OFFERING MEMOR ANDUM LONG JOHN...

L O N G J O H N S I L V E R ’ SO F F E R I N G M E M O R A N D U M

1 8 0 2 S M A I N S T R E E T , R O S W E L L , N M 8 8 2 0 3

1 5 Y E A R N N N S A L E L E A S E B A C K

O F F E R I N G P R I C E

$708,000C A P R AT E

6.50%

LO N G J O H N S I LV E R ’S1802 S M A I N S T R E E T, R O S W E L L , N M

L O N G J O H N S I L V E R ’S | ROSWELL, NM

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investment overview

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1802 S MAIN STREET, ROSWELL, NM 88203

THE OFFERING

Property Long John Silver’s

Property Address 1802 S Main Street, Roswell, NM

Price $708,000

Capitalization Rate 6.50%

ANNUALIZED OPERATING INFORMATION

Income $46,000

Expenses $0

Net Operating Income $46,000

PROPERT Y DESCRIPTION

Year Built 1976

Building Size 2,490 SF

Lot Size 20,800 SF

Type of Ownership Fee Simple

LEASE SUMMARY

Rent Increases 1% Annually

Guarantor Corporate

Lease Type Absolute Triple Net (NNN)

Roof & Structure Responsibility Tenant

Lease Commencement Date Close of Escrow (COE)

Lease Expiration Date 15 Years from COE

Term Remaining on Lease 15 Years

Renewal Options Remaining 4 X 5-Year Options

Landlord Responsibilities None

ANNUALIZED OPERATING DATA

YEAR ANNUAL RENT MONTHLY RENTRENT/

SFCAP RATE

Year 1 $46,000 $3,833 $18.47 6.50%

Year 2 $46,460 $3,872 $18.66 6.56%

Year 3 $46,925 $3,910 $18.85 6.63%

Year 4 $47,394 $3,949 $19.03 6.69%

Year 5 $47,868 $3,989 $19.22 6.76%

Year 6 $48,346 $4,029 $19.42 6.83%

Year 7 $48,830 $4,069 $19.61 6.90%

Year 8 $49,318 $4,110 $19.81 6.97%

Year 9 $49,811 $4,151 $20.00 7.04%

Year 10 $50,310 $4,192 $20.20 7.11%

Year 11 $50,813 $4,234 $20.41 7.18%

Year 12 $51,321 $4,277 $20.61 7.25%

Year 13 $51,834 $4,319 $20.82 7.32%

Year 14 $52,352 $4,363 $21.03 7.39%

Year 15 $52,876 $4,406 $21.24 7.47%

NOI $46,000 $3,833 $18.47 6.50%


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Marcus & Millichap is pleased to offer for sale a single-tenant net-leased Long John Silver’s investment property located in Roswell, New Mexico.

At the Close of Escrow, Long John Silver’s Corporate will sign a new 15 year absolute triple-net (NNN) lease at this location. Long John Silver’s commitment to this site is a direct result of the store’s history of success in Roswell, where it has been operating as a Long John Silver’s since 1976.

The subject property is strategically located on South Main Street directly adjacent to the Roswell High School. The 2,490 square foot quick service restaurant (QSR) building is situated on a 20,800 square foot lot next door to a McDonald’s and surrounded by numerous retailers.

Roswell, New Mexico (pop. 48,411) is the fifth largest city in New Mexico and the county seat of Chaves County in the southeastern quarter of the state. While Roswell is a center for irrigated farming, dairying, ranching, manufacturing, distribution, petroleum production and home to the New Mexico Military Institute, it is best known nationally for its booming UFO and alien-themed tourism industry.

investment overview

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1802 S MAIN STREET, ROSWELL, NM 88203


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tenant overview

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Long John Silver’s, Inc., is a U.S.-based fast-food restaurant that specializes in seafood.

The name of the brand is borrowed from the novel Treasure Island by Robert Louis Ste-

venson, in which the pirate Long John Silver is one of the main characters.

Formerly a division of Yum! Brands, Inc., the company was divested to a group of fran-

chisees in 2011 and has seen a steady increase in sales, market share, and net worth.

The brand has been refreshing their market presence starting with new store openings

in Fall 2013 through Winter 2014/2015 and a complete makeover of all franchise stores

through 2016. Long John Silver’s franchises more than 1,200 nautically themed eateries,

reporting more than $810 million in estimated annual sales for Fiscal year-end 2012.

Long John Silver’s food offerings include platters, sandwiches, and various single items.

The platters feature seafood as the main item, with side dishes consisting of coleslaw,

hushpuppies, corn, green beans, and French fries (chips) Tenant Overview or batter fried

onion rings. Seafood items include fish, clams, and shrimp, with chicken fingers known

as “Chicken Planks.” More recently, the brand began offering baked cod as a lower-cal-

orie option.

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AERIAL mapDOWNTOWN DENVER

regional map


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AERIAL mapWALGREENS

CHAVES COUNTY CLERK

ROSWELL HIGH SCHOOL

PECOS ELEMENTARY SCHOOL

MCDONALD’S

S M

AIN

STR

EET


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demographics5 Mile radius

POPULATION 1-MILE 3-MILES 5-MILES

2021 Projection Total Population 11,164 34,351 52,5712016 Estimate Total Population 11,209 34,312 52,1212010 Census Total Population 11,082 34,018 51,8292000 Census Total Population 10,605 32,508 48,607Current Daytime Population 2016 Estimate 10,282 32,336 48,975

HOUSEHOLDS 1-MILE 3-MILES 5-MILES

2021 Projection Total Households 3,942 12,348 19,2182016 Estimate Total Households 3,960 12,313 18,985Average (Mean) Household Size 2.77 2.7 2.672010 Census Total Households 3,912 12,220 18,9182000 Census Total Households 3,919 12,094 18,218Occupied Units 2021 Projection 3,942 12,348 19,2182016 Estimate 4,303 13,773 21,141

HOUSEHOLDS BY INCOME 1-MILE 3-MILES 5-MILES

2016 Estimate $150,000 or More 1.68% 2.85% 3.90%$100,000 - $149,000 5.77% 6.80% 8.00%$75,000 - $99,999 9.54% 8.49% 10.82%$50,000 - $74,999 19.57% 17.44% 17.87%$35,000 - $49,999 16.29% 16.22% 16.50%Under $35,000 47.13% 48.21% 42.93%Average Household Income $48,001 $49,653 $55,971 Median Household Income $37,735 $36,727 $41,717 Per Capita Income $17,121 $18,206 $20,761


Total Average Household Retail Expenditure $56,021 $56,004 $59,131 Consumer Expenditure Top 10 Categories Housing $16,364 $16,303 $17,014 Transportation $10,121 $10,120 $10,485 Shelter $9,082 $9,031 $9,561 Food $6,121 $6,081 $6,348 Personal Insurance and Pensions $4,053 $3,947 $4,280 Utilities $3,757 $3,842 $4,249 Health Care $3,238 $3,188 $3,309 Entertainment $2,422 $2,424 $2,579 Cash Contributions $1,544 $1,447 $1,665 Apparel $1,503 $1,467 $1,526


Population By Age 2016 Estimate Total Population 11,209 34,312 52,121Under 20 30.75% 31.74% 30.89%20 to 34 Years 20.85% 21.68% 20.23%35 to 39 Years 5.41% 5.40% 5.42%40 to 49 Years 10.98% 10.76% 10.82%50 to 64 Years 17.58% 17.24% 17.76%Age 65+ 14.43% 13.17% 14.90%Median Age 33.76 32.48 34.12Population 25+ by Education Level 2016 Estimate Population Age 25+ 6,955 20,751 32,248Elementary (0-8) 10.97% 9.98% 8.55%Some High School (9-11) 10.69% 11.33% 9.76%High School Graduate (12) 29.33% 30.03% 27.72%Some College (13-15) 26.63% 24.81% 25.53%Associate Degree Only 8.23% 7.34% 7.40%Bachelors Degree Only 7.29% 9.73% 12.56%Graduate Degree 4.27% 4.33% 6.30%


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demographics5 Mile radius

Population

In 2016, the population in your selected geography is 11,209. The population has changed by 5.70% since 2000. It is estimated that the population in your area will be 11,164.00 five years from now, which represents a change of -0.40% from the current year. The current population is 48.97% male and 51.03% female. The median age of the population in your area is 33.76, compare this to the US average which is 37.68. The population density in your area is 3,567.94 people per square mile.

Households

There are currently 3,960 households in your selected geography. The number of households has changed by 1.05% since 2000. It is estimated that the number of households in your area will be 3,942 five years from now, which represents a change of -0.45% from the current year. The average household size in your area is 2.77 persons

Income

In 2016, the median household income for your selected geography is $37,735, compare this to the US average which is currently $54,505. The median household income for your area has changed by 45.25% since 2000. It is estimated that the median household income in your area will be $45,728 five years from now, which represents a change of 21.18% from the current year. The current year per capita income in your area is $17,121, compare this to the US average, which is $29,962. The current year average household income in your area is $48,001, compare this to the US average which is $78,425.

Race and Ethnicity

The current year racial makeup of your selected area is as follows: 60.00% White, 2.81% Black, 0.02% Native American and 0.62% Asian/Pacific Islander. Compare these to US averages which are: 70.77% White, 12.80% Black, 0.19% Native American and 5.36% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 68.90% of the current year population in your selected area. Compare this to the US average of 17.65%.

Housing

The median housing value in your area was $74,734 in 2016, compare this to the US average of $187,181. In 2000, there were 2,668 owner occupied housing units in your area and there were 1,251 renter occupied housing units in your area. The median rent at the time was $347.

Employment

In 2016, there are 4,785 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 46.62% of employees are employed in white-collar occupations in this geography, and 54.01% are employed in blue-collar occupations. In 2016, unemployment in this area is 7.39%. In 2000, the average time traveled to work was 16.00 minutes.

IncomeIn 2016, the median household income for your selected geography is$77,654, compare this to the US average which is currently $54,505.The median household income for your area has changed by 15.08%since 2000. It is estimated that the median household income in yourarea will be $85,742 five years from now, which represents a changeof 10.42% from the current year.

The current year per capita income in your area is $31,059, comparethis to the US average, which is $29,962. The current year averagehousehold income in your area is $91,380, compare this to the USaverage which is $78,425.

PopulationIn 2016, the population in your selected geography is 8,415. Thepopulation has changed by 7.86% since 2000. It is estimated that thepopulation in your area will be 8,475.00 five years from now, whichrepresents a change of 0.71% from the current year. The currentpopulation is 48.21% male and 51.79% female. The median age ofthe population in your area is 38.89, compare this to the US averagewhich is 37.68. The population density in your area is 2,678.71 peopleper square mile.

HouseholdsThere are currently 2,860 households in your selected geography. Thenumber of households has changed by 12.82% since 2000. It isestimated that the number of households in your area will be 2,902five years from now, which represents a change of 1.47% from thecurrent year. The average household size in your area is 2.93 persons.

EmploymentIn 2016, there are 4,581 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that71.61% of employees are employed in white-collar occupations inthis geography, and 28.03% are employed in blue-collar occupations.In 2016, unemployment in this area is 3.31%. In 2000, the averagetime traveled to work was 32.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:72.22% White, 12.18% Black, 0.02% Native American and 4.50%Asian/Pacific Islander. Compare these to US averages which are:70.77% White, 12.80% Black, 0.19% Native American and 5.36%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 23.24% of the current yearpopulation in your selected area. Compare this to the US average of17.65%.

PROPERTY NAME

MARKETING TEAM

4902 ROWLETT RD

HousingThe median housing value in your area was $131,169 in 2016,compare this to the US average of $187,181. In 2000, there were2,326 owner occupied housing units in your area and there were 209renter occupied housing units in your area. The median rent at thetime was $595.

Source: © 2016 Experian

DEMOGRAPHICS

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PROPERTY NAME

MARKETING TEAM

4902 ROWLETT RD



DEMOGRAPHICS

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PROPERTY NAME

MARKETING TEAM

4902 ROWLETT RD



DEMOGRAPHICS

11








PROPERTY NAME

MARKETING TEAM

4902 ROWLETT RD



DEMOGRAPHICS

11








PROPERTY NAME

MARKETING TEAM

4902 ROWLETT RD



DEMOGRAPHICS

11








PROPERTY NAME

MARKETING TEAM

4902 ROWLETT RD



DEMOGRAPHICS

11

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, spon-sored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

NON-ENDORSEMENT NOTICE

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT WITH THE LISTING BROKER OR LANDLORD ONLY. UNDER NO CIRCUMSTANCES, SHOULD ANY PROSPEC-TIVE PURCHASER OR RELATED ENTITY CONTACT THE TENANT OR ANY OF THE EMPLOYEES AT THESE STORES. RECIPIENTS OF THIS OFFERING MEMORANDUM ACKNOWLEDGE THAT SUCH CONTACT MAY DAMAGE THE TENANT’S OPERA-TIONS WHICH WOULD IMPAIR THE FINANCIAL RESULTS. LANDLORD RESERVES THE RIGHT TO SEEK LEGAL REDRESS FOR ANY DAMAGE THAT MAY OCCUR FROM SUCH INTERFERENCE WITH LANDLORD’S RELATIONSHIP WITH TENANT.

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confi rm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

CONFIDENTIALITY & DISCLAIMER

Investment Sales:

matthew reevesBroker of Record

NEW MEXICO5600 EUBANK BLVD, NE, SUITE 200

ALBUQUERQUE, NM 87111Tel: (505) 445-6333

SINGLE-TENANT NET LEASED PROPERTY LOCATED AT1 8 02 S M A I N S T RE E T , ROSW E L L , N M

LONG JOHN SILVER’S

OFFERING MEMOR ANDUM LONG JOHN...

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