Actual Wendy’s Restaurant - ctbt.com · LOT SIZE Approximately 1.158 acres — 50,444+/– square...

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

For more information, please contact:

Robert C. Sanner

Partner/Broker

415-677-0439

[email protected] LIC #00869657

Richard M. Sanner

Vice President

415-677-0429

[email protected] LIC #01792433

In Association with:

Bret Bunnett

Regional Managing Principal

Texas Licensee LIC #3128590

Cassidy Turley Northern California www.ctbtnnn.com

Wendy’s Corporate Ground Lease $100 K Income Dallas Suburb

The Highest Growth City in the USA in the Last Decade!!

Price: $1,752,000 — 5.25% Cap Rate

New Long-Term Absolute NNN Ground Lease with Increases

Outparcel to Costco Anchored Shopping Center

Frisco, Texas

Actual Wendy’s Restaurant

EXCLUSIVE LISTING

Wendy’s Frisco, Texas

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw

LOCATION 5555 El Dorado Parkway, at Dallas North Tollway, Frisco, Texas. 24 miles north of

downtown Dallas. Within Frisco Trails shopping center, anchored by Costco.

LOT SIZE Approximately 1.158 acres — 50,444+/– square feet

Only the land is for sale

IMPROVEMENTS Constructed in 2011, a 3,000+/– square foot freestanding WENDY’S restaurant with

drive-thru and 48 parking spaces.

The improvements were built and are owned by the tenant. The

improvements are not for sale.

GROUND LEASE Ground leased to WENDY’S COMPANY, for 15 years from January 1, 2012 until

December 31, 2027. The annual rent of $92,000 increases by 10% every five years

throughout the initial term. The lease is absolute net, with the tenant responsible for

all taxes, insurance and maintenance including roof and structure. There are four 5-

year options to renew with 10% rent increases each option period.

ANNUAL INCOME

PRICE $1,752,000 — 5.25% Cap Rate

YEARS ANNUAL RENT

1–5 $ 92,000

6–10 $101,200

11–15 $111,320

Option 1 $122,452

Option 2 $134,697

Option 3 $148,166



ABOUT THE TENANT WENDY’S COMPANY (NASDAQ: WEN) is the second largest quick-service

hamburger company in the United States. The Wendy’s system includes more than

6,500 franchise and company restaurants in the U.S. and 21 other countries and U.S.

territories worldwide.

Prior to 2011, the company also owned Arby’s Roast Beef and was known as

Wendy’s/Arby’s. Arby’s was underperforming and was sold during 2011; thus the

Wendy’s chain is all that remains in the company.

For the year 2011, the company reported revenue of $2.431 billion, with net income

from continuing operations of $17.9 million and stockholder’s equity of $1.996 billion.

Moreover, in 2011, the company had one-time costs of $45+ million, most of which

were related to the sale of Arby’s. For example, there were significant costs of

employee severance, and relocation and scale-down of the corporate headquarters.

Without these costs, net income, of course, would have been significantly higher.

Wendy’s Press Release (Paraphrased)

At Wendy’s, customer focus has fueled growth and led to unique, innovative menu

offerings like Garden Sensations salads, Combo Choices, Super Value Menu, Frosty,

Frosty Shakes, Boneless Chicken Wings, Chicken Go Wraps, and signature

hamburger offerings using fresh beef. The Wendy’s fresh, made-to-order menu items

allow customers to get their meal exactly how they want it, every time. There are

more than 6,500 Wendy’s restaurants in operation in the United States and in 21

other countries and territories. Of these restaurants, nearly 1,400 are operated by

Wendy’s and approximately 5,100 by Wendy’s franchisees.

For more information, visit the company website www.wendys.com



INTERESTING FACTS

ABOUT WENDY’S

The company was founded by the late Dave Thomas in 1969, who named it after his

daughter Wendy. Wendy Thomas Morse, jointly with siblings, now owns about 30

locations.

Dave Thomas was an adopted child, who was noted before his death in 2002 as a

fervent champion of adoption organizations. He was a high-school drop-out who was

a “self-made man.”

Wendy’s for many years was headquartered at 1 Dave Thomas Boulevard in a

suburb of Columbus, Ohio, where it was founded.

The signature items at Wendy’s are Frosty shakes and desserts; and the square-

shaped hamburgers. Its newest burger, higher price and upscale, is “Dave’s Hot ‘N

Juicy” burger.

Nearly 80% of the Wendy’s units are franchised. Therefore, the revenues reported

by Wendy’s on those units are franchisee fees, not total revenue at these stores. A

reasonable estimate of total “system-wide-revenue” for Wendy’s is about $8.5 billion

in the U.S. (see below)

In March, 2012, a food industry research firm, Technomic, announced that, according

to its estimates:

1. Wendy’s has U.S. sales of $8.5 billion,

2. Burger King, whose sales have been flat for years, has U.S. sales of $8.4 billion,

3. Therefore, Wendy’s has overtaken Burger King as the #2 burger chain in the

U.S., behind McDonald’s,

4. This is the first time since Wendy’s was founded, 40+ years ago, that the

company has been in the #2 slot.



SITE INFORMATION The subject property is located outparcel to a Costco anchored shopping center,

Frisco Trails, on the southeast quadrant of the Dallas North Tollway and Eldorado

Parkway. The site has 170 feet frontage on Eldorado Parkway and is approximately

300 feet east of the Dallas North Tollway. The shopping center is adjacent to Home

Depot.

Frisco Trails is centrally located in the West Frisco Little Elm trade area, which has

experienced a growth rate of over 206% in the past five years. Tenants in this center

benefit from the regular traffic of Costco which opened in October, as well as the

other major retailers at the intersection including Super Target, Petco and Best Buy.

Surrounding retailers include Market Street Grocers, Dollar Tree, Famous Footwear,

McDonald’s, Whataburger, Chili's, Chick Fil A, Mattress Firm, Bank of America, Wells

Fargo and many more.

TRAFFIC COUNTS El Dorado Parkway – 14,406 vpd

Dallas North Tollway Frontage Road – 24,282 vpd

*Source: North Central Texas Council of Governments (NCTCOG)

ABOUT THE AREA Frisco is located 24 miles north of Dallas. The city is a rapidly growing affluent

suburb of Dallas. As of the 2010 Census, 116,989 people were living in Frisco

up from only 33,714 in the previous census. Thus population more than tripled!

Frisco was the fastest growing city in the nation from 2000-2009.

Frisco serves as a bedroom community for many professionals who work in the

Dallas–Fort Worth Metroplex. It is also a popular shopping destination for the region.

Dallas

Dallas is the third-largest city in Texas and the ninth-largest in the United States. The

Dallas-Fort Worth Metroplex is the largest metropolitan area in the South and fourth-

largest metropolitan area in the United States. The city had a census population of

1,197,816 in 2010.

The city is the largest economic center of the 12-county Dallas–Fort Worth

metropolitan area, which had a population of roughly 6.37 million as of March 2010.

Dallas is home to 12 Fortune 500 companies, including household names such as

Halliburton, Southwest Airlines, and Texas Instruments. Dallas was ranked fifth on

the list of cities with the most Fortune 500 headquarters.



ABOUT THE AREA Economy

The city’s economy is primarily based on banking, commerce, telecommunications,

computer technology, energy, and transportation, and the city is home to the third

largest concentration of Fortune 500 companies in the nation.

The city has a high concentration of telecommunications companies in the region,

along the Telecom Corridor. The Corridor has operations/offices of more than 5,700

companies including Texas Instruments, Nortel Networks, Alcatel Lucent, AT&T,

Ericsson, Fujitsu, Nokia, Rockwell Collins, Cisco Systems, Sprint and Verizon

Communications.

Texas Instruments employs 10,400 people at its corporate headquarters and chip

plants in Dallas. Defense and aircraft manufacturing dominates the economy of

nearby Fort Worth.

The Dallas-Fort Worth Metroplex has one of the largest concentrations of corporate

headquarters for publicly traded companies in the United States. Dallas has 12

Fortune 500 companies, and the DFW region as a whole has 20. In 2007–08,

Comerica Bank and AT&T relocated their headquarters to Dallas. Irving is home to

four Fortune 500 companies, including ExxonMobil, Kimberly-Clark, Fluor

(engineering), and Commercial Metals. Additional companies headquartered in

the Metroplex include Southwest Airlines, American Airlines, RadioShack, Neiman

Marcus, 7-Eleven, Brinker International, AMS Pictures, id Software, ENSCO Offshore

Drilling, Mary Kay Cosmetics, Chuck E. Cheese’s, Zales and Fossil. Corporate

headquarters in the northern suburb of Plano include HP Enterprise Services, Frito

Lay, Dr Pepper Snapple Group, and JCPenney.

Dallas is home of two major malls in North Texas, the Dallas Galleria and NorthPark

Center, which is the 2nd largest mall in Texas. Both malls feature high-end stores

and are major tourist draws for the region.

According to Forbes Magazine's annual list of "The Richest People in America"

published September 21, 2011, the city itself is now home to 17 billionaires, up from

14 in 2009. In 2009 (with 14 billionaires) the city placed 6th worldwide among cities

with the most billionaires.

Dallas is currently the third most popular destination for business travel in the United

States, and the Dallas Convention Center is one of the largest and busiest

convention centers in the country, at over 1,000,000 square feet, and the world's

single-largest column-free exhibit hall.



ABOUT THE AREA

(CONTINUED)

Education

Dallas is a major center of education for much of the south central United States. The

Dallas area contains a number of universities, colleges, trade schools, and other

educational institutions.

The University of Texas Southwestern Medical School is located within the city. It is

one of the largest groupings of medical facilities in the world. The facility enrolls

4,400 students, including post-graduates.

DFW International Airport

DFW International Airport is the largest airport in the state, the 4th largest in the

United States, and 6th largest in the world. With an estimated 57 million passengers

a year, DFW is hub to American Airlines and is served by a host of major domestic

and foreign airlines offering flights to all points of the globe. It is midway

between Dallas and Fort Worth and is 23 miles southwest of the subject site.

DEMOGRAPHICS

NOTE The information set forth herein has been received by us from sources we believe to

be reliable, but we have made no independent investigation of the accuracy or

completeness of the information and make no representations with respect thereto.

The above is submitted subject to errors, prior sale or lease, change in status, or

withdrawal without notice.

TEXAS

2011 ESTIMATES 1-MILE 3-MILE 5-MILE

Population 472 31,461 58,852

Average HH Income $99,696 $99,154 $93,698

Growth 2000-2011 2,362% 586% 368%

FRISCO TRAILS SITE PLAN

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GROUND PHOTOS



AERIAL



MAP



MAP

DFW International

Airport



MAP



Updated Summary Report (%)

March 20, 2012

Longitude: -96.83867890

Latitude: 33.17436370

1 mi

Ring

3 mi

Ring

5 mi

Ring

POPULATION

1990 Total Population 7 1,844 5,068




% Population Change 1990-2000 128.57% 108.89% 108.01%

% Population Change 2000-2011 2,362.44% 586.58% 368.78%

% Population Change 2011-2016 19.86% 18.96% 19.09%

HOUSEHOLDS

1990 Total Households 3 626 1,772

2000 Total Households 6 1,259 3,635



% Households Change 1990-2000 100.00% 101.12% 105.14%

% Households Change 2000-2011 1,876.77% 556.08% 336.53%

% Households Change 2011-2016 16.91% 17.32% 17.09%

2011 RACE

% 2011 White Population 68.35% 75.11% 74.16%

% 2011 Black Population 13.16% 9.35% 9.42%

% 2011 American Indian/Alaska Native .51% .50% .60%

% 2011 Asian/Hawaiian/Pacific Islander 10.63% 8.17% 7.26%

% 2011 Other Population (Incl 2+ Races) 7.34% 6.87% 8.56%

% 2011 Hispanic Population 14.21% 13.67% 16.75%

% 2011 Non-Hispanic Population 85.79% 86.33% 83.25%



Updated Summary Report (%)

March 20, 2012

Longitude: -96.83867890

Latitude: 33.17436370

1 mi

Ring

3 mi

Ring

5 mi

Ring

INCOME

2011 Per Capita Income $30,012 $30,968 $30,086

2011 Median Household Income $83,172 $85,894 $84,722

2011 Average Household Income $99,696 $99,154 $93,698

% 2011 Household Income < $10,000 5.88% 3.27% 3.08%

% 2011 Household Income $10,000-$14,999 .00% 1.39% 1.63%

% 2011 Household Income $15,000-$19,999 1.68% .75% .89%

% 2011 Household Income $20,000-$24,999 5.04% 2.75% 2.62%














% 2011 Household Income $500,000+ .00% .10% .22%

2011 Average Household Size 3.1 3.2 3.1

% 2011 Total Owner Occupied Housing Units 92.99% 89.39% 81.28%

% 2011 Total Renter Occupied Housing Units 7.01% 10.61% 18.72%

2011 Total Daytime Population 446 15,744 31,894

2011 Total Daytime Work Population 108 4,560 8,977

2011 Total Establishments 11 496 978

Actual Wendy’s Restaurant - ctbt.com · LOT SIZE Approximately 1.158 acres — 50,444+/– square...

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Transcript of Actual Wendy’s Restaurant - ctbt.com · LOT SIZE Approximately 1.158 acres — 50,444+/– square...