hardee’s - columbus, oh james capital advisors, inc....corporate guarantee from premier hardee’s...

JAMES CAPITAL ADVISORS, INC.HARDEE’S - COLUMBUS, OH

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JAMES CAPITAL ADVISORS

MARKETING PACKAGE

CONTENTS

CONTACT INFORMATION

PAGE

Investment Summary

Lease Summary

Investment Highlights

Rent Schedule

Retail Aerials

Site Plan

About the Brand

Location Overview

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Richard BrehautVice President, Net Lease(424) [email protected]

3444 S. High StColumbus, OH 43207

3444 S. High St, Columbus, OH 4320703

HARDEE’S - COLUMBUS, OH

INVESTMENT SUMMARY

Tenant

Street Address

City

State

Zip

GLA

Lot Size

Year Built

$2.2M5.65%$127K

Price / SF

Rent / SF

$959.86

$54.23

Hardee’s

3444 S. High St

Columbus

OH

43207

2,351 SF

0.60 AC

2017

$2,256,637PURCHASE PRICE

5.65%CAP RATE

$127,500NET OPERATING INCOME

Long-Term Absolute Net (NNN) LeaseIn August 2019, Hardee’s signed a long-term 20-Year Absolute Net lease with ten, five-year options.

Brand New ConstructionThe building was constructed in 2017 and features Hardee’s latest prototype.

Attractive Rental Increases to Hedge Against InflationThe lease will feature 10% increases every 5 years, including options, giving the landlord the benefit of compounding rent growth throughout the base term and option periods.

Corporate Guarantee from Premier Hardee’s FranchiseeStarCorp, LLC is one of the fastest-growing franchisee’s in the CKE System with 135+ Units Nationwide.



LEASE SUMMARY

Lease Type

Type of Ownership

Original Lease Term

Commencement Date

Lease Expiration

Term Remaining

Increases

Options

Real Estate Taxes

Insurance

Roof & Structure

Lease Guarantor

Company Name

Ownership

Number of Locations

Absolute Net (NNN)

Fee Simple

20 Years

8/5/2019

8/31/2039

19.84 Years

10% Every Five Years

Ten (10), Five-Year

Tenant Responsible

Tenant Responsible

Tenant Responsible

Franchisee

StarCorp

Private

135+

Decades of Successful Operating HistoryFounded in 1960, Hardee’s was acquired in 1997 by CKE Restaurants Holdings, Inc., the parent company of Carl’s Jr. Today, there are more than 1,932 Hardee’s locations nationwide.Home to The Ohio State UniversityColumbus is home to The Ohio State University, one of the largest college campuses in the United States, with approximately 65,000 students and over 6,200 faculty. It also has one of the most competitive intercollegiate programs in the nation.Hard Corner, Signalized LocationThe subject property is located on the SW. Corner of the intersection of S. High St and Williams Rd with daily traffic counts exceeding 38,446 vehicles per day.

Adjacent to 400K SF Power CenterThe subject property is located across the street from a 400K SF shopping center anchored by Walmart and Kroger. The center features out pads with national retailers including Wendy’s, Taco Bell, Pizza Hut, Popeyes, Arby’s and White Castle.



Investment Highlights

Thriving Retail CorridorMajor national retailers in the immediate trade area include Lowe’s, Walmart, Kroger, ALDI, WAG, CVS, McDonald’s, Wendy’s, AutoZone, Planet Fitness, T-Mobile and Dollar Tree.

Strong, Infill DemographicsThere are 45K people within three miles and 170K people within five miles of the subject property.

Proximity to Major Traffic ArteryThe subject property benefits from its proximity to a point of ingress and egress to Interstate-270, which has daily traffic counts exceeding 92,412 vehicles per day.

The Largest City in OhioColumbus is the capital of Ohio and the largest city in the state with a population of over 860,000. It is also the 14th largest city in the United States.



RENT SCHEDULE

PERIOD

8/5/2019 - 8/31/2024

9/1/2024 - 8/31/2029

9/1/2029 - 8/31/2034

9/1/2034 - 8/31/2039

9/1/2039 - 8/31/2044

9/1/2044 - 8/31/2049

9/1/2049 - 8/31/2054

9/1/2054 - 8/31/2059

9/1/2059 - 8/31/2064

9/1/2064 - 8/31/2069

9/1/2069 - 8/31/2074

9/1/2074 - 8/31/2079

9/1/2079 - 8/31/2084

9/1/2084 - 8/31/2089

TERM

Base Term

Base Term

Base Term

Base Term

1st Option

2nd Option

3rd Option

4th Option

5th Option

6th Option

7th Option

8th Option

9th Option

10th Option

ANNUAL RENT

$127,500.00

$140,250.00

$154,275.00

$169,702.50

$186,672.75

$205,340.03

$225,874.03

$248,461.43

$273,307.57

$300,638.33

$330,702.16

$363,772.38

$400,149.62

$440,164.58

MONTLY RENT

$10,625

$11,687.50

$12,856.25

$14,141.88

$15,556.06

$17,111.67

$18,822.84

$20,705.12

$22,775.63

$25,053.19

$27,558.51

$30,314.37

$33,345.80

$36,680.38

INCREASE

-

10%

10%

10%

10%

10%

10%

10%

10%

10%

10%

10%

10%

10%

CAP RATE

5.65%

6.22%

6.84%

7.52%

8.27%

9.10%

10.01%

11.01%

12.11%

13.32%

14.65%

16.12%

17.73%

19.51%



RETAIL AERIAL



SITE PLAN



ABOUT THE BRAND

About Roark Capital Group

In November 2013, Roark Capital Group (RCG), an Atlanta based private equity firm, acquired CKE Restaurant Holdings for $1.65-1.75 billion. Since inception, affiliates of Roark have acquired 74 franchise/multi-unit brands which generate approximately $37 billion in system revenues from 36,000 locations located in 50 states and 81 countries. Their largest sector, food and restaurants, encompasses 25 investments in brands such as: Inspire Brands (the owner of Arby’s, Buffalo Wild Wings, and Sonic), CKE Restaurants (the owner of Carl’s Jr. and Hardee’s), Corner Bakery, Culver’s, FOCUS Brands (the owner of Auntie Anne’s Pretzels, Cinnabon and Jamba Juice) Jimmy John’s, Miller’s Ale House, Naf Naf Middle Eastern Grill, and Wingstop.

StarCorp, LLC, the entity behind the lease, is one of the largest and fastest growing franchisee’s in the system. They currently operate more than 135+ Hardee’s in AZ, TX and the Midwest.

Hardee’s is an American quick service restaurant with locations primarily in the Southern and Midwestern United States, serving burgers, milkshakes, and breakfast among other fast food products. Established in North Carolina in 1960, Hardee’s was acquired in 1997 by CKE Restaurants Holdings, Inc., the parent company of Carl’s Jr., for $327 million. The acquisition resulted in a combined total of more than 3,300 Carl’s Jr. and Hardee’s locations in the U.S. and more than 28 countries and a merging of the two brands.

Sustainable FutureHardee’s recently announced it will be partnering with Beyond Meat as one of the first U.S. quick-service restaurants to offer plant-based breakfast, lunch, and dinner options. They hope to make plant-based options accessible in more and more communities as they move toward a better-for-you, more sustainable future.

Headquarters

RCG Headquarters

Franklin, TN

Atlanta, GA

Website

System Revenue

www.Hardees.com

$37 Billion

CKE Credit Rating

# of Franchise Brands

B-

74 Brands

Locations

Locations

1,932

36,000



LOCATION OVERVIEW

Columbus, OhioColumbus is the state capital and the most populous city in the U.S. state of Ohio. With a population of 892,533, it is the 14th-most populous city in the United States and one of the fastest growing, large cities in the nation. This makes Columbus the second-most populous city in the Midwest (after Chicago, Illinois). It is the core city of the Columbus, OH Metropolitan Statistical Area, which encompasses ten counties. The city has a diverse economy based on education, government, insurance, banking, defense, aviation, food, clothes, logistics, steel, energy, medical research, health care, hospitality, retail, and technology.

Home to Fortune 500 CompaniesOhio is ranked number five in the nation for headquarters of Fortune 500 companies, more than 20 Ohio companies have made Forbes 2018 list of the best large employers in the nation. Columbus was also reecently included on the New York Times’ list of “52 Places to Visit in 2019”.

Columbus, OH

Columbus MSAGreater Columbus is one of the largest metropolitan areas in the Midwestern United States. It is part of the Great Lakes Megalopolis, containing an estimated 59 million people.Diverse Economy and PopulationThe Columbus region is home to a population of 2.1 million and has a potential workforce of 1 million. The region boasts one of the youngest and most-educated populations: the median age is 35.8 and more than 36 percent of residents hold a bachelor’s degree. The region also has one of the highest concentrations of college students in the nation, and one of the highest populations of millennials.

Nationwide Children’s HospitalNationwide Children’s Hospital is a primary pediatric hospital in Columbus, Ohio, with more than 1,379 medical staff members and over 11,909 total employees. In recent years, the hospital has been ranked as one of America’s Best Children’s Hospitals by US News & World Report.

Largest Private Research & Development FoundationColumbus is home to the Battelle Memorial Institute, the world’s largest private research and development foundation.

Nationwide Childrens Hospital


1. Ohio State University190 N. Oval Mall, Columbus, OH 43210

8 MILES FROM THE SUBJECT PROPERTY

2. Ohio Stadium411 Woody Hayes Dr., Columbus, OH 43210


3. Columbus Zoo and Aquarium4850 W. Powell Rd, Powell, OH 43065


4. Columbus Museum of Art480 E. Broad St, Columbus, OH 43215


5. Franklin Park Botanical Gardens1777 E. Broad St., Columbus, OH 43203


6. Brewery District588 S. Third St., Columbus, OH 43215



LOCATION OVERVIEW



LOCATION OVERVIEW

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Ohio State UniversityOSU is the third-largest university campus in the United States with over 66,000 enrolled students.

Columbus Museum of ArtFormed in 1878 as the Columbus Gallery of Fine Arts, it was the first art museum to register its charter with the state of Ohio.

Ohio StadiumThe Ohio Stadium is home to the Ohio State Buckeyes. It can fit over 100,000 visitors at any one time.

Franklin Park Botanical GardensThis very popular botanical garden built in 1895 features more than 400 plant species.

Columbus Zoo and AquariumThis zoo was rated the number one zoo in the United States by the USA Travel Guide.

Brewery DistrictAn industrial hub of the city’s historic beer scene is full of lively entertainment and dining options.


Ohio State University Enrollment The university has an extensive student life program, with over It has over 66,000 enrolled students; 1,000 student organizations; intercollegiate, club and recreational sports programs; student media organizations and publications, fraternities and sororities.

Ohio State Buckeyes FootballThe Ohio State Buckeyes football team competes as part of the NCAA Division I Football Bowl Subdivision, representing the Ohio State University in the East Division of the Big Ten Conference. As of 2017, the football program is valued at $1.5 billion, the highest valuation of any such program in the country.

Ohio StadiumOhio Stadium, is an American football stadium in Columbus, Ohio, on the campus of The Ohio State University. With a capacity of 104,944, it is the largest stadium by capacity in the state of Ohio.


LOCATION OVERVIEW

Ohio State UniversityFounded in 1870, Ohio State University is a public research university in Columbus, Ohio. The college originally focused on various agricultural and mechanical disciplines, but it developed into a comprehensive university under the direction of new legislation. With over 66,000 students enrolled, the main campus has since grown into the third-largest university campus in the United States. As Ohio’s best and one of the nation’s top-20 public universities, Ohio State is further recognized by a top-rated academic medical center and a premier cancer hospital and research center. As a land-grant university, Ohio State has a physical presence throughout the state, with campuses and research centers located around Ohio.

The Ohio State University Department of Athletics is one of the most visible, respected and accomplished programs in the nation. It ranks among the largest by two important measures – number of student-athletes (over 1,000) and number of sports (36). Remaining in the forefront of scholarship, innovation and intercollegiate competition requires an incredible commitment from a generous group of supporters.



DEMOGRAPHICS

POPULATION

2024 Projection

2019 Estimate

2010 Census

Growth ‘19 - ‘24

Growth ‘10 - ‘19

HOUSEHOLDS

2024 Projection

2019 Estimate

2010 Census

Growth ‘19 - ‘24

Growth ‘10 - ‘19

Average Income

Median Income

3-Mile

49,513

46,672

40,833

6.09%

14.30%

3-Mile

18,361

17,292

15,315

6.18%

12.91%

$54,298

$45,907

1-Mile

7,100

6,737

6,266

5.39%

7.52%

1-Mile

2,819

2,682

2,538

5.11%

5.67%

$47,908

$41,949

5-Mile

195,265

183,284

157,709

6.54%

16.22%

5-Mile

78,410

73,544

63,330

6.62%

16.13%

$62,015

$47,738

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The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc., and Brian Brockman (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto. The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or com-parable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITYThis Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASEThis Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENTBroker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

JAMES CAPITAL ADVISORS, INC.

DISCLAIMER

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FOR INQUIRIES

PLEASE CONTACT

Richard BrehautVice President, Net Lease

(424) [email protected] RE Lic. 01934760

Brian BrockmanBroker of Record

(513) [email protected] RE Lic #: BRKP.2009000214Bang Realty, IncCincinnati, OHCORP. Lic #: REC.2009002663

hardee’s - columbus, oh james capital advisors, inc....corporate guarantee from premier hardee’s...

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