Cracker barrel - Capital Pacific

Cracker
barrel
Brand new corporate
ground lease
For more info on this opportunity please contact:
JOE CACCAMO
CHRIS KOSTANECKI
2302 S. First Street, Lufkin, TX 75904
ZEB RIPPLE
CHRIS PETERS
[email protected] | (415) 274-7394
CA BRE# 01191110
[email protected] | (415) 274-2702
CA BRE# 01242540
Capital Pacific collaborates. Click here to meet the rest of our San Francisco team.
[email protected] | (415) 274-2701
CA BRE# 01002010
[email protected] | (415) 274-2703
CA BRE# 01339983
In conjunction with TX Licensed broker:
Steve Sieling, Azur Commercial Capital, LLC
(214) 888-8262 | [email protected]
8150 North Central Expressway Suite M2040
Dallas, TX 75206
BRAND NEW ABSOLUTE CORPORATE GROUND LEASE WITH COVETED
CRACKER BARREL AT MAJOR INTERSECTION IN LUFKIN, TX
PRICE: $2,400,000
CAP: 5.00%
Investment Highlights
RENTABLE SF. . . . 8,960 SF
PRICE PER SF. . . . $267.86
LAND AREA. . . . . . 1.89 Acre
LEASE TYPE. . . . . . NNN Ground Lease
EXTREMELY ACCESSIBLE SITE WITH HIGH TRAFFIC COUNTS
Site is at the SWC of U.S. Highway 59 (which runs from the Mexican border to Indianapolis, IN) and Whitehouse
Drive
Seven roads merge at this intersection, making it arguably the most prominent intersection in Lufkin. Traffic
counts at the intersection exceed 64,000 vehicles per day
Whitehouse Dr. is a dedicated exit from both directions on US 59, which makes the site extremely accessible and
convenient for both northbound and southbound traffic alike. Accessibility and exposure to 3 major vehicular
arteries (US 59, Whitehouse, and Daniel McCall) makes this property uniquely dynamic and visible
NOTABLE TENANTS IN SURROUNDING AREA
Site is across the street from an approximately 220,000 SF Walmart Supercenter (open for 10 years) and is
diagonally across from Sam’s Club
Other notable tenants in immediate proximity include: Academy Sports, Hobby Lobby, Belk, Dollar Tree,
Starbucks, Best Buy, Old Navy, Ross, The Home Depot, Target, JC Penney, Tractor Supply and numerous
casual dining and fast food concepts
LEASE HIGHLIGHTS
Rent commencement/store opening was November 10, 2014
Absolute NNN ground lease: zero landlord responsibilities
10-year primary term corporate lease
Lease features 10% annual escalations through primary term and at start of each of four (4) fiveyear option periods, if exercised
CRACKER BARREL | 2
Core Characteristics
CRACKER BARREL HAD
REVENUES EXCEEDING
$2.5 BILLION IN 2012
translates to
STABLE TENANT
TENANT HIGHLIGHTS
Cracker Barrel is publicly traded on NASDAQ (CBRL), had revenues exceeding $2.5 billion in 2012, and has
more than 630 restaurants in 42 states. Cracker Barrel was recently named one of Forbes Magazine’s “100 Most
Trusted Companies in the United States”
ABOUT LUFKIN
Lufkin is the largest metropolis between Houston (120 miles) and Tyler (84 miles).
This location boasts a population of more than 23,000 people within 3 miles with average household incomes
exceeding $64,000
Lufkin, named the “#1 Micropolitan City in Texas,” is home to a thriving economy bolstered by a new $700 million
facility, Pinecrest Energy Center, developed by Calgary-based Pinecrest Energy (a major gas-oil exploration
company)
Angelina College (enrollment more than 5,900 students), immediately to the south of Cracker Barrel, provides
an attractive, “built-in” business generator
CRACKER BARREL | 3
HIGH TRAFFIC COUNTS
NOTABLE TENANTS IN THE AREA
Seven roads merge at this prominent intersection making it
arguably the most prominent intersection in Lufkin. Traffic
counts at the intersection exceed 64,000 vehicles per day.
Site is across street from approximately 220,000 SF Walmart
Supercenter that has been open for 10 years and is diagonally
across from Sam’s Club
rive
eD
g
olle
C
287
S 1st
H&R BLOCK
t
Stree
BUS
Daniel McCall Drive
59
LUFKIN MALL
S 1st Street
38,000 DAILY
e
lan
Tu
59
SOUTHLOOP CROSSING
26,000 DAILY
ve
Dri
287
59
HOUSTON
Whitehouse Drive
Brentwood Drive
ILY
DA
rive
D
od
o
ntw
Bre
Tu
ve
Dri
000
28,
e
lan
Anderson
Elementary
stnu
he
SC
t
ree
t St
59
287
CRACKER BARREL | 4
Income & Expense
PRICE
$2,400,000
Price Per Square Foot:
$267.86
Capitalization Rate:
5.00%
Total Rentable Area (SF):
8,960
Lot Size (Acres):
STABILIZED INCOME
Scheduled Rent
1.89
Per Square Foot
$13.39
$120,000
LESS
Per Square Foot
Taxes
NNN
$0.00
Insurance
NNN
$0.00
Structural Reserves
NNN
$0.00
EQUALS NET OPERATING INCOME
$120,000
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
CRACKER BARREL | 5
Rent Roll
TENANT INFO
Tenant Name
Cracker Barrel
Totals:
LEASE TERMS
Sq. Ft.
8,960
Term
RENT SUMMARY
Current Rent Monthly Rent
11/10/14
11/9/19
11/10/19
Option 1
$10,000
$120,000
11/9/24
$11,000
$132,000
11/10/24
11/9/29
$12,100
$145,200
Option 2
11/10/29
11/9/34
$13,310
$159,720
Option 3
11/10/34
11/9/39
$14,641
$175,692
Option 4
11/10/39
11/9/43
$16,105
$193,261
$10,000
$120,000
8,960
$120,000
Yearly Rent
$120,000
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
CRACKER BARREL | 6
Tenant
ABOUT CRACKER BARREL
Cracker Barrel restaurants are aimed at the family and casual dining
market as well as retail sales. The chain also advertises to people
traveling on the interstate highways, as the majority of its locations are
close to highway exits. The company has promoted its cost controls
to investors, the company has stated its goal to keep employee
turnover low, to provide better trained staff. Since the 1980s, the firm
has offered a formal training program with benefits for progressing
through it to all of its employees.
NUMBER OF EMPLOYEES
72,000
2013 REVENUE
$2.68 Billion
NUMBER OF LOCATIONS
600+
The number of combined restaurants and stores owned by Cracker
Barrel increased between 1997 and 2000, to more than 420 locations.
From the late 1990s to the mid-2000s, the company focused on
opening new locations in residential areas to attract local residents
and workers as customers. By 2011, Cracker Barrel had opened more
than 600 restaurants in 42 states.
CRACKER BARREL | 7
In the News
LUFKIN OFFICIAL: CRACKER BARREL OPENING IN NOVEMBER
Posted: Jul 17, 2014 10:12 AM PDT
CREWS START CLEARING LAND FOR PROPOSED LUFKIN CRACKER
BARREL
By Caleb Beames
KLTV.COM
LUFKIN, TX (KTRE) East Texas residents will not have to wait long to get some homestyle cooked food from one of the nation’s favorite dinner chains.
LUFKIN, TX (KTRE) Crews have started clearing the land for Lufkin’s proposed Cracker Barrel
restaurant, which will be located in Whitehouse Drive near Burger King
and Taco Bueno.
Lufkin officials have confirmed that Cracker Barrel will be open in
three to four months.
“Their representatives have told us early November is when they
plan on opening,” said Inspections Director Dale Allred. “This is their
timetable not ours.”
On May 9, City Manager Paul Parker confirmed that the chain had
been approved for a building permit.
In late May, crews started clearing land for the restaurant that will
be located at the intersection of Whitehouse and Daniel McCall near
Burger King and Taco Bueno.
On May 7, Cracker Barrel Old Country Store was named to “Forbes”
magazine’s 100 Most Trustworthy Companies list. The company has
more than 600 stores in 42 states, and the first Cracker Barrel Country
Store opened in Lebanon, Tennessee in 1969, according to the
company’s Website.
Dale Allred, the director of inspection services for the City of Lufkin, said
Friday that although Cracker Barrel’s building permit has been approved,
the company has not gone on record to indicate which contractor it will
use for the restaurant’s construction.
After Cracker Barrel files a contractor bond with the City of Lufkin, they
will be able to break ground for the restaurant, Allred said.
Earlier this month, Lufkin City Manager Paul Parker confirmed that the
Cracker Barrel restaurant chain has been approved for a building permit.
“They have applied for a building permit,” Parker said. “We have made all
the comments on it, and it is to the point where they can pick up their
permit and start work in the very near future.”
The restaurant will be located on Whitehouse Drive near Burger King
and Taco Bueno. Parker said he didn’t know when construction on the
new restaurant is going to start.
CRACKER BARREL | 8
Regional Map
ion
t
a
c
o
L
TX
Lufkin
TRAFFIC
COUNTS ARE
64,000 AT THIS
INTERSECTION
CRACKER
BARREL
dallas
Shreveport
Tyler
Dallas
2 hours, 57 Minutes
168 Miles
Tyler
1 hour, 42 Minutes
84.2 Miles
Lufkin
Austin
Austin
3 hours, 47 Minutes
218 Miles
Shreveport
2 hours, 4 Minutes
118 Miles
Houston
2 hours, 4 Minutes
120 Miles
houston
CRACKER BARREL | 9
Location & Demos
LUFKIN, TX OVERVIEW
Named the #1 Micropolitan city in Texas by Polycom Corp., Lufkin
is the largest community between Houston to the South and Tyler
to the North and serves a broad service area for jobs, education,
entertainment, governmental services, medical services, and retail
shopping. This creates a daytime population estimated at over
100,000 and a service sector to support this size of community.
Lufkin is also a regional attraction that brings nearly one million
visitors each year and is considered the regional hub in East Texas,
which includes 12 surrounding counties.
The economy in Lufkin is thriving and has future plans to continue
the healthy economy. Recently, the city of Lufkin approved the
building of a $700 million facility for Pinecrest Energy Center. The
project is projected to generate $1.4 billion in economic output
and $379 million in salaries for area workers. Additionally, Lufkin
Industries, an oilfield services company, has roots in the area
exceeding a century, was bought by General Electric in 2013 for
$3.3 billion, indicating a long and lucrative future for the area and
the company.
POPULATION
1-Mile
3-Mile
5-Mile
2,549
2,679
2,836
23,476
23,935
24,691
44,494
45,095
46,282
1-Mile
3-Mile
5-Mile
$64,980
$43,471
$64,336
$43,867
$57,076
$38,124
2010
2013
2018
2013 HOUSEHOLD INCOMES
Average
Median
TOP EMPLOYERS IN LUFKIN
Employer
Lufkin Industries
Lufkin ISD
Pilgrim’s Pride
Brookshire Brothers/Polk Oil
# of Employees*
1,745
1,500
1,466
1,396
*Approximate
CRACKER BARREL | 10
10-10-11
Approved by the Texas Real Estate Commission for Voluntary Use
Texas law requires all real estate licensees to give the following information about
brokerage services to prospective buyers, tenants, sellers and landlords.
Information About Brokerage Services
B
efore working with a real estate broker, you
should know that the duties of a broker
depend on whom the broker represents. If
you are a prospective seller or landlord
(owner) or a prospective buyer or tenant (buyer), you
should know that the broker who lists the property for
sale or lease is the owner’s agent. A broker who acts
as a subagent represents the owner in cooperation
with the listing broker. A broker who acts as a buyer’s
agent represents the buyer. A broker may act as an
intermediary between the parties if the parties
consent in writing. A broker can assist you in locating
a property, preparing a contract or lease, or obtaining
financing without representing you.
A broker is
obligated by law to treat you honestly.
intermediary. The written consent must state who will
pay the broker and, in conspicuous bold or underlined
print, set forth the broker’s obligations as an
intermediary. The broker is required to treat each
party honestly and fairly and to comply with The
Texas Real Estate License Act. A broker who acts as
an intermediary in a transaction:
IF THE BROKER REPRESENTS THE OWNER:
The broker becomes the owner’s agent by entering
into an agreement with the owner, usually through a
written - listing agreement, or by agreeing to act as a
subagent by accepting an offer of subagency from the
listing broker. A subagent may work in a different real
estate office. A listing broker or subagent can assist
the buyer but does not
represent the buyer and
must place the interests of the owner first. The buyer
should not tell the owner’s agent anything the buyer
would not want the owner to know because an
owner’s agent must disclose to the owner any
material information known to the agent.
(4) may not disclose any confidential information or
any information that a party specifically instructs the
broker in writing not to disclose unless authorized in
writing to disclose the information or required to do so by
The Texas Real Estate License Act or a court order or if
the information materially relates to the condition of the
property.
IF THE BROKER REPRESENTS THE BUYER:
The broker becomes the buyer’s agent by entering
into an agreement to represent the buyer, usually
through a written buyer representation agreement. A
buyer’s agent can assist the owner but does not
represent the owner and must place the interests of
the buyer first. The owner should not tell a buyer’s
agent anything the owner would not want the buyer
to know because a buyer’s agent must disclose to the
buyer any material information known to the agent.
IF THE BROKER ACTS AS AN INTERMEDIARY:
A broker may act as an intermediary between the
parties if the broker complies with The Texas Real
Estate License Act. The broker must obtain the written
consent of each party to the transaction to act as an
(1) shall treat all parties honestly;
(2) may not disclose that the owner will accept a
price less that the asking price unless authorized in
writing to do so by the owner;
(3) may not disclose that the buyer will pay a
price greater than the price submitted in a written offer
unless authorized in writing to do so by the buyer; and
With the parties’ consent, a broker acting as an
intermediary between the parties may appoint a person
who is licensed under The Texas Real Estate License
Act and associated with the broker to communicate
with and carry out instructions of one party and
another person who is licensed under that Act and
associated with the broker to communicate with and
carry out instructions of the other party.
If you choose to have a broker represent you,
you should enter into a written agreement with the
broker that clearly establishes the broker’s obligations
and your obligations. The agreement should state
how and by whom the broker will be paid. You have
the right to choose the type of representation, if any,
you wish to receive. Your payment of a fee to a broker
does not necessarily establish that the broker
represents you. If you have any questions regarding
the duties and responsibilities of the broker, you
should resolve those questions before proceeding.
Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.
Buyer, Seller, Landlord or Tenant
Date
Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint
regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 , 512-936-3000 (http://www.trec.texas.gov)
TREC No. OP-K