Whataburger - neW COnstruCtiOn

Whataburger - New Construction
602 W Main St, Hallsville, TX 75650
Offering Memorandum
™
R E T A I L
A D V I S O R S
CO NFIDENTIALIT Y & DIS C LAI M ER STATE M ENT
This O ffer ing M emorandum contains selec t infor mation per taining to the business and affairs of Whataburger located at 602 W Main
St, Hallsville, TX 75650 (“Proper t y ”). I t has been prepared by M atthews R etail Advisors . This O ffer ing M emorandum may not be
all-inclusive or contain all of the infor mation a prospec tive purchaser may desire. The infor mation contained in this O ffer ing
M emorandum is confidential and fur nished solely for the pur pose of a review by a prospec tive purchaser of the Proper t y. I t is
not to be used for any other pur pose or made available to any other person without the wr itten consent of S eller or M atthews
R etail Advisors . The mater ial is based in par t upon infor mation supplied by the S eller and in par t upon financial infor mation
obtained from sources it deems reliable. O wner, nor their officers, employees, or agents makes any representation or war rant y,
express or implied, as to the accurac y or completeness of this O ffer ing M emorandum or any of its contents and no legal
liabilit y is assumed or shall be implied with respec t thereto. Prospec tive purchasers should make their own projec tions and
for m their own conclusions without reliance upon the mater ial contained herein and conduc t their own due diligence.
B y ack nowledging your receipt of this O ffer ing M emorandum for the Proper t y, you agree:
1. The O ffer ing M emorandum and its contents are confidential;
2. You will hold it and treat it in the str ic test of confidence; and
3. You will not, direc tly or indirec tly, disclose or per mit anyone else to disclose this O ffer ing M emorandum or its contents
in any fashion or manner detr imental to the interest of the S eller.
O wner and M atthews R etail Advisors expressly reser ve the r ight, at their sole discretion, to rejec t any and all expressions
of interest or offers to purchase the Proper t y and to ter minate discussions with any person or entit y reviewing this O ffer ing
M emorandum or mak ing an offer to purchase the Proper t y unless and until a wr itten agreement for the purchase and sale of
the Proper t y has been fully executed and delivered.
I f you wish not to pursue negotiations leading to the acquisition of the Proper t y or in the future you discontinue such
negotiations, then you agree to purge all mater ials relating to this Proper t y including this O ffer ing M emorandum.
A prospec tive purchaser ’s sole and exclusive r ights with respec t to this prospec tive transac tion, the Proper t y, or infor mation
provided herein or in connec tion with the sale of the Proper t y shall be limited to those expressly provided in an executed
Purchase Agreement and shall be subjec t to the ter ms thereof. I n no event shall a prospec tive purchaser have any other claims
against S eller or M atthews R etail Advisors or any of their affiliates or any of their respec tive officers, Direc tors, shareholders,
owners, employees, or agents for any damages, liabilit y, or causes of ac tion relating to this solicitation process or the
mar keting or sale of the Proper t y.
This O ffer ing M emorandum shall not be deemed to represent the state of affairs of the Proper t y or constitute an indication that
there has been no change in the state of affairs of the Proper t y since the date this O ffer ing M emorandum.
Matthews Retail Advisors
Table of Contents
Pricing & Financial Analysis
Investment Overview................................................................................2
Executive Summary...................................................................................3
Company Overview ..................................................................................4
Property Description
Physical Description..................................................................................7
Bird’s Eye........................................................................................................8
Regional Map...............................................................................................9
Tenant Map................................................................................................ 10
Demographics
City Overview | Hallsville, TX................................................................ 12
Demographics Report............................................................................ 13
EXCLUSIVELY LISTED BY:
Ryan Muller
Associate
direct +1.310.919.5786
MOBILE +1.303.916.4362
ryan.muller@matthews.com
License No. 01985081
Gary Chou
Director | Restaurant Practice Group
direct +1.310.919.5827
MOBILE +1.714.928.8016
gary.chou@matthews.com
License No. 01911222
Mark Cohen
Broker of Record
License No. 447509
Matthews Retail Advisors
Pricing & Financial Analysis
™
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Investment Overview
Low Risk and Minimal Management Responsibilities
•
Brand New Construction - Completed in August of 2014
•
Long Term Stabilized Income - 14 years left on the original lease term; 2 (two), 5 year
options
•
Absolute NNN Investment – ZERO landlord responsibilities with maintenance, taxes
and insurance paid by tenant for the landlord – Ideal for out of state investors looking
for passive income
•
Strong Franchise Operator – One of Whataburger’s largest franchises,
Whataburger of East Texas Franchise and Haase family has operated since 1955
•
Reliable Brand – QSR magazine ranks Whataburger 7th in the category of “average
store sales per unit”, slightly behind Panera Bread, Chipotle, and Chick-fil-A
The
STRONG GROWING DEMOGRAPHICS
•
Growing Demographics – 13.27% growth 2000-2010; 5.47% growth 2010-2015;
projected 6.26% growth 2015-2020 within a one mile radius
•
Strong Average Household Income – Average household income is approximately
$78,300 in a 1-mile radius and $78,690 in a 3-mile radius
•
Neighboring City of Longview - Less than six miles from the city of Longview which
Forbes ranked the sixth fastest-growing small city in the United States
RELIABLE RETAIL LOCATION
•
Dependable Consumer Base – Directly down the street from Hallsville High School
which enrolls over 1,250 students
•
On the intersection of Main St. and Cider St., which feed into residential neighborhoods
P. 2
Matthews Retail Advisors
OFFERING MEMORANDUM | Whataburger
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Executive Summary
Whataburger
602 W Main St
Hallsville, TX 75650
List Price....................................................................................................$1,197,000
CAP Rate - Current���������������������������������������������������������������������������������������� 5.50%
Gross Leasable Area����������������������������������������������������������������������������������2,799 SF
Lot Size .............................................................................. 0.82 Acres (35,850 SF)
Year Built.............................................................................................................. 2014
Annualized Operating Data
Monthly Rent
Annual Rent
Rent/SF
CAP Rate
Current - 8/1/2029
$5,485.00
$65,820
$23.52
5.50%
Option 1 - 8/1/2034
$6,485.00
$77,820
$27.80
6.50%
Option 2 - 8/1/2039
$7,485.00
$89,820
$32.09
7.50%
Tenant Summary
Tenant Trade Name
Type of Ownership
Lease Guarantor
Whataburger
Fee Simple
Whataburger of East Texas (Haase)
Lease Type
NNN
Roof and Structure
Tenant
Original Lease Term
15 Years
Lease Commencment
8/1/2014
Rent Commencemnt
8/1/2014
Lease Expiration Date
8/1/2029
Term Remaining
Options
Increases
Whataburger | OFFERING MEMORANDUM
14
2, 5 year options
$1,000 a month at each option period
Matthews Retail Advisors
P. 3
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Company Overview
Property Name
Property Type
Parent Company Trade Name
Ownership
Revenue
Whataburger
Net Leased Quick Service Restaurant
Whataburger Restaurants LLC
Private
$1.8 Billion
No. of Locations
735
Headquartered
San Antonio, TX
Web Site
Year Founded
P. 4
Matthews Retail Advisors
www.whataburger.com
1950
Fans of this chain know they can get quite a burger at the place with
the orange and white roof. Whataburger Restaurants is a leading
Source:
regional hamburger chain with nearly 750 outlets in Texas
and
about 10 other states in the South and Southwest. The restaurants
are open 24 hours a day and serve burgers and fries along with
chicken sandwiches, salads, and a breakfast menu. About 600
of the restaurants are company-owned. Loyal Whataburger fans
can also don the company’s line of apparel sporting the chain’s
logo. The late Harmon Dobson founded the family-owned chain in
Corpus Christi, Texas, in 1950 with a single roadside burger stand.
OFFERING MEMORANDUM | Whataburger
Property Description
™
PRICING AND FINANCIAL ANALYSIS
P. 6
Matthews Retail Advisors
PROPERTY DESCRIPTION
DEMOGRAPHICS
OFFERING MEMORANDUM | Whataburger
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Physical Description
THE OFFERING
Property Name.............................................................................................. Whataburger
Property Address.........................................................................................602 W Main St
Hallsville, TX 75650
Assessor’s Parcel Number��������������������������������������������������������������������������� R000076441
SITE DESCRIPTION
Number of Stories����������������������������������������������������������������������������������������������������������One
Year Built........................................................................................................................... 2015
Gross Leasable Area (GLA)���������������������������������������������������������������������������������� 2,799 SF
Lot Size............................................................................................ 0.82 Acres (35,850 SF)
Type of Ownership............................................................................................ Fee Simple
Parking.................................................................................................... 23 Surface Spaces
Parking Ratio.................................................................................................8.22 : 1,000 SF
Landscaping......................................................................................................Professional
Topography................................................................................................ Generally Level
CONSTRUCTION
Foundation.................................................................................................... Concrete Slab
Framing........................................................................................................................... Wood
Exterior.......................................................................................................... Painted Stucco
Roof.......................................................................................................................................Flat
Whataburger | OFFERING MEMORANDUM
Matthews Retail Advisors
P. 7
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Bird’s Eye
MAIN
STREET
VPD
: 13,0
P. 8
Matthews Retail Advisors
00
OFFERING MEMORANDUM | Whataburger
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Regional Map
Whataburger | OFFERING MEMORANDUM
Matthews Retail Advisors
P. 9
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Tenant Map
P. 10
Matthews Retail Advisors
OFFERING MEMORANDUM | Whataburger
Demographics
™
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
City Overview | Hallsville, TX
The city of Hallsville, TX is located just a couple hours
east of the Dallas/Fort Worth area and is situated along
the major U.S. Highway 80 and Farm Road 450 on the
Union Pacific Railroad. There are more than several major
airports surrounding Hallsville and many major freeways
nearby making it easily accessible. Hallsville was originally
settled in 1893 and with its easy access to transportation
became a major hub for cotton, wool and hides. It wasn’t
until recently when in 2003, the city of Hallsville got a
renovation and has since been experiencing rapid growth.
T. he citizens of Hallsville are lucky to enjoy a high quality
life with a friendly small town feel. The cost of living in
Hallsville is quite low with no effect to the quality. The
weather is warm and there is an abundance of
recreational, educational and cultural opportunities for all
of their residents to enjoy year round. The city boasts
excellent health and dental care as well as elite fine dining
and great shopping. Many Hallsville residents love to
spend their past times involved with sports especially
Hallsville High’s football games.
P. 12
Matthews Retail Advisors
OFFERING MEMORANDUM | Whataburger
PRICING AND FINANCIAL ANALYSIS
PROPERTY DESCRIPTION
DEMOGRAPHICS
Demographics Report
Population
2020 Projection
2015 Estimate
2010 Census
2000 Census
Growth 2015-2020
Growth 2010-2015
Growth 2000-2010
1-Mile
6,952
6,543
6,204
5,477
6.26%
5.47%
13.27%
3-Mile
12,925
12,052
11,307
9,323
7.24%
6.59%
21.28%
5-Mile
70,501
67,525
65,272
58,398
4.41%
3.45%
11.77%
Households
2020 Projection
2015 Estimate
2010 Census
2000 Census
Growth 2015-2020
Growth 2010-2015
Growth 2000-2010
2,471
2,322
2,207
1,976
6.42%
5.23%
11.65%
4,528
4,231
4,000
3,356
7.02%
5.77%
19.19%
26,214
25,001
24,117
22,081
4.85%
3.67%
9.22%
7.52%
6.78%
8.48%
16.90%
20.07%
15.39%
8.32%
5.93%
6.17%
2.25%
1.84%
0.35%
$78,690
$62,804
15.90%
14.36%
12.50%
15.53%
17.76%
9.18%
5.48%
3.54%
3.15%
1.08%
1.19%
0.33%
$58,018
$41,994
Income
$0 - $15,000
$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 - $499,999
$500,000+
2015 Est. Average Household Income
2015 Est. Median Household Income
Whataburger | OFFERING MEMORANDUM
6.89%
6.42%
8.79%
16.24%
21.10%
16.62%
8.35%
5.30%
6.20%
2.20%
1.68%
0.30%
$78,300
$63,823
Matthews Retail Advisors
P. 13
Whataburger
602 W Main St
Hallsville, TX 75650
OFFERING MEMORANDUM
Ryan Muller
Associate
direct +1.310.919.5786
MOBILE +1.303.916.4362
ryan.muller@matthews.com
License No. 01985081
™
Gary Chou
Director | Restaurant Practice Group
direct +1.310.919.5827
MOBILE +1.714.928.8016
gary.chou@matthews.com
License No. 01911222
Mark Cohen
Broker of Record
License No. 447509
Matthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.Matthews.com