manny’s original chophouse
TRANSCRIPT
884 W State Rd. 436 | Altamonte Springs, FL 32714
MANNY’S ORIGINAL CHOPHOUSE
OFFERING MEMORANDUM
Darren Alvino, IIAssociate(702) [email protected]: NV S.0171959
Jake WasserkrugAssociate(702) [email protected]: NV S.0185362
Madelyn RupprechtBrokerage Administrator(702) [email protected]
Tamir IsraeliMarketing Coordinator(702) [email protected]
Nick GrayDirector(702) [email protected]: NV 52192 | CA 01910898
Dana DavidsonOperations Manager(702) [email protected]
DEAL LEAD
Dustin R. AlvinoFirst Vice President Investments(702) [email protected]: NV BS.0143692
Ani Paulson Associate(843) [email protected]: SC 108539
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NOTABLE TRANSACTIONS
TABLE OF CONTENTS
05
06
07
08
09
10
11
18
19
21
INVESTMENTHIGHLIGHTS
TENANT SUMMARY
PROPERTYFACTS
FINANCIALANALYSIS
TENANTPROFILE
SURROUNDING RETAIL
PROPERTYPHOTOS
LOCATION OVERVIEW
MARKETOVERVIEW
DEMOGRAPHICS
05 INVESTMENT HIGHLIGHTS
INVESTMENT HIGHLIGHTS OFFERING SUMMARY
PROPERTY SPECS
PROPERTY Manny’s Original Chophouse
ADDRESS 884 W State Rd. 436Altamonte Springs, FL 32714
PARCEL NUMBER 16-21-29-513-000-0020
PRICE $3,538,000
NET OPERATING INCOME $230,000
CAP RATE 6.50%
PRICE PER SF $491.39
RENT PER SF $31.94 ($2.66/Month)
RENTABLE AREA 7,200
LAND 1.13 AC
YEAR BUILT/RENOVATED 1992 / 2018
PARKING 70 Spaces
PARKING RATIO 10 : 1,000
OWNERSHIP Fee Simple
• Absolute Triple-Net (NNN) Lease | Four Personal Guaranties from High Net Worth Individuals
• Outparcel to Target and The Home Depot
• Exposed to Over 100,000 VPD at Intersection of State Rd 434 & 436
• Manny’s Original Chophouse, an Entity Backed by American Chophouse Enterprises, LLC
• New 10 Year Lease Executed, Commenced February 2018 (Store Open Date)
• Ten Percent Rental Increase in Every Five Years
• Excellent Parking Ratio 10 : 1,000 SF
TENANT SUMMARY 06
TENANT TRADE NAME Manny’s Original Chophouse
OWNERSHIP American Chophouse Enterprises LLC
TENANT Manny’s Original Chophouse LLC
LEASE GUARANTEE 4-Units; 4 High Net worth Guarantees
LEASE TYPE Absolute Net
ROOF & STRUCTURE Tenant
LEASE TERM 10 Years
LEASE COMMENCEMENT DATE 8/16/2017
RENT COMMENCEMENT DATE 12/1/2018
LEASE EXPIRATION DATE 12/2/2028
TERM REMAINING ON LEASE +/- 9 Years
INCREASES 10% Every Five Years
OPTIONS Two; Five Years Each
TENANT SUMMARY
FINANCIAL ANALYSIS 08FINANCIAL ANALYSIS
NET OPERATING INCOME $230,000
DEBT SERVICE $174,777
NET CASH FLOW AFTER DEBT SERVICE 4.12% $55,223
PRINCIPLE REDUCTION $51,371
TOTAL RETURN 7.95% $106,594
LOAN AMOUNT $2,491,450
INTEREST RATE 5.0%
YEAR DUE 5 Years
AMORTIZATION 25 Years
PRICE $3,538,000
DOWN PAYMENT $1,341,550 (35%)
NUMBER OF SUITES 1
PRICE PER SQUARE FOOT $491.39
GROSS LEASABLE AREA (GLA) 7,200 SF
LOT SIZE 1.13 Acres
YEAR BUILT/RENOVATED 1992/2018
OCCUPANCY 100%
LEVERAGED RETURN ANALYSIS SUMMARY
FINANCING NICK GRAY | DIRECTOR1ST LOAN
Marcus & Millichap Capital Corp.Direct: (702) [email protected]
Licenses: NMLS 1152363NV License: 4096
07 PROPERTY FACTS
ACCESS
TRAFFIC COUNTS
IMPROVEMENTS
PARKING
YEAR BUILT
PARCEL
ZONING
(2) Two access points off of W State Rd 436 (1) One access point off of Laurel St. (2) Two access points off of SR 434.
W State Rd 436: +/- 58,000SR 434: +/- 42,000
There is roughly 7,200 square feet of building area.
There are 70 parking spaces on the subject parcel.
Parcel: 16-21-29-513-000-0020Acres: 1.13 Land: 49,222
1992 Construction / 2018 Remodel
MOC-1
Manny’s Original Chophouse is an upbeat, friendly, family-oriented steakhouse that reflects the image and highest standards of its larger-than-life founder, Manny Niko-laidis. The food is fresh and of the highest quality, cooked to order and to perfection, and never served in skimpy portions despite the reasonable prices.
And whether it is the food that is served or the people who are cooking and serving it, the customers and their satisfaction are always top priority. This simple formula explains the lines that form outside Manny’s door at opening time each day.
Following more than 40 years of experience in the restaurant business, Manny Niko-laidis opened the first Manny’s Original Chophouse in Haines City, Florida, in 2004. Between 2007 and 2013, Manny opened three more locations in the same part of the state. These additional locations and 10 years’ success of the concept set the stage for family offering franchises in 2014.
“This place has an attractive out-side with a 60’s theme running through it to include larger than life statues of the Blues Brothers and an old Checkered cab parked out front. But the best part, and why we went twice: EXCELLENT prime rib and steaks, an endless bowl of salad and fresh rolls”
-TripAdvisor
MANNY’S ORIGINAL CHOPHOUSE PROMISES YOU THE BEST STEAK IN TOWN, COOKED JUST RIGHT AND SERVED UP IN A FUN, FRIENDLY AND COURTEOUS ATMOSPHERE.
TENANT PROFILE09 SURROUNDING RETAIL 10
PROPERTY PHOTOS 12PROPERTY PHOTOS11
PROPERTY PHOTOS13 PROPERTY PHOTOS 14
PROPERTY PHOTOS 16PROPERTY PHOTOS15
884 W State Road 436, Altamonte Springs, FL 32714
PROPERTY PHOTOS17 LOCATION OVERVIEW 18
MARKET OVERVIEW 20
ALTAMONTE SPRINGS, FLORIDA
MARKET OVERVIEW19
POPULATION
In 2018, the population in your selected geography is 11,506. The population has changed by 13.07% since 2000. It is esti-mated that the population in your area will be 12,140.00 five years from now, which represents a change of 5.51% from the current year. The current population is 47.50% male and 52.50% female. The median age of the population in your area is 37.09, compare this to the US average which is 37.83. The population density in your area is 3,665.94 people per square mile.
HOUSEHOLDS
There are currently 4,586 households in your selected geogra-phy. The number of households has changed by 8.70% since
2000. It is estimated that the number of households in your area will be 4,843 five years from now, which represents a change of 5.60% from the current year. The average house-hold size in your area is 2.46 persons.
INCOME
In 2018, the median household income for your selected geography is $52,925, compare this to the US average which is currently $56,286. The median household income for your area has changed by 17.02% since 2000. It is estimated that the median household income in your area will be $56,916 five years from now, which represents a change of 7.54% from the current year. The current year per capita income in your area is $30,407, compare this to the US average, which is $30,982. The current
year average household income in your area is $75,730, com-pare this to the US average which is $81,217.
RACE AND ETHNICITY
The current year racial makeup of your selected area is as fol-lows: 70.92% White, 11.81% Black, 0.04% Native American and 5.22% Asian/Pacific Islander. Compare these to US averages which are: 70.42% White, 12.85% Black, 0.19% Native American and 5.53% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 32.12% of the current year population in your selected area. Compare this to the US aver-age of 17.88%.
HOUSING
The median housing value in your area was $208,034 in 2018, compare this to the US average of $193,953. In 2000, there were 1,907 owner occupied housing units in your area and there were 2,312 renter occupied housing units in your area. The median rent at the time was $660.
EMPLOYMENT
In 2018, there are 4,351 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 69.36% of employees are employed in white-col-lar occupations in this geography, and 31.23% are employed in blue-collar occupations. In 2018, unemployment in this area is 4.37%. In 2000, the average time traveled to work was 27.00 minutes.
DEMOGRAPHICS 22DEMOGRAPHICS21
ORLANDOOVERVIEW
A warm climate and a favorable tax structure attract visitors, employersand residents to the region. The metro is among the largest and fastestgrowing in Florida, with a population of more than 2.4 million residentsIt is also one of the nation’s most popular tourist destinations withroughly 67 million visitors annually. The Orlando metro encompassesfour counties: Osceola, Orange, Seminole and Lake, covering morethan 4,000 square miles in central Florida. There are numerous lakesscattered across the region and the topography is generally flat withfew impediments to development. Orlando is the area’s largest city,approaching 275,000 residents, followed by Kissimmee and Sanford,each with less than 100,000 residents.
METRO HIGHLIGHTS
ECONOMIC DIVERSITYWhile Orlando’s economy has strong business and professional services as well as tourism components, distribution, high-tech, defense contracting and healthcare also are prevalent.
PRO-BUSINESS ENVIRONMENTFlorida has low state and local taxes in addition to no state personal income tax, attracting businesses to the region.
JOB AND POPULATION GROWTHOrlando’s population is expected to increase by 242,200 people over the next five years, as job gains outpace the national average.
ECONOMY§ Key industries in the region include aerospace and defense systems, modeling, simulation
and training, digital media tourism and biotechnology.§ The metro is transforming into a digital media hub, housing hundreds of media companies.§ Orlando is a top vacation and business convention destination and is home to theme parks
and tourist attractions, which support retail sales and a large hospitality sector.§ The local life sciences, biotech and medical technology industries are growing. Lake Nona
Medical City is a 650-acre health and life sciences park located in the metro.
SHARE OF 2017 TOTAL EMPLOYMENT
MAJOR AREA EMPLOYERS
Walt Disney World Co.
Florida Hospital
Publix Super Markets Inc.
Universal Orlando
Orlando Health
Busch Entertainment Corp.
Lockheed Martin Corp.
Marriott International
Darden Restaurants Inc.
Starwood Hotels & Resorts Worldwide Inc.* Forecast
MANUFACTURING4%
GOVERNMENT
HEALTH SERVICESEDUCATION AND
+OTHER SERVICES
4%
LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES
19%AND UTILITIES
TRADE, TRANSPORTATION CONSTRUCTION
PROFESSIONAL ANDBUSINESS SERVICES
2%INFORMATION
17%
6%
10% 21% 6%
12%
DEMOGRAPHICS 24
DEMOGRAPHICS
SPORTS
EDUCATION
ARTS & ENTERTAINMENT
§ The metro is expected to add nearly 242,200 people over the next five years and during this period roughly 103,000 households will be formed.
§ A median age below the U.S. median contributes to a homeownership rate of 62 percent, which is slightly below the national rate.
§ Millennials, those in the cohort of 20- to 34-year olds, comprise 22 percent of the population, slightly above the U.S. level of 20 percent.
Orlando residents enjoy a remarkable quality of life, highlighted by a sunny climate,professional sports teams, outdoor recreational activities, cultural venues, world-famousattractions and beaches nearby. The region offers healthcare facilities and exceptionalcommunity services such as Orlando Health and Florida Hospital. Cultural opportunitiesare offered at the Dr. Phillips Center for the Performing Arts, Civic Theatre of CentralFlorida, the Orlando Opera Company, the Orlando Ballet Company and the BachFestival Society. Amway Center in downtown is the Orlando Magic’s arena. Largeeducational institutions in the area include the University of Central Florida and ValenciaCommunity College.
QUALITY OF LIFE
2017 Population by Age
0-4 YEARS
6%5-19 YEARS
19%20-24 YEARS
7%25-44 YEARS
29%45-64 YEARS
25%65+ YEARS
14%
* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
372017
MEDIAN AGE:
U.S. Median:
37.8
$50,500 2017 MEDIAN
HOUSEHOLD INCOME:
U.S. Median:
$56,300
2.4M2017
POPULATION:
Growth2017-2022*:
9.9%
905K2017
HOUSEHOLDS:
11.4%Growth
2017-2022*:
POPULATION 1 Miles 3 Miles 5 Miles§ 2022 Projection
Total Population 12,140 103,406 214,918§ 2017 Estimate
Total Population 11,506 99,574 209,421§ 2010 Census
Total Population 10,845 93,662 194,105§ 2000 Census
Total Population 10,176 90,460 190,700§ Current Daytime Population
2017 Estimate 11,717 98,367 214,443HOUSEHOLDS 1 Miles 3 Miles 5 Miles§ 2022 Projection
Total Households 4,843 42,156 85,245§ 2017 Estimate
Total Households 4,586 40,043 81,703Average (Mean) Household Size 2.46 2.47 2.52
§ 2010 CensusTotal Households 4,360 38,012 76,511
§ 2000 CensusTotal Households 4,219 36,066 73,811
§ Occupied Units2022 Projection 4,843 42,156 85,2452017 Estimate 5,128 43,344 88,087
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles§ 2017 Estimate
$150,000 or More 8.31% 8.76% 7.60%$100,000 - $149,000 11.18% 11.99% 11.22%$75,000 - $99,999 10.98% 13.22% 12.37%$50,000 - $74,999 23.02% 22.13% 20.80%$35,000 - $49,999 17.81% 16.23% 15.66%Under $35,000 28.70% 27.66% 32.35%
Average Household Income $75,730 $76,865 $72,169Median Household Income $52,925 $56,214 $52,092Per Capita Income $30,407 $30,976 $28,270
HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure $59,222 $63,451 $61,372§ Consumer Expenditure Top 10 Categories
Housing $15,936 $16,755 $16,171Transportation $11,843 $12,527 $12,072Shelter $9,392 $9,762 $9,397Food $6,207 $6,443 $6,195Personal Insurance and Pensions $4,820 $5,263 $4,995Health Care $3,690 $4,181 $4,060Utilities $3,402 $3,563 $3,471Entertainment $2,928 $3,375 $3,250Apparel $1,816 $1,889 $1,758Household Furnishings and Equipment $1,463 $1,606 $1,538
POPULATION PROFILE 1 Miles 3 Miles 5 Miles§ Population By Age
2017 Estimate Total Population 11,506 99,574 209,421Under 20 22.96% 23.02% 24.01%20 to 34 Years 23.95% 22.37% 21.33%35 to 39 Years 7.23% 7.03% 6.77%40 to 49 Years 14.67% 13.52% 13.51%50 to 64 Years 18.71% 19.85% 19.91%Age 65+ 12.48% 14.19% 14.46%Median Age 37.09 38.23 38.41
§ Population 25+ by Education Level2017 Estimate Population Age 25+ 8,084 70,635 146,484Elementary (0-8) 1.21% 1.63% 2.11%Some High School (9-11) 4.21% 4.56% 6.40%High School Graduate (12) 24.85% 23.25% 25.80%Some College (13-15) 22.83% 21.83% 21.35%Associate Degree Only 10.59% 12.20% 11.52%Bachelors Degree Only 24.51% 24.23% 21.24%Graduate Degree 10.64% 11.29% 10.31%
DEMOGRAPHICS23
CONFIDENTIALITY AND DISCLAIMERThe 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 consent of 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 the information set forth herein. ZAA0450160
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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.
PRESENTED BYDustin R. Alvino First Vice President Investments 702-215-7120 [email protected] License: NV BS.0143692
Ani Paulson Associate(843) [email protected]: SC 108539
Ryan Nee Broker of Record 954-245-3400 [email protected] License: BK3154667
PRESENTED BYDustin R. Alvino First Vice President Investments 702-215-7120 [email protected] License: NV BS.0143692
Ani Paulson Associate (843) 952-2268 [email protected] License: SC 108539
PRESENTED BY
Ryan Nee Broker of RecordMarcus & Millichap Real Estate Investment Services of Florida, Inc. 954-245-3400 [email protected] License: BK3154667