Jack in the Box –CORPORATE ABSOLUTE

REPRESENTATIVE PHOTO
Investment OFFERING | $1,957,000 – 5.25% CAp
Jack in the Box – CORPORATE ABSOLUTE NNN LEASE
1001 West Centerville Road, Garland, TX – Dallas Fort Worth metro
214.915.8890
BOB MOORHEAD
bob@exp1031.com
JOE CAPUTO
joe@exp1031.com
RUSSELL SMITH
russell@exp1031.com
property. 3,154 SF building on 0.80+ acres.
tenant. Jack in the Box Eastern Divison L.P., a Texas limited partnership. Corporate guaranty by Jack in the Box, Inc., a Delaware corporation.
lease structure. 7.5 years remaining on 18 year term, NNN lease with CPI rent increases (not to exceed 8%) every 5-years in initial term & options.
location. Jack in the Box is strategically located at the corner of Centerville RD (37,438 Cars / Day) and Marketplace Dr. Interstate 635 (227,645 Cars / Day),
less than 1-mile east of the site, serves as the main loop around Dallas and Northwest Highway is a primary arterial road. These traffic volumes provide the site
with enviable visibility. The subject property is down the street from a Walmart Supercenter. Other notable tenants in the immediate trade area, near Jack in the
Box, include Denny’s, Grandy’s, Race Trac, Office Depot, Big Lots, Ross, Tom Thumb, LA Fitness, Chili’s, Capital One, AT&T, Wells Fargo, Carmax, a
Volkswagen dealership, Pep Boys, Arby’s, Family Dollar, McDonald’s, AutoZone, Ross, Payless Shoe Source, Applebee’s, Del Taco, Furr’s Cafeteria, and many
others. D/FW Metroplex has a population of 6,526,548 making it the 4th largest metro area in the country.
Table of contents | Disclaimer
JACK IN THE BOX
1001 West Centerville Road, Garland, TX
Disclaimer
PAGE 1:
COVER
PAGE 2:
TABLE OF CONTENTS | DISCLAIMER
PAGE 3:
INVESTMENT | TENANT | LEASE OVERVIEW
PAGE 4-5:
AERIAL PHOTOS
PAGE 6:
LOCATION OVERVIEW
PAGE 7-8:
LOCATION MAPS
PAGE 9:
DEMOGRAPHICS
SUBJECT PROPERTY
EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the
property located at 1001 West Centerville Road, Garland, TX by the owner of the Property
(“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller
and Agent make no representations or warranties as to the accuracy of the information
contained in this Offering Memorandum. The enclosed materials include highly confidential
information and are being furnished solely for the purpose of review by prospective
purchasers of the interest described herein. The enclosed materials are being provided
solely to facilitate the prospective investor’s own due diligence for which it shall be fully and
solely responsible. The material contained herein is based on information and sources
deemed to be reliable, but no representation or warranty, express or implied, is being made
by Agent or Seller or any of their respective representatives, affiliates, officers, employees,
shareholders, partners and directors, as to the accuracy or completeness of the information
contained herein. Summaries contained herein of any legal or other documents are not
intended to be comprehensive statements of the terms of such documents, but rather only
outlines of some of the principal provisions contained therein. Neither the Agent nor the
Seller shall have any liability whatsoever for the accuracy or completeness of the
information contained herein or any other written or oral communication or information
transmitted or made available or any action taken or decision made by the recipient with
respect to the Property. Interested parties are to make their own investigations, projections
and conclusions without reliance upon the material contained herein. Seller reserves the
right, at its sole and absolute discretion, to withdraw the Property from being marketed for
sale at any time and for any reason. Seller and Agent each expressly reserves the right, at
their sole and absolute discretion, to reject any and all expressions of interest or offers
regarding the Property and/or to terminate discussions with any entity at any time, with or
without notice. This offering is made subject to omissions, correction of errors, change of
price or other terms, prior sale or withdrawal from the market without notice. Agent is not
authorized to make any representations or agreements on behalf of Seller. Seller shall
have no legal commitment or obligation to any interested party reviewing the enclosed
materials, performing additional investigation and/or making an offer to purchase the
Property unless and until a binding written agreement for the purchase of the Property has
been fully executed, delivered, and approved by Seller and any conditions to Seller’s
obligations hereunder have been satisfied or waived. By taking possession of and
reviewing the information contained herein, the recipient agrees that (a) the enclosed
materials and their contents are of a highly confidential nature and will be held and treated
in the strictest confidence and shall be returned to Agent or Seller promptly upon request;
and (b) the recipient shall not contact employees or tenants of the Property directly or
indirectly regarding any aspect of the enclosed materials or the Property without the prior
written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be
copied or otherwise reproduced without the prior written authorization of Seller and Agent.
Investment overview
JACK IN THE BOX
1001 West Centerville Road, Garland, TX
Lease overview
Initial Lease Term:
18-Years, Plus 4, 5-Year Options to Renew
Rent Commencement:
June 2004
Lease Expiration:
June 2022
Lease Type:
Absolute NNN
PRICE:
$1,957,000
CAP RATE:
5.25%
NET OPERATING INCOME:
$102,737
PROJECTED BUILDING AREA:
3,154+ Square Feet
Rent Increases:
CPI Rate Not to Exceed 8% Every 5 Years
LAND AREA:
0.80+ Acres
Year 1-5 Annual Rent:
$88,081
YEAR BUILT:
1981
Year 6-10 Annual Rent:
$95,127
LANDLORD RESPONSIBILITY:
None
Year 11-15 Annual Rent (Current):
$102,737
OWNERSHIP:
Fee Simple Interest
Year 16-18 Annual Rent:
$110,955
OCCUPANCY:
100%
Year 19-20 Annual Rent (Option 1):
$110,955
Year 21-23 Annual Rent (Option 1):
$119,832
Year 24-25 Annual Rent (Option 2):
$119,832
Year 26-28 Annual Rent (Option 2):
$129,419
Year 29-30 Annual Rent (Option 3):
$129,419
Year 31-33 Annual Rent (Option 3):
$139,772
Year 34-35 Annual Rent (Option 4):
$139,772
Year 36-38 Annual Rent (Option 4):
$150,954
Right of First Refusal:
Yes
Tenant overview
TENANT: Jack in the Box Eastern Divison L.P., a Texas limited partnership
GUARANTOR: Jack in the Box Inc., a Delaware corporation
Jack in the Box | www.jackinthebox.com
SUBJECT
Jack in the Box Inc. (NASDAQ: JACK), founded in 1951, is a restaurant company that operates and franchises Jack
in the PROPERTY
Box® restaurants and,
PRIOR
TODiego,
PANDAJack
EXPRESS
through a wholly owned subsidiary, Qdoba Mexican Grill® in a combined 42 states plus the District of Columbia. Based in San
in theEXPANSION
Box
Inc. has more than 22,000 employees. Jack in the Box is among the nation’s leading fast-food hamburger chains, with more than 2,200 quick-serve
restaurants in 20 states. As the first major hamburger chain to develop and expand the concept of drive-thru dining, Jack in the Box has always
emphasized on-the-go convenience, with approximately 85 percent of the halfbillion guests served annually buying food at the drive-thru or for take-out.
In addition to drive-thru windows, most restaurants have indoor dining areas and are open 18-24 hours a day.
For the fiscal year ending in 2013, the company had $1.489 billion in revenue, $82,608 million in net income, and $138,205 million in operation cash flow.
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Aerial photo
JACK IN THE BOX
1001 West Centerville Road, Garland, TX
Samuel Garland
Park
Northwest Highway (36,112 Cars / Day)
Dallas Intermodal
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Aerial photo
JACK IN THE BOX
1001 West Centerville Road, Garland, TX
Marketplace Dr
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Location overview
JACK IN THE BOX
1001 West Centerville Road, Garland, TX
IMMEDIATE TRADE AREA
DALLAS – FT. WORTH - ARLINGTON MSA
Jack in the Box is strategically located at the corner of Centerville RD (37,438
Cars / Day) and Marketplace Dr. Interstate 635 (227,645 Cars / Day), less than
1-mile east of the site, serves as the main loop around Dallas and Northwest
Highway is a primary arterial road.
The Dallas–Fort Worth–Arlington Metropolitan Statistical Area (MSA)
encompasses 12 counties within the U.S. state of Texas. It is the economic and
cultural hub of the region commonly called North Texas or the Metroplex and is
the largest land-locked metropolitan area in the United States.
These traffic volumes provide the site with enviable visibility which has
attracted numerous national credit tenants to the trade area. The subject
property is down the street from a Walmart Supercenter. Other notable tenants
in the immediate trade area, near Jack in the Box, include Denny’s, Grandy’s,
Race Trac, Office Depot, Big Lots, Ross, Tom Thumb, LA Fitness, Chili’s,
Capital One, AT&T, Wells Fargo, Carmax, a Volkswagen dealership, Pep Boys,
Arby’s, Family Dollar, McDonald’s, AutoZone, Ross, Payless Shoe Source,
Applebee’s, Del Taco, Furr’s Cafeteria, and many others. The site is across
Interstate 635 from an intermodal transportation facility.
As a major
employment center this facility amplifies the customer base that the adjacent
highway provide.
The official 2011 U.S. Census estimate has the Dallas-Fort Worth Metroplex at
6,526,548. During the 12-month period from July 2008 to July 2009, the DallasFort Worth-Arlington metropolitan area gained 146,530 new residents, more
than any other metropolitan area in the United States. The area's population
has grown by about 1 million since the last census was administered in 2000.
The Dallas–Fort Worth–Arlington MSA is, by population, the largest
metropolitan area in Texas, the largest in the South, the 4th largest in the
United States, and the 10th largest in the Americas. The metropolitan area has
the sixth largest gross metropolitan product (GMP) in the United States, and
approximately 10th largest by GMP in the world. Dallas is the largest city in the
Metroplex and the 3rd largest city in the state of Texas and the ninth-largest in
the United States with a population of 1,197,816. Dallas developed a strong
industrial and financial sector, and a major inland port, due largely to the
presence of Dallas/Fort Worth International Airport, one of the largest and
busiest airports in the world.
GARLAND, TX
Garland, TX is a suburb of Dallas and has a population of 226,876. In 2008,
Garland was ranked #67 on CNN and Money magazine's list of the "Top 100
Places to Live.”
Resistol Hats, a notable manufacturer of premium hats, many of which have
been worn by or given to notable figures around the world has long been an
important part of Garland's manufacturing base. The company was founded by
E.R. Byer and Harry Rolnick, who established Byer-Rolnick in Dallas in 1927.
Other major employers in Garland include Raytheon Intelligence and
Information Systems (3,500 Employees), Sears (1,300 Employees), Atlas
Copco (700 Employees), General Dynamics (550 Employees), Kraft Foods
(500 Employees), and L-3 Communications (450 Employees).
In the early 1980s Garland had one of the lowest poverty rates of cities in the
country. In 1990 it had a population of 180,650 and 2,227 businesses, making
it Dallas County's second largest city and the tenth largest in the state. Garland
had a variety of industries, including electronics, steel fabrication, oilfield
equipment, aluminum die casting, hat manufacture, dairy products, and food
processors.
The Metroplex has one of the highest concentrations of corporate headquarters
in the United States. 20 Fortune 500 companies are headquartered in the area.
The city of Dallas alone has the 3rd largest concentration of Fortune 500
headquarters in the country. The Metroplex also contains the largest
Information Technology industry base in the state (often referred to as Silicon
Prairie or the Telecom Corridor), due to the large number of corporate IT
projects and the presence of numerous electronics, computing and
telecommunication firms. The Telecom Corridor located just north of Dallas in
Richardson is home to more than 5,700 companies including Texas
Instruments which employs over 10,000 people at its headquarters. HP
Enterprises Services, Dell Services, i2, AT&T, Ericsson, CA and Verizon also
have headquarters or major operations in and around Dallas. The Texas
farming and ranching industry, based in Fort Worth adds to the economic
diversification of the area. Several major defense manufacturers, including
Lockheed Martin, Bell Helicopter Textron, and Raytheon, maintain significant
operations in the Metroplex. ExxonMobil, the #1 corporation on the Fortune 500
listings, is headquartered in Irving, Texas.
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Location map
JACK IN THE BOX
1001 West Centerville Road, Garland, TX
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Location map
JACK IN THE BOX
1001 West Centerville Road, Garland, TX
8
Demographics
JACK IN THE BOX
1001 West Centerville Road, Garland, TX
Demographic snapshot
Radius
1 Mile
3 Mile
5 Mile
2019 Projection
24,613
159,911
363,850
2014 Estimate
22,624
148,472
337,364
2010 Census
20,794
141,413
319,799
Growth 2014-2019
8.79%
7.70%
7.85%
Growth 2010-2014
8.80%
4.99%
5.49%
2019 Projection
8,827
55,141
128,940
2014 Estimate
8,092
51,165
119,489
2010 Census
7,376
48,690
113,226
Growth 2014 - 2019
9.08%
7.77%
7.91%
Growth 2010 - 2014
1.71%
1.25%
1.59%
Owner Occupied
3,614
28,491
67,127
Population:
Households:
4,478
22,674
52,363
2014 Avg Household Income
Renter Occupied
$51,059
$55,958
$62,039
2014 Med Household Income
$37,427
$43,192
$46,446
<$25,000
2,298
13,201
29,186
$25,000 - $50,000
2,824
15,900
34,120
$50,000 - $75,000
1,313
9,973
22,732
$75,000 - $100,000
916
6,021
14,482
$100,000 - $125,000
311
2,595
7,507
$125,000 - $150,000
205
1,493
4,442
$150,000 - $200,000
139
1,324
4,302
86
659
2,717
DOWNTOWN DALLAS, TX
2014 Households by Household Inc:
$200,000+
VICTORY PLAZA / AMERICAN AIRLINES CENTER, DALLAS, TX
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