prepared for | hooters | hooters sale leaseback | …

P R E P A R E D F O R | H O O T E R S | H O O T E R S S A L E L E A S E B A C K | C O L L I E R S I N T E R N A T I O N A L

REPRESENTATIVE PHOTO

O F F E R I N G M E M O R A N D U M | C O L L I E R S I N T E R N A T I O N A L

L O C AT I O N

13320 N. Pennsylvania AvenueOklahoma City, OK 73120

E X C L U S I V E LY O F F E R E D BY

PETER BLOCKExecutive Vice President

+1 847 384 2840 [email protected]

MATT GUSEBroker of Record

TABLE OF CONTENTSEXECUTIVE SUMMARY

Offer ing Summary

Investment Highl ights

PROPERTY DESCRIPTION

Reta i l Map

Aeria l

TENANT OVERVIEW

Tenant Overview

LOCATION OVERVIEW

Area Map

Oklahoma Ci ty Overview

Demographics

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COLLIERS INTERNATIONAL+1 847 698 84446250 N. River Road, Suite 11-100 Rosemont, IL 60018www.colliers.com


EXECUTIVE SUMMARY

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OFFERING SUMMARY

EXECUTIVE SUMMARY

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ASKING PRICE

CAP RATE

NOI

LEASE TERM

ESCALATIONS

SIZE

OPTIONS

$3,559,332

5.90%

$210,000

20 Years

8.5% Every 5 years

± 7,462 SF

Four, 5-year

Colliers international is pleased to present for sale a single tenant, net leased, newly renovated Hooters restaurant located at 13320 N. Pennsylvania Avenue, Oklahoma City, OK. The location was strategically selected for its proximity to the AMC Quail Springs Mall and the Walmart Superstore, in addition to its posi-tion midway between Routes 74 & 77 off the John Kilpatrick Turnpike. Hooters brand is experiencing a huge resurgence with fresh capital coming from private equity. This new renovated Hooters Restaurant incorporates the new 21st century design.

Hooters of America will be operating under brand new 20 year NNN leases. The new lease will contain four (4), five (5) year renewal options and feature 8.5% rent increases every five years. These are true NNN lease structures with zero landlord responsibilities. This investment opportunity is being offered for sale at $3,559,322, a net operating income of $210,000 and a correspond-ing cap rate of 5.90%. This property is available for a late early April close.

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STABLE INCOME – EASE OF MANAGEMENT

1031 EXCHANGE OPPORTUNITY

n Lease is corporately guaranteed by Hooters of America

n 7,462 square foot brand new state of the art design and renovation

n Sale-leaseback with a thriving brand

n NNN lease – no landlord responsibilities

n Targeted close of early APRIL 2017

n Hooters has new long term growth strategy with new infusion of capital

n Commitment to both Corporate and franchise store expansion

n Rents established to maintain healthy long term rent to sales ratios

n Very Strong Trade Area

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PROPERTY DESCRIPTION

PROPERTY ADDRESS: 13320 N. Pennsylvania AvenueOklahoma City, OK 73120

OFFERING PRICE: $3,559,322

NOI: $210,000

CAP RATE: 5.90%

LEASE EXPIRATION: 20 Years from deal execution

OPTIONS: Four, five (5) year

ESCALATIONS: 8.5% in Options

NEW CONSTRUCTION: April 2017

BUILDING SIZE: 7,462 SF

PARCEL SIZE: 1.00 Acre

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DESCRIPTION OF AREA

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GENERAL NOTES:Property Area: 1.00 AcresBuilding Area: 7,462 SF

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n Hooters is one of the most recognizable brands among US consumers today

n World Famous, often-imitated-but-never-replicated Chicken Wings

n World Famous Hooters Girls including the Orange Pride Alumni

n The Hooters Community Endowment Fund which raises money

for local and national charities including Jimmy V Foundation for

Cancer Research, Make-A-Wish Foundation, the U.S.O., Special

Olympics, American Diabetes Association, Juvenile Diabetes

Foundation and Muscular Dystrophy Association (over $10 million

contributed from Hooters).

FACTSn Balanced customer mix with women representing almost 40% of

all Hooters guests.

n Each Hooters attracts over 3,250 guests per week

n New and improved menu

n Hooters Restaurants draw from a larger trade area than the

average casual dining concept.

n Consistent AUV ($3 million plus) and unit Growth 10

GROWTHHIGHLIGHTSn Renovation of 20+ stores per year ($20 million invested to date

$10 million being used for continued renovations)

n New store growth of 20+ stores per year

n New and improved menu

n National and Local Marketing Campaign in excess of $45

Million Annually

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HOOTERS OVERVIEW

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Hooters of America, LLC is the Atlanta-based oper-ator and franchiser of over 425 Hooters locations in 26 countries. The privately held corporation owns 194 units.

The first Hooters opened October 4, 1983, in Clear-water, Florida. The Original Six founders were quickly detained for impersonating restaurateurs, but fortunately for America, they were soon allowed to go about their business. During its history, the Hooters concept has remained true to its roots. The current logo, uniform, menu and ambiance are all very similar to what existed in the original store. This consistency is understandable given Hooters continued success and high ranking amongst the industry’s growth leaders.

The casual beach-themed establishments feature music, sports on large flat screens, and a menu that includes seafood, sandwiches, burgers, salads, and of course, Hooters world famous chicken wings. Hooters continues to evolve today with an aggres-sive branding and expansion program which in-cludes 25+ corporate remodels per year, as well as 25+ new units opening annually.

LOCATION OVERVIEW

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OKLAHOMA CITY

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13320 N PENNSYLVANIA AVENUE

OKLAHOMA CITY OVERVIEW

With a population of approximately 630,000, Oklahoma City is a sprawling state capital encompassing more than 620 square miles—the country’s third-largest city in terms of area. Oklahoma City is the seat of Oklahoma County and one of the larger cities in the Great Plains region, as well as the nation’s 29th largest city in population.

Oklahoma City is the hub of the Midwest Corridor, a center of traffic for businesses and travelers to and from every part of the nation. The city’s aim has always been to offer the accoutrements that have come to be expected of a modern metropolis. As such, the community is highly supportive of the arts, quality health care, excellence in education — with several of the nation’s top universities close at hand — and much more. Oklahoma City achieves these goals while avoiding high living costs and daily pitfalls of other major cities. Conversely, it is a livable city, where traffic is easy to navigate, and dreams and a rich quality of life are within arms’ reach.

ECONOMY

Oklahoma City’s diverse economy is reflected in the variety among its top employers, which include the State of Oklahoma, Tinker Air Force Base, University of Oklahoma and INTEGRIS Health. Other big-name leading private employers with headquarters in OKC, like Love’s Travel Stops & Country Stores, Paycom, Hobby Lobby, OGE, Sonic, American Fidelity and others deliver business, personal and utility services to a wide range of markets, in addition to well-known names like Boeing, AT&T, Dell, Hertz, UPS and others that maintain a large presence in the market.

Oklahoma City is home to two Fortune 500 companies, Chesapeake Energy & Devon Energy. The area further benefits from Devon Energy’s $750 million headquarters, completed in early 2012, bringing nearly 2,200 employees and contractors to the area. Scanning the roster of major employers, it’s easy to see the breadth and depth of the business community, from high-tech industry leaders, telecommunications, logistics and finance to consumer brands that ease the daily lives of families across the globe.

EDUCATION

Oklahoma City Public Schools is the state’s largest district with approximately 45,000 students. It also serves as a major employer, with 4,600 faculty and staff members. The district is one of the few urban districts in the nation with a growing enrollment, due largely to the “MAPS for Kids” citywide improvement plan. Completed in 2012, the initiative was a 10-year, $700 million construction and renovation program to improve school facilities throughout Oklahoma City’s 24 school districts. The project included building or renovating 75 school sites, new buses, and upgrading technology.There are 18 public and private colleges and universities in the Oklahoma City metro. The University of Oklahoma is one of two research universities in the state along with Oklahoma State University (Stillwater, OK).

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DEMOGRAPHICS

POP FACTS: DEMOGRAPHIC REPORT 201613320 N PENNSYLVANIA AVE, OKLAHOMA CITY, OK, 73120-9013

RADIUS 1 (0.0-1.0 miles)



POPULATION

2021 Projection 14,787 82,488 185,794

2016 Estimate 13,277 75,689 171,689

2010 Census 11,098 65,946 149,701

2000 Census 9,285 52,627 126,376

Growth 2016 - 2021 11.37% 8.98% 8.22%

Growth 2010 - 2016 19.63% 14.77% 14.69%

Growth 2000 - 2010 19.53% 25.31% 18.46%

HOUSEHOLDS

2021 Projection 7,644 36,145 79,474

2016 Estimate 6,943 33,318 73,448

2010 Census 5,990 29,526 64,515

2000 Census 4,962 23,807 53,726

Growth 2000 - 2010 10.11% 8.49% 8.20%

Growth 2010 - 2015 15.91% 12.85% 13.85%

Growth 2015 - 2020 20.72% 24.02% 20.08%

2016 EST. POPULATION BY SINGLE CLASSIFICATION RACE

Total 13,277 75,689 171,689

White Alone 6,409 48.27% 46,067 60.86% 117,862 68.65%

Black or African American Alone

4,753 35.80% 17,423 23.02% 28,339 16.51%

American Indian and Alaska Native Alone

249 1.87% 1,614 2.13% 3,871 2.25%

Asian Alone 558 4.20% 3,889 5.14% 7,721 4.50%

Native Hawaiian and Other Pacific Islander Alone

17 0.12% 51 0.07% 121 0.07%

Some Other Race Alone 396 2.98% 2,281 3.01% 4,464 2.60%

Two or More Races 895 6.74% 4,365 5.77% 9,311 5.42%

2016 EST. POPULATION HISPANIC OR LATINO

Total 13,277 75,689 171,689

Hispanic or Latino 933 7.02% 5,598 7.40% 11,353 6.61%

Not Hispanic or Latino 12,344 92.98% 70,091 92.60% 160,336 93.39%

2016 TENURE OF OCCUPIED HOUSING UNITS

Total 6,943 33,318 73,448

Owner Occupied 1,223 17.62% 18,667 56.03% 45,717 62.24%

Renter Occupied 5,719 82.38% 14,651 43.97% 27,731 37.76%

AVERAGE HOUSEHOLD SIZE

Total 1.91 2.27 2.31





DEMOGRAPHICS

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RADIUS 1 (0.0-1.0 miles) RADIUS 2 (0.0-3.0 miles) RADIUS 3 (0.0-5.0 miles)

2016 EST. HOUSEHOLDS BY HOUSEHOLD INCOME

Total 6,943 33,318 73,448

Income < $15,000 1,060 15.27% 3,437 10.32% 6,808 9.27%

Income $15,000 - $24,999 1,045 15.05% 3,284 9.86% 6,390 8.70%

Income $25,000 - $34,999 1,315 18.94% 3,948 11.85% 7,547 10.28%

Income $35,000 - $49,999 1,357 19.54% 4,829 14.49% 9,985 13.60%

Income $50,000 - $74,999 1,151 16.58% 5,861 17.59% 12,727 17.33%

Income $75,000 - $99,999 451 6.49% 3,752 11.26% 9,598 13.07%

Income $100,000 - $124,999 283 4.07% 2,840 8.52% 6,906 9.40%

Income $125,000 - $149,999 114 1.64% 1,915 5.75% 4,429 6.03%

Income $150,000 - $199,999 95 1.37% 1,609 4.83% 3,913 5.33%

Income $200,000 - $249,999 32 0.46% 713 2.14% 1,833 2.50%

Income $250,000 - $499,999 33 0.47% 805 2.42% 2,268 3.09%

Income $500,000+ 9 0.13% 325 0.98% 1,045 1.42%

2016 EST. AVERAGE HOUSEHOLD INCOME

Total $46,327 $76,955 $84,852

2016 EST. MEDIAN HOUSEHOLD INCOME

Total $35,570 $54,953 $61,775

2016 MEDIAN HH INC. BY SINGLE RACE, CLASS, OR ETHNICITY

White Alone $37,176 $61,488 $68,345Black or African American Alone $33,691 $41,778 $42,096American Indian and Alaska Native Alone

$43,969 $51,095 $52,976

Asian Alone $50,570 $71,151 $76,990Native Hawaiian and Other Pacific Islander Alone

$42,500 $38,806 $38,038

Some Other Race Alone $24,669 $40,114 $40,778Two or More Races $29,314 $40,082 $44,213Hispanic or Latino $36,029 $46,308 $55,869Not Hispanic or Latino $35,539 $55,428 $62,005

Colliers International Brokerage Company (“Broker“) has been retained as the exclusive advisor and broker for this offering.

This Offering Memorandum has been prepared by Broker for use by a limited number of parties and does not purport to provide a necessarily accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective Buyers may need or desire. All projections have been developed by Broker and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Seller and therefore are subject to variation. No representation is made by Broker or the Seller as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied on as a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be correct, the Seller and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Broker, the Seller and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in or omitted from the Offering Memorandum or any other written or oral communication transmitted or made available to the Buyer. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum are solely the responsibility of the prospective Buyer. Additional information and an opportunity to inspect the Property will be made available upon written request to interested and qualified prospective Buyers.

By accepting the Offering Memorandum, you agree to indemnify, defend, protect and hold Seller and Broker and any affiliate of Seller or Broker harmless from and against any and all claims, damages, demands, liabilities, losses, costs or expenses (including reasonable attorney’s fees, collectively “Claims”) arising, directly or indirectly from any actions or omissions of Buyer, its employees, officers, directors or agents.

Buyer shall indemnify and hold Seller and Broker harmless from and against any claims, causes of action or liabilities, including, without limitation, reasonable attorney’s fees and court costs which may be incurred with respect to any claims for other real estate commissions, broker’s fees or finder’s fees in relation to or in connection with the Property to the extent claimed, through or under Seller.

The Seller and Broker each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligations to any entity reviewing the 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 Seller and its legal counsel, and any conditions to the Seller’s obligation thereunder have been satisfied or waived.

The Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting the Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose the Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make an offer and from whom you have obtained an agreement of confidentiality) without prior written authorization of the Seller or Broker, and that you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of the Seller or Broker.

No employee of seller or at the Subject Property is to be contacted without the written approval of the listing agents and doing so would be a violation of this confidentiality agreement.

Broker and their prospective buyers agree not to contact the tenants, their employees or customers of any business on the Property without prior permission from the Landlord.

Broker has created cash flow projections for the Property using Argus Financial Software. Neither Broker nor the Seller make any representation, warranty or guaranty of the economic value of the Property through the cash flow projections contained in this Offering or the associated Argus computer files.

PETER BLOCKExecutive Vice President


BOB BROWNINGVice President


ROBERT HANTGANSenior Vice President


MATT GUSEBroker of Record

prepared for | hooters | hooters sale leaseback | …

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