Hardee's 15 YEARS REMAINING | ABSOLUTE NNN - LoopNet
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O F FERI NG M EM O RA ND U M
Hardee’s
BLOUNTVILLE | TENNESSEE
15 YEARS REMAINING | ABSOLUTE NNN
NO INCOME TAX STATE
3283 Highway 126 • Blountville, Tennessee
NON-ENDORSEMENT AND DISCLAIMER NOTICE CONFIDENTIALITY & DISCLAIMER The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written con- sent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical 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, PCBs or asbestos, the compliance with local, 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 offering memorandum 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. SPECIAL COVID-19 NOTICE All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due dili- gence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the con- tinuing 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 mar- keting 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. 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.
Hardee’s
BLOUNTVILLE | TENNESSEE
Exclusively Listed By
PA UL B IT ONT I
Senior Vice President Investments
Director - National Retail Group
Newport Beach, California
Cell 714.267.8582
Office 949.419.3246
paul.bitonti@marcusmillichap.com
License CA 01325076
J U S T I N A ND R EA SIA N
Investment Associate
National Retail Group
Newport Beach, California
Cell 831.682.2988
Office 949.419.3286
justin.andreasian@marcusmillichap.com
License CA 02080912
O F F I C E S N AT I O N W I D E A N D T H R O U G H O U T C A N A D A
WWW.MARCUSMILLICHAP.COM
INVESTMENT OVERVIEW
Marcus & Millichap is pleased to present the exclusive offering for a 3,794+\- freestanding Hardee’s restaurant on a 1.50-acre
lot in Blountville (Sullivan County), TN. The property is subject to a 15-year triple-net (NNN) lease with four, 5-Year Options.
The lease does present rental increases of 10% every five (5) years throughout the base term and all four option periods.
The property is well-positioned in the center of Blountville along Bristol Hwy (11,000 VPD) & right off Hwy 394 (20,000
VPD).
The Hardee’s is located less than a mile off the very busy Interstate-81, Exit 69 (39,000 VPD). This interchange is main traffic
route for nationally known Bristol Motor Speedway providing the subject property with a steady flow of traffic & consumers.
Notable retailers in the trade area include McDonalds, Burger King, Arby’s, Domino’s Pizza, Walgreens, Advance Auto, Dol-
lar General, Family Dollar, BP Gas & Convenience, Subway, and many other local restaurants.
Located on main route to Bristol Absolute Net Lease Investment, 10% Increases every 5 years.
Motor Speedway- 3rd largest No Landlord Responsibility During Primary & Option terms
Sports Venue in America holding
over 162,000 fans.
Capstone Restaurant Group
No State Income Tax Strong Demographics:
Operates and Franchises over 300+
in Tennessee Tri Cities MSA
Restaurants in 16 states
Population of 511,404
OFFERING SUMMARY
P R ICE GRO S S LE A S A BLE A RE A
$2,565,841 3,037 SF
L EA SE T ERM RE M AI N I N G YE A R BUI LT
15 Years 2016
CA P R ATE
LO T S I Z E
5.15% 1.54 Acre
P R ICE P ER FO O T NOI
$844.86 $132,140
3283 Highway 126 • Blountville, Tennessee
TENANT OVERVIEW
TENANT
Capstone Restaurant Group
N UMBER OF LOCATIONS
300 Restaurants
Capstone Restaurant Group is a collection of affiliated com-
G UARANTOR panies that operates and franchises almost 300 restaurants in 16
LBE Holdings, LLC (76 Units) states through a variety of brands that include Carl’s Jr, Hardee’s,
Taco Bell, Dunkin Donut and Pizza Hut Express. Our focus is on
Hardee’s and Carl’s Jr where we have almost 300 restaurants. We
were founded in 2010 with just 40 restaurants and through a series of
H EAD QU ARTE R
acquisitions and organic growth have climbed our way to the second
Boulder, Colorado largest franchisee in the CKE Restaurants system. Our Company is
one that wants to keep pushing for the summit, pushing for the pin-
nacle, pushing for that next peak. Thus, the name Capstone, which
means a stone fixed on top of something, typically a wall. We are
WEBS I T E
always trying to reach the top. We will always push ourselves to be
https://capstonerestaurants.com/
the best Company we can be; the best operator of restaurants in our
markets and in our franchise systems.
*LBE Holdings, LLC is a 76-Unit entity, and wholly
owned subsidiary of Capstone Restaurant Group
Founded in 1960 by Wilber Hardee and acquired by CKE Restau- rants Holdings, Inc. in 1997, Hardee’s® restaurants are located throughout the Southeastern and Midwestern United States. The brand built its reputation on a unique breakfast menu featuring Hardee’s mouth-watering Made from Scratch™ Biscuits. With a re- newed emphasis on premium quality, Hardee’s has taken the lunch/ dinner segment to the next level with its line of 100 percent Black Angus Beef Thickburgers™. Hardee’s has clearly established itself as a leader in the quick-service restaurant industry. Hardee’s® is a wholly-owned subsidiary of CKE Restaurants, Inc. Through its subsidiaries, CKE franchises and operates Hardee’s® and Carl’s Jr.® quick-service restaurants. The CKE System includes more than 3,100 locations in 42 states and 13 countries. Company Hardee’s Restaurants LLC (Subsidiary of CKE) Founded 1960 Locations 1,800+ Ownership Private (Roark Capital Group) Headquarter Franklin, TN www.Hardees.com
LEASE SUMMA RY Tenant Hardee’s Rent Increases 10% Every 5 Years Guarantor LBE Holdings, LLC Lease Type Absolute Net Lease Commencement 11/15/2016 Lease Expiration 11/15/2036 Lease Term 20 Years Years Remaining on Lease 15.2 Years Landlord Responsibility None Tenant Responsibility Absolute Net Option Four Five-year Options Right of First Refusal No *Rent is as of November 15th, 2021. Seller to credit the difference in rent to Buyer at close of escrow
RENT INCREASES
RENT SCHEDULE
YEAR ANNUAL RENT MONTHLY RENT RENT/SF CAP RATE
11/15/2021 - 11/14/2026 $132,140.80 $11,012 $3.63 5.15%
11/15/2026 - 11/14/2031 $145,354.88 $12,113 $3.99 5.66%
11/15/2031 - 11/14/2036 $159,890.36 $13,324 $4.39 6.23%
2036 - 2041 (Option 1)* $175,879.40 $14,657 $4.83 6.85%
2041 - 2046 (Option 2)* $193,467.34 $16,122 $5.31 7.54%
2046 - 2051 (Option 3)* $212,814.07 $17,735 $5.84 8.29%
2051 - 2056 (Option 4)* $234,095.48 $19,508 $6.42 9.12%
* Estimated at 10% every 5 Years
$300,000.00
10.00%
$234,095.48
$212,814.07
NET OPERATING INCOME
$193,467.34 7.50%
$200,000.00 $175,879.40
$159,890.36
$145,354.88
CAP RATE
$132,140.80
5.00%
$100,000.00
2.50%
$0.00 0.00%
11/15/2021 - 11/15/2026 - 11/15/2031 - 2036 - 2041 2041 - 2046 2046 - 2051 2051 - 2056
11/14/2026 11/14/2031 11/14/2036 (Option 1)* (Option 2)* (Option 3)* (Option 4)*
SALES COMPARABLES
6.00%
Avg: 4.92%
4.00%
Cap Rate
2.00%
0.00%
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3SALES COMPARABLES
SU BJE CT PRO P E R T Y 1 H A R D EE’ S - K NOX V IL L E
3283 Highway 126, Blountville, TN 150 N Cedar Bluff Rd, Knoxville TN
SALES PRICE $2,516,968 SALES PRICE $2,014,947
Sale Date Just Listed Sale Date 4/29/2021
Year Built 2016 Year Built 2014
GLA 3,037 SF GLA 3,037 SF
Price Per SF $828.77 Price Per SF $663.47
Cap Rate 5.15% Cap Rate 4.75%SALES COMPARABLES
2 TACOBE LL - C LI N TO N 3 B UR G ER K ING - M EM P HIS
2315 N Charles Seivers Blvd, Clinton TN 3951 New Covington Pike, Memphis TN
SALES PRICE $2,443,750 SALES PRICE $2,525,000
Sale Date 9/4/2020 Sale Date 3/19/2021
Year Built 2007/2019 Year Built 1995/2013
GLA 3,794 SF GLA 3,794 SF
Price Per SF $898.11 Price Per SF $665.52
Cap Rate 4.85% Cap Rate 5.17%SALES COMPARABLES
4 TACO BE LL - GAT E C I T Y 5 KFC - A L EX A ND R IA
247 Kane St, Gate City VA 6227 Little River Turnpike, Alexandria VA
SALES PRICE $2,376,500 SALES PRICE $2,300,000
Sale Date 6/10/2021 Sale Date 5/26/2021
Year Built 2018 Year Built 1968
GLA 2,271 SF GLA 3,241 SF
Price Per SF $873.39 Price Per SF $709.66
Cap Rate 5.10% Cap Rate 4.56%SALES COMPARABLES
6 WE NDY ’S - K N OX V I LLE 7 KFC & TACO B EL L
5011 Millertown Pike, Knoxville TN 139 Battlefield Blvd S, Chesapeake VA
SALES PRICE $2,700,000 SALES PRICE $1,999,920
Sale Date 5/10/2021 Sale Date 4/15/2021
Year Built 2021 Year Built 1996
GLA 2,224 SF GLA 2,692 SF
Price Per SF $1,214.03 Price Per SF $742.91
Cap Rate 5.00% Cap Rate 5.00%Less than 5 miles from Subject Property The Subject Property is located on THE DIRECT ROUTE from the I-81 interchange to Bristol Motor Speedway, a NASCAR short track venue located in Bristol, Tennessee. Bristol Motor Speedway is the Third largest sports venue in the United States and the 7th largest in the world, seating up to 162,000 people. Bristol is among the most popular tracks on the NASCAR schedule because of its distinct features, which include extraordinarily steep banking, an all-concrete surface, two pit roads, and stadium-like seating. It has also been named one of the loudest NASCAR tracks. The track is billed as the “World’s Fastest Half-Mile”. Fans from all 50 states and nearly two dozen other countries flock to Bristol Motor Speedway, built in 1961, for race weekends in both April and September when the track hosts NASCAR Sprint Cup, Xfinity, Camping World Trucks and Modified events.
Upcoming Event Schedule- Bristol Motor Speedway
Blountville, Tennessee
6/18 CHAOS AT THE COLOSSEUM ft.
DUDE PERFECT
7/1 thru 7/4 BTE WORLD FOOTBRAKE
M SA P OP U L ATI O N
CHALLENGE XV
7/9 Thru 7/11 MIKE BOS CHASIS CRAFT JR. 511,404
DRAGSTER NATIONALS
Blou nt vil l e i s part of the Ki ng sport–Bri stol (TN)–
7/12 Thru 7/17 NHRA JDRL EASTERN CONFERENCE
Brist ol ( VA) Metropol i tan Stati sti c al Area, whi c h i s a
FINALS
com p onent of the Johnson C i ty–Ki ng sport–Bri stol ,
7/23 Thru 7/25 DRE BRACKET SERIES #4
T N-VA Combi ned Stati sti c al Area – c ommonly known
7/31 THUNDER VALLEY STREET FIGHTS
a s t he “Tri -C i ti es” reg i on. Loc ated at the c rossroads
SATURDAY NIGHT
whe re t he paths of four states i ntertwi ne, Bri stol , i t-
8/5 Thru 8/8 BRISTOL CHEVY SHOW
se lf, is a twi n c i ty that straddl es the Tennessee/ Vi r-
8/14 ALABAMA 50TH ANNIVERSARY TOUR
ginia st a te l i ne, whi c h runs the l eng th of State Street
8/20 Thru 8/22 AMRA THUNDER VALLEY NITRO NA
in ou r his tori c downtown. Bri stol , rec ently named the
TIONAL & RALLY
Most Ch armi ng Town i n Ameri c a by S hopOnM ai n.
8/27 Thru 8/29 DER BRACKET SERIES #5
com , is uni q uely si tuated wi thi n a day’s drive of hal f
9/2 Thru 9/5 BTE WFC LABOR DAY 250K
t he Unit ed States’ popul ati on.
9/16TH UNOH 200PRESENTED BY OHIO
Brist ol offers an exc epti onal q ual i ty of l i fe, wi th l ow
LOGISTICSAND THE BUSH’S BEANS 200
cost of livi ng and moderately pri c ed real estate. Lo-
ARCA RACE
ca t e d in the foothi l l s of the Appal ac hi an Mountai ns,
9/17TH FOOD CITY 300
fou r d isti nc t seasons and a temperate c l i mate offer
9/18TH BASS PRO SHOPS NRA NIGHT RACE
a bu nd a nt opportuni ti es for outdoor rec reati on. Thi s
9/16TH UNOH 200PRESENTED BY OHIO
favora ble l oc ati on, whi c h boasts a sound i nfrastruc-
t u re a nd a popul ati on wi th a strong work ethi c , make
Brist ol a n extremely desi rabl e pl ac e to l ive.
You t ru ly feel l i ke you’ ve c ome home when you’re i n
Brist ol!Hard Rock Casino Bristol will fully open in 2023; however, the casino
plans to open a temporary gambling facility much sooner.
“The casino is going to create some significant economic increases
and that will be the bigger determinant of property value - both
residential and commercial.” -Housing Data Consultant Don Fenley
The resort will bring thousands of new jobs and pump millions of
dollars annually into Bristol’s economy. As more local residents get
jobs and stable, long-term career opportunities with the resort, as
employees or vendors, every sector of our regional economy will
benefit, including the real estate market.” - HARD ROCK HOTEL AND
CASINO BRISTOL SPOKESPERSON 9 miles from Subject Property
7 miles from Subject Property
The Pinnacle is a 250 acre mixed-use regional
development in Bristol, TN, located 7 miles away
from the Subject Property. Designed to accom-
modate well over 1,000,000 square feet of retail
space, The Pinnacle is anchored by Belk, Bass Pro
Shops and CarMax and is home to over 75 retail
and restaurant tenants, including Dick’s Sporting
Goods, Pinnacle 12 by Marquee Cinemas, Mar-
shalls, Michaels, ULTA, Bed Bath & Beyond, Old
Navy, and many more.DEMOGRAPHICS POPULATION 3 Miles 5 Miles 10 Miles 2025 Projection 9,964 22,842 103,952 2020 Estimate 9,688 22,357 102,385 2010 Census 9,245 21,603 100,702 2000 Census 8,949 20,560 97,724 HOUSEHOLD INCOME Average $68,243 $71,249 $67,808 Median $49,741 $52,040 $47,770 Per Capita $27,434 $29,727 $28,677 HOUSEHOLDS 2025 Projection 3,962 9,525 43,977 2020 Estimate 3,796 9,220 42,976 2010 Census 3,586 8,864 42,126 2000 Census 3,358 8,159 40,228 HOUSING Median Home Value $151,550 $152,158 $146,690 EMPLOYMENT 2020 Daytime Population 7,500 19,743 97,840 2020 Unemployment 1.85% 2.23% 3.21% Average Time Traveled (Minutes) 24 24 24 EDUCATIONAL ATTAINMENT High School Graduate (12) 36.50% 35.49% 33.91% Some College (13-15) 20.39% 20.14% 20.25% Associate Degree Only 8.33% 9.42% 9.12% Bachelor's Degree Only 13.11% 14.21% 14.39% Graduate Degree 6.26% 6.90% 7.88%
Hardee’s
BLOUNTVILLE | TENNESSEE
E X C L U S I V E LY L I S T E D B Y
PA UL BITO N TI J U ST I N A ND R EA SIA N
Senior Vice President Investments Investment Associate
Director - National Retail Group National Retail Group
Newport Beach, California Newport Beach, California
Cell 714.267.8582 Cell 831.682.2988
Office 949.419.3246 Office 949.419.3286
paul.bitonti@marcusmillichap.com justin.andreasian@marcusmillichap.com
License CA 01325076 License CA 02080912You can also read
