HomeTown Buffet - Southern California

Transcription

HomeTown Buffet Southern California
BAKERSFIELD, CA
OFFERING MEMORANDUM
BAKERSFIELD, CA
CONFIDENTIALITY AND DISCLAIMER
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.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS
& MILLICHAP AGENT FOR MORE DETAILS.
BAKERSFIELD, CA
NET LEASED DISCLAIMER
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 confirm 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.
TABLE OF CONTENTS
Section 1
PRICING AND FINANCIAL ANALYSIS
Section 2
PROPERTY DESCRIPTION
Section 3
MARKET OVERVIEW
Section 4
DEMOGRAPHIC ANALYSIS
BAKERSFIELD, CA
BAKERSFIELD, CA
FINANCIAL OVERVIEW
Location
Annualized Operating Data
4221 South H Street
Bakersfield, CA 93304
Rent Increases
Annual Rent
Monthly Rent
Current
Jan 2015-Dec 2020
$203,594.00
$205,747.00
$16,966.17
$17,145.58
Price
Down Payment
Rentable Square Feet
Price/SF
$2,744,000
100% / $2,744,000
10,800
$254.07
CAP Rate
7.42%
Year Built
1994
Lot Size
Type of Ownership
.59 ACS
Fee Simple
Option 1 (FMV)
Option 2 (FMV)
Base Rent ($18.85/SF)
$203,594
Net Operating Income
$203,594
Total Return
7.42% / $203,594
The site does very well. On average, it hits its break-even
point and pays out percentage rents to the owner regularly.
The average additional rents that are paid on top of the
base rent total approximately $39,000 annually.
Tenant Summary
Tenant Trade Name
Ownership
Tenant
Lease Guarantor
Lease Type
Roof and Structure
Lease Term
HomeTown Buffet
Private
Corporate Store
Corporate Guarantee
Absolute Net
Tenant Responsible
25 Years
Lease Commencement Date
10/26/1994
Rent Commencement Date
10/26/1994
Lease Expiration Date
12/31/2020
Term Remaining on Lease
Increases
Options
Current Base Rent: $153,290.76 annually
Common Area Charges Paid to Landlord: $11,303.04
annually
Average Percentage Rents Paid Out $39,000
Total Annual Rent: $203,594
6.4 Years
Percentage Rents
Two Five-Year
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 Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.
© 2013 Marcus & Millichap U0120169
1
BAKERSFIELD, CA
TENANT OVERVIEW
Property Name
Property Address
4221 South H Street
Property Type
Net Leased Restaurant - Other
10,800
Tenant Trade Name
HomeTown Buffet
Ownership
Private
Tenant
Sales Volume
Corporate Store
2012 Sales Volume Company-Wide $1.17 Billion
Lease Guarantor
Corporate Guarantee
Lease Commencement Date
10/26/1994
Rent Commencement Date
10/26/1994
Lease Expiration Date
12/31/2020
Term Remaining on Lease
Lease Type
Roof and Structure
Lease Term
Increases
Options to Renew
No. of Locations
Headquartered
Web Site
Years in the Business
Other Concepts Owned
6.4 Years
Absolute Net
Tenant Responsible
25 Years
Percentage Rents
Two Five-Year
400
Eagan, MN
www.buffet.com
13
Old Country Buffet and Ryan's Grill Buffet
ABOUT BUFFET, INC.
Buffets, Inc. is the largest operator of buffet-style eateries in the US, with more than 400 locations in almost 40 states. Operating
under such names as HomeTown Buffet, Old Country Buffet, and Ryan's Grill Buffet, the dining spots generally offer self-service
buffets featuring entrees, sides, and desserts for an all-inclusive price. In addition to its company-owned locations, Buffets, Inc. has
more than a dozen franchised buffet restaurants. A group of lenders, including Credit Suisse, control the company.
Buffets, Inc. primarily targets the family-dining segment, aiming its appeal toward price-conscious patrons looking to get a good
value for their money. Its brands each offer a slightly different dining experience and menu, but typically they also have a regional
affiliation. HomeTown Buffet reigns mostly in California, Ryan's holds sway in the South, and Old Country Buffet covers the
Midwest.
Within the buffet and steak buffet markets, Buffets, Inc. competes most directly with national giant Golden Corral, but the company's
chains also face competition from family dining brands such as Denny's and Cracker Barrel.
2
BAKERSFIELD, CA
BAKERSFIELD, CA
INVESTMENT OVERVIEW
Investment Highlights
■ True Triple Net Lease with No Landlord Obligations
■ High Performing Store with Percentage Rents Paid
Regularly
■ Densely Populated Region with Over 292,826 Residents
Within a Five Mile Radius of the Site
■ Highly Trafficked with Over 41,600 Vehicles Passing in
Front of the Site Daily
The subject is located adjacent to Rusty's Pizza Parlor. Other national retailers in the immediate area include
the following: Foods Co, Pizza Hut, Taco Bell, BlockBuster, Holiday Inn Express, Domino's Pizza, Carl's Jr.,
H&R Block, Verizon Wireless, Fallas Discount Store, Wells Fargo, Baskin Robbins, Round Table Pizza, and
Superior Grocers. El Pollo Loco, Fastrip Gas Station, California Water Service District, Auto Zone, Metro
PCS, 99-Cent Only Store, Sav A Lot, Rent-a-Center, Cash Advance America, and Dollar Tree are all located
along White Lane. Many other regional retailers are also in the immediate area and include Factory 2-U, a
coin laundry, a donut shop, a cleaners, a tuxedo rental shop, and a nail salon, all within walking distance of
the subject site. Urner's Appliance store is also in the neighborhood.
White Lane is the main thoroughfare connecting the 99 Freeway to Bakersfield and Central California.
The surrounding region is predominantly residential, made up of single family homes. Kern High School is
also located just a few blocks north of the site.
4
BAKERSFIELD, CA
PROPERTY SUMMARY
The Offering
Property
Property Address
4221 South H Street
Site Description
Year Built
Lot Size
Type of Ownership
1994
10,800
.59 ACS
Fee Simple
5
BAKERSFIELD, CA
AREA MAPS
Local Map
Regional Map
6
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 Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.
AERIAL PHOTO
BAKERSFIELD, CA
7
MARKET OVERVIEW
BAKERSFIELD, CA
MARKET OVERVIEW
BAKERSFIELD, CA
BAKERSFIELD
Market Highlights
Central location
■ Expanding transportation network provides
convenient access to ports, major cities and
recreation areas.
Diversifying economy
■ Growing manufacturing, distribution and food
processing industries.
Low costs of living, doing business
■ Low home prices and a pro-business environment
attracts employers.
Geography
The Bakersfield-Delano metro lies near the southern
end of the San Joaquin Valley in Kern County. The
county covers 8,161.42 square miles. The Kern
River flows through the region which partially
includes three mountain ranges: The Sierra Nevadas
to the east, The Tehachapis to the south, and the
Tremblor to the west. The City of Bakersfield,
which is the county seat, is located at the foot of the
Greenhorn Mountain Range.
Bakersfield-Delano MSA
9
MARKET OVERVIEW
BAKERSFIELD, CA
BAKERSFIELD
Metro
The Bakersfield metro encompasses all of Kern County
located in the southern portion of the San Joaquin
Valley in California and contains a population of nearly
870,000 people. Bakersfield is the most populated city
in the county with nearly 355,300 residents followed
by Delano and Ridgecrest.
Infrastructure
Largest Cities: Bakersfield MSA
Bakersfield
Three freeways bisect the metro. State Route 99 runs
355,300
Delano
54,200
north to south, state Route 58 heads southeast and state
Ridgecrest
28,200
Route 178 runs northeast. Future extensions are
Wasco
26,000
planned for SR 58 and SR 178. Also, two beltways are
Arvin
19,800
Rosamond
18,500
being considered for Bakersfield, as well as a station for
the proposed California High Speed Rail system.
2012 Estimate
Sources: Marcus & Millichap Research Services, Experian
Meadows Field Airport delivers commercial air flights
Airports
■ Meadows Field Airport
while the Bakersfield Municipal Airport offers charter
■ Bakersfield Municipal Airport
and executive aviation services.
Major Roadways
■ Interstate 5
The area is served by two class-1 railroads and Amtrak’s
San Joaquin line provides passenger rail between
Bakersfield and the San Francisco and Sacramento
areas. Amtrak also runs a bus connection service to the
Los Angeles area.
■ U.S. Highway 395
■ State Routes 14, 58, 99, 178
Rail
■ Freight - Union Pacific, BNSF
■ Passenger - Amtrak California
Bakersfield is:
Public transit services in the county are offered through
■ 110 miles from Los Angeles
Golden Empire Transit and Kern Regional Transit.
■ 110 miles from Fresno
■ 280 miles from San Francisco
■ 300 miles from Sacramento
10
MARKET OVERVIEW
BAKERSFIELD, CA
BAKERSFIELD
Economy
The metro's main industries are oil, natural gas and
agriculture. Kern County is one of the most oil
productive counties in the nation and the Elk Hills
field is the state’s top natural gas producer. Bakersfield
is also a part of the agriculturally intensive San Joaquin
Valley and agriculture still provides a major portion of
the local economic base. Other industries include
mining, petroleum refining,
manufacturing, food
processing, distribution, and aerospace. In addition,
many of the companies in these industries are
headquartering in the area.
Bakersfield’s
relatively
inexpensive
land
and
accessibility to the international ports in both Los
Angeles and Oakland as well as transportation access to
the rest of country are growing the manufacturing and
distribution sector.
The metro also has a strong aviation, space, and
military presence with Edwards Air Force Base,
Halliburton, and the China Lake Naval Air Weapons
Top Commodities Produced, 2011
Station located within the county.
Milk
The area’s business-friendly policies, such as no local
inventory or utility taxes, and Bakersfield’s minimum
Almonds
Grapes
Citrus
sales tax are helping to attract companies to establish
Carrots
offices in the region.
Pistachios
Cattle
Hay
Cherries
Cotton
11
BAKERSFIELD, CA
MARKET OVERVIEW
BAKERSFIELD
Labor
Bakersfield is well on the way to recovering the jobs lost during the recession. By the end of 2012, the nonfarm
employment base had nearly recovered to the 2006 level and is less than 4,000 positions off of the peak
employment achieved in 2007, still, the unemployment rate remains in double digits as population growth
outpaces job creation. Over the next five years, annual job growth of 1.8 percent is expected.
The government sector dominates employment in the county, accounting for nearly one-fourth of all jobs. In
addition to city staffs, this sector encompasses the counties three largest employers, Edwards Air Force Base, Kern
County and China Lakes Navel Weapons Center. The sector is poised to grow 1 percent annually through 2017.
The trade, transportation and utilities sector generates 18 percent of total employment with the largest portion of
the hires in retail trade. This segment has yet to regain many of the jobs lost during the recession and will expand
just 1 percent by 2017.
Hard hit during the recession, the construction sector is hiring again as a rise in home building as well as larger
projects, such as the cancer center addition to the San Joaquin Community Hospital, and the Caterpillar
distribution building have helped this sector to regain many of the lost slots. Over the next five years, annual
growth of 5 percent is forecast.
12
MARKET OVERVIEW
BAKERSFIELD, CA
BAKERSFIELD
Employers
Kern County's employment base was founded on agriculture
and oil. Today, agricultural producers are still a major
component to the local economy employing nearly 10,000
workers. Some of the bigger businesses include Giumarra
Companies, Grimmway Farms and Bolthouse Farms. The
large agriculture sector has attracted a growing list of food
production facilities including Frito Lay, Nestle Ice Cream
Co., and Sun Pacific to locate in the area.
Oil and gas production is in a boom cycle and alternative
energy companies are expanding. Local businesses include
Major Employers
Aera Energy, Chevron, Pacific Gas and Electric, Occidental
Edwards Air Force Base
of Elk Hills, and Ensign United States Drilling.
Kern County
China Lake Naval Weapons Center
Many of the area's largest employers represent the education
Giumarra Companies
and health services sector with nearly 27,000 hires. This
Grimmway Farms
includes jobs in the local school districts; the University of
Wm. Bolthouse Farms, Inc.
California, Bakersfield; and area hospitals,
such as
Bakersfield Memorial Hospital, Mercy Hospital, Kern
Medical Center, and San Joaquin Community Hospital.
Bakersfield Memorial Hospital
City of Bakersfield
Mercy Hospitals of Bakersfield
ARB, Inc.
In the less-populated far eastern portion of the county,
Edwards Air Force Base and the China Lake Naval Weapons
Center contribute approximately 15,000 jobs.
Due to its strategic location, the metro also serves as a
distribution hub for Target, IKEA, and Caterpiller among
others, many of which are located in the Tejon Ranch
Commerce Center.
13
BAKERSFIELD, CA
MARKET OVERVIEW
BAKERSFIELD
Demographics
The overall population shift to Sun Belt areas and the
comparatively lower cost of housing drives population
growth in Bakersfield. The population grew at an
annual rate of 2.4 percent annually during the past
decade, though it will slow to 1.2 percent annually
through 2017. This will result in an additional 50,000
residents by 2017.
Many people move to the area for jobs as more than 55
percent of residents are in their working years, with
seniors comprising less than 10 percent of the
population. Young families are also attracted to the
more affordable cost of housing. As such, 33 percent of
the population is under 20 years old. This has lowered
the median age to 31 years, which is well below the
U.S. median of 37 years.
Although the median housing price in Kern County,
which is near $139,000, is less than the median in the
L.A. basin, home prices are still out of reach for many
residents. The median household income $46,700 per
year is below the national median. Homeownership
rates at less than 53 percent are below the national rate
of 56.6 percent. Over the next five years, the rise in the
median home price is expected to triple income growth,
affording fewer residents the ability to purchase a
home.
14
MARKET OVERVIEW
BAKERSFIELD, CA
BAKERSFIELD
Quality Of Life
Outdoor enthusiasts can always find something to do
near Bakersfield, whether it is white water rafting, jet
skiing, or kayaking in Kern River Canyon or downhill
and cross-country skiing in the mountains during the
winter. Just minutes away from the city are the Buena
Vista Aquatic Recreation Area, Lake Ming and the Kern
River. These areas also provide biking and hiking trails.
Those who like indoor sports may enjoy the Bakersfield
Ice Sports Center or the McMurtrey Aquatics Center.
Bakersfield is also home to the Bakersfield Blaze
(baseball), the Bakersfield Jam (basketball), and the
Bakersfield Condors (professional ice hockey) teams.
A variety of entertainment can be enjoyed at the
Rabobank Arena Theater & Convention Center, which
is home to the Bakersfield Symphony Orchestra and
Masterworks Chorale. The Buck Owens’ Crystal Palace
provides local dinner theatre and museums include the
Kern County Museum & Lori Brock Children’s
Discovery
Center,
California
Living
Museum,
Bakersfield Museum of Art and the Buena Vista
Museum of Natural History.
Among the institutions of higher learning are California
State University, Bakersfield; Bakersfield College; and
National University.
15
BAKERSFIELD, CA
BAKERSFIELD, CA
DEMOGRAPHIC REPORT
1 Mile
3 Miles
5 Miles
1990 Population
2000 Population
2010 Population
2012 Population
2017 Population
18,881
21,916
24,548
25,481
27,549
94,867
111,076
138,410
143,683
155,399
178,358
207,796
251,229
260,730
281,857
1990 Households
2000 Households
2010 Households
2012 Households
2017 Households
6,330
6,658
6,816
7,045
7,562
32,590
35,468
40,163
41,517
44,565
61,233
68,233
77,411
80,011
85,895
3.59
3.45
3.23
3,362
30,641
101,732
1990 Median Housing Value
2000 Median Housing Value
$76,740
$82,285
$77,732
$85,964
$83,042
$92,441
2000 Owner Occupied Housing Units
2000 Renter Occupied Housing Units
2000 Vacant
54.78%
38.74%
6.42%
54.44%
39.43%
6.12%
53.18%
40.61%
6.20%
2012 Vacant
45.48%
46.97%
7.54%
47.81%
44.41%
7.78%
46.69%
45.47%
7.83%
2017 Vacant
43.43%
50.20%
6.37%
45.66%
47.75%
6.59%
44.58%
48.78%
6.64%
13.1%
17.3%
12.7%
21.7%
20.3%
7.9%
4.6%
1.7%
0.4%
0.1%
0.2%
13.6%
14.9%
12.5%
18.2%
20.8%
10.4%
4.7%
2.8%
1.0%
0.3%
1.0%
14.4%
13.6%
11.4%
17.0%
19.0%
11.3%
5.6%
3.6%
1.8%
0.6%
1.8%
2012 Median Household Income
2012 Per Capita Income
$38,936
$11,612
$42,147
$14,124
$43,980
$17,336
2012 Average Household Income
$40,773
$48,086
$54,905
2012 Average Household Size
2012 Daytime Population
$ 0 - $14,999
$ 15,000 - $24,999
$ 25,000 - $34,999
$ 35,000 - $49,999
$ 50,000 - $74,999
$ 75,000 - $99,999
$100,000 - $124,999
$125,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000 +
Demographic data © 2010 by Experian/Applied Geographic Solutions.
17
BAKERSFIELD, CA
SUMMARY REPORT
Geography: 5 Miles
Population
In 2012, the population in your selected geography was 260,730 . The population has changed by 25.47% since 2000. It is estimated
that the population in your area will be 281,857 five years from now, which represents a change of 8.10% from the current year. The
current population is 49.2% male and 50.7% female. The median age of the population in your area is 29.0 , compare this to the U.S.
average which is 36.9. The population density in your area is 3,318.30 people per square mile.
Households
There are currently 80,011 households in your selected geography. The number of households has changed by 17.26% since 2000.
It is estimated that the number of households in your area will be 85,895 five years from now, which represents a change of 7.35%
from the current year. The average household size in your area is 3.22 persons.
Income
In 2012, the median household income for your selected geography is $43,980 , compare this to the U.S. average which is currently
$53,620. The median household income for your area has changed by 26.66% since 2000. It is estimated that the median household
income in your area will be $48,396 five years from now, which represents a change of 10.04% from the current year.
The current year per capita income in your area is $17,336 , compare this to the U.S. average, which is $28,713. The current year
average household income in your area is $54,905 , compare this to the U.S. average which is $73,458.
Race & Ethnicity
The current year racial makeup of your selected area is as follows: 46.95% White, 9.01% African American, 1.93% Native American
and 4.08% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.40% White, 12.60% African American, 0.95%
Native American and 4.93% Asian/Pacific Islander.
People of Hispanic origin are counted independently of race. People of Hispanic origin make up 57.84% of the current year
population in your selected area. Compare this to the U.S. average of 16.90%.
Housing
The median housing value in your area was $92,441 in 2000, compare this to the U.S. average of $110,796 for the same year. In
2000, there were 38,688 owner occupied housing units in your area and there were 29,546 renter occupied housing units in your
area. The median rent at the time was $460 .
Employment
In 2012, there are 101,732 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed
that 52.6% of employees are employed in white-collar occupations in this geography, and 47.3% are employed in blue-collar
occupations. In 2012, unemployment in this area is 11.97% . In 2000, the median time traveled to work was 18.1 minutes.
18
BAKERSFIELD, CA
POPULATION DENSITY
Number of people living in a given area per square mile.
19
BAKERSFIELD, CA
EMPLOYMENT DENSITY
The number of people employed in a given area per square mile.
20
BAKERSFIELD, CA
AVERAGE HOUSEHOLD INCOME
Average income of all the people 15 years and older occupying a
single housing unit.
21
BAKERSFIELD, CA
OFFERING MEMORANDUM
Exclusively Listed By:
Lior Regenstreif
Vice President Investments
Senior Director, Net Leased Properties Group
Encino Office
License: CA 01267761
Tel: (818)212-2730
Fax: (818)212-2710
Lior.Regenstreif@marcusmillichap.com
www.marcusmillichap.com/LiorRegenstreif
Offices Nationwide
www.MarcusMillichap.com

HomeTown Buffet - Southern California

Transcription

Similar documents

28325 North Tatum Boulevard Cave Creek, AZ 85331

Property Brochure

american lubefast - moss point, mississippi

Valero Gas Station - CRE Investment Advisor

I entered the real estate business in 19`]1, and began my career with

Freddy`s Frozen Custard

Dusty treasures brought to light

student buffet - Botanas Restaurant

lesson 2 - Country Music Hall of Fame and Museum

WALMART NEIGHBORHOOD MARKET 7636 Middle Valley Road