exclusive investment opportunityfiles.constantcontact.com/68b94a70101/5bc9a731-3ec5-4410-8dca... ·...

Millenia Partners | Wright Investment Group Commercial Real Estate

Exclusive Investment Opportunity Net Lease Investment | Atlanta, GA

Asking Price: $1,740,000

Virginia I Wright, CCIM | Office: (470) 239-7769 | [email protected] www.WrightInvestmentGroup.com

Information contained herein may have been provided by outside sources and while deemed to be reliable, may be estimated, projected, subject to change, and/orlimited in scope, and therefore should not be relied upon as accurate. Information should be independently confirmed within an applicable due diligence period.

mailto:[email protected]

http://www.WrightInvestmentGroup.com




Table of Contents

Virginia I. Wright, CCIM Principal & Director | Atlanta Office

Millenia Partners | Wright Investment Group Atlanta Office (470) 239-7769 [email protected] www.WrightInvestmentGroup.com

GA License #66445

Executive Summary

Investment Overview

Lease Abstract

Rent Schedule

Tenant Overview

Maps & Aerials

Site Photos

Location Overview

Demographics

Broker Profile

Confidentiality Agreement

3

4

5

6

7

8-9

10-11

12-13

14-16

17

18



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Executive Summary Burger King (NYSE: BKW) is a public company headquartered in Miami, Florida. Burger King is the second largest fast food hamburger chain in the world, with a commitment to premium ingredients, signature recipes, and family-friendly dining experiences that has defined the brand for more than 50 successful years.

The subject property is a 14 year NNN ground lease located in Atlanta, GA. With convenient access off US Highway 23, this Burger King is situated in a dominant retail corridor one mile from Zoo Atlanta, one of Georgia’s major attractions, with over 865,000 visitors per year.

This Burger King is strategically located in a dense retail area with traffic counts of over 25,660 cars per day. It is surrounded by several national and regional retailers including: Kroger, Chase Bank, Dollar General, AutoZone, Advance Auto Parts, Chevron, CVS, Wells Fargo, Aldi, Sonic, Papa John’s, Popeyes, and Church’s Chicken.

The outstanding demographics of this Atlanta suburb (population over 285,000 within 5 miles) are enhanced by the neighboring historical Grant Park, Zoo Atlanta, direct access to Downtown Atlanta, a growing business district, and local tourism. All of which add to the appeal of this Burger King investment, offering investors a reliable, steady cash flow.



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Investment Overview

Property Summary

Address 1130 Moreland Ave SEAtlanta, GA 30316

County Dekalb

APN 15 144 07 001

Building Area +/- 2,132 Sq Ft

Land Area +/- 0.9 Acres

Year Built 2007

Financial Summary

Sale Price $1,740,000

Current NOI $87,000

Cap Rate 5%

S&P Rating B+

Tenant Highlights‣ Burger King is Investment Grade (S&P: B+)‣ 2nd Largest Fast Food Hamburger Chain in

World‣ Operates in Almost Every Country, with Over

14,000 Locations in the Western Hemisphere, Europe and East Asia‣ Continuously Growing Chain, Acquired Tim

Hortons - A Fast Food Network with Over $23 Billion in Sales - Totaling the Company more than 18,000 Restaurants in 100 Countries

Location Highlights‣ Located less than 2 Miles from Downtown

Atlanta‣ Surrounded by National and Regional Retailers‣ 1 Mile from Zoo Atlanta and other Tourist

Attractions‣ Located off of Heavily Trafficked US Highway

23 with Traffic Counts of 25,660 vpd

Market Highlights‣ Strong Demographics‣ Population Over 285,000 within 5 Miles‣ Atlanta, GA is Corporate Headquarters of 18

Fortune 500 Companies‣ Growing Economical Market ‣ Vital Regional and Headquarter Business

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Lease Abstract

Lease Summary

Tenant Trade Name Burger King

Lease Guarantor Burger King Corp.

Lease Term 14 Years

Lease Term Remaining 14 Years

Lease Commence May 4, 2018

Lease Expiration August 15, 2032

Lease Type Ground

Renewal Options Five (5) - 5 Year Options

Rent Increase 10% Every 5 Years & Options

Current Annual Rent $87,000

Rent / Sq Ft $40 / Sq Ft

Repairs & Maintenance Tenant

Property Tax Tenant

Insurance Tenant

Roof & Structure Tenant

Estimated Operating Information

Income

Gross Potential Rent $87,000

Effective Gross Income $87,000

Less: Expenses

Net Operating Income $87,000



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Rent Schedule

Lease Year Date Monthly Rent Annual Rent1 - 4 5/4/2018 - 8/15/2022 $7,250.00 $87,000.00

5 - 9 8/16/2022 - 8/15/2027 $7,975.00 $95,700.00

10 - 14 8/16/2027 - 8/15/2032 $8,772.50 $105,270.00

Option 1

15 - 19 8/16/2032 - 8/15/2037 $9,649.75 $115,797.00

Option 2

20 - 24 8/16/2037 - 8/15/2042 $10,614.75 $127,377.00

Option 3

25 - 29 8/16/2042 - 8/15/2047 $11,676.17 $140,144.00

Option 4

30 - 34 8/16/2047 - 8/15/2052 $12,843.83 $154,126.00

Option 5

35 - 39 8/16/2052 - 8/15/2057 $14,128.17 $169,538.00



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Tenant Overview

Company Profile

Year Founded 1954

Headquarters Miami, FL

# of Employees 34,248

# of Stores 14,372

Revenues (2014) 1.06 Billion

NYSE Symbol BKW

Website www.BK.com

Stores Burger King now owns and operates over 14,000 locations all over the world. After acquiring Tim Hortons, the purchase brings Burger King the biggest seller of coffee and doughnuts in Canada, which it can use to grow internationally. The deal also lets the burger chain push into the grocery business by selling packaged coffees at supermarkets in North America. The combined business would create a fast-food network with $23 billion in sales, including franchisees, and more than 18,000 restaurants in 100 countries.

Financial Burger King, owned by Canadian Restaurant Brands International Inc., reported that same-store sales jumped 6.9% in 2015, the most in more than nine years. Restaurant Brands, the world’s third-largest fast-food company, used promotions and discounted items to boost sales at Burger King in an increasingly competitive industry. The results contrasted with those of McDonald’s Corp., which has struggled to pull itself out of a sales slump. Burger King now boasts over $1 billion in revenues, and plans to see this revenue increase for years to come.



History In 1954, Keith Kramer and Matthew Burns were looking for a restaurant concept. After purchasing the rights to two pieces of equipment called "Insta" machines, the two opened their first stores around a cooking device known as the “Insta-Broiler”. After the original company began to falter in 1954, it was purchased by its Miami, Florida, franchisees, James McLamore and David Edgerton. By 1961, the reinvented Burger King and its signature burger, the Whopper, had begun to spread across the United States.

In 1967, the Pillsbury Company bought Burger King Corporation for $18 million, and with the baking company's capital behind it, by the late 1970s, Burger King was able to grow to become America's second-largest burger chain, behind McDonald's.

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http://www.BK.com

http://www.bloomberg.com/news/articles/2014-12-01/burger-king-brings-back-yumbo-ham-sandwich-after-40-year-hiatus

http://www.bloomberg.com/news/articles/2014-12-01/burger-king-brings-back-yumbo-ham-sandwich-after-40-year-hiatus




Retail Map1130 Moreland Ave SEAtlanta, GA 30316



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Location Maps



1130 Moreland Ave SEAtlanta, GA 30316

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Drive Through Site








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Neighboring Retail *Out Parcel to Kroger Store & Fuel Station





Millenia Partners | Wright Investment Group

Commercial Real Estate

Location Overview

The City of Atlanta, GA



Atlanta is the sprawling capital of Georgia. It played an important part in both the Civil War and the 1960s Civil Rights Movement. Atlanta History Center chronicles the city's past, and the Martin Luther King Jr. National Historic Site is dedicated to the African-American leader’s life and times. Downtown, 21-acre Centennial Olympic Park, built for the 1996 Olympics, encompasses the massive Georgia Aquarium.

Today the fast-growing city remains a transportation hub, not just for the country but also for the world: Hartsfield Atlanta International Airport is one of the nation's busiest in daily passenger flights. Direct flights to Europe, South America, and Asia have made metro Atlanta easily accessible to the more than 1,000 international businesses that operate here and the more than 50 countries that have representation in the city through consulates, trade offices, and chambers of commerce. The city has emerged as a banking center and is the world headquarters for 18 Fortune 500 companies.

In the past two decades, Atlanta has experienced unprecedented growth -- the official city population remains steady, at about 445,000, but the metro population has grown in the past decade by nearly 40 percent, from 2.9 million to over 4 million people. A good measure of this growth is the ever-changing downtown skyline, along with skyscrapers constructed in the Midtown, Buckhead, and outer perimeter (fringing I-285) business districts.

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2015 Demographics (STDB)1 Mile

Population 9,527

Households 4,058

Average Household Income 78,610

3 MilePopulation 101,329

Households 42,938


5 MilePopulation 294,055

Households 124,170


Statistics Atlanta, GAPopulation 447,841

Median Age 33.1

Median Home Value $200,900

Median Household Income $46,485

Average Household Size 2.15

Area 132.4 Sq Mi

Location Overview



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Broker Profile

Recent Transactions Include:

Lowe’s(Charlotte, NC)

$7,700,000

Arizona’s Steakhouse(Lithonia, GA)

$2,730,000

Buddy’s Rents-Leaseback(Portfolio of 9 stores)

$11,908,235

Rader Building(Duncan, SC)

$3,295,000

Lear Building(Duncan, SC)

$10,750,000

Medical Building(Austell, GA)

$5,610,000

FedEx Ground(Crestview, FL)

$6,125,000

Golden Corral (Austell, GA)

$3,300,000

Holiday Inn(Atlanta, GA)

$6,100,000

CVS Pharmacy (Lawrenceville, GA)

$2,600,000

Walgreens (Anderson, SC)

$3,800,000

Virginia I. WrightVirginia is Principal and Director of the Atlanta office of Millenia Partners Capital Group, bringing over 25 years of marketing, communications, finance, sales, and operational management experience to the firm. Specializing in the single tenant net lease retail segment, she is also experienced in industrial and medical as well as sale leasebacks. Throughout her real estate career, Virginia has developed exceptional underwriting and negotiation skills while closing over $150MM in net lease transactions in 8 states.

She provides advisory, acquisition and disposition services to numerous corporate, institutional and private clients, private equity groups, preferred developers, franchisees, REITS, and build-to-suit specialists nationwide, with a focus on assisting buyers and sellers through the intricacies of 1031 exchanges.

As a result of her extensive transaction experience and knowledge, Virginia has established herself as a premier broker that is committed to providing superior client service, while embracing a philosophy of integrity and professionalism. This has enabled her to cultivate and foster long lasting relationships with her clients.

As a Certified Commercial Investment Member (CCIM) of the CCIM Institute, Virginia has achieved the highest designation in the field of commercial real estate. Only 6% of commercial real estate broker/agents nationwide have the CCIM designation. Virginia is also a member of various professional organizations including the National and Atlanta Commercial Board of Realtors, the International Council of Shopping Centers, and the CCIM Georgia Chapter.

A Michigan native who relocated to Atlanta in 1994, Virginia received her BA in International Business from American InterContinental University.

Professional Affiliations:‣ Certified Commercial

Investment Member (CCIM)‣ GA CCIM Chapter Member‣ International Council of

Shopping Centers (ICSC)‣ GA Real Estate License‣ FL Real Estate License‣ SC Real Estate License

Virginia I. Wright, CCIM Principal & Director | Atlanta Office

Millenia Partners | Wright Investment Group Atlanta Office (470) 239-7769 Mobile: (770) 833-5825 [email protected] www.WrightInvestmentGroup.com

Atlanta Office 11175 Cicero Drive, Suite 100 Alpharetta, GA 30022



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Confidentiality Agreement This Confidentiality Agreement (“Agreement”) is made and agreed to for the benefit of the undersigned party (“Prospect”), the owner of the subject property (the “Seller”) and undersigned agent Millenia Partners, LLC (“Broker”). Now therefore in consideration of the privileges granted to Prospect with respect to receiving certain confidential information, and other good and valuable consideration, the Prospect hereby agrees to the following:

I. Confidential Information: Prospect will receive confidential information regarding property referred to as 1130 Moreland Ave SE, Atlanta, GA 30316. Prospect agrees to not disclose to any person that the Property or the note may be available for sale or lease, or that discussions or negotiations are taking place concerning a possible purchase of the Property or the note, nor any terms, conditions, or other facts with respect to the Property or the note, including but not limited to tenant information, lease rates, lease expirations, income and expenses, and any such possible purchase, including the status thereof. The term “person” used in this agreement shall be interpreted broadly and shall include, without limitation, any corporation, company, partnership or individual other than parties to which Broker approves in writing. Prospect agrees to not contact the Seller, the management, the tenants, the lender, the vendors, the insurers, the employees or the customers of any business at the site.

II. Acting as a Principal

Prospect hereby warrants that it is acting as a principal only, and not as a broker or agent, regarding this contemplated transaction. Prospect acknowledges and agrees that Millenia Partners, LLC., will act in an agency capacity representing the Seller, and will be used as the sole broker or agent in connection with the purchase of the property. Millenia Partners, LLC, will be paid a commission by the Seller. Prospect agrees to not be involved in any arrangement to lease or purchase the property, in whole or in part, as a lender, partner, buyer of the note, buy in foreclosure, buy from bankruptcy court, or in any other manner acquire an investment in or control of the property, unless Millenia Partners, LLC is included as the selling agent and is compensated as described herein. Prospect reserves the right to involve any lender, underwriter, equity partners, attorney or other advisor in the transaction provided said party is paid by the Prospect, and said party has agreed in writing to this confidentiality agreement.

III. Governing Law

This Agreement shall be governed and construed in accordance with the laws of the State of Georgia. Accepted and agreed to this _______ day of ___________________, 2018.

Signature______________________________________ Printed Name___________________________________ Title___________________________________________ Phone_________________________________________ Fax___________________________________________ Company Name_________________________________ Address________________________________________ Email__________________________________________

Virginia I WrightGA License #66445Millenia Partners, LLCPrincipal & Director | Atlanta Office O. (470) 239-7769 [email protected] www.WrightInvestmentGroup.com







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