ABSOLUTE NNN GROUND LEASE · Pawn Shop, Manufacturing Facility, Warehouse, Car Wash, Rental or...

ABSOLUTE NNN GROUND LE ASE

New 2018 Construction - New Store Prototype4606 Lebanon Pike, Hermitage, TN 37076

Smoothie King | Hermitage, TN | PG. 2

PROPERTY OVERVIEWWe are pleased to offer to qualified investors an absolute NNN ground lease investment that is 100% leased as a

Smoothie King on a brand new 11 year lease. This lease includes attractive inflation hedges with 12% increases

every 5 years including the 1 - 5 year option. Located in the main retail hub of Hermitage, TN the subject property

is positioned as an outparcel at Oakwood Commons; a Publix and Ross anchored Nashville community center and

is adjacent to a Walmart Supercenter - providing a large consumer draw to this location. Additionally, the subject

property is surrounded by a unique lineup of co-tenant outbuildings such as McDonald's, Bank of America, KFC,

Wells Fargo, and Workout Anytime which provides strong traffic flow to this center (30,000+ VPD).

This is an excellent opportunity to acquire a brand new 2018 construction, single tenant drive-thru QSR tenant,

leased with a personal guaranty and zero landlord responsibilities.

PRICING DETAILS

List Price $869,600NOI $50,003CAP Rate 5.75%Taxes NNN

Insurance NNN

CAM NNN

LEASE ABSTRACT

Tenant Trade NameSmoothie KingMac Smoothie LLC (19 Locations)

Rent Commencement* March 1, 2019*Seller to Provide Rent Credit at Close

Lease Expiration September 30, 2029

Lease Term 11 Years

Term Remaining On Lease 11 Years

Base Rent $50,003

Rental Adjustments 4/1/2023 - $56,004

Option Periods1 - 5 Year Option 12% Rental Increase 10/1/2029: $62,741.06

Lease Type NNN Lease

Roof & Structure Tenant Responsible

Personal Guaranty: Paul McCulloch

INVESTMENT HIGHLIGHTS• Absolute NNN Ground Lease - Zero Landlord Responsibilities - Personal Guaranty

• Brand New 11 Year Lease - Brand New 2018 Construction - New Store Prototype

• Inflation Hedge - 12% Increases Every 5 Years - 1 - 5 Year Option

• Fast Growing Area - Over 7.50% Population Increase Expected Next 5 Years

• Nearby Retailers Include Publix, Ross, Bed, Bath & Beyond, PetSmart, Walmart

Supercenter, McDonald's, Bank of America, Wells Fargo, Anytime Fitness, ALDI

• Approx. 49,656 Residents Within a 3 Mile Radius

• Affluent Neighborhood - AHHI of Over $82,000 Within a 3 Mile Radius

• Urban Land Institute - Nashville: 6th Best Investment Market Nationally in 2017

• #1 Investment Market in the Southeast

• Ideal 1031 Exchange Opportunity - Ease of Management - Coupon Clipper

• Nashville is the 4th Strongest Economy in the Country in 2018 per POLICOM


RESTRICTIONSBar, Lounge, Nightclub, Discotheque, Alcoholic Beverages in Excess of 40% of Gross Sales, Bowling Alley, Theater, Skating Rink, Billiard Parlor, Bingo Parlor, Off-Track Betting Facility, Casino, Gaming Hall, Gun Range, Computer Game Room, Amusement Center with Arcade, Pinball, Video or Electronic Games, Auditorium, Massage Parlor, Tatto Parlor, Funeral Home, Educational Facility, Beauty School, Barber College, Reading Room, Place of Instruction or Any Training Facility, Sale of Drug Paraphernalia, Sale or Display of Pornographic Material, Flea Market, Second-Hand Store or Pawn Shop, Manufacturing Facility, Warehouse, Car Wash, Rental or Servicing or Cars, Boats, or Other Motorized Vehicles or Equipment, Hotel or Lodging Facilities, Dry Cleaner, Non Retail Financial Institution, a Real Estate or Insurance Office, a Medical or Dental Office, Loan Office, Brokerage Ofice, Financial Planner's Office or Tax Preparation Office

EXCLUSIVES

America's Best Contacts & Eyeglasses, Bed Bath & Beyond, Tennessee Grinders, Check into Cash, Dollar Tree, Foot Solutions, Hadley's Southern Kitchen, Michelle's Hair Salon, McDonald's, Goody's/Pebbles, PetSmart, Publix Tennessee, Ross Dress for Less, Spirit Martial Arts, Supercuts, The UPS Store, Workout Anytime, Sally Beauty Supply


OAKWOOD COMMONS

# 1 I N V E S T M E N T M A R K E T I N T H E S O U T H E A S T

ANDR

EW J

ACKS

ON P

KWY.

14

,989

CPD

LEBANON PIKE 30,095 CPD 70


AERIAL OVERVIEW

Strong Demographics

$83,931Average Household Income

Within a 3-Mile Radius

ANDR

EW J

ACKS

ON P

KWY.

OLD HICKORY BLVD.

LEBA

NON

PIKE

LEBA

NON

PIKE

32,36

2 CPD

70

14,

989

CPD


PARCEL DETAILS

Parcel Building Size Land Size

TBD 838 SF .62 Acres


SITE PLAN


NOW OPEN | SMOOTHIE KING

ABOUT SMOOTHIE KINGSmoothie King Franchises, Inc. is a privately held, New Orleans-area-based

franchise company with more than 950 units worldwide. By creating each

smoothie with a "purpose", Smoothie King makes it simple and pleasurable

for guests to achieve their individual health goals. Each Smoothie King

store sells smoothies and a variety of vitamins, minerals, low fat snacks

and nutritional supplements.

Smoothie King Ranked #1 by Entrepreneur Magazine

In 2018, Smoothie King was ranked the #1 Juice

Bar Franchise on Entrepreneur Magazine's Annual

Franchise 500 list - marking the 25th year the brand

has occupied the number one spot and #35 overall.

The ranking is primarily based upon financial strength

and stability, growth rate and size of system.

A rewarding business winning big awards!

• Entrepreneur magazine's #1 Juice Bar Franchise for 25 years

• #35 Entrepreneur Magazine's 2017 Fastest Growing Franchises list

• #27 on Franchise Gator's 2017 Fastest Growing Franchises list

• #1 in Nation's Restaurant News' 2016 Consumer Pick in

the Limited Service Restaurants Beverage category


• The guarantor Paul McCulloch is the owner/operator of 19

Smoothie King franchises (including our site that just opened

last year).

• He is the only franchisee that has control over an entire

major metropolitan city (Nashville, TN).

• They opened their first Smoothie King franchise in 2005 and are

the largest single sole owner franchise in Smoothie King in the

United States out of 900 stores (more than 50% of all Smoothie

Kings stores are single store owners).

• Paul McCulloch also served as President/Chairman of the

Smoothie King Franchisee board from 2016-2017

(it is a 2-year term).

MSA OVERVIEWThe Nashville Economic Market has 10 counties and a population of more than 1.9

million, making it the largest metro area in a five-state region. Many corporate

headquarter giants call Nashville home, including Nissan North America, Bridgestone

Americas, Dollar General, Hospital Corporation of America and Gibson Guitar.

Nashville’s economic growth rate in 2017 nearly doubled that of U.S. cities as a

group. The Nashville region’s economy continues to be a key driver of business

activity in Tennessee and the southeast region. Nashville has ranked within the top

10 large metros for job growth and population growth for the past four years. The

area has experienced unprecedented growth with population growth expanding at

9.8%, job growth of 13.2%, and GDP growth of 27.1% from 2011 – 2016. Additionally,

Nashville’s gross GDP grew 4% in 2017 – which is its 4th straight year of at least

4% – to more than $133 billion. The MSA trails only Silicon Valley, Austin, Seattle,

and San Antonio with metro areas of $100 billion.



NASHVILLE Located in northern Middle Tennessee, Nashville is the main core of the largest metropolitan area in Tennessee. The 2017 population of the entire 13-county Nashville metropolitan area (known colloquially as "The Mid-State") was 1,903,045. The 2015 population of the Nashville—Davidson–Murfreesboro–Columbia combined statistical area, a larger trade area, was 2,027,489.

EconomyNashville is a center for the music, healthcare, publishing, private prison, banking and transportation industries, and is home to numerous colleges and universities such as Tennessee State University, Vanderbilt University, Belmont University, Fisk University, and Lipscomb University. As the "home of country music", Nashville has become a major music recording and production center. The Big Three record labels, as well as numerous independent labels, have offices in Nashville, mostly in the Music Row area.

In recent times Nashville has been described as a "southern boomtown" by numerous publications, with it having the third fastest growing economy in the United States as of 2017. It has been stated by the US Census bureau that Nashville "adds an average of 100 people a day to its net population increase". The Nashville region was also stated to be the "Number One" Metro Area for Professional and Business Service Jobs in America, as well as having the "hottest Housing market in America" as stated by Zillow.

Although Nashville is renowned as a music recording center and tourist destination, its largest industry is health care. Nashville is home to more than 300 health care companies, including Hospital Corporation of America (HCA), the world's largest private operator of hospitals.

Population 1-MILE 3-MILE 5-MILE

Estimated Population (2018) 8,404 50,015 107,666

Projected Population (2023) 8,913 53,967 116,796

Households 1-MILE 3-MILE 5-MILE

Estimated Households (2018) 3,468 19,111 42,855

Projected Households (2023) 3,664 20,539 46,297

POPULATION DENSITY

50,015 Residents



Income 1-MILE 3-MILE 5-MILE

Avg. Household Income (2018) $68,076 $83,931 $85,190

Median Household Income (2018) $61,708 $70,577 $70,411

Business Facts 1-MILE 3-MILE 5-MILE

Total # of Businesses (2018) 363 1,521 2,986

Total # of Employees (2018) 2,511 11,651 27,514

$$ STRONG DEMOGRAPHICS

$83,931Average Household Income



This Offering Memorandum contains select information pertaining to the business and affairs of Smoothie King - Hermitage, TN. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of Smoothie King - Hermitage, TN or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

Colliers International | 3 Park Plaza, Suite 1200 | Irvine, CA 92614 | Snyder/Carlton Team

Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s) 2015. All rights reserved


INVESTMENT CONTACTS

Colliers International | 3 Park Plaza, Suite 1200 | Irvine, CA 92614 | Snyder/Carlton Team

Jereme SnyderExecutive Vice PresidentLicense No. 01360233

[email protected]

Spencer O’DonnellAssociate Vice PresidentLicense No. 01954051

[email protected]

Local AgentJim Morris

Senior Vice PresidentTN License No. [email protected]

Eric CarltonExecutive Vice PresidentLicense No. 01809955

[email protected]

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