burger king - matthews · 2019. 5. 16. · owner, nor their officers, employees, ... • healthy...

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R E T A I L A D V I S O R SOFFERING MEMORANDUM

BURGER KING 1097 ENGEL AVE, CHATTANOOGA, TN 37421

Matthews Retail Advisors

CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Burger King located at 1097 Engel Ave, Chattanooga, TN 37421 (“Property”) . I t has been prepared by Matthews Retai l Advisors . This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors . The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

EXCLUSIVELY LISTED BY:

Table of ContentsPRICING & FINANCIAL ANALYSIS

Investment Highlights ................................................... 2Executive Summary ..................................................... 3Company Overview ................................................... 4

PROPERTY DESCRIPTIONPhysical Description ..................................................... 7Tenant Map ................................................................ 8Regional Map ............................................................. 9Bird’s Eye ................................................................. 10

DEMOGRAPHICSCity Overview | Chattanooga, TN .............................. 12Demographics Report ................................................ 13

James HollemanBroker of RecordCornerstone Commercial Real Estate Services, LLC License No. 235328

Gary ChouDirector | Restaurant Practice Group DIRECT +1.310.919.5827 MOBILE +1.714.928.8016 [email protected] License No. 01911222

Matthews Retail Advisors

Pricing & Financial Analysis

OFFERING MEMORANDUM | Burger KingP. 2 Matthews Retail Advisors

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

STRONG OPERATOR AND BRAND

• Highly Recognized National Brand – Burger King is the second largest hamburger chain in the world with over 13,000 stores in operations

• Healthy Rent-to-Sales Ratio – Burger King Franchisee is operating with a low occupancy cost making location profitable for them

• Award Winning Operator – Hometown Folks is headquartered in Chattanooga, TN and has been recognized with the Brand Leadership Award from Burger King Corporate for successfully operating 18+ BK locations

GREAT RETAIL LOCATION

• Strong Retail Corridor - Other national tenants include Hardee’s, Bojangles’, Dollar General, Pizza Hut, Taco Bell, Sprint, Bi-Lo Pharmacy, among others

• High Local Traffic Counts – Brainerd Rd supports over 32,000 CPD and the property can be easily seen and accessed going both directions

• Rapidly Growing Community – 13.96% growth 2000-2010; 6.71% growth 2010-2015; projected 6.04% growth 2015-2020 within a one mile radius

PERFECT FOR OUT-OF-STATE INVESTORS

• Absolute NNN Investment – Zero landlord responsibility making this investment great for out of state investors looking for passive income

Investment Highlights

Matthews Retail Advisors P. 3Burger King | OFFERING MEMORANDUM


Executive Summary

BURGER KING1097 ENGEL AVE CHATTANOOGA, TN 37421

List Price ........................................................................................... $1,026,000CAP Rate - Current ...................................................................................8.92%Gross Leasable Area ......................................................................... 3,300 SFLot Size ....................................................................... 0.78 Acres (33,977 SF)Year Built ........................................................................................................1998

Annualized Operating DataMonthly Rent Annual Rent CAP Rate

Current - 12/27/2018 $7,621.48 $91,457.81 8.92%

Tenant Summary

Tenant Trade Name Burger King

Type of Ownership Fee Simple

Lease Guarantor Franchisee

Lease Type NNN

Roof and Structure Tenant

Original Lease Term 15 Years

Lease Commencement Date 12/18/2003

Rent Commencement Date 12/18/2003

Lease Expiration Date 12/27/2018

Term Remaining on Lease 3.3 Years

Increases None - Percentage Rent

Options Two (2) 5-Year Options

• Rent includes percentage rent of 8% of sales• Base Rent: $66,792.72• Percentage Rent: $24,665.81*• *Overages were calculated using average sales for past 3 years



Company Overview

Burger King is a global chain of hamburger fast food restaurants headquartered in Miami, Florida. The company began in 1953 as Insta-Burger King. but after financial difficulties in 1954, two large franchisees in Miami, purchased the company and renamed it Burger King. In 2002, a third set of owners, a partnership of TPG Capital, Bain Capital, and Goldman Sachs Capital Partners, took it public. Eight years later, 3G Capital of Brazil acquired a majority stake in BK and the new owners promptly initiated a restructuring of the company to reverse its declining market share. 3G, along with partner Berkshire Hathaway, merged the company with Canadian-based doughnut chain Tim Hortons under a new Canadian-based parent company, Restaurant Brands International which was founded on August 25, 2014. The multinational giant currently serves customers in US and Canada, Europe, Middle East and Africa, Latin America, the Caribbean, and Asia Pacific.

Property Name Burger King

Property Type Net Leased Quick Service Restaurant

Parent Company Trade Name Restaurant Brands International Inc.

Ownership Public

Credit Rating B+

Rating Agency Standard & Poor’s

Revenue $1.97 B

Net Income $117.7 M

Stock Symbol QSR

Board NYSE

No. of Locations ±13,000

No. of Employees ±34,000

Headquartered Miami, FL

Web Site http://www.bk.com/

Year Founded 1953

Property Description



Physical Description

THE OFFERING

Property Name .................................................................................... Burger King

Property Address .........................................................................1097 Engel Ave

Chattanooga, TN 37421

Assessor’s Parcel Number ..................................................................171A-A-013

SITE DESCRIPTION

Number of Stories .............................................................................................One

Year Built .............................................................................................................1998

Gross Leasable Area (GLA) ................................................................... 3,300 SF

Lot Size............................................................................. 0.78 Acres (33,937 SF)

Type of Ownership ...............................................................................Fee Simple

Landscaping ........................................................................................Professional

Topography ................................................................................... Generally Level

CONSTRUCTION

Foundation .......................................................................................Concrete Slab

Framing .............................................................................................................Wood

Exterior ............................................................................................ Painted Stucco

Parking Surface ............................................................................................Asphalt

Roof ........................................................................................................................Flat



Tenant Map



Regional Map



Bird’s Eye

Demographics


PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

City Overview | Chattanooga, TN

Chattanooga, the 4th largest city in the state, is located in Southeast Tennessee near the border of Georgia at the junction of four interstate highways. The city has received national recognition for the renaissance of its beautiful downtown and redevelopment of its riverfront. The city boasts the most productive affordable housing program in the nation, and is notable for leveraging development funds through effective public/private partnerships, with significant civic involvement on the part of private foundations. Chattanooga was one of the first US cities to effectively use a citizen visioning process to set specific long-range goals to enrich the lives of residents and visitors.

Attractions such as the Tennessee Aquarium, Lookout Mountain, Civil War battlefield sites, the African American Museum, and the Appalachian Trail bring thousands of people to the area, as do events like the Riverbend Festival, Bessie Smith Strut, Fall Color Cruise, the Creative Discovery Museum for children, and the Southern Writers Conference. Chattanooga is the home of NCAA Division I-AA national football championships and hosts the national softball championships every year.

People who love the out-of-doors use Chattanooga as a base for hang-gliding, bass fishing, mountain climbing and caving expeditions; the verdant Smoky Mountains and Tennessee River watershed support the greatest variety of flora of any area in the United States.

The local economy includes a diversified mix of manufacturing and service industries, four colleges, and several preparatory schools known throughout the South. “Sustainability” is a key concept for industry and government working together for enlightened development.

With its scenic beauty, stable population and economy, civic vitality and cross-sector partnerships, fiscal integrity, and strategic location, Chattanooga enters the 21st century as one of the most progressive and livable mid-size cities in the US. In this decade the city has won 3 national awards for outstanding “livability”, and 9 Gunther Blue Ribbon Awards for excellence in housing and consolidated planning.



Demographics ReportPopulation 1-Mile 3-Mile 5-Mile2020 Projection 4,830 39,710 102,1112015 Estimate 4,555 37,465 97,1472010 Census 4,268 35,158 92,2572000 Census 3,746 28,673 79,250Growth 2015-2020 6.04% 5.99% 5.11%Growth 2010-2015 6.71% 6.56% 5.30%Growth 2000-2010 13.96% 22.62% 16.41%

Households2020 Projection 1,972 16,680 41,9312015 Estimate 1,871 15,738 39,8602010 Census 1,772 14,799 37,8302000 Census 1,585 12,004 32,208Growth 2015-2020 5.36% 5.99% 5.20%Growth 2010-2015 5.62% 6.34% 5.37%Growth 2000-2010 11.82% 23.28% 17.45%

Income$0 - $15,000 8.66% 9.01% 9.01%$15,000 - $24,999 10.21% 8.53% 8.53%$25,000 - $34,999 7.70% 10.60% 10.60%$35,000 - $49,999 14.38% 15.15% 15.15%$50,000 - $74,999 17.96% 18.58% 18.58%$75,000 - $99,999 16.62% 14.49% 14.49%$100,000 - $124,999 12.77% 10.13% 10.13%$125,000 - $149,999 5.61% 5.43% 5.43%$150,000 - $199,999 3.15% 4.70% 4.70%$200,000 - $249,999 1.23% 1.56% 1.56%$250,000 - $499,999 1.39% 1.51% 1.51%$500,000+ 0.27% 0.30% 0.30%2015 Est. Average Household Income $73,291 $73,319 $66,627 2015 Est. Median Household Income $62,631 $59,013 $51,985

Matthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.Matthews.com

BURGER KING1097 Engel AveChattanooga, TN 37421OFFERING MEMORANDUM

Gary ChouDirector | Restaurant Practice Group DIRECT +1.310.919.5827 MOBILE +1.714.928.8016 [email protected] License No. 01911222

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James HollemanBroker of RecordCornerstone Commercial Real Estate Services, LLC License No. 235328

burger king - matthews · 2019. 5. 16. · owner, nor their officers, employees, ... • healthy...

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