freddy’s

John Andreinijandreini@capitalpacific.com | (415) 274-2715 CA BRE# 01440360

rick SAnnerrsanner@capitalpacific.com | (415) 274-2709 CA BRE# 01792433

BoB SAnnerbsanner@capitalpacific.com | (415) 274-2717 CA BRE# 00869657

For more info on this opportunity please contact:

Capital Pacific collaborates. Click here to meet the rest of our San Francisco team.

absolute nnn sale/leaseback3811 clear creek rd, killeen, TX 76549

In Conjunction With TX Licensed Broker: Steve Sielingsteve@azurcc.com | (214) 888-8262

chriS koSTAneckick@capitalpacific.com | (415) 274-2701 CA BRE# 01002010

Investment Highlights15 -YEAR ABSOLUTE NET SALE/LEASEBAck FREDDY’S SANDWIcHED

BETWEEN kILLEEN’S AIRPORT AND THE ENTRANcE TO FORT HOOD, WHIcH HAS OvER 50,000 PEOPLE ON THE BASE

Killeen has a population of 110,000 (not including the 50,000+ Fort Hood population) within a 5-mile radius with explosive continued projected

growth in a 1, 3, and 5-mile radius.

renTABLe SF . . . . 3,500 SF

Price Per SF . . . . $685.71

LAnd AreA . . . . . . 1.3 Acres

LeASe TYPe . . . . . . NNN

YeAr BUiLT . . . . . . 2013

PRIcE: $2,400,000cAP: 6.00%

inveSTmenT highLighTS

Sales are above the national average – 8.0% rent to sales ratio

Very high traffic counts of 42,000 vehicles per day on Clear Creek Road

The corridor continues to experience retailer growth and increased traffic counts

LeASe highLighTS

Franchisee shall execute a 15-year lease that commences at close of escrow with 10% rental increases every 5 years in both the primary term and three 5-year option periods

Tenant is responsible for direct payment of taxes, insurance, utilities, repairs, replacements, and maintenance of the roof and all structural elements of the building

Franchisee’s highest sales volume location

Sales of $1.8 million in 2014 - above system average

The guarantor has $80 million+ net worth

Freddy’s | 2

12

S range road

murphy road

clear creek road

190

S range road

murphy road

knight’s Way

Stagecoach road

clear creek road

clear creek road

195

195

201

201

BUS 190

BUS 190

190

190

190

STONETREE GOLF CLUB

SKYLARK FIELD (ILE)

KILLEEN-FORT HOOD REGIONAL AIRPORT

mountain view elementary

Union grove middle School

venable village

elementary

iduma elementary

haynes elementary

Willow Springs

elementary

Live oak ridge middle School

Palo Alto middle School

Shoemaker high School

harker heights

high School

cieLo viSTAeXPreSSWAY PLAZA

mArkeT heighTS

kiLLeen mALL

FORT HOOD DALLAS

29,0

46 D

AIL

Y

high viSiBiLiTY

Traffic counts of approximately 42,000 vehicles per day on Clear Creek Road

42,000 DA

ILY

Freddy’s | 3

195

190

36

35

35

317

cieLo viSTA

eXPreSSWAY PLAZA

FORT HOOD

mArkeT heighTS

kiLLeen mALL

DALLAS

35

Freddy’s | 4

This information 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. Buyer must verify the information and bears all risk for any inaccuracies.

Income & Expense

PRICE $2,400,000

Price Per Square Foot: $685.71

Building Size (SF): 3,500

Lot Size (Acres): 1.30

Capitalization Rate: 6.00%

Year Built: 2013

STABILIZED INCOME Per Square Foot

Rent $41.14 $144,000

LESS Per Square Foot

Taxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses $0.00

EQUALS NET OPERATING INCOME $144,000

Freddy’s | 5

This information 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. Buyer must verify the information and bears all risk for any inaccuracies.

Rent Roll

TenAnT inFo LeASe TermS renT SUmmArY

Tenant Name Sq. Ft. Term Current

RentMonthly

RentMonthly Rent/FT

Yearly Rent/FT

Freddy’s 3,500 1 5 $144,000 $12,000 $3.43 $41.14

6 10 $158,400 $13,200 $3.77 $45.26

11 15 $174,240 $14,520 $4.15 $49.78

Option 1 16 20 $191,664 $15,972 $4.56 $54.76

Option 2 21 25 $210,830 $17,569 $5.02 $60.24

Option 3 26 30 $231,913 $19,326 $5.52 $66.26

Current Totals: 3,500 $144,000 $12,000 $3.43 $41.14

Freddy’s | 6

ABOUT FREDDY’S FROzEN CUSTARD

Freddy’s Frozen Custard & Steakburgers is a quick-service restaurant chain based in Wichita, Kansas. The company opened its doors in 2002, franchised in 2004, and now there are 140 Freddy’s restaurants across 18 states. From sandwiches to sundaes, Freddy’s makes food fresh to order.

Freddy’s Frozen Custard has again been recognized by Franchise Times® Magazine, this time on its inaugural Fast and Serious list in the March issue. The list uses a 10-point formula to identify fast-growing franchise systems that also have staying power. It is based on three years of impressive unit and sales growth and includes brands in other industries, not just restaurants.

For 2013, Freddy’s was again named among Entrepreneur Magazine’s “Franchise 500®”, repeated its recognition by QSR® magazine as one of four “Rising Stars” in the Best Franchise Deals issue, Franchise Times® Magazine’s “Next 300 Franchise Chains” and was included among Inc. Magazine’s 500/5000 list of “Fastest Growing Private Companies”. In 2012, besides those recognitions repeated in 2013, Freddy’s was named one of Business Insider’s “8 Better Burger Chains Poised to Conquer America.”

LEASE SIGNED & GuARANTEED

BY VERY STRONG FRANCHISEE (3

SEPARATE PERSONAL GuARANTIES)

Freddy’s

ABOUT FRANCHISEE

The franchisee is an investor group of very strong guarantors (ask Agent for more details) who have 4 operating stores that are averaging approximately 15% above the national average within the Freddy’s system and 2 more stores scheduled to break ground. They have an 8-store minimum franchise agreement within the Brazos County region of Texas with plans to grow even more. The day-to-day operations of the store are contracted out to HCI Hospitality, a restaurant management company based in Manhattan that operates stores spanning 5 restaurant concepts. They were one of the first Freddy’s franchisees over 10 years ago and they manage Freddy’s stores in Texas, Kansas, Nebraska, and North Carolina.

The backgrounds of the 3 guarantors are quite extensive – 2 of them are the CEO & COO (university of Texas-Austin Law Graduate) of Marcus Foods Inc., a diversified food broker and trader of hundreds of millions of dollars in annual sales and a company that has been around for over 35 years. The 3rd guarantor is the retired chairman of Insurance Management Associates, the largest privately-held insurance brokerage in the Mid-West, with gross premium revenue of over a billion annually. He has held roles within the Wichita Chamber of Commerce and several insurance industry organizations.

The guarantor entity has an $80 million+ net worth.

VOTED #1 OF AMERICA’S

FASTEST GROWING RESTAuRANTS -CNBC

Freddy’s | 7

January 5th, 2013

Freddy’s Frozen Custard and Steakburgers had a franchise record-breaking opening month in December at its Clear Creek location in Killeen.

Now, plans are under way for the franchise to open a second location at the Miller’s Crossing and Knight’s Way intersection in Harker Heights.

“We beat almost every possible record for a Freddy’s opening,” said Clear Creek store manager, Todd Fox. “We beat the opening day record. We did not beat the second-day record, but we did beat the opening week record.”

Freddy’s opening day saw lines going from the register through the front door and drive-thru lanes that spilled out of the parking lot.

Freddy’s staff saw similar crowds at lunchtime throughout the restaurant’s first several days we did $95,000 in sales in the first week.

Freddy’s owner Keith Alter told the Herald in July he was interested in opening a Freddy’s in Harker Heights.

Alter said Friday that Freddy’s will open several new locations across the country in 2013, but the Killeen-Fort Hood market has definitely grabbed his attention.

He said the Clear Creek numbers make opening the Harker Heights store a priority. “The strong reception at Clear Creek certainly moved it up the list,” Alter said.

Harker Heights City Manager Steve Carpenter said he expects Freddy’s to play a significant role in the development of the Farm-to-Market 2410 corridor.

“I think our biggest growth corridor going into the future is going to be 2410,” Carpenter said. “It’s important for our development, not just now, but for the long term. I expect within the next few years, we’ll see a lot of new businesses along 2410.”

Alter did not give a date for the new Harker Heights store opening but he hopes to see it happen in the first half of the year. “But that is subject to a lot of things that can happen in regard to construction,” he said.

In The News

Freddy’s breaks records in killeen, sets sights on harker heights spot

Freddy’s | 8

Site Plan

SiTe PLAn keY

PARCEL OuTLINE:

BuILDING AREA: 3500 SF

Site Plan Not To Scale

S cl

ear c

reek

roa

d20

1

NOTA PART

Freddy’s | 9

Photos

GRAND OPENING

DRIvE-ThRU QUEUE (NOT TRAFFIC)

Freddy’s | 10

Regional Map

FREDDY’S

TRAFFIC COuNTS IN EXCESS OF

42,000 VPD ON CLEAR CREEK RD

killeen

austin

1 Hour 7 Min67 Miles

Killeen Texas

Freddy’s | 11

kiLLeen, TX overvieW

Killeen is located in Bell County and, with a 2010 population of 127,921, it is the 21st most populous city in Texas. Killeen is the principal city of the Killeen-Temple-Fort Hood Metropolitan Statistical Area and is located directly adjacent to the main cantonment of Fort Hood.

The economy of the city benefits from the soldiers (and their families) stationed there. Fort Hood is one of the largest uS military installations in the world, with about 45,414 soldiers and 8,900 civilian employees, covering 214,000 acres.

The economy in Killeen also benefits from several institutions of higher education such as Central Texas College (over 67,000 students) and Texas A&M university-Central Texas (over 2,000 students), which is a branch campus of nearby Tarleton State university.

Location & Demos

2013 HOUSEHOLD INCOmES

POPULATION

Employer # of Employees*Fort Hood 58,187Killeen Independent School District 6,000Central Texas College 1,360MetroPlex Hospital 1,300*Approximate

TOP EmPLOYERS IN KILLEEN

1-Mile 3-Mile 5-Mile

2010 7,449 52,516 101,3282014 8,126 57,940 110,0002019 9,054 64,059 119,958

1-Mile 3-Mile 5-Mile

Average $54,644 $54,698 $53,155Median $47,328 $48,347 $44,622

Freddy’s | 12

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John Andreinijandreini@capitalpacific.com | (415) 274-2715 CA BRE# 01440360

chriS koSTAneckick@capitalpacific.com | (415) 274-2701 CA BRE# 01002010

copyright © 2015 [capital pacific real estate brokerage company]

BoB SAnnerbsanner@capitalpacific.com | (415) 274-2717 CA BRE# 00869657

rick SAnnerrsanner@capitalpacific.com | (415) 274-2709 CA BRE# 01792433

In Conjunction With TX Licensed Broker: Steve Sielingsteve@azurcc.com | (214) 888-8262

10-10-11

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Information About Brokerage Services

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