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Confidential Offering Memorandum3300 N 1st Avenue
Evansville, IN 47710Confidential Offering Memorandum3300 N 1st Avenue
Evansville, IN 47710
©2018 Jones Lang LaSalle IP, Inc. All rights reserved.
Popeyes – Evansville, IN
Table of Contents
I. Investment Summary 03
II. Property Overview 05
III. Market Overview 07
V. Tenant Overview 14
VI. JLL Contacts 16
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 3
Investment Summary
Popeyes – Evansville, IN
Popeyes | Evansville, IN
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 4
Investment Summary
JLL is pleased to offer for sale the fee-simple interest in a single-tenant Popeyes restaurant (the “Property”, or “Asset”) located in Evansville, Indiana. The Asset
features an absolute net lease with zero landlord responsibilities and 15.5 years of contractual term remaining. There are annual rent increases at the lesser of 1.50%
or 1.25 times the CPI increase, and the tenant has 4, 5-year options to extend the lease. The tenant has guaranteed the lease through both their master franchise
entity and with a personal guarantee, and reports financials quarterly. This offering provides a long-term, passive net lease opportunity located within a dynamic retail
trade area in Indiana’s third-largest city and regional hub.
PROPERTY SUMMARY
Property Address3300 N 1st Avenue
Evansville, IN 47710
Tenant Evansville Favorite Chicken Inc. d.b.a.
Popeyes
Purchase Price $1,614,560
Cap Rate 6.25%
NOI $100,910
Lease Expiration 12/31/2033
Lease Term Remaining 15.5 Years
Renewal Options 4, 5-year options
Rent EscalationsLesser of 1.50% annually or 1.25x CPI
including option periods
Year Built 2005
Lease Type Absolute NNN
Landlord Responsibilities None
Total Square Feet 3,235 SF
Parcel Size 1.13 Acres
INVESTMENT HIGHLIGHTS
EXCELLENT IN-PLACE LEASE FUNDAMENTALS
• Absolute NNN lease with zero landlord responsibilities, 15.5 years of primary
term remaining, and contractual rental growth annually.
STRONG AND EXPERIENCED TENANT
• The tenant has many years of experience in the QSR industry and operates
multiple restaurants. The lease is guaranteed by Decatur Fastfood LLC and a
personal guarantee from the operator.
• The Asset is a financially high-performing location, and the buyer will benefit from
quarterly financial reporting required from the tenant.
DYNAMIC RETAIL MARKET
• The Asset is located on 1st Avenue surrounded by national retailers such as
Target, Walmart, CVS, Walgreens, Starbucks, and numerous restaurants and
regional grocers. Other area traffic drivers include Evansville Country Club and Ivy
Technical Institute.
• There are over 120,000 residents within 5 miles of the Asset and retail vacancy is
minimal at just 3.1% in the submarket, significantly lower than the average for the
MSA (6.7%).
*Based on full year 2016 financials
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 5
Property Overview Popeyes – Evansville, IN
Popeyes | Evansville, IN
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 6
Property Overview
The Property is optimally positioned along 1st Avenue, a busy retail corridor just north of Evansville’s downtown. There are 15.5 years of primary lease term
remaining on a triple net lease with absolutely zero landlord responsibilities and annual rent increases of the lesser of 1.50% or 1.25x CPI. The Tenant is an
experienced QSR operator and operations at this location are highly profitable, with financials reported quarterly. The Asset is extremely well parked with over
17 spaces per 1,000 SF, and is exceptionally large for a fast food Asset at 1.13 acres.
BUILDING SPECIFICATIONS
Address 3300 N 1st Avenue, Evansville, IN 47710
Year Built 2005
Parcel Size +/- 1.13 Acres
Parking Spaces +/- 55 Spaces
Property Size +/- 3,235 SF
Tenant Evansville Favorite Chicken, Inc. d.b.a. Popeyes
Guarantor Decatur Fastfood LLC & Personal Guaranty
Financials Both unit and guarantor financials reported quarterly
Lease Type Absolute NNN
LL Responsibilities None
Lease Commencement 12/30/2013
Lease Expiration 12/31/2033
Lease Term Remaining 15.5 Years
Renewal Options 4, 5-year options
Net Operating Income $100,910
Rental Increases Lesser of 1.50% or 1.25 times the change in CPI annually
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 7
Market Overview & Aerials Evansville, IN
Popeyes | Evansville, IN
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 8
Market Overview
Evansville OverviewEvansville, Indiana is the county seat of Vanderburgh County and the largest city in Southern Indiana, serving as the commercial, medical, and cultural hub of
the IL-IN-KY tri-state area. The greater Evansville MSA is home to over 314,000 residents.
Evansville is the trade hub for large portions of Indiana, Illinois, and Kentucky, and plays host to a large number of major employers. Evansville is home to the
headquarters of NYSE-listed companies such as Accuride, Berry Global, Springleaf, and Vectren, as well as the NASDAQ-listed Old National Bank and Shoe
Carnival. Mead Johnson operates a global operations center in Evansville, and Alcoa, AK Steel, and Toyota have plants in the Evansville area.
Evansville is an important transit hub for both civilian travel and commercial shipping. The Evansville Regional Airport offers 30+ daily flights to and from
Atlanta, Charlotte, Chicago, Dallas/Fort Worth, Detroit, and Orlando/Sanford. Interstate-64 is passes through Evansville and provides convenient automobile travel
to St. Louis and Louisville.
CSX, Norfolk Southern, Indiana Southwestern, and Evansville Western all operate major freight railways through Evansville. These rail lines are served by the
Howell Yard, an intermodal facility that handles up to 3,000 containers and piggyback trailers per month. Evansville’s port system along the Ohio River includes
three public ports and numerous private ports, with year-round service from five major barge companies operating on the Ohio River. The river connects Evansville
to all major U.S. river logistics markets, the Great Lakes, and international markets through the Port of New Orleans. Additionally, Evansville has been a U.S.
Customs Port of Entry for over 125 years, allowing international cargo to be shipped to Evansville in bond and clear custom upon arrival.
Retail Market Statistics
As of Q12018Evansville
Northside/
Airport
(Market) (Submarket)
Total Retail Inventory (SF) 21,062,868 2,497,748
Vacancy 6.7% 3.1%
12 Month Net Absorption (SF) -533,847 17,560
Evansville Demographic Snapshot
1-Mile 3-Miles 5-Miles
Total Population 8,097 52,096 124,105
Total Households 3,815 21,985 52,227
Average Household Income $46,592 $51,114 $57,328
Median Household Income $35,279 $37,866 $41,803
Popeyes | Evansville, INMarket Overview
Aerial Map
9© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
Evansville Country
Club
IN-66
22,700 VPD
Popeyes | Evansville, INMarket Overview
10© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
Looking North
Superior
Auto
River City
Pawn
North Park
Church
Nation’s
Medicines
Woodbridge
Place
192 Units
Fairway
Plaza
60 Units
Popeyes | Evansville, INMarket Overview
11© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
Looking South
Superior
Auto
River City
Pawn
Grandview Tower
Apartments
172 Units
St. Matthews
Church
Downtown
Evansville
Popeyes | Evansville, INMarket Overview
12© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
360° Aerial
W
S SE
SW
Popeyes | Evansville, INMarket Overview
13© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
360° Aerial Continued
NE
NWN
E
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 14
Tenant Overview Popeyes – Decatur Fastfood LLC
Popeyes | Evansville, IN
Popeyes Overview
Popeyes Louisiana Kitchen is a multinational chain of Cajun-inspired fried
chicken restaurants. Popeyes has restaurants in over 40 U.S. states, the District
of Columbia, Puerto Rico, and over 30 countries worldwide. With over 2,500
locations, Popeyes boasts the second-largest footprint of any U.S. chicken
chain. The company operates 30 corporate locations, while the remainder are
franchised.
In March of 2018, Popeyes was acquired by Restaurant Brands International, a
Canadian conglomerate that also owns and operates the Tim Hortons and
Burger King banners. Restaurant Brands International is traded on the New York
Stock Exchange under the “QSR” ticker, and recorded $4.58 billion in revenue in
2017.
Evansville Favorite Chicken, Inc. Overview
The subject Property is leased to Evansville Favorite Chicken, Inc., operated by
a multi-restaurant franchisee with extensive experience in the QSR industry. The
lease is guaranteed both by Decatur Fastfood LLC, and a personal guarantee
from the operator.
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 15
Tenant Overview
Popeyes | Evansville, IN
16
JLL Contacts
TRANSACTION LEADS
Peter BaumanJLL Capital Markets
+1 602 282 6289
Tivon MoffittJLL Capital Markets
+1 602 282 6348
www.us.jll.com/capitalmarketsCopyright © Jones Lang LaSalle IP, Inc. 2018This publication is the sole property of Jones Lang LaSalle and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle.
The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information.
We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance
on this publication. Jones Lang LaSalle Americas, Inc., California license # 01223413. Jones Lang LaSalle Americas, Inc. License # 19262.
Contact Information
PRODUCTION SUPPORT
Quinn McCarthyJLL Capital Markets
+1 312 228 3363
BROKER OF RECORD
John RobinsonMidwest Brokerage
+1 317 810 7172License # RC50900387