CHECKERS 15-YEAR NNN SALE-LEASEBACK - OFFERING MEMORANDUM 81 Northside Dr E, Statesboro, GA 30458
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VERY HIGH SALES | ABOVE CHECKERS NATIONAL AVERAGE
LOW RENT TO SALES RATIO | RELOCATION STORE
ADJACENT TO WALMART SUPERCENTER WITH HIGH TRAFFIC
SINCE OPENING
APRIL 14TH, 2020
THROUGH JAN 20TH,
2021 CHECKERS HAS
ACHIEVED $1.66M IN
SALES (LESS THAN 10
MONTHS)
Representative Photo
CHECKERS 15-YEAR NNN SALE-LEASEBACK
81 Northside Dr E, Statesboro, GA 30458
OFFERING MEMORANDUM
CONFIDENTIALITY & DISCLAIMER STATEMENT The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.
CONFIDENTIALITY & DISCLAIMER STATEMENT As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property. SPECIAL COVID-19 NOTICE All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)
OFFERING INCLUDES
PRICING & FINANCIAL ANALYSIS
• Investment Highlights
• Executive Summary
COMPANY OVERVIEW
TENANT OVERVIEW
PROPERTY OVERVIEW
• Aerial Maps
LOCATION OVERVIEW
• City Overview
• Economic Overview
• Demographic Analysis
$776 Million System Wide Sales
Over 841 Locations Nationwide
Established 1986
SINCE OPENING
APRIL 14TH, 2020
THROUGH JAN 20TH,
2021 CHECKERS HAS • LOCATION! LOCATION! LOCATION! WALMART OUTPARCEL
ACHIEVED $1.66M IN
SALES (LESS THAN 10
• BRAND NEW 15-YEAR NNN LEASE COMMENCES AT CLOSING
MONTHS) • SALE-LEASEBACK WITH LOW RENT TO SALES RATIO
• VERY HIGH SALES OF $1.66M IN LESS THAN 10 MONTHS
• CHECKERS FRANCHISEE SINCE 1993 WITH MULTIPLE LOCATIONS
• BRAND NEW CONSTRUCTION WITH LATEST CHECKER’S PROTOTYPE
• RELOCATION STORE IN STATESBORO
• LOCATED IN QUALIFIED OPPORTUNITY ZONE
• LOCATED ON MAIN RETAIL CORRIDOR
• DIRECTLY OFF OF VETERANS MEMORIAL PARKWAY
• GEORGIA SOUTHERN UNIVERSITY –20,000 STUDENTS
• HIGH TRAFFIC COUNTS
• WALKING DISTANCE FROM STATESBORO MALL
• OVER 30% POPULATION INCREASE SINCE 2000
• SINGLE TENANT NET LEASED ASSET
Marcus & Millichap is pleased to offer this Checkers restaurant
property paired with an absolute net long term lease with zero
landlord responsibilities.
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. © 2021,2022 Marcus & Millichap Activity ID ZAB0390071
RENT SCHEDULE MONTHLY RENT ANNUAL RENT
YEAR 1 $7,500 $90,000
YEAR 2 $7,500 $90,000
LIST PRICE $1,500,000 YEAR 3 $7,500 $90,000
CAP RATE 6.00% YEAR 4 $7,500 $90,000
YEAR 5 $7,500 $90,000
YEAR 6 $7,875 $94,500
INCREASES 5% Every 5 Years YEAR 7 $7,875 $94,500
BASE LEASE TERM 15 Years YEAR 8 $7,875 $94,500
OPTIONS Four 5-Year Options YEAR 9 $7,875 $94,500
LOT SIZE 0.56 ACRES YEAR 10 $7,875 $94,500
TYPE OF OWNERSHIP Fee Simple YEAR 11 $8,269 $99,225
TENANT Franchisee (Since 1993) YEAR 12 $8,269 $99,225
YEAR 13 $8,269 $99,225
YEAR 14 $8,269 $99,225
YEAR 15 $8,269 $99,225
NET OPERATING INCOME $90,000
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. © 2021,2022 Marcus & Millichap Activity ID ZAB0390071
Corporate HQ | Tampa, FL
Checkers Drive-In Restaurants, Inc., is one of the largest chains of double drive-thru restaurants in the United States. The OWNERSHIP PRIVATE
company operates Checkers and Rally's restaurants in 28 states and the District of Columbia. They specialize in hamburgers, FOUNDED 1985
hot dogs, french fries, and milkshakes.
OWNER OAK HILL CAPITAL
Checkers and Rally's had similar concepts, being almost exclusively drive-thru with very little seating. After the merger,
Rally's began redesigning its restaurants to follow the Checkers look. Today, Checkers and Rally's restaurants look nearly
NUMBER OF LOCATIONS 800+
identical, the only major difference being the name on the sign. In June 2006, the company went private through a merger HEADQUARTERED TAMPA, FLORIDA
with Taxi Holdings Corp., an affiliate of Wellspring Capital Management, a private equity firm. In 2014, Wellspring sold WEBSITE WWW.CHECKERS.COM / WWW.RALLYS.COM
Checkers to another private equity firm, Sentinel Capital Partners.
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. © 2021,2022 Marcus & Millichap Activity ID ZAB0390071Statesboro, Georgia
Statesboro is the largest city and county seat of Bulloch County, Georgia, United States, located in the southeastern part of the state. Statesboro is
home to the flagship campus of Georgia Southern University and is part of the Savannah–Hinesville–Statesboro Combined Statistical Area. As of COUNTY BULLOCH
2018, the Statesboro Micropolitan Statistical Area, which consists of Bulloch County, had an estimated population of 74,722. Statesboro is the
largest Micropolitan Statistical Area in Georgia. It is the largest city in the Magnolia Midlands Region.
COUNTY POPULATION 74,722
DENSITY 2,105/SQ MI
The city was chartered in 1803, starting as a small trading community providing basic essentials for surrounding cotton plantations. This drove the
ZIP CODES 30458-30461
economy throughout the 19th century, both before and after the U.S. Civil War. In 2017, Statesboro was selected in the top three of the national AREA CODE 912
America's Best Communities competition and was named one of nine Georgia "live, work, play" cities by the Georgia Municipal Association. WEBSITE WWW.STATESBOROGA.GOV
Statesboro's was named one of eight "Renaissance Cities" by Georgia Trend magazine.
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. © 2021,2022 Marcus & Millichap Activity ID ZAB0390071STATESBORO’S TOP EMPLOYERS ARE: Georgia Southern University – 7,129 Bulloch County Board of Education – 1,493 Bulloch County – 1,146 East Georgia Regional Medical Center – 800 In recent years, employment in Statesboro, GA grew at a rate of 2.35%, from 31.9k employees to 32.7k Walmart Distribution Center – 563 employees. The most common job groups, by number of people living in Statesboro, GA, are Sales & Related Walmart Supercenter – 525 Occupations (3,672 people), Office & Administrative Support Occupations (3,436 people), and Management Pineland Area Community Service Board – 500 Occupations (2,857 people). This chart illustrates the share breakdown of the primary jobs held by residents Viracon – 415 of Statesboro, GA. Great Dane – 480 Briggs & Stratton – 350 City of Statesboro – 314 H.A. Sack Company – 300 Ogeechee Technical College – 268 (Sept 2017) Lowe's Home Improvement – 200 Claude Howard Lumber – 130 WM Sheppard Lumber – 100 Braswell Foods – 99 Southeast Roofing Systems – 91 Georgia Living – 90 MD Building Products – 80 Brodie International – 78 East Georgia State College – 62 GAF – 40 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. © 2021,2022 Marcus & Millichap Activity ID ZAB0390071
HOUSEHOLDS BY EXPENDITURE 3 Miles 4 Miles 5 Miles
POPULATION 3 Miles 4 Miles 5 Miles Total Average Household Retail Expenditure $38,921 $42,483 $45,183
2023 Projection
Consumer Expenditure Top 10 Categories
Total Population 35,717 42,511 48,252
Housing $10,604 $11,462 $12,151
2018 Estimate
Transportation $8,066 $8,826 $9,397
Total Population 33,315 39,466 44,665
2010 Census Shelter $5,962 $6,384 $6,711
Total Population 31,874 37,410 42,245 Food $4,025 $4,325 $4,553
2000 Census Personal Insurance and Pensions $2,712 $3,102 $3,419
Total Population 25,486 29,489 33,146 Utilities $2,685 $2,902 $3,068
Current Daytime Population Health Care $2,310 $2,575 $2,807
2018 Estimate 54,489 59,207 62,567
Entertainment $1,433 $1,589 $1,716
HOUSEHOLDS 3 Miles 4 Miles 5 Miles
Apparel $1,018 $1,105 $1,185
2023 Projection
Household Furnishings and Equipment $939 $1,059 $1,170
Total Households 12,698 15,386 17,562
2018 Estimate POPULATION PROFILE 3 Miles 4 Miles 5 Miles
Total Households 11,695 14,102 16,056 Population By Age
Average (Mean) Household Size 2.40 2.44 2.46 2018 Estimate Total Population 33,315 39,466 44,665
2010 Census Under 20 29.66% 28.89% 28.52%
Total Households 11,323 13,499 15,313 20 to 34 Years 42.81% 40.91% 38.59%
2000 Census
35 to 39 Years 3.87% 4.29% 4.57%
Total Households 9,518 11,127 12,503
40 to 49 Years 6.70% 7.40% 8.01%
Occupied Units
50 to 64 Years 9.43% 10.46% 11.55%
2023 Projection 12,698 15,386 17,562
2018 Estimate 13,157 15,846 18,047 Age 65+ 7.54% 8.06% 8.72%
HOUSEHOLDS BY INCOME 3 Miles 4 Miles 5 Miles Median Age 22.90 23.54 24.25
2018 Estimate Population 25+ by Education Level
$150,000 or More 2.84% 3.29% 4.02% 2018 Estimate Population Age 25+ 14,147 17,903 21,384
$100,000 - $149,000 5.55% 6.66% 7.58% Elementary (0-8) 3.81% 3.97% 3.92%
$75,000 - $99,999 5.85% 7.04% 7.68%
Some High School (9-11) 9.16% 9.02% 8.74%
$50,000 - $74,999 12.23% 12.96% 13.36%
High School Graduate (12) 27.39% 27.40% 27.02%
$35,000 - $49,999 11.54% 12.13% 12.54%
Some College (13-15) 23.58% 23.12% 22.93%
Under $35,000 61.98% 57.92% 54.80%
Average Household Income $42,270 $45,699 $49,553 Associate Degree Only 5.78% 6.04% 6.09%
Median Household Income $25,453 $28,742 $31,080 Bachelors Degree Only 16.87% 16.75% 16.87%
Per Capita Income $16,857 $18,086 $19,375 Graduate Degree 12.39% 12.66% 13.42%
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. © 2021,2022 Marcus & Millichap Activity ID ZAB0390071Population Race and Ethnicity
In 2019, the population in your selected geography is 33,315. The population has The current year racial makeup of your selected area is as follows: 51.84%
changed by 30.72% since 2000. It is estimated that the population in your area will White, 41.57% Black, 0.16% Native American and 2.19% Asian/Pacific Islander.
be 35,717.00 five years from now, which represents a change of 7.21% from the Compare these to US averages which are: 70.20% White, 12.89% Black, 0.19%
current year. The current population is 49.40% male and 50.60% female. The Native American and 5.59% Asian/Pacific Islander. People of Hispanic origin are
median age of the population in your area is 22.90, compare this to the US average counted independently of race.
which is 37.95. The population density in your area is 1,178.51 people per square
mile. People of Hispanic origin make up 3.91% of the current year population in your
selected area. Compare this to the US average of 18.01%.
Households
There are currently 11,695 households in your selected geography. The number of
households has changed by 22.87% since 2000. It is estimated that the number of Housing
households in your area will be 12,698 five years from now, which represents a
The median housing value in your area was $135,609 in 2019, compare this to
change of 8.58% from the current year. The average household size in your area is
the US average of $201,842. In 2000, there were 3,398 owner occupied housing
2.40 persons.
units in your area and there were 6,120 renter occupied housing units in your
area. The median rent at the time was $346.
Income
In 2019, the median household income for your selected geography is $25,453,
compare this to the US average which is currently $58,754. The median household Employment
income for your area has changed by 17.91% since 2000. It is estimated that the In 2019, there are 21,284 employees in your selected area, this is also known as
median household income in your area will be $29,137 five years from now, which the daytime population. The 2000 Census revealed that 59.08% of employees
represents a change of 14.47% from the current year. are employed in white-collar occupations in this geography, and 40.84% are
employed in blue-collar occupations. In 2019, unemployment in this area is
The current year per capita income in your area is $16,857, compare this to the US 8.37%. In 2000, the average time traveled to work was 19.00 minutes.
average, which is $32,356. The current year average household income in your
area is $42,270, compare this to the US average which is $84,609.
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. © 2021,2022 Marcus & Millichap Activity ID ZAB0390071John Leonard Atlanta Lic.# 252904 P: 0232750
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