angola, indiana offering memorandumfiles.constantcontact.com/011cb4c9501/bf536f55-1832-412c... ·...

O F F E R I N G M E M O R A N D U MA N G O L A , I N D I A N A

Marcus & Millichap is pleased to present Ruby Tuesday in Angola, Indiana, 44 miles North of Fort Wayne. There are more than three years remaining on Ruby Tuesday’s absolute-net lease, where the tenant is responsible for all expenses associated with the asset. The lease is guaranteed by RT Michiana Franchise, Limited Liability Company (LLC), a wholly owned subsidiary of Ruby Tuesday Incorporated.

Ruby Tuesday was acquired by NRD Capital in December of 2017 for $146 million. NRD Capital is private equity firm focusing on franchise and chain business investing and growing high quality brands.

The subject asset is situated on the signalized hard corner of North Wayne Street and Northcrest Drive. Also, nearby is the Walmart Supercenter, the largest store in Angola encompassing more than 187,000 square feet. Vestil Manufacturing, located less than a mile North, is committing more than $15 million in capital investments to grow their current facility as well as a new warehouse.

Additional retailers in the immediate vicinity include: Wendy’s, Applebee’s, Meijer, Hobby Lobby, Buffalo Wild Wings, Bob Evans, McDonald’s, Taco Bell, Pizza Hut, Aspen Dental, Tractor Supply Company, CVS, KFC, Subway, Little Caesars, O’Reilly Auto Parts, KFC, Advance Auto Parts, and many more.

I N V E S T M E N T O V E R V I E W


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 is a trademark of © 2018 Marcus & Millichap. Activity ID:Z0330432

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• Ruby Tuesdays in Angola, Indiana | 44 Miles North of Fort Wayne

• More than Three Years Remaining on Absolute Net Lease with Zero Landlord Responsibilities

• Corporate Guaranty from RT Michiana Franchise, Limited Liability Company (LLC) | Wholly Owned Subsidiary of Ruby Tuesday, Incorporated | Operating more than 540 Units

• Ruby Tuesday Acquired by NRD Capital in December 2017 | Focus on Franchise and Chain Business Investing and Growing High Quality Brands

• Signalized, Hard Corner Location at the Intersection of North Wayne Street and Northcrest Drive

• Nearby Walmart Supercenter | The Largest Store in Angola | More than 187,000 Square Feet

• Capital Commitment to Angola | Vestil Manufacturing Adding $5 Million Addition Plus Brand New Facility Worth $10 Million Less than a Mile North

• Additional Retailers in the Immediate Vicinity Include: Wendy’s, Applebee’s, Meijer, Hobby Lobby, Buffalo Wild Wings, Bob Evans, McDonald’s, Taco Bell, Pizza Hut, Aspen Dental, Tractor Supply Company, CVS, KFC, Subway, Little Caesars, O’Reilly Auto Parts, KFC, Advance Auto Parts, and many more.



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F I N A N C I A L O V E R V I E W

PRICE $2,700,000

CAP RATE 7.21%

NOI $194,669

PRICE PER SQUARE FOOT $541.08

RENT PER SQUARE FOOT $39.01

YEAR BUILT 2001

APPROXIMATE LOT SIZE 1.30 Acres

GROSS LEASEABLE AREA 4,990

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTORRT Michiana Franchise Limited Liability Company (LLC)

LEASE TYPE Absolute-Net

ROOF AND STRUCTURE Tenant Responsible

F I N A N C I A L O V E R V I E W


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L E A S E S U M M A R Y

L E A S E S U M M A R Y

B A S E R E N TANNUAL

RENTMONTHLY

RENTINCREASES

CURRENT 6/30/2021 $194,669 $16,222

OPTIONS

7/1/2021 6/30/2026 $214,135 $17,845 10%

7/1/2026 6/30/2021 $235,549 $19,629 10%

A N N U A L I Z E D O P E R A T I N G D A T ALEASE COMMENCEMENT DATE 7/1/2001

LEASE EXPIRATION DATE 6/30/2021

LEASE TERM 20 Years

TERM REMAINING 3+ Years

INCREASES 10% Every 5 Years

OPTIONS TO RENEW 2, 5-Year

FIRST RIGHT OF REFUSAL Yes


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Ruby Tuesday restaurants offer a wide variety of menu options, including handcrafted classic burgers made with fresh 100 percent United States Department of Agriculture (USDA) choice beef, fresh chicken options, their signature “fall-off-the-bone” baby-back ribs, as well as steaks, seafood, and appetizers. Their Garden Bar has been a significant point of differentiation for the Ruby brand and an enduring favorite of diners. With up to 35 fresh, high quality salad ingredients, the Garden Bar exemplifies Ruby’s key attributes of freshness and quality.

Ruby Tuesday, Incorporated owns and franchises Ruby Tuesday brand restaurants. As of December 1, 2017; there were 596 Ruby Tuesday restaurants in 41 states, 14 foreign countries, and Guam. Of those restaurants, the company owns and operates 541 units and franchises 55 units.

DECEMBER 2017 ACQUISITION:

Ruby Tuesday, Incorporated was acquired by NRD Capital. The Atlanta-based private equity firm specializes in franchise and chain business investing and growing high quality brands. The acquisition was announced on October 16, 2017; and the transaction closed and became effective on December 21, 2017.

TENANT PROFILE

TENANT TRADE NAME Ruby Tuesday

OWNERSHIP Private

TENANT Ruby Tuesday

LEASE GUARANTORRT Michiana Franchise,

Limited Liability Company (LLC)

NUMBER OF LOCATIONS 541 Units

HEADQUARTERED Maryville, Tennessee

WEB SITE www.rubytuesday.com

SALES VOLUME $1.1 Billion (2016)

T E N A N T O V E R V I E W - R U B Y T U E S D A Y

T E N A N T O V E R V I E W

About NRD Capital

NRD Capital invests in brands that offer superior products or services and compelling unit-level economics in order to help them strategically grow through the power of franchising. The fund was founded in 2014 by Aziz Hashim, one of the world’s leading experts on franchising, with the goal of leveraging operational and financial experience to position high quality brands for accelerated but responsible growth. The differentiated private equity fund takes a unique approach to investing, applying operating expertise and leveraging its wide network of franchisees, in addition to infusing capital in its portfolio companies.


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D E M O G R A P H I C S

D E M O G R A P H I C S

1-Mile 3-Mile 5-Mile

P O P U L AT I O N2000 Population 10,635 16,373 31,720

2010 Population 11,127 16,847 32,563

2017 Population 11,317 17,262 32,976

2022 Population 11,438 17,471 33,281


H O U S E H O L D S


H O U S E H O L D ( H H ) I N C O M E S

2000 Households 4,145 6,335 12,176

2010 Households 4,318 6,503 12,689

2017 Households 4,398 6,673 12,859

2022 Households 4,448 6,757 12,983

2017 Average HH Income $59,627 $64,876 $67,421

2017 Median HH In-come $47,491 $50,757 $52,450

2017 Per Capita In-come $23,172 $25,079 $26,291


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A N G O L A , I N D I A N A

The Angola area is best known as Nor thern Indiana’s lake country, and the laid-back l i festyle and access to lake activi t ies and outdoor recreation is one of the top reasons people choose to l ive here . But Angola also has so many other appeals: a brand new, state-of-the-ar t hospital , a premier national ly-accredited private universi ty, safe neighborhoods and an affordable cost of l iv ing , a blossoming downtown, a growing economy and entrepreneurial spir i t , and an overal l qual i ty of l i fe and warm and welcoming community that make this a great place to cal l home.

A B O U T A N G O L A A N G O L A D O W N T O W N R E V I T A L I Z A T I O NThe Angola Downtown Revital izat ion Plan is a fol low-up to and bui lds on the Downtown Action Agenda, which outl ined broad conceptual recommendations for the future of Downtown Angola . The Downtown Revital izat ion Planning effor t is a process, led by a consultant team of designers and business professionals with experience in Downtown planning and development , along with City staff and area stakeholders . At the end of the effor t , the concepts and design work produced are intended to be the basis for City pol icy decisions related to planning, zoning and redevelopment incentives as wel l as resource al location decisions to improve Downtown infrastructure and roadways .


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MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS:

The i n f o rma t i on con t a i ned i n t h i s Ma r ke t i ng B rochu re has been ob t a i ned f r om sou rces we be l i e ve t o be r e l i ab l e. Howeve r, Ma rcus & M i l l i c hap has no t and w i l l no t ve r i f y an y o f t h i s i n f o rma t i on , no r has Ma rcus & M i l l i c hap conduc ted any i n ves t i ga t i on r ega rd i ng t hese ma t t e r s . Ma rcus & M i l l i c hap makes no gua ran t ee, wa r r an t y o r r ep resen t a t i on wha t soeve r abou t t he accu racy o r comp le t eness o f an y i n f o rma t i on p ro v i ded .

As t he Buye r o f a ne t l e a sed p rope r t y, i t i s t he Buye r ’s r e spons i b i l i t y t o i ndependen t l y con f i rm t he accu racy and comp le t eness o f a l l ma te r i a l i n f o rma t i on be fo re comp le t i ng any pu r chase. Th i s Ma rke t i ng B rochu re i s no t a subs t i t u t e f o r you r t ho rough due d i l i gence i n ves t i ga t i on o f t h i s i n ves tmen t oppo r t un i t y. Ma rcus & M i l l i c hap e xp ress l y den i e s any ob l i ga t i on t o conduc t a due d i l i gence e xam ina t i on o f t h i s P rope r t y f o r Buye r.

Any p ro j ec t i ons , op i n i ons , a s sump t i ons o r e s t ima tes used i n t h i s Ma r ke t i ng B rochu re a r e f o r e xamp le on l y and do no t r ep resen t t he cu r r en t o r f u t u r e pe r f o rmance o f t h i s p rope r t y. The va l ue o f a ne t l e a sed p rope r t y t o you depends on f ac to r s t ha t shou l d be e va l ua t ed by you and you r t a x , f i n anc i a l and l ega l adv i so r s .

Buye r and Buye r ’s t a x , f i n anc i a l , l ega l , and cons t r uc t i on adv i so r s shou l d conduc t a ca re f u l , i ndependen t i n ves t i ga t i on o f an y ne t l e a sed p rope r t y t o de t e rm ine t o you r sa t i s f ac t i on w i t h t he su i t ab i l i t y o f t he p rope r t y f o r you r needs .

L i ke a l l r ea l e s t a t e i n ves tmen t s , t h i s i n ves tmen t ca r r i e s s i gn i f i c an t r i s k s . Buye r and Buye r ’s l ega l and f i n anc i a l adv i so r s mus t r eques t and ca re f u l l y r e v i ew a l l l ega l and f i n anc i a l documen t s r e l a t ed t o t he p rope r t y and t enan t . Wh i l e t he t enan t ’s pas t pe r f o rmance a t t h i s o r o t he r l oca t i ons i s an impo r t an t cons i de r a t i on , i t i s no t a gua r an t ee o f f u t u r e success . S im i l a r l y, t he l ease r a t e f o r some p rope r t i e s , i n c l ud i ng new l y -cons t r uc t ed f ac i l i t i e s o r new l y - acqu i r ed l oca t i ons , may be se t based on a t enan t ’s p ro j ec t ed sa l e s w i t h l i t t l e o r no r eco rd o f ac t ua l pe r f o rmance, o r compa rab l e r en t s f o r t he a r ea . Re tu r ns a r e no t gua r an t eed ; t he t enan t and any gua r an to r s may f a i l t o pay t he l ease r en t o r p rope r t y t a xes , o r may f a i l t o comp l y w i t h o t he r ma te r i a l t e rms o f t he l ease ; cash f l ow may be i n t e r r up t ed i n pa r t o r i n who l e due t o ma rke t , econom ic, env i r onmen ta l o r o t he r cond i t i ons . Rega rd l e s s o f t enan t h i s t o r y and l ease gua r an t ees , Buye r i s r e spons i b l e f o r conduc t i ng h i s /he r own i n ves t i ga t i on o f a l l ma t t e r s a f f ec t i ng t he i n t r i n s i c v a l ue o f t he p rope r t y and t he va l ue o f an y l ong- t e rm l ease, i n c l ud i ng t he l i k e l i hood o f l oca t i ng a r ep l acemen t t enan t i f t he cu r r en t t enan t shou l d de f au l t o r abandon t he p rope r t y, and t he l ease t e rms t ha t Buye r may be ab l e t o nego t i a t e w i t h a po ten t i a l r ep l acemen t t enan t cons i de r i ng t he l oca t i on o f t he p rope r t y, and Buye r ’s l ega l ab i l i t y t o make a l t e r na t e use o f t he p rope r t y.

By accep t i ng t h i s Ma r ke t i ng B rochu re you ag ree t o r e l ease Ma rcus & M i l l i c hap Rea l E s t a t e I n ves tmen t Se r v i ces and ho l d i t ha rm less f r om any k i nd o f c l a im , cos t , e xpense, o r l i ab i l i t y a r i s i ng ou t o f you r i n ves t i ga t i on and /o r pu r chase o f t h i s ne t l e a sed p rope r t y.

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O F F E R I N G M E M O R A N D U MA N G O L A , I N D I A N A

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