Burger King 5914 Ogeechee Rd Savannah GA
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Representative Photo OFFERING MEMORANDUM Burger King ™ 5918 Ogeechee Road | Savannah, GA Offering Memorandum | 1 ™ Representative Photo 2 | Burger King | Savannah | GA Representative Photo contents 04 EXECUTIVE SUMMARY 06 financial OVERVIEW 08 tenant overview 12 area OVERVIEW exclusively listed by GARY CHou FVP & Senior Director [email protected] DIR (310) 919-5827 MOB (714) 928-8016 LIC # 01911222 (CA) kevin chang Associate [email protected] DIR (310) 919-5828 MOB (951) 616-8918 LIC # 01976724 (CA) KYLE MATTHEWS BROKER OF RECORD LIC # 67120 Offering Memorandum | 3 Investment Highlights LONG-TERM, WORRY-FREE INVESTMENT • Brand New Development! – This store was built in 2017 and showcases the latest Burger King prototype • Long Term Lease – Brand new 20-year lease with Four (4), 5-Year options • Absolute NNN Lease – Tenant takes care of all landlord responsibilities including tax, insurance, maintenance, roof and structure • Growing Cash Flow – There are 7.50% increases every 5 years – Excellent hedge against inflation! EXCELLENT TENANT WITH STRONG GUARANTEE • Nationally Recognized Operator – Premier Kings was named Franchise of the Year in 2015 for all Burger King operations in North America. It has also received multiple awards for being the Southeast Operator of the Year and recently won the Marketing Excellence award as well! • High Growth Operator – Established in 2011, Premier Kings currently owns and operates over 130 units with annual revenues exceeding $140M annually • Strong Guarantee – Over 55 units with a long history of successful operations back the lease STRONG REAL ESTATE FUNDAMENTALS • Strong Corridor of National Tenants – Nearby tenants include Walmart Supercenter, Zaxby’s, Dunkin’ Donuts, Wendy’s, GNC, IHOP, McDonald’s, Cracker Barrel, Dollar Tree, Hampton Inn, Perkins, La Quinta Inn, Quality Inn, Red Roof Inn, Applebee’s, Hooters, Waffle House, Subway, Motel 6, and Best Western, among others • Strong Traffic Counts – Ogeechee Rd supports over 16,000 VPD and Abercorn St supports over 22,000 VPD • Outstanding Population Growth – 21.89% growth from 2010-2017 and projected 7.21% growth from 2017-2022 in a 1-mile radius with comparable numbers in a 3-mile and 5-mile radius 4 | Burger King | Savannah | GA Representative Photo Offering Memorandum | 5 Representative Photo financial overview6 | Burger King | Savannah | GA Representative Photo Burger King 5918 Ogeechee Road Savannah, GA 31419 List Price ...............................................................................................$2,545,000 CAP Rate - Current ....................................................................................... 5.50% Gross Leasable Area ............................................................................± 3,410 SF Lot Size ...............................................................................................± 0.69 Acres Year Built ............................................................................................................ 2017 Annualized Operating Data Monthly Rent Annual Rent Cap Rate Current $11,666.67 $140,000 5.50% Rent Period 2 $12,541.67 $150,500 5.91% Rent Period 3 $13,482.29 $161,788 6.35% Rent Period 4 $14,493.46 $173,922 6.83% Option 1 $15,580.47 $186,966 7.34% Option 2 $16,749.01 $200,988 7.89% Option 3 $18,005.18 $216,062 8.49% Option 4 $19,355.57 $232,267 9.12% Tenant Summary Tenant Trade Name Burger King Type of Ownership Fee Simple Lease Guarantor Premier Kings Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 20 Years Rent Commencement Date 12/10/2017 Lease Expiration Date 12/09/2037 Term Remaining on Lease ± 20 Years Increases 7.5% Increases in Options Options Four, 5-Year Options Offering Memorandum | 7 Representative Photo tenant overview8 | Burger King | Savannah | GA Property Name Burger King Parent Company Trade Name Restaurant Brands International, Inc. (NYSE: QSR) Ownership Public Credit Rating (Standard & Poor’s) B+ Revenue $1.15 B Net Income $233.70 M No. of Locations ± 15,000 No. of Employees ± 34,248 Headquartered Miami, FL Website www.bk.com Year Founded 1953 TENANT OVERVIEW Burger King Worldwide operates the world’s #3 hamburger chain by sales with almost 15,000 restaurants in the US and more than 100 other countries. In addition to its popular Whopper sandwich, the chain offers a selection of burgers, chicken sandwiches, salads, and breakfast items, along with beverages, desserts, and sides. Many of the eateries are stand-alone locations offering dine-in seating and drive-through services; the chain also includes units in high-traffic locations such as airports and shopping malls. Burger King Worldwide is owned and operated by Restaurant Brands International. GEOGRAPHIC OUTREACH Burger King has restaurant locations throughout the US and more than 100 other countries. The US and Canada are responsible for about 65% of revenues. Like most other giants of the fast-food industry, Burger King has expanded its nationwide and international presence primarily through franchising. But the company has reduced its domestic expansion efforts recently. Burger King has used joint ventures to expand in countries like China, Mexico, Russia, and Singapore. Offering Memorandum | 9 parcel map the offering Property Name Burger King 5918 Ogeechee Road Property Address Savannah, GA 31419 Assessor’s Parcel Number 1-1029-04-054 Oceanside Blvd ± 31,792 Site Description Number of Stories One Year Built 2017 Gross Leasable Area (GLA) ± 3,410 SF Lot Size ± 0.69 Acres (30,056 SF) Type of Ownership NNN College Blvd ± 40,116 ± Blvd College Landscaping Professional Topography Generally Level Ogeechee Rd ± 25,000 ADT 10 | Burger King | Savannah | GA TENANT MAP Offering Memorandum | 11 area overview Savannah, GA Savannah is a historic and sophisticated city on a coastal plain in Georgia a few miles inland from the Atlantic that is known for its Southern charm and coastal lifestyle. Its well-preserved Historic District is the core of the city, abuzz with creativity, art, culture and live theatre. Integrated with innovative urban design in a pedestrian- friendly layout, Savannah’s park-like Historic District tells the story of the city’s past with an added modern punch of high-style boutiques, galleries, and restaurants. With a myriad of activities for recreation and its lively atmosphere, Savannah attracts over 13.4 million annual visitors. It is a Southern escape that can be enjoyed any time of year, beguiling visitors with Old World glamour and romance. Property demographics POPULATION 1-Mile 3-Mile 5-Mile HOUSEHOLDS 1-Mile 3-Mile 5-Mile 2022 Projection 1,980 31,537 45,870 2022 Projection 759 12,068 17,387 2017 Estimate 1,818 28,461 41,468 2017 Estimate 688 10,932 15,776 2010 Census 1,570 23,768 34,684 Growth 2017 - 2022 10.32% 10.39% 10.21% Growth 2017 - 2022 8.91% 10.81% 10.62% INCOME 1-Mile 3-Mile 5-Mile 2017 Est. Average Household Growth 2010 - 2017 15.80% 19.75% 19.56% $68,103 $73,591 $80,820 Income 12 | Burger King | Savannah | GA ECONOMIC SNAPSHOT Historically, Savannah’s port facilities have been a primary economic driver for the area. Today, it is an industrial center and an important Atlantic seaport. The local economy is diverse in its major economic sectors of manufacturing, small business, tourism, military shipping from the port, higher education and large-scale healthcare and eldercare providers. The area also has some aerospace and general industry as well. Since the early 21st century, the tourism industry has dramatically boomed, stimulating the ongoing development of new hotels, restaurants, and shops. Economic growth in Savannah can be attributed to many hospitality entities throughout the city. Offering Memorandum | 13 TYBEE ISLAND Also known as Savannah Beach, Tybee Island is a barrier island just a twenty-minute drive through Savannah’s coastal marshes. Easily accessible from the city, this barrier island is famous for its assorted cuisine, exceptional accommodations, and abundance of outdoor recreational activities. Visitors can explore Tybee Island’s three miles of uninterrupted public beach and take in the surrounding natural beauty or even go deep sea fishing on a private charter. It is a place where time slows down, where deep, blue waters, sandy beaches, and friendly locals make for the perfect getaway. Hilton head island, South Carolina Northeast of Savannah, Hilton Head is a paradise nestled along the South Carolina coast. This resort town in South Carolina’s Lowcountry region is the primary city within the Hilton Head Island-Bluffton-Beaufort metropolitan area. Offering twelve miles of pristine beaches and twenty- four world-class golf courses, Hilton Head has all the makings for the ultimate retreat. An array of outdoor excursions has earned Hilton Head recognition as one of the top 10 family beaches in the country. From inshore and offshore fishing charters to kayaking and parasailing, there are many opportunities to take advantage of the island’s location all year-round. Culturally-inclined visitors can enjoy Hilton Head’s exceptional cultural amenities that celebrate the area’s heritage such as the Arts Center of Coastal Carolina, the Hilton Head Symphony Orchestra, and the Coastal Discovery Museum. The city also hosts the Heritage Golf Classic, a PGA Tour tournament, and an annual tented wine tasting event. 14 | Burger King | Savannah | GA getting around SAVANNAH/HILTON HEAD INTERNATIONAL AIRPORT West of Savannah, Savannah/Hilton Head International Airport is located off Interstate 95 and serves as the chief