macaroni Grill chefs prepare Italian classics like Chicken
Scaloppine and signature items such as Penne Rustica, as well as grilled
specialties, fresh seafood, crisp salads, brick oven pizzas and numerous
pasta dishes. The menu is complemented by one of the most extensive
wine lists in casual dining, including house wine poured on the honor
system, where applicable.
Romano’s Macaroni Grill, based in Houston, TX, is owned by Phoenixbased Redrock Partners, LLC. The company is led by three industry
veterans: CEO John Gilbert, Dean Riesen, who will serve as chairman,
and investor Dick Monfort, owner/chairman and CEO of the Colorado
Rockies. Macaroni Grill currently operates 146 locations across 33
states with a total annualized revenue of approximately $300 million.
Romano’s generates $40 million from the franchise of 25 locations in
the U.S. and in eight other countries.
Romano’s Macaroni Grill
CHARLOTTE, NC
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LOCATION OVERVIEW
Macaroni Grill
The property is located at 8620 Research
Drive, Charlotte, NC just off of WT Harris
Blvd (63,000 VPD) and Interstate 85
(76,000 VPD). The University Research
Park is approximately 9 miles and 15
minutes northeast of Charlotte’s CBD.
Romano’s Macaroni Grill
CHARLOTTE, NC
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SURROUNDING RETAIL OVERVIEW
Romano’s Macaroni Grill
CHARLOTTE, NC
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LOCATION OVERVIEW
University Research Park
University Research Park (URP), located 9 miles northeast
of Charlotte City Center, has become one of the nation’s
largest university research parks. The park has over 10
million square feet, 80 buildings and 198 different occupant
employers. URP is the second largest employment center
within the second largest retail center in the region. Its
30,000 employees range from back office support to
corporate headquarters and research facilities. Superior
utility infrastructure with dual redundant power and
extensive fiber infrastructure make University Research
Park especially attractive to data centers and research
intensive businesses who rely on uninterrupted power.
Significant
Employers in URP
# of Employees
in Park
Wells Fargo
10,000
Areva, AON
Hewitt, Siemens,
Wainwright
7,000
TIAA
2,500
Convergys
1,600
IBM
1,300
HP
900
Electrolux
900
AXA
700
Romano’s Macaroni Grill
CHARLOTTE, NC
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LOCATION OVERVIEW
University Research Park
2,500 Employees
3,000 Employees
26,000 Students
900 Employees
500 Employees
900 Employees
7,000 Employees
1,300 Employees
400 Employees
Worthington Luxury
Apartments
300 Units
10,000 Employees
Romano’s Macaroni Grill
CHARLOTTE, NC
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LOCATION OVERVIEW
University Submarket
The University area of Charlotte, NC is home to around
180,000 people. It is considered a dominant retail
corridor with over 4.8 million square feet and is served
by a number of national and regional retailers including
Walmart Supercenter, Sam’s Club, Harris Teeter, Dick’s
Sporting Goods, and TJ Maxx. Also, the first and only
IKEA in the Carolinas is located in the University area.
Along with the University of North Carolina at Charlotte,
other attractions along University City’s outskirts
include Charlotte Motor Speedway and Concord Mills
Mall (1.4 MSF & 200 stores).
Charlotte Submarket
Charlotte is the second largest financial center in
the nation, with more than $2.16 trillion in assets,
behind only New York. The Charlotte area’s largest
employers represent many sectors, including health
care; government services; education; banking and
finance; transportation; retail; telecommunications; and
manufacturing. Charlotte, also known as the Queen
City, is ranked the No. Six city in the U.S. for having nine
Fortune 500 companies headquartered in the area. It
also is home to operations for 328 companies listed in
the Fortune 500. Charlotte prides itself with a cultural
lineup that includes nationally-recognized museums
and the Blumenthal Performing Arts Center that houses
a symphony orchestra, opera, theater, and dance
companies. The region is also home to the NASCAR
Hall of Fame, NBA’s Charlotte Bobcats, NFL’s Carolina
Panthers as well as the Lowes Motor Speedway.
Romano’s Macaroni Grill
CHARLOTTE, NC
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DEMOGRAPHICS OVERVIEW
RADIUS
1 MILE
3 MILE
5 Mile
2020 Projection
5,661
89,851
203,733
2015 Estimate
5,040
80,497
183,029
2010 Census
4,285
70,590
162,236
Growth 2015 - 2020
12.32%
11.62%
11.31%
Growth 2010 - 2015
17.62%
14.03%
12.82%
2020 Projection
2,725
35,999
76,664
2015 Estimate
2,428
32,243
68,783
2010 Census
2,082
28,442
61,114
Growth 2015 - 2020
12.23%
11.65%
11.46%
Growth 2010 - 2015
16.62%
13.36%
12.55%
Owner Occupied
308
13,433
37,549
Renter Occupied
2,121
18,809
31,235
2015 Households by HH Income
2,427
32,243
68,782
Income: <$25,000
487
7,503
14,664
Income: $25,000 - $50,000
808
9,626
19,911
Income: $50,000 - $75,000
480
6,151
13,142
Income: $75,000 - $100,000
383
3,961
9,199
Income: $100,000 - $125,000
87
2,110
5,057
Income: $125,000 - $150,000
87
860
2,427
Income: $150,000 - $200,000
90
1,305
2,820
Income: $200,000+
5
727
1,562
2015 Avg Household Income
$57,321
$61,898
$64,549
2015 Med Household Income
$44,647
$46,365
$49,727
Population
Households
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CHARLOTTE, NC
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