tgi friday`s - EXP Realty Advisors

REPRESENTATIVE PHOTO
EXCLUSIVE OFFERING | $1,572,000 - 6.50% CAP
TGI FRIDAY’S
14400 Buck Hill Road, Burnsville, MN
EXP DALLAS
214.522.7200
BOB MOORHEAD
bob@exp1031.com
JOE CAPUTO
joe@exp1031.com
property. 5,895+ SF building on 2.69+ acre site.
tenant. TGI Friday’s Inc. : 900+ locations in 59 countries. 2011 revenue: $2.6 billion.
lease structure. Ground Lease – Absolute NNN. Recent 5-year option to renew exercised. 20% rent increases in remaining option period.
location. TGI Friday’s is located on the west side of Buck Hill Road directly off of Interstate 35W (76,825 Cars / Day) in the central portion of Burnsville, MN.
Buck Hill Road is located at the intersection of Interstate 35W, Interstate 35E (53,721 Cars / Day), and County Road 42 (54,080 Cars / Day). The subject property
is also located directly across from the Burnsville Center Mall (1.36 Million SF), anchored by Sears, Dick’s Sporting Goods, Macy’s, and JC Penney. Nearby big
box retailers include Kohl’s, Costco, Home Depot, K-Mart, Best Buy, Toys R Us, SuperTarget, Sports Authority, and OfficeMax. The Minneapolis–St. Paul–
Bloomington MSA has a population of 3,422,264 making it the 16th largest in the US.
Table of contents | Disclaimer
TGI FRIDAY’S
14400 Buck Hill Road, Burnsville, MN
Disclaimer
PAGE 1:
COVER
PAGE 2:
TABLE OF CONTENTS | DISCLAIMER
PAGE 3:
INVESTMENT | TENANT | LEASE OVERVIEW
PAGE 4:
SITE PLAN
PAGE 5-6:
AERIAL PHOTO
PAGE 7:
LOCATION OVERVIEW
PAGE 8-9:
LOCATION MAPS
PAGE 10:
DEMOGRAPHICS
SUBJECT PROPERTY
Retail Resource Group, Inc. and EXP Realty Advisors, Inc. (“Agents”) have been engaged
as agents for the sale of the property located at 14400 Buck Hill Road, Burnsville, MN by
the owner of the Property (“Seller”). The Property is being offered for sale in an “as-is,
where-is” condition and Seller and Agents 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 Agents 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 Agents 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 Agents
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. Agents are 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 Agents 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 Agents; and (c) no portion of the enclosed materials may be
copied or otherwise reproduced without the prior written authorization of Seller and Agents
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Investment overview
TGI FRIDAY’S
14400 Buck Hill Road, Burnsville, MN
Lease overview
Current Lease Term:
5-Yrs & (1) 5-Year Option to Renew
Current Term Commencement:
April 2014
Lease Expiration:
March 2019
Lease Type:
Ground Lease – Absolute NNN
Rent Increases:
20% In Option Period
(Option 1 | 4/04-3/09):
$70,920
(Option 2 | 4/09-3/14):
$85,104
Fee Simple Interest
(Option 3 | 4/14-3/19):
$102,124
LANDLORD RESPONSIBILITY:
None
(Option 4 | 4/19-3/24):
$122,549
OCCUPANCY:
100%
Percentage Rent:
2% over breakpoint
Tenants Right of First Refusal:
Yes
PRICE:
$1,572,000
CAP RATE:
6.50%
NET OPERATING INCOME:
$102,124
BUILDING AREA:
5,895+ Square Feet
LAND AREA:
2.69+ Acres
YEAR BUILT | REMODELED:
1993 | 2003
OWNERSHIP:
(Option 3 has been exercised)
Tenant overview
TGI Friday’s Inc.
TGI FRIDAY’S | www.tgifridays.com
TGI Friday’s Inc., aka “Friday’s,” is arguably the most recognized chain in the casual dining sector in North America. Friday’s was founded in 1965 with one
restaurant in New York City. The company has since grown to generate well over $2.6 billion dollars in annual revenues thru 900+ restaurants in 59 countries and
49 states. Friday’s is a wholly owned subsidiary of Carlson Companies who acquired the chain nearly 40 years ago in 1975.
The parent of TGI Friday’s Inc., Carlson Restaurants Worldwide, Inc (CRW), is a subsidiary of Carlson Companies, Inc. CarlsonSUBJECT
Companies
was founded in 1938
PROPERTY
and is a global leader in the travel, cruise, restaurant and hotel industries. Today, the company is one of the largest privately owned corporations in the country
PRIOR TO PANDA EXPRESS EXPANSION
with operations in nearly 150 countries worldwide, employing approximately 160,000 people. In 2008 the company posted $38 billion in revenues. The company is
headquartered in Minnetonka, Minnesota.
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SITE PLAN
TGI FRIDAY’S
14400 Buck Hill Road, Burnsville, MN
4
Aerial photo
TGI FRIDAY’S
14400 Buck Hill Road, Burnsville, MN
Fairview Ridges Hospital
1,500 employees
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Aerial photo
TGI FRIDAY’S
14400 Buck Hill Road, Burnsville, MN
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Location overview
TGI FRIDAY’S
14400 Buck Hill Road, Burnsville, MN
IMMEDIATE TRADE AREA
TGI Friday’s is located on the west side of Buck Hill Road directly off of
Interstate 35W (76,825 Cars / Day) in the central portion of Burnsville, MN.
Buck Hill Road is located at the intersection of Interstate 35W, Interstate 35E
(53,721 Cars / Day), and County Road 42 (54,080 Cars / Day), all major
commuting routes to Minneapolis/St. Paul (combined 184,626 Cars / Day).
The subject property is an outlot the Burnsville Center Mall (1.36 Million SF),
anchored by Sears, Dick’s Sporting Goods, Macy’s, and JC Penney. Nearby
big box retailers include Kohl’s, Costco, Home Depot, K-Mart, Best Buy, Toys
R Us, SuperTarget, Sports Authority, and OfficeMax. TGI Friday’s is located
across from multiple hotels, including the Hampton Inn, Days Inn, Fairfield Inn,
and Best Western, and sits next to the Paragon Odyssey 15 movie theater. To
the south of TGI Friday’s are multiple car dealerships and to the northeast is
the Fairview Ridges Hospital which has 150 beds and employs 1,500 people.
The immediate trade area is predominately composed of single and multifamily communities and service/retail oriented businesses. The property is
located 18 miles southwest of Minneapolis and 25 miles southeast of St. Paul.
BURNSVILLE, MN
Burnsville, MN is a suburb of Minneapolis and St. Paul located about
equidistant south of both the Twin Cities at the junction of I-35W and I-35E.
The city currently has a population of 61,130 and is the 9th largest city in the
Twin City region and the 14th largest in Minnesota. Considered a bedroom
community of the Twin Cities, Burnsville has over 1,750 acres of parks, 9
hotels, 90 restaurants, and a nationally recognized performing arts center
making it a popular place to live and visit. Burnsville is conveniently located
with the average resident’s commute taking only 22 minutes. In addition,
Burnsville is about 15-30 minutes away from attractions such the Mall of
America, Valleyfair Amusement Park, Buck Hill Ski Area, and the MinneapolisSt. Paul International Airport.
Retail in the city is centered along County Road 42, running east to west
through the city, which is anchored by the Burnsville Center, a 1,360,000
square-foot regional mall which hosts over 120 retail stores.
The largest employers in the town are the Fairview Ridges Hospital, Goodrich
Sensor Systems, Northern Tool + Equipment, Pepsi-Cola Bottling Company,
and Frontier communications. The median family income is above average for
both the United States and Minnesota at $80,921 in 2009. The unemployment
rate in Burnsville is currently 4.7%.
MINNEAPOLIS–ST. PAUL–BLOOMINGTON MSA
The Minneapolis–St. Paul–Bloomington Metropolitan Statistical Area (MSA) or
the Twin Cities is the most populous urban area in the state of Minnesota. The
MSA is anchored by Minneapolis (Population: 392,880), the largest city in the
state and St. Paul (Population: 290,770), the state capital. The MSA has a
population of 3,422,264 making it the 16th largest in the country.
The Minneapolis–St. Paul area is the second largest economic center in the
Midwest, behind Chicago. The economy of Minneapolis today is based in
commerce, finance, rail and trucking services, health care, and industry.
Smaller components are in publishing, milling, food processing, graphic arts,
insurance, education, and high technology. Industry produces metal and
automotive products, chemical and agricultural products, electronics,
computers, precision medical instruments and devices, plastics, and
machinery. Five Fortune 500 corporations make their headquarters within the
city limits of Minneapolis: Target, U.S. Bancorp, Xcel Energy, Ameriprise
Financial and Thrivent Financial for Lutherans. The largest employers in
Minneapolis are Target, University of Minnesota, Allina Health, Fairview Health
Services, Wells Fargo, Hennepin County, Ameriprise, Hennepin County
Medical Center, U.S. Bancorp, City of Minneapolis, Xcel Energy, Capella
Education Company, RBC Wealth Management, Macy's, TCF Financial,
Federal Reserve Bank of Minneapolis, Thrivent, and the Star Tribune. Foreign
companies with U.S. offices in Minneapolis include Accenture, Canadian
Pacific, Coloplast, RBC and ING Group.
The Twin Cities contribute 63.8% of the gross state product of Minnesota. The
area's $199.6 billion gross metropolitan product and its per capita personal
income ranked 13th in the U.S. The Federal Reserve Bank of Minneapolis,
serves Minnesota, Montana, North and South Dakota, and parts of Wisconsin
and Michigan. The smallest of the 12 regional banks in the Federal Reserve
System, it operates a nationwide payments system, oversees member banks
and bank holding companies, and serves as a banker for the U.S. Treasury.
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Location map
TGI FRIDAY’S
14400 Buck Hill Road, Burnsville, MN
8
Location map
TGI FRIDAY’S
14400 Buck Hill Road, Burnsville, MN
9
Demographics
TGI FRIDAY’S
14400 Buck Hill Road, Burnsville, MN
Demographic snapshot
Radius
1 Mile
3 Mile
5 Mile
2017 Projection
8,098
73,923
163,329
2012 Estimate
8,019
72,593
159,351
2010 Census
7,983
71,884
157,423
Growth 2012-2017
1.00%
1.80%
2.50%
Growth 2010-2012
0.40%
1.00%
1.20%
2017 Projection
3,621
28,211
61,600
2012 Estimate
3,538
27,309
59,307
2010 Census
3,546
27,153
58,821
Growth 2012-2017
2.30%
3.30%
3.90%
Growth 2010-2012
-0.20%
0.60%
0.80%
Owner Occupied
1,930
19,584
44,186
Renter Occupied
1,609
7,725
15,121
2012 Avg Household Income
$85,148
$91,948
$92,767
2012 Med Household Income
$64,161
$74,664
$76,160
2012 Per Capita Income
$36,875
$34,584
$34,631
Income Less than $15,000
200
1,589
3,074
Income $15,000 - $24,999
297
1,450
3,028
Income $25,000 - $34,999
271
1,935
4,148
Income $35,000 - $49,999
580
3,454
7,182
Income $50,000 - $74,999
643
5,276
11,605
Income $75,000 - $99,999
476
4,296
9,684
Income $100,000 - $149,999
567
5,293
12,102
Income $150,000 - $199,999
339
2,393
5,005
Income $200,000+
166
1,623
3,479
Population:
Households:
DOWNTOWN MINNEAPOLIS, MN
2012 Households by Household Inc:
BURNSVILLE CENTER MALL, BURNSVILLE, MN
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