offering memorandum - loopnet...page4 of13 information contained herein may have been provided by...
TRANSCRIPT
Offering MemorandumOffering MemorandumC H E C K E R S N E T L E A S E I N V E S T M E N T |C H E C K E R S N E T L E A S E I N V E S T M E N T |
7 . 2 % C A P R A T E7 . 2 % C A P R A T E
P a g e 2 o f 1 3
D I S C L A I M E R & L I M I T I N G C O N D I T I O N S 3
E X E C U T I V E S U M M A R Y 4
F I N A N C I A L O V E R V I E W 5
A D D I T I O N A L P H O T O S 6
I N T H E A R E A 7
S I T E P L A N 8
T E N A N T O V E R V I E W 9
A B O U T T H E A R E A 10
B R O K E R P R O F I L E 11
C O N F I D E N T I A L I T Y A G R E E M E N T 13
T A B L E O F C O N T E N T ST A B L E O F C O N T E N T S
Michael Bull, CCIMMichael Bull, CCIM
President, National Office GroupPresident, National Office Group
[email protected]@BullRealty.com
404-876-1640 x101404-876-1640 x101
Grant SmithGrant Smith
Associate, Net Lease Investment GroupAssociate, Net Lease Investment Group
[email protected]@BullRealty.com
678-773-6398678-773-6398
50 Glenlake Parkway, Suite 60050 Glenlake Parkway, Suite 600
Atlanta, GA 30328Atlanta, GA 30328
BullRealty.comBullRealty.com
Exclusively listed by Bull Realty, Inc.
SC License # 13327
D I S C L A I M E R & L I M I T I N G C O N D I T I O N SD I S C L A I M E R & L I M I T I N G C O N D I T I O N SC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T EC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T E
P a g e 3 o f 1 3Information contained herein may have been provided by the seller, landlord or other outside sources. While deemed reliable, it
may be estimated, projected, limited in scope and is subject to change or inaccuracies. Pertinent information should beindependently confirmed prior to lease or purchase offer or within an applicable due diligence period.
Bull Realty has been retained as the exclusive listing broker to arrange the sale of the Subject Property.
This Offering Memorandum contains selected information pertaining to the Property but does not purport to be all-inclusive or to contain all of the information
that a prospective purchaser may require. All financial projections are provided for general reference purposes only and are based upon assumptions
relating to the general economy, competition and other factors, which therefore, are subject to material change or variation. Prospective purchasers may not
rely upon the financial projections, as they are illustrative only. An opportunity to inspect the Property will be made available to qualified prospective
purchasers.
In this Offering Memorandum, certain documents, including financial information, are described in summary form and do not purport to be complete or
accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to review
independently all documents.
This Offering Memorandum is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation,
endorsement or advice as to the value of the Property by Bull Realty Inc. or the current Owner/Seller. Each prospective purchaser is to rely upon its own
investigation, evaluation and judgment as to the advisability of purchasing the Property described herein.
Owner/Seller expressly reserve the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate
discussions with any party at any time with or without notice. Owner/Seller shall have no legal commitment or obligation to any purchaser reviewing this
Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed,
delivered and approved by the Owner/Seller and any conditions to the purchaser's obligations therein have been satisfied or waived. The Seller reserves the
right to move forward with an acceptable offer prior to the call for offers deadline.
This Offering Memorandum may be used only by parties approved by the Owner. The Property is privately offered, and by accepting this Offering
Memorandum, the party in possession hereof agrees (i) to return it if requested and (ii) that this Offering Memorandum and its contents are of a confidential
nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed
to anyone without the prior written authorization of Bull Realty, Inc. or Owner/Seller. The terms and conditions set forth above apply to this Offering
Memorandum in its entirety and all documents, disks and other information provided in connection therewith.
P a g e 4 o f 1 3Information contained herein may have been provided by the seller, landlord or other outside sources. While deemed reliable, it
may be estimated, projected, limited in scope and is subject to change or inaccuracies. Pertinent information should beindependently confirmed prior to lease or purchase offer or within an applicable due diligence period.
A R E A O V E R V I E WA R E A O V E R V I E W
The City of Aiken serves as the seat for Aiken County located in the
Augusta MSA. The subject property benefits from prime signage and
visibility along Whiskey Road, the retail corridor of Aiken, South Carolina.
Whiskey Road offers extremely high volumes of traffic exceeding 37,000
vehicles a day. 2223 Whiskey sits just a half a mile away from the old
Aiken Mall, which will see a new life in 2018. Southeastern Development
Associates, an Augusta-based firm, announced plans last year to
transform the Aiken Mall site into a mixed-use shopping and dining
center including new restaurants, additional retail stores, open space,
walking trails and an entertainment aspect. See additional information
on what Aiken, South Carolina has to offer on page 10.
O F F E R H I G H L I G H T SO F F E R H I G H L I G H T S
This absolute NNN Checkers in Aiken, South Carolina has been operating
successfully since 2010 and has 12+ years remaining on the lease. Aiken, SC
is part of the Augusta, GA MSA, making it one of the two largest cities in the
Central Savannah River area. The subject property is located along a major
retail corridor in Aiken and has a population of over 49,000 within a 5-mile
radius. There are three 5-year options with rental increases based on CPI.
This Checkers location is operated by Augusta Burger’s Express Inc., a
successful family owned and operated franchisee with more than 40
franchise locations spread across multiple brands and the lease is backed
by a personal guarantee from Carlton A. Pye, the owner of the company.
D E M O G R A P H I C SD E M O G R A P H I C S 1 Mile1 Mile 5 Miles5 Miles 10 Miles10 Miles
Total Households: 955 20,420 37,700
Total Population: 2,219 49,478 93,665
Average HH Income: $88,902 $74,793 $64,309
• Absolute NNN lease | Zero Landlord responsibilities
• 12+ years remaining on original 15-year term
• Personal guarantee by Augusta Burgers Express, Inc.
• Franchisee voted "Business Person of the Year" by Chamber of
Commerce
• High traffic corridor - more than 37,000 vehicles daily
• Options subject to annual CPI increases | Capped at 3% starting in year 6
E X E C U T I V E S U M M A R YE X E C U T I V E S U M M A R YC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T EC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T E
P a g e 5 o f 1 3Information contained herein may have been provided by the seller, landlord or other outside sources. While deemed reliable, it
may be estimated, projected, limited in scope and is subject to change or inaccuracies. Pertinent information should beindependently confirmed prior to lease or purchase offer or within an applicable due diligence period.
P R O P E R T Y & L E A S E I N F O R M A T I O NP R O P E R T Y & L E A S E I N F O R M A T I O N
Property Location:Property Location:2223 Whiskey Rd
Aiken, SC 29803
County:County: Aiken
Price:Price: $1,105,800.00
Cap Rate:Cap Rate: 7.2%
NOI:NOI: $79,620
Year Built:Year Built: 2008
Site Size:Site Size: 0.42 Acres
Building Size:Building Size: 726 SF
Type Of Ownership:Type Of Ownership: Fee Simple
L E A S E S U M M A R YL E A S E S U M M A R Y
Tenant Name:Tenant Name: Checkers
Lease Type:Lease Type: Absolute NNN
Landlord Responsibilities:Landlord Responsibilities: None
Original Lease Term:Original Lease Term: 15 Years
Term Remaining:Term Remaining: 12 years, 7 months
Rent Commencement:Rent Commencement: 11/1/2015
Lease Expiration:Lease Expiration: 10/31/2030
Renewal Options:Renewal Options: Three 5-year options
Annual CPI increases, Capped at 3% starting after year 6
Lease Guarantor:Lease Guarantor: Augusta Burgers Express, Inc.
A C T U A L L O C A T I O NA C T U A L L O C A T I O N
F I N A N C I A L O V E R V I E WF I N A N C I A L O V E R V I E WC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T EC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T E
P a g e 6 o f 1 3Information contained herein may have been provided by the seller, landlord or other outside sources. While deemed reliable, it
may be estimated, projected, limited in scope and is subject to change or inaccuracies. Pertinent information should beindependently confirmed prior to lease or purchase offer or within an applicable due diligence period.
Actual Location
Actual Location Actual Location
A D D I T I O N A L P H O T O SA D D I T I O N A L P H O T O SC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T EC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T E
P a g e 7 o f 1 3Information contained herein may have been provided by the seller, landlord or other outside sources. While deemed reliable, it
may be estimated, projected, limited in scope and is subject to change or inaccuracies. Pertinent information should beindependently confirmed prior to lease or purchase offer or within an applicable due diligence period.
I N T H E A R E AI N T H E A R E AC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T EC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T E
P a g e 8 o f 1 3Information contained herein may have been provided by the seller, landlord or other outside sources. While deemed reliable, it
may be estimated, projected, limited in scope and is subject to change or inaccuracies. Pertinent information should beindependently confirmed prior to lease or purchase offer or within an applicable due diligence period.
S I T E P L A NS I T E P L A NC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T EC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T E
P a g e 9 o f 1 3Information contained herein may have been provided by the seller, landlord or other outside sources. While deemed reliable, it
may be estimated, projected, limited in scope and is subject to change or inaccuracies. Pertinent information should beindependently confirmed prior to lease or purchase offer or within an applicable due diligence period.
T E N A N T O V E R V I E WT E N A N T O V E R V I E WC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T EC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T E
C H E C K E R SC H E C K E R S
Augusta Burgers Express, which also operates under the name of Checkers Drive-in Restaurant, is
located in North Augusta, South Carolina. This family business primarily operates in the drive-in
restaurant business sector and owns over 40 franchise outlets. Andy Pye, voted "Business Man of the
Year" by the Augusta Chronicle, has continuously experienced amazing growth and success in the
franchise industry since 1998.
Andy and Drew Pye own Checkers restaurants in Augusta, Charleston S.C., and Virginia Beach. Fast
food is a thriving business for this father and son team. Drew Pye started out working in one of his
father's Checker's restaurants when he was fifteen and found himself drawn to the franchising after
graduating from Georgia Southern University. Together they have built a successful business and
established themselves as innovative and recognized business leaders in the community.
Andy Pye was drawn to the simplicity of the Checker's concept after working for other corporations
such as Taco Bell. His experience and dedication are evident and recognized throughout the industry.
"Both Andy and Drew are wonderful operators and are absolutely obsessed with making sure their
customers have a great experience," said Jennifer Durham, vice president of franchise development
for Checkers.
"They're building something that will grow far beyond them," Durham said. "It's the American dream
hard at work."
P a g e 1 0 o f 1 3Information contained herein may have been provided by the seller, landlord or other outside sources. While deemed reliable, it
may be estimated, projected, limited in scope and is subject to change or inaccuracies. Pertinent information should beindependently confirmed prior to lease or purchase offer or within an applicable due diligence period.
A B O U T T H E A R E AA B O U T T H E A R E AC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T EC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T E
A I K E NA I K E N
With its rich heritage, quaint towns, and pristine beauty - balanced with a
diverse economic base, numerous exciting activities, and a cosmopolitan flair
- the Aiken area offers something for everyone in a friendly, accommodating,
and attractive setting. Aiken is known for its progressive business approach,
award-winning schools, moderate climate, sporting events, affordable
housing, and health and lifestyle amenities that attract residents and visitors
alike.
Aiken's proximity to Interstate 20 and major cities like Atlanta, Charleston,
Charlotte, and Savannah make it ideally situated for business. In fact, some of
the most advanced businesses and industries call the Aiken area home.
Aiken's intellectual property is world class, and the area attracts some of
America's best and brightest scientists and engineers who work side by side
with a highly productive workforce.
With lush, idyllic mountains and beautiful, sandy beaches less than three
hours away, Aiken is the perfect home for almost anyone. The old and the
new blend perfectly to provide a lifestyle that suits the most discriminating of
tastes - from growing families to young singles and retirees.
And when it comes to things to do, the list is endless. With equestrian sports,
year-round recreational sports, history, the arts, shopping, hiking, fishing and
a host of other ventures available, there is never a lack of extracurricular
activities. Given Aiken's fascinating history, one could literally spend days
visiting the many historical sites and Winter Colony estates that give the city
and surrounding area its rich heritage and charm.
B R O K E R P R O F I L EB R O K E R P R O F I L EC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T EC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T E
Bull Realty is a commercial real estate sales, leasing and advisory firm headquartered in Atlanta and licensed innine Southeast states. The firm was founded in 1998 with two primary missions: to provide a company ofadvisors known for their integrity and to provide the best disposition marketing in the nation. Client servicesinclude disposition, acquisition, project leasing, tenant representation, asset management and consultingservices. Advisors focus on specific property types including office, retail, industrial, multifamily, land, healthcare,senior housing, self-storage, automotive, hospitality and single tenant net lease properties.
The firm produces America's Commercial Real Estate Show, a national video show and podcast enjoyed bymillions of people around the country. Industry analysts, leading market participants and the firm's founderMichael Bull share market intelligence, forecasts and success strategies. The show has aired every week since2010 on iTunes, YouTube and www.CREshow.com. The firm also produces Atlanta's Commercial Real EstateShow available on AtlCREshow.com
404-876-1640 x101
P a g e 1 1 o f 1 3Information contained herein may have been provided by the seller, landlord or other outside sources. While deemed reliable, it
may be estimated, projected, limited in scope and is subject to change or inaccuracies. Pertinent information should beindependently confirmed prior to lease or purchase offer or within an applicable due diligence period.
50 Glenlake Parkway, Suite 600Atlanta, GA 30328
President, National Office GroupPresident, National Office Group
MICHAEL BULL, CCIMMICHAEL BULL, CCIM Professional BackgroundProfessional Background
Michael Bull, CCIM, founder and CEO of Bull Realty, is an active commercial real estate advisor. He is a licensed broker in ninesoutheast states and has assisted clients with over 5 billion dollars of transactions over his 30 year career.
Mr. Bull founded Bull Realty in 1998 initially with two primary missions: to provide a company of brokers known for integrity, and toprovide the best disposition marketing in the nation. Now Michael and his brokers provide disposition, acquisition, project leasing,tenant representation, and advisory services in all major property sectors.
You may know Michael as executive producer and host of America's Commercial Real Estate Show. The popular weekly showbegan broadcasting in 2010 and today is heard by millions of people around the country. Michael and other respected industryanalysts, economists and leading market participants share market intelligence, forecasts and success strategies. The show isavailable on-demand on iTunes, YouTube, and the show website, www.CREshow.com.
If you get a chance, see Michael speak at commercial real estate events around the country. Michael is a national speaker andsenior instructor with Commercial Agent Success Strategies. The company provides live and on-demand streaming video trainingfor commercial agents. Preview videos at the website, www.CommercialAgentSuccess.com.
Mr. Bull’s articles have been published nationwide including in the National Real Estate Investor, France Media Publications, AtlantaJournal Constitution, Atlanta Business Chronicle, Multi-Housing News, Shopping Center Business, The Broker List, and Nation’sRestaurant News.
Michael’s involvement with professional organizations include CCIM Member, National Association of REALTORS, the InternationalCouncil of Shopping Centers, the Real Estate Brokerage Managers Council, Atlanta Leaders Group, Real Estate Group of Atlanta,the Georgia Bankers Association, the Atlanta Press Club, the Atlanta Chamber of Commerce, the Georgia Real Estate EducatorsAssociation, Urban Land Institute, and the National Association of Real Estate Editors.
Michael lives in the Chastain Park area of Atlanta and enjoys spending time with his family, off-road performance vehicles andperformance boating.
Bull Realty Inc.Bull Realty Inc.
B R O K E R P R O F I L EB R O K E R P R O F I L EC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T EC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T E
678-773-6398
50 Glenlake Parkway, Suite 600Atlanta, GA 30328
P a g e 1 2 o f 1 3Information contained herein may have been provided by the seller, landlord or other outside sources. While deemed reliable, it
may be estimated, projected, limited in scope and is subject to change or inaccuracies. Pertinent information should beindependently confirmed prior to lease or purchase offer or within an applicable due diligence period.
GRANT SMITHGRANT SMITHAssociate, Net Lease Investment GroupAssociate, Net Lease Investment Group
Professional BackgroundProfessional Background
Grant Smith and his team specialize in the acquisition and disposition of income producing net leasedproperties on a regional and national level. Mr. Smith’s group works with investors and other clients seekingoptimal net leased assets with a focus on cash growth, value gains and reliable returns. His background inproperty management and extensive commercial real estate training at Bull Realty enables him to be atrusted advisor to his clients regarding their real estate endeavors.
Grant entered Bull Realty with experience in property management and knowledge of development andconstruction processes impacting commercial real estate. He served as a member of the Bull Realty BusinessDevelopment team while training under CEO and Managing Broker Michael Bull.
Grant is an Atlanta native and graduate of Auburn University. During his educational career at Auburn, hewas a member of the 2013 SEC Championship football team and has also studied and lived in Madrid, Spain.
Bull Realty Inc.Bull Realty Inc.
Bull Realty is a commercial real estate sales, leasing and advisory firm headquartered in Atlanta and licensed innine Southeast states. The firm was founded in 1998 with two primary missions: to provide a company ofadvisors known for their integrity and to provide the best disposition marketing in the nation. Client servicesinclude disposition, acquisition, project leasing, tenant representation, asset management and consultingservices. Advisors focus on specific property types including office, retail, industrial, multifamily, land, healthcare,senior housing, self-storage, automotive, hospitality and single tenant net lease properties.
The firm produces America's Commercial Real Estate Show, a national video show and podcast enjoyed bymillions of people around the country. Industry analysts, leading market participants and the firm's founderMichael Bull share market intelligence, forecasts and success strategies. The show has aired every week since2010 on iTunes, YouTube and www.CREshow.com. The firm also produces Atlanta's Commercial Real EstateShow available on AtlCREshow.com
This Confidentiality Agreement (“Agreement”) is made and agreed to for the benefit of the
undersigned party (“Receiving Party”), the owner of the subject property (the “Seller”) and
undersigned broker Bull Realty Incorporated (“Broker”). Now therefore in consideration of the
privileges granted to Receiving Party with respect to receiving certain confidential information, and
other good and valuable consideration, the Receiving Party hereby agrees to the following:
I. Confidential Information:
Receiving Party will receive confidential information regarding property referred to as Checkers
Net Lease Investment | 7.2% Cap Rate, 2223 Whiskey Rd, Aiken, SC 29803. Prospect agrees to not
disclose to any person that the property may be available for sale or lease, or that discussions or
negotiations are taking place concerning the property, nor any terms, conditions, or other facts
with respect to the property, 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. Receiving Party may share information with directors, officers, employees,
agents, affiliates, counsel, lending sources, accountants or representatives of Receiving Party that
Receiving Party notifies of the requirements of this Agreement. Receiving Party agrees to not
contact the property owner, 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:
Receiving Party hereby warrants that it is acting as a principal only, and not as a broker, regarding
this contemplated transaction. Receiving Party acknowledges that Broker is working an agency
capacity as representing the Seller only in this transaction and is the only Broker involved in this
potential transaction. Receiving Party 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, joint venture or
control of the property, unless Bull Realty, Incorporated is paid a commission at closing as per
separate agreement with Seller.
This agreement will expire two years from the date hereof.
III. Governing Law
This Agreement shall be governed and construed in accordance with the laws of the State of
South Carolina.
Accepted and agreed to __ / __ / __
Receiving Party
Signature
Printed Name
Title
Company Name
Address
Phone
Fax
M i c h a e l B u l l , C C I M4 0 4 - 8 7 6 - 1 6 4 0 x 1 0 1M i c h a e l @ B u l l R e a l t y . c o m
5 0 G l e n l a k e P a r k w a y ,S u i t e 6 0 0A t l a n t a , G A 3 0 3 2 8
G r a n t S m i t h6 7 8 - 7 7 3 - 6 3 9 8G S m i t h @ B u l l R e a l t y . c o m
P a g e 1 3 o f 1 3Information contained herein may have been provided by the seller, landlord or other outside sources. While deemed reliable, it
may be estimated, projected, limited in scope and is subject to change or inaccuracies. Pertinent information should beindependently confirmed prior to lease or purchase offer or within an applicable due diligence period.
C O N F I D E N T I A L I T Y A G R E E M E N TC O N F I D E N T I A L I T Y A G R E E M E N TC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T EC H E C K E R S N E T L E A S E I N V E S T M E N T | 7 . 2 % C A P R A T E