Post on 07-Jul-2020
POPEYESPOST FALLS, ID
SUBJECT PROPERTY
POPEYES
6.00%CAP
$2,750,000PRICE
767 N NEUFELD LANE, POST FALLS, ID 83854
20-year lease with 10% rental increases every five years
Located off Interstate 90 benefiting from 56,000+ VPD
Average household incomes within a 5-mile radius over $63k
30 minutes from Spokane International Airport
Strong personal guaranty and unit level volumes (Speak with Agent)
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. Buyer must verify the information and bears all risk for any inaccuracies.
LEASABLE SF3,149 SF
LEASE EXPIRATION2037
LEASE TYPEAbsolute NNN
LAND AREA1.26 Acres
YEAR BUILT2017
PARKING21 SPACES
SUBJECT PROPERTY
2
Overview
THE OFFERING is a sale/leaseback Popeyes in Post Falls, Idaho, which is located between Spokane and Coeur d’Alene. Post Falls is one of the fastest growing cities in Idaho and part of a CSA with a population of over 710,000. The property is accessible off Interstate 90, which connects Idaho & Washington and has 56,000+ VPD.
At closing, the tenant will execute a 20-year absolute net lease with 10% rental increases every 5 years providing a reliable long term income stream to the investor. The guarantor is an experienced multi-concept franchisee that has over 25 other restaurants under the Popeyes, Black Bear Diner, Sonic, and Twin Peaks flags. The lease includes a strong personal guarantee and a sales reporting provision providing for transparency and security to a new owner. Sales to date are strong.
Contact the team
2017 SYSTEM-WIDE SALES OF $888M
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. Buyer must verify the information and bears all risk for any inaccuracies.
JOHN ANDREINIjandreini@capitalpacific.comPH: 415.274.2715ID BRE# AB42816CA BRE# 01440360
THE RETAIL MARKET includes high quality retailers such as Walmart Supercenter, Starbucks, Verizon, AT&T, Sonic Drive-In, Del Taco, Wendy’s and many others.
SUBJECT PROPERTY
3
Investment Highlights
41
95
395
POPULATION: 556,000
SPOKANE MSAPOPULATION:
32,000
POST FALLS
POPULATION: 153,000
COEUR D’ ALENE MSA
90
90
90
95
195
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. Buyer must verify the information and bears all risk for any inaccuracies.
Zoomed-Out Aerial
4
56,000 VPD
90
90
90
41
41
N NE
UFEL
D LA
NE
N G
REENSFERRY RO
AD
N G
REEN
SFER
RY R
OA
DNORTHERN
IDAHO ADVANCED
CARE HOSPITAL
REHABILITATION HOSPITAL OF THE
NORTHWEST
H&R BLOCK
STATE OF
IDAHO
CITY OF POST FALLS
THE HIGHLANDS
GOLF COURSE
®
PONDEROSA ELEMENTARY
SPOKANE27 MILES
56,000 VPD
24,500 VPD
2,800 VPD
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. Buyer must verify the information and bears all risk for any inaccuracies.
5
Zoomed-In Aerial
6
Surrounding Retail
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. Buyer must verify the information and bears all risk for any inaccuracies.
PRICE $2,750,000
Price Per Square Foot: $873.29
Capitalization Rate: 6.00%
Total Rentable Area (SF): 3,149
Lot Size (AC): 1.26
STABILIZED INCOME PER SQUARE FOOTScheduled Rent $52.40 $165,000
Effective Gross Income $52.40 $165,000
LESS PER SQUARE FOOTTaxes NNN $0.00
Insurance NNN $0.00
Total Operating Expenses NNN $0.00
EQUALS NET OPERATING INCOME $165,000
SUBJECT PROPERTY
7
Income & Expense
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. Buyer must verify the information and bears all risk for any inaccuracies.
TENANT INFO LEASE TERMS RENT SUMMARY
TENANT NAME SQ. FT. CURRENT RENT
MONTHLY RENT
YEARLY RENT
Popeyes 3,149 1 5 $165,000 $13,750 $165,000
6 10 $15,125 $181,500
11 15 $16,638 $199,650
16 20 $18,301 $219,615
Option 1 21 25 $20,131 $241,577
Option 2 26 30 $22,145 $265,734
Option 3 31 35 $24,359 $292,308
Option 4 36 40 $26,795 $321,538
TOTALS: 3,149 $165,000 $13,750 $165,000
*20 year lease to commence at close of escrow.
8
Rent Roll
BASE RENT
DATE RANGE MONTHLY RENT ANNUAL RENT
1-5 $13,750 $165,0006-10 $15,125 $181,50011-15 $16,638 $199,65016-20 $18,301 $219,615
OPTION RENTS
DATE RANGE MONTHLY RENT ANNUAL RENT
#1. 21-25 $20,131 $241,577#2. 26-30 $22,145 $265,734#3. 31-35 $24,359 $292,308#4. 36-40 $26,795 $321,538
RENT
TENANT PopeyesBUILDING SF 3,149 SFLEASE TYPE Absolute NNNTERM 20 YearsRENT COMMENCEMENT Close of escrowEXPIRATION 20 years from close of escrowOPTIONS Four 5-year options
PREMISES& TERM
TAXESTenant is responsible for the direct payment of property taxes.
INSURANCETenant shall maintain, at Tenant’s sole cost and expense, all-risk (special form) commercial property insurance with limits sufficient to replace one hundred percent (100%) of the Premises and commercial general liability with a combined single limit of not less than $5,000,000.
UTILITIESTenant is responsible for direct payment of all utilities to appropriate billing authority.
TENANT’S OBLIGATIONSTenant is responsible for all maintenance and repair to the entirety of the Premises, including all interior and exterior, structural, and nonstructural repairs and replacement.
LANDLORD’S OBLIGATIONSZero Landlord maintenance or management responsibilities.
ASSIGNMENT/SUBLETTINGTenant shall have the right to assign, transfer, or sublease their interest in the premises with the prior written consent of Landlord. However, no such assignment or transfer shall relieve Tenant of Tenant’s liability or obligations under the terms of the Lease.
EXPENSES
LEASEPROVISIONS
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. Buyer must verify the information and bears all risk for any inaccuracies.
9
Lease Abstract
N NEUFELD LANE
N NEUFELD LANE
E MULLAN AVENUE
HIG
HW
AY 4
1
HIG
HW
AY 41
41
90
41
56,000 VPD
12,110 VPD
24,500 VPD
Site Plan
10This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
21SPACES
3,149RENTABLE SF
1.26ACRES
V
Founded in New Orleans in 1972, Popeyes has more than 40 years of history and culinary tradition. Popeyes distinguishes itself with a unique New Orleans style menu featuring spicy chicken, chicken tenders, fried shrimp, and other regional items. Popeyes is one of the world’s largest quick service restaurant chicken concepts with over 2,700 restaurants globally.
On February 21, 2017, Restaurant Brands International, the parent of Burger King and the Tim Hortons doughnut and coffee chain, announced the acquisition of Popeyes Louisiana Kitchen for $1.8 Billion. Popeye’s had a 2016 domestic revenue of nearly $269 million and a net income of nearly $43 million. Over the last 2 years, their compounded sales growth rate has been over 20%.
ABOUT POPEYES
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. Buyer must verify the information and bears all risk for any inaccuracies.
SUBJECT PROPERTY
The tenant operates over 25 restaurants including 10 Black Bear Diners, 14 Popeyes, a Sonic, and a Twin Peaks restaurant. They will execute a personal guaranty at closing, which will be cross-collateralized with the above-mentioned operating assets. This diversification of the sponsor guaranty across national brands provides an investor with a more stable and reliable income stream.
ABOUT GUARANTOR/OPERATOR
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Tenant Overview
POPULATION
1-MILE 3-MILES 5-MILES
2010 6,576 28,479 59,872
2017 7,118 33,158 70,250
2022 7,752 36,340 77,700
2017 HH INCOME
1-MILE 3-MILES 5-MILES
Average $68,914 $65,298 $63,434
Median $53,279 $51,532 $49,726
KOOTENAI COUNTY TOP EMPLOYERS
EMPLOYER
Kootenai Medical Center
Coeur d’Alene Resort
Coeur d’Alene Casino
North Idaho College
U.S. Bank Customer Service Center
POST FALLSSPOKANE (29 MINS 27 MILES)
THE AVERAGE HOUSEHOLD INCOME WITHIN A 1-MILE RADIUS
IS OVER $68K
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. Buyer must verify the information and bears all risk for any inaccuracies.
Demographics
COEUR D’ALENE(12 MINS 7 MILES)
POST FALLS, IDAHO
POST FALLS is located four miles east of the Washington-Idaho border along Interstate 90 in Kootenai County, Idaho. It is bounded by Coeur d’Alene, Idaho to the east, and Spokane, Washington to the west - with a combined metro area population of over 710,000. As the 10th largest city in Idaho, Post Falls is ranked #1 for population growth with a current population of 32,000+.
Due to the proximity of numerous lakes, rivers, and mountains and recreational opportunities, the tourism and retail sectors of the economy are growing with an increasing number of retail, dining, and entertainment businesses located in the city. Additionally, Post Falls has a growing medical and healthcare community.
KOOTENAI COUNTY has experienced exceptional population growth since the 1970s. Over the past 25 years, the local economy grew at an astounding rate on a diversifying manufacturing base and
expanded tourism. Idahoans and out-of-state visitors flock to Coeur d’Alene year round to enjoy its lakes, trails, and resorts. Supporting the area’s resorts, the local tourism industry employs more than 10,000 people in northern Idaho, and tourism accounted for 6.8 percent of the region’s overall payroll in 2010. By 2020, it is estimated that the region’s tourism industry will create an additional 1,560 jobs.
KOOTENAI COUNTY
710,000
SPOKANE-COEUR D’ALENE CSA POPULATION (ESTIMATED)
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. Buyer must verify the information and bears all risk for any inaccuracies.
SPOKANE, WASHINGTON
13
Location Overview
We’d love to hear from you.
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. Buyer must verify the information and bears all risk for any inaccuracies.
JOHN ANDREINIjandreini@capitalpacific.comPH: 415.274.2715ID BRE# AB42816CA BRE# 01440360
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SUBJECT PROPERTY