new 20-year lease...new 20-year lease. burge king - lexington, ky | mas milliha tiity 0100087 ......

O F F E R I N G M E M O R A N D U M 3348 Clays Mill RoadLexington, KY 40503

burger king New 20-Year Lease

Burger King - Lexington, KY | Marcus Millichap | Activity ID: ZAA0100087

Confidentiality Agreement The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any oth-er person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical 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, PCBs or asbestos, the compliance with local, 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 offering memorandum 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

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

Peter DeltondoSenior Vice President InvestmentsDirector, Net Leased Retail Group

(949) 419-3267 direct [email protected] License: CA 01797033

Ron Duong Senior Vice President Investments Senior Director, National Retail Group (949) 419-3233 direct [email protected] License: CA 01438643

Exclusively Listed By

Craig Elster Net Leased Properties Group (949) 419-3328 direct [email protected] License: CA 01958307

Broker of Record

Colby Haugness Principal BrokerLouisville, KYLicense: 242197


Pride of Ownership Property in Lexington, KY• Highly Populated Area with Over 197,000 Residents within 5 Miles

• Very Affluent Area with an Average Household Income Over $79,000

• Lexington is the #2 Highest Populated City in Kentucky

• Ranked the #11 Highest Educated City in the Country

Outstanding Real Estate Fundamentals

• Located just 4 Minutes South of the University of Kentucky with Over 30,000 Students Enrolled

• Located on the Corner of a Four Way Signalized Intersection

• Located in close proximity to Fayette Mall, Meijer, Target, Walmart Supercenter, Lowe’s, Whole Foods Market, Starbucks, and Many More

Executive Summary

Actual Site

Actual Site

Actual Site

Newer Construction Built in 2015

Lexington is the 2nd Highest Populated City in Kentucky

Absolute NNN Lease with Zero Landlord Responsibilities Ideal for Investors Not Local to the Market

Multi-Unit Franchisee Burger KingBrand New 20 Year Lease Signed at the Close of Escrow


Tenant Overview

Actual Site

Burger King Corporate

• #2 Fast Food Hamburger Chain Globally

• More than $16 Billion in Annual System-Wide Sales and Nearly 350,000 Team Members, Worldwide. The Concept has a Market Capitalization of Roughly $10 Billion

• Global Brand Presence | Fully – Franchised Business Model

• Nearly 14,000 Restaurants in 100+ Countries. QSR Industry-Leading EBITDA Margins

• Rich Heritage | Stable, Reliable Long-Term Ownership

• Founded in 1954 with Deep Ties to the Miami Community. Burger King has Been Actively Managed by 3G Since 2010

Every day, more than 11 million guests visit BURGER KING® restaurants around the world, making it the second largest fast food hamburger chain in the world. Founded in 1954, The original HOME OF THE WHOPPER®, Burger King is commented to premium ingredients, signature recipes, and family-friendly dining experiences and that is what has defines their brand for more than 50 successful years.

In October 2010, 3G Capital completed the acquisition of Burger King®. 3G Capital is a global investment firm focused on long-term value, with a particular emphasis on maximizing the potential of brands and businesses. The firm and its partners have a strong history of operational excellence, board involvement, deep sector expertise, and an extensive global network.

Restaurant Brands International owns two of the world’s most prominent and iconic quick service restaurant brands – Tim Hortons® and Burger King®. These independently operated brands have been serving their respective guests, franchisees, and communities for over 50 years. Restaurant Brands International is one of the world’s largest quick service restaurant companies with approximately $23 billion in system sales and over 18,000 restaurants in 100 countries.

Franchisee – BMT of Kentucky, Inc.

• 15 Unit Operator/Guaranty

• New 20 Year Absolute Net Leases (Zero Landlord Responsibilities)

• Great Hedge Against Inflation - 10% Increases Every 5 Years

• Conservative Rent-to-Sales Ratio of 8.5%


Offering SummaryProperty Address 3348 Clays Mill Road

Lexington, KY 40503

Assessor’s Parcel Number 27281239

Current Occupancy Fully Occupied

Year Built 2015

Gross Leasable Area (GLA) ±3,096 Square Feet

Lot Size .60 Acres (±57,543Square Feet)

Price $1,683,053

Cap Rate 5.75%

Pricing

Financial Analysis

Actual Site

Close of Escrow - Year 5 $96,775.56

Years 6-10 $106,453.12

Years 11-15 $117,098.43

Years 16-20 $128,808.27

Years 21-25 (Option 1) $141,689.10

Years 26-30 (Option 2) $155,858.01

Years 31-35 (Option 3) $171,443.81

Years 36-40 (Option 4) $188,588.19

Annualized Operating Data

Lease TermsLease Term 20 Years

Lease Commencement Date 20 Years After COE

Increases 10% Every Five (5) Years

Options Four, Five-Year

Burger King - Lexington, KY | Marcus Millichap | Activity ID: ZAA010008715,000+

Clays Mills Road VPD6.2 Miles

To Blue Grass Airport321,950+

Population of Lexington4 Miles

To Downtown Lexington

Regional Map

Property Description

4 Miles To Downtown

Subject Property

15 MINUTES To Blue Grass

Airport

77 MILES To Louisville

Toyota Manufacturing10,000 employees

7,000,000 SF

4 Miles University of Kentucky


Property DescriptionAerial Photo

Clays

Mill

Roa

d

15,0

00 V

PD

Keithshire Way

Subject Property

Thai StreetMad Mushroom Pizza

Baseball Card WarehouseEye of the NeedleTrue Blue Pools

Marathon GasTop Notch Salon

1st Stop Auto Care CentersUncle 7s Bourbon

Bar and Grill

Jessie M ClarkMiddle School1,009 Students

DowntownLexington


Property DescriptionAerial Photo

Clays Mill Road

15,000 Vehicles Per Day

Keithshire

Way

Subject Property

Marathon GasTop Notch Salon

1st Stop Auto Care CentersUncle 7s Bourbon

Bar and Grill

Thai StreetMad Mushroom Pizza

Baseball Card WarehouseEye of the NeedleTrue Blue Pools

SubwayParent Teacher Store

The Gift BoxDancer’s Studio

Sagar India MarketGraham Flooring & Cabinets

Quilters SquareFayette County Drivers License


Location Overview

The City Of Lexington, Kentucky

Lexington, consolidated with Fayette County and often denoted as Lexington-Fayette, is the second-largest city in Kentucky and the 60th-largest city in the United States. Known as the “Horse Capital of the World,” it is the heart of the state’s Bluegrass region.

Lexington has one of the nation’s most stable economies. Lexington de-scribes itself as having “a fortified economy, strong in manufacturing, technology, and entrepreneurial support, benefiting from a diverse, balanced business base”. The Lexington Metro Area had an unemployment rate of 3.7% in August 2015, lower than many cities of similar size. In 2011 Lexing-ton was ranked as the 4th-best city for “Businesses and Careers” by Forbes magazine, the 5th-best city for Young Professionals in 2008, and 6th-Best “Value Cities” in 2011 by Kiplinger.

Lexington is home to many thriving arts organizations, including a profes-sional orchestra, two ballet companies, a professional theatre, several mu-seums, several choral organizations, and a highly respected opera program at the University of Kentucky. In addition, several annual events and fairs draw people as attendees from throughout the Bluegrass region.

Local Attractions:

• University of Kentucky

o Home of the Kentucky Wildcats and 22,425 undergraduates.

• Aviation Museum of Kentucky

o 20,000 square feet display area at Blue Grass Airport, Lexington.

• Lexington Opera House

o Celebrity portrait gallery built in 1886

Market Overview

University of Kentucky

Lexington Opera House

Aviation Museum


POPULATION 1-MILE 3-MILES 5-MILES

2023 Population 10,050 96,602 205,362

2018 Population 9,695 91,745 197,344

2010 Population 9,410 85,590 184,264

2000 Population 8,845 78,518 172,310

HOUSEHOLDS 1-MILE 3-MILES 5-MILES

2023 Households 4,090 41,743 87,503

2018 Households 3,919 39,405 83,397

2010 Households 3,784 36,665 77,839

2000 Households 3,413 33,163 72,490

2018 Average HH Size 2.4 2.3 2.2

2018 Daytime Population 16,430 98,057 253,419

2023 Owner Occupied Housing Units 79.1% 63.7% 52.5%

2023 Renter Occupied Housing Units 21.0% 36.3% 47.5%

2023 Vacant 1.2% 4.5% 5.7%



2018 Vacant 1.2% 4.5% 5.8%



2010 Vacant 3.8% 7.3% 8.7%

INCOME 1-MILE 3-MILES 5-MILES

$ 0 - $ 14,999 4.9% 9.5% 14.7%

$ 15,000 - $24,999 6.7% 8.7% 10.5%

$ 25,000 - $34,999 6.6% 9.1% 9.7%

$ 35,000 - $49,999 11.5% 13.0% 12.2%

$ 50,000 - $74,999 25.4% 18.8% 17.2%

$ 75,000 - $99,999 15.1% 14.1% 11.9%

$100,000 - $124,999 13.9% 9.4% 7.9%

$125,000 - $149,999 6.5% 6.1% 5.3%

$150,000 - $200,000 5.2% 5.8% 5.0%

$200,000 to $249,999 1.7% 2.2% 2.3%

$250,000 + 2.6% 3.4% 3.3%

Median HH Income $70,310 $63,051 $54,050

Per Capita Income $36,026 $37,147 $34,149

Average HH Income $89,116 $86,384 $79,704

Demographic Summary

Market Overview

$79,704 2018 average household income

Listed by Exclusively

O F F E R I N G M E M O R A N D U M 3348 Clays Mill Road

Lexington, Kentucky 40503

burger king New 20-Year Lease

Peter DeltondoSenior Vice President InvestmentsDirector, Net Leased Retail Group(949) 419-3267 [email protected] License: CA 01797033

Ron Duong Senior Vice President Investments Senior Director, National Retail Group (949) 419-3233 direct [email protected] License: CA 01438643

Craig Elster Net Leased Properties Group (949) 419-3328 direct [email protected] License: CA 01958307

Broker of Record

Colby Haugness Principal BrokerLouisville Kentucky License: 242197

new 20-year lease...new 20-year lease. burge king - lexington, ky | mas milliha tiity 0100087 ......

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