offering memorandum kneaders - new 15 yr. lease freddy’s … · 2017-07-29 · mile radius of the...

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

KNEADERS - NEW 15 YR. LEASE1821 N ROCK RD. WICHITA, KS, 67226

Offering Memorandum

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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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0070204


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AARON’S - CORPORATE RELOCATION STORE

McDonald’s

N ROCK RD - 25,115 CPD

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KOCH ESTATE

N ROCK RD - 25,115 CPD




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KOCH ESTATE

WICHITA COUNTRY

CLUB

WICHITA COLLEGIATE SCHOOL

(966 STUDENTS)

N R

OCK

RD

- 2

5,11

5 CP

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EXECUTIVE SUMMARY


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KNEADERS

KNEADERS 1821 N. Rock RdWichita, KS 67226

FINANCIAL SUMMARY

Price $3,098,000

Down Payment 100% $3,098,000

Cap Rate 5.10%

Building SF +/- 3,844 SF

Net Cash Flow 5.10% $158,000

Year Built 2017/Under Construction

Lot Size 1.12 Acres

LEASE SUMMARY

Lease Type Absolute Triple-Net (NNN)

Tenant FFG Wichita, LLC d/b/a Kneader’s Bakery & Café

Lease Guarantor Four Foods Group Stores, LLC

Roof & Structure Tenant Responsible

Original Lease Term 15 Years

Rent Commencement Date September 2017

Lease Expiration Date September 2032

Lease Term Remaining 15+ Years

Rental Increases 10% Increases Every 5 Years

Renewal Options 3, 5 Year Options

BASE RENT $158,000

Net Operating Income $158,000

Total Return 5.10% $158,000

ANNUALIZED OPERATING DATA

LEASE YEARS ANNUAL RENT CAP RATE

1 - 5 $158,000.00 5.10%

6 - 10 $173,800.00 5.61%

11 - 15 $191,180.00 6.17%

OPTIONS ANNUAL RENT CAP RATE

Option 1 $210,298.00 6.78%

Option 2 $231,327.80 7.47%

Option 3 $254,460.58 8.21%

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TENANT OVERVIEW

Founded by Gary and Colleen Worthington in 1997, Kneaders Bakery & Café is headquartered in Orem, Utah. The award-winning fast-casual restaurant uses only the highest-quality ingredients to create fresh European hearth breads, delicious sandwiches, mouthwatering pastries, hearty soups and refreshing sal-ads, all made in-house each day. All restaurants have a retail section and also offer a variety of custom-made and themed gift baskets in addition to providing catering services. Kneaders Bakery & Café currently operates corporate-owned and franchised locations in six western states.

FRANCHISEE OVERVIEWFour Foods Group owns and operates 96 restaurants in 7 states, with over 10 addi-tional units scheduled to open in 2017 and additional sites in development including: 44 Kneaders, 48 Little Caesars, 2 R&R BBQs, and 2 Soda Shop Stores.Since 2008, Four Foods Group has experienced remarkable growth, every year. The company began with one Kneaders Bakery and Café restaurant and now operate 43 across four states, with 11 more under development. Same-store sales year over year continue to trend upward, even as the market in many sectors remains flat.In 2016, Four Foods Group secured $35 million of growth capital and selected R&R Barbecue as the next brand to develop and grow throughout the Western United States. Currently there are two R&R Barbecue locations operating, with four more scheduled to open by early 2018.In January 2017, Four Foods Group acquired The Soda Shop, an up-and-coming player in the gourmet soda fountain drink arena, based in Gilbert, Arizona.In February 2017, Four Foods Group secured an additional $33M of growth capital from CIT Bank and private investors to acquire 48 Little Caesar Restaurants in Ala-bama and Louisiana.Four Foods Group has been on either the Inc. 500 or Inc. 5,000 list for 4 consecutive years, recognizing the 500/5,000 fastest growing companies in in the United States. Over the past 3 years, the Company has averaged 344% growth.the United States. Over the past 3 years, the Company has averaged344% growth.

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LOCATION OVERVIEWINVESTMENT HIGHLIGHTS

The area surrounding Kneaders is expected to experience steady growth over the next five years. There are currently 70,000 residents in a three mile radius of the property and 154,700 residents in a five mile radius of the property. The restaurant will benefit from the high daytime employment population of 183,000 in a five mile radius. There are several tenants adjacent to the site, including Best Buy, Mattress Firm, Verizon, GameStop, Dillons, Dick’s Sporting Goods and more.

Wichita is the largest city in the State of Kansas and the 49th-largest city in the United States. Located in south-central Kansas on the Arkansas River, Wichita is the county seat of Sedgwick County and the principal city of the Wichita metropolitan area. In 2014, the estimated population of the Wichita metropolitan area was 641,076, and that of the larger Wichita-Winfield combined statistical area was 673,598.

• Brand New 15 Year Absolute Triple-Net (NNN) Lease• Ten Percent Rental Increases Every Five Years • 2017 Build • Drive Thru Restaurant • Kneaders Bakery & Café’s Master Franchisee, Four Foods Group, Has Been One of America’s Fastest Growing Companies of the Past 5 Years, Appearing Annually on Inc. 500 or Inc. 5,000 List for 4 Consecutive Years• Four Foods Group Owns and Operates 96 Restaurants in 7 States, with Over 10 Additional Units Scheduled to Open in 2017 and Additional Sites in Development Including: 44 Kneaders, 48 Little Caesars, 2 R&R BBQs, an 2 Soda Shop Stores• Visible to 25,115 Cars per Day from North Rock Rd• Average Household Income is $101,180 in a 1-Mile Radius• 154,700 Residents in Trade Area• Directly Across from Bradley Fair, a 280,000-Square-Foot Lifestyle Center, with Over 50 Stores and Restaurants Including Banana Republic, Barnes & Noble, Chico’s, Pottery Barn, GAP, LOFT, Sephora and Williams-Sonoma - It is the Flagship Property of the 320-acre Wilson Estates Master Planned Development• Daytime Employement Exceeds 183,000 in the Trade Area• Easily Accesible from US-96 (50,800 CPD) an Important Connecting Arterial Within the Wichita MSA• Ten Minutes from Wichita State University (14,495 Students)• Fifteen Minutes from Downtown Wichita

PROPERTY DESCRIPTION

Income 1-Mile 3-Miles 5-Miles

2016 Est. Average Household Income $101,179 $87,296 $73,318

2016 Est. Median Household Income $61,898 $56,819 $48,055

2016 Est. Per Capita Income $48,157 $37,403 $30,096

Population 1-Mile 3-Miles 5-Miles

2021 Projection 6,632 62,567 159,672

2016 Estimate 6,550 60,994 154,797

Growth 2016 - 2021 1.26% 2.58% 3.15%

Households 1-Mile 3-Miles 5-Miles

2021 Projections 3,164 26,835 65,291

2016 Estimate 3,092 25,919 63,051

Growth 2016 - 2021 2.34% 3.53% 3.55%

DEMOGRAPHIC REPORT

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REGIONAL MAP SITE PLAN




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REGIONAL MAP PROPERTY PHOTOS

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LOCAL MAP

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a care-ful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and finan-cial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed fa-cilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be inter-rupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

Net Leased Disclaimer

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 other 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.

Confidentiality Agreement

exclusively listedExclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

GREG BATESBroker of RecordKANSAS CITY OFFICETel: (816) [email protected] License: BR00035677

offering memorandum kneaders - new 15 yr. lease freddy’s … · 2017-07-29 · mile radius of the...

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