investment offering | $2,326,000s_ga_kennesaw_marketing... · page 6: site plan georgia broker of...

214.915.8890

BOB MOORHEAD

[email protected]

JOE CAPUTO

[email protected]

RUSSELL SMITH

[email protected]

Investment OFFERING | $2,326,000

Hardee’s

Jim Owens & Cobb Parkway, Kennesaw, GA – Atlanta Metro

property. New Construction, 2,987+ SF building on 1.12+ acres.

tenant. Atlantic Star Foods, LLC, operates over 38 restaurants in Georgia and South Carolina, specializing in Hardee’s. Guarantor, Summit Restaurant Holdings,

LLC, operates 104 restaurants, 101 being Hardee’s locations.

lease structure. Brand new, 20-year, Absolute NNN lease with 7% rent increases every 5-years in initial term and options.

location. Hardee’s is strategically located along Cobb Parkway (38k Cars / Day) and Jim Owens in Kennesaw, GA. Cobb Parkway is a portion of US-41 that

carries traffic through northern Fulton and Cobb counties. Population within a 5 mile radius of the subject property is projected to grow by 5.43% over the next 5

year period ending in 2019. This growth coupled with prime accessibility has led to the development of various shopping centers with a variety of national credit

tenants. Within a 3-mile radius of the subject property, there is over 1,000,000 square feet of retail. National credit tenants in the area include Walmart, Lowe’s,

Home Depot, Best Buy, Super Target, Kroger, Starbucks, McDonald’s, Kohl’s. Rite Aid, Firestone, Subway, Petsmart, Petco, Payless, Discount Tire, Firehouse

Subs, Chili’s, Panera Bread, and countless others. Kennesaw is located 30-miles north of Atlanta, GA.

SUBJECT PROPERTY

EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the

property located at Jim Owens & Cobb Parkway, Kennesaw, GA 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 Hardee’s


PAGE 7: LOCATION OVERVIEW

PAGE 8-9: LOCATION MAPS

Disclaimer

PAGE 4-5: AERIAL PHOTOS

PAGE 6: SITE PLAN

Georgia Broker of Record:Pamela Atwater | Atwater Commercial Real Estate Services

SUBJECT PROPERTY PRIOR TO PANDA EXPRESS EXPANSION

PRICE: $2,326,000

NET OPERATING INCOME: $133,729

PROJECTED BUILDING AREA: 2,987+ Square Feet

LAND AREA: 1.12+ Acres

YEAR BUILT: 2014

LANDLORD RESPONSIBILITY: None

OWNERSHIP: Fee Simple Interest

OCCUPANCY: 100%

Tenant overview

3

Investment overviewHardee’s


Lease Expiration: December 2034

Rent Commencement: December 2014

Initial Lease Term: 20-Years, Plus 4, 5-Year Options to Renew

LESEE: ATLANTIC STAR FOODS, LLC

Rent Increases: 7% Increase Every 5 Yrs In Term & Options

Year 1-5 Annual Rent (Current): $133,729*

Lease Type: Absolute NNN

Year 6-10 Annual Rent: $143,090*



Year 21-25 Annual Rent (Option 1): $175,291*

Lease overview




ATLANTIC STAR FOODS, LLC / SUMMIT RESTAURANT HOLDINGS, LLC

Atlantic Star Foods, LLC, operates over 38 restaurants in Georgia and South Carolina, specializing in Hardee’s. Buddy Brown, operator of Atlantic Star Foods, LLC, and

several other Hardee’s / Carl’s Jr. entities, is currently the second largest franchisee in the CKE restaurant system. Summit Restaurant Holdings, LLC, currently operates 104

restaurants, 101 being Hardee’s locations.

HARDEE’S | www.hardees.com

Hardee’s is an American restaurant chain, which predominantly operates in the South and Midwest states. It has evolved through several corporate ownerships since its

establishment in 1960. It is currently owned and operated by CKE Restaurants. Along with its sibling restaurant chain, Carl’s Jr., Hardee’s is the 5th largest fast-food restaurant

chain in the United States after Subway, McDonald’s, Burger King and Wendy’s. As of November 2013, there are 1,977 Hardee’s locations in 30 states.

CARL KARCHER ENTERPRISES, INC. | www.ckr.com

Founded by Carl’s Jr. entrepreneur Carl Karcher in 1964, Carl Karcher Enterprises (CKE) today owns, operates, franchises and/or licenses 3,243 quick-service restaurants

(QSR) in 43 states, primarily under the brand names Carl’s Jr. and Hardee’s, both of which offer innovative, premium products intended to appeal to a target audience of

young, hungry guys. CKE Restaurants is the parent company of Carl’s Jr., Hardee’s, Green Burrito, and Red Burrito restaurant chains. The company employs a dual branding

technique for Carl’s Jr. with Green Burrito. Similarly Hardee’s has a dual branding strategy with Red Burrito. Carl’s Jr. primarily operates in western US and West Coast

regions. In 2013, CKE Restaurants, Inc. was purchased by the private equity firm Roark Capital Group, based out of Atlanta. Roark’s franchise and multi-unit portfolio

includes 29 brands that collectively have more than 15,000 locations and $15 billion in system-wide revenues across 50 states and 68 countries. Roark’s total locations include

nearly 13,000 domestic locations and more than 2,300 international locations. They also include nearly 13,000 franchise locations (operated by 4,200 franchisees) & 2,300

company-owned locations. The firm has $3 billion of equity capital under management.

*Rent is based on estimated construction costs and will be adjusted accordingly upon building completion.

Annual Rents shown above are estimates. Consequently, the Purchase Price may change based upon the

agreed to CAP rate.GUARANTOR: SUMMIT RESTAURANT HOLDINGS, LLC

4

Aerial photoHardee’s


North Cobb High School

(2,900 Students)

Awtery Middle School

(800 Students)

http://www.laniertech.edu/






5

Aerial photoHardee’s








6

SITE PLANHardee’s


Location overviewHardee’s


7

IMMEDIATE TRADE AREA

Hardee’s is strategically located along Cobb Parkway (38k Cars / Day) and Jim

Owens in Kennesaw, GA. Cobb Parkway is a portion of US-41 that carries traffic

through northern Fulton and Cobb counties. US-41 is a north-south Highway that

runs from Miami, Florida to the Upper Peninsula of Michigan. Population within a 5

mile radius of the subject property is projected to grow by 5.43% over the next 5

year period ending in 2019.

This growth coupled with prime accessibility has led to the development of various

shopping centers with a variety of national credit tenants. Within a 3-mile radius of

the subject property, there is over 1,000,000 square feet of retail. National credit

tenants in the area include Walmart, Lowe’s, Home Depot, Best Buy, Super Target,

Kroger, Starbucks, McDonald’s, Kohl’s. Rite Aid, Firestone, Subway, Petsmart,

Petco, Payless, Discount Tire, Firehouse Subs, Wendy’s, Taco Bell, Chili’s, Panera

Bread, and countless others.

North Cobb High School (2,900 students) and Awtery Middle School (800 Students)

are located 1-mile north of the site.

KENNESAW, GA / COBB COUNTY

Kennesaw is a city in Cobb County, Georgia, located in the greater Atlanta

metropolitan area. It had a population of 29,783 according to the 2010 census. One

of the most striking features of Kennesaw’s growth over the last 25 years has been

the advances in educational levels. In 1970, for example, approximately 20% of the

residents had only elementary school education and just 220, and six percent of

3,548 residents were college graduates. Now the status is reversed with

approximately 20% of city residents being college graduates and approximately five

percent with elementary-level education.

During the next 20 years Kennesaw is expected to grow more than any other part of

the Atlanta Region. The growth is a direct consequence of Town Center Mall,

located at the convergence of I-75 and I-575, just over a mile from the western end

of Kennesaw. The area containing the mall and the stretch of I-75 near the mall will

grow from 7,383 jobs in 1990 to 44,000 in 2020, while the Kennesaw Census Tract

will grow from 3,000 jobs in 1990 to 12,000 jobs in 2020. It is important to note the

differences in employment by sector for the two tracts. Retail is the dominant sector

in both tracts, but in the Town Center tract it accounts for 54% of all jobs, only 41%

in the Kennesaw tract. By 2020, both economies will diversify in relative terms, with

retail accounting for 44% of Town Center jobs and 35% of Kennesaw jobs, along

with 28% for services and 13% for government.

Cobb County is a suburban county located outside of and adjacent to Atlanta, GA

and has a current population of 688,078. Cobb County is ranked as the most

educated county in the state of Georgia, 12th most educated in the US, and is

ranked among the 100 wealthiest counties in the US.

Dobbins Air Force Base is located in Cobb County adjacent to Smyrna and Marietta.

This facility has a full time staff of 1,800 personnel and hosts the 94th Airlift Wing

unit. Due largely to Dobbins Air Foce Base Lockheed Martin Aeronautics operates

a manufacturing plant and offices in Marietta. These facilities employ approximately

7,000 people.

ATLANTA-SANDY SPRINGS-MARIETTA, GA MSA

The Atlanta metropolitan area, or Metro Atlanta, is officially designated by the

United States Census Bureau as the Atlanta-Sandy Springs-Marietta Metropolitan

Statistical Area, and is the most populous metro area in the U.S. state of Georgia

and the 9th largest metropolitan statistical area (MSA) in the United States. In

addition to Atlanta proper, Metro Atlanta spans 28 counties in north Georgia and

has a total population of 5,268,860, a 28.13% increase from 2000. With a gross

metropolitan product of $270 billion, Atlanta's economy ranks 15th among world

cities and 6th in the nation. These factors are significant contributors to Atlanta’s

status as an “Alpha- World City.” This coveted distinction is based on factors such

as a city’s impact on global business, political influence, population, cultural, and

infrastructural characteristics.

Several major national and international companies are headquartered in metro

Atlanta, including 4 Fortune 100 companies: The Coca-Cola Company, Home

Depot, United Parcel Service, and Delta Air Lines. Other major corporate

headquarters in Atlanta and around the metro area include AT&T Mobility, Newell

Rubbermaid, Arby's, Chick-fil-A, Earthlink, Equifax, First Data, Gentiva Health

Services, Georgia-Pacific, NCR, Oxford Industries, RaceTrac Petroleum, Southern

Company, Mirant, and Waffle House. The MSA also has a sizable financial sector.

The Federal Reserve has its district headquarters in Atlanta and Sun Trust, the 7th

largest bank in the U.S. by assets, held is based there.

The metro area is a major transportation hub, too. Hartsfield–Jackson Atlanta

International Airport, the world’s busiest airport, is located 7 miles south of the

Atlanta central business district. Interstate 75, which extends from Tampa, FL

north to Canada, passes through the center of the city. Interstates 85 and 20 also

intersect in Atlanta. These amenities have lured corporations such as Ford Motor

Company, Publix, Kellog’s, Toys r Us, Office Depot, and GE Appliance to locate

major distribution centers in the area. The growth trend in the Metro Atlanta

transportation sector continues with Federal Express planning to construct a 50-

acre distribution site in the north Atlanta suburb of Norcross.

8

Location mapHardee’s


9

Location mapHardee’s


10

DemographicsHardee’s


Demographic snapshot

KENNESAW STATE UNIVERSITY, KENNESAW, GA

Radius 1 Mile 3 Mile 5 Mile

Population:

2019 Projection 9,381 68,003 147,581

2014 Estimate 8,925 64,180 139,977

2010 Census 8,796 61,576 136,436

Growth 2014-2019 5.11% 5.96% 5.43%

Growth 2010-2014 1.47% 4.23% 2.60%

Households:

2019 Projection 3,377 23,729 52,197

2014 Estimate 3,208 22,362 49,479

2010 Census 3,151 21,389 48,228

Growth 2014 - 2019 5.27% 6.11% 5.49%

Growth 2010 - 2014 -0.12% 1.94% 0.63%

Owner Occupied 2,576 17,424 36,566

Renter Occupied 632 4,938 12,914

2014 Avg Household Income $73,468 $81,819 $86,427

2014 Med Household Income $62,738 $68,173 $69,232

2014 Households by Household Inc:

<$25,000 555 3,021 7,137

$25,000 - $50,000 644 4,956 9,903

$50,000 - $75,000 775 4,398 10,056

$75,000 - $100,000 524 3,882 8,070

$100,000 - $125,000 333 2,586 5,192

$125,000 - $150,000 136 1,266 2,747

$150,000 - $200,000 157 1,305 3,482

$200,000+ 85 946 2,893

DOWNTOWN ATLANTA, ATLANTA, GA

investment offering | $2,326,000s_ga_kennesaw_marketing... · page 6: site plan georgia broker of...

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