1711 7TH STREET, LAS VEGAS, NM 87701 OFFERING MEMORANDUM ...€¦ · This Offering Memorandum...

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R E T A I L A D V I S O R SOFFERING MEMORANDUM

ARBY’S 1711 7TH STREET, LAS VEGAS, NM 87701

REPRESENTATIVE PHOTO

Matthews Retail Advisors

CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Arby’s located at 1711 7th Street, Las Vegas, NM 87701 (“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 completeness 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.

EXCLUSIVELY LISTED BY:

Table of ContentsPRICING & FINANCIAL ANALYSIS

Investment Highlights ................................................... 2Executive Summary ..................................................... 3Company Overview ................................................... 4

PROPERTY DESCRIPTIONPhysical Description ..................................................... 7Birds Eye .................................................................... 8Regional Map ............................................................. 9Tenant Map .............................................................. 10

DEMOGRAPHICSCity Overview | Las Vegas, NM ................................. 13Demographics Report ................................................ 14

Gary ChouDirector | Restaurant Practice Group DIRECT +1.310.919.5827 MOBILE +1.714.928.8016 [email protected] License No. 01911222

Matt ReevesBroker of Record License No. 19104

Matthews Retail Advisors REPRESENTATIVE PHOTO

Pricing & Financial Analysis


OFFERING MEMORANDUM | Arby’sP. 2 Matthews Retail Advisors

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Investment Highlights

QUALITY NATIONAL TENANT AND OPERATIONS

• Arby’s Restaurant Group, Inc. is the second largest quick-service sandwich chain in the U.S. with more than 3,400 restaurants

• Large Franchisee Operator –MJG Corporation

• Absolute NNN Investment – Zero landlord responsibility making this investment great for out of state investors looking for passive income

STRONG RETAIL CORRIDOR

• This Arby’s is located in a great retail location directly across the street from a Walgreens

• Located on 7th street which is the main retail corridor of Las Vegas, NM

• Large residential area within a one mile radius of Arby’s.

• National tenants in the area include: McDonald’s, Walgreens, Radio Shack, Wendy’s, Lowe’s, Sonic, Verizon, and Taco Bell

Matthews Retail Advisors P. 3Arby’s | OFFERING MEMORANDUM


Executive Summary

ARBY’S1711 7TH STREET LAS VEGAS, NM 87701

List Price ..............................................................................................$556,000CAP Rate - Current ...................................................................................8.50%Gross Leasable Area ........................................................................ 2,500 SFYear Built ........................................................................................................1985

Annualized Operating DataMonthly Rent Annual Rent CAP Rate

Current - 6/16/2017 $3,933.82 $47,205.84 8.50%

6/16/2017 - 6/16/2019 $4,051.83 $48,622.02 8.74%

Option 1 - 6/16/2021 $4,173.39 $50,080.68 9.01%

Tenant Summary

Tenant Trade Name Arby's

Type of Ownership Fee Simple

Lease Guarantor MJG Corporation

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20

Lease Commencement Date 12/1/2009

Rent Commencement Date 12/1/2009

Lease Expiration Date 11/30/2019

Term Remaining on Lease 4.3

Increases 3%/2years

Options Two (2) 5-Year Options



Company Overview

Arby’s Restaurant Group, Inc. is the second largest quick-ser-vice sandwich chain in the U.S. with more than 3,400 restau-rants system wide.

Roark Capital Group acquired the company in July 2011 and owns 81.5% of the company, with The Wendy’s Company own-ing the other 18.5%. In addition to its classic Roast Beef and Beef ‘n Cheddar sandwiches, Arby’s products also include deli-style Market Fresh line of sandwiches, Curly Fries and Jamocha Shakes. Its headquarters is in Sandy Springs, Georgia.

As of December 31, 2013, there were 956 company-owned restaurants and 2,448 franchised restaurants. There are inter-national locations in four countries outside of the United States: Canada, Turkey, United Arab Emirates and Qatar.

Property Name Arby’s

Property Type Net Leased Quick Service Restaurant

Parent Company Trade Name Arby’s

Ownership Private

Revenue $3.26 B

No. of Locations 3,400+

No. of Employees 70,000+

Headquartered Sandy Springs, Georgia

Web Site www.arbys.com

Year Founded 1964

Property Description



Physical Description

THE OFFERING

Property Name ...............................................................................................Arby’s

Property Address ............................................................................1711 7th Street

Las Vegas, NM 87701

Assessor’s Parcel Number .......................................................................654890

SITE DESCRIPTION

Number of Stories .............................................................................................One

Year Built .............................................................................................................1985

Gross Leasable Area (GLA) .................................................................. 2,500 SF

Type of Ownership ...............................................................................Fee Simple

Landscaping ........................................................................................Professional

Topography ................................................................................... Generally Level

CONSTRUCTION

Foundation .......................................................................................Concrete Slab

Framing .............................................................................................................Wood

Exterior ............................................................................................ Painted Stucco

Parking Surface ............................................................................................Asphalt

Roof ........................................................................................................................Flat




Birds Eye

VPD

: 9,00

0+



Regional Map



Tenant Map

Demographics


PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

City Overview | Las Vegas, NM

Las Vegas is a city in San Miguel County, New Mexico, United States. Once two separate towns, West Las Vegas (“Old Town”) and East Las Vegas (“New Town”), divided by the Gallinas River, retain distinct characters and separate, rival, school districts.

Las Vegas is the home of New Mexico Highlands University and Luna Community College. The United World College in nearby Montezuma, New Mexico is a two-year international high school and one of the venues used by the International Baccalaureate Program for teacher training in the United States.

Las Vegas was established in 1835 after a group of settlers received a land grant from the Mexican government. The town was laid out in the traditional Spanish Colonial style, with a central plaza surrounded by buildings which could serve as fortifications in case of attack. Las Vegas soon prospered as a stop on the Santa Fe Trail. During the Mexican-American War in 1846, Stephen W. Kearny delivered an address at the Plaza of Las Vegas claiming New Mexico for the United States.

Las Vegas is home to a very large number of historic structures (mostly railroad-era houses and commercial buildings), with over 900 listed on the National Register of Historic Places. Although many buildings are in varying states of deterioration, others have been restored or are awaiting restoration. Some of the city’s notable buildings include:

* Dr. H.J. Mueller House, 1881 example of Victorian eclecticism with unusual octagonal tower* Plaza Hotel, 1881, site of the first reunion of Teddy Roosevelt’s Rough Riders in 1899* Old City Hall, New Mexico’s first municipal building, completed in 1892* Louis Fort House, Queen Anne house on Carnegie Park, built in 1895* Masonic Temple, Richardsonian Romanesque building erected in 1895* La Castaneda Hotel, mission-style Harvey House built in 1898* Carnegie Library, built in 1903 at the center of Carnegie Park and modeled after Monticello



Demographics Report

Population 1-Mile 3-Mile 5-Mile2020 Projection 16,391 166,412 494,5832015 Estimate 16,604 165,385 488,6462010 Census 17,218 167,596 491,1842000 Census 18,455 181,650 492,754

Households2020 Projection 7,148 66,269 179,9282015 Estimate 7,161 65,069 176,0232010 Census 7,281 64,539 173,6592000 Census 7,849 72,223 182,635

Income$0 - $15,000 26.06% 25.70% 25.70%$15,000 - $24,999 19.09% 19.44% 19.44%$25,000 - $34,999 13.45% 15.74% 15.74%$35,000 - $49,999 12.20% 14.53% 14.53%$50,000 - $74,999 13.43% 12.97% 12.97%$75,000 - $99,999 6.33% 5.18% 5.18%$100,000 - $124,999 3.32% 2.51% 2.51%$125,000 - $149,999 1.75% 1.33% 1.33%$150,000 - $199,999 1.75% 1.28% 1.28%$200,000 - $249,999 0.74% 0.41% 0.41%$250,000 - $499,999 1.24% 0.66% 0.66%$500,000+ 0.64% 0.25% 0.25%2015 Est. Average Household Income $47,116 $40,511 $43,628 2015 Est. Median Household Income $28,611 $28,091 $32,218

Matthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.Matthews.com

ARBY’S1711 7th StreetLas Vegas, NM 87701OFFERING MEMORANDUM

Matt ReevesBroker of Record License No. 19104

™

Gary ChouDirector | Restaurant Practice Group DIRECT +1.310.919.5827 MOBILE +1.714.928.8016 [email protected] License No. 01911222

1711 7TH STREET, LAS VEGAS, NM 87701 OFFERING MEMORANDUM ...€¦ · This Offering Memorandum...

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