hardee's 2935 s mckenzie st foley al -...

™2935 S MCKENZIE ST, FOLEY, AL 36535

HARDEE’S

OFFERING MEMORANDUM

CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Hardee’s located at 2935 S McKenzie St, Foley, AL 36535 (“Property”) . I t has been prepared by Matthews Retai l Advisors . This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors . The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completweness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

TABLE OF CONTENTS

05. Execut ive Summary

07. Property Overv iew

13. Tenant Overv iew

14. Area Overv iew

15. Demographics

2935 S MCKENZIE ST, FOLEY, AL 36535

HARDEE’S

™

Connor OlandtAssociate

License No. 01985082O 949.432.4504M [email protected]

Calvin ShortVP & Senior Director - STNL


Kyle MatthewsBroker of Record

License No. 00109289

EXECUTIVE SUMMARY

Hardee’s | 4

INVESTMENT HIGHLIGHTS

LONG TERM INVESTMENT OPPORTUNITY

• 14.75 years remaining on initial lease term • 7.50% rental increases every five years - provides a good

hedge against inflation• Absolute NNN investment - Zero landlord responsibilities• Newer construction building - most recent prototype.

Renovated in 2011 • Foley, AL has seen a 30% increase in population over the past

five years

GOOD MIX OF SURROUNDING NATIONAL RETAILERS• The offering sits as an outparcel to the only Home Depot

serving the immediate area• Hardee’s is situated within the main retail corridor on Mckenzie

Street which boasts ±31,000 vehicles per day• Surrounding tenants include Lowe’s, Big Lots, Hobby Lobby,

Chick-Fil-A, Pier 1 Imports and a large shopping mall - Tanger Outlets

SEASONED FRANCHISEE OPERATOR• Paradigm Investment Group is the second largest Hardee’s

franchisee, successfully operating ±106 locations with over $3.4 billion in sales

• Carl Karcher Enterprises (CKE) is one of the largest national QSR concepts in the world with over 3,100 Carl’s Jr and Hardee’s locations

Matthews Retail Advisors | 5

Executive Summary

HARDEE’S2935 S McKenzie StFoley, AL 36535

List Price ............................................................................................$2,140,000

CAP Rate - Current ................................................................................... 5.75%Gross Leasable Area ........................................................................±2,703 SF Lot Size ..................................................................... ± 1.16 Acres (50,529 SF) Year Built/Renovated .......................................................................2003/2011

Annualized Operating DataMonthly Rent Annual Rent Cap Rate

Current - 2021 $10,255.46 $123,065.47 5.75%

2021-2026 $11,024.62 $132,295.38 6.18%

2026-2031 $11,851.46 $142,217.53 6.64%

Option 1 $12,740.32 $152,883.85 7.14%

Option 2 $13,695.84 $164,350.14 7.68%

Option 3 $14,723.03 $176,676.40 8.25%

Option 4 $15,827.26 $189,927.13 8.87%

Tenant Summary

Tenant Hardee’s

Type of Ownership Fee Simple

Lease Guarantor Franchisee - Paradigm

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date 4/11/2011

Rent Commencement Date 4/11/2011

Lease Expiration Date 4/30/2031

Term Remaining on Lease 14.75 years

Increases 7.50% increase every 5 years

Options Four (4) Five (5) Year Options

Lease Abstract

Tenant: Hardee’s

Guarantor: Paradigm Investment Group - 106 unit operator

GLA: 2,703 SF

Rent Commencement: 4/11/2011

Lease Expiration: 4/30/2031

Renewal Options: Four (4) Five (5) year

Current Rent: $123,065.47

Rent Increases: 7.50% every five years

Net Lease: Absolute NNN - no landlord responsibilities

Real Estate Taxes: Tenant will pay all Real Estate Taxes

Insurance: Tenant at its sole expense will procure and maintain commercial general liability insurance

Utilities: Tenant is to pay when due at Tenant’s sole cost

Tenant Assignment and Subletting: Tenant will not transfer or assign this Lease nor sublet any part of the Premises without the prior written consent of Landlord

Right of First Refusal: None

Financial Statements: Tenant agrees to furnish Landlord upon request true and accurate monthly statements of Gross Sales

Hardee’s | 6

7 | Hardee’s

PROPERTY OVERVIEW


Physical Description

Property Name Hardee’s

Property Address 2935 S McKenzie St

Foley, AL 36535

Assessor’s Parcel Number 61-02-04-3-001-006.002

Site Description

Number of Stories One

Year Built/Renovated 2003/2011

Gross Leasable Area (GLA) ±2,703 SF

Lot Size ± 1.16 Acres (50,529 SF)

Type of Ownership Fee Simple

Parking ± 39 Surface Spaces

Parking Ratio 14.43 : 1,000 SF

Landscaping Professional

Topography Generally Level

Zoning Commercial

Drive Thru Yes

Construction

Foundation Concrete Slab

Framing Concrete Black

Exterior Masonry Walls

Parking Surface Asphalt

Roof Generally Flat

Hardee’s | 9

Aerial

Matthews Retail Advisors | 10 Hardee’s | 9

Regional Map

11 | Rite Aid

Tenant Map

Hardee’s | 11

Matthews Retail Advisors | 12 12 | Hardee’s

Bird’s EyeBird’s EyeBird’s Eye

Hardee’s | 11

McKenzie St ± 31,000 ADT

TENANT OVERVIEW


CKE is a leading fast-food operator with about 3,450 eateries across the

country. Its Carl’s Jr. chain, known for its signature Six Dollar Burger, includes

almost 1,400 locations in California and other mostly western states. CKE

also owns Hardee’s Food Systems, which operates and franchises roughly

1,950 Hardee’s locations, mostly in the Midwest and Southeast. About 890

of CKE’s restaurants are corporate-owned, while the rest are franchised or

licensed.

Property Name Hardee’s

Property Type Net Leased Quick Service Restauarant

Parent Company Trade Name CKE Restaurants

Ownership Private

Revenue $1.28 B

No. of Locations ±1,944

Headquartered St. Louis, MO

Web Site www.hardees.com

Year Founded 1960


AREA OVERVIEWFoley is a coastal community located in Southern Alabama. Foley is located in Baldwin County, Alabama and is a principal city of the Daphne-Fairhope-Foley Metropolitan Statistical Area.

Foley is a community where genuine Southern charm unites with an array of attractions, events, accommodations, and restaurants. Foley is an exciting destination with plenty of activities and sites to choose from. From the unique local shops and artists of the quaint and historic downtown, to intriguing museum exhibits and laid-back water adventures.

Foley was ranked by Niche.com as one of the best towns for outdoor activities in Alabama. Visitors can explore the still water rivers on an Eco-Kayak Tour as well as the Graham Creek Nature Preserve. Foley’s Graham Creek Nature Preserve offers canoes and kayak launches, hiking and biking trails, a golf course, picnic areas, and bird watching.

Opened in 2009, the Foley Sports Compex is a state of the art facility that hosts local recreation teams and is quickly becoming a hub for regional competitive tournaments like the USSSA Baseball World Series and the Alabama Soccer Festival. The 100-acre facility includes a 5-Plex used for baseball and softball and a soccer complex for 3 lighted fields.

Located only miles north of the Gulf Shore, Foley offers plenty of dining options from southern BBQ to Alabama seafood fresh off the boat. The Coastal Alabama Farmers and Fishermen’s Market is constantly packed with people and a great place to buy fruits and vegetables picked fresh every morning in Baldwin County. In addition to fresh seafood, organic steaks, freshly baked breads and dessert the open-air market is also a great spot for rustic-themed events.

Foley also offers world-class shopping for any niche from specialty stores and local boutiques to the Tanger Outlet Mall. At the Tanger Outlet mall shoppers can enjoy 150 outlet stores featuring a variety of brand-name and designer outlet stores.

FOLEY, AL

Hardee’s | 16

DemographicsPopulation 3-Mile 5-Mile 10-Mile

2021 Projection 17,469 37,377 70,671

2016 Estimate 15,717 33,820 64,567

2010 Census 12,919 28,208 55,034

2000 Census 7,424 17,135 37,938

Growth 2016 - 2021 11.15% 10.52% 9.45%

Growth 2010 - 2016 21.65% 19.89% 17.32%

Growth 2000 - 2010 74.02% 64.62% 45.06%

Households 3-Mile 5-Mile 10-Mile

2021 Projection 7,148 15,454 29,683

2016 Estimate 6,440 13,990 27,058

2010 Census 5,299 11,667 22,916

2000 Census 3,054 7,033 15,697

Growth 2016 - 2021 10.99% 10.47% 9.70%

Growth 2010 - 2016 21.55% 19.91% 18.08%

Growth 2000 - 2010 73.51% 65.89% 45.99%

Income 3-Mile 5-Mile 10-Mile

Income < $15,000 14.58% 12.23% 12.19%

Income $15,000 - $24,999 19.77% 17.23% 16.60%

Income $25,000 - $34,999 10.83% 11.51% 12.25%

Income $35,000 - $49,999 19.45% 19.83% 17.86%

Income $50,000 - $74,999 15.97% 16.12% 17.09%

Income $75,000 - $99,999 11.10% 12.48% 11.65%

Income $100,000 - $124,999 3.34% 4.64% 4.98%

Income $125,000 - $149,999 1.99% 2.22% 2.70%

Income $150,000 - $199,999 1.50% 1.83% 2.25%

Income $200,000 - $249,999 0.67% 0.78% 0.89%

Income $250,000 - $499,999 0.65% 0.87% 1.17%

Income $500,000+ 0.14% 0.26% 0.40%

2016 Est. Average Household Income $49,526 $54,451 $57,336

2016 Est. Median Household Income $38,714 $41,826 $42,530

Matthews Retail Advisors | 17 Hardee’s | 16

™

Calvin ShortVP & Senior Director - STNL


Kyle MatthewsBroker of Record

License No. 00109289

Connor OlandtAssociate


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