10 South Main Street, Jamestown, New York 14701 - Friendly's - OFFERING MEMORANDUM - NNN Properties
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Friendly’s 10 South Main Street, Jamestown, New York 14701 OFFERING MEMORANDUM Exclusive Net-Lease Of fering
TABLE OF CONTENTS
Financial Overview
Investment Highlights & Overview
Lease Summary
Concept Overview
Property Overview
Location Highlights & Overview
Surrounding Aerial Map
Property Photos
Surrounding Area Photos
Demographics
Population
Income
Employment
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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a
service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 22
FINANCIAL OVERVIEW
10 South Main Street– Jamestown, New York
PRICE: $1,718,430| 8.00% CAP | RENT: $137,474
PROPERTY DESCRIPTION
Property Friendly’s
HIGHLIGHTS
Property Address 10 South Main Street
➢ Annual Increases of 1.50 Percent
City, State, ZIP Jamestown, NY 14701
Building Size (SF) 5,967 SF ➢ Excellent Unit Level Performance
Lot Size (Acres) 1.44 Acres ➢ Recently Remodeled
Type of Ownership Triple-Net (NNN) Lease
➢ Four, Five-Year Tenant Renewal Options
THE OFFERING ➢ True Triple-Net (NNN) Lease with no Landlord Responsibilities
Price $1,718,430 ➢ Potential Percentage Rent
CAP Rate 8.00%
Annual Rent $137,474
LEASE SUMMARY
Property Name Friendly’s
Property Type Net Leased Restaurant
Ownership Private
Tenant / Guarantor Friendly’s Restaurants, LLC
Lease Term 12 Years
Lease Commencement 7/31/2013
Lease Expiration 7/31/2025
Lease Term Remaining 8 Years
Lease Type Triple-Net (NNN)
Roof & Structure Tenant Responsible
Options to Renew Four, Five-Year Options
Rental Increases 1.50% Annually
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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a
service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 33
FINANCIAL OVERVIEW
INVESTMENT SUMMARY ANNUALIZED OPERATING DATA
The subject investment is a net-leased Friendly’s located at 10 South Initial Annual Rent $137,474
Main Street in Jamestown, New York. The property sits on approximately
1.44 acres of land and is comprised of roughly 5,967 square feet of
building space. Rental Escalations 1.50% Annually
The property is subject to a 12-year triple-net "NNN" lease with no
landlord responsibilities. The lease commenced July 31st, 2013 and has
eight years remaining. The lease calls for annual rental increases of 1.5 RENT SCHEDULE
percent. There are four, five-year tenant renewal options in addition to
the 12-year initial term. The tenant is required to pay potential Lease Year Annual Rent Monthly Rent
percentage rent equal to 8 percent of gross sales in excess of the 7/31/2017 - 7/30/2018 $135,443 $11,287
breakpoint. The breakpoint is the annual base rent divided by 8 percent.
7/31/2018 - 7/30/2019 $137,474 $11,456
TENANT SUMMARY
7/31/2019 - 7/30/2020 $139,536 $11,628
Friendly's currently operates 250-plus restaurants franchise and 7/31/2020 - 7/30/2021 $141,630 $11,802
corporate locations throughout Connecticut, Delaware, Florida, Maine,
Maryland, Massachusetts, New Hampshire, New Jersey, New York, 7/31/2021 - 7/30/2022 $143,754 $11,979
Pennsylvania, Rhode Island, South Carolina, Vermont, and Virginia.
7/31/2022 - 7/30/2023 $145,910 $12,159
Friendly’s is a restaurant chain founded on ice cream and built around 7/31/2023 - 7/30/2024 $148,099 $12,342
families. For nearly 80 years, Friendly’s has built a place that brings you a
friendly staff, reasonable prices, and a thousand sweet ways to end your 7/31/2024 - 7/30/2018 $150,320 $12,527
day. The Friendly’s mission is to “create great memories by bringing
family and friends together,” while providing guests with great customer CAP Rate 7.50%
service and delicious food and ice cream. Purchase Price $1,718,430
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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a
service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 44
CONCEPT OVERVIEW
HISTORY OF FRIENDLY’S
Friendly's is a restaurant chain on the United States' East Coast.
Friendly's was founded in 1935 in Springfield, Massachusetts, by
the Blake brothers S. Prestley and Curtis. The chain has 10,000
employees; John M. Maguire is the CEO. It offers 22 ice cream
1935 flavors. A total of 380 Friendly's are spread across Connecticut,
In Springfield, Massachusetts at the height of the Great Depression, two Delaware, Maine, Maryland, Massachusetts, New Hampshire, New
spunky brothers, 20-year-old Prestley and 18-year-old Curtis Blake open a Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia,
modest neighborhood ice cream shop with double-dip cones for five South Carolina, and Orlando, Florida.
cents. The young entrepreneurs name the business "Friendly" with the
intention of providing warm, caring, neighborly service to all who visit.
1960
The growing company moves to the current headquarters in Wilbraham,
Massachusetts. Adjacent to the headquarters, there is a creamery which
makes the ice cream that still serves much of the Friendly system.
SUN CAPITAL PARTNERS, INCORPORATED
Sun Capital Partners, Incorporated is a global private equity firm
2007 focused on identifying companies’ untapped potential and leveraging
An affiliate of Sun Capital Partners, Incorporated, a leading private its deep operational and financial resources to transform results. Sun
investment firm specializing in leveraged buyouts and investments in
market-leading companies, acquires Friendly’s.
Capital is a trusted partner that is recognized for its investment and
operational experience, including particular expertise in the
consumer products and services, food and beverage, industrial,
packaging, chemicals, building products, automotive, restaurant and
retail sectors. Since 1995, Sun Capital has invested in more than 340
companies worldwide with revenues in excess of $45 billion across a
2015 broad range of industries and transaction structures. Sun Capital has
Friendly’s celebrates its 80th anniversary. offices in Boca Raton, Los Angeles and New York, and affiliates in
London, Frankfurt and Shenzhen.
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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a
service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 55
LOCATION OVERVIEW
HIGHLIGHTS
➢ Located on an Oversized Hard Corner of a Busy,
Signalized Intersection With Daily Traffic Counts of
Roughly 25,000 Cars Per Day
➢ Immediate Proximity to Major Area Hospital and
General Care Medical Center
➢ Adjacent From Big Lots, Community Bank, and CVS
Pharmacy
➢ Additional Retail in The Immediate Area Includes: Rite
Aid, Walgreens, Tim Hortons, and Big Lots
6
This Friendly’s is located at 10 South Main Street, Jamestown, New York. LOCATION OVERVIEW
Jamestown is a city in southern Chautauqua County, situated between Lake Erie
to the northwest and the Allegheny National Forest to the south.
Surrounding Retail and Points of Interest
The property is situated on S Main Street across the street from a CVS Pharmacy.
The subject property is situated due east from a Big Lots, Community Bank, and
CVS Pharmacy. There is also a Tim Hortons and Family Dollar across from the Big
Lots on Harrison Street. Just south of the property is a Rite Aid and Walgreens.
Additionally, 0.2 miles southeast of the property is the Jones Memorial Health
Center.
The property is situated just 0.1 miles from the WCA Jones Memorial Health
Center. The hospital is southwestern New York’s largest non-for-profit healthcare
provider, offering an extensive range of inpatient and outpatient acute and
rehabilitation services. The hospital has over 90 beds and is accredited by The
Joint Commission and American College of Radiology and is approved by the
American College of Surgeons Commission on Cancer.
Traffic Counts and Demographics
Traffic Counts on South Main Street are roughly 25,000 vehicles per day providing
a consistent flow of consumers to this Friendly’s location. Within a three-mile and
five-mile radius of the subject property the population is approximately 38,000
and 47,000 residents respectively. In addition there are several colleges and
universities within a 30-minute drive of Friendly’s. The community’s high
population and strong traffic counts leads to consistent consumer traffic and
excellent exposure for this Friendly’s.
About Jamestown, NY
Jamestown offers all the advantages of city living combined with the beauty and
recreational opportunities of the rural experience including nearby ski resorts,
acclaimed golf courses, nature preserves and water sports on Chautauqua Lake.
Shops, dining, entertainment, affordable homes of great character, and so much
more are part of the urban experience. A world-class arena offering concerts,
hockey and figure-skating anchors the downtown entertainment scene, along
with a variety of theaters, bars, and other attractions that bring vibrancy to the
city’s architecturally rich urban core. From the beautifully restored theater at the
Reg Lenna Center for the Arts, to the small stage tucked into the back of Mojo’s,
Jamestown offers wonderful experiences in a variety of ways.
7
10 South Main Street– Jamestown, New York AERIAL
UPMC Chautauqua Hospital
(90 Beds)
8
PROPERTY PHOTO
9
INTERIOR PHOTO
10INTERIOR PHOTO
11SURROUNDING AREA PHOTOS
12DEMOGRAPHICS
5 Miles
1 Miles 3 Miles 5 Miles
POPULATION
2021 Projection 18,297 38,038 46,790
2016 Estimate 18,629 38,556 47,332
3 Miles 2010 Census 18,995 39,300 48,294
2000 Census 19,450 40,361 49,712
INCOME
Average $39,520 $48,066 $51,671
Median $29,190 $35,747 $38,178
Per Capita $16,865 $20,558 $22,159
1 Mile
HOUSEHOLDS
2021 Projection 7,653 15,998 19,836
2016 Estimate 7,762 16,132 19,944
2010 Census 7,994 16,582 20,502
2000 Census 8,369 17,064 20,924
HOUSING
2016 $60,998 $68,665 $73,243
EMPLOYMENT
2016 Daytime Population 18,645 44,016 54,972
2016 Unemployment 9.63% 8.31% 7.80%
2016 Median Time Traveled 17 17 17
RACE & ETHNICITY
White 84.06% 88.76% 90.23%
Native American 0.05% 0.04% 0.03%
African American 4.97% 3.50% 2.98%
Asian/Pacific Islander 0.43% 0.62% 0.70%
13Marcus & Millichap hereby advises all prospective purchasers be set based on a tenant’s projected sales with little or no asbestos, the compliance with State and Federal regulations,
of Net Leased property as follows: record of actual performance, or comparable rents for the the physical condition of the improvements thereon, or the
area. Returns are not guaranteed; the tenant and any financial condition or business prospects of any tenant, or any
The information contained in this Marketing Brochure has guarantors may fail to pay the lease rent or property taxes, or tenant’s plans or intentions to continue its occupancy of the
been obtained from sources we believe to be reliable. may fail to comply with other material terms of the lease; cash subject property. The information contained in this Marketing
However, Marcus & Millichap has not and will not verify any of flow may be interrupted in part or in whole due to market, Brochure has been obtained from sources we believe to be
this information, nor has Marcus & Millichap conducted any economic, environmental or other conditions. Regardless of reliable; however, Marcus & Millichap has not verified, and
investigation regarding these matters. Marcus & Millichap tenant history and lease guarantees, Buyer is responsible for will not verify, any of the information contained herein, nor
makes no guarantee, warranty or representation whatsoever conducting his/her own investigation of all matters affecting has Marcus & Millichap conducted any investigation regarding
about the accuracy or completeness of any information the intrinsic value of the property and the value of any long- these matters and makes no warranty or representation
provided. term lease, including the likelihood of locating a replacement whatsoever regarding the accuracy or completeness of the
tenant if the current tenant should default or abandon the information provided. All potential buyers must take
As the Buyer of a net leased property, it is the Buyer’s property, and the lease terms that Buyer may be able to appropriate measures to verify all of the information set forth
responsibility to independently confirm the accuracy and negotiate with a potential replacement tenant considering the herein.
completeness of all material information before completing location of the property, and Buyer’s legal ability to make
any purchase. This Marketing Brochure is not a substitute for alternate use of the property. NON-ENDORSEMENT NOTICE
your thorough due diligence investigation of this investment
opportunity. Marcus & Millichap expressly denies any By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services, Inc.
obligation to conduct a due diligence examination of this Marcus & Millichap Real Estate Investment Services and hold it (“M&M”) is not affiliated with, sponsored by, or endorsed by
Property for Buyer. harmless from any kind of claim, cost, expense, or liability any commercial tenant or lessee identified in this marketing
arising out of your investigation and/or purchase of this net package. The presence of any corporation’s logo or name is
Any projections, opinions, assumptions or estimates used in leased property. not intended to indicate or imply affiliation with, or
this Marketing Brochure are for example only and do not sponsorship or endorsement by, said corporation of M&M, its
represent the current or future performance of this property. CONFIDENTIALITY AND DISCLAIMER affiliates or subsidiaries, or any agent, product, service, or
The value of a net leased property to you depends on factors commercial listing of M&M, and is solely included for the
that should be evaluated by you and your tax, financial and The information contained in the following Marketing purpose of providing tenant lessee information about this
legal advisors. Brochure is proprietary and strictly confidential. It is intended listing to prospective customers.
to be reviewed only by the party receiving it from Marcus &
Buyer and Buyer’s tax, financial, legal, and construction Millichap and should not be made available to any other ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
advisors should conduct a careful, independent investigation person or entity without the written consent of Marcus & PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR
of any net leased property to determine to your satisfaction Millichap. This Marketing Brochure has been prepared to MORE DETAILS.
with the suitability of the property for your needs. provide summary, unverified information to prospective
purchasers, and to establish only a preliminary level of interest Activity ID: Y0331294
Like all real estate investments, this investment carries in the subject property. The information contained herein is
significant risks. Buyer and Buyer’s legal and financial advisors not a substitute for a thorough due diligence investigation.
must request and carefully review all legal and financial Marcus & Millichap has not made any investigation, and
documents related to the property and tenant. While the makes no warranty or representation, with respect to the
tenant’s past performance at this or other locations is an income or expenses for the subject property, the future
important consideration, it is not a guarantee of future projected financial performance of the property, the size and
success. Similarly, the lease rate for some properties, including square footage of the property and improvements, the
newly-constructed facilities or newly-acquired locations, may presence or absence of contaminating substances, PCB’s or10 South Main Street, Jamestown, New York 14701 Representative Photo
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