OFFERING MEMORANDUM Edward A
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REPRESENTATIVE PHOTO Golden Corral 4675 Highway 121, The Colony, TX 75056 EXCLUSIVELY LISTED BY: OFFERING MEMORANDUM Edward A. Benton EXCLUSIVE NET-LEASE OFFERING Vice President TABLE OF CONTENTS FINANCIAL OVERVIEW > Offering Terms > Investment Summary > Investment Overview TENANT OVERVIEW LOCATION OVERVIEW > Location Overivew > Subject Property Photos > Aerial Map > Trade Area Aerial Map DEMOGRAPHICS FINANCIAL OVERVIEW OFFERING TERMS INVESTMENT Purchase Price NOI CAP Rate OVERVIEW $2,450,000 $164,000 6.70% > Long-term absolute NNN lease with scheduled rent increases > Low price point and replaceable rent INVESTMENT SUMMARY > 16.67% rent increase in early 2020 > Seasoned and experienced multi-unit FINANCIAL OVERVIEW Tenant Trade Name Golden Corral Tenant FAC Corral, LLC operator Location 4675 Hwy 121, The Colony, TX > Outparcel to Walmart Super Center Price $2,450,000 > Area retailers include: SuperTarget, Square Feet 10,216 SF Lot Size 101,494 SF Home Depot, Kroger, Top Golf, Nebraska Price per SF $239.82 Furniture Mart, Ross Dress for Less, Cap Rate 6.70% NOI $164,000 Rooms To Go, PetSmart and many others Corporate/Franchisee Franchisee > Excellent highway location - over 98,000 Personal Gaurantee No Lease Type Absolute NNN VPD Roof & Structure Tenant Responsible Lease Term Amended Remaining Term Approx. 8 Years Lease Commence April 1, 2010 Lease Expiration March 31, 2025 Rent Increases 16.67% in early 2020 *Current rent is $144,000. $20,000 has been added to the current base rent which is an average of the percentage rent the Seller has received over the last three years. REPRESENTATIVE PHOTO REPRESENTATIVE TENANT OVERVIEW TENANT OVERVIEW When the first Golden Corral ® restaurant opened in Fayetteville, North Carolina back in 1973, a fledgling Golden Corral Corporation took a confident first step in the restaurant business, beginning a tradition of offering all guests real, wholesome foods in a family-friendly atmosphere at a great value. Nearly 40 years later, Golden Corral ® is well known as America’s #1 buffet and grill. Golden Corral’s legendary, endless buffet features an abundant variety of delicious familiar favorites and continuous new menu offerings for breakfast, lunch and dinner. Golden Corral’s legendary, endless dinner buffet features an enormous variety with 15 proteins including USDA, grilled to order sirloin steaks, pork, seafood, shrimp, and chicken. Golden Corral is especially proud to serve USDA sirloin, aged and hand-cut daily by their in-restaurant butchers. The endless lunch TENANT OVERVIEW buffet features a wide variety of home-style classics like our pot roast simmered for 12-hours, made-from-scratch meatloaf, crispy fried chicken, creamy mac and cheese, made-from-scratch mashed potatoes, beloved Bourbon Street Chicken, so many fresh salad choices and dozens of other items. Its endless breakfast buffet features made-to-order omelets, fluffy pancakes, hot-off-the griddle sausage and bacon, fruit, French toast, pastries and much more. Its bakery and dessert buffet are filled with freshly baked breads, like our famous yeast rolls, homemade cakes and pies, delicious cookies, brownies, pastries, and ice cream. Golden Corral’s vision remains to be the leader in the family restaurant segment by making pleasurable dining affordable for every guest, at every restaurant, every day. Golden Corral is headquartered in Raleigh, North Carolina with nearly 500 locations across 40 states. About 100 of stores are company-owned while the rest are franchisees. Gross sales are over $1.53 billion. Golden Corral’s past 35 years of success can be attributed to two main factors: strategic location for each restaurant and frseh ingredients. Most of its stores are constructed away from direct competition and instead focus on small-town America. Golden Corral differentiates itself by serving USDA sirloin hand-cut daily by their very own butchers. LOCATION OVERVIEW LOCATION OVERVIEW Location Overview This Golden Corral is located at 4675 Highway 121, The Colony, Texas. The subject property is well-positioned just off Highway 121 with traffic counts over 98,000 VPD. The Golden Corral is an outparcel to a Walmart Super Center and is sur- rounded by many other national retailers, including Super Target, Home Depot, Kroger, Top Golf, Nebraska Furniture Mart, Ross Dress for Less, Rooms To Go, PetSmart and many others. The Colony, also known as the City by the Lake, is one of the best kept secrets in the heart of North Texas according to its Chamber of Commerce. It apart of Denton County, Texas and is a suburb of Dallas. The Colony is easily accessible as it is OVERVIEW LOCATION just a 15 minute drive to D/FW International Airport and a 25 minute drive to Dallas Love Field Airport and to Downtown Dallas. The Colony as been awarded Top 10 Most Affordable Homes in the US and Top 20 Best Places to Live in the U.S. by CNN/ Money Magazine. TRAFFIC COUNTS Hwy 121 & Josey Ln. 98,419 VPD Hwy 121 & Market St. 93,686 VPD Hwy 121 & Castle Hills Dr. 101,468 VPD Surrounding Retail + MANY MORE! SUBJECT PROPERTY PHOTOS PROPERTY SUBJECT SUBJECT PROPERTY PHOTO PAGE SITE The Home Depot AERIAL LOCATION OVERVIEW SITE TRADELOCATION AREA AERIAL OVERVIEW MAP LOCATIONDEMOGRAPHICS OVERVIEW LOCATION OVERVIEW LOCATION DEMOGRAPHICS POPULATION Population 1 - Mile 3 - Miles 5 - Miles The estimated 2017 population within a 5 mile radius from the Est. 2017 294 2,386 11,916 subject property is 11,916 with an estimated 3,315 households. The projected current population is made up of 50.2% males Proj. 2022 329 2,679 13,159 and 49.8% females. The median age is 37.2. % Increase 2.4% 2.5% 2.1% 2017 AVERAGE HOUSEHOLD INCOME Household Income 1 - Mile 3 - Miles 5 - Miles The estimated average household income within a one mile ra- Est. 2017 $93,944 $89,668 $89,277 dius from this property for 2017 is $127,755 with an estimated Proj. 2022 $127,755 $117,966 $112,103 7.2% increase between now and 2022. The current per capita income is estimated at $33,328 and is expected to go up by % Increase 7.2% 6.3% 5.1% 7.2% by 2022. TOP EMPLOYERS IN DENTON COUNTY Employment Employers # of Employees The estimated 2017 labor force within a 5 mile radius is made Peterbilt Motors 2,314 up of 168,454 people over age 16 with 101,597 businesses. Texas Health Presbyterian Hospital 1,076 74.7% of the work force are white collar workers. The average Denton Regional Medical Center 950 travel time to work is 26.3 minutes. Sally Beauty Company, Inc. 950 Information About Brokerage Services Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. Colliers International A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker Houston, Inc. 29114 [email protected] (713) 222-2111 represents): __________________________ ______ ______________________ ________________ • Put the interests of the client above all other, including the broker’s own interest; Licensed Broker/Broker Firm Name License No. Email Phone • Inform the client of any material information about the property or transaction received by the broker; or Primary Assumed Business Name • Answer the client’s questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent Gary Mabray (713) 830-2104 through an agreement with the owner, usually in a written listing to sell or property management agreement. __________________________ 13______8207 [email protected]______________________ ________________ An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed Designated Broker of Firm License No. Email Phone to the agent or subagent by the buyer or buyer’s agent/ AS AGENT FOR BUYER/TENANT: The broker becomes the buyers/tenant’s agent by agreeing to represent the buyer, usually though a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent. __________________________Patrick Duffy 60______4308 [email protected] ________________(713) 830-2112 AS AGENT FOR BOTH – INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who Licensed Supervisor of Sales License No. Email Phone will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an Agent/Associate intermediary. A broker who acts as an intermediary: • Must treat all parties to the transaction impartially and fairly; • May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinion and advice to, and carry out the instructions of each party to the transaction. • Must not, unless specifically authorized in writing to do so by the party, disclose: • That the owner will accept a price less than the written asking price; Edward Archer Benton 557247 [email protected] (713) 830-2198 • That the buyer/tenant will pay a price greater than the price submitted in a written offer; __________________________ ______ ______________________ ________________ and Sales Agent/Associate’s Name License No.