offering memorandum - loopnet...subject property also benefits from being situated near many hotels...

OFFERINGMEMORANDUM

E X C L U S I V E N E T - L E A S E O F F E R I N G

4209 Broadway Street, Mount Vernon, IL 62864

Fazol i ’s (20-Year Sa le -Leaseback)

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

The information contained in this Marketing Brochure has beenobtained from sources we believe to be reliable. However,Marcus & Millichap has not and will not verify any of thisinformation, nor has Marcus & Millichap conducted anyinvestigation regarding these matters. Marcus & Millichap makesno guarantee, warranty or representation whatsoever about theaccuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’sresponsibility to independently confirm the accuracy andcompleteness of all material information before completing anypurchase. This Marketing Brochure is not a substitute for yourthorough due diligence investigation of this investmentopportunity. Marcus & Millichap expressly denies any obligationto conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in thisMarketing Brochure are for example only and do not representthe current or future performance of this property. The value of anet leased property to you depends on factors that should beevaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisorsshould conduct a careful, independent investigation of any netleased property to determine to your satisfaction with thesuitability of the property for your needs.

Like all real estate investments, this investment carries significantrisks. Buyer and Buyer’s legal and financial advisors must requestand carefully review all legal and financial documents related tothe property and tenant. While the tenant’s past performance atthis or other locations is an important consideration, it is not aguarantee of future success. Similarly, the lease rate for some

properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projectedsales with little or no record of actual performance, orcomparable rents for the area. Returns are not guaranteed; thetenant and any guarantors may fail to pay the lease rent orproperty taxes, or may fail to comply with other material terms ofthe lease; cash flow may be interrupted in part or in whole due tomarket, economic, environmental or other conditions. Regardlessof tenant history and lease guarantees, Buyer is responsible forconducting his/her own investigation of all matters affecting theintrinsic value of the property and the value of any long-termlease, including the likelihood of locating a replacement tenant ifthe current tenant should default or abandon the property, andthe lease terms that Buyer may be able to negotiate with apotential replacement tenant considering the location of theproperty, and Buyer’s legal ability to make alternate use of theproperty.By accepting this Marketing Brochure you agree to releaseMarcus & Millichap Real Estate Investment Services and hold itharmless from any kind of claim, cost, expense, or liability arisingout of your investigation and/or purchase of this net leasedproperty.

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure isproprietary and strictly confidential. It is intended to be reviewedonly by the party receiving it from Marcus & Millichap and shouldnot be made available to any other person or entity without thewritten consent of Marcus & Millichap. This Marketing Brochurehas been prepared to provide summary, unverified informationto prospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The informationcontained herein is not a substitute for a thorough due diligenceinvestigation. 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 projectedfinancial performance of the property, the size and squarefootage of the property and improvements, the presence orabsence of contaminating substances, PCB’s or asbestos, thecompliance with State and Federal regulations, the physicalcondition of the improvements thereon, or the financialcondition or business prospects of any tenant, or any tenant’splans or intentions to continue its occupancy of the subjectproperty. The information contained in this Marketing Brochurehas 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 mattersand makes no warranty or representation whatsoever regardingthe accuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verify all ofthe information set forth herein.

NON-ENDORSEMENT NOTICE

Marcus & Millichap Real Estate Investment Services, Inc.(“M&M”) is not affiliated with, sponsored by, or endorsed by anycommercial tenant or lessee identified in this marketing package.The presence of any corporation’s logo or name is not intendedto indicate or imply affiliation with, or sponsorship orendorsement by, said corporation of M&M, its affiliates orsubsidiaries, or any agent, product, service, or commercial listingof M&M, and is solely included for the purpose of providingtenant lessee information about this listing to prospectivecustomers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASECONSULT YOUR MARCUS & MILLICHAP AGENT FOR MOREDETAILS. Activity ID: ZAA0331561


Confidentiality and Disclaimer

Investment Highlights

About the Investment✓ Brand New 20-Year Triple-Net (NNN) Sale-Leaseback With Zero Landlord

Responsibilities✓ Has a 26-Year Operating History | Tenant is Committing to Another 20-Plus

Years!✓ Fazoli’s Corporate Guaranty✓ Rent Increases Equal to 7.5 Percent Every Five Years

About the Location✓ Positioned in a Very Dense Retail Corridor| Walmart, Walgreens, Kroger, Ross,

Big Lots, McDonald’s, Arby’s, Cracker Barrel, Bob Evans, and Many More ✓ Strong Traffic Counts Along Broadway Street & Interstate-65 | Average 27,700

and 36,100 Vehicles Per Day, Respectively✓ Over One Billion Public and Private Dollars Have Been Spent on Development in

Mount Vernon Over the Past Six Years✓ The Property was Recently Renovated to the Newest Fazoli’s Prototype | Long-

Term Commitment to this Site

About the Tenant / Brand✓ Strong Brand Recognition | “Brand of the Year” Award Winner✓ Fazoli’s is the largest fast-casual Italian restaurant chain in the US with

approximately 220 corporate and franchised locations in 25 states✓ The company is owned by Sentinel Capital Partners | 4th largest Restaurant

Private Equity firm in the US✓ The brand was Listed as Third on the Fast Casual’s Top 100 “Movers and

Shakers” List and Named Fast Casual’s “Brand of the Year”

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PRICE: $1,583,333 | CAP: 6.00% | RENT: $95,000

Representative Photo

Fazoli’s – Mount Vernon, IL

Representative Photo

Financial Analysis

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Property DescriptionProperty Fazoli’s

Property Address 4209 Broadway Street

City, State, ZIP Mount Vernon, IL 62864

Building Size 3,926

Lot Size +/- 1.19 Acres

Year Built 1993

Type of Ownership Triple-Net (NNN)

The OfferingPurchase Price $1,583,333

CAP Rate 6.000%

Annual Rent $95,000

Rent Per Square Foot $24.00

Lease SummaryProperty Type Net Leased Restaurant

Guarantor Corporate

Original Lease Term 20 Years

Lease Commencement Close of Escrow

Lease Expiration 20 Years After Close of Escrow

Lease Term Remaining 20 Years

Lease Type Triple-Net (NNN)

Rental Increases 7.5% Increases Every Five Years

Options to Renew Six (6), Five (5) Year Option Periods

INVESTMENT SUMMARYMarcus & Millichap is pleased to present the exclusive listing for the Fazoli’slocated at 4209 Broadway Street in Mount Vernon, Illinois. The property hasbeen a Fazoli’s since 1993 and consists of roughly 3,926 rentable square feet ofbuilding space on an estimated 1.19 acres parcel of land.

This Fazoli’s location will be subject to a brand new 20-year absolute triple-net(NNN) sale-leaseback, which will commence upon close of escrow. The initialannual rent will be $95,000 and will be subject to 7.5 percent rental increasesevery five years. The rent increases will continue throughout the base term andin each of the six, five-year tenant renewal option.

Rent ScheduleLease Year(s) Annual Rent Monthly Rent

Years 1 - 5 $95,000 $7,916.67

Years 6 - 10 $102,125 $8,510.42

Years 11 - 15 $109,784 $9,148.70

Years 16 - 20 $118,018 $9,834.85

Option Period 1 $126,870 $10,572.46

Option Period 2 $136,385 $11,365.40

Option Period 3 $146,614 $12,217.80

Option Period 4 $157,610 $13,134.14

Option Period 5 $169,430 $14,119.20

Option Period 6 $182,138 $15,178.14


PRICE: $1,583,333 | CAP: 6.00% | RENT: $95,000

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Tenant Overview

Company ProfileBetween corporate and their

franchisees, Fazoli’s operates

approximately 220 locations throughout

26 states making it America’s largest

fast-casual Italian restaurant chain.

Fazoli’s was founded in 1988 in

Lexington, Kentucky and is best known

for their sandwiches, pizza, pasta, and

signature breadsticks. The firm is

currently owned by the private equity

firm Sentinel Capital Partners and

remains headquartered in Lexington,

Kentucky.

Fazoli’s has been recognized and awarded as one of the top fast-

casual chains in the United States. They were recently listed as one of

the New York Post’s five breakout fast-casual restaurants and a

Fastcasual.com Brand of the Year award winner. Furthermore, the

brand was listed as #3 on the Fast Casual’s Top 100 “Movers and

Shakers” list and named Fast Casual’s “Brand of the Year”.


This Fazoli’s investment property is located at 4209 Broadway Street, whichboasts average daily traffic counts exceeding 27,700 vehicles per day.Broadway Street intersects Intertstate-64 which brings in an additional 36,100vehicles into the immediate area on average daily. The subject property alsogreatly benefits from being located in the heart of Mount Vernon. There aremore than 20,329 individuals within five-mile radius of the subject property.

The property also benefits from being well-situated in a highly dense retailcorridor consisting of dozens of national and local tenants. Major nationaltenants include but are not limited to Walmart, Walgreens, Dollar Tree,Kroger, Ross, Big Lots, McDonald’s, Arby’s, Applebee’s, Cracker Barrel, BobEvans, McCallister's Deli, Panera Bread, Steak n’ Shake, Hardee’s, Starbucks,Long John Silvers, Wendy’s, Moe’s Southwest Grill, KFC, Pizza Hut, LittleCaesars, Burger King, Chili’s, Taco Bell, Panda Express, and many more. Thesubject property also benefits from being situated near many hotels including:Super 8, The Comfort Inn, America’s Best Value Inn, Motel 6, The Days Inn, andmany more. The subject property is also located within a close proximity toSSM Health Good Samaritan Hospital, a 134-bed medical facility.

Mount Vernon is home to a number of industrial employers, includingContinental Tire’s largest facility, as well as major distribution centers forNAPA, National Railway Equipment, and Walgreens. Interstate-57 andInterstate-64 as well as Highway-37 and Highway-15 all run through MountVernon, adding to its attractiveness as a hub of distribution. Mount Vernon isalso situated at the convergence of three major rail lines. Norfolk Southern,Union Pacific, and Evansville Western railways converge in the city limits withspurs to all directions. Over one billion public and private dollars have beenspent on development during the last six years. Under the guidance of acitizen/city generated Comprehensive Plan, Mt. Vernon has made great stridesin infrastructure improvements: roads, water and sewer lines, growth ineconomic development: new retail, expansion/renovation of existingbusinesses, the attraction of new businesses, growth in recreational facilitiesand community events and the revitalization of our historic downtown area.

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Location Overview

ADTC: 27,700

ADTC: 36,100

Property Address: 4209 Broadway Street, Mt. Vernon, IL 62864


Surrounding Area

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ADTC: 27,700

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Property Photos


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Surrounding Property Photos


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Local Map

Mt. Vernon Outland Airport (MVN)



Regional Map

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ILLINOIS

Demographics

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3 Miles 5 Miles 10 MilesPOPULATION

2023 Projection 14,801 19,951 30,782

2018 Estimate 15,239 20,329 31,077

2010 Census 15,171 20,282 31,133

2000 Census 16,276 21,205 32,075

INCOMEAverage $68,003 $68,765 $68,586

Median $41,445 $44,033 $48,404

Per Capita $30,139 $29,774 $28,755

HOUSEHOLDS2023 Projection 6,605 8,696 12,986

2018 Estimate 6,703 8,733 12,953

2010 Census 6,742 8,802 13,091

2000 Census 7,081 8,981 13,117

HOUSING2018 $85,900 $88,308 $91,701

EMPLOYMENT2018 Daytime Population 22,920 28,174 34,628

2018 Unemployment 8.02% 7.50% 6.82%

2018 Median Time Traveled 17 Mins 18 Mins 20 Mins

RACE & ETHNICITYWhite 77.93% 81.95% 87.15%

Native American 0.06% 0.05% 0.03%

African American 15.19% 12.19% 8.24%

Asian/Pacific Islander 2.23% 1.82% 1.41%


3 Miles

5 Miles

10 Miles

EXCLUSIVE NET -LEASE OFFERING


Steven D. WeinstockMarcus & MillichapOne Mid-America PlazaSuite 200Oakbrook Terrace, IL 60181630-570-2250License: 471011175

offering memorandum - loopnet...subject property also benefits from being situated near many hotels...

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