NOR

TEMPLE, TX

A FREESTANDING ABSOLUTE NET LEASED QUICK SERVICE RESTAURANT WITH DRIVE-THRU

DAIRY QUEEN

2

DAVE LUCASdlucas@capitalpacific.comPH: 415.274.7390CA DRE# 01389761

Contact the team

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.

IN CONJUNCTION WITH TX LICENSED BROKER:Steve SielingAzur Commercial Capital, LLC214.888.8262

ANTHONY SEILERaseiler@capitalpacific.comPH: 415.274.7391CA DRE# 02082399

DAIRY QUEEN15 NORTH 7TH STREET, TEMPLE, TX 76501

SECOND LARGEST DAIRY QUEEN FRANCHISEE: OPERATES 43 LOCATIONS IN TEXAS

7.00%CAP

$1,118,000PRICE

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Overview

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.

NOI: $78,264PRICE/SF: $474.13ORIGINAL LEASE TERM: 20 YEARSLEASE TERM REMAINING: 5 YEARSLEASE TYPE: ABSOLUTE NNNLEASABLE AREA: 2,358 SFLAND AREA: 16,501 SF

Investment Highlights

THE OFFERINGThe offering is an absolute net leased Dairy Queen with five years remaining on its original twenty-year lease. The tenant has four 5-year renewal options, complete with scheduled increases. The tenant, Square 1 Restaurants, is the second largest Dairy Queen franchisee in the U.S. with 43 locations in Texas, generating approximately $30-$40 million in gross revenue, annually. Texas is home to more Dairy Queen locations than any other state in the U.S.

• Over five years remaining on an initial twenty year lease

• Four 5-year options with scheduled increases

• Includes drive-thru and pylon sign

• Temple is located along Highway 35, between Austin and Dallas

• Only a 30-minute drive from Killeen Municipal Airport

• Franchisee operates 43 locations in Texas, generating over $30-40 million in revenue

HIGHLIGHTS

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The subject property is a 2,358 SF restaurant sitting on 16,500 square feet of land in the heart of Temple, TX. The property features a drive-thru and excellent signage. This highly trafficked hard corner location sees over 22,000 vehicles per day. The property is just two blocks from the Temple Train Station and Bus Center, and only a thirty-minute drive from Killeen Municipal Airport.

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.

The city of Temple is home to many regional distribution centers and is headquarters to two large, multinational companies, Wilsonart International and McLane Company. Temple is also home to the Temple Bottling Company, which produces Dr Pepper. Temple has an extensive medical community, mainly due to Baylor Scott & White Medical Center, which has numerous facilities in Temple, and Temple College, a leading post secondary junior college with a focus on health services. Temple is located along highway 35, at a midpoint between Austin and Dallas.

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Income & Expense

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.

CURRENTPrice: $1,118,000

Capitalization Rate: 7.00%

Price Per Square Foot: $474.13

Down Payment 30% $335,400

Loan Amount 70% $782,600

Total Leased (SF): 100.00% 2,358

Total Vacant (SF): 0.00% 0

Total Rentable Area (SF): 100.00% 2,358

Lot Area (SF) 16,501

INCOME P/SFScheduled Rent $33.19 $78,264

EFFECTIVE GROSS INCOME $78,264

EXPENSE P/SFProperty Taxes NNN

Insurance NNN

Utilities NNN

TOTAL OPERATING EXPENSES $0.00 $0

NET OPERATING INCOME $78,264

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Rent Roll

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.

TENANT INFO LEASE TERMS RENT SUMMARY

TENANT SQ. FT PERCENT OF LOT TERM MONTHLY

RENTANNUAL

RENTRENT/FT/

YRLEASE TYPE

Dairy Queen 2,358 100.00% 6/1/2005 5/31/2025 $6,522.00 $78,264.00 $33.19 NNN

Option 1 6/1/2025 5/31/2030 $7,174.00 $86,088.00 $36.51

Option 2 6/1/2030 5/31/2035 $7,892.00 $94,704.00 $40.16

Option 3 6/1/2035 5/31/2040 $8,681.00 $104,172.00 $44.18

Option 4 6/1/2040 5/31/2045 $9,549.00 $114,588.00 $48.60

Current Totals: 2,358 100.00%

Occupied 2,358 100.00% 2020 Total Monthly Rent: $6,522.00

Vacant 0 0.00% 2020 Total Annual Rent: $78,264.00

PYLON SIGN

MENU BOARD

W A

DA

MS

AVEN

UE

ALLEY

N 7TH STREET

BO

LLA

RDS

WALL

WA

LL53

53

UTILITY SHED

DRIVE THRU

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30SPACES

2,358RENTABLE SF

16,501LAND AREA SF

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. 7

Site Plan

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Dairy Queen Overview

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.

ABOUT DAIRY QUEEN

Dairy Queen is an American chain of soft serve ice cream and fast-food restaurants owned by International Dairy Queen Inc., (IDQ). IDQ is based in Minneapolis, Minnesota, which, through its subsidiaries, develops, licenses, and services a system of more than 6,900 locations in the United States, Canada, and more than 25 other countries. IDQ is a subsidiary of Berkshire Hathaway Inc., it was acquired in 1998 for $585 million in cash and stock. Berkshire Hathaway Inc. reported earnings of $4 billion in 2018.

Dairy Queen restaurants offer a variety of treats and products including burgers, chicken strips, chicken sandwiches, artisan sandwiches, and the famous DQ soft-serve, and is a leader in the quick-service restaurant industry in both the U.S. as well as internationally. Today, the DQ system is a $4.5 billion brand.

LOCATIONSWORLDWIDE6,900

NUMBER OF COUNTRIES DAIRY QUEEN HAS

LOCATIONS IN 25

NUMBER OF FRANCHISEES2,931

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Franchisee Overview

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.

ABOUT SQUARE 1 RESTAURANTS

According to Franchise Times Magazine, Square 1 RestaurantsLLC is the second largest Dairy Queen Franchisee in the United States. It operates approximately 43 locations in Texas and employs roughly 700 workers. The company generates approximately $30-$40 million in annual revenue.

Square 1 Restaurants is based in Irving, TX. In 2018, Square 1 Investments successfully restructured the business through a Chapter 11 bankruptcy filing which enabled the company to close 30 underperforming restaurants and emerge after only 8 months a healthier and more profitable business. According to CEO Bill Spae, “This decision was based solely on what’s best to have a healthy company and ensure the long-term success of our core restaurants for our customers, employees and other stakeholders,” Spae has been in franchising for more than 40 years.

REVENUE

$30-$40 MLOCATIONS IN TEXAS43

# OF EMPLOYEES 7009

Retail Aerial

10This 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.

22,000VPD

25,000VPD

W CEN

TRAL AV

ENU

E

W CEN

TRAL AV

ENU

E

N 7TH STREET

N 7TH STREET W ADAMS AVENUE

W ADAMS AVENUE

TEMPLE HIGH

SCHOOL

WOODSON FIELD

35

PURIFOY & CO

HAL-ROSE HEAD STARTKABLER

AUTOMOTIVE

RICK’S PAINT BODY SHOP

BAIRD-WILLIAMS CONSTRUCTION

LENGEFELD LUMBER CO SWIFTY

STICKER

53

53

STORAGE 4-U

TEXAS WILDCAT

PARKING & STORAGE

10

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.

11

TEMPLE TRAIN

STATION

-TEMPLE TRAIN STATION

Amtrak is located in Temple’s historic Atchison, Topeka & Santa Fe (ATSF) station, built in 1911. In 1985, Santa Fe vacated the building. In 1995, the city of Temple purchased the depot and five acres of surrounding land. The city received $2.4 million in ISTEA funds and restorations began in September 1999.

GREYHOUND BUS

STATION

2019 ANNUAL STATION REVENUE$786,665

2019 ANNUAL STATION RIDERSHIP 15,371

Temple Train Station

TEMPLE CHAMBER OF COMMERCE

TEMPLE INDEPENDENT

SCHOOL DISTRICT

35

35

35

35

35

14

190

190

363

363 363

363

95

53

53

36

W ADAMS W ADAMS AVENUEAVENUE

NO

RTH

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ORT

H

7TH

7T

H

STRE

ETST

REET

AIRPORT ROAD

AIRPORT ROAD

AIRPORT ROAD

AIRPORT ROAD

E ADAMS E ADAMS AVENUEAVENUE

NE H

K DO

DG

EN LO

OP

NE H

K DO

DG

EN LO

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SE HK SE HK DODGEN

DODGEN LOOPLOOP

NW HK DODGEN LOOPNW HK DODGEN LOOP

OLIN E. TEAGUE

VETERAN’S MEDICAL CENTER

BS&W MEDICAL CENTER

BS&W CONTINUING

CARE HOSPITAL 

TEMPLE MEDICAL CENTER

DRAUGHON MILLER

REGIONAL AIRPORT

TEMPLE COLLEGE

ACADEMY

SCHOOL

SCHOOL

MIDDLE SCHOOL

MIDDLE SCHOOL

MIDDLE SCHOOL

MIDDLE SCHOOL

HIGH SCHOOL

HIGH SCHOOL

CITY OF TEMPLE

CITY OF TEMPLE

STATE OF TEXAS

BELL COUNTY 

HIGH SCHOOL

HIGH SCHOOL

HIGH SCHOOL

WATER PARK

MARINA

GOLF COURSE

GOLF COURSE

GOLF COURSE

SPORTS COMPLEX

SPORTS COMPLEX

SPORTS COMPLEX

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

MIDDLE SCHOOL

DISTRIBUTION DISTRIBUTION

96,000 VPD

88,000 VPD

62,000 VPD

DALLAS128 MI

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Aerial

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.

AUSTIN74 MI

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Demographics

POPULATION

1-MILE 3-MILES 5-MILES

2010 9,173 41,419 59,497

2019 9,768 43,652 65,130

2024 10,295 45,931 68,938

2019 HH INCOME

1-MILE 3-MILES 5-MILES

Average $41,589 $54,496 $66,032

TOP EMPLOYERS IN TEMPLE

EMPLOYER

Baylor Scott & White Healthcare 7,793

McLane Company, Inc. 1,564

Wilsonart International 949

Pactiv Corporation 850

Walmart Distribution Center 767

TEMPLE

THE AVERAGE HOUSEHOLD INCOME WITHIN A 5-MILE RADIUS

IS OVER $66K

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HOUSTON(168 MILES)

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.

SHREVEPORT

DALLAS(128 MILES)

AUSTIN(74 MILES)

WACO

FORT WORTH

LOUISIANA

ARKANSAS

TEMPLE, TEXAS

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Location Overview

TEMPLE is located in Bell County and is home to over 74,000 residents. Temple has the distinction of being the demographic center of Texas and is located within three hours from Dallas, Houston, and San Antonio.

The world headquarters of McLane Company and Wilsonart International are located in Temple, along with Baylor Scott & White Health, who recently started a multi-million dollar expansion of their facility in Temple. The city has grown steadily because of its diverse economy - agriculture, transportation, manufacturing and medicine.

450,051KILLEEN-TEMPLE MSA POPULATION (ESTIMATED)

CENTRAL TEXAS COLLEGE

KILLEEN-TEMPLE METRO AREA has an estimated population of 435,887. It is home to Central Texas College, University of Mary Hardin-Baylor, and Temple College, enrolling a combined total of

5,400 students annually.

The major industries of employment within the MSA are healthcare and social assistance, retail trade, and public administration. The MSA also has a high number of mining, quarrying, oil, gas extraction, and waste management services, compared to nearby metropolitan areas.

ABOUT THE MSA

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.

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Temple College

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.

ABOUT TEMPLE COLLEGE

Temple Junior College was founded in 1926 in response to the need for a postsecondary institution in Temple. Temple College became a leader in education for health professions with the opening of a new Health Sciences Center and Clinical Simulation Center in 2004. With an enrollment of about 5,000 students, the college is large enough to maintain a flexible and varied program.

The campus in Temple now exceeds 108 acres, including 27 buildings. The University Courtyard Apartments provide apartment-style student housing and the Temple College Apartments provide housing for low-income student families. Both facilities are located on the east side of the Temple campus. The Danny Scott Sports Complex includes a gymnasium, fitness center, baseball and softball fields, and an intramural field.

2019 TOTAL CREDIT STUDENT

ENROLLMENT6,896

SIZE OF CAMPUS108 acres

BUILDINGS ON CAMPUS

27

Copyright © 2020 Capital Pacific Partners

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.

Contact us.

CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM.

DAVE LUCASdlucas@capitalpacific.comPH: 415.274.7390CA DRE# 01389761

CAPITALPACIFIC.COM

IN CONJUNCTION WITH TX LICENSED BROKER: Steve SielingAzur Commercial Capital, LLC214.888.8262

ANTHONY SEILERaseiler@capitalpacific.comPH: 415.274.7391CA DRE# 02082399

11-2-2015

TYPES OF REAL ESTATE LICENSE HOLDERS: A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker’s own interests; Inform the client of any material information about the property or transaction received by the broker; Answer the client’s questions and present any offer to or counter-offer from the client; and Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary:

Must treat all parties to the transaction impartially and fairly; May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and

buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. Must not, unless specifically authorized in writing to do so by the party, disclose:

ᴑ that the owner will accept a price less than the written asking price;ᴑ that the buyer/tenant will pay a price greater than the price submitted in a written offer; andᴑ any confidential information or any other information that a party specifically instructs the broker in writing not to

disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker’s duties and responsibilities to you, and your obligations under the representation agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Information About Brokerage Services Texas law requires all real estate license holders to give the following information about

brokerage services to prospective buyers, tenants, sellers and landlords.

.

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov

IABS 1-0

Date Buyer/Tenant/Seller/Landlord Initials

Sales Agent/Associate’s Name License No. Email Phone