wendy's 1975 e beltline ave grand rapids mi · 2019. 5. 16. · revenue $1.9 b net income...

™

Wendy’s

OFFERING MEMORANDUM

1975 E Belt Line Ave Grand Rapids, MI

TA B L E O F C O N T E N T S

EXECUTIVE SUMMARY4FINANCIAL OVERVIEW6

TENANT OVERVIEW10AREA OVERVIEW12

E X C L U S I V E L I S T I N GA G E N T S

A D A M R A I Z E

ASSOCIATE

[email protected] (310) 844-9370MOB (760) 799-5301LIC # 01998817

G A R Y C H O U

FVP & Senior Director


K Y L E M AT T H E W SBROKER OF RECORDLIC # 6505399495

TENANT OVERVIEW

E X E C U T I V E S U M M A R Y

I N V E S T M E N T H I G H L I G H T S

LONG TERM STABILIZED INVESTMENT

• Long Term Lease – 8 years remaining with Two (2), 10-Years options to renew

• Absolute NNN Lease – Zero landlord responsibilities

• Hedge Against Inflation – CPI increases every 5 years

• Strong Commitment to the Location – this site was recently remodeled to Wendy’s latest “Image Activation” concept. (a typical cost around $500,000 dollars)

EXCELLENT LOCATION IN A STRONG RETAIL AREA

• Strong Retail Corridor – Other national brands include: Meijer, Great Clips, Verizon, Applebee’s, ALDI, Jimmy Johns, AT&T and GameStop

• High Visibility – Located off E Beltline Ave, this site benefits from over 40,000 VPD

• Strong Demographics – Approximately 159,000 people within a 5-mile radius with an average household income of over $78,000

• Heavy School Traffic – Adjacent to the Kent Career Tech Center. This site benefits from the 2,000 high school aged students that commute to this school every day for supplemental educational programming

• Franchise Preferred Location - Meritage Hospitality’s casual dining concept, Twisted Rooster, is located across the street, showing the company’s strong preference for this retail corridor

OUTSTANDING OPERATOR OF AN EXCEPTIONAL BRAND

• Seasoned Operator – Meritage Hospitality Group is one of the largest operators in the Wendy’s system. MHG operates over 180 units in over 8 states

• Strong Commitment – Meritage Hospitality continues to expand their Wendy’s operations and Image Activating existing stores


4 Matthews Real Estate Investment Services


Matthews Real Estate Investment Services6

F I N A N C I A L O V E R V I E W

7Wendy’s I Grand Rapids, MI

W e n d y ’ s1975 E Beltline Ave Grand Rapids, MI 49525

List Price .................................................................................................................. $2,821,800

CAP Rate - Current ..........................................................................................................6.00%Gross Leasable Area ............................................................................................. ± 3,350 SF Lot Size ................................................................................................................. ± 0.78 Acres Year Built .................................................................................................................... 1999/2014

Annualized Operating DataMonthly Rent Annual Rent Cap Rate

Current $14,109.00 $169,308 6.00%

4/29/20* $14,814.45 $177,773 6.30%

4/29/25* $15,555.17 $186,662 6.62%

Option 1* $16,332.93 $195,995 6.95%

$17,149.58 $205,795 7.29%

Option 2* $18,007.06 $216,085 7.66%

Tenant Summary

Tenant Trade Name Wendy’s

Type of Ownership Fee Simple

Lease Guarantor Franchisee

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date 4/29/2005

Lease Expiration Date 4/29/2025

Term Remaining on Lease 8 Years

Increases CPI every 5 years (capped at 5%)

Options Two (2), 10-Year Options

*Base rent shall increase by the change, if any, in the CPI for that same period, provided that such increase shall never exceed five percent (5%).

A R E A O V E R V I E W

G r a n d R a p i d s , M i c h i g a n

Known for having the most vibrant downtown between Chicago and Cleveland, Grand Rapids is the primary cultural and business hub of Western Michigan. It located along the Grand River, just thirty minutes away from Lake Michigan’s golden beaches and captivating sunsets. As Michigan’s second largest city, Grand Rapids has long been a mecca for creators and admirers of craftsmanship. Artistic creativity became an integral part of the city’s identity in the 20th century, encompassing everything from visual and performing arts to brewery and cuisine.

With high incomes and low living costs, Grand Rapids offers big city amenities and a high quality of life to its residents. Grand Rapids’ well-maintained and traditionally Midwestern downtown area has a European appearance where the Grand River flows through it. Bustling with numerous restaurants, clubs, theaters and museums, downtown’s walkable neighborhoods host a number of festivals. Many of these events take place at the Vandenberg Plaza, namely the Celebration on the Grand and Festival of the Arts.


9Wendy’s I Grand Rapids, MI 9

M a j o r e m p l o y e r se c o n o m y

Upon its establishment, Grand Rapids emerged as a notable furniture-producing center due to nearby hardwood forests. Today, that industry has transitioned towards high-tech office furniture with the headquarters for such names as Steelcase and Herman Miller in the city, two of the world’s leading office furniture companies.

The surrounding area is agricultural, where greater agricultural variety than otherwise found in many Midwestern locations is promoted by the tempering effect of Lake Michigan. Michigan is second only to California in agricultural diversity; the area is responsible for producing 85% of all crops harvested in Michigan. In part because of the agricultural environment, the area was attractive to settlers who started large, successful businesses such as the Meijer, Van Andel and De Vos families, all of whom left large endowments to the city. Consequently, Meijer and Alticor are both headquartered in Grand Rapids along with other national and multi-national companies, such as Haworth,Wolverine World Wide and Zondervan.

Interest in rebuilding Grand Rapids’ downtown core has been an ongoing theme since the late 1990’s with eleven LEED projects, new construction and renovations on historic buildings. An estimated $3 billion of generated investment has brought countless jobs to the active, high-energy urban center of a growing region of more than one million people. Moreover, the redevelopment of historic buildings into urban condominiums and apartments have brought over 4,000 young professionals into the walkable downtown area.

Grand Rapids has demonstrated an innate ability to forge a dynamic public-private partnership between businesses and community leaders, setting a multi-billion-dollar development boom in motion. The city’s revitalization initiatives are viewed as a template for generating innovative public-private partnerships and a catalyst for world-class life sciences and biotechnology research.

Western Michigan is the fastest growing region in the upper Midwest as start-ups, software firms and high-tech corporations continue to move into Grand Rapids, which surpasses eleven of its peer communities in manufacturing and job and wealth creation. Businesses find the city to be a great place to do business; Grand Rapids’ infrastructure is ready-made for business, offering facilities that range from incubator space for startups to industrial parks for manufacturing and centers for research development. It offers lower business taxes and opportunities for companies of any size and type.

d e v e l o p m e n t

at t r a c t i o n s

Beer Ci ty Ale Trai lVoted Beer City USA in national polls, the city also attracts beer lovers to its Beer City Ale Trail, which boasts more than 40 breweries. A booming craft brewery industry has garnered Grand Rapids a lot of attention. The Beer City Ale Trail takes visitors through a self-guided craft beer tour, allowing them to experience local craft breweries. Many of the area’s most notable breweries offer an insider look at the creation of their product. Grand Rapids is home to Founders, the third best brewery in the world, and HopCat, which was voted as the number one brewpub in the United States and the third best beer bar in the world: Two places certainly worth checking out!

Freder ik Mei jer Gardens & Sculpture As an emerging worldwide cultural destination, Meijer Gardens is the state’s second-largest tourist attraction as well as a feature venue in ArtPrize. Located on a 158-acre campus, Meijer Gardens features Michigan’s largest tropical conservatory, sculpture galleries and permanent sculpture collection, outdoor gardens, nature trails and outdoor gardens. This attraction is one of the nation’s most significant sculpture and botanic experiences, drawing more than ten million visitors since its opening in 1995.

ArtPr izeArtPrize is Grand Rapids’ independent international art competition held every summer. The nineteen day-long event is unlike traditional competitions in that contestants are judged by the public and a jury of professional artists; It is the largest art competition decided by public vote. During the competition, art from all over the world can be seen on every corner of downtown. An approximate 200 venues open their doors for this event as the city serves as an opent platform for those wanting to share their artistic opinion, knowledge, and skills.



d e m o g r a p h i c s

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 4,712 49,116 164,277

2017 Estimate 4,427 47,303 159,156

2010 Census 3,942 44,076 149,933

2000 Census 3,417 41,476 150,721

Growth 2017 - 2022 6.45% 3.83% 3.22%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 1,597 19,545 65,101

2017 Estimate 1,499 18,770 62,693

Growth 2017 - 2022 6.57% 4.13% 3.84%

INCOME 1 Mile 3 Mile 5 Mile2017 Est. Average Household Income $151,337 $84,757 $78,939

SUBJECT PROPERTY

P R O P E R T Y O V E R V I E W


t h e o f f e r i n g

Property Name Wendy’s

Property Address 1975 E Belt Line Ave

Grand Rapids, MI 49525

Assessor’s Parcel Number 70-16-34-100-03641-14-15-226-035

Site DescriptionNumber of Stories OneYear Built 1999/2004Gross Leasable Area (GLA) ± 3,350 SFLot Size ± 0.78 Acres (33,976 SF) Type of Ownership NNNParking 29 Surface Spaces

Parking Ratio 8.6: 1,000 SF

Landscaping Professional

Topography Generally Level

P A R C E L M A P

Traffic Counts:E Beltline Ave : ± 47,000 ADT


at t r a c t i o n s

Matthews Real Estate Investment Services14

T E N A N T O V E R V I E W


Property Name Wendy’s

Parent Company Trade Name The Wendy’s Company (NASDAQ: WEN)

Ownership Public

Credit Rating (S&P) B+

Revenue $1.9 B

Net Income $161.14 M

No. of Locations ± 6,500

No. of Employees (All) ± 21,200

Headquartered Dublin, Ohio

Web Site www.wendys.com

Year Founded 1969

TENANT OVERVIEWThe Wendy’s Company operates the Wendy’s fast food chain. The company is the #2 hamburger chain in the US. The Wendy’s chain consists of nearly 6,500 restaurants in the US and more than 25 other countries. Besides burgers and fries, the restaurants serve chicken sandwiches, wraps, and a variety of salads. Instead of milkshakes, Wendy’s serves its famously thick Frosty. Most of the company’s locations are franchised, and it generates most of its sales in the US.

GEOGRAPHIC OUTREACHThere are more than 6,500 Wendy’s® restaurants currently in operation in the United States and 29 countries and U.S. territories worldwide. New market expansion and further development within existing markets will continue to be dominant drivers of Wendy’s worldwide strategy over the coming years. Ultimately, we believe that earnings generated from international markets will be a significant component of our ability to generate long-term value for our stockholders.

STRATEGYWendy’s brand transformation is re-energizing all touch points with consumers. From bold restaurant design to innovative food that consumers’ want, to improved customer service, this exciting evolution of the brand reinforces the mission to position Wendy’s as A Cut Above. All elements of Wendy’s brand transformation are coming together in a powerful way in the sleek, contemporary Image Activation restaurants. Not only do these restaurants deliver a striking street appearance, they are designed to greatly enhance the customer experience. Prominent features include fireplaces; a variety of inviting seating options, including lounge chairs and booths; Wi-Fi and flat-screen TVs; digital menuboards and more. Coupled with friendly, courteous service, Wendy’s creates a welcoming ambiance that truly stands out.

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Wendy’s located at 1975 E Belt Line Ave, Grand Rapids, MI 49525 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S T A T E M E N T

Wendy’s I Grand Rapids, MI 17

E X C L U S I V E L I S T I N G A G E N T S

A D A M R A I Z E

ASSOCIATE


G A R Y C H O U

FVP & Senior Director


K Y L E M AT T H E W SBROKER OF RECORDLIC # 6505399495

Wendy’sGrand Rapids, MI

™

wendy's 1975 e beltline ave grand rapids mi · 2019. 5. 16. · revenue $1.9 b net income...

Documents