Brand New - EXP Realty Advisors

Portage High School
2,500 Students
Airport Rd.
Photos Taken Wednesday August 19th 2009
Scottsdale St.
Portage
Memorial
Hospital
Willow Creek Rd.
US Route 6 - ADT: 18,286 CPD
PROPOSED
Brand New | Checkers Double Drive-Thru Restaurant
Drive thru at Noon 8/19/09
6475 US Highway 6 in Portage, IN (Chicago MSA|Suburb: 40 Miles East of Downtown Chicago)
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. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Chicago, Inc. © 2009 Marcus & Millichap Q0370089
$1,383,000 / 8.75% CAP
•
Brand New (July ‘09) 20-Year Absolute NNN Lease w/ Rental Increases
•
Exceptional Sales: Percentage Rent Not Included in CAP Rate
•
Checkers / Rally’s: Largest Chain of Double Drive-Thru Rest.’s (800+)
•
Seasoned Franchise Operator | Over 100 Locations Operated in Midwest
•
High Net-Worth Personal Guaranty w/ Franchisee: First 5 Years of Term
•
Thriving Retail Corridor | Outparcel to New Kohl’s Department Store
•
Adjacent to Super Wal-Mart, Lowe’s, Sears, Super K-Mart, Big Lots, Jo-Ann
Fabrics, IMAX Theatre, Walgreens and Many Other Fast Food Retailers
Exclusive Listing Agent:
Joe Caputo
(415) 250-1977
[email protected]
•
Directly Across From Portage High School (2,500 Students)
•
Portage, IN is the Largest City in Porter County | 3rd Largest in NW Indiana
•
Chicago MSA is the 3rd Largest Population in the US
•
Median HH Income (3-Miles): $60,910 - Source: Demographics Now | Nov. 2009
EXP REALTY ADVISORS HQ: 118 East 28th Street #808 | New York | NY | 10016 | T: (212) 972-7457 | F: (212) 686-0078 | www.exp1031.com
CHECKERS DOUBLE DRIVE-THRU RESTAURANT | PORTAGE, IN | CHICAGO MSA
Purchase Price:
$1,383,000
CAP Rate:
8.75%
Lease Term:
20 Years
Building Area:
+/- 878 SF
Land Area:
+/- 0.65 Acres
Lease Type:
Absolute NNN
Fixed Rental Increases:
Years 3, 6, 11, & 16
Percentage Rent:
Yes
Occupancy:
100%
NAP
EXP Realty Advisors is pleased to present for sale
a brand new single tenant Checkers double drivethru restaurant located in the Chicago suburb of
Portage, Indiana.
The subject property consists of a stand alone
double drive-thru building on approximately 0.65
acres and is strategically located along US Route
6 across from Portage High School, within the
area’s most dominant retail corridor. This offering
gives investors the unique opportunity to own a
brand new investment property leased to a well
performing retail tenant for 20-years, with fixed
rental increases, percentage rent and virtually no
landlord responsibility.
NAP
NAP
Investment Highlights
• Brand New | July 2009 Opening (Exceptional Store Sales YTD)
• Checkers/Rally’s Largest Chain of Double Drive-Thru Rest.’s
• Seasoned Franchisee | Operated Over 100 Locations
• High Net-Worth Personal Guarantee w/ Franchise Operator
• Outparcel to Kohl’s Within Thriving Retail Corridor
• Adjacent to Wal-Mart, Lowe’s, IMAX, K-Mart, Sears, Menards
• Across From Portage High School (2,500 Students)
• Chicago Suburb | 3rd Largest City in NW Indiana
• Avg. Median Income (3-Miles): $60,156 - Source: 2008 US Census
Subject Property
COPYRIGHT © 2009. ALL USE, DISCLOSURE AND/OR REPRODUCTION NOT SPECIFICALLY AUTHORIZED IS PROHIBITED. ALL RIGHTS RESERVED. EXP Realty Advisors (“Agent”) has presented this confidential Investment Memorandum to assist the recipient in
evaluating the “Property” and it is intended for your use only. This confidential material contains brief, selected information pertaining to the Property and shall not be considered all-inclusive or unchanged since the date of preparation. No warranty as to the accuracy or completeness is
expressed or implied. The information has been received from sources believed to be reliable but is not guaranteed. Agent disclaims all liabilities in connection with any inaccuracies or incompleteness. The Buyer should independently verify each item of information and have the same
reviewed by its tax advisor and/or legal counsel. The Buyer agrees that (a) the materials are of a highly confidential nature and will be held in the strictest confidence or shall be returned to Agent upon request; (b) the Buyer shall not contact any property manager, employee or tenant
of the Property regarding the enclosed materials or the Property, without prior approval of Agent; and (c) the Buyer understands and agrees that Agent represents the seller and not the Buyer. Neither the seller nor Agent shall have any obligation to pay any commission, finder’s fee, or
other compensation to any broker or other person dealing with the Buyer. The Buyer may provide information to persons retained for the purpose of evaluating the Property after first obtaining a signed confidentiality agreement from such persons to keep such information confidential.
The Buyer shall defend, indemnify and hold harmless the seller, Agent and its affiliates from and against any claims, demands, damages, liabilities, costs or expenses, including reasonable attorneys’ fees, relating to any claim for a commission, finder’s fee or other compensation by any
broker or other person dealing with the Buyer. The Property is being sold on an “as-is, where-is” and “with all faults” basis.
CORPORATE
CARL’S DRIVE-THRU
JR. GROUND LEASE
| NEW BRAUNFELS
CHECKERS DOUBLE
RESTAURANT
| PORTAGE, |INTEXAS
| CHICAGO MSA
LEASE OVERVIEW
Primary Lease Term:
Twenty (20) Years
Annual Rent (Years 1-2):
$121,000
Rent Commencement:
July 1, 2009
Annual Rent (Years 3-5):
$128,400
Lease Expiration:
June 30, 2029
Annual Rent (Years 6-10):
$141,250
Lease Type:
Absolute NNN
Annual Rent (Years 11-15):
$155,364
Roof & Structure:
Paid by Tenant
Annual Rent (Years 16-20):
$170,904
Management Fee:
Paid by Tenant
Option One Rent (Years 21-25):
$196,680
Options:
Two (2), Five (5) Year
Option Two Rent (Years 26-30):
$206,796
RENT ROLL
Tenant*
Building
Area
Land
Area
Checkers
875 SF
0.65 Acres
6% Increase
10% Increase
10% Increase
10% Increase
14% Increase (Option 1)
5% Increase (Option 2)
Lease Term
Begin
End
Jul-2009
Jul-2010
Jul-2011
Jul-2012
Jul-2013
Jul-2014
Jul-2015
Jul-2016
Jul-2017
Jul-2018
Jul-2019
Jul-2020
Jul-2021
Jul-2022
Jul-2023
Jul-2024
Jul-2025
Jul-2026
Jul-2027
Jul-2028
Jul-2029
Jul-2030
Jul-2031
Jul-2032
Jul-2033
Jul-2034
Jul-2035
Jul-2036
Jul-2037
Jul-2038
Jun-2010
Jun-2011
Jun-2012
Jun-2013
Jun-2014
Jun-2015
Jun-2016
Jun-2017
Jun-2018
Jun-2019
Jun-2020
Jun-2021
Jun-2022
Jun-2023
Jun-2024
Jun-2025
Jun-2026
Jun-2027
Jun-2028
Jun-2029
Jun-2030
Jun-2031
Jun-2032
Jun-2033
Jun-2034
Jun-2035
Jun-2036
Jun-2037
Jun-2038
Jun-2039
Rent**
Monthly
Annually
$10,083
$10,083
$10,700
$10,700
$10,700
$11,771
$11,771
$11,771
$11,771
$11,771
$12,947
$12,947
$12,947
$12,947
$12,947
$14,242
$14,242
$14,242
$14,242
$14,242
$16,390
$16,390
$16,390
$16,390
$16,390
$17,233
$17,233
$17,233
$17,233
$17,233
$121,000
$128,400
$141,250
$155,364
$170,904
$196,680
$206,796
Taxes
Insurance
CAM's
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* Seasoned franchise operator with exclusive rights to the State of Indiana. Includes high net worth personal guarantee with franchisee.
** Lease includes percentage rent provision, not accounted for in rent roll.
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 an bears all risk for any inaccuracies.
CHECKERS DOUBLE DRIVE-THRU RESTAURANT | PORTAGE, IN | CHICAGO MSA
TENANT OVERVIEW:
Founded:
Headquarters:
Locations:
1986
Tampa, FL
815+
Parent Co.:
Company Type:
Website:
Taxi Holdings Corp.
Private
www.checkers.com
Checkers/Rally’s is the nation’s largest chain of double drive-thru restaurants. With two drive-thru lanes and
a walk-up window at our more than 800 locations, they are ideally positioned for today’s on-the-go guest.
Checkers was founded in 1986 in Mobile, Alabama, and went public in 1991. Rally’s was founded in Louisville,
Kentucky in 1985, with its first location in Jeffersonville, Indiana. Originally separate companies serving
different geographic areas, Checkers and Rally’s Hamburgers, Inc. merged in August 1999. Checkers and
Rally’s had similar concepts, being almost exclusively drive-thru with very little seating. After the merger,
Rally’s began redesigning its restaurants to follow the Checkers look. Together, the Checkers and Rally’s
operate in a more cost efficient footprint designed for easily understood and executable operations.The
joint company houses its headquarters in Tampa, Florida. In June 2006, the Company went private through
a merger with Taxi Holdings Corp., an affiliate of Wellspring Capital Management, a private equity firm.
The company operates more than 815 Checkers and Rally’s restaurants in 28 states and the District of
Columbia with restaurants also operating in Israel and American Samoa. They specialize in hamburgers,
hot dogs, French fries, and milkshakes.
Checkers and Rally’s have also continued the operation of more than 33% corporate locations in order
to have a more than sufficient brand playground to develop and test new products, systems and training
methods. This has helped the brand continue to offer top-of-the-line services and best practices to its
franchisees.
Franchise Operator | Personal Guarantee
•
Seasoned Franchise Operator
•
Franchisee Has Operated Over 100 Fast Food Restaurants Throughout the Midwest
•
High Net-Worth Personal Guaranty w/ Franchisee: First 5 Years of Term
•
Personal Guaranty in Excess of $10,000,000
•
Franchisee Has Exclusive Rights to the State of Indiana
•
Expansion Plans for Another 4-6 Checkers Restaurants Per Year, Throughout the State
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 an bears all risk for any inaccuracies.
CHECKERS DOUBLE DRIVE-THRU RESTAURANT | PORTAGE, IN | CHICAGO MSA
CHECKERS DOUBLE DRIVE-THRU RESTAURANT | PORTAGE, IN | CHICAGO MSA
CHECKERS DOUBLE DRIVE-THRU RESTAURANT | PORTAGE, IN | CHICAGO MSA
PROPERTY DESCRIPTION
Site Plan
Site Plan
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. References to square footage or age are approximate. Buyer must verify the
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
Buyer must verify the information an bears all risk for any inaccuracies.
& Millichap Real Estate Investment Services of Chicago, Inc. © 2009 Marcus & Millichap Q0370089
or implied, as to the accuracy of the information.
CHECKERS DOUBLE DRIVE-THRU RESTAURANT | PORTAGE, IN | CHICAGO MSA
LOCATION OVERVIEW:
Portage, IN | Immediate Trade Area
This Checkers double drive-thru restaurant sits along US Highway 6, ideally situated directly across from Portage
High School (Grades 9-12 / 2,500 students) and is an outparcel to Kohl’s department store. Other retailers in the
immediate area include Super Wal-Mart, Lowe’s, IMAX Theatre, Sears, Super K-Mart, Big Lots, Jo-Anne Farbics,
Walgreens, Menards, Hollywood Videa, Applebees, Wendy’s, McDonalds, Buffalo Wild Wings, Taco Bell, Pizza
Hut, Verizon Wireless, AT&T, Starbucks and many other local and regional retailers.
Portage, Indiana a city of 36,000+ residents, is located in the northwest corner of Indiana on the southern tip of
Lake Michigan, in Porter County. The city is bisected by both I-94 and I-90, providing convenient access to local
and regional markets. Portage is located approximately 40 miles southeast of Chicago and is one of the fastest
growing communities in Indiana.
Portage is known for it’s steel making and oil refining industry. However, the business and manufacturing base
in Northwest Indiana has expanded and diversified. The Port of Indiana is one of the largest ports in terms of
tonnage and activity along the shores of Lake Michigan. Numerous industrial buildings have been built along I-94,
including the 400 acre office and industrial development, Ameriplex Industrial Park.
Northwest Indiana
Northwest Indiana, also known as the South Shore, The Calumet Region, and The Region, comprises Lake,
Porter, LaPorte, Newton, and Jasper counties in Indiana. Unlike the majority of Indiana, which operates on
Eastern Standard Time, these five counties are among six in Northwestern Indiana that are in the Central Time
Zone, the other being Starke. This reflects their close economic integration in the Chicago metropolitan area. This
region neighbors Lake Michigan, and is part of the Chicago metropolitan area. Northwest Indiana communities
are bedroom communities to the Chicago metropolitan region. Northwest Indiana consists of cities such as Crown
Point, Dyer, East Chicago, Gary,Hammond, Hobart, Michigan City, Portage, Valparaiso. Portage is the third
largest city in Northwest Indiana.
Chicago Metropolitan Area
The Chicago metropolitan area, or Chicagoland, is the metropolitan area associated with the city of Chicago in the
United States and its suburbs. It is the area that is closely linked to the city through social, economic, and cultural
ties. The Chicago MSA is the third largest MSA by population in the United States with a population of 9,750,000
(2007 estimate).
2009 Demographic Snapshot
CATAGORY
Population
Households Average HH Income Median HH Income Median Disposable Income
Owner Occupied Housing
Median Age
Employment Rate
Drive to Work (Alone)
White Collar Occupation
Downtown Chicago, IL
3‐MILE
5‐MILE
7‐MILE
41,949
16,110
58,020
60,910
50,387
65.5%
35.5
95.7%
86.5%
43.1%
75,751
29,567
60,663
61,732
51,040
66.3%
35.9
95.3%
86.4%
45.6%
140,332
55,792
63,643
60,905
50,383
65.3%
37.3
94.3%
86.0%
50.7%
Source: Demographics Now ‐ November 2009
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 an bears all risk for any inaccuracies.
CHECKERS DOUBLE DRIVE-THRU RESTAURANT | PORTAGE, IN | CHICAGO MSA
11/15/2009
Indiana - Google Maps
Address Indiana
EXISTING DEBT: MUST BE ASSUMED
Location Maps
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