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1724 Old Fannin Road - FLOWOOD, MISSISSIPPI 39232

WHATABURGERoffering memorandum

Actual Property

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID #: Y0330589


• Brand New Construction 24-Hour Whataburger in Flowood, Mississippi | 10 Miles Northeast of Jackson

• New 15-Year Triple-Net (NNN) Ground Lease | Zero Landlord Responsibilities

• Ten Percent Rent Increases Over the Base Term and in Three, Five-Year Options

• Corporate Guaranty from Whataburger Real Estate, Limited Liability Company (LLC) | Backed by 600 Corporate Locations

• One off the Signalized, Hard Corner Intersection of Lakeland Drive and Old Fannin Road/East Metro Parkway | More Than 34,900 Vehicles Per Day

• Located at the Heart of the Lakeland Drive Regional Retail Corridor | More Than Two Million Square Feet of Retail in Less than One-Mile from this Asset

• Major Tenants Along the Retail Corridor Include: Lowes Home Improvement, Hobby Lobby, Kohl’s, Target, Academy Sports, Kroger, Belk, T.J. Maxx, J.C. Penny, Dick’s Sporting Goods, CVS, Walmart, and More.

• Asset is Two Miles from Jackson-Medgar International Airport | Averaging More than 145 Flights Per Day

• Strong Demographics | More than 8 Percent Population Growth with an Average Household Income that Exceeds $84,000 within Three Miles of the Asset

Investment Overv iew

Marcus & Millichap is pleased to present this brand-new construction 24-hour Whataburger in Flowood, Mississippi, which is 10 miles northeast of Jackson. Whataburger signed a 15-year Triple-Net (NNN) ground lease with zero landlord responsibilities. Rent commenced in December 2016, leaving more than 14.5 years remaining on the lease. There are 10 percent rent increases every five years over the base term and in the three, five-year option periods. The lease is backed by a corporate guaranty from Whataburger Real Estate, Limited Liability Company, which operates 600 corporate Whataburgers.

Whataburger is located one off the signalized, hard corner intersection of Lakeland Drive and Old Fannin Road/East Metro Parkway, which sees more than 34,900 vehicles per day and are the main east-west and north-south corridors through Flowood. This asset is located at the epicenter of the Lakeland Drive Trade Area with more than 2 million square feet of retail in less than one-mile. Anchor tenants along the corridor include: Lowes Home Improvement, Hobby Lobby, Kohl’s, Target, Academy Sports, Kroger, Belk, T.J. Maxx, J.C. Penny, Dick’s Sporting Goods, CVS, and Walmart. Additionally, this asset is two miles from Jackson-Medgar International Airport, which averages more than 145 flights per day.

This Whataburger also benefits from Flowood’s strong demographics. Within three miles of this asset the population increased 8 percent from 2010 to 2016 and the average household income is currently more than $84,000. Rankin Public School System was ranked “A” by the Mississippi Department of Education, and is among the top 14 school districts in the state.

Actual Property



PRICE $1,740,000

CAP RATE 4.60%

PRICE PER SQUARE FOOT $485.63

RENT PER SQUARE FOOT $22.33

YEAR BUILT 2016

APPROXIMATE LOT SIZE 1.39 AcresAPPROXIMATE GROSS LEASE-ABLE AREA 3,583

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTOR Corporate Guaranty

LEASE TYPE Triple-Net Ground Lease

ROOF AND STRUCTURE Tenant Responsible

LEASE COMMENCEMENT DATE 12/1/2016

LEASE EXPIRATION DATE 12/1/2031

LEASE TERM 15 Years

TERM REMAINING 14.5+ Years

INCREASES 10 Percent Every 5 Years

OPTIONS TO RENEW Three, 5-Year

OPTIONS TO TERMINATE None

OPTIONS TO PURCHASE None

FIRST RIGHT OF REFUSAL None

Financia l Overv iew

Offer ing Summary

Lease Summary

Actual Property



Tenant Overview - Whataburger

Fans of this chain know they can get quite a burger at the place with the orange and white roof. Whataburger is a leading regional hamburger chain with nearly 750 outlets in Texas and about 10 other states in the Southeast and Southwest. The restaurants are open 24 hours a day and serve burgers and fries along with chicken sandwiches, salads, and a breakfast menu. About 600 of the restaurants are company-owned. Loyal Whataburger fans can also don the company’s line of apparel sporting the chain’s logo. The late Harmon Dobson founded the family-owned chain in Corpus Christi, Texas, in 1950 with a single roadside burger stand.

TENANT TRADE NAME Whataburger OWNERSHIP Private

TENANTWhataburger Real Estate, Limited Liability Company

LEASE GUARANTOR Corporate Guaranty

NUMBER OF LOCATIONS 750

HEADQUARTERED San Antonio, Texas

WEB SITE www.whataburger.com

SALES VOLUME $1.747 Billion (2015)

RANK #24 The QSR 50 (2015)

TENANT PROFILE

Actual Property



Aer ia l Overv iew



Area Overview & Demographics

1-Mile 3-Mile 5-Mile

P o p u l a t i o n

2000 Population 12,603 15,528 39,106

2010 Population 12,535 15,523 39,768

2016 Population 12,897 15,914 40,554

2021 Population 13,018 16,050 40,955


H o u s e h o l d s

2000 Households 4,938 6,022 14,770

2010 Households 4,955 6,090 15,234

2016 Households 5,094 6,241 15,544

2021 Households 5,141 6,294 15,703


H o u s e h o l d ( H H ) I n c o m e s

2016 Average HH Income $56,235 $58,564 $59,614

2016 Median HH Income $44,769 $46,751 $49,379

2016 Per Capita Income $22,211 $22,967 $22,850



Flowood is in Rankin County and is located east of Jackson, Mississippi’s capital city. Because of its strategic location, Flowood is easily accessible by Interstates 55 and 20 as well as the Jackson International Airport which is located in the heart of Flowood. Flowood is among Mississippi’s fastest growing cities and the fastest growing in Rankin County with at 8 percent population increase from 2010 to 2016.

Highway 25 (“Lakeland Drive”) is the main east-west corridor of the city and is one of the fastest-growing commercial areas in the State. Diversified with industrial, medical, retail, office, and residential areas, Flowood is ideal for both businesses and families.

During the 1990s, the city reduced ad valorem taxes and has one of the lowest tax rates in the metro area. Because of Flowood’s excellent water distribution system and our highly qualified and well-equipped fire department, Flowood has a class five rating which is the lowest fire rating of any municipality in Rankin County.

Flowood has recently completed construction of one of the state’s premiere public golf courses, The Refuge. Located in the heart of the City near the International Airport, The Refuge is convenient to office and commercial areas. Plans are underway for development of office, condominium, and hotel facilities adjacent to the golf course. The Refuge promises to be the most unique public golf facility in the South.

Construction was also completed on a $1.2-million mid-city community park complete with exercise stations, walking track, tennis and basketball courts, and an Amphitheatre all of which surround a clock tower and activity area.

The crime rate in Flowood is extremely low due in large measure to the professionally trained police department. The City is committed to training and equipping its police officers utilizing state-of-the-art law enforcement techniques to maintain the safe home town feeling enjoyed by the businesses and residents of Flowood.

Convenient schools provide an excellent choice to families. Flowood is the location of Northwest Rankin High School and Middle School as well as Flowood Elementary. Likewise, two major private schools are located in Flowood. The largest private school in Mississippi, Jackson Preparatory School (7-12) is conveniently located in the heart of the City.

Market Overview



Market Overview - On the Rise

Gary Rhoads, mayor of Flowood, said he expects retail to continue to grow in Flowood because of favorable demographics and residents with expendable income.

A stand-alone Kirkland’s home decor store that is almost double the size of its former location is now open in Flowood.But that’s not all the news for the Lakeland Drive retail corridor that includes Dogwood Festival Market & Promenade, Lakeland Commons, Market Street Flowood and Magnolia Marketplace.

Rankin County continues to see a heavy concentration in the Lakeland Drive corridor, near the intersection of Old Fannin Road and Lakeland Drive, with restaurant and shop space demand continuing to be strong. Panera Bread and Panda Express recently chose this sub-market as their first metro area locations, while local and regional favorites such as Amerigo’s and Half Shell Oyster House have opened locations there.

#3 highest average unit sales – Whataburger! “One of the best ways to see what chains are truly thriving in the $255 billion fast-food industry isn’t measured by the number of locations, but instead, how much money each location makes.”2015 United States average sales per unit: $2,530,000 – ranked top 3 United States systemwide sales: $1.75 billion



Broker of RecordAnne Wil l iams

M&M REIS of Nevada Inc5100 Poplar Avenue, Suite 2505

Memphis, TN 38137Tel: (901) 620-3600 Fax: (901) 620-3610

License: B-20181

Whataburger

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