krystal - Matthews Real Estate Investment Services

KRYSTAL
3710 MCFARLAND BLVD, TUSCALOOSA, AL 35405
OFFERING MEMORANDUM
CO N F ID EN TI AL I TY & D I S C L A I M E R S TATE M E NT
This Of fering Memorandum contains select infor mation per taining to the business and af fairs of Krystal located at 3710 McFarland
Blvd, Tuscaloosa, AL 35405 (“Proper ty”). It has been prepared by Matthews Retail Group . This Of fering Memorandum may not
be all-inclusive or contain all of the infor mation a prospective purchaser may desire. The infor mation contained in this Of fering
Memorandum is confidential and fur nished solely for the purpose of a review by a prospective purchaser of the Proper ty. It is not to
be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Group
. The material is based in par t upon infor mation supplied by the Seller and in par t upon financial infor mation obtained from sources
it deems reliable. Owner, nor their of ficers, employees, or agents makes any representation or warranty, express or implied, as to the
accuracy or completeness of this Of fe ring Memorandum or any of its contents and no legal liability is assumed or shall be implied
with respect thereto. Prospective purchasers should make their own projections and for m their own conclusions without reliance upon
the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Of fering Memorandum for the Proper ty, you agree:
1. The Of fering Memorandum and its contents are confidential;
2. You will hold it and treat it in the strictest of confidence; and
3. You will not, directly or indirectly, disclose or per mit anyone else to disclose this Of fering Memorandum or its contents in any
fashion or manner detrimental to the interest of the Seller.
Owner and Matthews Retail Group expressly reser ve the right, at their sole discretion, to reject any and all expressions of interest
or of fers to purchase the Proper ty and to ter minate discussions with any person or entity reviewing this Of fering Memorandum or
making an of fer to purchase the Proper ty unless and until a written agreement for the purchase and sale of the Proper ty has been
fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Proper ty or in the future you discontinue such negotiations,
then you agree to purge all materials relating to this Proper ty including this Of fering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Proper ty, or infor mation provided
herein or in connection with the sale of the Proper ty shall be limited to those expressly provided in an executed Purchase Agreement
and shall be subject to the ter ms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews
Retail Group or any of their af filiates or any of their respective of ficers, Directors, shareholders, owners, employees, or agents for
any damages, liability, or causes of a ction relating to this solicitation process or the marketing or sale of the Proper ty.
This Of fering Memorandum shall not be deemed to represent the state of af fairs of the Proper ty or constitute an indication that there
has been no change in the state of af fairs of the Proper ty since the date this Of fering Memorandum.
Matthews Retail Group
Table of Contents
PRICING & FINANCIAL ANALYSIS
Investments Highlights................................................... 2
Executive Summary...................................................... 3
Company Overview .................................................... 4
PROPERTY DESCRIPTION
Physical Description...................................................... 7
Tenant Map................................................................. 8
Regional Map.............................................................. 9
Bird’s Eye.................................................................. 10
DEMOGRAPHICS
City Overview | Tuscalooosa, AL................................. 12
Demographics Report................................................. 13
EX C L USIV ELY LIS TE D BY:
Gary Chou
Director | Restaurant Practice Group
DIRECT +1.310.919.5827
MOBILE +1.714.928.8016
[email protected]
License No. 01911222
Justin Beck
Broker of Record
Beck Property Company Inc.
License No. 0000811420
Matthews Retail Group
Pricing & Financial
Analysis
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Investments Highlights
LONG-TERM STABILIZED DEAL - GREAT STORE SALES
• 17 years remaining on the original 20 year lease
• Investment includes six (6) additional 5-year options with 1.25% annual rental increases
• Great Store Sales – Well above National Average
• Healthy Rent to Sales Ratio
• Absolute NNN Lease – Zero landlord responsibilities
STRONG RETAIL CORRIDOR - EASY HIGHWAY ACCESS
• Easy Access to Interstate 20/59 (46,000 VPD) which connects Tuscaloosa with Birmingham, the largest city in
Alabama
• Strong National Tenants in immediate area include Office Depot, Walmart, Sam’s Club, Popeye’s, Burger King,
T.J Maxx, Hardee’s, Taco Bell, Sonic, KFC, Checkers, and Pizza Hut
• Tuscaloosa is home to the University of Alabama which is a NCAA Division I school home to over 36,000
students
• Under a mile south of University Mall serves as a shopping destination for University of Alabama students as
well as the surrounding region
• Projected growing population within a one, three, and five mile radius in the next five years
P. 2
Matthews Retail Group
OFFERING MEMORANDUM | Krystal
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Executive Summary
KRYSTAL
3710 MCFARLAND BLVD
TUSCALOOSA, AL 35405
List Price.......................................................................... $2,012,000
CAP Rate - Current����������������������������������������������������������������� 6.50 %
Gross Leasable Area����������������������������������������������������������� 2,398 SF
Lot Size ......................................................... 0.52 Acres (22,599 SF)
Year Built................................................................................... 1976
Annualized Operating Data
Monthly Rent
Annual Rent
Rent/SF
CAP Rate
9/1/15-8/31/16
$10,898.69
$130,784.30
$54.54
6.50%
9/1/16-8/31/17
$11,034.93
$132,419.10
$55.22
5.00%
9/1/17-8/31/18
$11,172.86
$134,074.34
$55.91
5.06%
9/1/18-8/31/19
$11,312.52
$135,750.27
$56.61
5.12%
9/1/19-8/31/20
$11,453.93
$137,447.15
$57.32
5.19%
9/1/20-8/31/21
$11,597.10
$139,165.24
$58.03
5.25%
*1.25% Annual increases continue until 2032 and in option periods
Tenant Summary
Tenant Trade Name
Krystal
Type of Ownership
Fee Simple
Lease Guarantor
Lease Type
Roof and Structure
Original Lease Term
20 Years
9/21/2012
Lease Expiration Date
8/31/2032
Increases
Options
OFFERING MEMORANDUM
NNN
Tenant Responsible
Lease Commencement Date
Term Remaining on Lease
Krystal |
Corporate
17 Years
1.25% Annually
Six (6) Five (5) Year
Matthews Retail Group
P. 3
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Company Overview
Property Name
Property Type
Parent Company Trade Name
Ownership
No. of Locations
No. of Employees
Krystal
Net Leased Quick Service Restaurant
Krystal Company
Private
350+
6,500+
Headquartered
Atlanta, Georgia
Web Site
www.krystal.com
Year Founded
1932
The Krystal Company is a fast-food gem of the South. The company’s chain of more than 360 restaurants are known for their
petite, square hamburgers. In addition, Krystal’s menu features
a larger-sized hamburger, chicken wings and sandwiches, chili
dogs, and breakfast items. The company also sells its frozen
burgers through grocery stores. The chain got its start in 1932
when R.B. Davenport Jr. and J. Glenn Sherrill opened up shop
in Chattanooga, Tennessee. Private investment firm Argonne
Capital Group acquired the chain in 2012.
Source: Hoovers
P. 4
Matthews Retail Group
OFFERING MEMORANDUM | Krystal
Property Description
PRICING AND FINANCIAL ANALYSIS
P. 6
Matthews Retail Group
PROPERTY DESCRIPTION
DEMOGRAPHICS
OFFERING MEMORANDUM | Krystal
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Physical Description
THE OFFERING
Property Name............................................................................ Krystal
Property Address................................................... 3710 McFarland Blvd
Tuscaloosa, AL 35405
Assessor’s Parcel Number................................ 30-09-31-3-002-005.002
Zoning............................................................................................. BN
SITE DESCRIPTION
Number of Stories���������������������������������������������������������������������������One
Year Built....................................................................................... 1976
Gross Leasable Area (GLA)������������������������������������������������������ 2,398 SF
Lot Size............................................................. 0.52 Acres (22,599 SF)
Type of Ownership................................................................. Fee Simple
Parking...................................................................± 34 Surface Spaces
Parking Ratio............................................................ ± 14.18 : 1,000 SF
Landscaping.........................................................................Professional
Topography.....................................................................Generally Level
CONSTRUCTION
Foundation........................................................................Concrete Slab
Framing....................................................................................... Wood
Exterior............................................................................ Painted Stucco
Parking Surface.......................................................................... Asphalt
Roof................................................................................................. Flat
Krystal |
OFFERING MEMORANDUM
Matthews Retail Group
P. 7
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Tenant Map
P. 8
Matthews Retail Group
OFFERING MEMORANDUM | Krystal
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Regional Map
Krystal |
OFFERING MEMORANDUM
Matthews Retail Group
P. 9
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
McFarlan
d
Blvd
CPD: 37,
000
Bird’s Eye
P. 10
Matthews Retail Group
OFFERING MEMORANDUM | Krystal
Demographics
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
City Overview | Tuscalooosa, AL
Tuscaloosa is a city in and the seat of Tuscaloosa County in west central Alabama. Located on the
Black Warrior River, it is the fifth-largest city in Alabama, with an estimated population of 95,334 in
2013. Founded in 1819, the city was named after Tuskaloosa, the chieftain of a Muskogeanspeaking people who battled and was defeated by Hernando de Soto in 1540 in the Battle of
Mabila, and served as Alabama’s capital city from 1826 to 1846.
Tuscaloosa is the regional center of industry, commerce, healthcare, and education for the area of
west-central Alabama known as West Alabama. It is the principal city of the Tuscaloosa Metropolitan
Statistical Area, which includes Tuscaloosa, Hale and Pickens counties and has an estimated metro
population in 2013 of 235,628. Tuscaloosa is also the home of The University of Alabama, Stillman
College and Shelton State Community College. While the city attracted international attention when
Mercedes-Benz announced it would build its first automotive assembly plant in North America in
Tuscaloosa County, the University of Alabama remains the dominant economic and cultural engine in
the city.
Tuscaloosa has been traditionally known as the “Druid City” because of the numerous water oaks
planted in its downtown streets since the 1840s. The city has also become well known nationally for
the University of Alabama’s success in sports, and particularly in football. City leaders adopted the
moniker “The City of Champions” after the Alabama Crimson Tide football team won the BCS
Source: Wikipedia
P. 12
Matthews Retail Group
OFFERING MEMORANDUM | Krystal
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Demographics Report
Population
2020 Projection
2015 Estimate
2010 Census
2000 Census
Growth 2015-2020
Growth 2010-2015
Growth 2000-2010
1-Mile
7,423
7,403
7,409
7,304
0.27%
-0.09%
1.44%
3-Mile
59,900
57,871
55,708
49,288
3.51%
3.88%
13.03%
5-Mile
117,722
113,821
109,573
95,512
3.43%
3.88%
14.72%
Households
2020 Projection
2015 Estimate
2010 Census
2000 Census
Growth 2015-2020
Growth 2010-2015
Growth 2000-2010
3,189
3,165
3,146
3,308
0.75%
0.59%
-4.89%
25,745
24,733
23,681
20,660
4.09%
4.44%
14.62%
48,036
46,166
44,132
38,499
4.05%
4.61%
14.63%
28.03%
11.53%
15.26%
16.02%
16.84%
5.94%
3.03%
1.30%
1.30%
0.47%
0.28%
0.00%
$40,893
$31,837
28.18%
13.63%
12.33%
15.55%
14.02%
7.25%
4.14%
1.78%
1.82%
0.60%
0.55%
0.16%
$44,317
$31,637
28.18%
13.63%
12.33%
15.55%
14.02%
7.25%
4.14%
1.78%
1.82%
0.60%
0.55%
0.16%
$51,725
$36,587
Income
$0 - $15,000
$15,000 - $24,999
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $124,999
$125,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000 - $499,999
$500,000+
2015 Est. Average Household Income
2015 Est. Median Household Income
Krystal |
OFFERING MEMORANDUM
Matthews Retail Group
P. 13
KRYSTAL
3710 McFarland Blvd
Tuscaloosa, AL 35405
OFFERING MEMORANDUM
Gary Chou
Director | Restaurant Practice Group
DIRECT +1.310.919.5827
MOBILE +1.714.928.8016
[email protected]
License No. 01911222
Justin Beck
Broker of Record
Beck Property Company Inc.
License No. 0000811420
Matthews Retail Group | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.MatthewsRetailGroup.com