Hat Creek Burger Company Currently Operates 25+ Locations Throughout Texas with Aggressive Expansion Plans for the Near Future
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7617 N LOOP 1604 E Live Oak, TX 78233 ™ 1 | 3 INVESTMENT HIGHLIGHTS 7 FINANCIAL OVERVIEW 10 TENANT OVERVIEW 11 AREA OVERVIEW LISTING AGENTS CHAD KURZ JOSH BISHOP EVP & MANAGING DIRECTOR VP & DIRECTOR DIR: 214.692.2927 DIR: 214.692.2289 MOB: 562.480.2937 MOB: 315.730.6228 [email protected] [email protected] LIC # 01911198 (CA) LIC # 688810 (TX) KYLE MATTHEWS BROKER OF RECORD LIC # 9005919 (TX) INVESTMENT HIGHLIGHTS LEASE AND LOCATION • 20-Year Sale-Leaseback commencing at the close of escrow • Absolute NNN Lease with zero management responsibilities • Annual 1.50% rent increases; Average cap rate of 7.52% over the base term of the lease • Corporate guarantee from Hat Creek • Brand new construction completed in April 2020 • Explosive population growth of 10% over the next 5-years • Average household income exceeds $87K annually • 5-mile population of 216,975 residents • Located off of Anderson Loop which sees more than 107,000 vehicles daily • San Antonio is the seventh most populous city in the United States and second-most populous city in Texas TENANT • Hat Creek Burger Company currently operates 25+ locations throughout Texas with aggressive expansion plans for the near future • All Hat Creek locations are owned and operated by corporate allowing for higher profitability compared to franchisee stores, which pay royalties • The average store sales for Hat Creek exceed other well-known QSR’s such as In-N-Out, Burger King, Chipotle, Starbucks, Jack in the Box, Wendy’s, and Taco Bell • The owners of Hat Creek are well versed in the restaurant space and have decades of operating experience (see agent for more details) • Hat Creek handpicks each of their locations and targets major MSA’s with a high average household income 3 | NE VILLAS AT MIRA LOMA NEW MULTIFAMILY DEVELOPMENT | 4 ROLLING OAKS MALL NW NEW DEVELOPMENT NEW MULTIFAMILY DEVELOPMENT ANDERSON LOOP ± 107,200 VPD RETAIL UNDER CONSTRUCTION 5 | SE NEW DEVELOPMENT ANDERSON LOOP ± 107,200 VPD | 6 FINANCIAL OVERVIEW PROPERTY SUMMARY TENANT SUMMARY Tenant Trade Name Hat Creek Burger Inc. Price $3,707,692 Type of Ownership Fee Simple Cap Rate 6.50% Lease Guarantor Corporate Lease Type NNN Increases 1.50% Annually Roof and Structure Tenant Responsible Original Lease Term 20 Years Year Built 2020 Rent Commencement Close of Escrow Total GLA ± 3,362 SF Lease Expiration Date 20 Years Increases 1.5% Annually Lot Size ± 45,132 SF Options Four (4), Five (5) Year Options 7 | ± 12 MILES | 8 FINANCIAL OVERVIEW Annualized Operating Data MONTHLY RENT ANNUAL RENT CAP RATE MONTHLY RENT ANNUAL RENT CAP RATE Year 1 $20,083.33 $241,000 6.50% Year 11 $23,307.53 $279,690 7.54% Year 2 $20,384.58 $244,615 6.60% Year 12 $23,657.14 $283,886 7.66% Year 3 $20,690.35 $248,284 6.70% Year 13 $24,012.00 $288,144 7.77% Year 4 $21,000.71 $252,008 6.80% Year 14 $24,372.18 $292,466 7.89% Year 5 $21,315.72 $255,789 6.90% Year 15 $24,737.76 $296,853 8.01% Year 6 $21,635.45 $259,625 7.00% Year 16 $25,108.83 $301,306 8.13% Year 7 $21,959.99 $263,520 7.11% Year 17 $25,485.46 $305,826 8.25% Year 8 $22,289.39 $267,473 7.21% Year 18 $25,867.74 $310,413 8.37% Year 9 $22,623.73 $271,485 7.32% Year 19 $26,255.76 $315,069 8.50% Year 10 $22,963.08 $275,557 7.43% Year 20 $26,649.59 $319,795 8.63% AVERAGE 7.52% DEBT QUOTE Please contact a Barrington Capital agent for financing options: Kevin Puder [email protected] 9 | TENANT OVERVIEW Tenant Overview Hat Creek Burger Company is a dream of founder Drew Gressett that started in 2008. Giving it his everything, he opened a food trailer serving up amazing burgers, fries, and shakes. The rest is history! Austin didn’t draw the short straw with food trucks and trailers, but the desire to serve mouthwatering perfection and never cut corners quickly set Hat Creek apart from the crowd. It’s all about simplicity. Fresh, never frozen beef served on freshly baked buns with fresh veggies. Over time additional items were added to the menu to satisfy the whole family as well as homemade sauces to top everything off. After serving thousands of burgers from the beloved food trailer, Hat Creek moved into the legendary Burnet Road location to bring delicious foodstuffs to the masses. Soon enough, Hat Creek was catering events all over town, and in 2011 opened the flagship location in West Lake Hills. Now, with three children, Drew’s focus on quality and serving the whole family was taken to the next level. Friendly and helpful service became the top priority (second only to food quality), play yards were added, and the fast-casual, family-friendly burger patio was born. The mission is to provide fellowship and fresh cheeseburgers to all who come in contact with Hat Creek, and the goal is to become the best fast-casual, family- friendly restaurant in the country. Hat Creek has an entire team of professionals dedicated to making customers’ visit the best it can possibly be. As the company grows, these three things will never change: Hat Creek will always be a place for good food, good friends, and good fun. It’s that simple. | 10 Area Overview LIVE OAK, TX DEMOGRAPHICS POPULATION 1-MILE 3-MILE 5-MILE In 1960 the intersection of Loop 1604 and Interstate 35 was considered 2025 Projection 9,750 91,296 233,982 to be the center of the city of Live Oak. Live Oak was founded amid gently rolling hills in an area of rich farming and ranching. Live Oak 2020 Estimate 8,861 84,361 216,975 evolved into a peaceful residential area with shopping centers, major 2010 Census 6,039 67,874 183,094 medical complexes and hospitals, college campuses, and financial Growth 2020 to 2025 10.03% 8.22% 7.84% institutions. Live Oak’s population is 15,335 people. Since 2010, it has Growth 2010 to 2020 46.73% 24.29% 18.50% had a population growth of 23.4%. Live Oak has seen the job market HOUSEHOLDS 1-MILE 3-MILE 5-MILE increase by 1.6% over the last year. Future job growth over the next ten 2025 Projection 3,646 34,157 85,466 years is predicted to be 39.6%, which is higher than the US average of 2020 Estimate 3,308 31,549 79,214 33.5%. 2010 Census 2,304 25,435 66,928 Growth 2020 to 2025 10.22% 8.27% 7.89% Live Oak is in Bexar County and is considered part of the San Antonio Growth 2010 to 2020 43.58% 24.04% 18.36% Metropolitan Area. Many of the residents have lived in Live Oaks for over 10 years. INCOME 1-MILE 3-MILE 5-MILE 2020 Average $87,956 $81,753 $82,414 Household Income SAN ANTONIO, TX San Antonio, officially the City of San Antonio, is the seventh most populous city in the United States and the second-most populous city in both Texas and the Southern United States. Straddling the regional divide between South and Central Texas, San Antonio anchors the southwestern corner of an urban megaregion colloquially known as the “Texas Triangle”. San Antonio is the center of the San Antonio–New Braunfels metropolitan statistical area. Commonly called Greater San Antonio, the metro area has a population of 2,473,974 based on the 2017 U.S. census estimate, making it the 24th-largest metropolitan area in the United States and third- largest in Texas. Growth along the Interstate 35 and Interstate 10 corridors to the north, west, and east make it likely that the metropolitan area will continue to expand. ECONOMY The City of San Antonio maintains a strong financial position with a “AAA” general obligation bond rating from all three major rating agencies. The Milken Institute has ranked San Antonio No. 1 on its Best-Performing Cities list. As the seventh-largest city in the United States, San Antonio is experiencing solid economic growth in 21st-century industries such as bioscience and healthcare, aerospace, IT and cybersecurity, and green technologies. Biotech companies and healthcare systems in San Antonio contribute billions to the local economy. The Aerospace industry remains a dominant economic strength in San Antonio with the presence of several aviation and aerospace corporations, including the military. The military has had a significant relationship with San Antonio for more than 200 years and is home to several military commands. The city is also a cybersecurity hub; nationally recognized as a leader in the field of information security. San Antonio is positioning itself to be at the forefront of the New Energy Economy in the United States, committed to investing and creating employment opportunities in green industries. The economy has remained steady and prosperous by successfully attracting new businesses and helping existing companies grow. The city has focused on creating new employment opportunities in 21st-century industries, maintaining a great quality of life, and facilitating business growth at the local and international levels. 3RD 6 LARGEST CITY FORTUNE 500 IN TEXAS COMPANIES 2.4 3 MAJOR MILLION PEOPLE SPORTS TEAMS | 12 12 | SAN ANTONIO CULTURE San Antonio is a popular tourist destination. The Alamo Mission in San “Museum Reach” beginning in Brackenridge Park through downtown, Antonio (“The Alamo”), located in Downtown, is Texas’ top tourist attraction.