net lease pizza hut property for sale
TRANSCRIPT
Pizza Hut16835 E Warren AvenueDetroit, MI 48224
NET LEASE INVESTMENT OFFERING
NET LEASE INVESTMENT OFFERING
TABLE OF CONTENTS
I. Executive Summary
Executive SummaryInvestment HighlightsProperty Overview
II. Location Overview
Site PlanAerialMapPhotos
III. Market & Tenant Overview
Tenant ProfileLocation OverviewDemographics
NET LEASE INVESTMENT OFFERING
DISCLAIMER STATEMENT
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 The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.
This Offering Memorandum 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. The Boulder Group has not made any investigation, and makes no warranty or representation.
The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group 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.
DISCLAIMER STATEMENT:
NET LEASE INVESTMENT OFFERING
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant net leased Pizza Hut property located in Detroit, Michigan. Pizza Hut has successfully operated at this location for almost 20 years. The Pizza Hut property has easy access and excellent visibility along one of the area’s primary thoroughfares. In addition to Pizza Hut’s cuisine, the location serves WingStreet items. WingStreet is a sister franchise to Pizza Hut specializing in Buffalo chicken wings. Pizza Hut is an American restaurant chain and international franchise with over 15,000 locations worldwide. It is a subsidiary of Yum! Brands, Inc., one of the world’s largest restaurant companies.
The 2,202 square foot building is located along Warren Avenue, one of the primary thoroughfares in the East English Village neighborhood of Detroit. Warren Avenue experiences traffic counts of 24,640 vehicles per day. The property is located in a heavily populated area with over 126,315 people living within a three mile radius of the property earning an average household income of $74,819 per year.
National retailers located in the immediate area include Sherwin-Williams, Family Dollar, AutoZone, O’Reilly Auto Parts and Burger King. The property is also located within close proximity to multiple residential communities, local businesses and schools. East English Village Preparatory Academy, a magnet high school with nearly 1,600 students, is located one-quarter mile north east of the property.
The Pizza Hut property has less than one year remaining on the lease which expires June 10, 2018. The triple net lease features two 5-year renewal option periods at fair market rent. Pizza Hut is the world’s largest pizza restaurant chain and fourth largest fast-food chain (as measured by units) with more than 15,000 locations in 120 countries. Pizza Hut is a subsidiary of Yum! Brands, one of the world’s largest restaurant companies publically traded on the New York Stock Exchanges (symbol: YUM).
EXECUTIVE SUMMARY:
NET LEASE INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
• Freestanding restaurant
• Absolute triple net lease with zero landlord responsibilities
• Long operating history at this location (since 1998)
• Positioned along a primary thoroughfare (24,640 VPD)
• Exceptional visibility and easy access
• Over 126,315 people living within a three mile radius earning an average household income of $74,819 per year
• Retailors located in the area include Sherwin-Williams, Family Dollar, AutoZone, O’Reilly Auto Parts and Burger King
INVESTMENT HIGHLIGHTS:
NET LEASE INVESTMENT OFFERING
PROPERTY OVERVIEW
Price: $300,000
Cap Rate: 10.00%
Net Operating Income: $30,000
Lease Commencement Date: June 10, 1998
Lease Expiration Date: June 10, 2018
Renewal Options: Two 5-Year at Fair Market Rent
Tenant: Pizza Hut of America, Inc.
Year Built: 1979
Lease Type: NNN (No Landlord Responsibilities)
Parking: 48 Spaces
Rentable Square Feet: 2,202 SF
PROPERTY OVERVIEW:
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E. WARREN AVENUE (24,640 VPD)
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NET LEASE INVESTMENT OFFERING
SITE PLAN
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AERIAL
NET LEASE INVESTMENT OFFERING
Warren Avenue (24,640 VPD)
Cadieux Road (20,175)
East English Village Preparatory Academy
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NET LEASE INVESTMENT OFFERING
MAP
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NET LEASE INVESTMENT OFFERING
EXTERIOR PHOTOS
NET LEASE INVESTMENT OFFERING
TENANT PROFILE
Pizza Hut is an American restaurant chain and international franchise founded in 1958 by Dan and Frank Carney. The company is known for its Italian-American cuisine menu including pizza and pasta, as well as side dishes and desserts. In 2003, WingStreet was introduced as a hybrid combo tenant with existing Pizza Hut franchises. The two brands are almost always located together. WingStreet restaurants sell breaded and traditional Buffalo wings for take-out and delivery.
Pizza Hut is headquartered in Plano, Texas and has over 15,000 locations worldwide. It is the world’s largest pizza restaurant chain and fourth largest fast-food chain (as measured by units). Pizza Hut is a subsidiary of Yum! Brands which also owns KFC and Taco Bell. Yum! Brands have almost 43,000 restaurants in more than 140 countries and territories, making it one of the world’s largest restaurant companies. Yum! Brands, Inc is a publically traded company on the New York Stock Exchanges using the symbol “YUM”.
In July 2017, Yum! Brands announced plans to invest $130 million in Pizza Hut to upgrade equipment, improve restaurant technology and boost advertising spending through 2018. Pizza Hut will be hiring 14,000 new delivery drivers by the end of 2017.
Website: www.pizzahut.com
Number of Locations: 15,000 +
Number of Employees: 350,000 +/-
Headquarters: Plano, Texas
Parent Company: Yum! Brands
Parent Stock Symbol: YM (NYSE)
Market Capitalization: $26 billion
TENANT PROFILE:
NET LEASE INVESTMENT OFFERING
LOCATION OVERVIEW
Detroit is the most populous city in Michigan, the fourth-largest city in the Midwest and the largest city on the United States–Canada border. It is the seat of Wayne County, the most populous county in the state. Detroit has a population of over 678,000 people making it the 21st-most populous city in the United States. The metropolitan area, known as Metro Detroit, is home to 4.3 million people, making it the second-largest in the Midwest, and lies at the heart of the Great Lakes Megalopolis area, with around 60 million people. Roughly one-half of Michigan’s population lives in Metro Detroit alone. The City of Detroit anchors the second-largest economic region in the Midwest.
Detroit was founded on July 24, 1701 by the French explorer and adventurer Antoine de la Mothe Cadillac and a party of settlers. During the 19th century, it became an important industrial hub at the center of the Great Lakes region. With expansion of the American automobile industry in the early 20th century, the Detroit area emerged as a significant metropolitan region within the United States.
Several major corporations are based in the city, including three Fortune 500 companies. The most heavily represented sectors are manufacturing (particularly automotive), finance, technology, and health care. The most significant companies based in Detroit include: General Motors, Quicken Loans, Ally Financial, Compuware, Shinola, American Axle, Little Caesars, DTE Energy, Lowe Campbell Ewald, Blue Cross Blue Shield of Michigan, and Rossetti Architects.
With its proximity to Canada and its facilities, ports, major highways, rail connections and international airports, Detroit is an important transportation hub. The city has three international border crossings, the Ambassador Bridge, Detroit–Windsor Tunnel and Michigan Central Railway Tunnel, linking Detroit to Windsor, Ontario. The Ambassador Bridge is the single busiest border crossing in North America, carrying 27% of the total trade between the U.S. and Canada. Detroit Metropolitan Wayne County Airport (DTW), the principal airport serving Detroit, is located in nearby Romulus. DTW is a primary hub for Delta Air Lines and a secondary hub for Spirit Airlines.
Detroit is one of 13 American metropolitan areas that are home to professional teams representing the four major sports in North America. All these teams but one play within the city of Detroit itself.
www.detroitmi.gov
LOCATION OVERVIEW:
NET LEASE INVESTMENT OFFERING
DEMOGRAPHICS
DEMOGRAPHIC REPORT: Population 1Mile 3 Mile 5 Mile
Total Population 23,132 135,715 276,990
Total Households 8,077 49,141 104,065
Income 1 Mile 3 Mile 5 Mile
Median Household Income $40,877 $45,096 $41,002
Average Household Income $59,049 $74,819 $64,003
Randy [email protected]
Asher D. Wenig Vice [email protected]
666 Dundee Road, Suite 1801Northbrook, IL 60062
www.bouldergroup.com