absolute net corporate hardee’s - commercial real estate...
TRANSCRIPT
long history of occupancybelow replacement value [ www.CapitalPacific.com ]
629 W. Main Street, Benton, IL
absolute net corporate hardee’s
RentaBLe SF . . . . . . . . . . . . . . . 2,448 SF
PRICe PeR SF . . . . . . . . . . . . . . . $394.20
Lot SIze . . . . . . . . . . . . . . . . . . 0.54 Acres
noI . . . . . . . . . . . . . . . . . . . . . . $57,908
LeaSe exPIRatIon . . . . . . . . . 6/30/2028
PRICE: $965,000CAP: 6.00%
Listing TeamContact Info
In conjunction with IL Licensed Broker:Keeler Real Estate, LLC | (312) 263-1010
PROperty Summary
Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team.
hARdEE’s Is loCAtEd In bEnton, Il, just off of IntERstAtE 57 on thE mAIn ARtERIAl. thE PRoPERty Is AdjACEnt to dAIly nEEds REtAIlER Cvs, And ComPlEmEntARy quICk sERvICE tEnAnts lIkE tACo bEll, ARby’s And PhIllIP’s 66 sERvICE stAtIon. thE sItE boAsts A tAll monumEnt sIgn thAt Is vIsIblE fRom thE IntERstAtE.
chris [email protected] | (415) 274-2701CA BRE# 01002010
zeb [email protected] | (415) 274-2702CA BRE# 01242540
chris [email protected] | (415) 274-2703CA BRE# 01339983
jack [email protected] | (415) 274-2705CA BRE# 01909630
HARdEE’S | 2
thIs fREEstAndIng hARdEE’s Is loCAtEd on thE mAjoR REtAIl ARtERIAl In bEnton, Il, wIth dIRECt ACCEss vIA off-RAmP to IntERstAtE 57 Strong store sales & below market rent
core characteristics
CoRPoRate LeaSe/hIStoRICaL oCCuPanCy This is a corporate lease guaranteed by Hardee’s. The tenant has been at this location since 1973 and is an established restaurant with strong reported annual sales. Over the past 3 years alone, annual sales have grown by over 18.5%. The tenant recently extended the lease for 10 years, demonstrating their continued commitment to this location.
LoW oCCuPanCy CoStS/ BeLoW MaRket LeaSe RateThe 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.
LeaSe hIghLIghtSThe lease is corporately guaranteed and is an absolute net lease with the tenant responsible for the structure, grounds, taxes and insurance.
BeLoW RePLaCeMent vaLueThe property is being offered for sale at below replacement value.
HARdEE’S | 3
LoCated on MajoR aRteRIaL neaR FReeWay oFF-RaMP
zoomed-in aerial
W Main StreetW Main Street e Main Street
n M
ain
Stre
etS
Mai
n St
reet
57
57
14
BENTON MUNICIPAL
AIRPORT
FRANKLIN COUNTY
FRANKLIN COUNTY
FRANKLIN COUNTY
Rend Lake PLaza
®
CHICAGO
13,200 DAILY
34,8
00 D
AIL
Y
HARdEE’S | 4
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.
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 FootScheduled Rent $8.32 $20,363
Percentage Rent* $15.34 $37,546
Effective Gross Income $23.66 $57,908
LESS Per Square FootTaxes 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:
[ across from subject property ]
2013 $33,4102014 $35,8652015 $43,362
HARdEE’S | 5
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.
rent roll
TENANT INFO LEASE TERMS RENT SUMMARY
Tenant Name Sq. Ft. Term Current Rent
Monthly Rent
Yearly Rent
Monthly Rent/FT
Yearly Rent/FT
Percentage Rent 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.
[ surrounding retail ]
HARdEE’S | 6
site plan 13
,200
DA
ILY
*For illustrative purposes only. Please consult survey/plot map to verify
W W
ashi
ngto
n St
reet
W M
ain
Stre
et14
PoLe SIgn
PoLe SIgn
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
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.
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.
www.hardees.com
LoCatIonS 1,771
totaL SaLeS$2.15 Billion
Fiscal 2014
tenant overview
HARdEE’S | 8
Benton, IL oveRvIeW Benton had a 2010 population of over 7,000 and is the seat of Franklin County, which had a 2010 population of nearly 40,000.
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 Route 13. Metro Lakeland has a combined population of approximately 210,000.
POPULATION
2015 HOUsEHOLD INCOMEs
BENTON
toP eMPLoyeRS In FRankLIn County
location & demographics
Employer # of Employees*Crowline Boats Inc. 600
Bombardier of America 380
Franklin-Williamson Human Services 300
Benton School district 215
*Approximate
1-Mile 3-Mile 5-Mile
2010 4,651 9,311 10,6732015 4,487 9,084 10,4912020 4,400 8,992 10,414
1-Mile 3-Mile 5-Mile
Average $42,022 $45,293 $46,457Median $32,556 $34,736 $35,367
13,200 DAILY
34,8
00 D
AIL
YHARdEE’S | 9
sUBjECT PROPERTY Is LOCATED BETwEEN
PIzzA HUT & ARBY’s AND IN CLOsE
PROxIMITY TO CVs, AUTOzONE, O’REILLY &
PHILLIPs 66 sERVICE sTATION
surrounding retail
HARdEE’S | 10
A unique HUMANRESULTS-DRIVEN client experience
the CaPItaL PaCIFIC exPeRIenCe - ouR daILy CoMMItMent to ouR CLIentS
[ www.CapitalPacific.com ]
[ Copyright © 2016 Capital Pacific ]
RICk SanneR
dave LuCaS
zandy SMIth
BoB SanneR
john andReInI joe CaCCaMo
gRegg SteeLe
kaRLa zenS
ChRIS [email protected] | (415) 274-2701CA BRE# 01002010
zeB [email protected] | (415) 274-2702CA BRE# 01242540
ChRIS [email protected] | (415) 274-2703CA BRE# 01339983
jaCk [email protected] | (415) 274-2705CA BRE# 01909630
In conjunction with IL Licensed Broker:Keeler Real Estate, LLC | (312) 263-1010
Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team.