OFFERING MEMORANDUM - LoopNet · BJ’S RESTAURANT BREWHOUSE WACO, TX AREA OVERVIEW Waco, TX The...

OFFERING MEMORANDUM

Capital Markets | Net Lease Properties

CBRE, Inc. | Licensed Real Estate Broker

BJ’S RESTAURANT & BREWHOUSE5929 W. WACO DRIVE, WACO, TX

Actual Property

MARK DRAZEKSenior Vice PresidentCBRE | Capital MarketsNet Lease Properties

For further information:+1 407 404 [email protected]


EXCLUSIVELY MARKETED BY

RAY ROMANOFirst Vice PresidentCBRE | Capital MarketsNet Lease Properties

LOCAL LICENSEEBRAD BENJAMINAssociateCBRE | Capital MarketsNet Lease Properties

1INVESTMENT SUMMARY

2AREA OVERVIEW

6PROPERTY DESCRIPTION

Investment Highlights City OverviewLocal & Regional Maps

Property DescriptionAerial Photographs

Site Plan

Tenant Description

13TENANT SUMMARY

D

BJ’S RESTAURANT & BREWHOUSE | WACO, TX

1


CBRE is pleased to exclusively offer this absolute NNN BJ’s Restaurant & Brew House corporate ground lease located in front of the Richland Mall at the intersection of U.S. Route 84 and Highway 6 in Waco, Texas. BJ’s is in their fourth year of a 20 year ground lease that benefits from fixed rental rate increases every five years including the option periods. This is a prominent location that benefits from the heavy traffic volume and a very high daytime population. The City of Waco is located in the heart of the Texas manufacturing and technology corridor on Interstate Highway 35, just 90 miles south of Dallas and 100 miles north of Austin.

investment highlights• Long term NNN ground lease

• Corporate Guaranty – NASDAQ: BJRI

• Fixed rental increases throughout entire lease term including options

• Consistently strong performing store with reported annual sales

• Prominent corner location offering high visibility to over 87,000 vehicles per day

• No landlord management obligations

• Prime mall/retail location – Richland Mall is a 708,000 sq. ft. regional mall anchored by Dillard’s, Bealls, H&M, Forever 21 and JC Penney

• Near Baylor University

• Abundant parking, with a ratio of 15.76 per 1,000 sq. ft.

• No debt to assume

• Texas has NO STATE INCOME TAX

INVESTMENT SUMMARY

PRICE: $4,452,900

NOI: $233,778

CAP RATE: 5.25%

TENANT TRADE NAME: BJ’s Restaurant & Brewhouse

RENTAL INCREASES: Every 5 years during the initial term and option periods by a percentage equal to 3 times the Houston CPI, but not to exceed 10%

REMAINING LEASE TERM: 15 years (expires May 31, 2032)

INITIAL LEASE TERM: 20 years

OPTIONS: Two 5-year options

LANDLORD OBLIGATIONS: NNN*

EXISTING FINANCING: No debt to assume

BUILDING SIZE: 8,500± SF

LAND SIZE: 2.2 acres

PARKING SPACES: 134 spaces (15.76 spaces per 1,000 SF)

YEAR BUILT: 2012

* Landlord required to carry commercial general liability insurance coverage for the tenant’s parking area. The estimated cost has been accounted for within the above NOI.

2


AREA OVERVIEW

Waco, TXThe Waco Region includes McLennan and six contiguous counties. Waco is the largest of 20 cities in the one-county McLennan County Metropolitan Statistical Area. The Waco Region Population (2010) was 715,080, and the overall Waco MSA is 234,906. Growth (2000-2010) for the Waco MSA +16 percent.

Greater Waco is also one of seven metropolitan areas in the Texas Triangle mega-region. The others are Dallas-Fort Worth-Arlington; Killeen-Temple-Fort Hood; Austin-Round Rock-San Marcos; San Antonio-New Braunfels; Houston-Sugar Land-Baytown; and College Station-Bryan.

Education

Greater Waco is home to one university and two colleges with a total enrollment of 31,243. Additionally, we are at the center of the state’s highly educated future workforce with 344,729 students enrolled in four-year colleges and 219,178 students enrolled in two-year colleges within a 200-mile radius.

Baylor University, McLennan Community College and Texas State Technical College (plus cities, county and local chambers) are partners in the Baylor Research and Innovation Collaboration (BRIC) at the Central Texas Technology and Research Park just north of downtown on U.S. 77. The BRIC promises to be a game-changer for Greater Waco in that it will make the region competitive for globally impactful, knowledge-based products and firms.

McLennan County has 18 school districts and four charter schools serving a total student population of 41,438. The area also has more than a dozen private and parochial schools. Private elementary and secondary education in McLennan

DEMOGRAPHICS: 1-Mile 3-Mile 5-Mile

2016 Population 6,734 55,672 131,201

2021 Population 7,031 57,636 135,923

Percent Pop Change: 2010 to 2016 1.22% 0.88% 0.80%

Percent Pop Change: 2016 to 2021 0.87% 0.70% 0.71%

Percent HH Change: 2010 to 2016 1.09% 0.76% 0.72%

2016 Average Household Income $42,015 $60,232 $56,655

Average Household Size 2.16 2.46 2.54

Daytime Employment (Total Employees)

19,164 63,148 94,685

County includes schools with a classical, parochial and/or college preparatory curriculum.

Two non-profit acute-care hospitals, Providence Healthcare Network and Baylor Scott & White Medical Center – Hillcrest, offer state-of-the-art, full-service facilities for inpatient and outpatient care. Greater Waco’s health care sector also includes Scott & White clinics supported by Scott & White Memorial Hospital in Temple.

The Family Health Center provides basic care for reduced fees, and the Central Texas Veterans Health System operates a VA Hospital in Waco.

Waco’s popular outdoor music venues include Indian Spring Park with its grassy-sloped amphitheater and the Bosque River Stage, a 530-seat amphitheater on the McLennan Community College campus.

The 8,000-seat Extraco Events Center, home of the Heart O’ Texas Fair and Rodeo, hosts special events and concerts during the nine-day event.

Live music also is played in nightclubs and bars throughout the city. The Waco Symphony Orchestra brings world-class performers to Waco Hall. Professional Rodeo Cowboys of America competition and throughout the year.

The Waco Civic Theatre produces six Main Stage Productions annually, ranging from works by Shakespeare to Neil Simon.

Source: Waco Chamber

distance to

160Houston

miles

95Dallas

miles

87Austin

miles

90Fort Worth

miles

159San Antonio

miles

249Corpus Christi

miles

3


AREA OVERVIEW

Waco economy continues growth, hits new recordBy Mike Copeland, Waco Tribune-Herald, September 29, 2016New homes are rising, existing homes are selling and improving job figures mean more people can afford them. These factors gave the Greater Waco Economic Index a jolt in August, pushing it into record territory, Amarillo-based economist Karr Ingham reported this week.

One of the few negatives appeared in general spending in Greater Waco, which slipped 2.7 percent compared to August 2015. Through August, spending is up a modest 1.1 percent from the first eight months of last year, Ingham said. He prepares a monthly snapshot of the local economy for the First National Bank of Central Texas and the Tribune-Herald.

Using data dating back to the year 2000, Ingham determined the GWEI rose to 123.2 last month, up from 122.7 in July and 119.9 in August a year ago.

The Waco Metropolitan Statistical Area, which includes McLennan and Falls counties, continues to see job growth, with the Texas Workforce Commission and Bureau of Labor Statistics reporting 2,300 positions were created in the 12 months between August of last year and last month.

“But the pace of growth slowed a bit according to the preliminary August data, which suggests a 2 percent rate of year-over-year employment growth,” Ingham said. “That compares to a rate of growth of 2.4 percent as recently as June of this year and 2.6 percent in March.”

Home construction is shifting into high gear, and the city of Waco issued 47 permits for the second straight month in August for construction of new single-family structures, Ingham said. That’s nearly three times more than the 16 permits issued in August of last year.

“The strong totals in the last two months were sufficient to push the year-to-date total into positive territory for the first time in 2016,” Ingham said.

Greater Waco is enjoying strong construction activity in most sectors, said Ron Nelson, a senior vice president who specializes in real estate lending at First National Bank of Central Texas.

“Certainly everybody is busy, and we’ve had a good string of weather, which means

weather-related holdups have not impacted the industry,” Nelson said. “Just in talking with various homebuilders we deal with, they were very encouraged about the market now and going forward.”

Nelson said a “good bit of activity has begun” on Ritchie Road in Waco, near Hewitt and Woodway, where Fort Worth-based D.R. Horton plans a 1,500-home subdivision called Park Meadows. China Spring “is really showing some strength,” and a source told him several lots sold recently in an existing subdivision there, he said.

Scott Bland, president of the Heart of Texas Builders Association, said he expected a run on building permits in July and August, and that has happened.

“Guys were trying to get in ahead of new codes that went into effect Sept. 1 because they don’t want to get hit with a lot of unexpected costs,” Bland said. “Nobody is trying to dodge the codes, but when you’ve been working on pricing a project since June, you don’t care to see new numbers.”

Those new guidelines are aimed at improving energy efficiency and could add $1,500 to $6,000 to the cost of a new home, Bland said.

He said D.R. Horton also is building upscale homes in the Twin Rivers subdivision, adjacent to the Twin Rivers Golf Club off U.S. Highway 84 between Waco and McGregor. Bland said D.R. Horton didn’t become the largest builder of homes in the United States “by being dumb,” and its interest in the Greater Waco market indicates it has completed studies showing McLennan County remains prime for residential construction.

‘Just busy’

Randy Childers, Waco’s chief building officer, said, “Everybody’s just busy,” and said he’s not buying the idea builders tried to beat the Sept. 1 code deadline.

Existing home sales continue to have local real estate agents marveling at how quickly they find buyers for properly priced single-family units.

The number of deals totaled 286 last month, which is 16 percent more than the 246 that transpired a year earlier.

“That is a record for the month, and the 1,860 sales through August is a record for the first eight months of the year,” Ingham said. “The price of those sales remains solidly on the rise as well, with the August monthly average home sale price up by over 5 percent compared to August of a year ago.”

4


AREA OVERVIEW

New and used car sales in August made a comeback from a dip in July, totaling $55.5 million, up from $51.6 million in August of 2015, according to the report.

Permits valued at $39 million were issued for general construction in August, the second-highest figure in the history of the index. Whitney Richter, with the Greater Waco Chamber of Commerce, said work includes building renovation in Central Texas Marketplace for a new Forever 21 store.

About a dozen local business people attended a session at First National Bank of Central on Thursday to offer their perspective on the local economy.

Clint Weaver, a certified financial planner and branch manager for Stifel Financial Corp., said he is seeing more clients “taking money from me and putting it into commercial real estate,” as they notice the development boom locally and elsewhere around the state. “That’s not good for me, but it’s good for them.”

Amanda Cunningham, a real estate agent with Coldwell Banker Jim Stewart Realtors, presented the McLennan County Housing Report. It showed the following: The median price for a home sold in August was up 12 percent to $161,395. The number of active listings stood at 568 in August, a drop of 19.8 percent. A home stayed on the market an average of 45 days, which was 22 days less than in August 2015. Sales totaled 276 homes in August, a 14.1 percent increase. Greater Waco has 2.7 months of home inventory, compared to 3.4 months in August 2015. Home inventory represents the number of months it would take to sell all homes on the market at the sales rate for a given month.

Cunningham said reasonably priced homes in prime areas can attract would-be buyers the day they hit the market. She said the area is poised to see a new trend of Woodway residents, perhaps those with no or grown children, moving into lofts in downtown Waco or to properties fronting Lake Waco.

Claire Kultgen McDonald, a vice president at Bird-Kultgen Ford, said large pickups priced at $40,000 and above are moving well, and she thinks lower gasoline prices are influencing buying decisions. She said historically the presidential election season casts a pall on vehicle buying, “and this year is no different.”

Randy Crook, owner of Salty Dog Sports Bar & Grill, the Crying Shame and The Dog House, said his dining and drinking establishments are holding their own financially despite the influx of chains and “big boxes.” Crook said revenue is up about 17 percent for the year, “and we set records in July and August.”

Wayne Bonner, with WB Computer Services, said he is seeing demand to install infrastructure for Wi-Fi service and to help businesses protect themselves against ransomware, which is malicious software designed to block access to company files until a ransom is paid.

Greater Waco Economic Index – AugustRetail 2015 $318,646,314

spending 2016 $309,918,471

Automobile 2015 $51,689,546

spending 2016 $55,464,919

Hotel-motel 2015 $3,765,309

tax receipts 2016 $3,882,280

Building permits 2015 $30,514,355

issued valuation 2016 $39,043,784

Single-family 2015 16

residence permits 2016 47

Existing 2015 246

home sales 2016 286

Average home 2015 $174,045

sale price 2016 $183,103

EmploymentPayroll 2015 116,000

employment 2016 118,300

Unemployment 2015 4.2

rate 2016 4.4

Cumulative index: 123.2

Amarillo-based economist Karr Ingham prepares the monthly report for the First National Bank of Central Texas and the Tribune-Harold. Index results are based at 100, a figure established in the year 2000.

Excerpt from: Waco Tribune-Harold, article by Mike Copeland, Sept. 29, 2016

5


regional map

local map

SUBJECT

SUBJECT

AREA OVERVIEW

6


Property DescriptionLOCATION

5929 W. Waco Drive Waco, TX 76710

BUILDING AREA

The subject consists of one (1) retail building totaling approximately 8,500 square feet of net rentable area.

SITE

This property is located on an outparcel to the Richland Mall.

PARKING

The Property provides 134 parking stalls which equates to 15.76:1,000 SF parking ratio.

LAND AREA

The Property consists of a Pad lease for 2.2 acres.

BUILT

The subject building was built in 2012.

2015 TRAFFIC COUNTS

SR 84 (South of Site) 55,229 AADT

Hwy 6 32,035 AADT

Source: Texas Department of Transportation

PROPERTY DESCRIPTION

7


PROPERTY PHOTOGRAPHS

8


N

Hwy 6 (32,035 AADT)

SR 84 (55,229 AADT)

Waco D

r

Franklin Dr

Woodway Dr

Woodway Dr(2

7,196 A

ADT)

Hwy 6 (31,326 AADT)

9


Waco Dr

N

Hwy 6 (32,035 AADT) (55,229 AADT)

Hwy 6 (31,326 AADT)

SR 84 (27,196 AADT)

Franklin Dr

10

BJ’S RESTAURANT & BREWHOUSE | WACO, TXN

SR 84

Waco Dr

Hwy 6

Hwy 6 (32,035 AADT)

Hwy 6 (31,326 AADT)

(55,229 AADT)

11


N

Hwy 6 (32,035 AADT)

SR 84

Waco Dr

Woodway Dr

(55,229 AADT)

12


SITE PLAN

13


(NASDAQ: BJRI)

BJ’s Restaurants, Inc. owns and operates 189 restaurants of February 2017, located the 24 states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana, Maryland, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia and Washington. Each of the company’s restaurants is operated either as a BJ’s Restaurant & Brewery ® which includes a brewery within the restaurant, a BJ’s Restaurant & Brewhouse ® which receives the beer it sells from one of our breweries or independent third party brewers of our proprietary beer recipes, or a BJ’s Pizza & Grill ® which is a smaller format, full service restaurant with a more limited menu than the other restaurants. The menu features BJ’s ® award-winning, signature deep-dish pizza, handcrafted beers as well as a wide selection of appetizers, entrées, pastas, sandwiches, specialty salads and desserts including a unique Pizookie ® dessert. Several of the BJ’s Restaurant & Brewery restaurants feature in-house brewing facilities where BJ’s proprietary handcrafted beers are produced for many of the BJ’s restaurants.

BJ’S RESTAURANTS, INC. 2015 ANNUAL REPORT:

• 9% INCREASE IN REVENUES

• 65% INCREASE IN NET INCOME

• 78% INCREASE IN DILUTED NET INCOME PER SHARE

• 1.7% INCREASE IN COMP SALES

• 16 NEW STORES OPENED IN 2015

• PLANS TO OPEN AN ADDITIONAL 18-19 STORES IN 2016

• TARGETED NEW RESTAURANT ANNUAL SALES OF $4.5 MILLION AT MATURITY

TENANT DESCRIPTION

14


AFFILIATED BUSINESS DISCLOSURE

CBRE operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

CONFIDENTIALITY AGREEMENT

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the property or the owner of all Property (the”Owner”), to be all-inclusive or to contain all or part of the information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors being the control of the Owner and CBRE,Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc., nor any of their respectful directors, officers, Affiliates or representatives make an representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

DISCLAIMER

©2017 CBRE, Inc. The information containing in this document has been obtained for sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property, The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the Property of their respective owners.

CONFIDENTIAL MEMORANDUM & DISCLAIMER

© 2017 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.CBRE, and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

MARK DRAZEKSenior Vice President CBRE | Capital MarketsNet Lease Properties

For further information:+1 407 404 [email protected]


EXCLUSIVELY MARKETED BY

RAY ROMANOFirst Vice President CBRE | Capital MarketsNet Lease Properties

LOCAL LICENSEEBRAD BENJAMINAssociateCBRE | Capital MarketsNet Lease Properties

OFFERING MEMORANDUM - LoopNet · BJ’S RESTAURANT BREWHOUSE WACO, TX AREA OVERVIEW Waco, TX The...

Documents

Transcript of OFFERING MEMORANDUM - LoopNet · BJ’S RESTAURANT BREWHOUSE WACO, TX AREA OVERVIEW Waco, TX The...