Culver's - OFFERING MEMORANDUM - 11371 Oldenburg Lane Galena, IL 61036 - LoopNet
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OFFERING
MEMORANDUM
Culver’s
11371 Oldenburg Lane Galena, IL 61036
NON-ENDORSEMENT & DISCLAIMER NOTICE
CONFIDENTIALITY & DISCLAIMER
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 a service
mark of Marcus & Millichap Real Estate Investment Services, Inc.
© 2018 Marcus & Millichap. All rights reserved.
NON-ENDORSEMENT NOTICE
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.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT THE LISTING
AGENTS FOR MORE DETAILS.
OFFICES THROUGHOUT THE U.S. AND CANADA
www.marcusmillichap.com
CULVER’S
GALENA, IL
Damien A. Yoder
First Vice President - Investments
Indianapolis, IN
Direct: 317-218-5314
damien.yoder@marcusmillichap.com
Madison Shurtz
Senior Associate
Indianapolis, IN
Direct: 317-218-5366
madison.shurtz@marcusmillichap.com
Illinois Broker of Record – Steven Weinstock
License #: 471.011175
CULVER’S
GALENA,IL
TABLE OF CONTENTS
01 02
EXECUTIVE SUMMARY / / 5 PROPERTY DESCRIPTION/ / 8
03 04
FINANCIAL ANALYSIS // 16 ADDITONAL PHOTOS // 18
05
MARKET OVERVIEW // 26
SHO P P E S
CULVER’S
A T I R V I N G P A R K & B R O A D W AY
C H IC AG O , I L L I NO I S
GALENA, IL
SECTION 1
Executive Summary
OFFERING SUMMARY
SUMMARY OF TERMS
O F F E R I NG
SU M M A R Y
OFFERING SUMMARY
CULVER’S – GALENA, IL.
Total Price
Cap Rate
$2,500,000 6.80%
Gross Leasable Area 4,287 +/- SF
Lot Size 1.92 Acres
Price per SF $583.16
Number of Buildings 1
Lease Type Absolute NNN
Year Built/Renovated 1999/2013
Occupancy 100%
Annual Rent $170,000
6 PROPERTY DESCRIPTIONSUMMARY OF TERMS
INTEREST OFFERED
Fee simple interest in the Culver’s, a 4,287 +/- square-foot, single tenant absolute net
leased property located at 11371 Oldenburg Lane Galena, IL 61036.
TERMS OF SALE
The Culver’s in Galena, Illinois is offered at $2,500,000 all cash to seller, free and clear of
debt.
PROPERTY TOURS
Prospective purchasers are encouraged to visit the subject property prior to submitting offers.
However, all property tours must be arranged with the listing agents. At no time shall the
tenants, on-site management or staff be contacted without prior approval.
PROPERTY DESCRIPTION. 7CULVER’S
GALENA, IL
SECTION 2
Property Description
PROPERTY DESCRIPTION
EXECUTIVE SUMMARY
TENANT PROFILE
LOCAL AND REGIONAL MAPS
AERIALSPROPERTY DESCRIPTION
Number of Units 1
Acreage 1.92 Acres
Exterior Construction Masonry
Gross Leasable Area 4,287
Roof Standing Seam Metal Roof
Outdoor Patio Yes
Drive Thru 1 Total
Parcel Number 22-100-303-00
9 PROPERTY DESCRIPTIONCULVER’S
11371 OLDENBURG LANE GALENA, IL 61036
Investment Overview
Marcus & Millichap is proud to present the fee simple interest in the Culver's restaurant located at
11371 Oldenburg Lane, Galena, Illinois.
The freestanding restaurant was built-to-suit for Culver's in 1999 and consists of 4,287 square feet,
positioned on 1.92 acres in the heart of the retail corridor in Galena. Culver’s is located ½ mile from Walmart
Supercenter. The property is owned by a successful multi-unit franchisee who will sign a new 15-year lease at
close of escrow, with four, five-year options at the tenants choice. The lease will be absolute net in nature,
starting at $170,000 per year. An incoming landlord will have zero management responsibility. The tenant offers
ten percent rental escalations every five years throughout the base lease term and options, which gives a buyer a
strong hedge against inflation.
Culver's was remodeled in 2013 and the operator plans to invest some of the proceeds into another
substantial exterior and interior remodel, which has proven to increase sales further. The Galena franchisee
reports increasing store sales at this location and the Culver's brand has reported increasing year over year sales
across the company. Founded in 1984 in Sauk City, WI, Culver's is a privately owned & operated quick service
restaurant that has grown to 710 locations in 24 states throughout the U.S. Forbes named Culver's the #1
franchise to invest in in 2016.
Market Snapshot
Culver's is strategically located with excellent frontage and visibility to U.S. Highway 20 (Spring
Street), which is the main east to west retail thoroughfare. The restaurant offers a drive thru and is less than .5
miles from Walmart Supercenter and 1 mile from the Galena High School and Middle School. It is located near
multiple hotels such as Stoney Creek Inn, Ramada by Wyndham, Belle Aire Mansion, Ryan Mansion, Country
Inn & Suites and more. Galena is located 15 miles southeast of Dubuque, IA, 86 miles northeast of Cedar Rapids,
IA, 91 miles southwest of Madison, WI, 159 miles west of Milwaukee, 164 miles northwest of Chicago, and 216
miles northeast from Des Moines, IA. Galena is known for its well preserved 19th Century architecture, ski and
golf resorts, and quaint downtown area. Galena is a popular winter tourist destination hosting well over 1 Million
visitors each year.
10 EXECUTIVE SUMMARYINVESTMENT HIGHLIGHTS
Freestanding Culver’s Restaurant | New 15 Year Absolute NNN Lease at Guaranteed by Successful Multi-Unit Franchisee | Tenant Has a 19
Close of Escrow – Zero Landlord Responsibilities Year Operating History at This Location | Tenant Invested in Interior
Remodel in 2013 and Plans to Invest Part of Proceeds to Re-Image
Excellent Location Adjacent to Walmart Supercenter | 1.92 Acres with
Direct Frontage and Easy Access to U.S. Route 20 | Main Retail Culver’s is a Rapidly Growing Concept with Increasing Year Over
Thoroughfare of Galena, IL Year Sales Across the U.S. | Culver’s Has Grown to 720 Locations in
25 States and is the #1 Franchise to Invest In per Forbes 2016
Drive Through Location with Increasing Store Sales – See Agent for
Details Long Term Lease and Excellent Hedge Against Inflation | 10% Rental
Increases Every Five Years Including the Base Lease Term
Galena was Named in “9 Cutest Small Towns in America” by Marriot
Traveler and “Top 10 Best Small Towns” by Fodor’s in 2017 Galena, IL is a Popular Tourist Destination Hosting Over One Million
Visitors Each Year | Galena is Home to Over 16 Hotels and Resorts
Culver’s Growth Excellent Hedge Against Inflation Beneficial Location
Culver’s has a Rapidly Growing Concept and Location Benefits from Excellent
10% Rental Increases Every Five Years
Increasing Sales. Culver’s has Grown to 720 Frontage to U.S. Route 20 with 14,200
Including the Base Term
Locations in 25 States and is the #1 Franchise VPD and is Located 15 Miles Southeast
to Invest in per Forbes 2016 of Dubuque, IA
EXECUTIVE SUMMARY 11TENANT PROFILE
11371 OLDENB UR G LANE, GALENA, IL 61036
Tenant Headquarters Information
Founded in 1984 in Sauk City, WI,
Culver’s is a privately owned &
operated quick service restaurant.
Culver’s has 720 locations in 25
throughout the country, but the
majority of the restaurants are located
in the Midwest. Culver’s current
franchising strategy is to add around
40 new stores per year. In October of
Prairie du Sac, WI 2017, Culver’s sold a minority share to
Roark Capital Group out of Atlanta –
Roark Capital Group is private equity
firm with $12B+ in equity capital
raised focused on leveraged buyouts of
middle-market companies such as
restaurants, retail healthcare and
business sectors. The operator of this
location is a long-time successful
multi-unit owner.
TENANT PROFILE 12LOCAL MAP
CULVER’S
GALENAREGIONAL MAP CULVER’S GALENA
MARKET AERIAL
SHO PPES
CULVER’S
A T I R V I N G P A R K & B R O A D W AY
C HGI C
AALGEO N
,IA
L L, I IN L
OI S
SECTION 3
Financial Analysis
FINANCIAL OVERVIEWFINANCIAL OVERVIEW // CULVER’S, GALENA, IL
THE OFFERING LEASE SUMMARY
Property Culver’s Property Subtype Net Leased Restaurant
Property Address 11371 Oldenburg Lane Galena, IL 61036
Tenant Culver’s
Price $2,500,000
Rent Increases 10% Every 5 Years
Capitalization Rate 6.80%
Tenant Multi-Unit Franchisee with Personal Guarantee
Price/SF $583.16
Lease Type Absolute NNN
PROPERTY DESCRIPTION
Lease Commencement Close of Escrow
Year Built/Renovated 1999/2013
Lease Expiration Close of Escrow + 15 Years
Gross Leasable Area 4,287
Type of Ownership Fee Simple Lease Term 15 Years
Lot Size 1.92 Acres Term Remaining on Lease 15 Years
Renewal Options (4) 5-Year with 10% Increases
ANNUALIZED OPERATING INFORMATION Landlord Responsibility None
INCOME Tenant Responsibility Roof, Structure, HVAC, Life Systems Utilities, CAM, Taxes, Insurance
Net Operating Income $170,000 Right of First Refusal/Offer No
LEASE SUMMARY
YEAR ANNUAL RENT MONTHLY RENT RENT/SF CAP RATE
Years 1-5 $170,000 $14,167 $39.65 6.80%
Years 6-10 $187,000 $15,583 $43.62 7.48%
Years 11-15 $205,700 $17,142 $47.98 8.23%
Option 1 $226,270 $18,856 $52.78 9.05%
Option 2 $248,897 $20,741 $58.06 9.96%
Option 3 $273,787 22,816 $63.86 10.95%
Option 4 $301,166 $25,097 $70.25 12.05%SHO P P E S
CULVER’S
A T I R V I N G P A R K & B R O A D W AY
C H IC AG O , I L L I NO I S
GALENA,IL
SECTION 4
Additional PhotosSHO P P E S
CULVER’S
SHO
UNITED P P E SOF
RENTALS
A T I R V I N G P A R K & B R O A D W AY
OSHKOSH
A T I R V I N G P A R K & B R O A D W AY
C H IC AG O , I L L I NO I S
C H IC AG O , I L L I NO I S
G AO L E KNOAS ,H , I W
S H LI
SECTION 5
Market Overview
MARKET HIGHLIGHTS
DEMOGRAPHICSGALENA HIGHLIGHTS
GALENA, IL
OVERVIEW
The City of Galena is located in Northwest Illinois
about 15 miles from the Illinois/Iowa state line. The rolling
hills, history, 19th century architecture, and opportunities for
year round outdoor recreation attract nearly a million
visitors per year. Galena is the largest city and the county
seat of Jo Daviess County. 581 acres of the city (85%) is
listed on the National Register of Historic Places as the
Galena Historic District. The city is named for the mineral
galena, which was in the ore that formed the basis for the
region’s early mining economy.
CITY HIGHLIGHTS
THE SCENERY
The Glaciers that flattened most of North America
during the ice age did not encroach on Galena. The
hills, valleys, and bluffs remain intact making it one
of the most scenic areas in the Midwest.
EASY ACCESS TO TRANSPORTATION
Galena is 20 miles from Dubuque Regional
Airport and is right off US Hwy 20 W,
providing easy access to transportation in the
air and on the ground.
THE HISTORY
The city of Galena is rich in history with 85% of the
city listed on the National Register of Historic
Places. Most of the city is built using 19th century
architecture.PROPERTY NAME
DEMOGRAPHICS PRICING LOCATION
PRICING AND
AND TENANT OVERVIEW
SUMMARY
VALUATION
VALUATION MATRIX
DEMOGRAPHICS
MATRIX
MARKETING TEAM
CREATED ON FEBRUARY 3, 2020
3 Miles 5 Miles 10 Miles
POPULATION
2023 Projection 4,590 5,716 16,922
2018 Estimate 4,470 5,549 16,354
2010 Census 4,551 5,642 16,472
2000 Census 4,492 5,545 15,407
INCOME
Average $70,667 $71,995 $75,361
Median $55,713 $57,285 $60,635
Per Capita $30,527 $30,469 $31,065
HOUSEHOLDS
2023 Projection 1,977 2,412 6,982
2018 Estimate 1,917 2,334 6,690
2010 Census 1,986 2,411 6,803
2000 Census 1,888 2,275 6,018
HOUSING
$171,77 $167,62
2018 $170,131
4 1
EMPLOYMENT
2018 Daytime
5,343 6,277 14,489
Population
2018
5.36% 5.54% 4.69%
Unemployment
2018 Median Time
18 19 21
Traveled
RACE & ETHNICITY
White 93.14% 93.94% 96.06%
Native American 0.07% 0.07% 0.04%
African American 0.69% 0.72% 0.59%
Asian/Pacific
0.81% 0.70% 0.68%
Islander
28 DEMOGRAPHICSCULVER’S
GALENA, IL
Damien A. Yoder
First Vice President - Investments
Indianapolis, IN
Direct: 317-218-5314
damien.yoder@marcusmillichap.com
Madison Shurtz
Senior Associate
Indianapolis, IN
Direct: 317-218-5325
madison.shurtz@marcusmillichap.com
Illinois Broker of Record – Steven
Weinstock
License #: 56163-90You can also read
