HOOTERS 3725 EAST FRANKLIN BLVD | CHARLOTTE (GASTONIA), NC
OFFERING MEMORANDUM v Subject Property
E. Franklin Blvd ± 37,000 ADT
2 PEGASUS INVESTMENTS DEAL TEAM
MARC MEINHARDT Associate [email protected] O 310.691.1350 x 122 LIC # 01865441 (CA)
DAVID CHASIN Managing Director [email protected] O 310.691.1350 x 101 LIC # 01513027 (CA)
ADAM SLUTZKY Broker of Record LIC # 0225086439 (NC)
CONTENT
4 EXECUTIVE SUMMARY 10 PHYSICAL DESCRIPTION 11 TENANT PROFILE 12 MARKET AREA & LOCATION
OFFERING MEMORANDUM 3 EXECUTIVE SUMMARY OFFERING SUMMARY
Pegasus Investments Real Estate Advisory Inc., an exclusive advisor to the seller, is proud to present a single-tenant absolute triple net leased corporate Hooters restaurant property in Charlotte (Gastonia), North Carolina. The property is ideally located along East Franklin Blvd., with access to a 4-way signalized intersection, offering superior visibility to over 37,000 cars per day along the area’s most highly sought-after retail corridor. The current owners acquired the property approximately 20 years ago, when it was first developed as a Hooters. Since then, the property has enjoyed two decades of operation and recently underwent an interior renovation further demonstrating the tenant’s commitment to this location. Of further significance is the property’s large 2.14- acre parcel which provides future redevelopment opportunities. Surging growth of the area is acknowledged by brand-new retail developments both to the east and west of the property, including a brand new 55,000 SF Aldi anchored retail center which is scheduled to open for business in 2020.
Charlotte is the third fastest growing major city in the United States with a population growth of 22% over the past 10-years. Charlotte also posted an impressive 30% increase of millennial population in that time, outpacing all major US cities including Houston, San Francisco, Denver and Seattle (Charlotte Business Journal). Charlotte is now the home of the Lowe’s 153 million-dollar global technology hub in the South End of Charlotte which is expected to create 2,000 new jobs with an average annual pay of $117,000. (Charlotte Observer). In addition, two publicly traded companies, BB&T Bank and SunTrust Bank are expected to complete their megamerger in 2019 to create one of the largest national banks with a valuation of $66 Billion, and they have selected Hearst Tower, in Charlotte for their brand new heaadquarters..
Price $1,800,000
Cap Rate 6.65%
NOI $119,922
4 PEGASUS INVESTMENTS 11-miles from the Charlotte International Airport and a 20-minute drive to downtown Charlotte.
± 102,000 ADT
75
Subject Property
E. Franklin Blvd ± 37,000 ADT
E. Franklin Blvd is the largest retail corridor in Gastonia.
55,000 SF Aldi-anchored retail development under construction - 100% pre-leased.
OFFERINGOFFERING MEMORANDUM MEMORANDUM 55 Lorem ipsum
Great visibility and high trac counts along E. Franklin Blvd.
Lorem ipsum Great visibility and high trac counts along E. Franklin Blvd. Absolute Triple Net (NNN), Corporate Backed Lease with 20 Years of Occupancy
The property was developed specifically for Hooters and has enjoyed over 20 years of continued occupancy.
The tenant recently exercised its option and remodeled the Subject interior showing a continued commitment to this location. Property The lease is signed by HOA Restaurant Holder, LLC, a wholly owned subsidiary of the corporate parent Hooters of America, Inc.
The lease is 100% absolute triple net, allowing the investor to enjoy truly passive income without any management or maintenance obligations.
Low Price Point & Oversized Parcel w/Extra Parking
At $1.8M, the offering represents an extremely attractive cost basis for a casual dining restaurant located in a major metro like Charlotte. Pegasus has recently completed multiple Hooters sale transactions - please contact agent for comps.
Situated on 2.14 acres of land, the property provides investors not only a high-quality, national tenant, but also a large parcel which could be extremely valuable to developers in the future.
The large parking field is currently striped for 55 cars, however it is possible to add significant parking if needed in the future (buyer to verify during due diligence).
Recent STNL transactions along E. Franklin in the past 3-years include Verizon Wireless for $3.55M (completed by Pegasus), E. Franklin Blvd Popeyes Restaurant for $2.22M, and local restaurant R.J. Gators ± 37,000 ADT for $3.03M. At only $1.8M, the property represents a phenomenal investment opportunity.
6 PEGASUS INVESTMENTS Major Commercial Corridor with 1.2 Million Square Feet of Retail
The property is situated along the most sought-after retail corridor in Gastonia, E. Franklin Blvd., which is home to leading national anchor tenants including Walmart, Lowe’s, Sam’s Club and Kohl’s. Additionally, the E. Franklin Blvd. corridor is experiencing rapid growth with the active and recently completed new retail and restaurant developments including Aldi, TJ Maxx, ULTA, Aspen Dental, LongHorn Steakhouse, Chick-Fil-A, Starbucks and many more.
E. Franklin Blvd. runs parallel to and just 0.3 miles from the I-85 highway which is the largest highway in North Carolina, connecting Gastonia to Charlotte, Greensboro, Durham, Spartanburg and Atlanta. Interstate 85 provides convenient access for commuters living in Gastonia and working in Charlotte, which is only a 25 minute drive from the subject property.
Highly Trafficked Intersection, Great Access and Visibility
With 37,000 VPD and a nearby traffic light, the property enjoys phenomenal visibility from daily passersby. The signalized intersection allows restaurant goers to easily cross E. Franklin Blvd and access Church Street, which leads directly into the subject property’s parking lot.
The traffic signal in front of the subject property allows for full directional access, including a dedicated left-turn lane for westbound traffic along E. Franklin Blvd.
Exceptional access to I-85, providing convenient dining options for the 100k+ cars which travel the interstate on a daily basis.
Oversized 2.14 acre parcel allowing for future development upside.
Newly constructed Take 5
OFFERINGOFFERING MEMORANDUM MEMORANDUM 7 Across from 300,000+ SF center anchored by Regal Cinemas and Kohl’s.
E. Franklin Blvd ± 37,000 ADT Subject Property
55 parking spots 2.14 acres
8 PEGASUS INVESTMENTS ANNUALIZED OPERATING DATA
Rent/ Cap Monthly Rent Annual Rent SF Rate
Current - 11/30/2023 $9,994 $119,922 $33.16 6.65%
12/01/2023 - 11/30/2028 $10,993 $131,914 $36.48 7.33%
12/01/2028 - 11/30/2033 $12,092 $145,106 $40.13 8.06%
12/01/2033 - 11/30/2038 $13,301 $159,616 $44.14 8.87%
TENANT SUMMARY
Lessee Name: HOA Restaurant Holder, LLC
Type of Ownership: Fee Simple
Lessee Entity Type: Corporate
Lease Type: NNN
Roof and Structure: Tenant Responsible
Term Remaining: 4.5 Years
Lease Commencement Date: 12/1/1998
Lease Expiration Date: 11/30/2023
Increases: 10% Increases Every 5 Years
Options: Three, 5-Year Options
9 OFFERING MEMORANDUM 9 PHYSICAL DESCRIPTION
BUILDING & SITE PROFILE
Property Name Hooters
3725 East Franklin Blvd Address Gastonia, NC 28056
Assessor’s Parcel Number (APN) 116913
Zoning C-3, General Commecial
Gross Leasable Area ± 3,616 SF
Lot Size ± 2.14 Acres
Year Built / Renovated 1999 / 2018 POPULATION 1-MILE 3-MILE 5-MILE 2019 Estimate 3,006 41,539 105,304 Number of Stories 1 POPULATION 1-MILE 3-MILE 5-MILE GROWTH
Number of Buildings 1 2019-2024 Estimate 4.09% 6.19% 6.41% INCOME 1-MILE 3-MILE 5-MILE 2019 Est. Average Parking Spaces ± 55 Surface Spaces $70,878 $66,195 $67,109 Household Income
Parking Ratio 15 : 1,000 SF
10 PEGASUS INVESTMENTS TENANT PROFILE
HOOTERS | www.hooters.com
# of Locations ±430 # of Employees ±10,001 Headquartered Atlanta, GA Year Founded 1983
OVERVIEW
Hooters is a chain of restaurants owned by Hooters of America, LLC, an Atlanta-based operator and franchiser of over 430 locations in 29 countries. The first Hooters opened October 4, 1983, in Clearwater, Florida. Since its founding in 1983, the Hooters concept has remained true to its roots with the current logo, uniform, menu and ambiance resembling those of the original location. It is this consistency that has allowed Hooters to achieve continued success and high rankings amongst the inudstry’s growth leaders. The chain’s casual beach-themed establishments feature music, sports on large flat screens, and a menu that includes seafood, sandwiches, burgers, salads, and of course, Hooters’ original chicken wings.
35 YEARS, 430 RESTAURANTS, 29 COUNTRIES POSITIONED FOR CONTINUED EXPANSION
• Despite aggressive competition and constantly evolving consumer In December 2017, Hooters opened its 200th corporate location, and has tastes, Hooters has stood the test of time for over three decades. added a dozen more in the months since. The chain is one of the highest- • International expansion has been a key driver of growth and is grossing restaurants in the country, beating sales at Ruby Tuesday, Macaroni expected to continue strengthening the financial security and future of Grille, Dave & Busters, Chuck E. Cheese’s, Hard Rock Cafe, and California the company. Pizza Kitchen, according to the data firm Technomic. Internationally, the brand is growing even more rapidly. In the last six months, Hooters • Hooters’ success has been driven by the basics; it’s a burger and wing outposts have opened in Germany, Spain, Mexico, Costa Rica, Japan — restaurant that has a full bar and caters to a broad range of customers with 14 additional locations slotted for Spain and Portugal over the next from sports fans to business travelers. three years.
OFFERING MEMORANDUM 11 MARKET AREA CHARLOTTE, NC A region that is equal parts old-fashioned southern charm and high-energy cosmopolitan bustle, the Charlotte metropolitan area is located in the heart of the Southeast within the southern Piedmont OVERVIEW of North Carolina. The Charlotte, North Carolina region is composed of 16 counties, including four counties in South Carolina, with the city of Charlotte serving as the hub. Charlotte is the state’s capital city, currently on the rise with its own culture, culinary sophistication and unique feel that’s making it a more enticing place for people from all over the world to settle down. Throughout the last decade, Charlotte has undergone a significant transformation, which is only anticipated to continue, as evidenced by the numerous construction cranes across the skyline: it has emerged as a standalone destination area.
Bordering South Carolina in the mid-Atlantic, Charlotte is the largest and most accessible city between Washington, D.C., and Dallas, Texas. The city’s highly efficient and growing interstate highway system offers drivers convenient access to the city; I-77 and I-85 connect it to cities in the Northeast, Southwest and Midwest. Charlotte Douglas International Airport is a major international hub and the national hub of US Airways. As the 8th largest airport in the United States for total operations, the airport averages 655 flights daily by 11 major airlines and 14 regional carriers providing non-stop service to 179 cities.
12 PEGASUS INVESTMENTS ECONOMIC SNAPSHOT FORTUNE 500 Charlotte is a modern urban and major U.S. financial center banking. In addition, two publicly traded companies, BB&T COMPANY grown up dramatically from its previous agricultural and Bank and SunTrust Bank are expected to complete their mega- HEADQUARTERS regional banking roots. Today the city is reputedly the merger in 2019 to create one of the largest national banks with headquarters for more banks than any city outside New York. a valuation of $66 Billion, and they have selected Hearst Tower, A diverse commercial and industrial economy has developed in Charlotte, for their brand new headquarters. Bank of America around the financial industry with a mix of contemporary skyscraper architecture and well-preserved 19th-century GASTONIA, NC Lowe’s neighborhoods in Uptown Charlotte. This Charlotte Center city has seen remarkable growth over the last decade. Numerous Gastonia is the second largest satellite city in Charlotte. The Duke Energy residential units continue to be built Uptown, including over city’s economy has benefited from its location within a major 20 skyscrapers under construction, recently completed, or in population center, its proximity to Charlotte, access to major Nucor the planning stage. Many new restaurants, bars and clubs now interstate highways, and the Charlotte-Douglas International operate in the Uptown area. Airport. Over the past decade, the City’s economy has Sonic Automotive diversified through a variety of commercial, industrial, trade, Bank of America, the United States’ second largest financial and tourism sectors. Sealed Air Corp. institution by total assets, is headquartered in Charlotte, and along with other regional banking and financial services Interstate 85 links Gastonia directly with Charlotte, Greensboro, companies, is located in the Uptown central business district. Durham, Spartanburg, and Atlanta. The property is located Charlotte has become the regional headquarters for East Coast on a major retail corridor in Gastonia, including 1,200,000 operations of Wells Fargo and Microsoft. Charlotte also serves million square-feet of retail, including national tenants such as as the headquarters for Wells Fargo’s capital markets activities Walmart, Home Depot, Lowe’s, Regal Cinemas, Target, Chick- including sales and trading, equity research, and investment Fil-A, Starbucks, Chipotle, and Sam’s Club. #1 CITY FOR GROWTH IN NUMBER OF BUSINESSES
-WALLETHUB.COM
OFFERINGOFFERING MEMORANDUM MEMORANDUM 13 HOOTERS
DEAL TEAM MARC MEINHARDT Associate [email protected] O 310.691.1350 x 122 LIC # 01865441 (CA)
DAVID CHASIN Managing Director [email protected] O 310.691.1350 x 101 LIC # 01513027 (CA)
ADAM SLUTZKY Broker of Record LIC # 0225086439 3725 EAST FRANKLIN BLVD | GASTONIA, NC
CONFIDENTIALITY & DISCLAIMER STATEMENT
The information contained in this Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Pegasus Investments and should not be made available to any other person or entity without the written consent of Pegasus Investments. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.
The information contained herein is not a substitute for a thorough due diligence investigation. Pegasus Investments has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition of the business prospects of any tenants, or any tenant’s plans or intentions to continue its occupancy of the subject property.
The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Pegasus Investments has not verified, and will not verify, any of the information contained herein, nor has Pegasus Investments conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Some or all of the photographs contained within may have been altered from their original format. All potential buyers must take appropriate measures to verify all of the information set forth herein.
14 PEGASUS INVESTMENTS HOOTERS
ABOUT PEGASUS INVESTMENTS Pegasus Investments Real Estate Advisory (“Pegasus Investments”) represents a broad range of clients, from institutional investment firms to developers, high net worth individuals, family trusts and partnerships in connection with the purchase & sale and leasing of high quality investment properties nationwide. Pegasus Investments is one of the foremost leading advisory firms within the single tenant and multi-tenant triple net leased retail property category having completed in excess of $1 billion in volume since 2014. 1901 Avenue of the Stars, Suite 630 Los Angeles, CA 90067 Pegasus Investments offers a highly differentiated advisory platform given its ability to collaborate within a vertically www.pegasusinvestments.com integrated environment with Pegasus Capital Markets and Pegasus Asset Management to ensure a seamless transaction 310.691.1350 for all parties involved. The result is highly customized, creative, streamlined execution. LIC # 01961545 (CA)
MARC MEINHARDT DAVID CHASIN KEN CHASIN TREVOR NELSON BRAD KRITZER Associate Managing Director Founder Managing Director Managing Director [email protected] [email protected] [email protected] [email protected] [email protected] O 310.691.1350 x 122 O 310.691.1350 x 101 O 310.691.1350 x 100 O 310.691.1350 x 104 O 310.691.1350 x 106 LIC # 01865441 (CA) LIC # 01513027 (CA) LIC # 00776468 (CA) LIC # 01495150 (CA) LIC # 01918111 (CA)
KEVIN SHELBURN DAYLIN ACKERMAN KATHERINE WEAVER TONY VEILLER STEPHEN APFEL Senior Vice President Vice President Vice President Senior Associate Associate [email protected] [email protected] [email protected] [email protected] [email protected] O 310.691.1350 x 105 O 310.691.1350 x 114 O 310.691.1350 x 115 O 310.691.1350 x 113 O 310.691.1350 x 119 LIC # 01861409 (CA) LIC # 02011508 (CA) LIC # 02004937 (CA) LIC # 01995952 (CA) LIC # 02076409 (CA)
ANDREW COHEN MICHAEL SPECTOR MADELINE ALGER DANIELLA MORENO TALIA TONTI Senior Associate - Leasing Director of Sales & Operations Marketing Associate Marketing Coordinator Office Manager [email protected] [email protected] [email protected] [email protected] [email protected] O 310.402.0211 O 310.691.1350 x 109 O 310.691.1350 x 121 O 310.691.1350 x 123 O 310.691.1350 x 108 LIC # 01996379 (CA) LIC # 01969966 (CA)
ABOUT PEGASUS Pegasus is a boutique commercial real estate investment and advisory firm based in Los Angeles, California. Specializing in retail shopping centers, single tenant net leased and multifamily properties throughout the United States, Pegasus has consistently delivered on its 30 year reputation of providing high quality, white glove service throughout all stages of the investment sales process. Pegasus provides its clients, which include high net worth private investors, family trusts, private & public REITs, local and regional developers and syndicators with advisory services encompassing underwriting, market research, investment sales and asset management. Pegasus continues to set the bar for high quality, boutique investment sales brokerage and advisory by relying on its industry-leading talent, which include experienced institutional and private sector investors.
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