burger king - images1.loopnet.com...ron duong . senior vice president investments senior director,...

BURGER KING120+ UNIT OPERATOR

2 6 2 4 M I L T O N AV E N U E , J A N E S V I L L E , W I 5 3 5 4 5

RON DUONG Senior Vice President Investments Senior Director, National Retail Group (949) 419-3233 [email protected] Lic. CA 01438643

CRAIG ELSTER Senior Associate Net Leased Properties Group (949) 419-3223 [email protected] Lic. CA 01958307

JOHNNY LE Associate Net Leased Properties Group (949) 419-3249 [email protected] Lic. CA 02039329

BROKER OF RECORD: Todd Lindblom Regional Manager, Milwaukee License: 56163-90

EXCLUSIVELY LISTED BY:

Offering Memorandum Disclaimer

This Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement (the “Confidentiality Agreement”) signed by you and constitutes part of the Confidential Information (as defined in the Confidentiality Agreement). It is being given to you for the sole purpose of evaluating the possible investment in the subject property mentioned herein (“the “Project”), and is not to be used for any other purpose or made available to any other party without the prior written consent of the Seller of Record (“Managing Member”), or its exclusive broker, Marcus & Millichap (“Exclusive Broker”). This Memorandum was prepared by Exclusive Broker based primarily on information supplied by Managing Member. It contains select information about the Project and the real estate market but does not contain all the information necessary to evaluate the Project. The financial projections contained herein (or in any other Confidential Information) are for general reference only. They are based on assumptions relating to the overall economy and local competition, among other factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents. While the information contained in this Memorandum and any other Confidential Information is believed to be reliable, neither Exclusive Broker nor Managing Member guarantees its accuracy or completeness. Because of the foregoing and since the investment in the Project is being offered on an “As Is, Where Is” basis, a prospective investor or other party authorized by the prospective investor to use such material solely to facilitate the prospective purchaser’s investigation, must make its independent investigations, projections and conclusions regarding the investment in the Project without reliance on this Memorandum or any other Confidential Information. Although additional Confidential Information, which may include engineering, environmental or other reports, may be provided to qualified parties as the marketing period proceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineers and environmental experts. Neither Exclusive Broker nor Managing Member guarantees the accuracy or completeness of the information contained in this Memorandum or any other Confidential Information provided by Exclusive Broker and Managing Member. Managing Member expressly reserves the right, at its sole discretion, to reject any offer to invest in the Project or to terminate any negotiations with any party at any time with or without written notice. Managing Member shall have no legal commitment or obligations to any prospective investor unless and until a written sale agreement has been fully executed, delivered and approved by Managing Member and any conditions to Managing Member’s obligations thereunder have been satisfied or waived. Managing Member has retained Exclusive Broker as its exclusive broker and will be responsible for any commission due to Exclusive Broker in connection with a transaction relating to the Project pursuant to a separate agreement. Exclusive Broker is not authorized to make any representation or agreement on behalf of Managing Member. Each prospective investor will be responsible for any claims for commissions by any other broker in connection with an investment in the Project if such claims arise from acts of such prospective investor or its broker. This Memorandum is the property of Managing Member and all parties approved by Managing Member and may be used only by parties approved by Managing Member. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement.

MARCUS & MILLICHAP / WI JANESVILLE BURGER KING / 2

EXECUTIVE SUMMARY

Prime Retail Location & Investment Opportunity

f Absolute NNN Lease with No Management or Maintenance Responsibilities – Ideal for Investors Not Local to the Market

f Located at the Entrance to Uptown Janesville, a ±627,000 Square Foot Regional Mall that was Recently Purchased by a Private Equity Firm for Repositioning

f Lease Guaranty with Experienced and Growing 120+ Unit Operator

f Strong Store-Level and System-Wide Sales – Please Contact Agents for More Details

Strong Real Estate Fundamentals

f Signalized, Corner Location with Excellent Exposure on Milton Avenue, a Main Thoroughfare for the Area

f Oversized Lot of ±1.04 Acres (±45,302 Square Feet)

f Close Proximity to Major Retailers such as Dick’s Sporting Goods, Kohl’s, ULTA Beauty, Hobby Lobby, Target, and Many More

f Janesville is Centrally Located Between Madison, WI, Beloit, WI, and Rockford, IL, Major Cities in the Region

Absolute NNN Investment - Essential Business

±16.5 Years Remaining on Base Term + Four, Five-Year Options - Rare 1% Annual Increases

120+ Unit Operator Headquartered in Chicago, IL - States in Operation Include IL, WI, MI, MN, SD, and IN

Strong Insulation from E-Commerce/Internet Competition and Restaurants are Considered an Essential Business


TENANT OVERVIEW

Burger KingFounded in 1954, Burger King (“BK”) is the world’s second largest fast food hamburger restaurant (“FFHR”) chain as measured by total number of restaurants.

As of December 31, 2017, they owned or franchised a total of 16,767 BK restaurants in more than 100 countries and U.S. territories. BK restaurants are quick service restaurants that feature flame-grilled hamburgers, chicken and other specialty sandwiches, french fries, soft drinks and other affordably-priced food items.

In 2010, 3G Capital, a global multi-million dollar investment firm focused on long term value creation, purchased Burger King Corporation, making it a privately-held company. In December 2014, 3G Capital completed the combination of Burger King and Tim Hortons, forming Restaurant Brands International.

Cave Enterprises, Inc.Founded in 1999, Cave Enterprises is a growing 120-unit Burger King Franchisee successfully operating restaurants in IL, IN, WI, MN, MI, and SD.

Please contact Agents for additional details on store sales and the franchisee.

Cave Enterprises, Inc. - 120+ Unit Burger King Operator

f Opened its First Burger King Location in 1999

f Expanded from 8 Locations in 2006 to 120+ Locations Today

f Headquartered in Chicago, IL

f $165,000,000+ in System-Wide Sales

f Locations in IL, WI, MI, MN, SD, and IN with a Specific Focus on IL and WI Locations

f Additional Stores Under Development

f Strong Store Sales - Please Contact Agents for More Details


Aerial Photo

MARKET OVERVIEW

SUBJECT PROPERTY

Uptown JanesvilleUptown Janesville68+ Stores 68+ Stores

±627,128 SF±627,128 SF

The Market PlaceThe Market Place

Industrial &Industrial &ManufacturingManufacturing

BusinessesBusinesses

Milt

on A

venu

e

Milt

on A

venu

e

Humes RoadHumes Road

To Madison, WI

To Madison, WI

To Rockford, IL

To Rockford, IL


FINANCIAL ANALYSIS

Offering SummaryProperty Name Burger King

Property Address2624 Milton AvenueJanesville, WI 53545

Assessor’s Parcel Number 0219200071

Year Remodeled 2012

Gross Leasable Area (GLA) ±3,982 Square Feet

Lot Size ±1.04 Acres (±45,302 Square Feet)

PricingPrice $2,341,000

Cap Rate 5.50%

Price Per Square Foot $587.90

Annualized Operating DataGross Potential Rent $128,788*

Expense Reimbursements Absolute NNN

Net Operating Income $128,788

Lease InformationLease Commencement Date August 1, 2018

Lease Expiration Date December 31, 2036

Lease Term Remaining ±16.5 Years

Increases 1% Annual

Options Four, Five-Year

Store Sales Available Upon Request

Operator/Guarantor Cave Enterprises, Inc.120+ Units

Right of First Refusal Yes - 10 Business Days

*Rent is as of August 1, 2021. Seller will credit the difference in rent to Buyer at close of escrow.


Regional Map

MARKET OVERVIEW

±627,128 SFSQUARE FOOTAGE OF THE

ADJACENT JANESVILLE MALL

±63,957CITY OF JANESVILLE TOTAL POPULATION

±40 MILESTO CHICAGO ROCKFORD

INTERNATIONAL AIRPORT (RFD)

±50,000TRAFFIC COUNTS ON MILTON

AVENUE & HUMES ROAD

SUBJECT PROPERTY


MARKET OVERVIEW

The City Of Janesville, WIJanesville, Wisconsin, in Rock county, is 61 miles SW of Milwaukee, Wisconsin. The city is conveniently located inside the Janesville-Beloit metropolitan area.

Janesville was established on the east bank of the Rock River in 1835. The area was named in honor of Henry Janes, who was an early settler. The initial development in the town depended on waterpower generated from the river. The first Wisconsin Fair took place in the community in 1851.

Major Attractions

f Rockport Park (4 miles away) is Janesville’s largest park at 246 acres). The park has a 50 meter outdoor pool, picnic tables, playground equipment and well-marked trails of varying degrees of difficulty used for hiking, biking and cross country skiing.

f Rotary Botanical Gardens (4 miles away) an award winning 20-acre, not profit botanic showcase with over 26 different garden styles and 4,000 varieties of plants.

f La Follette County Park (26 miles away) is a historic site that has shore fishing, canoe/kayaking launch, shaded picnic areas, wildlife viewing, restrooms and reservable shelters.

f Brodhead Depot Museum (23 miles away) was restored in the Milwaukee Road depot, built in 1881. Displays include many artifacts, photographs and documents from Broadhead’s rich past.

f Janesville Sports Complex – Youth baseball & softball association (4 miles away).

Nearby Major Traffic Generators

f WW Grainger Corporate Office – Fortune 500 company employing 25,700 employees – 4 miles from subject property

f Milwaukee, WI & Lake Michigan – 70 miles

f Chicago Rockford International Airport (RFD) – 40 miles

f University of Wisconsin – 38 miles

f Chicago, IL – 109 miles


$70,6052019 3-MILE AVERAGE HOUSEHOLD INCOME

Population 1-Mile 3-Miles 5-Miles

2024 Population 5,049 48,034 68,489

2019 Population 5,037 48,153 68,698

2014 Population 4,916 47,257 67,535

2010 Population 4,954 45,155 64,418

Households 1-Mile 3-Miles 5-Miles

2024 Households 2,264 19,847 27,773

2019 Households 2,251 19,796 27,716

2014 Households 2,203 19,474 27,287

2010 Households 2,239 18,137 25,402

2024 Owner Occupied Housing 46.9% 64.2% 66.4%

2024 Rent Occupied Housing 53.1% 35.8% 33.6%


2019 Renter Occupied Housing 52.7% 35.8% 33.5%


2010 Renter Occupied Housing 48.8% 33.8% 31.5%

Income 1-Mile 3-Miles 5-Miles

2019 Average Household Income $51,805 $70,605 $70,165

2019 Median Household Income $42,749 $55,904 $55,065

$ 0 - $ 14,999 11.2% 9.8% 9.6%

$ 15,000 - $24,999 15.8% 11.8% 11.7%

$ 25,000 - $34,999 12.9% 9.7% 9.9%

$ 35,000 - $49,999 18.4% 13.4% 14.0%

$ 50,000 - $74,999 20.8% 20.9% 21.5%

$ 75,000 - $99,999 11.8% 14.8% 14.4%

$100,000 - $124,999 5.2% 8.5% 8.4%

$125,000 - $149,999 1.4% 4.8% 4.3%

$150,000 - $200,000 2.1% 3.6% 3.5%

$200,000 to $249,999 0.2% 1.2% 1.2%

$250,000 + 0.3% 1.5% 1.5%

Demographic Summary

MARKET OVERVIEW


Marcus & Millichap / 19800 MacArthur Boulevard, Suite 150, Irvine, CA 92612

©2020 Marcus & Millichap. All rights reserved. The material in this presentation has been prepared solely for information purposes, and is strictly confidential. Any disclosure, use, copying or circulation of this presentation (or the information contained within it) is strictly prohibited, unless you have obtained Marcus & Millichap’s prior written consent. The views expressed in this presentation are the views of the author and do not necessarily reflect the views of Marcus & Millichap. Neither this presentation nor any part of it shall form the basis of, or be relied upon in connection with any offer, or act as an inducement to enter into any contract or commitment whatsoever. NO REPRESENTATION OR WARRANTY IS GIVEN, EXPRESS OR IMPLIED, AS TO THE ACCURACY OF THE IN-FORMATION CONTAINED WITHIN THIS PRESENTATION, AND MARCUS & MILLICHAP IS UNDER NO OBLIGATION TO SUBSEQUENTLY CORRECT IT IN THE EVENT OF ERRORS.

BURGER KING120+ UNIT OPERATOR

2 6 2 4 M I L T O N AV E N U E , J A N E S V I L L E , W I 5 3 5 4 5

EXCLUSIVELY LISTED BY:

RON DUONG Senior Vice President Investments Senior Director, National Retail Group (949) 419-3233 [email protected] Lic. CA 01438643

CRAIG ELSTER Senior Associate Net Leased Properties Group (949) 419-3223 [email protected] Lic. CA 01958307

JOHNNY LE Associate Net Leased Properties Group (949) 419-3249 [email protected] Lic. CA 02039329

BROKER OF RECORD: Todd Lindblom Regional Manager, Milwaukee License: 56163-90

burger king - images1.loopnet.com...ron duong . senior vice president investments senior director,...

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