alpharetta, ga 30022 770.481.1960 · foods, academy sports, and hobby lobby. additionally, it is...

5755 North Point Parkway, Suite 262

Alpharetta, GA 30022

770.481.1960

www.shanegroup.net

LONGHORN GROUND LEASE

1095 Cobb Place Blvd NW, Kennesaw, GA

5755 North Point Parkway, Suite 262

Alpharetta, GA 30022

770.481.1960

www.shanegroup.net

File Photo: site under construction

http://www.shanegroup.net

http://www.shanegroup.net

1095 Cobb Place Blvd NW, Kennesaw, GA 770.481.1960 | www.shanegroup.net




See accompanying Confidentiality Statement.

INVESTMENT SUMMARY

AERIAL MAPS

SITE PLAN

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LEASE ABSTRACT

LOCATION MAPS

DEMOGRAPHICS

LongHorn is located in Kennesaw, GA, a high-growth Atlanta suburb approximately 30 miles north of downtown Atlanta. There are

approximately 170,000 people within 5 miles of the property with an average HH income just over $88,000. Additionally, there is a

tremendous daytime population of 60,000 within 3 miles and over 114,000 within 5 miles. The population has grown 10% to 20%

in this area since 2010 and is expected to grow another 7% to 10% over the next 5 years. As noted above, the property is located

on Barrett Pkwy (60,500 cars per day), near the corner of N. Cobb Pkwy (37,400 cars per day), conveniently off I-575 (78,500 cars

per day) and I-75 (145,900 cars per day). The property is located near the new 44-acre mixed-use development anchored by Whole

Foods, Academy Sports, and Hobby Lobby. Additionally, it is centrally located within a major retail node consisting of over 4mm SF

of retail, including the 1.2mm SF Town Center Mall (see the aerials for details). Finally, Kennesaw State University, the third largest

college in GA with over 35,000 students is approximately 3 miles to the north.

BUILDING: 5,842 SF | LAND: 1.70 ACRES | YEAR BUILT: 2018

Kennesaw, GA

Site Under Construction: Opening 3rd Qtr 2018

New 15-Year NNN Corporate Ground Lease

Over 97,000 Cars Per Day at Nearby Intersection

Rents at $32 PSF vs $45—$78 PSF (other new ground leases)

Major Retail Node: Over 4.2mm SF of Retail

Nearby new Whole Foods 44-Acre Mixed-Use Development

Significant Daytime Population: over 114,000 within 5 miles

LongHorn (Darden/RARE Hospitality) has executed a 15-year NNN Corporate Ground Lease with 10% increases every 5 years.

The location is superb, nearby to over 4mm SF of retail, including a new 44-acre mixed-use center anchored by Whole Foods. The

property is situated on Ernest W. Barrett Pkwy which has a car count of over 60,500 per day, and is just off N. Cobb Pkwy, with

another 37,400 cars per day. It’s also located less than a mile from two interstates (I-75 and I-575). Ground rent for LongHorn is

only $32 PSF, while other new ground rents in this immediate area are $45 to $78 PSF (see aerial map for details). LongHorn has

over 490 locations and 2017 Revenue of $1.6 Billion. It is a subsidiary of Darden Restaurants (NYSE: DRI, Market CAP: $11.3

Billion) which has over 1,700 locations and 2017 Revenue of $7.1 Billion.




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New Ground Lease Rents

Subject: LongHorn — $32 PSF

1. Panda Express — $45 PSF

2. Freddy’s Burgers — $45 PSF

3. Popeye’s Chicken — $50 PSF

4. SunTrust Bank — $78 PSF

Barrett Pkwy

60,500 Cars Per Day

N. Cobb Pkwy

37,400 Cars Per Day

1

2

3

4




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Interstate 575

78,500 Cars Per Day

Interstate 75

145,900 Cars Per Day

Town Center Mall at Cobb

Barrett Pkwy

60,500 Cars Per Day

N. Cobb Pkwy

37,400 Cars Per Day




INVESTMENT SUMMARY

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INVESTMENT SUMMARY

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Website: www.longhornsteakhouse.com

Locations: 490+

Founded: 1981 in Atlanta, GA

Headquarters: Orlando, FL

Parent Company: Darden Restaurants (see below)

Revenue (2017): $1.6 Billion

Website: www.darden.com

Locations 1,700+

NYSE / Market CAP: NYSE: DRI, Market CAP: $11.3 Billion

Credit Rating: BBB (S&P), Baa2 (Moody's)

Revenue (2017): $7.1 Billion

Locations 1,700+

LongHorn LongHorn Steakhouse was founded in 1981 by one man on a mission to bring legendary steak to the people of

Atlanta, Georgia. By 1990, the restaurant had spread throughout the East, Midwest and Southwest United States

and Puerto Rico. LongHorn Steaks Restaurant & Saloon became LongHorn Steakhouse in 1996 and, in 2007,

Darden Restaurants, Inc. purchased the restaurant.

RARE Hospitality

Darden Brands

RARE Hospitality International, Inc. is a wholly-owned subsidiary of Darden Restaurants, Inc. It owns and

operates substantially all of the LongHorn Steakhouse and The Capital Grill restaurants.

Darden Restaurants Darden Restaurants, Inc. (NYSE: DRI, Market CAP: $11.3 Billion, S&P: BBB) is the world's largest company-

owned and operated full-service restaurant company. Darden features a portfolio of differentiated brands that

include Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille,

Seasons 52, Bahama Breeze and Eddie V's. Our people equal our success, and we are proud to employ more than

175,000 team members in over 1,700 restaurants. Together, we create memorable experiences for 380 million

guests each year in communities across North America.




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Termination Date

Term

Increases

Security Deposit

Year Annual Base Rent

1 to 5 $185,000

6 to 10 $203,500

11 to 15 $223,850

16 to 20 $246,235

21 to 25 $270,859

26 to 30 $297,944

31 to 35 $327,739

$24,829

$27,312

Option 3

Option 4

15 Years plus Four 5 Year Options

Tenant Rare Hospitality International, Inc. (LongHorn)

Building / Land 5,842 SF / 1.70 Acres

Commencement Date Anticipated 3rd Quarter 2018

15 Years after Rent Commencement

Option 2 $22,572

10% every 5 Years

None

Rent Schedule Monthly Base Rent

$15,417

$16,958

$18,654

Option 1 $20,520

Taxes Paid by Tenant

Insurance Paid by Tenant

CAM Paid by Tenant

Utilities Paid by Tenant

Landlord Expenses None; Lease is completely NNN to Landlord




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Barrett Pkwy

60,500 Cars Per Day




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One Mile Three Miles Five Miles Notes

2017 Population 9,852 51,242 170,693

2012 Population 8,096 45,692 155,999

5 Year Projected 10,921 55,305 182,212

Growth Over the Past 5 Years 21.69% 12.15% 9.42%

Projected Growth Over the Next 5 Years 10.85% 7.93% 6.75%

2017 Households 4,600 20,169 64,411

% Owner Occupied 35.10% 43.40% 58.50%

% Renter Occupied 64.90% 56.60% 41.50%

2012 Households 3,797 17,725 58,655

5 Year Projected 5,097 21,821 68,782

Growth Over the Past 5 Years 21.15% 13.79% 9.81%


2017 Average Household Income $77,160 $78,119 $88,558

5 Year Projected $89,803 $89,508 $99,677


2017 Atlanta Average Household Income $81,382

2017 Georgia Average Household Income $70,633

Employment & Establishments

2017 Employees/Daytime Population 12,647 60,081 114,058

2017 Total Establishments 717 3,730 8,828

White 51.60% 58.90% 64.10%

African American 28.10% 24.40% 21.30%

Hispanic Origin (Any Race) 10.00% 11.90% 12.30%

Native American / Alaskan Native 0.30% 0.40% 0.30%

Asian/Pacific Islander 12.10% 7.50% 6.20%

Two or More Races 3.90% 3.60% 3.30%

Other Race 4.00% 5.20% 4.80%

Race

Population

Households

Income

Five Miles is 9% higher than Atlanta Avg.

Five Miles is 25% higher than Georgia Avg.

alpharetta, ga 30022 770.481.1960 · foods, academy sports, and hobby lobby. additionally, it is...

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