exclusive offering€¦ · headquartered in richmond, virginia, united restaurant group, lp, is a...

EXCLUSIVE OFFERING | $6,914,000 – 5.25% CAP

TGI FRIDAY’S

650 South College ave, Newark, de

214.915.8890

RUSSELL SMITH

[email protected]

MARK WHEELER

[email protected]

BOB MOORHEAD

[email protected]

Property. 6,800+ SF building on 2.34+ acre site.

Tenant. United Restaurant Group, LP, currently operate 28 restaurants. TGI Friday’s: 900+ locations in 60 countries. System-wide Sales: $2.7 billion (FY ’13).

Lease structure. Absolute NNN Lease. 20-year initial term with (4), 5-year option periods and 10% rent increases every 5-years during initial term & options.

Location. TGI Friday’s is located along South College Ave. (24,000 Cars / Day). South College Ave. is a north-south arterial road that runs through the middle of

The University of Delaware's campus and connects the subject property with downtown Newark. This accessibility has drawn substantial commercial development

to the area. Also, TGI Friday’s is attached to Embassy Suites – Newark (525 Guests), providing guests direct access for lunch and dinner everyday. The

combination of being located south of Campus and being attached to Embassy Suites provides significant attraction.

SUBJECT PROPERTY

Trivanta (“Agent”) has been engaged as an agent for the sale of the property located at 650

South College Ave, Newark, DE by the owner of the Property (“Seller”). The Property is

being offered for sale in an “as-is, where-is” condition and Seller and Agent make no

representations or warranties as to the accuracy of the information contained in this

Offering Memorandum. The enclosed materials include highly confidential information and

are being furnished solely for the purpose of review by prospective purchasers of the

interest described herein. The enclosed materials are being provided solely to facilitate the

prospective investor’s own due diligence for which it shall be fully and solely responsible.

The material contained herein is based on information and sources deemed to be reliable,

but no representation or warranty, express or implied, is being made by Agent or Seller or

any of their respective representatives, affiliates, officers, employees, shareholders,

partners and directors, as to the accuracy or completeness of the information contained

herein. Summaries contained herein of any legal or other documents are not intended to be

comprehensive statements of the terms of such documents, but rather only outlines of

some of the principal provisions contained therein. Neither the Agent nor the Seller shall

have any liability whatsoever for the accuracy or completeness of the information contained

herein or any other written or oral communication or information transmitted or made

available or any action taken or decision made by the recipient with respect to the Property.

Interested parties are to make their own investigations, projections and conclusions without

reliance upon the material contained herein. Seller reserves the right, at its sole and

absolute discretion, to withdraw the Property from being marketed for sale at any time and

for any reason. Seller and Agent each expressly reserves the right, at their sole and

absolute discretion, to reject any and all expressions of interest or offers regarding the

Property and/or to terminate discussions with any entity at any time, with or without notice.

This offering is made subject to omissions, correction of errors, change of price or other

terms, prior sale or withdrawal from the market without notice. Agent is not authorized to

make any representations or agreements on behalf of Seller. Seller shall have no legal

commitment or obligation to any interested party reviewing the enclosed materials,

performing additional investigation and/or making an offer to purchase the Property unless

and until a binding written agreement for the purchase of the Property has been fully

executed, delivered, and approved by Seller and any conditions to Seller’s obligations

hereunder have been satisfied or waived. By taking possession of and reviewing the

information contained herein, the recipient agrees that (a) the enclosed materials and their

contents are of a highly confidential nature and will be held and treated in the strictest

confidence and shall be returned to Agent or Seller promptly upon request; and (b) the

recipient shall not contact employees or tenants of the Property directly or indirectly

regarding any aspect of the enclosed materials or the Property without the prior written

approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied

or otherwise reproduced without the prior written authorization of Seller and Agent.

PAGE 3: INVESTMENT | TENANT | LEASE OVERVIEW

PAGE 1: COVER

PAGE 2: TABLE OF CONTENTS | DISCLAIMER

PAGE 10: DEMOGRAPHICS

Table of contents | Disclaimer TGI FRIDAY’S


PAGE 4-5: AERIAL PHOTO

PAGE 7: LOCATION OVERVIEW

PAGE 8-9: LOCATION MAPS

Disclaimer

2

LISTED IN ASSOCIATION WITH DELAWARE BROKER OF RECORD:XXXXXXX | XXXXXXXX

SUBJECT PROPERTY

PAGE 6: PROPERTY PHOTOS

http://www.bsro.jobs/about_bsro

Investment overviewTGI FRIDAY’S


PRICE: $6,914,000

CAP RATE: 5.25%

NET OPERATING INCOME: $362,944

BUILDING AREA: 6,800+ Square Feet

LAND AREA: 2.34+ Acres

YEAR BUILT: 1999

LANDLORD RESPONSIBILITY: None

OCCUPANCY: 100%

SUBJECT PROPERTY PRIOR TO PANDA EXPRESS EXPANSION

UNITED RESTAURAMT GROUP | www.urglp.com

Headquartered in Richmond, Virginia, United Restaurant Group, LP, is a multi-unit franchisee of TGI Fridays℠. Starting with just two restaurants in 1993, the

company has grown into a group of 28 restaurants in four different states—Virginia, Delaware, North Carolina and South Carolina—with plans for continued

growth. URG has received the TGI Fridays “Franchisee of the Year” in 2003, 2004, and 2005. The company has also received “Best Director of Operations for All

Franchisees”, “Best Franchise Sales Growth”, and “Best Franchise Profitability”.

TGI FRIDAY’S | www.tgifridays.com

TGI Friday’s Inc., aka “Fridays,” is arguably the most recognized chain in the casual dining sector in North America. Fridays, headquartered in Carrollton, Texas, is

a global leader in the $85 billion casual dining segment of the restaurant industry, with an iconic, globally recognized, 49-year-old brand and a heritage as the

original American bar and grill. The Fridays system comprises more than 900 restaurants in 60 countries, including more than 500 restaurants in the U.S. Fridays

boasts the largest international presence of any U.S. casual dining chain, and customers around the world equate the highly recognizable brand with classic

American fare and expert service. The Fridays system generates more than $2.6 billion in system-wide sales.

Fridays differentiates itself from other casual dining restaurants through its unique positioning as a “casual dining bar.” The bar-centric concept—to which the

social experience of customers is as central as the restaurants’ high-quality food and drinks—is embodied in Fridays’ name and motto: “In Here It’s Always Friday.”

Fridays is known for inventing the “happy hour” and introducing Long Island iced tea, potato skins, and Jack Daniels-branded food items to American casual

dining.

SENTINEL CAPITAL PARTNERS | www.sentinelpartners.com

Sentinel is one of the nation's leading lower middle market private equity firms. Sentinel invests in management buyouts, acquisitions of family businesses,

corporate divestitures, industry consolidations, and going-private transactions in the United States and Canada. They also invest in special situations, including

balance sheet restructurings and operational turnarounds. We forge partnerships with talented management teams who want to be owners of the companies they

operate. Based in New York City, Sentinel has approximately $2.6 billion of capital under management.

Tenant overviewUnited Restaurant Group, L.P.

3

Lease overview

Projected Lease Expiration: July 2036

Projected Rent Commencement: July 2016

Current Lease Term: 20-Yrs, (4) 5-Year Option to Renew

Rent Increases: 10% Every 5 Years In Primary Term & Options

Lease Type: Absolute NNN

Annual Rent Years 1-5: $362,944




(Option 1 | Years 21-25): $531,386

(Option 2 | Years 26-30): $584,524

(Option 3 | Years 31-35): $642,977

(Option 4 | Years 36-40): $707,275

Right of First Refusal: Yes

Aerial photoTGI FRIDAY’S


4

University of Delaware

Science and Technology

(22,680 Students) University of

Delaware Stadium

Christina Pkwy (25,000 Cars / Day)

Aerial photoTGI FRIDAY’S


5

University of

Delaware Stadium

University of Delaware

Science and Technology

(22,680 Students)

PROPERTY PHOTOSTGI FRIDAY’S


6

Location overviewTGI FRIDAY’S


IMMEDIATE TRADE AREA

TGI Friday’s is located along South College Ave. (24,000 Cars / Day). South

College Ave. is a north-south arterial road that runs through the middle of The

University of Delaware's campus and connects the subject property with

downtown Newark. This accessibility has drawn substantial commercial

development to the area.

Also, TGIF Friday’s is attached to Embassy Suites – Newark (525 Guests),

providing guests direct access for lunch and dinner everyday. The combination

of being located south of Campus and being attached to Embassy Suites

provides significant attraction.

NEWARK, DE

Newark is located in the northern edge of Delaware and is part of the

Philadelphia-Camden-Wilmington, Metropolitan Statistical Area (MSA. Adjacent

to I-95, Greater Newark positioned in the heart of the 35 million people of the

New York-Philadelphia-DC megalopolis, including Wilmington (25 min),

Philadelphia (45 min), Baltimore (1 hr), New York City and Washington, D.C. (2

hrs). Amtrak and SEPTA (Southeastern Pennsylvania Transportation Authority)

run trains to directly to Newark, providing easy access to commuters. Newark

also has convenient access to air transportation with Philadelphia International

Airport 40 minutes away,

The Greater Newark area features many notable companies that are leaders in

their industries, including W.L Gore, DuPont, Dow, Siemens, Air Liquide, FMC

Corp, Barclayyard, Christiana Care Health Systems, AstraZeneca, Delasoft

Inc., Hallmark Global Technologies Inc. Greater Newark has a concentration of

innovative companies in technology, energy, life sciences, healthcare and

financial services. Oftentimes, these industries are augmented with

specializations of the University of Delaware, such as advanced materials,

chemistry and computer science.

The University of Delaware (22,680 Students) is the flagship of higher

education in Delaware and is ranked in the top 100 national universities by U.S.

News and World Report. The Carnegie Foundation for the Advancement of

Teaching classifies UD as a research university with very high research activity

– a designation accorded to less than 3 percent of U.S. colleges and

universities.

The Newark area is home to the largest health care provider in the State of

Delaware, Christiana Care. Within minutes of Greater Newark is the Nemours/

Alfred I. duPont Hospital for Children. Residents of Greater Newark benefit from

proximity to major teaching institutions in Philadelphia and Baltimore such as JohnsHopkins, the University of Pennsylvania and Thomas Jefferson University Hospitals.

PHILADELPHIA-CAMDEN-WILMINGTON, MSA

The Philadelphia MSA encompasses 11 counties in four states and covers nearly

5,000 square miles. The Delaware River bisects the metropolis from northeast to

southwest and serves as the border between Pennsylvania and New Jersey. The

Schuylkill River passes through the heart of Philadelphia, separating West

Philadelphia from Center City. With the city bounded by rivers, development activity

occurs mostly in the surrounding areas.

The Philadelphia-Camden-Wilmington MSA contains nearly 6 million residents and

spans Philadelphia, Delaware, Bucks, Chester and Montgomery counties in

Pennsylvania; Gloucester, Burlington, Camden and Salem counties in New Jersey;

New Castle County in Delaware; and Cecil County in Maryland. Although the MSA

has over 360 municipalities, only a few have populations greater than 25,000.

Philadelphians have access to a wide variety of transportation methods. Interstate

95 connects Philadelphia to both New York City and Washington, D.C. Interstate 76

links the city to Pittsburgh and Cleveland and also serves as the primary commuting

artery between Center City and the northwestern suburbs. Interstates 276, 476, 495

and 295 form a beltway around the MSA. Philadelphia International Airport recently

received FAA approval for a $5.2 billion expansion to extend two runways, add a

fifth runway, and overhaul it’s congested layout.

Philadelphia's GMP, retail sales, and employment have all rebounded since the

recession. Robust job growth of 2.1 percent annually is projected through 2016.

GMP growth is expected to average more than 2 percent annually over the next two

years. Philadelphia is home to 13 Fortune 500 companies that operate across a

broad spectrum of industries, including finance, petroleum, communications and

packaging materials. The local economy is also increasingly supported by high-

growth sectors. The region is now an important pharmaceutical hub, and its rapidly

expanding biotechnology segment will drive much of Philadelphia’s economic

growth over the next 10 years. Philadelphia is the home of the Federal Reserve’s

third district, which, along with the U.S. Mint, the Philadelphia Stock Exchange and

companies such as Lincoln Financial Group, helps shape a formidable financial

sector.

7

Location mapTGI FRIDAY’S


8

Location mapTGI FRIDAY’S


9

2015 Est. Labor Population Age 16 Years or Over 4,145 57,855 124,942

2015 Est. Civilian Employed 61.6% 57.6% 61.9%

2015 Est. Civilian Unemployed 2.2% 3.1% 3.6%

2015 Est. in Armed Forces - 0.2% 0.2%

2015 Est. not in Labor Force 36.2% 39.1% 34.3%

2015 Labor Force Males 49.5% 47.1% 47.4%

2015 Labor Force Females 50.5% 52.9% 52.6%

2010 Occupation: Population Age 16 Years or Over 2,584 32,470 76,535

2010 Mgmt, Business, & Financial Operations 15.7% 14.7% 15.0%

2010 Professional, Related 28.5% 27.0% 24.8%

2010 Service 16.6% 17.5% 17.4%

2010 Sales, Office 25.0% 25.4% 24.9%

2010 Farming, Fishing, Forestry 0.1% 0.2% 0.2%

2010 Construction, Extraction, Maintenance 5.7% 6.9% 8.1%

2010 Production, Transport, Material Moving 8.4% 8.3% 9.6%

2010 White Collar Workers 69.2% 67.1% 64.7%

2010 Blue Collar Workers 30.8% 32.9% 35.3%

2010 Drive to Work Alone 73.1% 75.5% 78.3%

2010 Drive to Work in Carpool 12.7% 10.3% 10.9%

2010 Travel to Work by Public Transportation 3.3% 2.6% 2.8%

2010 Drive to Work on Motorcycle 0.2% - 0.1%

2010 Walk or Bicycle to Work 6.3% 7.5% 3.8%

2010 Other Means 0.2% 0.5% 0.4%

2010 Work at Home 4.3% 3.6% 3.7%

2010 Travel to Work in 14 Minutes or Less 33.3% 30.1% 24.5%

2010 Travel to Work in 15 to 29 Minutes 43.7% 42.9% 44.1%

2010 Travel to Work in 30 to 59 Minutes 18.8% 21.9% 24.4%

2010 Travel to Work in 60 Minutes or More 4.2% 5.1% 7.0%

2010 Average Travel Time to Work 18.4 19.6 21.0

2015 Est. Total Household Expenditure $114 M $1.40 B $3.40 B

2015 Est. Apparel $3.98 M $48.9 M $119 M

2015 Est. Contributions, Gifts $7.67 M $95.5 M $232 M

2015 Est. Education, Reading $4.42 M $55.7 M $135 M

2015 Est. Entertainment $6.38 M $78.3 M $191 M

2015 Est. Food, Beverages, Tobacco $17.5 M $214 M $518 M

2015 Est. Furnishings, Equipment $3.90 M $48.1 M $118 M

2015 Est. Health Care, Insurance $10.1 M $121 M $294 M

2015 Est. Household Operations, Shelter, Utilities $35.4 M $433 M $1.05 B

2015 Est. Miscellaneous Expenses $1.69 M $20.6 M $50.0 M

2015 Est. Personal Care $1.48 M $18.1 M $44.1 M

2015 Est. Transportation $21.7 M $265 M $647 M

LA

BO

R F

OR

CE

OC

CU

PA

TIO

NT

RA

NS

PO

RT

AT

ION

TO

WO

RK

TR

AV

EL

TIM

EC

ON

SU

ME

R E

XP

EN

DIT

UR

E

650 S College Ave1 mi radius 3 mi radius 5 mi radius

Newark, DE 19713-1315

2015 Estimated Population 4,860 68,691 153,516

2020 Projected Population 4,928 70,040 156,783

2010 Census Population 4,864 67,565 151,356

2000 Census Population 4,722 62,720 140,337

Projected Annual Growth 2015 to 2020 0.3% 0.4% 0.4%

Historical Annual Growth 2000 to 2015 0.2% 0.6% 0.6%

2015 Estimated Households 2,017 24,284 57,126

2020 Projected Households 2,082 25,227 59,370

2010 Census Households 1,970 23,370 54,809

2000 Census Households 1,853 21,387 50,300

Projected Annual Growth 2015 to 2020 0.6% 0.8% 0.8%

Historical Annual Growth 2000 to 2015 0.6% 0.9% 0.9%

2015 Est. Population Under 10 Years 9.6% 10.0% 11.8%

2015 Est. Population 10 to 19 Years 10.4% 17.5% 14.9%





2015 Est. Population 75 Years or Over 6.8% 4.8% 4.2%

2015 Est. Median Age 36.3 32.2 33.7

2015 Est. Male Population 49.5% 47.6% 48.1%

2015 Est. Female Population 50.5% 52.4% 51.9%

2015 Est. Never Married 40.0% 49.2% 40.8%

2015 Est. Now Married 39.9% 34.6% 40.7%

2015 Est. Separated or Divorced 15.0% 12.1% 14.0%

2015 Est. Widowed 5.1% 4.1% 4.6%

2015 Est. HH Income $200,000 or More 4.0% 4.2% 3.9%

2015 Est. HH Income $150,000 to $199,999 5.3% 6.4% 6.7%

2015 Est. HH Income $100,000 to $149,999 15.7% 15.9% 17.5%

2015 Est. HH Income $75,000 to $99,999 11.8% 11.6% 13.6%

2015 Est. HH Income $50,000 to $74,999 17.4% 18.2% 19.2%

2015 Est. HH Income $35,000 to $49,999 15.1% 14.1% 13.7%

2015 Est. HH Income $25,000 to $34,999 9.4% 9.3% 8.7%

2015 Est. HH Income $15,000 to $24,999 8.8% 7.6% 7.1%

2015 Est. HH Income Under $15,000 12.5% 12.8% 9.6%

2015 Est. Average Household Income $72,937 $75,341 $78,677

2015 Est. Median Household Income $55,789 $61,720 $67,305

2015 Est. Per Capita Income $30,317 $26,987 $29,457

2015 Est. Total Businesses 256 2,648 5,581

2015 Est. Total Employees 4,207 36,097 78,000

PO

PU

LA

TIO

NH

OU

SE

HO

LD

SA

GE

MA

RIT

AL

ST

AT

US

& G

EN

DE

RIN

CO

ME

650 S College Ave1 mi radius 3 mi radius 5 mi radius

Newark, DE 19713-1315

DemographicsTGI FRIDAY’S


10

exclusive offering€¦ · headquartered in richmond, virginia, united restaurant group, lp, is a...

Documents