CONFIDENTIAL OFFERING MEMORANDUM NNNFOR Lease SALE: Investment Uptown Opportunity Triple Net Investment Opportunity 50015001 FreretFreret Street Street | New | New Orleans, Orleans, LA LA CONFIDENTIAL OFFERING MEMORANDUM NNN Lease Investment Opportunity 5001 Freret Street | New Orleans, LA
Exclusively Marketed By:
BEN JACOBSON CASEY BURKA Ben + Burka Ben + Burka 1900 Cadiz Street, Suite A 1900 Cadiz Street, Suite A New Orleans, LA 70115 New Orleans, LA 70115 504.301.1002 504.301.1002 [email protected] [email protected]
Licensed in the State of Louisiana TABLE OF CONTENTS
INVESTMENT SUMMARY Investment Summary Investment Highlights
AREA OVERVIEW Location & Area Map Retail Map City Overview
PROPERTY OVERVIEW Building Details Floor and Site Plan © 2016 Ben + Burka. The information contained in this ‘Offering Memorandum,’ has been Survey obtained from sources believed to be reliable. Ben + Burka does not doubt its accuracy, however, Ben + Burka makes no guarantee, representation or warranty about the accuracy Operating Statement contained herein. It is the responsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine it’s accuracy Tenant Profiles and completeness. Any and all projections, market assumptions and cash flow analysis are TENANT used to help determine a potential overview on the property, however there is no guarantee or assurance these projections, market assumptions and cash flow analysis are subject to LEASE INFO Lease Abstract change with property and market conditions. Ben + Burka encourages all potential interested buyers to seek advice from your tax, financial and legal advisors before making any real Rent Roll estate purchase and transaction. INVESTMENT SUMMARY TENANTS
OFFERING SUMMARY
PRICE $3,235,000
CAP 6.00%
Both Tenants YEARS REMAINING w/ 10 Years
Strong Personal and LEASE GUARANTEE Multiple Location Franchisee Group Guarantees
PROPERTY SUMMARY
ADDRESS 5001 Freret Street New Orleans, LA 70115
PARISH Orleans
BUILDING AREA 4,975 SF
LAND AREA 13,005 SF
PARKING SPACES 22
BUILT 2017 Representative Image HIGHLIGHTS INVESTMENT HIGHLIGHTS • 2017 Completed New Construction Designed by Studio WTA Architects
• Brand New 10 Year Leases
• Triple Net (NNN) with Minimum Landlord Responsibilities
• Prime, Corner Location With 22 Off-Street Parking Spaces (very rare in NOLA)
• Rent Bumps Every 5 Years
• Strong Personal Guarantee from Significant Net Worth Individuals and Companies with many locations
• Passive Investment Deal for Out-of State Investors
• Located On Booming Freret Street Which Receives Local and National Notoriety as a Model for Revitalization
• Centrally Located in the Uptown Area
• Only 4 Blocks From Ochsner Baptist Hospital, 9 Blocks from Tulane University (13,581 students) and Loyola (4,928 students), and less than 10 Blocks from nine different Lower, Middle, and High Schools.
• Strong Surrounding Demographics - more than 50,000 people living/working within 1 mile LOCATION MAP FRENCH QUARTER
CBD
CARROLLTON BROADMOORE WAREHOUSE DISTRICT
CLAIBORNE AVENUE
FRERET STREET BLACK PEARL CENTRAL CITY
5001 FRERET
STREET LOUISIANA AVENUE
BROADWAY AVENUE JEFFERSON AVENUE GARDEN DISTRICT
AUDUBON PARK ST CHARLES AVENUE UPTOWN IRISH CHANNEL
MAGAZINE STREET NAPOLEON AVENUE NAPOLEON FRERET STREET AERIAL
5001 FRERET STREET A E
ROBERT
FRERET JENA
JEFFERSON NAPOLEON
VALMONT
CADIZ VALANCE
SONIAT
UPPERLINE LOCATION DETAILS LOCATION DETAILS: New Orleans is a major United States port and the largest city and metropolitan area in the state of Louisiana. The population of the city was 343,829 as of the 2010 U.S. Census. The New Orleans metropolitan area had a population of 1,167,764 in 2010 and was the 46th largest in the United States. Nearing its 300th anniversary as a city, it has seen a renaissance in recent years. The city continues to be a top tourist destination with 2016 being a record year with 10.5 million visitors in 2016 which is only expected to grow leading up to the tricentennial. New Orleans has also been a top ranked city for entrepreneurship and was recently ranked by Forbes at the #1 “Brainpower City” in the US based on percentage growth in college graduates.
5001 Freret is located in the ideally located Freret Street commercial corridor which is centrally located amongst some of the strongest demographics in the city. The USA Today recently touted that “under-the-radar Freret Street has seen an epic revitalization. It is now a go-to spot for food, drink, nightlife and festivals.” Freret street has seen over 40 new businesses pop up on it’s 8 block commercial stretch in the last 5 years. The immediate surrounding area has also benefited from its revitalization with housing being renovated and upgraded. Tulane University, Loyola University, and Ochsner Baptist Hospital are all less than 10 blocks from the Property making it a popular destination for food and entertainment.
Property Demographics:
2016 Demographics 1 mile 2 mile *Estimated Population 31,038 97,081 Average Household Income $95,782 $77,396
5001 Freret is less than 1/2 mile from Tulane and Loyola Universities which have a combine enrollment of 18,000+ students. This population is not factored into above demographics. PROPERTY DETAILS PROPERTY DETAILS:
• Zoning: HU‐MU (Historic Urban Neighbor- hood Mixed Use)
• Flood Zone: X
• Building Description: Free Standing Retail
• Construction: Steel frame
• Exterior: Metal siding and Brick
• Windows: Casement and fixed casement
• Roof/Cover: Flat/Metal
• Parking: Concrete and Truegrid Paver Pro Plus
• Cross Easement with Neighboring Building for Parking and Access
• 15’ Ceilings with Clear Span Layout
• Roof has 10 Year Warranty
• Large Covered Patio
• Shared In Ground Grease Trap
• Designated Trash Area SITE AND FLOOR PLAN
not a part
New Orleans, Louisiana 70115 Louisiana Orleans, New 5001 FRERET STREET 5001FRERET
New Orleans, Louisiana 70115 Louisiana Orleans, New 5001 FRERET STREET 5001FRERET Sheet Size: 30" x 42"
Sheet Size: 30" x 42"
SURVEY OPERATING STATEMENT
Monthly Annual $/SF Base Rent $16,170.84 $194,050.08 $39.01
Nets $2,753.23 $33,038.70 $6.64
Total Revenue $18,924.07 $227,088.78 $45.65
Operating Expenses Taxes $582.96 $6,995.56 $1.41 Insurance $999.43 $11,993.14 $2.41 CAM Grease Trap $300.00 $3,600.00 $0.72 Landscaping $275.00 $3,300.00 $0.66 Trash $425.00 $5,100.00 $1.03 Electricity $50.00 $600.00 $0.12 Management Fee $120.83 $1,450.00 $0.29 Total CAM $1,170.83 $14,050.00 $2.82
Total Operating Expenses $2,753.23 $33,038.70 $6.64
NOI $16,170.84 $194,050.08 $39.01 TENANT PROFILE
Blaze Pizza LLC is a Pasadena, California-based chain within the fast-casual dining restaurants category. Founded in 2011 by Elise and Rick Wet- zel of Wetzel’s Pretzels, Blaze Pizza was modeled after the Chipotle concept as a made-to-order approach to serving customers. National Basket- ball Association (NBA) champion LeBron James is one of the original investors in the chain, which is touted by Bloomberg “as the next Chipotle”. Blaze Pizza was ranked as the #2 brand in the 2015 Fast Casual Top 100.
Blaze Pizza’s name was derived from how quickly a create-your-own pizza can be “Fast Fire’d” in an 800-degree open-flame oven – an average cook time is 3 minutes. Customers begin by choosing which of the ingredients they’d like on their pizza pie. As they work their way down the as- sembly line, staff assist the customer at each step resulting in a unique custom pizza each time. When they arrive at the end of the line, their cus- tom-built pizza is ready to be cooked. The company’s culture encourages customer self-expression and individuality. Phrases such as “Cause a Scene Every Day”, “Be Unconventionally Wise”, “There is No Wrong Way to Play” and “Keep Your Feet Firmly Planted Off the Ground” are accom- panied by full-wall visual graphics within the interior space of a Blaze Pizza. The company’s slogan is “Intelligent Choices for Our Pizzas, People & Planet.” The restaurant’s décor is thoughtful and modern with an urban feel, which is created by the use of stainless steel and reclaimed wood. Blaze has carefully sourced its packaging to be eco-friendly. They purposefully source their tableware and packaging to be fully compostable and/or recyclable. Drink lids, straws and cups are made from plant-based materials. Their boxes are certified by the Sustainable Forestry Initiative. TENANT PROFILE
The Halal Guys legend began in 1990, when the three founding partners opened up a hot dog cart on West 53rd & 6th Avenue in New York City. That is when the famous platter of chicken and gyro over rice was born. Customers waited in line sometimes hours for their mouth-watering American Halal fare, including their signature chicken, gyro and falafel platters over rice and their world-famous white sauce. Fast-forward 25 years, and the company has decided to take their concept worldwide. Within the first year of expanding, Halal had deals for 225 new units. The world famous Halal Guys have created major global buzz with media and fans alike and rank as the #3 Most Yelped restaurant in the entire United States. LEASE ABSTRACT LEASE SUMMARY TENANT BLAZE PIZZA
PREMISES 2,500 SF
LEASE COMMENCEMENT 2/1/17
LEASE EXPIRATION 1/31/27
LEASE TERM 10 YEARS
RENEWAL OPTIONS 3 x 5 Year Options
RENT INCREASES 7.5% Every 5 Years
LEASE TYPE Triple Net (NNN)
PROPERTY TAXES Tenant Responsibility
INSURANCE Tenant Responsibility
COMMON AREA Tenant Responsibility
ROOF AND STRUCTURE Landlord Responsibility
REPAIRS AND MAINTENANCE Tenant Responsibility
HVAC Tenant Responsibility
UTILITIES Tenant Responsibility
RIGHT OF FIRST REFUSAL No
GUARANTEE Full Corporate Guarantee (multiple location franchisee) plus a 3 year personal guarantee LEASE SUMMARY LEASE ABSTRACT TENANT HALAL GUYS
PREMISES 2,475 SF
LEASE COMMENCEMENT 2/1/17
LEASE EXPIRATION 1/31/27
LEASE TERM 10 Years
RENEWAL OPTIONS 2 x 5 Year Options
RENT INCREASES 10%-12% Every 5 Years
LEASE TYPE Triple Net (NNN)
PROPERTY TAXES Tenant Responsibility
INSURANCE Tenant Responsibility
COMMON AREA Tenant Responsibility
ROOF AND STRUCTURE Landlord Responsibility
REPAIRS AND MAINTENANCE Tenant Responsibility
HVAC Tenant Responsibility
UTILITIES Tenant Responsibility
RIGHT OF FIRST REFUSAL No
GUARANTEE Full Corporate (5 + locations) and Personal Guarantee (very strong)
OTHER 3 Year Kick Out With 6 Months Notice and 1 Year Rent Penalty RENT ROLL
TENANT SQUARE % OF MONTHLY RENT/SF LEASE LEASE INCREASE RENTAL OPTIONS NAME FOOTAGE TOTAL BASE RENT BEGIN END DATES INCREASE Blaze Pizza 2500 50.3% $8,333.34 $40 2/1/17 1/31/27 2/1/22 $8,958.34 Three 5 Year Options at $9,631.25, $10,354.17, $11,131.25 Halal Guys 2475 49.7% $7,837.50 $38 2/1/17 1/31/27 2/1/22 $8,621.25 Two 5 Year Options at 12% increases CONFIDENTIAL OFFERING MEMORANDUM NNN Lease Investment Opportunity 5001 Freret Street | New Orleans, LA
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 Ben + Burka and should not be made available to any other person or entity without the written consent of Ben + Burka.
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, 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 or business prospects of any tenant, 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, Ben + Burka has not verified, and will not verify, any of the information contained herein, nor has Ben + Burka conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
By receipt of this Memorandum, you agree that this Memorandum and its contents are of confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose its contents in any manner detrimental to the interest of the Owner. You also agree that by accepting this Memorandum you agree to release Ben + Burka and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property. CONFIDENTIAL OFFERING MEMORANDUM NNN Lease Investment Opportunity 5001 Freret Street | New Orleans, LA
For more information, please contact the Lessor’s exclusive representative:
CASEY BURKA BEN JACOBSON Ben + Burka Ben + Burka 1900 Cadiz Street, Suite A 1900 Cadiz Street, Suite A New Orleans, LA 70115 New Orleans, LA 70115 504.301.1002 504.301.1002 [email protected] [email protected]
Licensed in the State of Louisiana
The information contained herein has been obtained from sources that we deem reliable. No representation or warranty is made as to the accuracy thereof, and it is submitted subject to errors, omissions, change of price, or other conditions, or withdrawal without notice.