Carl's Jr. Ground Lease - Sacramento, CA OFFERING MEMORANDUM
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OFFERING MEMORANDUM
Carl’s Jr. Ground Lease
Sacramento, CA
www.preservewestcapital.com
TABLE OF CONTENTS
HIGHLIGHTS 1 SHOPPING CENTER PHOTOS 5
PROPERT Y OVERVIEW 2 AERIALS 6
TENANT INFORMATION 3 ABOUT THE AREA 8
SITE PL AN 4 DEMOGRAPHICS 10
Disclaimer Michael Maffia (“Broker”) has been retained on an exclusive basis to market the property described herein (“Property”). Broker
has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed information (“Material”) for
Michael Maffia
Managing Partner
the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information
may be made available upon request following the mutual execution of a letter of intent or contract to purchase between 415.373.4060
the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon mike@preservewc.com
your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial
CA RE License #01340853
references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction
and such other matters as the Seller deems appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition Putnam Daily
of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person
Partner - Brokerage Division
without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the
information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller 415.445.5107
and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation putnam@preservewc.com
and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, CA RE License #01750064
members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such
pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must
independently confirm the accuracy of the projections contained in the pro forma.
Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied,
to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers
a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a
purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with
respect thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
www.preservewestcapital.com
PROPERT Y HIGHLIGHTS
Lease
• Brand New 20-Year Absolute NNN Ground Lease to 65+ Unit
T) Carl’s Jr. Franchisee
AAD
,000 • Scheduled 10% Rental Increases Every Five Years in Primary
(123 Term and First Option Period
• Operator’s Franchise Entities Comprise 3rd Largest Franchisee
in Carl’s Jr. System
• 2018 Construction with Drive-Thru Component
SOUTH LAND PARK
Property
• Recently Completed Major Renovation to Established
Neighborhood Center with 60-Year Operational History
k Dr • Co-Tenancy Includes Bel Air, Starbucks, Sherwin Williams,
nd Par O’Reilly, Round Table, CalFit, Chase and many other Excellent
S La
Tenants
• Major Renovation including Interior Tenant Renovations
Totaling nearly $15M
Flo Location
rin
Rd
(33 • Located on Hard Corner to a Signalized Intersection to a 140K SF
,46 Grocery Anchored Center
5A
AD Excellent Access and Visibility in Prominent Retail Corridor &
T) •
Adjacent to I-5 Junction
• Combined AADT of 156,465
• Robust Demographics in Surrounding Area
• Population of 277,937 within 5 Mile Radius
• Average Household Income of $81,617 within 3 Miles
PRESERVE WEST CAPITAL | 1
PROPERT Y INFORMATION
Location PRICE
The property is located at 1315 Florin Road in Sacramento, California.
Lot Size
$2,635,000
Approximately 0.55 acres, or 23,800 square feet.
4.25% Return
The improvements have been constructed and are owned by Tenant; only the
Land is for sale.
Net Annual Income
Improvements
Construction was completed in November 2018 of an approximately 2,727 Years Annual Rent Return
square foot restaurant for Carl’s Jr. with a drive-thru component.
1-5 $112,000 4.25%
6-10 $123,200 4.68%
Ground Lease
Leased to AMS Restaurants, LLC for 20 years from November 15, 2018 11-15 $135,520 5.14%
through November 30, 2038 at an initial annual rent of $112,000. There are
16-20 $149,072 5.66%
two (2) ten-year options to renew the lease. Rent is to increase by 10% every
five years throughout the primary term and in the first option period. Rent for
20-25 (Option 1) $163,979 6.22%
the second option period shall be set at fair market value. The lease is net with
tenant responsible for all taxes, insurance, maintenance, and proportionate 26-30 (Option 1) $180,377 6.85%
share of common area maintenance for the shopping center, including capital
expenditures for repair or replacement of common areas, management fee, and 31-40 (Option 2) FMRV n/a
supervision fee equal to 10% of CAM casts.
The improvements have been constructed and are owned by Tenant; only the
Land is for sale. Financing
This property will be delivered free and clear of permanent financing.
Parking
There is ample parking available on site and throughout the shopping center.
Right of First Refusal
Tenant shall have the right of first refusal to purchase the property on the
same terms and conditions as a bona fide third party offer within ten (10)
business days of receiving Landlord’s written notice of such an offer.
PRESERVE WEST CAPITAL | 2
ABOUT THE TENANT
Carl’s Jr. is a fast food restaurant which serves burgers,
milkshakes, breakfast items, and other fast food and novelty
food items. There are approximately 1,500 Carl’s Jr. restaurants
nationwide, and the company was ranked #15 in Entrepreneur
Magazine’s annual Franchise 500 rankings for 2018, a substantial
improvement from its rank of #29 the year prior. The brand is a
subsidiary of CKE Restaurants, which also operates the Hardee’s,
Green Burrito, and Red Burrito brands. In November 2013, Roark
Capital Group, an Atlanta based private equity firm, acquired CKE
Restaurant Holdings for $1.65-1.75 billion; exact terms of the
The parent company of AMS
acquisition were not disclosed.
AMS Restaurants, LLC, the lease entity, is a Carl’s Jr. franchisee
which operates more than 41 Carl’s Jr. locations in the Sacramento
Restaurants, the lease entity, Region. Marshall Raymer and Sam Wong, the operators of AMS
Restaurants, operate three additional franchisee entities, Womar
is the 3rd largest Carl’s Jr. Incorporated, Brentwood Star, LLC, and CJB Restaurants, LLC,
which together with AMS Restaurants operate 65 Carl’s Jr.
Restaurants with total sales exceeding $90 million and constitute
franchisee with total sales the third largest franchisee in the Carl’s Jr. system.
exceeding $90 million.
PRESERVE WEST CAPITAL | 3
SITE PLAN
ABC
BICYCLE PARKING:
2 SHORT-TERM BAKERY
FLORIN
LICHINE’S NAILS & SPA
E
IV LIQUOR & DELI
R
D
1,672 SF
RK
PA
CUT N GO
ND
LA
Chick Star
H
OPTOMETRIST
UT
SO
BICYCLE PARKING:
4 SHORT-TERM
3 LONG TERM
BICYCLE PARKING:
6 SHORT-TERM
2 LONG TERM
T.E.
BICYCLE PARKING:
4 SHORT-TERM
2 LONG TERM
OUTDOOR OUTDOOR
SEATING SEATING
T.E. NEW 24” WIDE
CONCRETE MEDIAN
FUTURE
PAD
POINT OF
SHOPS A SHOPS B PICK-UP
WINDOW
ORDERING
PICK-UP
NEW 24” WIDE WINDOW
CONCRETE MEDIAN
FLORIN ROAD
SOUTH LAND PARK SHOPPING CENTER
AERIAL WEST VIEW
RIVERSIDE PLAZA II
SACRAME
NTO R
IV ER
PROMENADE
POCKET LAKE
School of GREENHAVEN
Engineering
JOHN F. KENNEDY
& Sciences HIGH SCHOOL
REICHMUTH
PARK
LAKE CREST VILLAGE
PONY EXPRESS
ELEMENTARY
)
ADT SACRAMENTO
0 A EXECUTIVE
3, 00 AIRPORT
( 12 r
kD
d Par BING MALONEY
S Lan GOLF COURSE
Flo
rin
Rd
(3
) 3 ,46
A DT
3A 5A
,7 8 AD
(16 T)
AERIAL NORTH VIEW DOWNTOWN
SACRAMENTO
LAND PARK
SACRAMENTO SACRAMENTO
ZOO CITY COLLEGE
RIVER
SACRAMENTO
SOUTH
LAND PARK
DT)
AA
0 00
3,
REICHMUTH
2
)
PARK
(1
DT
RIVERSIDE
AA
3 SACRAMENTO
, 78 EXECUTIVE
6
(1 AIRPORT
PONY EXPRESS BING MALONEY
ELEMENTARY GOLF COURSE
Florin Rd (33,4
65 AADT)
Dr
ark
dP
an
SL
ABOUT THE AREA
General Overview
Sacramento (population 485,199) is the seat of Sacramento County and
the capitol of California. Located at the confluence of the Sacramento
and American rivers in California’s Central Valley, Sacramento is the
sixth largest city in California and has been named “America’s Most
Diverse City.” The city is served by several major highways: Interstate
80, a major east-west arterial, connects Sacramento to San Francisco
in the West and Reno in the East. Interstate 5 connects the city to
Redding and Oregon in the North and to the Central Valley in the south.
SITE CA State Route 99 spans nearly the entire length of the Central Valley,
connecting Sacramento to Fresno, Bakersfield, Merced, Stockton, and
Chico, among others. Amtrak provides commuter rail service to the San
Francisco Bay Area, Southern California, Oregon, Nevada, Washington,
and the Midwest, and is the second busiest Amtrak station in California.
The Sacramento International Airport provides air transportation to the
region, serving more than 10 million passengers in 2016.
Development activity in the Sacramento region abounds, with more
than $1 billion invested in development and redevelopment activity
alone since 2008. Major projects include The Railyards, the largest
infill project in the U.S, a 244-acre mixed use development just north
of Downtown Sacramento slated to include more than 1 million square
feet of retail, 6,000 residential units, and 2.3 million square feet of office
space. Other major projects include Downtown Commons, a 1 million
square foot mixed-use project featuring retail, office, residential, and
hotel components, expected to be completed by early 2019, The Hardin,
a $60.1 million experience-oriented lifestyle mixed-use development,
The Docks, a proposed 1.3 million square foot mixed-use project along
the Sacramento River which would feature 1,100 residential units and
more than 500,000 square feet of office space, and more. Recently
completed projects include Delta Shores, a 800-acre master planned
development in the southern part of the city on one of the last major
undeveloped pieces of land in Sacramento featuring 5,200 residential
units, 1.3 million square feet of retail, and 250,000 square feet of hotel
and commercial uses.ABOUT THE AREA
Site Information
The subject property is centrally located with excellent access and
visibility along Florin Road (33,465 AADT) adjacent to its junction with
I-5 (123,000 AADT). The site benefits from robust demographics with
a population of 277,937 within a five mile radius. Average household
income within three miles of the site is $81,617, and median home value
within one mile of the site exceeds $386,000.
The property benefits from a strong retail location outparcel to the
South Land Park retail center, a recently-redeveloped shopping center
anchored by Bel Air with additional tenants including Starbucks, Chase
Bank, O’Reilly Auto Parts, and more. The center has recently undergone
extensive façade and landscaping upgrades and introduced new tenants
to the area, drawing significant additional traffic to the site. Other major
retail centers neighboring the property include Lake Crest Village,
anchored by Nugget Markets and Big 5; Southgate Plaza, with major
SITE tenants including 99 Ranch, Walmart Neighborhood market, and more;
Florin Square Shopping Center, anchored by Seesawan Supermarket;
Florin Plaza, anchored by Mi Rancho Supermarket; and more. Other
major retail tenants neighboring the site include Smart & Final Extra!,
CVS, Walgreens, The Home Depot, Raley’s, Rite Aid, and more.
SITEDEMOGRAPHICS
1315 Florin Rd | Sacramento, CA 95831
Major Employers - # of
Sacramento, CA Employees
State of California 74,462
Sacramento County 12,514
2018 POPULATION AVERAGE HOME VALUE AVG. HOUSEHOLD INCOME
277,937
Kaiser Permanente 10,517
$410,515 $81,617 UC Davis Health System 10,467
U.S. Government 10,322
Sutter Health 9,911
Population Summary 1 Mile 1 3 Miles 5 Miles
Dignity Health 8,039
2010 Total Population 16,233 108,257 260,213
Intel Corporation 6,000
2018 Total Population 16,815 114,400 277,937
Apple, Inc. 5,000
2023 Total Population 17,388 119,353 291,018
2018-2023 Annual Rate 0.67% 0.85% 0.92% Elk Grove Unified School District 4,620
Average Household Income
2018 $76,579 $81,617 $74,697
2023 $88,004 $95,662 $87,180
Average Home Value
2018 $410,515 $404,235 $375,928
2023 $471,718 $465,955 $435,745
PRESERVE WEST CAPITAL | 10Michael Maffia Putnam Daily Managing Partner Partner - Brokerage Divison 411 Borel Avenue, Suite 650 415.373.4060 415.445.5107 San Mateo, CA 94402 mike@preservewc.com putnam@preservewc.com D 415.373.4063 F 415.737.6018 CA RE License #01340853 CA RE License #01750064 www.preservewestcapital.com
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