price $7,817,025 | 5.85% cap | noi $457,296

Actual Building

±

Price $7,817,025 | 5.85% CAP | NOI $457,296*

No warranty expressed or implied has been made as to the accuracy of the information provided herein, no liability assumed for error or omissions

Asking Price $7,817,025

CAP Rate 5.85%

NOI $457,296*

Years Left on Lease 20± Years

Rent Increases 2% Annual

PROPERTY / LEASE OVERVIEW

We are pleased to present the opportunity to purchase a very highperforming Red Lobster located in Arlington (Dallas/Ft. Worth), TX for$7,817,025 / 5.85% CAP. There are 20± years remaining on thecorporately backed Lease with 2% annual rent bumps. The Lease isabsolute NNN with zero Landlord obligations - Tenant is responsiblefor all property taxes, insurance and maintenance/repairs, etc.

Very High Performing/Established Location - Red Lobster and hasoccupied this location for 30 years (since 1989).

The Property is situated on 1.25± acres along S Cooper St (major retailcorridor with 46,000+ VPD) and in front the high performing Parks atArlington Mall (Sales PSF ±20% Higher than the National Avg), whichcontains more than 170 stores and restaurants including Macy’s,Dillard's, Victoria Secret, Dick’s Sports and attracts more than 22million annual visitors. Other retailers include Target, Home Depot,Lowe’s Costco, Walmart, Kohls, McDonald’s and much more.

A+ Dense Location - Total population within 1-mile is 10,625 withmore than 330,000 people within 5-miles. Arlington is located lessthan 15 minutes from Downtown Dallas. The Dallas-Fort WorthMetroplex (“DFW”) is the 4th largest metropolitan area in the nation.

The Lease is corporately guaranteed by Red Lobster, a subsidiary ofGolden Gate Capital, who has a long track record of investments inmulti-unit restaurant and retail businesses, Golden Gate Capital hasover $15 billion in assets under management.

*Priced off Aug 2020 Rent Bump - Seller to provide rent credit at closing

Lease Commencement December 17, 2015

Lease Expiration July 31, 2039

Building Size 9,362± SF

Lot Size 1.25± AC

Options to Renew 4 x 5 year w/Bumps

Year Built/Remodel 1989/2008

Tenant Red Lobster Hospitality, LLC

Lease Guarantor Corporate

Lease Type Fee Simple – Absolute NNN

Roof & Structure Tenant Responsible

PROPERTY / LEASE OVERVIEW

4233 South Cooper Street Arlington, TX 76015

https://www.dallasnews.com/business/retail/2018/08/28/parks-arlington-mall-new-owners

Derrick Schroeder | Single Tenant Net Leased Specialist | Solid Investments of Berger Realty Group

C: 954-296-6955 • F: 954-944-1830 • [email protected] • www.SolidInvestmentsFL.com


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PROPERTY PHOTOPROPERTY PHOTO

▪ Absolute NNN Lease - ZERO Landlord Responsibilities

▪ Long Term Lease - 20± Years Left on the Primary Term

▪ 2% Annual Rent Increases – Excellent Hedge Against Inflation

▪ Very Strong Store Sales – Higher than the Average Red Lobster

▪ Corporate Guaranteed Lease by Red Lobster, a subsidiary of Golden Gate Capital, who has over $15 billion inassets under management - Notable restaurant and retail investments include Express, Payless Shoe Source,Anne Taylor, California Pizza Kitchen, J. Jill, and Eddie Bauer, among others.

▪ Red Lobster is the World’s Largest Seafood Restaurant Concept with almost 700 Locations and staffs over58,000 employees and brought in $2.5 billion in net sales.

▪ Thai Union, primarily known for its large global tuna brands including Chicken of the Sea and John West, recentlyinvested $575 million (25% stake) into Red Lobster – Click here to read that article.

▪ Strong Traffic Counts in the Area - S Cooper Street 46,000 VPD and Interstate 20 with 154,000 VPD

▪ Major Retail Corridor – Outparcel to The Parks at Arlington Mall (a high performing mall with sales ±20% higherthan the national average), which contains more than 170 stores and restaurants including Macy’s, Dillard's,Sears, JCPenney and many more.

▪ Sale Includes BOTH Building & Land (depreciable asset)

▪ Dense Location - Total Population within 1-Mile is 10,625 & more than 330,000 people within 5-Miles

▪ Arlington is located less than 15 minutes from Downtown Dallas. The Dallas-Fort Worth Metroplex (“DFW”) isthe 4th largest metropolitan area in the nation

▪ Texas has No State Income Tax




PROPERTY HIGHLIGHTS

https://www.seafoodsource.com/news/supply-trade/thai-union-buys-usd-575-million-stake-in-red-lobster

https://www.dallasnews.com/business/retail/2018/08/28/parks-arlington-mall-new-owners




RENT ROLL

Lease Year NOI CAP Increases

August 1, 2019 - July 31, 2020* $457,296 5.85%

August 1, 2020 - July 31, 2021 $457,296 5.85% 2%

August 1, 2021 - July 31, 2022 $466,442 5.97% 2%

August 1, 2022 - July 31 2023 $475,771 6.09% 2%

August 1, 2023 - July 31, 2024 $485,286 6.21% 2%

August 1, 2024 - July 31 2025 $494,992 6.33% 2%

August 1, 2025 - July 31 2026 $504,892 6.46% 2%

August 1, 2026 - July 31 2027 $514,990 6.59% 2%

August 1, 2027 - July 31 2028 $525,290 6.72% 2%

August 1, 2028 - July 31 2029 $535,795 6.85% 2%

August 1, 2029 - July 31 2030 $546,511 6.99% 2%

August 1, 2030 - July 31 2031 $557,441 7.13% 2%

August 1, 2031 - July 31 2032 $568,590 7.27% 2%

August 1, 2032 - July 31, 2033 $579,962 7.42% 2%

August 1, 2033 - July 31, 2034 $591,561 7.57% 2%

August 1, 2034 - July 31, 2035 $603,393 7.72% 2%

August 1, 2035 - July 31, 2036 $615,460 7.87% 2%

August 1, 2036 - July 31, 2037 $627,770 8.03% 2%

August 1, 2037 - July 31, 2038 $640,352 8.19% 2%

August 1, 2038 - July 31, 2039 $653,132 8.36% 2%

RENT ROLL




TENANT PROFILE

Website - www.RedLobster.com

Number of Locations: 705

• Red Lobster is the largest seafood restaurant concept in the worldand is an iconic full service brand with broad demographic appealand a significant advertising budget (2nd largest in casual dining).

• Thai Union, primarily known for its large global tuna brandsincluding Chicken of the Sea and John West, recently invested $575million (25% stake) into Red Lobster – Click here to read that article.

• The Company was founded in 1968 and currently operates 704restaurants throughout the United States and Canada and has 43franchised restaurants in international markets.

• Red Lobster is led by an experienced management team with ahistory of success leading the brand (average 27+ years experienceacross executive team).

• The company generates $2.5B in revenue and is the 6th largestcasual dining concept in North America.

• On July 28, 2014, Golden Gate Capital (“GGC”) acquired Red Lobsterfrom Darden Restaurants

• Red Lobster is now an independently owned company, completelyseparate from Darden Restaurants

• Red Lobster is well capitalized with >$200M net worth and >$200Mof liquidity

• Golden Gate Capital has a long, successful track record andsignificant experience with multi-unit restaurant and retailbusinesses

Tenant: Red Lobster Hospitality LLC

Business Type: Casual Dining Restaurant

Ownership: Private

Revenue: $2.5 Billion

Founded: 1968

Headquarters: Orlando, FL

Website www.goldengatecap.com

TENANT PROFILE

50% Share in Seafood Casual Dining

http://www.redlobster.com/

https://www.seafoodsource.com/news/supply-trade/thai-union-buys-usd-575-million-stake-in-red-lobster

http://www.goldengatecap.com/

ABOUT THE LOCATION

This Red Lobster property is located at 4233 South Cooper Street,Arlington, Texas. Arlington is a city in the state of Texas, within theDallas–Fort Worth–Arlington MSA, Tarrant County.

There are approximately 121,000 people within a three-mileradius of this property and more than 324,000 within a five-mileradius. The property is situated on South Cooper Street, withaverage daily traffic counts of over 117,116 vehicles. Adjacent toSouth Cooper Street is Interstate 20 which brings in an additional154,500 vehicles to the immediate area.

The subject property is well-positioned in a strong retail corridorbenefitting from its proximity to the Parks at Arlington Mall. TheParks at Arlington Mall is anchored Macy’s, Dillard’s, Sears andJCPenney. The mall contains more than 170 stores andrestaurants including AnnTaylor, Victoria Secret, Forever 21,Footlocker, Kay Jewelers, Dick’s Sporting Goods, Aldo, and Barnes& Noble all of which are strong drivers of traffic to this RedLobster site. Costco, The Home Depot, Walmart, Target and Kohl’sare among the nationally recognized retailers in the immediatearea. Additional restaurants include Olive Garden, OutbackSteakhouse, MC Donald’s, Denny’s, Chili’s, IHop and Applebee'samongst others.




The University of Texas at Arlington is located less than 3 miles from the Property and has over 41,000 students enrolled. Locatedapproximately 12 miles east of downtown Fort Worth and 20 miles west of downtown Dallas. Approximately 6 miles north sits AT&TStadium, home to the Dallas Cowboys. The $1.2 Billion stadium boasts 100,000 seats and hosts various sports events and concertsthroughout the year.




SITE PLANSURVEY

Solid Investments of Berger Realty Group hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Solid Investmentsof Berger Realty Group has not and will not verify any of this information, nor has Solid Investments of Berger Realty Group conducted anyinvestigation regarding these matters. Solid Investments of Berger Realty Group makes no guarantee, warranty or representation whatsoeverabout 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 materialinformation before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of thisinvestment opportunity. Solid Investments of Berger Realty Group expressly denies any obligation to conduct a due diligence examination ofthis Property for Buyer.

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

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leasedproperty 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 andcarefully review all Legal and financial documents related to the property and tenant. While the tenant’s past performance at this or otherlocations is an important consideration, it is not a guarantee of future success.

Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on atenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; thetenant 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; cashflow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history andlease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property andthe value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon theproperty, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of theproperty, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Solid Investments of Berger Realty Group Real and hold it harmless from any kindof claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.




NET LEASE DISCLAIMERNET LEASE DISCLAIMER

Exclusively Marketed By

SOLID INVESTMENTS

DERRICK SCHROEDERNet Leased Specialist

C: 954-296-6955F: 954-944-1830

[email protected]

Berger Realty Group

price $7,817,025 | 5.85% cap | noi $457,296

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