2215 Maplecrest Road Fort Wayne, IN - CONFIDENTIAL OFFERING MEMORANDUM - LoopNet
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
EXECUTIVE SUMMARY CONFIDENTIAL OFFERING MEMORANDUM
18.5 Year Lease Term Remaining • 10% Rent Escalations Every 5 Years • Wendy’s Corporate Guarantee
2215 Maplecrest Road
Fort Wayne, IN
1
TABLE OF CONTENTS
EXECUTIVE SUMMARY.......................................3 TIMOTHY HALL JOHN MERRILL
Holliday Fenoglio Fowler, L.P. Holliday Fenoglio Fowler, L.P.
TENANT OVERVIEW...........................................4 Senior Managing Director License # : RB14036883
202.533.2521 Senior Managing Director
thall@hfflp.com 317.632.7503
LOCATION OVERVIEW........................................5 jmerrill@hfflp.com
LEASE ABSTRACT.............................................6 CRAIG CHILDS
Holliday Fenoglio Fowler, L.P.
Analyst
202.777.2315
cchilds@hfflp.com
Holliday Fenoglio Fowler, L.P. (“HFF”) an Indianapolis licensed real estate broker.
This Offering Memorandum has been prepared by HFF for use by a limited number of parties and has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it, and make no guarantee, warranty or representation
about it. It is your responsibility to confirm, independently, its accuracy and completeness. All projections have been developed by HFF, Owner and designated sources, are based upon assumptions relating to the general economy, competition, and other factors
beyond the control of Owner, and therefore are subject to variation. No representation is made by HFF or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied on as a promise or
representation as to the future performance of the property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent
due diligence in verifying all such information. Further, HFF, Owner and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omissions from, the Offering Memorandum or any other written
or oral communication transmitted or made available to the recipient.
The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained
in the Offering Memorandum is solely the responsibility of the prospective purchaser.
Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors.
Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal
commitment or obligations to any entity reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered
and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.
This Offering Memorandum and the contents, except such information, which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Offering Memorandum, you agree that you will hold and
treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose this Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of
whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Owner or HFF and that you will use the information in this Offering Memorandum for the sole purpose of evaluating
your interest in the property and you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Owner or HFF. If you have no interest in the property, please return the Offering Memorandum forthwith.
2
EXECUTIVE SUMMARY
INVESTMENT OPPORTUNITY
HFF is pleased to exclusively present the opportunity to purchase the net-leased, fee simple interest in the
commercial building located at 2215 Maplecrest Road in Fort Wayne, IN (the “property”). The free-standing
building is net leased to Wendy’s Properties, LLC (“Wendy’s”) and guaranteed by Wendy’s SPV Guarantor,
LLC, a holding company for Wendy’s corporate (S&P: BBB) Wendy’s has a remaining lease term of 18
years alongside two 5-year options.
The property is located in Fort Wayne, IN, the northeastern part of the state, 18 miles west of the Ohio
border and 50 miles south of the Michigan border. Fort Wayne, with a population exceeding 260,000, is the
second most populous city in the state after Indianapolis. The population of the larger Fort Wayne
metropolitan area, consisting of not only Allen but also Wells and Whitley counties, is 419,000.
The property affords investors the unique opportunity to acquire Wendy’s long-term, 18 year,
contractual cash flow.
PROPERTY OVERVIEW
Price $2,301,260 (5.00% cap rate)
INVESTMENT HIGHLIGHTS
Tenant's Name Wendy's Properties LLC
• Wendy’s Recently Executed 20-Year Lease Term (LED: 2/2036) 2215 Maplecrest Road
Premises
with two (2) 5-year extension options at fixed renewal rates Fort Wayne, IN
Size 3,266 SF
• Corporate Lease – The Wendy’s Company (NASDAQ: WEN) guaranteed
by Wendy’s SPV Guarantor, LLC (S&P: BBB) Acreage .81 acres
• Wendy’s Lease includes 10% rental increase every five (5) years Annual Rent $115,063
(next increase is 10% in 2/2021)
Rent Escalations 10% every 5 years
Options to Extend Two (2) successive periods of five (5) years each.
Lease Structure NNN
3
TENANT OVERVIEW
THE WENDY’S COMPANY
(NASDAQ: WEN)
Wendy’s is the world’s third largest quick-service restaurant company in
the hamburger sandwich segment. Wendy’s is primarily engaged in the
business of operating, developing and franchising a system of distinctive
quick-service restaurants serving high quality food. At January 1, 2017,
there were 6,098 Wendy’s restaurants in operation in North America. Of these restaurants, 330 were operated
by the Company and 5,768 by a total of 376 franchisees. In addition, at January 1, 2017, there were 439
franchised Wendy’s restaurants in operation in 29 countries and territories other than North America.
The revenues from the Company’s restaurant business are derived from two principal sources: (1) sales at
Company-operated restaurants and (2) franchise-related revenues including royalties, rents and franchise fees
received from Wendy’s franchised restaurants. Company-operated restaurants comprised approximately 5%
of the total Wendy’s system as of January 1, 2017.
With an enterprise value exceeding $6 billion, revenue of $1.4 billion and adjusted EBITDA in excess of $390
million, for the fiscal year ending 2016, the Company has experienced significant growth in recent years,
growing adjusted EBITDA 27% annually over the last 5 years. The Company’s envisions this growth continuing
in the future, increasing its store count by 1,000 stores by 2020. The Company’s “Image Activation” campaign
has resulted in the Company reimaging 42% of its existing stores with plans to reimage 70% by 2020, leading
to improved customer satisfaction and increased foot traffic, and accordingly, a significant lift in sales.
4
LOCATION OVERVIEW
The property is located in Fort Wayne, IN, the northeastern part of the state, 18 miles west of the Ohio border and 50 miles south of the Michigan border. Fort Wayne, with a population exceeding 260,000, is the second
most populous city in the state after Indianapolis. The population of the larger Fort Wayne metropolitan area, consisting of not only Allen but also Wells and Whitley counties, is 419,000.
While manufacturing, deeply rooted in the local economy, employs a large percentage of the area’s workforce, other major sectors include distribution, transportation and logistics, healthcare, professional and business
services, and leisure and hospitality, each comprising over 10% of Fort Wayne’s diverse employment base.
As of 2017, Allen County, home to Fort Wayne, had a labor force exceeding 180,000 and an unemployment rate of 2.5%. Companies based in the city include Fortune 500 company Steel Dynamics, Franklin Electric, Vera
Bradley, Indiana Michigan Power, North American Van Lines, and MedPro Group. Fort Wayne is also a center for defense companies, including BAE Systems, Harris Corporation, and Raytheon Systems, and the healthcare
industry, served by ten medical centers belonging to one of two regional healthcare systems, Parkview Health and Lutheran Health.
469
DUNN MILL
W Wallen Rd
BROOKSIDE 469
37
ESTATES
69
Maplecrest Rd
33
St
on
lint
W Washington Center Rd
NC
30
2215
27 MAPLECREST ROAD
Lee
sb
urg
Rd
930
FORT WAYNE
CHILDREN’S ZOO
Landin Rd
E State Blvd
W State Blvd
N Clinton St
Lake Ave
69
FORT WAYNE
Illinois Rd
NEW 469
930 HAVEN
930
27
5
BRIERWOOD
HILLS Oxford St Moeller Rd
LEASE ABSTRACT
WENDY’S PROPERTIES PRIME LEASE
TENANT NAME: Wendy’s Properties, LLC
PREMISES: 2215 Maplecrest Road | Fort Wayne, IN
SIZE: ± 3,266 SF
ACREAGE: .81 AC
RENT COMMENCEMENT: February 15, 2016
TERM: 20 Years
ANNUAL RENT: $115,063
RENT ESCALATIONS: 10% every 5th year
The term of the Lease will be automatically extended for two (2)
OPTION TO EXTEND : successive periods of five (5) years each if Tenant does not elect to
terminate the Lease at the end of the Primary Term or any Option Period
OPTION RENTAL INCREASES: 10% rental increases each 5-year option period
REAL ESTATE TAXES: Tenant responsible for all real estate taxes
UTILITIES: Tenant responsible for all utility services used on the Leased Space
INSURANCE: Tenant responsible for all insurance
Tenant responsible for keeping the Leased Space in safe and good
REPAIRS:
condition and repair
Tenant may not, without the consent of Landlord, sublease the Premises
or assign this Lease or its rights under this Lease. In such event, Tenant
ASSIGNMENT & SUBLETTING:
will remain liable to pay all rent required under this Lease and to perform
all terms, covenants, and conditions under this Lease.
Years 1 – 5 $115,063
Years 6 – 10 $126,569
ANNUAL RENT:
Years 11 – 15 $139,226
Years 16 – 20 $153,148
Years 21 – 25 $168,463
RENEWAL OPTIONS:
Years 26 – 30 $185,310
6
TIMOTHY HALL JOHN MERRILL CRAIG CHILDS
Holliday Fenoglio Fowler, L.P. Holliday Fenoglio Fowler, L.P. Holliday Fenoglio Fowler, L.P.
Senior Managing Director License # : RB14036883 Analyst 1775 Pennsylvania Ave NW | 5th Floor
202.533.2521 Senior Managing Director 202.777.2315 Washington, DC 20006
thall@hfflp.com 317.632.7503 cchilds@hfflp.com
jmerrill@hfflp.comYou can also read
