For Sale 5% Cap NNN Investment Opportunity 5315 W LOOP 250 N MIDLAND, TX 79707 OFFERING MEMORANDUM Investment Advisors: PABLO RODRIGUEZ SARA FREDERICKS Managing Director Director t 760-610-3147 t 469-467-2057 [email protected] c 975-571-2146 CA RE License #01870757 [email protected] TX License #560005 NEWMARK LA NEWMARK DALLAS 700 Flower Street, Suite 2500 2515 McKinney Avenue, Suite 1300 Los Angeles, CA 90017 Dallas, TX 75201 t 213-596-2222 t 469-467-2000 Newmark DRE #01355491 nmrk.com Disclaimer: Sellers/Buyers need to do their own investigation and verify information. This is a high level analysis that should be individually reviewed and investigated. Newmark and its agents make no warran- ties and/or promises as to the accuracy and/or interpretation of the data provided. 5313 W 250 LOOP NORTH | MIDLAND, TX Table of Contents 01 The Offering 02 Property Description 03 Financial Analysis 04 Market Overview NEWMARK 3 01 The Offering Offering Terms 01 NEWMARK IS PLEASED TO PRESENT THIS NET LEASED WIENERSCHNITZEL RESTAURANT INVESTMENT OPPORTUNITY The Offering LOCATED IN MIDLAND, TX. Located adjacent to a Carl’s Jr. restaurant, this property enjoys ± 210’ of frontage and monument signage along the Texas State Highway West Loop 250 North with an average traffic count of 58,996 cars per day. The lease, with a 17-unit $2,640,000 franchisee, features an initial term of 20-years with five, five-year options to extend. The lease rate increases 10% every five years during the initial lease Price term and during each option period. The subject property is located on Texas State Highway West Loop 250 North, 5.00% creating great regional access to the property. A 94-room Holiday Inn Express Cap Rate borders the North side of the site. Major retailers in the area include: Lowe’s, Home Depot, Walmart, Academy Sports, Target, Dillard’s, Ross, Kohl’s, Ashley Furniture and Old Navy among many others. Area restaurants include the adjacent Carl’s $132,000 Jr., Dickey’s Barbeque, Panda Express, Chick-fil-A, Wendy’s, Jamba Juice, Pizza Hut, Jack in the Box, Buffalo Wild Wings and many more. NOI ± 0.71ACRES Land Area 2,155 SF Building GLA R000215-351 Parcel APN Investment Highlights QUALITY TENANT Wienerschnitzel is “The World’s Largest Hot Dog Chain” selling over 120 million hot dogs annually. Location is leased to seasoned operator with 19 units and growing. DURABLE LONG-TERM NNN LEASE STRUCTURES The Wienerschnitzel lease will be a brand new 20-year absolute triple net lease commencing upon the close of escrow with scheduled 10% increases every five years. STABLE, LONG TERM INVESTMENT Income stability – long-term NNN leases provide for income diversity, recent build out to spaces provide for optimal tenant operational functionality. Wienerschnitzel has a drive thru window, allowing for coveted contactless customer service. FREEWAY FRONTAGE Highly visible with attractive architecture along West Loop 250 North with 210’of frontage. NEWMARK 7 7 02 Property Description Property Specifications 02 ADDRESS Property Overview 5313 W 250 North Loop, Midland, TX 79707 SQUARE FOOTAGE 2,155 SF of leaseable area. PARKING 25 parking spaces including two handicap accessible. ZONING PD, Planned Development District, may be used to permit new or innovative concepts in land utilization or diversification that could not be achieved under conventional zoning approaches. Any combination of residential, commercial, light industrial, public or recreational uses as approved by the City Council may be permitted. YEAR BUILT 2016 TRAFFIC COUNT Approximately 58,996 cars/day along a major retail corridor on W Loop 250 N. ACCESS There are four points of entry form the adjacent parcels to the north and south. LAND AREA APN: R000215-351 is ± 0.71 Acres. Site Plan Site Aerial W LOOP 250 NORTH W LOOP LOOP 250 NEWMARK 11 11 Site Plan 12 A-002 15'-7" 18'-0" 11'-0" W LOOP 250 NORTH W LOOP 26'-0" R20'-6" G 9'-0" 24'-8" "0-'81 "0-'42 NAP R27'-0" LOOP 18'-0" 26'-0" 9'-0" 5'-0" 35'-7" 250 20'-9" 9'-4" 18'-0" "0-'9 18'-8" 30'-0" 30'-0" 12'-0" 18'-0" 18'-0" 26'-0" 18'-0" 9'-0" T NEWMARK 13 13 OVERALL SITE PLAN SCALE 1" = 20' 4 03 Financial Analysis Investment Summary 03 WIENERSCHNITZEL Absolute NNN (Tenant responsible for Financial Highlights Lease Type roof, structure, common areas and will reimburse for management fees) Rent $132,000 ($61.25/SF) Lease Term Remaining 20 years from close of escrow Rent Commencement Date Upon close of escrow Renewal Options Five (5), five (5) year options Escalations 10% every five years Franchisee 17-Unit Operator (see agent for details) GLA 2,155 SF LEASE TERM Rent Increases Annual Rent Monthly Rent % Increase Years 1-5 $132,000 $11,000 10.00% Years 6-10 $145,200 $12,100 10.00% Years 11-15 $159,720 $13,310 10.00% The franchisee is a 17-unit operator and has ex- Years 16-20 $175,692 $14,641 10.00% tensive experience in the Wienerschnitzel system. OPTIONS Over the next three years, the franchisee will be opening another 20 Wienerschnitzel locations. Rent Increases Annual Rent Monthly Rent % Increase Option 1 $193,261 $16,105 10.00% Speak to the agent for further details. Option 2 $212,587 $17,715 10.00% Option 3 $233,846 $19,487 10.00% Option 4 $257,230 $21,436 10.00% Option 5 $282,953 $23,579 10.00% NET OPERATING INCOME $132,000 TOTAL RETURN 5.0%/$132,000 Tenant Overview Wienerschnitzel Highlights Wienerschnitzel Moves Up 15 Spots On Franchise Times’ Top 200 List IRVINE, CA – Wienerschnitzel, the world’s largest hot dog chain, is proud to announce it climbed 15 Type: Subsidiary spots in the recently published Franchise Times Top 200 List. The prestigious ranking identifies the Founded: Wilmington, CA (1961) top-performing franchise systems in the U.S. based on global system-wide sales from the previous year. Founder: John Galardi Wienerschnitzel attributes its jump from the 191st to the 176th position to its strategic efforts to build Headquarters: Newport Beach, California brand awareness across an expanded customer demographic. Also to be credited is the brand’s Number of locations: 358 unwavering commitment over the past five decades, to serving its craveable classics, including Wie- nerschnitzel’s famous chili dog, at a great value, which has helped to solidify the company’s strong position in the QSR marketplace. The World’s Largest Hot Dog Chain with over 50 years of proven success “We are honored that Wienerschnitzel continues to be recognized among the franchise heavy-hitters by the industry authorities at Franchise Times,” said Ted Milburn, Director of U.S. Franchise Devel- opment for Wienerschnitzel. “Given Wienerschnitzel’s 19 consecutive quarters of same store sales Founded in 1961 by John Galardi with a single hot dog growth and our many exciting initiatives in progress, there has never been a better time to invest stand in Wilmington, California, Wienerschnitzel has and partner with the brand. We’re extremely confident of the positive road ahead for our company grown to be the world’s largest hot dog chain serving and family of franchisees.” more than 120 million hot dogs a year; and the chain is famous for their delicious secret-recipe chili used to smother on fries, hot dogs and burgers. Source: Franchising.com An iconic American brand with a devoted following Wienerschnitzel Shakes Things Up By Adding Unique Flavors of New for over 55 years, Wienerschnitzel is poised for expo- nential growth, both domestically and internationally. OREO Cookie Shakes to its Delicious Dessert Menu With a refreshed marketing focus, Wienerschnitzel has IRVINE, CA (3/11/21) – Things are shaking up at Wienerschnitzel! The largest hot dog chain in the received tremendous media attention and accolades in- world has once again partnered with OREO, the iconic chocolate cookie, to create new OREO Cookie cluding Franchise Times’ “20 To Watch” and voted “Best shake flavors. In addition to its tasty OREO Cookie Chocolate Shake, the chain introduced a berry Fast Food in Southern California” by readers of Los creamy OREO Cookie Strawberry Shake and refreshingly cool OREO Cookie Mint shake to the mix. Angeles Daily News for five years and running. Addi- Now that’s a batch made in cookie heaven! But hurry, this delectable, mouthwatering lineup will tionally the company recently introduced a unique next only be available for a limited time so pick one up today. generation store design featuring a smaller footprint and a lower cost of entry; while the simple menu allows Wienerschnitzel is now serving OREO Cookie Strawberry, Mint and Chocolate Shakes! Available for for easy execution and lower food costs. a limited time only, at participating locations. Try them all before they’re gone. “Our OREO Cookie Shakes are delicious,” says Doug Koegeboehn, Chief Marketing Officer for Wie- nerschnitzel. “It’s awesome getting these new flavors of OREO Cookie as a soft serve shake.” Source: Wienerschnitzel NEWMARK 17 04 Market Overview Midland, TX 04 Market Overview Market Overview WITHIN A 3-MILE RADIUS LOOP 20 250 SITE $120,042 ±69.5 K AVERAGE 2020 TOTAL HOUSEHOLD POPULATION INCOME 191 TEXAS 20 $299,725 ±64.2 K 349 AVERAGE DAYTIME TEXAS HOME POPULATION VALUE 1,873 19,843 TOTAL BUSINESSES TOTAL EMPLOYEES Demographics Feel the Energy! Midland’s City Motto Midland, Texas is a warm and inviting West Texas city, conve- POPULATION 1 Mile 3 Miles 5 Miles niently located on Interstate 20, halfway between Fort Worth and El Paso. Easily accessible, it boasts Midland International Air & 2020 Total Population 17,000 69,526 116,924 Space Port, serviced daily by American, Southwest, and United 2025 Total Population 18,439 74,235 125,628 Airlines and is the closest airport to Big Bend National Park.