Ruby Chow's Investment Offering
RUBY CHOW'S 10-YEAR NNN LEASE
5755 North Point Parkway, Suite 262 620 Glen Iris Drive, Atlanta, GA Alpharetta, GA 30022 770.481.1960 www.shanegroup.net
Located nearby these exciting developments...
Ponce City Market Krog Street Market Atlanta Beltline (Ponce City in background) Ford Factory Lofts & Kroger RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
This offering is a new, chef-driven concept by famed restaurateur and chef Guy Wong. This will be his fourth restaurant: Ruby Chow's. Wong has executed a new 10-year NNN lease directly adjacent to the popular 2.1MM-square-foot Ponce City Market in
INVESTMENT SUMMARY Atlanta, GA. The lease has 3% annual increases and potential upside through percentage rent with a very achievable breakpoint. Rent is set at a conservative $30 PSF NNN in comparison to area rents that average $40 PSF NNN and higher, in a market with a AERIAL MAPS 2.2% vacancy. Ruby Chow’s is located in a 3,179-square-foot retail condo unit at the corner of Glen Iris Drive and North Avenue
PONCE CITY MARKET and is currently being built-out to open shortly.
AREA DEVELOPMENT
PHOTOGRAPHS New Chef-Driven Concept by Famed Chef Guy Wong
TENANT INFO New 10-Year NNN Lease with 3% Annual Increases Directly Adjacent to 2.1MM SF Ponce City Market RENTAL SURVEY Potential for Percentage Rent; Achievable Breakpoint FINANCIAL SUMMARY Multiple Large Re-Developments in the Area; Over $1B CASH FLOW Recently Constructed, Planned, and Under Construction LEASE ABSTRACT $30 PSF Rent in a $40 PSF Market with Only 2% Vacancy
LOCATION MAPS
DEMOGRAPHICS
BUILDING: 3,179 SF | LAND: Retail Condo
Ruby Chow’s is located directly east of downtown Atlanta, adjacent to the 2.1MM-square-foot Ponce City Market. It is within walking distance to the Atlanta Beltline and will benefit from a tremendous population base. There are over 166,000 people within 3 miles and over 384,000 within 5 miles. Additionally, there is a daytime population of over 318,000 within 3 miles. The area is also very affluent with an average household income from $85,000 to over $96,000. There are many nearby Atlanta landmarks downtown, including Georgia Tech, Georgia State University, Mercedes Benz Stadium (home to the Atlanta Falcons and Atlanta United), Philips Arena (home to the Atlanta Hawks), the Georgia Aquarium, the World of Coca-Cola, the College Football Hall of Fame, the Georgia World Congress Center, and the Fox Theatre among many others.
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
INVESTMENT SUMMARY
AERIAL MAPS
PONCE CITY MARKET Multiple Retail Properties
AREA DEVELOPMENT $30-47/SF NNN Rent
PHOTOGRAPHS
TENANT INFO
RENTAL SURVEY Ford Factory FINANCIAL SUMMARY Lofts
CASH FLOW 360,000 SF Mixed Use LEASE ABSTRACT
LOCATION MAPS
DEMOGRAPHICS
2.1 Million SF Mixed Use
North Avenue
$750M “Iconic” Office Hotel Retail (Planned)
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
Atlantic Station INVESTMENT SUMMARY
AERIAL MAPS Piedmont Park PONCE CITY MARKET Midtown Atlanta Virginia Highlands AREA DEVELOPMENT
PHOTOGRAPHS
TENANT INFO
RENTAL SURVEY
FINANCIAL SUMMARY
CASH FLOW
LEASE ABSTRACT
LOCATION MAPS Historic Fourth Ward DEMOGRAPHICS
Inman Park
Downtown Atlanta 3 Mile Radius 166,486 Population $96,813 Avg HH Income
318,162 Daytime Population
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
INVESTMENT SUMMARY Located directly adjacent to Ruby AERIAL MAPS Chow’s, Ponce City Market began to open in 2014, located in the fully PONCE CITY MARKET renovated Sears, Roebuck & Company AREA DEVELOPMENT building. The project is over 2.1MM SF and restored its prominence as a vital PHOTOGRAPHS landmark in Atlanta’s burgeoning Old TENANT INFO Fourth Ward. Linked directly to the Atlanta BeltLine, and situated across RENTAL SURVEY from Historic Fourth Ward Park, the FINANCIAL SUMMARY iconic stretch of Ponce de Leon Avenue is a major part of the redevelopment CASH FLOW movement at the crossroads of LEASE ABSTRACT Atlanta’s most established neighborhoods. At the heart of Ponce LOCATION MAPS City Market is the marketplace itself, a DEMOGRAPHICS flexible space to gather, eat and shop. In the Central Food Hall, artisan chefs and local purveyors fill an authentic market with the design, food, and flavors of Atlanta. Retail shops and offices add to the life, color, and culture of Ponce City Market and surrounding neighborhoods. Residents of the Flats apartments in the upper floors of the east and west wings are just a few steps or an elevator ride from workplaces, shopping, the Central Food Hall, and direct access to the BeltLine.
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
Ruby Chow’s is located near many other developments, including:
INVESTMENT SUMMARY MIDTOWN PLACE: Approximately 250,000-square-foot shopping center. Anchored by Whole Foods, Home Depot, PetSmart, AERIAL MAPS and TJ Maxx. Midtown Place also contains over 36,000 square feet of shop space offering a well-balanced mix of retail, service and restaurant uses. PONCE CITY MARKET THE BELTLINE: The Atlanta BeltLine is the most comprehensive transportation and economic development effort ever AREA DEVELOPMENT undertaken in the City of Atlanta and among the largest, most wide-ranging urban redevelopment programs currently underway in PHOTOGRAPHS the United States. It will ultimately connect 45 intown neighborhoods via a 22-mile loop of multi-use trails, modern streetcar, and parks—all based on railroad corridors that formerly encircled Atlanta. The plan includes a 22-mile transit system, 33-mile trail TENANT INFO network, 1,300 acres of new and 700 acres of restored greenspace, public art, historic preservation, 28,000 new and 5,600 RENTAL SURVEY affordable housing units, 30,000 permanent and 48,000 construction jobs, and up to $20 Billion in total projected economic
FINANCIAL SUMMARY
CASH FLOW 725 PONCE (BELTLINE KROGER / FORD FACTORY LOFTS): $140 million mixed-used renovation completed in 2016 that includes a new 60,000-square-foot Kroger below 360,000 square feet of Class A loft office space. LEASE ABSTRACT
LOCATION MAPS KROG STREET MARKET: is a $70 million, 9-acre mixed-use development in Atlanta situated along the BeltLine. The complex, remodeled from a 1920s warehouse, is centered on a 12,000-square-foot, west coast-style market with restaurants, and up to 300 DEMOGRAPHICS apartments. It is a destination for Atlanta’s intown culture – those who are always searching for unique, specialty creations.
Krog Street Market Atlanta Beltline (Ponce City in background) Ford Factory Lofts & Kroger
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
INVESTMENT SUMMARY
AERIAL MAPS
PONCE CITY MARKET
AREA DEVELOPMENT
PHOTOGRAPHS
TENANT INFO
RENTAL SURVEY
FINANCIAL SUMMARY
CASH FLOW
LEASE ABSTRACT
LOCATION MAPS
DEMOGRAPHICS
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
INVESTMENT SUMMARY
AERIAL MAPS
PONCE CITY MARKET
AREA DEVELOPMENT
PHOTOGRAPHS
TENANT INFO
RENTAL SURVEY
FINANCIAL SUMMARY
CASH FLOW
LEASE ABSTRACT
LOCATION MAPS
DEMOGRAPHICS
Hard Corner of North Avenue and Glen Iris Drive
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
INVESTMENT SUMMARY
AERIAL MAPS
PONCE CITY MARKET
AREA DEVELOPMENT
PHOTOGRAPHS
TENANT INFO
RENTAL SURVEY
FINANCIAL SUMMARY
CASH FLOW
LEASE ABSTRACT
LOCATION MAPS
DEMOGRAPHICS
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
INVESTMENT SUMMARY
AERIAL MAPS
PONCE CITY MARKET
AREA DEVELOPMENT
PHOTOGRAPHS
TENANT INFO
RENTAL SURVEY
FINANCIAL SUMMARY
CASH FLOW
LEASE ABSTRACT
LOCATION MAPS
DEMOGRAPHICS
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
INVESTMENT SUMMARY
AERIAL MAPS
PONCE CITY MARKET
AREA DEVELOPMENT
PHOTOGRAPHS
TENANT INFO
RENTAL SURVEY
FINANCIAL SUMMARY
CASH FLOW
LEASE ABSTRACT
LOCATION MAPS
DEMOGRAPHICS
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
INVESTMENT SUMMARY
AERIAL MAPS
PONCE CITY MARKET
AREA DEVELOPMENT
PHOTOGRAPHS
TENANT INFO
RENTAL SURVEY
FINANCIAL SUMMARY
CASH FLOW
LEASE ABSTRACT
LOCATION MAPS
DEMOGRAPHICS
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
Miso Izakaya Chef Begins 2019 Announcing His New Old INVESTMENT SUMMARY
AERIAL MAPS Fourth Ward Restaurant
PONCE CITY MARKET After closing Miso Izakaya last summer, Guy Wong to open a new restaurant across from City Winery AREA DEVELOPMENT
PHOTOGRAPHS by Beth McKibben Jan 2, 2019, 7:41am EST
TENANT INFO Le Fat and Ton Ton chef Guy Wong plans to open Ruby
RENTAL SURVEY Chow’s in the Old Fourth Ward some time in 2019. The chef, who closed his pioneering Old Fourth Ward FINANCIAL SUMMARY restaurant Miso Izakaya last July, made the New Year’s CASH FLOW Day announcement on Instagram. A tipster with ties to LEASE ABSTRACT Atlanta real estate says Ruby Chow’s will take over the
LOCATION MAPS former Repast space at the Ponce Springs Lofts on Glen Iris Drive, across from Ponce City Market and City DEMOGRAPHICS Winery. That location — 620 Glen Iris Drive — is now confirmed.
Miso Izakaya debuted during a time when the Atlanta dining scene was focused on transforming the city’s reputation and that of Southern food through its new restaurants. In a 2013 interview with Creative Loafing, Wong called Miso Izakaya “an R&D lab” for continuing to “try new things.”
The decision to close his flagship restaurant after a decade on Edgewood Avenue was difficult, but the lease was ending and Wong was unable to negotiate new terms with the landlord.
Wong also owns Vietnamese restaurant Le Fat in Westside and ramen shop Ton Ton and sushi kiosk Miso Ko
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
INVESTMENT SUMMARY
AERIAL MAPS
PONCE CITY MARKET
AREA DEVELOPMENT
PHOTOGRAPHS
TENANT INFO
RENTAL SURVEY Ruby Chow’s rent is just FINANCIAL SUMMARY $30 PSF in a market CASH FLOW with average rents of LEASE ABSTRACT $40 PSF plus and LOCATION MAPS vacancy of only 2.2%! DEMOGRAPHICS
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
INVESTMENT SUMMARY Base Rent $95,370 3,179 SF @ $30.00 PSF AERIAL MAPS CAM, Taxes, Insurance $25,432 $8.00/SF
PONCE CITY MARKET Gross Rent $120,802 AREA DEVELOPMENT Less Expenses $25,432 $8.00/SF PHOTOGRAPHS ` Less Reserves $318 $.10/SF
TENANT INFO Total Expenses $25,750 RENTAL SURVEY Net Operating Income: $95,052 FINANCIAL SUMMARY
CASH FLOW LEASE: 10 Year Net Lease
LEASE ABSTRACT 3.0% Annual Increases
LOCATION MAPS Percentage Rent above 5.5% Breakpoint Landlord responsible for Structure Only DEMOGRAPHICS Landlord bills and manages operating expenses See Lease Abstract for More Information
PRICE: $1,462,340
CAP RATE: 6.50%
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
INVESTMENT SUMMARY Price Rental Income / Cash Flow AERIAL MAPS $1,462,340 $130,000 PONCE CITY MARKET New 10 Year Lease
$120,000 AREA DEVELOPMENT Year Net Income CAP PHOTOGRAPHS 1 $95,052 6.50% $110,000 TENANT INFO 2 $97,913 6.70% $100,000 RENTAL SURVEY 3 $100,870 6.90% FINANCIAL SUMMARY $90,000 4 $103,890 7.10% 1 2 3 4 5 6 7 8 9 10 CASH FLOW Years 5 $107,005 7.32% LEASE ABSTRACT
LOCATION MAPS 6 $110,216 7.54% CAP Rate Increases DEMOGRAPHICS 7 $113,522 7.76% 8 $116,924 8.00% 9.00% 9 $120,452 8.24% 8.50%
10 $124,076 8.48% 8.00%
7.50%
Average: $108,992 7.45% 7.00%
6.50%
6.00% 1 2 3 4 5 6 7 8 9 10 Years
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
Tenant Bao Restaurant Concepts, d/b/a Ruby Chow
INVESTMENT SUMMARY Building 3,179 SF Retail Condominium, Unit C-1
AERIAL MAPS Term Ten (10) Years
PONCE CITY MARKET Increases 3.0% Annual Increases
AREA DEVELOPMENT Percentage Additional rent over 5.50% breakpoint
PHOTOGRAPHS Security Deposit $10,405.93 Rent Schedule Lease Year $/SF Annual Base Rent Monthly Base Rent TENANT INFO One $30.00 $95,370 $7,947.50 RENTAL SURVEY Two $30.90 $98,231 $8,185.93 Three $31.83 $101,188 $8,432.30 FINANCIAL SUMMARY Four $32.78 $104,208 $8,683.97 CASH FLOW Five $33.76 $107,323 $8,943.59 Six $34.77 $110,534 $9,211.15 LEASE ABSTRACT Seven $35.81 $113,840 $9,486.67 Eight $36.88 $117,242 $9,770.13 LOCATION MAPS Nine $37.99 $120,770 $10,064.18 Ten $39.13 $124,394 $10,366.19 DEMOGRAPHICS Options One option of five years, starting at $40.30/SF in year 11, with 3.0% annual increases
Tenant Expenses Taxes, Insurance, CAM, Utilities Landlord Expenses Structure Only
Construction Allowance Landlord contribution of $30.00/SF maximum toward total buildout estimate of $84.76/SF
Gurantors Mike Blum & Guy Wong
Guaranty If Tenant defaults before the end of Lease Year three (3), personal guarantee is limited to $157,770. If Tenant defaults after the end of Lease Year three (3), personal guarantee is limited six (6) full months of rent. Guaranty expires after Lease Year five (5).
Fixtures Landlord lien on all Tenant personal property, as security in case of default
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
INVESTMENT SUMMARY
AERIAL MAPS
PONCE CITY MARKET
AREA DEVELOPMENT
PHOTOGRAPHS
TENANT INFO
RENTAL SURVEY
FINANCIAL SUMMARY Ruby Chow’s CASH FLOW
LEASE ABSTRACT
LOCATION MAPS
DEMOGRAPHICS Ruby Chow’s
See accompanying Confidentiality Statement. RUBY CHOW'S
770.481.1960 | www.shanegroup.net 620 Glen Iris Drive, Atlanta, GA
One Mile Three Miles Five Miles Notes Population INVESTMENT SUMMARY 2018 Population 31,876 166,486 384,424 AERIAL MAPS 2010 Population 28,742 148,523 337,156 5 Year Projected 33,843 176,615 408,636 PONCE CITY MARKET Growth Over the Past 8 Years 10.90% 12.09% 14.02% Projected Growth Over the Next 5 Years 6.17% 6.08% 6.30% AREA DEVELOPMENT Households PHOTOGRAPHS 2018 Households 18,208 79,607 174,029 % Owner Occupied 35.29% 42.15% 43.99% TENANT INFO % Renter Occupied 64.71% 57.85% 56.01% RENTAL SURVEY 2010 Households 16,976 71,455 153,005 5 Year Projected 19,236 84,440 185,083 FINANCIAL SUMMARY Growth Over the Past 8 Years 7.26% 11.41% 13.74% Projected Growth Over the Next 5 Years 5.65% 6.07% 6.35% CASH FLOW Income LEASE ABSTRACT 2018 Average Household Income $85,823 $96,813 $90,839 LOCATION MAPS 5 Year Projected $94,429 $104,772 $97,223 Projected Growth Over the Next 5 Years 10.03% 8.22% 7.03% DEMOGRAPHICS 2018 Atlanta Average Household Income $81,382 Three Miles is 19% higher than Atlanta Avg. 2018 Georgia Average Household Income $70,633 Three Miles is 37% higher than Georgia Avg.
Employment & Establishments 2018 Employees/Daytime Population 28,515 318,162 441,441 2018 Total Establishments 2,205 17,037 29,786
Race White 58.47% 55.54% 49.92% African American 32.87% 34.58% 41.76% Hispanic Origin (Any Race) 4.71% 4.15% 5.10% Native American / Alaskan Native 0.33% 0.25% 0.29% Asian/Pacific Islander 5.48% 7.08% 5.76% Other Race 2.81% 2.50% 2.23%
See accompanying Confidentiality Statement.