Bojangles - Southpace Properties

Offering Memorandum
Bojangles’
Famous Chicken 'n Biscuits
485 Southland Dr, Hoover, AL 35226
SOUTHPACE PROPERTIES, INC.
www.southpace.com
OFFFERED EXCLUSIVELY BY:
Bryan Holt, CCIM
Southpace Properties, Inc.
300 Richard Arrington Jr. Blvd. N.
Suite 900, Title Building Birmingham, AL 35203
205‐326‐2222
[email protected]
TABLE OF CONTENTS
EXECUTIVE SUMMARY
◦ INVESTMENT HIGHLIGHTS
◦ FINANCIAL HIGHLIGHTS
◦ COMPANY OVERVIEW
PROPERTY
◦ AREA MAP
◦ SITE AERIAL
◦ SITE PLAN
MARKETY OVERVIEW
◦ HOOVER, AL
◦ DEMOGRAPHICS
All information furnished with respect to the subject matter has been obtained from sources deemed reliable.
No representation or warranty as to accuracy thereof is made and such information is submitted subject to
change in price, omissions, errors, prior sale or withdrawal without notice.
Cap Rate: 5.50%
Purchase Price: $2,536,571
Southpace Properties, Inc. is pleased to offer
for sale to qualified investors a new xxxxxx
located in Hoover, AL, the largest city in the
Birmingham, AL MSA.
The subject property is a new freestanding
3,827sf build‐to‐suit
on a 43,755sf lot.
The tenant opened November 2014 and is
operating under a 15‐year corporate
guaranteed absolute NNN lease with Three (3),
Five (5) year options. Rent increases 1.25%
annually throughout the primary term and
option periods.
The property is located in one of the busiest
commercial corridors in the Birmingham area.
Bojangle is located directly off I‐65
(118,110vpd) at Highway 31 (37,260vpd) with
signalized access to Southland Dr. Surrounding
tenants, Bancorp South and Northern Tool and
Equipment, also opened in 2014.
INVESTMENT HIGHLIGHTS
Investment Highlights
 New Bojangles in Hoover, AL (Birmingham MSA)
 Publically Traded Company (NASDAQ: BOJA)
 15‐Year Corporate Guaranteed Lease
 Absolute NNN with no landlord responsibility
 Three (3), Five (5) Year Options
 Rent Commencement Date: 9/30/2014
 1.25% Annual Rent Increases
 Located at the intersection of I‐65 and Hwy 31
 144,000 people in a 5‐mile radius
 108,000 employees in a 5‐mile radius
FINANCIAL OVERVIEW
BOJANGLES‘ RESTAURANTS, INC.
485 Southland Dr
Hoover, AL 35226
Offering Summary:
NOI
CAP Rate
Price Rentable SF
Price/SF
Year Built
Lot Size (sf)
Type of Ownership
$ 139,511 5.50%
$ 2,536,571 3,827 $ 663 2014
43,755 Fee Simple
RENT SCHEDULE
Tenant Summary:
FINANCIAL HIGHLIGHTS
Bojangles Inc.
NASDAQ: BOJA
Corporate
NNN
15 Years
4/25/2014
9/30/2014
4/24/2029
14 years
1.25%
(3), Five (5) Years
Primary Term
Tenant Trade Name
Ownership
Lease Guarantor
Lease Type
Lease Term
Lease Commencement Date
Rent Commencement Date
Lease Expiration Date
Term Remaining on Lease
Annual Rent Increases
Options Remaining
Lease Year
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Annual Rent
$ 139,511.40 $ 141,255.29 $ 143,020.98 $ 144,808.75 $ 146,618.86 $ 148,451.59 $ 150,307.24 $ 152,186.08 $ 154,088.40 $ 156,014.51 $ 157,964.69 $ 159,939.25 $ 161,938.49 $ 163,962.72 $ 166,012.25 Monthly Rent
$ 11,625.95 $ 11,771.27 $ 11,918.42 $ 12,067.40 $ 12,218.24 $ 12,370.97 $ 12,525.60 $ 12,682.17 $ 12,840.70 $ 13,001.21 $ 13,163.72 $ 13,328.27 $ 13,494.87 $ 13,663.56 $ 13,834.35 Bojangles', Inc. is a highly differentiated and growing restaurant operator and franchisor
dedicated to serving customers high‐quality, craveable food made from our Southern recipes.
Founded in 1977 in Charlotte, N.C., Bojangles' serves menu items such as delicious, famous
chicken, made‐from‐scratch buttermilk biscuits, flavorful fixin's and Legendary Iced Tea®. At
March 29, 2015, Bojangles' had 258 company‐operated and 377 franchised restaurants,
primarily located in the Southeastern United States.
Financial Highlights for the Q1 2015 Compared to the Q1 2014
◦ System‐wide comparable restaurant sales increased 7.9%;
◦ Total revenues increased 19.2% to $114.6 million from $96.2 million;
◦ 16 new restaurants were opened ‐‐ four new company‐operated restaurants and 12 new franchised restaurants;
On May 13, 2015, and subsequent to the end of the first fiscal
quarter 2015, Bojangles' completed its underwritten initial public
offering (IPO) of 8,912,500 shares of its common stock, which
included 1,162,500 shares of common stock sold pursuant to the
full exercise of the underwriters' option to purchase additional
shares of common stock at the IPO price.
◦ Net Income of $3.4 million compared to $5.0 million;
◦ Adjusted Net Income* of $6.2 million compared to $5.0 million;
◦ Adjusted Pro Forma Diluted Net Income per Share* of $0.17 compared to $0.14; and
◦ Adjusted EBITDA* increased 16.0% to $16.9 million from $14.6 million.
Fiscal Year 2015 Guidance
◦ We anticipate the following for the 52‐week period ending on December 27, 2015:
◦ Total revenues to be between $480 million and $487 million;
◦ System‐wide comparable restaurant sales growth of low to mid‐
single digits; and
◦ The opening of 50 to 57 system‐wide restaurants consisting of 22 to 25 new company‐operated restaurants and 28 to 32 new franchised restaurants.
COMPANY OVERVIEW
(NASDAQ:BOJA)
Bojangles’ operates 9 restaurants
in the Birmingham MSA
Vestavia Hills
Exit 252
Hoover
Riverchase
Galleria
AREA MAP
485 Southland Dr.
Hoover, AL 35226
Lot Size: 43,755sf
Building Size: 3,827sf
not to scale
Green Valley
Village
Exit 252
SITE AERIAL
SITE PLAN
Birmingham is the largest city in Alabama with
over 1.1 million residents in the metropolitan
area. University of Alabama‐Birmingham (UAB)
drives the metro economy as the largest
employer, with more than 18,000 faculty and
staff and 18,000 students. Birmingham is a
leading banking center with both Regions and
BBVA Compass headquartered in the city. Wells
Fargo also has a regional headquarters office in
Birmingham. Birmingham‐Hoover is ranked 48th
SMSA in the country with a 6% average increase
in population growth per year.
Riverchase Galleria is consistently a top tourist
destination in the state of Alabama. Completed a
$60mm renovation in 2014, including the addition
of Von Maur department store. The attached
Wynfrey Hotel completed a $20mm and
conversion to a Hyatt Regency Birmingham with
330 rooms, a conference and convention center.
Anchoring the shopping center is Galleria Tower,
a 17‐story Class A office tower, featuring 285,000
square feet of office space and 1,500 workers.
MARKET OVERVIEW
birminghambusinessalliance.com
DEMOGRAPHICS
3 miles
5 miles
10 miles
Population
70,074
71,701
143,705
148,000
444,951
456,792
Median Household Income
2015 Median Household Income
2020 Median Household Income
2015-2020 Annual Rate
$58,588
$64,970
2.09%
$59,816
$66,906
2.27%
$49,093
$54,772
2.21%
Average Household Income
2015 Average Household Income
2020 Average Household Income
2015-2020 Annual Rate
$86,062
$96,201
2.25%
$90,945
$102,953
2.51%
$79,506
$89,743
2.45%
3,840
38,873
9,386
107,524
27,491
371,682
2015 Population
2020 Population
Data for all businesses in area
Total Businesses:
Total Employees:
DEMOGRAPHICS
For more information contact:
Bryan Holt, CCIM
205-326-2222
[email protected]