chuy’s ground lease › d2 › f6xt_2ngaxa7wzmrv_evxf6y7ib… · chuy’s is a tex-mex restaurant...

OFFERING MEMORANDUM

CHUY’S GROUND LEASE904 E LAFAYETTE STREET, TALLAHASSEE, FLORIDA

The information in this package 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2020 Marcus Millichap.

DOWNTOWN

TALLAHASSEE

32,800 STUDENTS

18,500 STUDENTS

9,600 STUDENTS

MARCUS & MILLICHAP 2 // Chuy’s Ground Lease

FINANCIAL SUMMARY

Price $5,400,000

Cap Rate 6.0%

Building Size 7,375 SF

Annual Rent $319,000 (1)

Net Operating Income $324,000 (2)

Year Built 2015

Lot Size 1.96 Acres

LEASE SUMMARY

Lease Type Absolute Triple-Net (NNN) Ground Lease

Tenant Chuy’s OPCO, Inc.

Guarantor Chuy’s Holdings, Inc.

Rent Commencement Date May 10, 2016

Lease Expiration Date June 30, 2031

Lease Term Remaining 11 Years

Rental Increases 10% Every 5 Years

Renewal Options 3, 5 Year Options

ANNUALIZED OPERATING DATA

Lease Years Annual Rent Cap Rate

1 - 5 $289,999.92 5.37%

6 - 10 $318,999.96 5.91%

11 - 15 $350,899.92 6.50%

Lease Years Annual Rent Cap Rate

Option 1 $385,989.96 7.15%

Option 2 $424,589.04 7.86%

Option 3 $467,047.92 8.65%

Base Rent $319,000

Billboard Rent $5,000

Net Operating Income $324,000

Total Return 6.0% $324,000

Executive Summary904 E Lafayette Street, Tallahassee, FL 32301

(1) Rent is based off of June 2021 Rent Increase (Year 6 of Lease Term).(2) Net Operating Income includes $5,000 annual Billboard Rent on site.


BURGERKING

MCDONALD’SMCDONALD’S

Walgreens

31,100 CPDE LAFAYETTE ST


DEMOGRAPHICS 1-mile 3-miles 5-miles

INVESTMENT HIGHLIGHTS

» 11 Years Remaining on Absolute Triple-Net (NNN) Ground Lease

» 10% Rental Increases Every 5 Years - Next Increase Occurs June 2021

» 167,934 Residents within a 5-Mile Radius - Infill Tallahassee

» Corporate Lease Guaranteed by Chuy’s Holdings, Inc.

» Located in Dense Retail Corridor - Surrounding National Retailers Include Best Buy,

Michaels, Dollar Tree, Bed Bath & Beyond, Target, and More

» Walking Distance from Florida State Capitol

» Excellent Access and Visibility Along Lafayette Street (31,100+ Cars/Day)

» Less Than 2 Miles from Florida State University (32,800 Students) and Florida A&M

University (9,600 Students)

» Down the Road from Governor’s Square, a Super-regional Shopping Mall

» Strong Daytime Population - 303,700 Employees in Surrounding Area

Population

2024 Projection 5,791 88,360 171,686

2019 Estimate 5,575 87,562 167,934

Growth 2019 - 2024 3.88% 0.91% 2.23%

Households

2024 Projection 3,319 36,986 72,831

2019 Estimate 3,192 36,433 70,803

Growth 2019 - 2024 3.99% 1.52% 2.86%

Income

2019 Est. Average Household Income

$66,498 $56,140 $61,674

2019 Est. MedianHousehold Income

$47,676 $38,979 $42,068

2019 Est. Per Capita Income

$38,901 $25,328 $27,163

Property Description


Chuy’s is a Tex-Mex restaurant chain established in 1982 in Austin, Texas by Mike

Young and John Zapp. As of March 2019, Chuy’s had close to 100 restaurants

in 19 states: Alabama, Arkansas, Colorado, Florida, Georgia, Indiana, Illinois,

Kansas, Kentucky, Louisiana, Texas, Tennessee, Oklahoma, North Carolina,

South Carolina, Maryland, Virginia, Missouri, and Ohio.

Chuy’s restaurants have a common decor, but each location is unique in format,

offering an “unchained” look and feel, as expressed by the motto “If you’ve seen

one Chuy’s, you’ve seen one Chuy’s!” The restaurants have an upbeat, funky,

eclectic, somewhat irreverent atmosphere while still maintaining a family-friendly

environment. Chuy’s is committed to providing value to its guest through offering

large portions of made-from-scratch, flavorful Tex-Mex inspired dishes using

fresh, high-quality ingredients.

The first Chuy’s location opened on April 16, 1982 in Austin, Texas. The first

location outside of Texas opened in November of 2009 in Nashville, Tennessee.

Austin, Texas NASDAQ: CHUY 100+ 1982 chuys.com

Headquarters Stock Symbol Locations Founded Website

Tenant Overview


Tallahassee, the capital city of Florida, is the county seat and only incorporated

municipality in Leon County. In 2018, the population was 193,551, making

it the 7th-largest city in the state. The population of the greater Tallahassee

metropolitan area was 385,145 in 2018. Tallahassee is the largest city in the

Florida Big Bend and Florida Panhandle region, and the main center for trade

and agriculture in the Florida Big Bend and Southwest Georgia regions.

The city is home to Florida State University, ranked the nation’s eighteenth best

public university by U.S. News & World Report. It is also home to Florida A&M

University. Thus, the city qualifies as a significant college town, with a student

population exceeding 70,000. With two major universities and one of the state’s

largest community colleges, the city has a major pipeline for training and

education its workforce to meet businesses’ needs.

As the capital, Tallahassee is the site of the Florida State Capitol, Supreme Court

of Florida, Florida Governor’s Mansion, and nearly 30 state agency headquarters.

The city is also known for its large number of law firms, lobbying organizations,

trade associations and professional associations, including the Florida Bar and

the Florida Chamber of Commerce. It is a recognized regional center for scientific

research, and home to the National High Magnetic Field Laboratory.

Companies based in Tallahassee include: Citizens Property Insurance

Corporation, the Municipal Code Corporation, and the State Board of

Administration in Florida (SBA). The top employers in the city include the State

of Florida, Florida State University, and Leon County School Board.

1 Mileto Downtown

Tallahassee

2 Milesto Florida State

University

2 Milesto Florida A&M

University

7 Milesto Tallahassee

International Airport

Location Overview


NET LEASED DISCLAIMERMarcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

CONFIDENTIALITY AGREEMENTThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be

reviewed only by the party receiving it from Marcus & Millichap Real Estate Investment Services of Florida, Inc. (“Marcus & Millichap”) and should not be made available to any other person or entity without the written consentof Marcus & Millichap.

This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of theinformation set forth herein.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

SPECIAL COVID-19 NOTICEAll potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.

[ exclusively listed by ]Jamie A. MedressSenior Managing Director602 687 [email protected]

Chris N. LindFirst Vice President 602 687 [email protected]

Scott RubleDirector602 687 [email protected]

Ryan NeeBroker of Record(954) 245-3400License: BK3154667

Mark J. RubleSenior Managing Director602 687 [email protected]

Offices Nationwidewww.marcusmillichap.com

chuy’s ground lease › d2 › f6xt_2ngaxa7wzmrv_evxf6y7ib… · chuy’s is a tex-mex restaurant...

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