OFFERING MEMORANDUM 2624 Greenwich Road – Wichita, KS 67226 Confidentiality and Disclaimer
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Representative Photo OFFERING MEMORANDUM 2624 Greenwich Road – Wichita, KS 67226 Confidentiality and Disclaimer Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square sales with little or no record of actual performance, or footage of the property and improvements, the presence or The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable; intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify, As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus & responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein. to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc. the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package. evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective written consent of Marcus & Millichap. This Marketing Brochure customers. Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS. this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation, guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the Table of Contents Investment Highlights 4 Financial Analysis 5 Concept/Tenant Overview 6-7 Surrounding Area 8 Location Overview 9 Property Photos 10 Surrounding Area Photos 11 Local Map 12 Regional Map 13 Demographics 14 Market Overview 15 Investment Highlights About the Investment Strong Operator (Saltgrass, Inc.) | 84-Unit Operator Brand New 2019 Construction New, Long-Term, 20 Year Triple-Net (NNN) Lease Rental Increases of 1.3x the Change in CPI (Capped at 10%) Every Five Years Four (4), Five (5)-Year Tenant Renewal Option Periods About the Location Extremely Affluent Suburban Area | Average Household Income Exceeds $144,000 within One Mile of the Subject Property Dense Retail Corridor | Walmart, Target, Hobby Lobby, Cabela’s, Five Below, Bed, Bath & Beyond, Cost Plus World Market, Ulta Beauty, Walgreens, Maurice’s, Five Below, McDonald’s, Arby’s, Dunkin’ Donuts, Sonic, Starbucks, and Many More Heavily Trafficked Area | Subject Property is Positioned Along Greenwich Road Across from an Exit for K-96 | Average Traffic Counts of Approximately 13,000 and 54,000 Vehicles Per Day, Respectively Huge Population Growth | Population within a One-Mile Radius is Projected to Increase by More than 17% by 2023 Outstanding Kansas Real Estate | Located at the Hard Corner of a Signalized Intersection, Less than Eight Miles from the Heart of Downtown Wichita | Most- Populous City in Kansas Highly Accommodating Area | La Quinta Inn & Suites, Hampton Inn & Suites, Holiday Inn Express & Suites, Staybridge Suites, Courtyard by Marriott, Towneplace Suites, Candlewood Suites, Best Western, and Many More Walking Distance from Stoney Pointe Apartments (Luxury Apartments with Over 220 Units) and Stryker Sports Complex (11 All-Sports Turf Fields and 112,000 SF Indoor Facility Designed to Attract Sporting Events and All Levels of Competition) About the Brand 84 Saltgrass Steak House Locations Across 10 States | 10 Locations Opened in 2018 with Another 10-12 Planned for 2019 Landry’s, Inc. Operates Over 600 Restaurants and Five Golden Nugget Hotel & Casinos, as Well as Numerous Hotels and Other Entertainment Destinations Landry’s, Inc. Prides Themselves on Their Prestigious Reputation Upheld by a Commitment to Customer Service and Satisfaction Saltgrass Steakhouse – Wichita, KS 4 Financial Analysis PRICE: $5,145,368 | CAP: 5.75% | Rent: $295,859 Property Description Rent Schedule Property Saltgrass Steak House Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%)3 Property Address 2624 Greenwich Road Year 1 $295,859 $24,655 - Year 2 $295,859 $24,655 - City, State, ZIP Wichita, KS 67226 Year 3 $295,859 $24,655 - Building Size (Square Feet) 7,785 SF Year 4 $295,859 $24,655 - Lot Size +/- 1.74 Acres Year 5 $295,859 $24,655 - Type of Ownership Fee Simple Year 6 $325,445 $27,120 10.00% Year 7 $325,445 $27,120 - The Offering Year 8 $325,445 $27,120 - Purchase Price $5,145,368 Year 9 $325,445 $27,120 - CAP Rate 5.75% Year 10 $325,445 $27,120 - Annual Rent $295,8591 Year 11 $357,989 $29,832 10.00% Year 12 $357,989 $29,832 - Lease Summary Year 13 $357,989 $29,832 - Property Type Net-Leased Restaurant Year 14 $357,989 $29,832 - Tenant Saltgrass, Inc. Year 15 $357,989 $29,832 - Original Lease Term 20 Years Year 16 $393,788 $32,816 10.00% Year 17 $393,788 $32,816 - Estimated Rent Commencement October 1, 2019 Year 18 $393,788 $32,816 - Lease Expiration October 31, 2039 Year 19 $393,788 $32,816 - Lease Type Triple-Net (NNN)2 Year 20 $393,788 $32,816 - Lesser of 1.3x the Change in CPI or Rental Increases INVESTMENT SUMMARY 10% Every 5 Years Marcus & Millichap is pleased to present the exclusive listing for a Saltgrass Steak Options to Renew Four (4), Five (5) Year House located in Wichita, Kansas. This property is subject to a 20-year triple-net (NNN) lease with 20 years remaining on the base term. The offering consists of a 1 - Annual Rent is subject to change based on final construction costs 7,785 square foot building that sits on approximately 1.74 acres of land. The 2 - Tenant reimburses Landlord for all real estate taxes current annual rent is $295,859 and is subject to rental increases of the lesser of 3 - Rent Schedule based on assumed 10% rental increases every 5 years 1.3x the change in CPI or 10% every five years with four, five-year tenant renewal option periods.