Burger King Wauseon, OH | Toledo MSA

offering memorandum.
Burger King
Wauseon, OH | Toledo MSA
$1,815,000
6.00% CAP Rate
Absolute NNN
••Long-Term
Lease
••
to Walmart
••Outparcel
Supercenter
••Established Tenant since 1996
is Largest Operator of
••Tenant
Burger King Restaurants in
Burger King Recently Extended
its Term - 10 Years Remaining
the U.S. - Carrols Operator
••
Escalations every
••Rental
Three Years
Over 650 Burger King Locations
across 20 States
FILE PHOTO
This property is listed in conjunction with Ohio-licensed real estate broker Steiner Brokers Services, LLC.
www.maffiateam.com
Disclaimer
Newmark Cornish & Carey (“Broker”) has been retained on an exclusive basis to
market the property described herein (“Property”). 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 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.
Table of Contents
Property Information
1
Tenant Information
2
Site Plan
3
Aerials
4
About the Area
6
Demographics
8
Property walk-throughs are to be conducted by appointment only. Contact Broker
for additional information.
Michael Maffia
Senior Managing Director
415.445.5144
[email protected]
CA RE License #01340853
Putnam Daily
Transaction Manager
415.445.5107
[email protected]
CA RE License #01750064
www.maffiateam.com
Property Information
Location
The property is located at 475 East Airport Highway in Wauseon,
Ohio.
Annual Rent
Year
Annual Rent
Return
1
(Current Income)
$106,091
n/a
2-4
(Capitalized Rent)
$108,860
6.00%
Lot Size
5-7
$111,860
6.16%
Approximately 1.13 acre, or 49,223 square feet.
8-11
$114,860
6.33%
12-16 (Option 1)
$149,050
8.21%
17-21 (Option 2)
$166,936
9.20%
Improvements
An approximately 2,934 square foot quick-service restaurant
building with drive thru for Burger King. There is ample parking on
site.
Lease
Leased to Carrols, LLC for 20 years from March 1, 1996 to February
29, 2016 at a current annual net rent of $106,091. The lessee recently
exercised two of its five-year options which will begin on March
1, 2016 and expire on February 28, 2026, with an initial annual net
rent of $108,600. There are two five-year options to renew the lease
remaining. The annual rent increases every three years during the
current term. The annual rent also increases at the start of each
remaining option period. The lease is absolute net, with the tenant
responsible for all taxes, insurance, and maintenance, including roof
and structure.
*The price is capitalized on the rent effective in year 2 at the start
of the extended term. Seller will escrow any difference in rent at
close of escrow.
Price: $1,815,000 (6.00% Return)
Financing
The property will be delivered free and clear of permanent
financing.
Percentage Rent
Tenant shall pay as additional rent percentage rent an amount
by which 6% of gross sales for the lease year or partial lease year
exceeds the amount of annual rent due for such lease year or
partial lease year.
Right of First Refusal
Tenant shall have the right of first refusal to purchase the property
on the same terms and conditions as those of any bona fide offer
received by the landlord within 30 days after receiving notice of
such offer.
1
Tenant Information
Carrols, LLC is a subsidiary of Carrols Restaurant Group, which is the largest Burger King franchisee in the world with
over 650 Burger King locations across 20 U.S. states. The company has operated Burger King restaurants since 1976 and is
headquartered in Syracuse, New York.
In June 2012, Carrols acquired 278 Burger King locations from Burger King for approximately $150 million. In exchange, the
Burger King parent, Burger King Corporation took a 28.9% stake in the company. The transaction involved a line of credit
that would be used by Carrols to renovate more than 450 of its stores.
Burger King is a global chain of hamburger fast food restaurants headquartered in unincorporated Miami-Dade County,
Florida. Founded in 1954, Burger King is the second largest fast food hamburger chain in the world. The original “Home of the Whopper”, Burger
King’s commitment to premium ingredients, signature recipes and family-friendly dining experiences is what has defined the brand for more than
50 successful years.
In late 2010, 3G Capital of Brazil acquired a majority stake in BK in a deal valued at $3.26 billion. The new owners promptly initiated a
restructuring of the company to reverse its fortunes. 3G, along with partner Berkshire Hathaway, eventually merged the company with Canadianbased doughnut chain Tim Hortons under the auspices of a new Canadian-based parent company, Restaurant Brands International. Every day,
more than 11 million guests visit one of the more than 13,000 Burger King restaurants located throughout 79 countries; of these, 66 percent are in
the United States and 99 percent are privately owned.
2
Site Plan
DRIVE
THRU
2,934 SF
SIGN
AIRPORT HIGHWAY
3
Aerial | Close Up View
Sky
Cinema
E Airport Hwy (8,860 AADT)
N Shoop
00
Ave (15,8
AADT)
Aerial | Distant View
Fulton County
Fairgrounds
E Airport Hwy (8,860 AADT)
Ironwood
Golf Course
N Shoop Ave (15,800 AADT)
DOWNTOWN
Wauseon
High School
Wauseon
Elementary
Wauseon
Primary
School
Fulton County
Health Center
5
About the Area
General Overview
Wauseon is a city and the county seat of Fulton
County, with a population of 7,303 which has
grown 3.4% since 2000. The population growth
rate is higher than the state average rate and
its median household income has also been
growing faster than the state average. The city
provides both new and established residential
areas which are clean, safe, and family friendly.
The economy in Wauseon’s Fulton County is
led by the nursing care facilities industry, which
accounts for 2% of the jobs in the area. Other
top employment sectors include commercial
banking, supermarkets and other grocery.
About the Area
Site Information
The subject property is strategically situated near the northwest intersection
of Airport Highway and North Shoop Avenue approximately two miles north of
downtown Wauseon. Both Airport Highway and North Shoop Avenue are major
thoroughfares that traverse throughout Wauseon and experience a collective
annual average daily traffic count of 24,660 vehicles at the site. Convenient
access to Interstate 80 is less than two miles north of the property.
The property benefits from its location in a dense retail corridor and as
outparcel to a Walmart Supercenter, with Skye Cinemas and Grasshopper El
Chapulin occupying the pad sites on the periphery. Directly across the subject
property is a retail center anchored by Ace Hardware and tenanted by Fortune
Kitchen, and Red Rambler Coffees. Dairy Queen, Great Clips, Pizza Hut and
GameStop occupy the pad sites and shops buildings within the center. Rite
Aid Pharmacy occupies the southeast quadrant of the intersection. Directly
south Rite Aid are numerous pad sites tenanted by national credit tenants such
as Taco Bell, Wendy’s and McDonald’s. Approximately one mile south of the
property is a shopping center anchored by Chief Supermarket. The groceranchored center includes tenants such as Goodwill, Dollar General, Rent-ACenter and Little Caesars Pizza. Additionally, Wauseon Elementary School (479
students), Wauseon Middle School (435 students) and Wauseon High School
(657 students) are all within a one mile radius from the subject property.
Demographics
475 E Airport Hwy, Wauseon, OH 43567
5 miles
10 miles
15 miles
2010 Total Population
11,823
29,218
68,203
2015 Total Population
11,699
29,061
67,753
2020 Total Population
11,579
28,884
67,438
2015
$59,869
$62,193
$61,452
2020
$68,596
$70,896
$69,879
2015
$127,336
$127,790
$125,428
2020
$169,245
$168,404
$157,300
2015
$22,967
$23,834
$23,729
2020
$26,391
$27,238
$27,050
Population Summary
Average Household Income
Median Home Value
Per Capita Income
Top Employers in Fulton County, Ohio
# of Employees
Sauder
2,400
North Star BlueScope Steel
360
NW State Community College
300
Haulotte Group/Bil-Jax
240
TRW Automotive
204
8
FILE PHOTO
901 Mariners Island Boulevard, Suite 120
San Mateo, CA 94404
Michael Maffia
Senior Managing Director
415.445.5144
[email protected]
CA RE License #01340853
Putnam Daily
Transaction Manager
415.445.5107
[email protected]
CA RE License #01750064
www.maffiateam.com