Raising Cane`s – CORPORATE Absolute NNN

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SUBJECT PROPERTY
EXCLUSIVE OFFERING | $4,590,000 – 6.0% CAP
Raising Cane’s – CORPORATE Absolute NNN
8150 South Hampton road, DALLAS, TX
214.675.0175
214.522.7200
MATTHEW SCOW
[email protected]
BOB MOORHEAD
[email protected]
Property. 2016 Construction, 2,724+ square foot building on 1.0+ acres.
Tenant. Raising Cane’s Chicken Fingers is a fast-food restaurant chain founded in Baton Rouge. The company currently has more than 250+ locations. 2014
U.S. systemwide sales: $415 million.
Lease Structure. Brand new, Corporate, 15-year, Absolute NNN Lease, with rent increases every 5-years during primary term and option periods.
Location. Raising Cane’s is strategically located at the northwest corner of South Hampton Rd. (19,000 VPD) and Wheatland Rd. (33,000 VPD), immediately
north of Interstate 20 (157,000 VPD) and approximately 1.20 miles east of US 67 (99,000 VPD). The subject property is strategically located in a heavy retail and
dense residential area of Dallas, TX. Within a 5-mile radius of the site, the population is 245,359 people and total number of employees is 73,406 with an average
household income of $55,694. The subject property is surrounded by notable national credit tenants such as Target, Sam’s Club, Walmart, Petsmart, Home Depot,
Lowe’s, Office Depot, Aldi, Ross, and many more. The subject property also benefits from the Southwest Center Mall (1,084,528 SF) with over 112 retail stores.
Table of contents | Disclaimer
Raising Cane’s
8150 South Hampton road, DALLAS, TX
Disclaimer
PAGE 1:
COVER
PAGE 2:
TABLE OF CONTENTS | DISCLAIMER
PAGE 3:
INVESTMENT | TENANT | LEASE OVERVIEW
PAGE 4:
PRESS RELEASE
PAGE 5-10:
AERIAL PHOTOS
PAGE 11:
SITE PLAN
PAGE 12:
PROPERTY PHOTOS
PAGE 13:
LOCATION OVERVIEW
PAGE 14-15:
LOCATION MAPS
PAGE 16:
DEMOGRAPHICS
SUBJECT PROPERTY
Trivanta (“Agent”) has been engaged as an agent for the sale of the property located at
8150 South Hampton Road, Dallas, TX by the owner of the Property (“Seller”). The
Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent
make no representations or warranties as to the accuracy of the information contained in
this Offering Memorandum. The enclosed materials include highly confidential information
and are being furnished solely for the purpose of review by prospective purchasers of the
interest described herein. The enclosed materials are being provided solely to facilitate the
prospective investor’s own due diligence for which it shall be fully and solely responsible.
The material contained herein is based on information and sources deemed to be reliable,
but no representation or warranty, express or implied, is being made by Agent or Seller or
any of their respective representatives, affiliates, officers, employees, shareholders,
partners and directors, as to the accuracy or completeness of the information contained
herein. Summaries contained herein of any legal or other documents are not intended to be
comprehensive statements of the terms of such documents, but rather only outlines of
some of the principal provisions contained therein. Neither the Agent nor the Seller shall
have any liability whatsoever for the accuracy or completeness of the information contained
herein or any other written or oral communication or information transmitted or made
available or any action taken or decision made by the recipient with respect to the Property.
Interested parties are to make their own investigations, projections and conclusions without
reliance upon the material contained herein. Seller reserves the right, at its sole and
absolute discretion, to withdraw the Property from being marketed for sale at any time and
for any reason. Seller and Agent each expressly reserves the right, at their sole and
absolute discretion, to reject any and all expressions of interest or offers regarding the
Property and/or to terminate discussions with any entity at any time, with or without notice.
This offering is made subject to omissions, correction of errors, change of price or other
terms, prior sale or withdrawal from the market without notice. Agent is not authorized to
make any representations or agreements on behalf of Seller. Seller shall have no legal
commitment or obligation to any interested party reviewing the enclosed materials,
performing additional investigation and/or making an offer to purchase the Property unless
and until a binding written agreement for the purchase of the Property has been fully
executed, delivered, and approved by Seller and any conditions to Seller’s obligations
hereunder have been satisfied or waived. By taking possession of and reviewing the
information contained herein, the recipient agrees that (a) the enclosed materials and their
contents are of a highly confidential nature and will be held and treated in the strictest
confidence and shall be returned to Agent or Seller promptly upon request; and (b) the
recipient shall not contact employees or tenants of the Property directly or indirectly
regarding any aspect of the enclosed materials or the Property without the prior written
approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied
or otherwise reproduced without the prior written authorization of Seller and Agent.
2
Investment overview
Raising Cane’s
8150 South Hampton road, DALLAS, TX
Lease overview
PRICE| CAP RATE:
$4,590,000 | 6.0%
Initial Lease Term:
15 Years with 5, 5-year options to extend
NET OPERATING INCOME:
$275,350
Rent Commencement:
February 2016
BUILDING AREA:
2,724 + Square Feet
Lease Expiration:
February 2031
LAND AREA:
1.0+ Acres
Lease Type:
Corporate – Absolute NNN Lease
YEAR BUILT:
2016
Rent Increases:
See parenthesis below
OWNERSHIP:
Fee Simple Interest
OCCUPANCY:
100%
Annual Rent Yrs 1-5:
$275,350
Option 2 | Yrs 21-25:
$372,559 (10%)
Annual Rent Yrs 6-10:
$290,850 (5.63%)
Option 3 | Yrs 26-30:
$409,814 (10%)
Annual Rent Yrs 11-15: $307,900 (5.86%)
Option 4 | Yrs 31-35:
$450,796 (10%)
Option 1 | Yrs 16-20:
Option 5 | Yrs 36-40:
$495,876 (10%)
$338,690 (10%)
Tenant overview
Raising Cane’s Restaurants, LLC.
RAISING CANE’S | http://www.raisingcanes.com
Raising Cane's Chicken Fingers is a fast-food restaurant chain founded in Baton Rouge, Louisiana by Todd Graves and Craig Silvey on August 26, 1996.
The company features a menu consisting of chicken fingers, Cane’s sauce, Texas Toast, Kaiser rolls, crinkle–cut fries and coleslaw. CEO Todd Graves
opened the first Raising Cane’s in Baton Rouge, Louisiana, in 1996. The first location outside of Baton Rouge was opened in 2001 in Lafayette,
Louisiana—since then, new restaurants have been opened in Mississippi, Texas, Colorado, Georgia, Ohio, Oklahoma, Nevada, Alabama, Virginia,
Kentucky, Minnesota, Massachusetts, and Nebraska, in addition to all 8 metropolitan areas of Louisiana. Graves plans to continue the expansion of his
restaurant chain throughout the United States and internationally. The company currently has more than 250 locations. By year end 2008 Raising Cane’s
showed revenues of $97.4 million. In January 2009, the company opened a second restaurant support office in Plano, Texas after having a 235.6%
growth in the year 2008. 2014 U.S. systemwide sales: $415 million.
3
Press Release
Raising Cane’s
8150 South Hampton road, DALLAS, TX
Baton Rouge, Louisiana-based Raising Cane’s Chicken Fingers has earned the
distinction of No. 1 Quick Service Restaurant Chain in the nation for 2012,
according to the Sandelman & Associates Quick-Track study. In addition to scoring
top overall honors, Cane’s earned six additional first-place awards.
“I couldn’t be more proud of our crew members for the incredible work they have
done for so many years to earn us this amazing recognition,” says Ian Vaughn,
Raising Cane’s chief operating officer, fry cook, and cashier. “What’s even more
rewarding is knowing that this recognition is coming from our customers. We will
continue to strive hard every day to exceed their expectations, just as they
deserve.”
Known for its ONE LOVE – chicken finger meals – Raising Cane’s is one of the
nation’s fastest-growing restaurants. It is widely recognized as an industry leader in
customer service.
For the past 25 years, Sandelman & Associates has released its much-anticipated
Quick-Track Awards of Excellence, honoring the top-ranked restaurant chains in
several different categories. The 2012 awards are based on surveys of more than
110,000 quick-service restaurant customers covering 1.4 million fast-food visits in
over 90 U.S. media markets. Consumers are asked to provide feedback on 16
attributes of their dining experience.
This year, Raising Cane’s was rated the #1 Quick Service Restaurant Chain in the
country. In addition, Raising Cane’s racked up the following awards in the chicken
chain category:
#1 Overall Rating
#1 Taste or Flavor of Food
#1 Quality of Ingredients
#1 Temperature of Food
#1 Accuracy in Filling Orders
#1 Convenience of Locations
According to the study, in 2012 63 percent of Raising Cane’s customers rated their
most recent visit “excellent” overall (rating of “5” on a 5-point scale).
“Our culture is built on the philosophy of working hard while having fun,” says
Vaughn. “We take pride in serving our communities while delivering a great
experience for our customers. This means serving a premium, consistent product.
Our team is honored to see our hard work recognized by our valued customers.”
Representative Photo
Brand Review – Nationwide Industry Recognition
Raising Cane’s has earned numerous awards within the restaurant
industry. Below are some of the most recent and notable:
5 Consecutive years as top-ranked Quick-Service Chain in the Nation
– Sandleman and Associates
#2 Fastest Growing Restaurant Chain – Nation’s Restaurant News
Top 10 Places to Work (5 consecutive years on list) – Dallas Morning News
Excellent Food Service – Zagat
Restaurateur of the Year – Louisiana Restaurant Association
Best Fried Chicken – 225 Magazine (Baton Rouge, LA), The Advertiser
(Lafayette, LA), Delta Style (Monroe, LA), Bossier Press – Tribune (Bossier
City, LA), Virginia Pilot (Hampton Roads, VA).
"Raising Cane's Rated Nation's Best in Sandelman Study." Industry News. QSR Magazine, 18
Feb. 2013. Web. 12 Dec. 2013.
4
Aerial photo
Raising Cane’s
8150 South Hampton road, DALLAS, TX
Wheatland
Towne Crossing
Clay Cooley
Nissan of Dallas
6
Aerial photo
Raising Cane’s
8150 South Hampton road, DALLAS, TX
Downtown Dallas
Birdie Alexander
Elementary
David E. Carter
High School
Friendship-West
Baptist Church
Wheatland
Towne Crossing
6
Aerial photo
Raising Cane’s
8150 South Hampton road, DALLAS, TX
Kincaide
Stadium
Friendship-West
Baptist Church
David E. Carter
High School
Home Depot
Stocking
Southwest
Kia Dallas
AtkinsonToyota
South Dallas
Wheatland
Towne Crossing
7
Aerial photo
Raising Cane’s
8150 South Hampton road, DALLAS, TX
8
Aerial photo
Raising Cane’s
8150 South Hampton road, DALLAS, TX
Southwest
Center Mall
Birdie Alexander
Elementary
David E. Carter
High School
Methodist Charlton
Medical Center
9
Aerial photo
Raising Cane’s
8150 South Hampton road, DALLAS, TX
Wheatland
Towne Crossing
Clay Cooley
Nissan of Dallas
Freeman
Honda
Southwest
Kia Dallas
AtkinsonToyota
South Dallas
10
SITE PLAN
Raising Cane’s
8150 South Hampton road, DALLAS, TX
11
PROPERTY PHOTOS
Raising Cane’s
8150 South Hampton road, DALLAS, TX
12
Location overview
Raising Cane’s
8150 South Hampton road, DALLAS, TX
IMMEDIATE TRADE AREA
DALLAS – FT. WORTH - ARLINGTON MSA
Raising Cane’s is strategically located at the northwest corner of South
Hampton Rd. (19,000 VPD) and Wheatland Rd. (33,000 VPD), immediately
north of Interstate 20 (157,000 VPD) and approximately 1.20 miles east of US
67 (99,000 VPD). Interstate 20 is a major United State Interstate Highway that
runs east to west from the Louisiana border, through the Dallas-Fort Worth
Metroplex, to Kent, TX. South Hampton Rd. is north-south thoroughfare in
Dallas while US 67 is a major north-south highway that merges with Interstate
35 East connecting the Dallas southern suburbs with the Dallas central business
The Dallas–Fort Worth–Arlington Metropolitan Statistical Area (MSA)
encompasses 12 counties within the U.S. state of Texas. It is the economic and
cultural hub of the region commonly called North Texas or the Metroplex and is
the largest land-locked metropolitan area in the United States.
district.
The subject property is strategically located in a heavy retail and dense
residential area of Dallas, TX. Within a 5-mile radius of the site, the population
is 245,359 people and total number of employees is 73,406 with an average
household income of $55,694. The subject property is surrounded by notable
national credit tenants such as Target, Sam’s Club, Walmart, Petsmart, Home
Depot, Lowe’s, Office Depot, Aldi, Ross, CVS, Starbucks, Chili’s, Chick-fil-A,
YMCA, Dollar Tree, Taco Bell, Burger King, Sonic, and many more. The
subject property also benefits from the Southwest Center Mall (1,084,528 SF)
with over 112 retail stores.
DALLAS, TX
Dallas is the 3rd largest city in the state of Texas and the ninth-largest in the
United States with a population of 1,197,816. The city's prominence arose
from its historical importance as a center for the oil and cotton industries, and
its position along numerous railroad lines. With the advent of the interstate
highway system in the 1950's and 1960's, Dallas became an east/west and
north/south focal point of the interstate system with the convergence of four
major interstate highways in the city, along with a fifth interstate loop around
the city. Dallas developed a strong industrial and financial sector, and a major
inland port, due largely to the presence of Dallas/Fort Worth International
Airport, one of the largest and busiest airports in the world. Dallas has more
shopping centers per capita than any other city in the United States and is also
is home to two super regional center malls, the Dallas Galleria and NorthPark
Center, which is the 2nd largest mall in Texas.
In the latest rankings released on September 14, 2011, Dallas was rated as an
Alpha- world city by the Globalization and World Cities Study Group &
Network It is also the only city in the South Central and Southwest regions to
achieve that status. Dallas is also ranked 14th in world rankings of GDP by the
Organization for Economic Co-operation and Development.
The official 2011 U.S. Census estimate has the population of the Dallas-Fort
Worth Metroplex at 6,526,548. During the 12-month period from July 2008 to
July 2009, the Dallas-Fort Worth-Arlington metropolitan area gained 146,530
new residents, more than any other metropolitan area in the United States. The
area's population has grown by about 1 million since the last census was
administered in 2000. The Dallas–Fort Worth–Arlington MSA is, by population,
the largest metropolitan area in Texas, the largest in the South, the 4th largest
in the United States, and the 10th largest in the Americas. The metropolitan
area has the 6th largest gross metropolitan product (GMP) in the United States,
and approximately 10th largest by GMP in the world.
The Metroplex has one of the highest concentrations of corporate headquarters
in the United States. 20 Fortune 500 companies are headquartered in the area.
The city of Dallas alone has the 3rd largest concentration of Fortune 500
headquarters in the country. The Metroplex also contains the largest
Information Technology industry base in the state (often referred to as Silicon
Prairie or the Telecom Corridor), due to the large number of corporate IT
projects and the presence of numerous electronics, computing and
telecommunication firms. The Telecom Corridor located just north of Dallas in
Richardson is home to more than 5,700 companies including Texas
Instruments which employs over 10,000 people at its headquarters. HP
Enterprises Services, Dell Services, i2, AT&T, Ericsson, CA and Verizon also
have headquarters or major operations in and around Dallas. The Texas
farming and ranching industry, based in Fort Worth adds to the economic
diversification of the area. Several major defense manufacturers, including
Lockheed Martin, Bell Helicopter Textron, and Raytheon, maintain significant
operations in the Metroplex. ExxonMobil, the #1 corporation on the Fortune 500
listings, is headquartered in Irving, Texas.
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13
Location map
Raising cane’s
8150 South Hampton road, DALLAS, TX
14
Location map
Raising cane’s
8150 South Hampton road, DALLAS, TX
15
Demographics
Raising Cane’s
8150 South Hampton road, DALLAS, TX
8150 S Hampton Rd
8150 S Hampton Rd
1 mi radius 3 mi radius 5 mi radius
2010 Census Population
8,522
80,614
226,854
2000 Census Population
Projected Annual Growth 2016 to 2021
6,519
1.9%
71,692
1.9%
191,138
1.8%
Historical Annual Growth 2000 to 2016
3.2%
1.4%
1.8%
2016 Estimated Households
3,735
32,434
84,684
2021 Projected Households
2010 Census Households
3,970
3,255
34,573
29,829
90,405
78,712
2000 Census Households
2,454
26,645
66,795
Projected Annual Growth 2016 to 2021
Historical Annual Growth 2000 to 2016
1.3%
3.3%
1.3%
1.4%
1.4%
1.7%
2016 Est. Population Under 10 Years
15.5%
15.4%
15.2%
2016 Est. Population 10 to 19 Years
14.1%
14.3%
15.0%
2016 Est. Population 20 to 29 Years
2016 Est. Population 30 to 44 Years
14.8%
17.7%
14.6%
18.8%
13.6%
19.5%
2016 Est. Population 45 to 59 Years
17.9%
18.6%
18.9%
2016 Est. Population 60 to 74 Years
2016 Est. Population 75 Years or Over
15.7%
4.2%
14.1%
4.2%
13.4%
4.5%
34.3
34.4
34.6
2016 Est. Male Population
2016 Est. Female Population
42.8%
57.2%
45.7%
54.3%
46.6%
53.4%
2016 Est. Never Married
49.0%
39.3%
35.9%
2016 Est. Now Married
26.7%
33.9%
38.4%
2016 Est. Separated or Divorced
2016 Est. Widowed
19.9%
4.5%
21.1%
5.8%
19.7%
6.0%
2016 Est. HH Income $200,000 or More
0.8%
1.1%
2.1%
2016 Est. HH Income $150,000 to $199,999
1.6%
1.7%
2.9%
2016 Est. HH Income $100,000 to $149,999
2016 Est. HH Income $75,000 to $99,999
5.5%
8.7%
7.7%
9.0%
10.0%
10.6%
2016 Est. HH Income $50,000 to $74,999
2016 Est. HH Income $35,000 to $49,999
17.3%
15.4%
18.8%
16.6%
18.6%
15.8%
2016 Est. HH Income $25,000 to $34,999
18.0%
14.1%
12.1%
2016 Est. HH Income $15,000 to $24,999
2016 Est. HH Income Under $15,000
14.1%
18.6%
12.7%
18.3%
11.4%
16.5%
2016 Est. Average Household Income
$42,751
$47,691
$55,694
2016 Est. Median Household Income
2016 Est. Per Capita Income
$36,333
$16,313
$41,105
$17,580
$47,953
$19,272
2016 Est. Total Businesses
400
3,113
6,830
2016 Est. Total Employees
5,234
34,217
73,406
MARITAL STATUS
& GENDER
INCOME
LABOR FORCE
245,359
267,644
OCCUPATION
88,131
96,292
TRANSPORTATION
TO WORK
9,808
10,719
TRAVEL TIME
2016 Estimated Population
2021 Projected Population
2016 Est. Median Age
1 mi radius 3 mi radius 5 mi radius
Dallas, TX 75232-4534
CONSUMER EXPENDITURE
AGE
HOUSEHOLDS
POPULATION
Dallas, TX 75232-4534
2016 Est. Labor Population Age 16 Years or Over
7,422
66,911
185,696
2016 Est. Civilian Employed
55.0%
58.3%
59.9%
5.0%
3.1%
3.1%
2016 Est. in Armed Forces
2016 Est. not in Labor Force
40.0%
38.5%
37.1%
2016 Labor Force Males
2016 Labor Force Females
40.5%
59.5%
43.9%
56.1%
45.2%
54.8%
2010 Occupation: Population Age 16 Years or Over
3,421
34,349
96,307
2010 Mgmt, Business, & Financial Operations
11.2%
9.3%
10.9%
2010 Professional, Related
2010 Service
19.9%
16.9%
16.7%
18.3%
17.3%
17.9%
2010 Sales, Office
2016 Est. Civilian Unemployed
29.2%
30.5%
29.1%
2010 Farming, Fishing, Forestry
2010 Construction, Extraction, Maintenance
4.8%
0.1%
8.4%
0.1%
9.5%
2010 Production, Transport, Material Moving
18.0%
16.7%
15.1%
2010 White Collar Workers
2010 Blue Collar Workers
60.3%
39.7%
56.5%
43.5%
57.3%
42.7%
2010 Drive to Work Alone
85.0%
79.3%
80.0%
2010 Drive to Work in Carpool
6.0%
11.0%
11.8%
2010 Travel to Work by Public Transportation
2010 Drive to Work on Motorcycle
6.1%
-
4.8%
-
3.4%
-
2010 Walk or Bicycle to Work
2010 Other Means
0.7%
1.2%
1.5%
1.2%
1.3%
1.1%
2010 Work at Home
1.1%
2.2%
2.4%
2010 Travel to Work in 14 Minutes or Less
13.0%
19.1%
18.0%
2010 Travel to Work in 15 to 29 Minutes
2010 Travel to Work in 30 to 59 Minutes
37.9%
38.9%
35.9%
36.9%
35.0%
39.4%
2010 Travel to Work in 60 Minutes or More
10.3%
8.1%
7.6%
28.7
25.8
26.6
2016 Est. Total Household Expenditure
2016 Est. Apparel
$147 M
$5.13 M
$1.37 B
$47.8 M
$3.95 B
$138 M
2016 Est. Contributions, Gifts
$8.74 M
$82.5 M
$248 M
2016 Est. Education, Reading
$5.08 M
$48.2 M
$144 M
2016 Est. Entertainment
$8.09 M
$75.4 M
$219 M
2016 Est. Food, Beverages, Tobacco
$23.5 M
$218 M
$621 M
2016 Est. Furnishings, Equipment
2016 Est. Health Care, Insurance
$4.74 M
$13.5 M
$44.6 M
$124 M
$131 M
$353 M
2016 Est. Household Operations, Shelter, Utilities
2016 Est. Miscellaneous Expenses
$46.0 M
$2.24 M
$426 M
$20.8 M
$1.23 B
$59.1 M
2016 Est. Personal Care
$1.93 M
$17.9 M
$51.6 M
2016 Est. Transportation
$28.3 M
$264 M
$759 M
2010 Average Travel Time to Work
16