Red Lobster - Absolute NNN 7401 Rogers Avenue | Fort Smith, Arkansas 72903
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Red Lobster - Absolute NNN 7401 Rogers Avenue | Fort Smith, Arkansas 72903 100% OCCUPIED OFFERING MEMORANDUM SINGLE TENANT SAGEPARTNERS.COM THE OFFERING TOTAL PURCHASE PRICE $7,000,000 TENANT Red Lobster Restaurants, LLC CAP RATE 6.15% Corporate Guaranty | 704 Locations in the NET OPERATING INCOME $431,187 US & Canada LEASE TYPE Absolute NNN Lease GUARANTOR Red Lobster Intermediate Holdings, LLC LEASE TERM 25 years ADDRESS 7401 Rogers Avenue, Fort Smith, Arkansas 72903 LEASE TERM REMAINING 18.5 +/- years FACILITY TYPE Single Tenant LEASE EXPIRATION 12/31/2039 YEAR OPENED 1980 RENT INCREASES 2.00% Annually YEAR RENOVATED 2014 RENEWAL OPTIONS Four (4), Five (5) Year Options LOCATION Fort Smith, AR is located in Northwest Arkan- RENTAL INCREASES IN OPTIONS 2.00% Annually sas. It is also the principal city in the Fort Smith, BUILDING SIZE 7,886 +/- SF AR-Oklahoma MSA. The city is home to large STORIES One manufacturing plants, several medical centers, SITE AREA 2.10 +/- acres and the University of Arkansas at Fort Smith. OCCUPANCY 100% BUILDING SIZE ±7,886 SF LAND AREA ±2.10 acres Sale Price: $7,000,000 Cap Rate: 6.15% Information deemed reliable but not guaranteed. FINANCIAL OVERVIEW INVESTMENT SUMMARY ANNUALIZED OPERATING DATA 1 Cushman & Wakefield/Sage Partners is pleased to present the exclusive listing Current Annual Rent $431,187 for a Red Lobster property located in Fort Smith, Arkansas. The property Base Term Rental Escalations 2.00% Annually consists of 7,886 square feet of building space and is situated on approximately 2.10 acres of land. The property is subject to a 25 year Absolute Triple Net 1 NOI based on August 2021 Rental Increase (NNN) lease with 18.5 +/- years remaining on the base term. The current rent RENT SCHEDULE is $431,187 and will continue to increase by 2.00% annually. The increases will LEASE YEAR ANNUAL RENT MONTHLY RENT continue through the four, five-year tenant renewal options. Year 8 $431,187 $35,932 Year 9 $439,811 $36,651 CAP RATE 6.15% Year 10 $448,607 $37,384 Year 11 $457,579 $38,132 PURCHASE PRICE $7,000,000 Year 12 $466,731 $38,894 Year 13 $476,065 $39,672 Year 14 $485,587 $40,466 Year 15 $495,298 $41,275 Year 16 $505,204 $42,100 Year 17 $515,308 $42,942 Year 18 $525,615 $43,801 Year 19 $536,127 $44,677 Year 20 $546,849 $45,571 Year 21 $557,786 $46,482 Year 22 $568,942 $47,412 Year 23 $580,321 $48,360 Year 24 $591,927 $49,327 Year 25 $603,766 $50,314 Information deemed reliable but not guaranteed. OFFERING MEMORANDUM 3 SITE OUTLINE S 74TH STREET ROGERS AVENUE OFFERING MEMORANDUM 4 TENANT PROFILE THE STORY OF RED LOBSTER® Before there was Red Lobster, there was Bill Darden, a man pas- sionate about making delicious, high-quality seafood available and affordable to everyone, including people who lived far from the coast and regardless of race, gender, religion or economic means. What was once a single, family-owned restaurant in Lake- land, Florida, now has over 700 locations around the world. A Lifelong Commitment Red Lobster has been committed to seafood sustainability since we first opened our doors in 1968. As a founding mem- TRACEABLE ber of the Global Aquaculture Alliance (GAA) in 1997, we helped establish guidelines for best practices and aquaculture certi- All our seafood is 100% traceable to a fications. We’re also proud to have spent decades building per- sonal relationships with suppliers who share our values. known and trusted source TRACEABLE, SUSTAINABLE, RESPONSIBLE SOURCING Wild-Caught + Farm-Raised Seafood SUSTAINABLE Why Wild-Caught? Sustainable – we only source from suppliers Catching in the wild provides a variety of great seafood. who follow industry best practices We strive to work with fishermen who share our commit- ment to sustainability, ensuring that wild fish and shell- fish populations remain healthy and thriving. Why Farm-Raised? RESPONSIBLE Responsible farming allows us to provide high-quali- Responsible – we support and follow regulatory ty seafood year-round. A mindful combination of wild- caught and farm-raised seafood helps avoid depleting efforts that manage fish populations and wild populations to keep marine ecosystems healthy. mandate our suppliers comply with all applicable laws Information deemed reliable but not guaranteed. OFFERING MEMORANDUM 5 TENANT PROFILE OVER 700 LEADERSHIP LOCATIONS KIM LOPDRUP TOM GATHERS HORACE G. DAWSON III Chief Executive Officer Chief Operating Officer EVP, General Counsel CORE VALUES RESPECT INTEGRITY GENUINE CARING HOSPITALITY TEAMWORK EXCELLENCE CRAIG POMMELLS NELSON GRIFFIN FUN EVP, Chief Financial EVP, Chief Procurement Officer and Real Estate Officer 2021 – Recognized by Newsweek – America’s Best Loyalty Programs 2021 2017 – Recognized by Nation’s Restaurant News- Ranked Top Restaurant Brand Among Ages 18-24 2016 – Recognized by Nation’s Restaurant News- Ranked Top Full-Service Restaurant for True Loyalty 2020: The Best Employers for Diversity 2019: America’s Most Reputable Companies 2019: America’s Best Large Employers Information deemed reliable but not guaranteed. OFFERING MEMORANDUM 6 HISTORY OF RED LOBSTER 1968 FRESH SEAFOOD FOR EVERYONE 2008 GET FIRED UP Bill Darden opens the first Red Lobster in Lakeland, Florida. We bring wood-fire grills into our kitchens and train Certified Grill Masters to let the natural flavors of our seafood take center stage. 1970 BUSINESS BOOMS Red Lobster catches the attention of General Mills. Backed by their resources, 2010 A MAINE MAKEOVER Red Lobster restaurants rapidly multiply from coast to coast. Our restaurants begin to transform inside and out to a new design and décor, inspired by the historic fishing village of Bar Harbor, Maine. 1974 SHRIMP BECOMES SNACK-WORTHY Red Lobster debuts Popcorn Shrimp. People go crazy for it, and rightfully so. 2014 WE CELEBRATE OUR INDEPENDENCE We begin charting a new course as an independent company. 1979 FOR THE SEAFOOD LOVER IN YOU® We launch our first of many iconic advertising campaigns, including Life on 2015 A TASTE OF INNOVATION Land is DryTM, Go OverboardTM and Sea Food DifferentlyTM. As part of our commitment to keeping our menu fresh and our guests happy, we introduce sustainable, wild-caught selections like Sockeye salmon, as well 1983 O CANADA as bigger and better shrimp options. We open our first Canadian restaurant in Ontario. 2017 REWARDING OUR LOYAL GUESTS 1984 LOBSTER LOVERS, REJOICE The My Red Lobster Rewards program is born, rewarding guests for doing We have our first Lobsterfest — and a Valentine’s Day tradition is born. what they already love to do – enjoy delicious seafood at Red Lobster. 1992 BEHOLD BISCUIT MANIA 2018 PARTNERING TO SET SEAFOOD STANDARDS Cheesy garlic goodness comes together to create our legendary Cheddar We unveil our Seafood with Standards commitments and engage in part- Bay Biscuits™. nerships to help drive continuous improvement within our supply chain. We also become the first large casual dining restaurant company to make a 1995 RED LOBSTER CHARTS A NEW COURSE commitment to eliminate plastic straws from our restaurants, promising to General Mills spins-off its restaurant division as Darden Restaurants, Inc. begin replacing plastic straws with an eco-friendly alternative straw by the end of 2020. 1999 TAKING CARE OF OUR OWN We establish an Employee Emergency Assistance Fund, now called RL Cares, 2019 WORKING TO PROTECT AND PRESERVE OUR OCEANS to help fellow employees facing financial hardship. Through a partnership with Ocean Conservancy®, a leading ocean conser- vation nonprofit, we have focused on two programs: The Global Ghost Gear 2003 FEEDING THE HUNGRY Initiative, which focuses on driving solutions to the problem of lost and We start donating unused food to local food banks and homeless shelters abandoned fishing gear, and the Trash Free Seas Alliance®, which unites through a program we now call RL Shares. Since its launch, we’ve donated leaders to mitigate plastic waste entering the oceans. about 20 million meals. 2021 CELEBRATING OUR EMPLOYEES AND OUR GUESTS 2004 LOVE AT FIRST SHRIMP We are recognized on the Forbes list of America’s Best Large Employers Our Endless ShrimpTM event launches and it’s a huge success. 2021, and our My Red Lobster Rewards Program is named to Newsweek’s list of America’s Best Loyalty Programs 2021. 2006 BRING ON THE FRESHNESS “Today’s Fresh Fish” menu makes its debut, bringing fresh, regional seafood to Red Lobsters everywhere. Information deemed reliable but not guaranteed. OFFERING MEMORANDUM 7 AERIAL 38,000 VPD S 74TH STREET Stone Village Shopping Center ROGERS AVENUE OFFERING MEMORANDUM 8 FORT SMITH, AR 2ND LARGEST CITY IN ARKANSAS 2nd Fort Smith, AR is located in Northwest Arkansas. It is one of two cities that make up the county Largest city in Arkansas seat of Sebastian County. It is also the principal city in the Fort Smith, AR-Oklahoma MSA, which encompasses Crawford, Franklin, Sebastian, Le Flore and Sequoyah counties. The city is home to large manufacturing plants, several medical centers, and the University of Arkansas at 283,000+ Fort Smith. Located along the Arkansas River, the area celebrates its wild west history and offers several museums and annual festivals. The MSA population totals 283,000+ people. Fort Smith MSA population DOWNTOWN FORT SMITH OFFERING MEMORANDUM 9 FORT SMITH, AR ECONOMY THE UNIVERSITY OF ARKANSAS - FORT SMITH Thousands of residents in Fort Smith are employed in the manufacturing, trucking, food-processing, medical and higher education sectors. The total number of employees in the Fort Smith MSA is over 117,000 residents. The area is an important hub for shopping and consumers and is home to ABB, as well as, Hiram Walker’s blending and bottling facility. Mercy Fort Smith and Baptist Health are two medical centers in the area that employee over 4,700 residents.