Rally’s Hamburgers 2115 N Verity Pkwy – Middletown, OH 45042
PRESENTED BY: Patrick Metz Sales Associate [email protected] Direct +1 513 322 8339 OFFERING MEMORANDUM Cell +1 513 368 7178 Main +1 513 769 1700 x139 THANK YOU FOR YOUR CONFIDENTIALITY
NAI Bergman (“Broker”) has been retained by the documents are not intended to be comprehensive representations or agreements on behalf of Owner. Seller of 2115 N. Verity Pkwy in Middletown, Ohio statements of the terms of such documents but rather Owner shall not have any legal commitment or (“Property”) as the exclusive broker for this only outlines of some of the principal provisions obligation to any entity reviewing this Offering opportunity. contained therein, and no representations or Memorandum or making an offer to purchase the warranties are made as to the completeness and/or Property unless and until a written agreement for the This Offering Memorandum has been prepared by accuracy of the projections contained herein. purchase and sale of the Property has been fully Broker for use by the principal (“Principal”) to whom Prospective purchasers of the Property should make executed, delivered and approved by Owner and the Broker has provided this Offering Memorandum. The their own investigations and conclusions without other party thereto and any conditions to Owner’s use of this Offering Memorandum and the information reliance upon this Offering Memorandum, the obligations hereunder have been satisfied or waived. If provided herein is subject to the terms, provisions and information contained herein or any other written or you have no interest in the Property at this time, return limitations of the Confidentiality Agreement furnished oral communication or information transmitted or this Offering Memorandum immediately to: by Broker and executed by Principal prior to delivery of made available. Additional information and an this Offering Memorandum. Although the information opportunity to inspect the Property will be made NAI Bergman contained herein is based upon sources believed to be available upon written request by interested and 4695 Lake Forest Drive, Suite 100, reasonably reliable, Owner and Broker, on their own qualified prospective purchasers. Cincinnati, OH 45242 behalf, and on behalf of their respective officers, tel +1 513 769 1700 employees, shareholders, partners, directors, members Owner expressly reserves the right, exercisable in fax +1 513 769 1710 and affiliates, disclaim an responsibility or liability for Owner’s sole and absolute discretion, to withdraw the www.naibergman.com inaccuracies, representations and warranties (expressed Property from being marketed for sale at any time and or implied) contained in, or omitted from, the Offering for any reason. Owner and Broker each expressly Memorandum or any other written or oral reserves the right, exercisable in their sole and absolute communication or information transmitted or made discretion, to reject any and all expressions of interest available to the recipient of this Offering Memorandum. or offers regarding the Property and/or to terminate In amplification of and without limiting the foregoing, discussions with any entity at any time with or without summaries contained herein of any legal or other notice. Broker is not authorized to make any
PRESENTED BY: Patrick Metz Sales Associate [email protected] Direct +1 513 322 8339 OFFERING MEMORANDUM Cell +1 513 368 7178 Main +1 513 769 1700 x139 EXECUTIVE SUMMARY BergmanCommercial.com EXECUTIVE SUMMARY THE OFFERING
Location Open Since 1988
Rally’s Hamburgers, “The Property” is comprised of a 714 sf building on 0.8 acres located in the heart of Middletown, OH. This prime location in a densely populated, vibrant retail corridor in which long time neighbors include other national brands such as McDonald’s, KFC, Taco Bell, Wendy’s, Pizza Hut, Subway and more. Built and Operating since 1988, this Rally’s restaurant has been a longtime staple serving the surrounding community.
The Operator/Tenant performed a substantial renovation to the building in 2016 with cost in the vicinity of $150,000. Since the renovation there has been an annual increase in sales that has resulted in higher monthly/annual rent for the Landlord due to percentage rent payout in the lease.
For many years the landlord collects only the percentage rent amount (6% of Sales) due to the success of the store. This location is the top performing store of the Tenant’s 4 units.
3 EXECUTIVE SUMMARY BergmanCommercial.com EXECUTIVE SUMMARY PROPERTY SUMMARY PROPERTY DESCRIPTION Name Rally’s Address 2115 N Verity Parkway City, State, Zip Middletown OH 45042 8,061 People Within 1 Mile Parcel ID Q6511023000121 & 32 Zoning B-2 Type of Ownership Fee Simple Parking 25+ Spaces Parking Ratio 35 : 1,000 SF Landscaping Professional 75 Topography Level
5.5 Miles from I-75 Minutes away from Interstate 71 a major North-South connector
4 EXECUTIVE SUMMARY BergmanCommercial.com EXECUTIVE SUMMARY INVESTMENT SUMMARY INVESTMENT SUMMARY List Price $620,000 NOI $42,914 Cap Rate 6.92% Land (Acres) 0.8 Year Built 1988 Building Size 714 SF Rent Escalator None
LEASE SUMMARY Lease Type Absolute NNN Roof/Structure Tenant Responsible Lease Guarantor Franchise/Personal Original Lease Date July 1, 1988 Commencement Date April 1, 2016 Term Expiring June 30, 2026 Years Remaining 7.5 Renewal Options None
5 SECTION 2 MARKET OVERVIEW
Rally’s
www.BergmanCommercial.com
6 MARKET OVERVIEW BergmanCommercial.com MIDDLETOWN SUBMARKET Middletown, Ohio * is a wonderful blend of old and new, urban and suburban, historic and high-tech. The city has a total population of 48,702 and is located approximately 33 miles north of Cincinnati and approximately 22 miles south of Dayton, Ohio in the middle of the fast-growing Cincinnati/Dayton metropolitan area—one of Ohio’s fastest growing regions for new commercial and residential development. Investors and site selectors are drawn to the Middletown area for a variety of reasons: [1] • Prime southwest Ohio location: Centrally located with easy access to markets, customers and suppliers. • Proximity to commercial airports: .Dayton Airport International, 38 miles; Cincinnati/Northern Kentucky International Airport, 45 miles; Middletown Regional Airport/Hook Field - a level C2 airport. • Strong economic growth potential. • Direct access to Cincinnati-Dayton Metroplex. • Location at I-75 provides excellent link to I-70 and five state routes. • Two local colleges, a workforce development center and medical academy. • Great ability to recruit technical and professional workforce Regional workforce is skilled and educated Customized workforce. • More than 25 universities, colleges and vocational schools within 60 miles. [2] • Master-planned “live, work and play” community Suburban and urban amenities and lifestyle nearby upscale retail, restaurants and entertainment. • Gateway Enhancement Project: The City of Middletown, in cooperation with the Ohio Department of Transportation, has invested $150 million to dramatically improve the I-75/ SR 122 interchange. Investment in infrastructure and transportation has been a catalyst for more development as new and expanding companies continue to locate near the interstate for access and growth. [3]
FOOTNOTES: *Population 2012 http://www.city-data.com/city/Middletown-Ohio.html 1..http://www.cityofmiddletown.org/ed/default.aspx, 02/10/2015 2..http://www.cityofmiddletown.org/ed/eastdistrict.aspx , 02/10/2015 3..http://www.cityofmiddletown.org/docs/ed/Renaissance_East_flyer.pdf, 02/10/2015
7 MARKET OVERVIEW BergmanCommercial.com MIDDLETOWN SUBMARKET AK Steel is the largest employer in Middletown, OH. They are the world leader in production of flat-rolled carbon, stainless and electrical steel products. The corporation operates in 7 plants in 5 states. AK Steel’s Middletown Works, is the nation’s most productive integrated steel operation. Its carbon steel melting, casting, hot and cold rolling, and finishing operations cover more than 2,791 acres. Middletown Works’ hot strip mill is the only domestic mill equipped with pair-cross rolling technology for improved shape and crown control. [2] AK Steel’s 2013 revenues reached approximately $5.6 billion. The company was named “Steel Producer of the Year” by American Metal Market in 2010 and is recognized by Toyota for quality performance and supplier diversity achievement. AK Steel’s heritage spans more than 100 years, beginning in 1899 when the company’s predecessor, Armco, was incorporated in Middletown, Ohio. Over the past century, the company has provided jobs to hundreds of thousands of people, given back to its communities and provided pensions and benefits to generations of retirees. [3]
[1] http://www.aksteel.com/pdf/production_facilities/RevisedMiddletownWorks_11-22-11.pdf visited 2/10/2015 [2] http://www.aksteel.com/company/corporate-profile/ visited 2/11/2015
8 MARKET OVERVIEW BergmanCommercial.com MARKET OVERVIEW REGIONAL MAP
9 MARKET OVERVIEW BergmanCommercial.com MARKET OVERVIEW DEMOGRAPHICS
2018 Estimates with 2023 Projections 1 MILE RADIUS 5 MILE RADIUS 10 MILE RADIUS POPULATION Estimated Population (2018) 8,016 45,924 76,629 Projected Population (2023) 8,496 48,549 80,626 Census Population (2010) 7,868 45,314 74,797 Census Population (2000) 8,870 48,153 75,441 Projected Annual Growth (2018-2023) 480 – 1.2% 2,625 – 1.1% 3,996 – 1.0% HOUSEHOLDS Estimated Households (2018) 3,636 19,572 31,535 Projected Households (2023) 3,876 20,788 33,377 Projected Annual Growth (2018-2023) 241 – 1.3% 1,216 1.2% 1,842 – 1.2% AVERAGE HOUSEHOLD INCOME Estimated Average Household Income (2018) $44,355 $56,619 $62,686 Projected Average Household Income (2023) $50,319 $64,408 $71,803 Projected Annual Change (2018-2023) $5,963 – 2.7% $7,789 – 2.8% $9,117 – 2.9% DAYTIME DEMOGRAPHICS Total Businesses 352 1,460 2,395 Total Employees 3,505 15,011 26,833 Residential Population per Business 22.7 to 1 31.4 to 1 32.0 to 1
10 REQUEST FOR PROPOSAL BergmanCommercial.com EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS
• Longtime Tenant (30 years) Top Performing Store • Lease Rate Enhancement – 6% Percentage Rent • Rent Perpetually above Natural Breakpoint • Operating Since 1988 • Substantial Tenant Renovation in 2016 • Experienced 4 Unit Franchisee • Below Market Rental Rate • Located in Vibrant Retail Corridor • Cincinnati / Dayton MSA
11 NAI BERGMAN CONTACTS
Patrick Metz Sales Associate [email protected] Direct +1 513 322 8339 Cell +1 513 368 7178 Main +1 513 769 1700 x139
NAI Bergman 4695 Lake Forest Drive, Suite 100 Cincinnati, Ohio 45242 +1 513 769 1700 BergmanCommercial.com
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