Absolute Net Corporate Hardee's
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absolute net corporate hardee’s long history of occupancy below replacement value [ www.CapitalPacific.com ] 629 W. Main Street, Benton, IL PROperty Summary Listing Team Contact Info HARDEE’s IS LOCATED IN BENTON, IL, JUST OFF OF INTERSTATE 57 ON THE MAIN ARTERIAL. THE prOperTY IS ADJaceNT TO DAILY chris kostanecki [email protected] | (415) 274-2701 NEEDS RETAILER CVS, AND COMPLEMENTARY QUICK SERVICE CA BRE# 01002010 TENANTS LIKE TacO BELL, ARBy’s AND PHILLIP’s 66 sERVICE STATION. THE SITE BOASTS A TALL MONUMENT SIGN THAT IS zeb ripple [email protected] | (415) 274-2702 VISIBLE FROM THE INTERSTATE. CA BRE# 01242540 chris peters PRICE: $965,000 [email protected] | (415) 274-2703 CA BRE# 01339983 CAP: 6.00% jack navarra [email protected] | (415) 274-2705 RENTABLE SF ...............2,448 SF CA BRE# 01909630 PRICE PER SF ...............$394.20 In conjunction with IL Licensed Broker: LOT SIZE ..................0.54 Acres Keeler Real Estate, LLC | (312) 263-1010 NOI ......................$57,908 LEASE EXPIRATION .........6/30/2028 Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. HARDEE’S | 2 core characteristics THIS FREESTANDING HARDEE’s IS LOCATED ON THE MAJOR RETAIL ARTERIAL IN BENTON, IL, WITH Strong store sales & below market rent DirecT acceSS VIA OFF-RAMP TO INTERSTATE 57 CORPORATE LEASE/HISTORICAL OCCUPANCY This is a corporate lease guaranteed by Hardee’s. The tenant has been at this LEASE HIGHLIGHTS location since 1973 and is an established restaurant with strong reported The lease is corporately guaranteed and is an absolute net lease with annual sales. Over the past 3 years alone, annual sales have grown by over the tenant responsible for the structure, grounds, taxes and insurance. 18.5%. The tenant recently extended the lease for 10 years, demonstrating their continued commitment to this location. BELOW REPLACEMENT VALUE LOW OCCUPANCY COSTS/ BELOW MARKET LEASE RATE The property is being offered for sale at below replacement value. The annual base rent for this property is approximately $20,363 and the store sales produce percentage rent for the owner. Store sales have increased 18.5% over the previous three years and have provided a 30% increase in the percentage rent paid out. In 2013, percentage rent paid was $33,410, in 2014 it was $35,865 and in 2015 it was $43,362. Tenant’s fiscal year ends in June and percentage rent is paid and due 90 days thereafter. HARDEE’S | 3 zoomed-in aerial LOCATED ON MAJOR ARTERIAL NEAR FREEWAY OFF-RAMP BENTON MUNICIPAL AIRPORT Main Street Main N 57 DAILY 34,800 FRANKLIN COUNTY REND LAKE PLAZA FRANKLIN COUNTY FRANKLIN COUNTY 14 W Main Street W Main Street E Main Street 13,200 DAILY ® S Main Street Main S 57 CHICAGO HARDEE’S | 4 [ across from subject property ] income & expense PRICE $965,000 Price Per Square Foot: $394.20 Capitalization Rate: 6.00% Total Rentable Area (SF): 2,448 Lot Size (AC): 0.54 STABILIZED INCOME Per Square Foot Scheduled Rent $8.32 $20,363 Percentage Rent* $15.34 $37,546 Effective Gross Income $23.66 $57,908 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $57,908 *Based on the average percentage rent paid over the previous 3 years. Percentage Rent Summary: 2013 $33,410 2014 $35,865 2015 $43,362 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. HARDEE’S | 5 rent roll TENANT INFO LEASE TERMS RENT SUMMARY Current Monthly Yearly Monthly Yearly Percentage Rent Tenant Name Sq. Ft. Term Rent Rent Rent Rent/FT Rent/FT Breakpoint Hardee’s 2,448 08/01/73 06/30/23 $20,363 $1,697 $20,363 $0.69 $8.32 $407,251 07/01/23 06/30/28 $3,333 $40,000 $1.36 $16.34 $800,000 Option 1 07/01/28 06/30/33 $3,667 $44,000 $1.50 $17.97 $880,000 Option 2 07/01/33 06/30/38 $4,033 $48,400 $1.65 $19.77 $968,000 Option 3 07/01/38 06/30/43 $4,437 $53,240 $1.81 $21.75 $1,065,000 Option 4 07/01/43 06/30/48 $4,880 $58,564 $1.99 $23.92 $1,171,000 Option 5 07/01/48 06/30/53 $5,368 $64,420 $2.19 $26.32 $1,288,000 Totals: 2,448 $20,363 $1,697 $20,363 $0.69 $8.32 Percentage rent is equal to the amount by which 5% of gross sales exceeds minimum rent. Breakpoint at $407,251: Landlord collects 5% of sales in excess of natural breakpoint. Tenant’s fiscal year ends in June and percentage rent is paid and due 90 days thereafter. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. [ surrounding retail ] HARDEE’S | 6 site plan DAILY 13,200 POLE SIGN POLE SIGN W Main Street 14 W Washington Street W Washington *For illustrative purposes only. Please consult survey/plot map to verify This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. HARDEE’S | 7 tenant overview HARdee’S Hardee’s Restaurants LLC, is an American fast-food restaurant chain, operating in the Southern and Midwestern U.S. Since opening in Greenville, NC in 1960, the chain has been best known for their biscuits, that are made from scratch, and charbroiled 100% Black Angus Beef Thickburgers. The company has evolved through several corporate ownerships and is now owned and operated by CKE Restaurants, the parent company of Carl’s Jr., which aligned the menus, logos and advertising of the two brands. www.hardees.com CKE Restaurants, Inc., through its subsidiaries, currently has 3,500+ franchised or company operated restaurants in 42 states and in 33 countries, 1,771+ of which are Hardee’s restaurants. For 2016, CKE has a pipeline of over 500 development commitments and plans to open 100 new international restaurants. In 2015, Hardee’s ranked #17 on Entrepreneur’s Franchise 500 List. TOTAL SALES LOCATIONS $2.15 Billion 1,771 Fiscal 2014 HARDEE’S | 8 location & demographics Population BENTON, IL OVERVIEW 1-Mile 3-Mile 5-Mile Benton had a 2010 population of over 7,000 and is the seat of Franklin County, which 2010 4,651 9,311 10,673 had a 2010 population of nearly 40,000. 2015 4,487 9,084 10,491 2020 4,400 8,992 10,414 The small, mining town of Benton is also part of the Metro Lakeland, that refers to an area of southern Illinois that is centered on the intersections of I-57, I-24, and Illinois 2015 HOUSEHOLD INCOMES Route 13. Metro Lakeland has a combined population of approximately 210,000. 1-Mile 3-Mile 5-Mile TOP EMPLOYERS IN FRANKLIN COUNTY Average $42,022 $45,293 $46,457 Employer # of Employees* Median $32,556 $34,736 $35,367 Crowline Boats Inc. 600 Bombardier of America 380 Franklin-Williamson Human Services 300 Benton School District 215 *Approximate DAILY 34,800 13,200 DAILY benton HARDEE’S | 9 surrounding retail SUBJECT PROPERTY IS located BETWEEN PIZZA HUT & ARBY’s AND IN CLOSE PROXIMITY TO CVS, AUTOZONE, O’Reilly & PHILLIPS 66 SERVICE Station HARDEE’S | 10 A unique HUMAN THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS RESULTS-DRIVEN client experience [ www.CapitalPacific.com ] CHRIS KOSTANECKI ZEB RIPPLE Capital Pacific collaborates. Click Here to [email protected] | (415) 274-2701 [email protected] | (415) 274-2702 meet the rest of our San Francisco team. CA BRE# 01002010 CA BRE# 01242540 RICK SANNER BOB SANNER JOHN ANDREINI JOE CACCAMO CHRIS PETERS JACK NAVARRA GREGG STEELE [email protected] | (415) 274-2703 [email protected] | (415) 274-2705 DAVE LUCAS CA BRE# 01339983 CA BRE# 01909630 KARLA ZENS ZANDY SMITH In conjunction with IL Licensed Broker: Keeler Real Estate, LLC | (312) 263-1010 [ Copyright © 2016 Capital Pacific ].