Max and Erma`s Package (Read

For Sale Max & Erma’s
710 Gardner Road
Springboro, Ohio
Offered at a
Purchase Price
of
$3,000,000
14 Years Left on
A 20 Year NNN Lease

8% CAP Rate
Based on Income for
2012

For more Information Please contact:
Todd Schiff
614-806-8633 Cell
614-222-8073 DD
tschiff@rweiler.com
10 North High Street,Suite 401
Columbus, Ohio 43215
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Information contained herein has been obtained from the property owner or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it
Max & Erma’s
Springboro, Ohio
Section One ………………….The Offering
Section Two ………………… About the Tenant
Section Three ……………… Site and Property Information
Section Four …………………Maps
Section Five ………………….Sold Market Comparables
Section Six ……………………Average CAP Rate Chart
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Information contained herein has been obtained from the property owner or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it
Max & Erma’s
Now Financially Stronger than Ever!
The Robert Weiler Company is pleased to offer for Sale, a property
for which they have an ownership interest, located in one of the
fastest growing and hottest retail areas in all of Warren County Ohio.
The Restaurant is located at the corner of a lighted intersection on
Gardner and Lytle Five Points roads, right across the street from the
new Key Bank on one corner, a new CVS on the other corner, and just
down the street from the brand new Kohls on Gardner Rd.
Investment Summary
$3,000,000 Sales Price
8% CAP RATE (Based on
2012 Income)
Absolute Net Net Net Lease
The address of the Max and Erma’s is 710 Gardner Rd. Springboro,
Ohio in Warren County. This street is home to a plethora of retailers
including Kohl’s, Ace Hardware, Moe’s, Huntington Bank, Anytime
Fitness, and too many others to mention.
The Village Park Overall site plan is one of the most exciting new
development areas to hit Warren County in years. Although the
Max and Erma’s was one of the first restaurants in the area, it’s same
store growth over last year landed them
5th in the chain of almost 60 stores.
14 + Years Left on a 20
Year Term
About The Lease:
Built in 2006
The Max and Erma’s is encumbered by a 20 year absolute
net-lease that includes rental increases in years six (2012), eleven
(2017), and sixteen (2022). The current lease is dated
November 8, 2006 which means over 14 years still remain on the
base term.
Income increase in 2013 to
$254,375 with
increases every 5 Years
Outstanding Location
5,906 Sq. Ft. Building
1.78 Acres
An investor should truly expect a passive investment for the next
14+ years with options for another two (2) successive periods of ten
(10) years each. All options have rental increases every five (5) years.
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The Offering
The Offering:
Max & Erma’s: Financially
Stronger then Ever Story
Max & Erma’s- financially stronger than ever:
“We are thrilled and excited with the acquisition of this well-known and
quality brand,” said Hazem Ouf, president and CEO of Fidelity
Newport’s unit Blue Ribbon Holdings, which also owns 267 Village Inn
and Bakers Square restaurants in 25 states, including 177 corporate
locations and 90 franchised units. Village Inn booked sales of $316.80
million from 221 restaurants, and Bakers Square booked sales of $78.1
million from 45 locations for the fiscal year ended in March of 2011.
“We see Max & Erma’s as a wonderful complement to our current
portfolio of restaurants” said, Hazem Ouf in a statement made in March
of 2010. The buyer’s extensive management experience in the
restaurant industry, along with their strong financial backing, will
significantly strengthen the Max & Erma’s brand “, said Mark A.
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About the Tenant
Max & Erma’s is now Owned by Newport Fidelity Holdings, LLC and its
operating company, American Blue Ribbon Holdings LLC. The
company bought the chain and all of it’s assets for close to $30 million
in August of 2010.
About the Tentant
Press Release Article from
Restaurant News
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About the Tentant
Continued Press Release from
Restaurant News
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Information contained herein has been obtained from the property owner or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it
Site and Property Information
710 Gardner Road
Springboro, Ohio
Warren County
Sales Price: $3,000,000
CAP Rate: 8% ( Based on Income for 2012)
Type of Ownership: Private
Tenant: Max & Erma’s Restaurant, Inc/American Blue Holdings, LLC
Lease Commencement Date: 11/08/2006
Lease Expiration Date: 09/30/2026
Options: 2 - (Ten) Year Options
Lease Type: Absolute Net Lease
Headquarters: Denver, Colorado
Locations: 78 (52 Units Corporate Owned & 26Franchise Owned)
Parcel Number: 04-15-400-037-0
Size: 5,906
Year Built: 2006
Lot Size: 1.78 Acres
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Site and Property Information
Location
Site and Property Information
Max and Erma's Springboro
20 Year Base
Period Lease
Purchase Price: $3,000,000
November 8, 2006
November 7, 2011
Cap Rate
$231,250.00
7.70%
$254,375.00
8.40%
current
8%
2012
November 8, 2011
November 7, 2016
(*in 2012 rent is
$242,812.44)
November 8, 2016
November 7, 2021
$279,812.50
9.30%
$307,793.75
10.20%
November 8, 2021
November 7, 2026
Two (10) year
options:
Option 1 (10) year
November 8, 2026
November 7, 2031
$338,573.12
11.20%
$372,430.43
12.40%
$409,673.47
13.60%
$450,640.81
15.00%
November 8, 2031
November 7, 2036
Option 2 (10) year
November 8, 2036
November 7, 2041
November 8, 2041
November 7, 2046
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Site and Property Information
Base Rent Period
Site Map
Site Map
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Aerial Map
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Aerial Map
Brand New Shopping
Center
Kohl’s is less then 1 Mile
Away
Sold Market Comparables
List Price:
Rentable Sq. Ft.:
Year Built:
CAP Rate:
Price per Sq. ft.:
$3,000,000
5,906
2006
8%
$507.95
Max & Erma’s
1281 Hill Road North
Pickerington, Ohio 43147
Close of Escrow:
Rentable Sq. Ft.:
Year Built:
Sales Price:
CAP Rate:
Price per Sq. ft.:
11/09/2011
5,985
2007
$3,080,000
7.86%
$514.62
Applebee’s
2600 W State Street
Alliance, Ohio 44601
Close of Escrow:
Rentable Sq. Ft.:
Year Built:
Sales Price:
CAP Rate:
Price per Sq. ft.:
03/31/2011
4,320
2000
$2,050,000
7.86%
$474.54
COMMERCIAL BROKERAGE • INVESTMENT COUNSELING • PROPERTY SYNDICATIONS
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Sold Market Comparables
Subject Property
Max & Erma’s
710 Gardner Road
Springboro, Ohio
Sold Market Comparables
Continued
Close of Escrow:
Rentable Sq. Ft.:
Year Built:
Sales Price:
CAP Rate:
Price per Sq. ft.:
6/30/2011
7,028
2009
1,700,000
6.75%
$241.89
O’ Charley’s
1657 Stringtown Road,
Grove City Ohio 43123
Close of Escrow:
Rentable Sq. Ft.:
Year Built:
Sales Price:
CAP Rate:
Price per Sq. ft.:
10/17/2011
6,211
2006
$2,215,232
$356.66
MacaroniGrill
6115 Parkcenter Circle
Dublin, Ohio 43017
Close of Escrow:
Rentable Sq. Ft.:
Year Built:
Sales Price:
CAP Rate:
Price per Sq. ft.:
07/05/2011
7,448
1997
$2,861,854
8.10%
$384.25
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Sold Market Comparables
Red Lobster
6091 Sawmill Road
Dublin, Ohio 43017
Average CAP RATE Chart
Sold Market Comparables
Average Cap Rate
11/09/2011
Sold Date
03/31/2011 06/30/2011 10/17/2011
Sold Date Sold Date
Sold Date
07/05/2011 Sold Date
COMMERCIAL BROKERAGE • INVESTMENT COUNSELING • PROPERTY SYNDICATIONS
Information contained herein has been obtained from the property owner or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it