arby`s sylacauga, al 7.30% cap rate

ARBY’S SYLACAUGA, AL
7.30% CAP RATE
Virginia Wright, CCIM
V.P. National Net Lease Investment Group
Bull Realty, Inc
404.876.1640 x 134
[email protected]
Michael Bull, CCIM
President & Founder
Bull Realty, Inc
404.876.1640 x 2001
[email protected]
Bull Realty, Inc
50 Glenlake Parkway, Suite 650
Atlanta, GA 30328
www.BullRealty.com
Table of Contents
Michael Bull, CCIM
President & Founder
404.876.1640 x 2001
[email protected]
P. 2
Executive Summary
3
Tenant Description
4
Disclaimer
5
Investment Overview
6
Property Photos
7
Aerial
9
Location Map
10
Demographics
11
Broker Profiles
12
Confidentiality Agreement
14
Virginia Wright, CCIM
V.P. National Net Lease Investment Group
404.876.1640 x 134
[email protected]
Executive Summary
This established Arby’s offers an investor strong returns along with absolute zero landlord
responsibilities. The seasoned location has provided a history of strong sales since
opening in 1985. Major renovations were completed in 2010, when the corporate
guaranteed lease with Arby’s Restaurant Group was renewed for 10 years. Also added
were five 5-yr options to extend the lease. There continues to be a 1.5% increase in the
rent each year.
Positioned on a major thoroughfare and busy commercial corridor in Sylacauga,
Alabama, this Arby’s investment is among good company with nearby tenants including
Wendy’s, Advance Auto Parts, Wells Fargo Bank, Pizza Hut, Burger King, O’Reilly Auto
Parts, McDonald’s, Sonic, Dairy Queen, and the local Coosa Valley Medical Center.
The city of Sylacauga is known as the Marble City. It is constructed on a solid deposit of the hardest, whitest marble in the
world. Located just 40 miles from Birmingham, 65 miles from Montgomery and 130 miles from Atlanta, the city is in Talladega
County only 30 miles from the Talladega Superspeedway and the Honda site.
Michael Bull, CCIM
President & Founder
404.876.1640 x 2001
[email protected]
P. 3
Virginia Wright, CCIM
V.P. National Net Lease Investment Group
404.876.1640 x 134
[email protected]
Tenant Description
Arby’s is a fast food restaurant chain in the United States and Canada. Roark Capital
Group owns 81.5% of the company, with Wendy’s Company owning the other 18.5%. It
is primarily known for selling roast beef sandwiches and curly fries. The Arby’s menu also
includes chicken sandwiches, appetizers, salads, Market Fresh (deli-style) sandwiches,
wraps, and submarine sandwiches. Its headquarters are in Sandy Springs, Georgia.
There are more than 3,600 Arby’s restaurants. As of December 30, 2010, there were
1,169 company-owned restaurants, 2,367 franchised and 125 international locations,
principally in Canada. There are also locations in Qatar, Turkey and the United Arab
Emirates. It also owns the franchise T.J. Cinnamons that, as of December 2007, has
243 locations with 225 multi-branded with company stores. They are currently only
franchising the T.J. Cinnamons brand.
Arby’s was founded in Boardman, Ohio, in 1964 by Forrest and Leroy Raffel, owners of a restaurant equipment business who
believed there was a market opportunity for a fast food franchise based on a food other than hamburgers. The brothers
wanted to call their restaurants “Big Tex,” but that name was being used by an Akron business. Instead, they chose the
name “Arby’s,” based on R. B., the initials of Raffel Brothers.
The Raffel brothers opened the first new restaurant in Boardman, Ohio, just outside Youngstown, on July 23, 1964. They
initially served only roast beef sandwiches, potato chips, and soft drinks. A year later, the first Arby’s licensee opened a
restaurant in Akron, Ohio. The famous Arby’s “hat” was designed by the original sign makers, Peskin Sign Co. Expansion to
other states began in 1968, beginning in Pittsburgh (the closest large out-of-state market to Youngstown) and Detroit. The
restaurants were initially designed to be more upscale than their hamburger competitors.
Michael Bull, CCIM
President & Founder
404.876.1640 x 2001
[email protected]
P. 4
Virginia Wright, CCIM
V.P. National Net Lease Investment Group
404.876.1640 x 134
[email protected]
Disclaimer
The Confidential Memorandum contains selected information pertaining to the Property but does not purport to be all-inclusive or to contain all of
the information that a prospective purchaser may require. All financial projections are provided for general reference purposes only and are based
upon assumptions relating to the general economy, competition and other factors, which therefore, are subject to material change or variation.
Prospective purchasers may not rely upon the financial projections, as they are illustrative only. An opportunity to inspect the Property will be made
available to qualified prospective purchasers.
In this Confidential Memorandum, certain documents, including financial information, are described in summary form and do not purport to be
complete or accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are
expected to review independently all documents.
This Confidential Memorandum is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a
recommendation, endorsement or advice as to the value of the Property by Bull Realty Inc. or the current Owner/Seller. Each prospective purchaser
is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein.
Owner/Seller expressly reserve the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to
terminate discussions with any party at any time with or without notice. Owner/Seller shall have no legal commitment or obligation to any purchaser
reviewing this Confidential Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property
has been fully executed, delivered and approved by the Owner/Seller and any conditions to the purchaser’s obligations therein have been satisfied
or waived.
This Confidential Memorandum may be used only by parties approved by the Owner. The Property is privately offered, and by accepting this
Confidential Memorandum, the party in possession hereof agrees (i) to return it if requested and (ii) that this Confidential Memorandum and its
contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Confidential Memorandum may
be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Bull Realty, Inc. or Owner/Seller. The terms
and conditions set forth above apply to this Confidential Memorandum in its entirety and all documents, disks and other information provided in
connection therewith.
Michael Bull, CCIM
President & Founder
404.876.1640 x 2001
[email protected]
P. 5
Virginia Wright, CCIM
V.P. National Net Lease Investment Group
404.876.1640 x 134
[email protected]
Investment Overview
Property Information
Lease Summary
Subject Property:
Arby’s - Single Tenant
Tenant Trade Name:
Arby’s
Property Address:
811 West Fort Williams Street
Tenant:
Arby’s Restaurant Group, Inc
Sylacauga, Alabama 35150
Ownership: Public
Price:
$765,000
Lease Type:
Rentable Square Feet:
3,500 sq ft
Triple Net Lease - Zero landlord
responsibilities
Price Per Square Foot:
$218.57
Current NOI:
$56,019 - Absolute NNN
Options with Increases:
Base Rent:
$16.00/sq ft
June 1,2017-May 31, 2022 - 2nd Extension Period
CAP Rate:
7.3%
June 1, 2022-May 31, 2027 - 3rd Extension Period
Construction Year:
1985
June 1, 2027-May 31, 2032 - 4th Extension Period
Renovation Year:
2010
June 1, 2032-May 31, 2037 - 5th Extension Period**
Lot Size:
1.07 acres
Type of Ownership:
Fee Simple
Lease Commencement:
June 1 , 1994
Lease Expiration:
May 31, 2007*
Rent Increases
Annual Rent
June 1, 2012:
$56,019
June 1, 2013:
$56,859
June 1, 2014:
$57,712
* On June 1, 2007, a new ten year lease was executed
June 1, 2015:
$58,578
June 1, 2016:
$59,456
** Rent increases annually by 1.5% over the base annual
rental for the immediately preceding lease year
Michael Bull, CCIM
President & Founder
404.876.1640 x 2001
[email protected]
P. 6
Virginia Wright, CCIM
V.P. National Net Lease Investment Group
404.876.1640 x 134
[email protected]
Property Photos
Michael Bull, CCIM
President & Founder
404.876.1640 x 2001
[email protected]
P. 7
Virginia Wright, CCIM
V.P. National Net Lease Investment Group
404.876.1640 x 134
[email protected]
Property Photos
Michael Bull, CCIM
President & Founder
404.876.1640 x 2001
[email protected]
P. 8
Virginia Wright, CCIM
V.P. National Net Lease Investment Group
404.876.1640 x 134
[email protected]
Aerial
Michael Bull, CCIM
President & Founder
404.876.1640 x 2001
[email protected]
P. 9
Virginia Wright, CCIM
V.P. National Net Lease Investment Group
404.876.1640 x 134
[email protected]
Location Maps
Michael Bull, CCIM
President & Founder
404.876.1640 x 2001
[email protected]
P. 10
Virginia Wright, CCIM
V.P. National Net Lease Investment Group
404.876.1640 x 134
[email protected]
Demograpics
Michael Bull, CCIM
President & Founder
404.876.1640 x 2001
[email protected]
P. 11
Virginia Wright, CCIM
V.P. National Net Lease Investment Group
404.876.1640 x 134
[email protected]
Broker Profiles
Michael Bull, CCIM
President & Founder, Bull Realty, Inc
404.876.1640 x 2001
[email protected]
www.BullRealty.com
Michael Bull is a commercial real estate author, trainer, speaker, radio show host, consultant and broker.
Michael is a multiple recipient of Atlanta Business Chronicle’s who’s who in Commercial Real Estate. He is
also founder and managing broker of leading commercial real estate brokerage service firm, Bull Realty,
Incorporated.
Michael works daily with the company’s agents and clients to add value to their real estate endeavors. His mission is to
provide the best client services in the industry and to add value for the people around him. Michael is involved with many
networking and professional organizations, including the National CCIM Association, National Associations of REALTORS, the
Association of Georgia Real Estate Exchangers, the International Council of Shopping Centers, the Real Estate Brokerage
Managers Council, the Atlanta Leaders Group, Real Estate Group of Atlanta, the Georgia Bankers Association, the Atlanta
Press Club and the Atlanta Chamber of Commerce.
Michael lives in the Chastain Park area of Atlanta and enjoys spending time with his family, music, basketball and
performance boating.
Michael Bull, CCIM
President & Founder
404.876.1640 x 2001
[email protected]
P. 12
Virginia Wright, CCIM
V.P. National Net Lease Investment Group
404.876.1640 x 134
[email protected]
Broker Profiles
Virginia Wright, CCIM
V.P. National Net Lease Investment Group
404.876.1640 x 134
[email protected]
www.BullRealty.com
Virginia is Vice President of Net Lease Investments at Bull Realty, where she works closely with buyers and
sellers throughout the United States helping them meet their real estate investment objectives. She is
primarily focused on single tenant net lease and 1031 tax deferred exchanges.
With extensive experience within the commercial market throughout the southeastern region, Virginia has also brokered
transactions across the United States. She is licensed in Georgia, North Carolina, South Carolina and Florida and is currently
acquiring real estate licenses in several other states.
As a Certified Commercial Investment Member (CCIM) of the CCIM Institute, Virginia has achieved the highest designation
in the field of commercial real estate. The commercial real estate industry recognizes that the CCIM designation certifies
that she is an expert in the field of commercial real estate. Only 6% of commercial real estate broker/agents nationwide
have the CCIM designation.
Virginia is a member of various professional organizations including the National and Atlanta Commercial Board of Realtors,
the International Council of Shopping Centers, and the CCIM Georgia Chapter.
A Michigan native who moved to Atlanta in 1994, Virginia received her BA in International Business from American
InterContinental University. She previously held positions in sales, management, finance, communications and marketing.
Michael Bull, CCIM
President & Founder
404.876.1640 x 2001
[email protected]
P. 13
Virginia Wright, CCIM
V.P. National Net Lease Investment Group
404.876.1640 x 134
[email protected]
Confidentiality Agreement
This Confidentiality Agreement (“Agreement”) is made and agreed to for the
benefit of the undersigned party (“Prospect”), the owner of the subject property (the
“Seller”) and undersigned agent Bull Realty Incorporated (“Broker”).
Now therefore in consideration of the privileges granted to Prospect with respect
to receiving certain confidential information, and other good and valuable
consideration, the Prospect hereby agrees to the following:
Accepted and agreed to this _______ day of ___________________, 2012.
Prospect
Signature ______________________________________________________________
Printed Name __________________________________________________________
I. Confidential Information:
Title __________________________________________________________________
Prospect will receive confidential information regarding property referred to as
811 West Fort Williams Street, Sylacauga, AL Prospect agrees to not disclose to
any person that the Property or the note may be available for sale or lease, or that
discussions or negotiations are taking place concerning a possible purchase of the
Property or the note, nor any terms, conditions, or other facts with respect to the
Property or the note, including but not limited to tenant information, lease rates,
lease expirations, income and expenses, and any such possible purchase, including
the status thereof. The term “person” used in this agreement shall be interpreted
broadly and shall include, without limitation, any corporation, company, partnership
or individual other than parties to which Broker approves in writing. Prospect agrees
to not contact the Seller, the management, the tenants, the lender, the vendors, the
insurers, the employees or the customers of any business at the site.
Phone _________________________________________________________________
Fax ___________________________________________________________________
II. Acting as a Principal:
Prospect hereby warrants that it is acting as a principal only, and not as a broker or
agent, regarding this contemplated transaction. Prospect acknowledges and agrees
that Bull Realty, Inc., will act in an agency capacity on behalf of the Seller, and will
be used as the sole broker or agent in connection with the purchase of the property.
Bull Realty, Inc. will be paid a commission by the Seller. Prospect agrees to not be
involved in any arrangement to lease or purchase the property, in whole or in part, as
a lender, partner, buyer of the note, buy in foreclosure, buy from bankruptcy court,
or in any other manner acquire an investment in or control of the property, unless
Bull Realty, Inc. is included as the selling agent and is compensated as described
herein. Prospect reserves the right to involve any lender, underwriter, equity partners,
attorney or other advisor in the transaction provided said party is paid by the
Prospect, and said party has agreed in writing to this confidentiality agreement.
III. Governing Law
This Agreement shall be governed and construed in accordance with the laws of the
State of Georgia.
Company Name ________________________________________________________
Address ______________________________________________________________
_______________________________________________________________
Email _________________________________________________________________
Broker
Broker
Michael Bull, CCIM
AL License #83872-0
Preisdent & Founder
P. 404.876.1640 x 2001
F. 404.876.7073
[email protected]
Virginia Wright, CCIM
GA License #295964
V.P. National Net Lease Investment Group
P. 404.876.1640 x 134
F. 404.876.7073
[email protected]
You may return the executed agreement by fax (404.876.7073) or email.
Bull Realty, Inc.
(GA License H-20209)
50 Glenlake Parkway, Suite 650
Atlanta GA 30328