Captain D’s Seafood - Constant Contactfiles.constantcontact.com/011cb4c9501/18e2ff94-b53...915...

915 Martin Street South - PELL CITY, ALABAMA 35128

Capta in D’s Seafood

ACTUAL PROPERTY

of fer ing memorandum

BROKER OF RECORDEdd ie G reenha lgh – L IC 205-510-9111

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. Activity ID: Y0330285 1


Investment Overv iew

• Captain D’s in Pell City, Alabama | Approximately 35 Miles West of Birmingham

• Eight and a Half Years Remaining on an Absolute-Net Lease | Zero Landlord Responsibilities

• Annual Increases of 1.5 Percent During the Base Term and in the Eight, Five-Year Options

• Corporate Guaranty | Number One Seafood Franchise by Average Unit Volume in The QSR 50 in 2016

• Strong Sales Momentum: 21 Consecutive Quarters of System-Wide Same-Store Sales Growth

• Pad Site to Pell City Market Place | 159,000 Square Feet of Retail | Anchored by Winn-Dixie, Kmart, and Sears

• Approximately One Mile South of Pell City Business District

• Other Tenants in the Vicinity Include: Walmart, Chick-fil-A, Home Depot, CVS, Walgreens, Buffalo Wild Wings, Dunkin Donuts, McDonalds, Dollar Tree, Little Caesars, Sonic, and Metro Bank

Marcus & Millichap is pleased to present this 3,398-square foot Captain D’s in Pell City, Alabama, approximately 35 miles west of Birmingham. There are over eight years remaining on an absolute-net lease with zero landlord responsibilities. The lease features 1.5 percent annual increases in rent during the base term and in the eight, five-year options, and is corporately guaranteed by Captain D’s, Limited Liability Company, the number one seafood franchise in America ranked by average unit volume.

This asset is strategically situated about two miles south of Interstate-20, which sees over 48,000 vehicles per day. This Captain D’s is located on Martin Street South and is also an outparcel to Pell City Market Place. Martin Street South sees more than 19,000 vehicles per day and the shopping center has over 159,000 square feet of retail, which is anchored by Winn-Dixie, Kmart, and Sears.

Other tenants in the vicinity include: Walmart, Chick-fil-A, Home Depot, CVS, Walgreens, Buffalo Wild Wings, Dunkin’ Donuts, McDonalds, Dollar General, Little Caesars, Sonic, and Metro Bank.

Actual Property



PRICE $1,063,000

CAP RATE 5.76%

NOI $61,253

PRICE PER SQUARE FOOT $312.83

RENT PER SQUARE FOOT $18.03

YEAR BUILT 1994

LOT SIZE .34 Acres

GROSS LEASEABLE AREA 3,398 Square Feet

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTOR Corporate Guarantee

LEASE TYPE Absolute-Net

ROOF AND STRUCTURE Tenant Responsible

LEASE COMMENCEMENT DATE August 30, 2005

LEASE EXPIRATION DATE August 31, 2025

LEASE TERM 20 Years

TERM REMAINING 8+ Years

INCREASES 1.5% Annually

OPTIONS TO RENEW 8, 5-Year Options

OPTIONS TO TERMINATE None

OPTIONS TO PURCHASE None

FIRST RIGHT OF REFUSAL Yes

Financia l Overv iew

OFFERING SUMMARY

LEASE SUMMARY

Actual Property



Tenant Overv iew - Capta in D’s Seafood

This Captain sails the fast food seas. The company operates Captain D’s Seafood Kitchen, a leading quick service seafood chain with more than 520 company owned and franchised locations primarily in the United States but also internationally. The eateries feature a menu of fried and broiled fish, shrimp, and chicken, as well as french fries, hush puppies, and corn on the cob. Captain D’s also serves fish and chicken sandwiches, salads, and menu items for kids. Most of the company’s restaurants are located in such southern states as Georgia, Tennessee, and Alabama. Ray Danner started the business as Mr. D’s in 1969. Private equity firm Sun Capital Partners acquired the chain in 2010. The fourth quarter of 2016 marked 21 consecutive quarters of system-wide same-store sales growth.

TENANT PROFILE

TENANT TRADE NAME Captain D’s, LLC

OWNERSHIP Private

TENANT Corporate Store

LEASE GUARANTOR Corporate Guarantee

NUMBER OF LOCATIONS 500+

HEADQUARTERED Nashville, TN

WEB SITE http://www.captainds.com/

RANK

Number One in Seafood

Franchise by Average

Unit Volume (The QSR 50

2017)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 1,593 8,289 15,334

2010 Population 2,057 10,660 18,982

2016 Population 2,218 11,476 20,301

2021 Population 2,323 12,016 21,212


H o u s e h o l d s

2000 Households 637 3,295 6,010

2010 Households 833 4,260 7,506

2016 Households 899 4,591 8,034

2021 Households 943 4,811 8,402


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

2016 Average HH Income $45,498 $50,044 $55,675

2016 Median HH Income $36,131 $38,115 $44,208

2016 Per Capita Income $18,441 $20,020 $22,033



Pell City, Alabama, in St Clair county, is 30 miles East of Birmingham, Alabama (center to center) and 109 miles West of Atlanta, Georgia. The city benefits from easy access to the nearby cities and towns with which it shares the Birmingham metropolitan area. Pell City contains a population of approximately 9,565.

Pell City HistoryPell City was originally set up by railroad investors in 1890. George H. Pell, from the Pell City Iron and Land Company, was one of the financial backers of the project, and the city was named after him. On May 6, 1891, the city was incorporated but it almost failed due to the panic of 1893. It was set up again by Sumter Cogswell in 1902. He built the Pell City Manufacturing Company which later became Avondale Mills. In 1956, Pell City merged with the towns of Eden and Oak Ridge.

Pell City Development and GrowthIn the mid-2000s, Pell City experienced a period of rapid residential and commercial growth spurred, partly, by the opening of the Honda Plant in nearby Lincoln, Alabama, a new industrial park on its northeastern border, and by a new retail area on the north side of I-20 anchored by a Wal-Mart, Home Depot, and several fast food and casual dining restaurants.

A Publix supermarket, small shopping center, and several restaurants have opened on the south end of Pell City. These developments will spur growth on the end of town that has a sizable, affluent population, but has been under-served by commercial development.

In 2015, Pell City residents voted to legalize the sale of alcohol on Sundays. A study commissioned by the City of Pell City projected a $6.8 million economic impact from the passage of this legislation.

The City announced in June 2016 that it had entered into an agreement with Premiere Cinemas to develop a new 40,000-square foot entertainment center which would include seven movie screens, a 10-lane bowling alley, a cafe, arcade and event rooms. The complex is scheduled to open in the Spring of 2017.

Things To Do In Pell CityThere are a number of notable locations in the city including the Showboat Camp, Knoxs Landing, and the Pell City Civic Center. The Pell City Public Library offers a host of information about the local history and culture. The churches around the town are also worth visiting. The Pell City Plaza Shopping Center offers a range of shopping facilities. The city’s creeks and lakes offer opportunities to indulge in water sports.

Pell City Higher EducationResidents of Pell City can enroll at Samford University and Jefferson State Community College. Other universities and colleges nearby include Jacksonville State University and Gadsden State Community College.

Market Overview - PELL CITY, ALABAMA



BROKER OF RECORDEdd ie G reenha lgh – L IC : 205-510-9111

CAPTAIN D’S SEAFOOD

Captain D’s Seafood - Constant Contactfiles.constantcontact.com/011cb4c9501/18e2ff94-b53...915...

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