buffalo wild wings + kay jewelers - constant...

2475 Cobbs Ford Road - PRATTVILLE, ALABAMA 36066

Buffa lo Wi ld Wings + Kay Jewelers

ACTUAL PROPERTY

offer ing memorandum

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID X0332272 1


Investment Overv iew

• Newly Constructed Buffalo Wild Wings and Kay Jewelers in Prattville, Alabama | Less Than 10 Miles Northwest of Montgomery

• Buffalo Wild Wings Signed a 10-Year Lease ith Four, Five-Year Renewal Options | 15 Percent Escalation in Rent in Option One, 10 Percent in Remaining Options

• Kay Jewelers Signed a 10-Year Lease with Two, Five-Year Renewal Options | 10 Percent Escala-tion in Rent Every Five Years

• Both Tenant’s Leases are Guaranteed by Corporate Entities

• Highly Visible Location Along Busy Retail Corridor | Over 32,600 Vehicles per Day Along Cobbs Ford Road

• Less Than One-Half-Mile from Interstate 65 | Over 56,600 Vehicles per Day | Runs Directly Through Montgomery

• Adjacent to Multiple Shopping Centers Anchored with Target, Publix, Home Depot, J.C. Penney, and Lowe’s

• Other Major Tenants in the Vicinity Include Belk, Carmike Cinemas, Best Buy, McDonald’s, Ross, PetSmart, Kohl’s, Ashley Furniture, Chipotle, Starbucks, and Many More

Marcus & Millichap is pleased to present this newly constructed Buffalo Wild Wings and Kay Jewelers in Prattville, Alabama. This 7,335-square foot retail asset is located just off Interstate 65 and is less than 10 miles northwest of Montgomery. Each tenant signed a 10-year lease with renewal options featuring rental escalations. Both leases are guaranteed by corporate entities.

The subject property is well located on Cobbs Ford Road, the main retail corridor of Prattville with over 32,600 vehicles per day. The asset is less than one-half-mile from Interstate 65 with over 56,600 vehicles per day.

Cobbs Ford Road is densely populated with retail space. The subject property is adjacent to shopping centers anchored with Target, Home Depot, Publix, J.C. Penney, and Belk. In close proximity are additional shopping centers featuring anchor tenants such as Lowe’s, Walmart, Kohl’s, Carmike Cinemas, Academy Sports, and Hobby Lobby. Other major tenants in the vicinity include McDonald’s, Starbucks, Mattress Firm, Ross, PetSmart, Books A Million, Office Depot, Ashley Furniture, Chipotle and many more. In addition, there are more than six national hotel chains within two miles of the asset.

Actual Property



PRICE: $ 3,267,700

CAP RATE: 6.35%

NOI: $ 207,500

PRICE PER SQUARE FOOT: $ 445.49

RENT PER SQUARE FOOT: $ 28.29

ADDRESS: 2475 Cobbs Ford Road | Prattville, AL

YEAR BUILT: 2016

LOT SIZE: 1.80 Acres

GROSS LEASEABLE AREA: 7,335 SF

Financia l Overv iew

Offer ing Summary Annua l i zed Operat ing Data :Income

Base Rent

Occupied Space $ 207,500

Gross Potential Rent $ 207,500

Expense Reimbursements

Real Estate Taxes $ 11,736

Insurance $ 2,201

CAM $ 22,739

Management Fee $ 8,300

Administrative Fee $ 2,274

Total Expense Reimbursements $ 47,250

Effective Gross Income $ 254,750

Expenses

Real Estate Taxes $ 11,736

Insurance $ 2,201

Administrative Fee $ 2,274

CAM $ 22,739

Management Fee (% of EGI) 3.3% | $8,300

Total Expenses $ 47,250

Expenses/SF $ 207,500

Actual Property



Lease Overv iew

Actual Property

Buffalo Wild Wings

GLA 5,085

% of Total GLA 69%

Lease Commence 12/5/2016

Lease Expire 1/31/2027

Annual Rent $134,753

Rent/SF $26.50

Increases In Options

Lease Summary

Base Rent Start End Annual Monthly Increase

12/5/2016 1/31/2027 $134,753 $11,229.38

Option 1 2/1/2027 1/31/2032 $155,347 $12,945.56 15%

Option 2 2/1/2032 1/31/2037 $170,856 $14,238.00 10%

Option 3 2/1/2037 1/31/2042 $187,942 $15,661.80 10%

Option 4 2/1/2042 1/31/2047 $206,756 $17,229.68 10%

KAY Jewelers

GLA 2,250

% of Total GLA 31%

Lease Commence 11/25/2016

Lease Expire 12/31/2026

Annual Rent $74,993

Rent/SF $33.33

Increases 10% Every 5 Years

Lease Summary

Base Rent Start End Annual Monthly Increase

11/25/2016 12/31/2021 $74,993 $6,249.38

1/1/2022 12/31/2026 $82,508 $6,875.63 10%

Option 1 1/1/2027 12/31/2031 $90,743 $7,561.88 10%

Option 2 1/1/2032 12/31/2036 $99,833 $8,319.38 10%



Tenant Overview - Buffalo Wild Wings

TENANT PROFILE

Actual Property

Buffalo Wild Wings was founded in 1982 at a location near The Ohio State University. In 1991, the company began franchising, and in 2003, they completed an initial public offering. Buffalo Wild Wings is listed on the NASDAQ under the symbol BWLD. In 2015 Buffalo Wild Wings generated $1.8 billion in revenue and had a net worth of $655 million. The company now operators over 1,080 restaurants in the United States, Canada, Mexico, and Philippines.

As an established and growing owner, operator, and franchisor, Buffalo Wild Wings offers a variety of boldly-flavored menu items including Buffalo, New York-style chicken wings. A welcoming neighborhood atmosphere that includes an extensive multi-media system, a full bar, and an open layout appeals to

sports fans and families alike. Guests have the option of watching sporting events or other popular programs on projection screens or the approximately 50 additional televisions or playing video games. Buffalo Wild Wings restaurants have widespread appeal and have won dozens of “Best Wings” and “Best Sports Bar” awards across the country.The menu features traditional chicken wings, boneless wings, and other items including chicken tenders, flatbreads, specialty hamburgers and sandwiches, wraps, Buffalito, soft tacos, appetizers, and salads. The bold flavor of 21 different signature sauces and seasonings enhance Buffalo Wild Wing’s made-to-order menu items. The restaurants’ offer approximately 30 domestic and imported beers on tap, including several local or regional craft micro-brews and a wide selection of bottled beers, wines, and liquor. This award-winning food and memorable experience drives guest visits and loyalty.

TENANT TRADE NAME Buffalo Wild WingsOWNERSHIP Public

TENANTBlazin Wings, Incorporated (Corporate Buffalo Wild Wings)

LEASE GUARANTOR Blazin Wings, Incoporated

NUMBER OF LOCATIONS 1,175

HEADQUARTERED Minneapolis, MN

WEB SITE http://www.buffalowildwings.com/

SALES VOLUME $1.81 Billion (2015)

NET WORTH $655 Million (2015)

STOCK SYMBOL BWLD

BOARD NASDAQ

RANK #19 in Fortune 500 (June 2016)

RANK #107 in Fortune 500 (June 2016)



Tenant Overview - Kay Jewelers

TENANT TRADE NAME Kay Jewelers OWNERSHIP Private

TENANT Sterling, Incorporated

LEASE GUARANTOR Sterling, Incorporated

NUMBER OF LOCATIONS 1,500+

HEADQUARTERED Akron, OH

WEB SITE www.SterlingJewelers.com

$1.81 Billion (2015)

SALES VOLUME $6.55 Billion (2015)

NET WORTH $3.06 Billion (2015)

STOCK SYMBOL SIG

BOARD NYSE

Actual Property

Since 1916, Kay Jewelers has grown from one store to more than 900 from coast to coast. As the #1 spe-cialty jewelry brand in the United States, Kay knows that offering fine jewelry at a great price is only part of the story. The company is fully

committed to providing a superior shopping experience - both in our stores and online. The staff is empowered with the knowledge to assist each customer.

Kay Jewelers is a division of Sterling Jewelers Inc., headquartered in Akron, Ohio. Together with Signet Jewelers, the parent company, they are the largest specialty retail jeweler in the world.

Signet Jewelers Limited is listed on the NYSE under the symbol SIG. In 2015 Signet Jewelers had total sales of $6.55 billion and a net worth of $3.06 billion Kay Jewelers has a volume kick out at the end of Year Five if sales do no exceed $1,200,000 in Year Five. The national average for unit level sales is $2,200,000. There is a $37,500 termination fee.

TENANT PROFILE



Aer ia l Overv iew

NORTH

28,000 VPD

56,400 VP

D

10,300 VPD

Cobbs Ford Rd

Cobbs Ford Rd

Old F

arm L

n SInterstate 65

U.S. 82

65

65

82PROPERTY ADDRESS

2475 Cobbs Ford RoadPrattville, Alabama

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Capitol HillGolf Course



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Area Overview & Demographics

1-Mile 3-Mile 5-Mile

P o p u l a t i o n

2000 Population 1,031 15,635 36,189

2010 Population 1,727 22,508 46,464

2016 Population 1,833 24,081 48,902

2021 Population 1,881 24,505 49,641


H o u s e h o l d s

2000 Households 1,497 14,729 42,191

2010 Households 1,860 21,649 56,087

2016 Households 1,958 23,035 59,877

2021 Households 2,086 24,591 63,972


H o u s e h o l d ( H H ) I n c o m e s

2016 Average HH Income $72,134 $85,282 $87,021

2016 Median HH Income $55,739 $67,606 $69,014

2016 Per Capita Income $26,184 $30,330 $31,916



Prattville is in Autauga county, which is about 11 miles northwest of Montgomery and 149 miles Southwest of Atlanta. The city is part of the Mont-gomery metropolitan statistical area (MSA). About 24,303 people live in Prattville, which is also known as “Fountain City,” named for its abundance of arte-sian wells that once flowed through the town. Known as the “birthplace of industry” in Alabama, Prattville’s rich history spans the life and accom-plishments of its founder, the great industrialist, Dan-iel Pratt. Prattville features the Daniel Pratt Historic District, listed in the National Register of Historic Places, where some of the sites date back to the Civil War era.

The Native Americans initially inhabited Prattville. It was in the 1830s that Daniel Pratt of Temple, New Hampshire, chanced upon the gleaming waters of Autauga Creek. He purchased approximately 1,000 acres of land around the creek from Joseph May. Pratt built manufacturing facilities along the banks of the creek so that water could be used as energy for the machineries in the cotton gins. Prattville remains one of the first planned communities of Alabama with separate areas for residences, businesses, schools, and churches.Prattville boasts a wide variety of natural and recre-ational attractions, including golfing, canoeing, hiking, fishing, and other means of entertainment. Prattville’s

cultural and retail attractions, numerous antique and specialty stores, and excellent dining establishments are sure to please almost any taste.The city of Prattville is near several museums in-cluding the Peoples Historical Museum, the Buena Vista-Reservations, and the Autauga County Heri-tage Center. While in the city, one can also visit the local public libraries and churches. There are many parks that offer a range of recreational facilities. The Prattville East Shopping Center, Prattville Plaza Shopping Center, and Skyline Shopping Center are also popular tourist haunts.

Market Overview - Prattvi l le, AL


buffalo wild wings + kay jewelers - constant...

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