applebee’s single tenant net lease€¦ · * applebee's current lease term expires on...

150 Great Neck Road, Ste. 304, Great Neck, New York, 11021

Applebee’s single tenant net lease260 Loudon Road, Concord, NH 03301

OFFERING MEMORANDUM

HAKIMICAPITALReal Estate Investments


confidentiality agreement

CONTACT US

Director of AcquisitionsO +1 516 926 3325F +1 516 708 9682C +1 646 481 [email protected]

STEVEN KOUTSANTONIS

This O�ering Memorandum contains select information pertaining to the business and a�airs of the property located at 260 Loudon Road, Concord, NH, 03301 (“Proper-ty”). It has been owned and prepared by Hakimi Capital Group. This O�ering Memorandum may not be all-inclusive or contain all of the information a prospective purchas-er may desire. The information contained in this O�ering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Owner. The material is based in part upon infor-mation supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their o�cers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this O�ering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this O�ering Memorandum for the Property, you agree:

1. The O�ering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this O�ering Memorandum or its contents in any fashion or manner detrimental to the inter-est of the Seller.

Owner expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or o�ers to purchase the Property and to terminate discussions with any person or entity reviewing this O�ering Memorandum or making an o�er to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this O�eringMemorandum.A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospec-tive purchaser have any other claims against Seller or any of their a�liates or any of their respective o�cers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This O�ering Memorandum shall not be deemed to represent the state of a�airs of the Property or constitute an indication that there has been no change in the state of a�airs of the Property since the date this O�ering Memorandum.

Address: 260 Loudon Road, Concord, NH,

property overview investment summary

5,0001.01 AC

GLA107763Parcel ID:

Lot Size

Asking Price: $3,250,000

Current Cap Rate: 5.23%

Blended 15 Yr. Cap Rate: 5.78%

$170,000.00IncomeNet Operating Income

Annualized Operating Data

$170,000

$187,000

$205,700

$14,167

$15,583

$17,142

$34.00

$37.40

$41.14

Annual Monthly PSFRent Increases01/01/2018 - 12/31/2022

01/01/2023 - 12/31/2027

01/01/2028 - 12/31/2032

Tenant

Tenant

Tenant

ResponsibleExpensesCAM

Insurance

Utilities

TenantTaxes

LandlordRoof and Structure

TenantParking Lot

* Applebee's current lease term expires on 12/31/2017. New 15-Year lease term begins on 01/01/2018.

tenant overviewApplebee’s

Condominium Interest

Apple American Group

NN

None

10 Years

01/01/1993

01/01/1993

12/31/2032

15 Years, 9 Months

10%, every five (5) years

None

Lease Summary

Tenant Name

Type of Ownership

Lease Guarantor

Lease Type

Roof and Structure

Original Lease Term

Lease Commencement Date

Rent Commencement Date

Lease Expiration Date

Term Remaining on Lease

Increases

Options

Applebee’s

Net Leased Family Restaurant

Apple American Group

Public | Symbol: DINE

2,016

28,000

Glendale, California

www.applebees.com

1980

Tenant Summary

Property Name

Property Type

Parent Company Trade Name

Ownership

No. of Locations

No. of Employees

Headquarted

Website

Year Founded

It all started in 1980 in Atlanta, GeorgiaBill and TJ Palmer opened the restaurant that would later become Applebee’s. We’ve grown up a lot since then, with almost 2,000 loca-tions in the U.S. and around the world. Here you will always be welcome – for delicious food, in a neighborhood setting, with atten-tive service, at a great value.

In 2010 Applebee's® unveiled the "revitalization" concept, which includes changes to the restaurants such as remodeled interiors and exteriors with warmer color tones, contemporary designs; features specific to the neighborhood the restaurant serves; service improve-ments; and new food and drink selections. The company's goal is to complete the revitalization of all company-owned and franchise restaurants by 2014.

HAKIMI CAPITAL GROUPOFFERING MEMORANDUM

CONCORD, NEW HAMPSHIREAPPLEBEE’S RETAIL

APPLE AMERICANGROUP

Apple American Group is the largest Applebee’s franchisee, running 485 restaurants across 26 states and is part of Flynn Restaurant Group which also operates 270 Taco Bells and 96 Panera’s and is the largest

restaurant franchisee in the U.S.

property summary

www.flynnrestaurantgroup.com

Hakimi Capital is pleased to present a fee simple, Applebee’s single tenant net lease outparcel to Steeplegate Mall for sale.

Operated and owned by the number one Applebees’s franchi-see, Apple American Group the subsidiary of Flynn Restuar-ant Group owns and operates 485 restaurants in 26 states with 26,612 employees. Apple American Group began in 1999 with just 8 Applebee’s locations in Washington State. In the last 17 years, the’ve expanded to 475 restaurants in 26 states, serving communities across the United States. In the process, we’ve built something unique and reshaped how the industry thinks about franchisees.

The Power List 2017: Greg Flynn



Apple American Group began in 1999 with just 8 Applebee’s locations in Washington State. In the last 17 years, we’ve expanded to 485

restaurants in 26 states, serving communities across the United States. In the process, we’ve built something unique and reshaped how the

industry thinks about franchisees.

PREMIER FRANCHISEE IN THE U.S.CHANGING THE INDUSTRY AS THE

Over a 17-year career, Greg Flynn built the nation’s largest franchisee empire: Flynn Restaurant Group LP, a business that spans the country with three di�erent brands — Applebee’s, Panera Bread and Taco Bell. With so many restaurant chains selling locations, franchisees have become increasingly powerful in the business of selling food to customers. And Flynn is foremost among them. This year, he was the first franchisee to ever win Nation’s Restaurant News’ prestigious Operator of the Year award. Flynn started the business with the acquisition of eight Applebee’s locations in Seattle in the late 1990s. Today, it has more than 850 locations. Flynn Restaurant Group was the first franchisee to ever hit the $1 billion mark in revenues and today is nearing the $2 billion mark.

Flynn has grown his business largely by taking advantage of franchisors selling stores to franchisees. The company has bought hundreds of Applebee’s units, many of them during the recession. It then bought Taco Bell locations when it had grown too big for that system. And then it became the first new franchisee of the Panera Bread system in 2015. But the company has also used strategic acquisitions of other franchisees to amass its holdings, such as the 2011 purchase of 99-unit Applebee’s franchisee AmRest and the 2013 purchase of 76-unit Taco Bell operator Southern Bells Inc.

To fund this growth, Flynn has helped pioneer financing mechanisms. The company was among the first franchisees to use private-equity financing when it received an equity investment from Goldman Sachs in 2001. In 2014, the company broke out of the private-equity invest-and-divest cycle with a $300 million investment from the Ontario Teachers Pension Plan — one of the first such investments of its kind in a franchisee.

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FRANKLIN PIERCE HIGHWAYLOUDON ROAD



Applebee’s OutparcelSteeplegate Mall



Steeplegate Mall

demographic overview



POPULATION

Population Level GrowthArea 2010a 2015e 2020f 201 0-201 5 2015-2020f

5 Mile Radius 39,733 39,991 40,496 0.6% 1 .3%

1 0 Mile Radius 85,074 85,737 86,831 0.8% 1 .3%

20 Mile Radius 328,586 334,721 342,1 81 1 .9% 2.2%

Concord 42,695 42,821 43,265 0.3% 1 .0%

Concord MSA 1 46,445 1 48,601 1 51 ,21 3 1 .5% 1 .8%

New Hampshire 1 ,31 6,470 1 ,345,926 1 ,377,822 2.2% 2.4%

United States 308,745,538 31 8,536,439 330,622,575 3.2% 3.8%

Source: Esri

HOUSEHOLDS

Households GrowthArea 201 0a 201 5e 2020f 201 0-201 5 201 5-2020f

5 Mile Radius 1 5,966 1 6,1 30 1 6,358 1 .0% 1 .4%

1 0 Mile Radius 33,693 34,1 91 34,720 1 .5% 1 .5%

20 Mile Radius 1 29,077 1 32,51 2 1 35,832 2.7% 2.5%

Concord 1 7,592 1 7,729 1 7,951 0.8% 1 .3%

Concord MSA 57,069 58,376 59,575 2.3% 2.1 %

New Hampshire 51 8,973 535,61 3 550,333 3.2% 2.7%

United States 1 1 6,71 6,292 1 20,746,349 1 25,477,562 3.5% 3.9%

Source: Esri

POPULATIONSteeplegate Mall’s trade area encompasses

24.9% of New Hampshire’s population. The

population within this trade area is expected

to grow by 2.2% through 2020 – outpacing

the Metro’s projected growth rate by 40 basis

points. Additionally, the population within

this radius has grown 1 .9% since 201 0, out-

pacing the Metro over the same time period.

HOUSEHOLDSHousehold size and formation is critical to re-

tail markets as new or expanding households

typically make investments in durable goods.

The number of households in an area is often

a direct indicator of the health of the job mar-

ket and the demand for residential space in

that area. Even when population growth is

moderate or declining, the number of house-

holds in an area may increase as children

leave home to live independently.

There are 1 32,51 2 households within a 20-

mile radius of the Property, reflecting a 2.7%

growth rate since 201 0. The number of

households within this trade area is projected

to increase by approximately 2.5% through

2020, outpacing the Metro’s projected

growth rate by 40 basis points.

MAJOR EMPLOYERS SERVICE

Concord Hospital Healthcare

Steeplegate Regional Mall Retail

Je�erson-Pilot Financial Finance

Cigna Healthcare Healthcare

Genesis Eldercare Network Healthcare

St. Paul's School Education

Concord Litho Marketing

area overview



Concord, New Hampshire, one of the finest communities in the Northeast, was rated #1 out of 578 micropolitan communities in the U.S. for economic strength three years in a row. Forbes Magazine also recently rated Concord as one of the top seven reces-sion-proof cities in the country. In addition to the vibrant downtown, business community and wealth of cultural o�erings, Con-cord is the perfect place to raise a family, grow a business or explore New England's rich history, culture and natural areas. Con-cord's historic Main Street area is home to various sites of cultural significance, including Railroad Square, the Eagle hotel, which hosted such notable guests as Eleanor Roosevelt and Richard Nixon, The Pierce Manse, former home of President Franklin Pierce, and the State House, the oldest state capitol in which the legislature meets in its original chambers. Far more than the sum of its history, Concord boasts a popular planetarium, plentiful performing arts and an international speedway.

Together, manufacturing and high technology form the backbone of the economy in New Hampshire. Nearly 44,000 people alone work in New Hampshire’s High Tech Sector, which contributes approximately $3 billion to the state’s GDP due to higher than average pay within this sector. Dyn, a cloud based internet performance company founded in 1998, has emerged as one of the state’s leading tech companies. The company operates as a tra�c manager for the internet, contracting with companies such as Twitter to optimize the performance of their websites. The company has grown to more than 400 employees and is headquar-tered in Manchester. Additionally, Lyme Computer Systems, an IT solutions provider serving the Federal Government, has been awarded a NASA contract that could be worth up to $20 billion over the next ten years. “Cleantech” has recently emerged as a creator of high-quality, well-paid jobs and economic growth in New Hampshire. Cleantech relates to innovative technologies that enhance environmental performance through applications that focus on energy. The state employs approximately 17,000 people in this industry. Wages in cleantech-associated jobs are likely to be about 50% higher than the state average. Roughly 200 com-panies operate within the cleantech sector in New Hampshire.

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area tenant photographs



APPLEBEE'S260 LOUDON ROAD - CONCORD, NH

CONTACT US

Director of AcquisitionsO +1 516 926 3325F +1 516 708 9682C +1 646 481 [email protected]

STEVEN KOUTSANTONIS

CONCORD, NEW HAMPSHIRE

Applebee’s stnl


applebee’s single tenant net lease€¦ · * applebee's current lease term expires on...

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