OFFERING MEMORANDUM - BURGER KING - NNNPro
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BURGER KING
EXCLUSIVE NET-LEASE OFFERING
OFFERING
MEMORANDUM
940 E Commerce Boulevard, Slinger, WI 53086
Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of Buyer is responsible for conducting his/her own investigation of all regarding these matters and makes no warranty or representation
Net Leased property as follows: matters affecting the intrinsic value of the property and the value whatsoever regarding the accuracy or completeness of the
of any long-term lease, including the likelihood of locating a information provided. All potential buyers must take appropriate
The information contained in this Marketing Brochure has been replacement tenant if the current tenant should default or abandon measures to verify all of the information set forth herein.
obtained from sources we believe to be reliable. However, Marcus the property, and the lease terms that Buyer may be able to
& Millichap has not and will not verify any of this information, nor negotiate with a potential replacement tenant considering the NON-ENDORSEMENT NOTICE
has Marcus & Millichap conducted any investigation regarding location of the property, and Buyer’s legal ability to make alternate
these matters. Marcus & Millichap makes no guarantee, warranty use of the property. Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”)
or representation whatsoever about the accuracy or completeness is not affiliated with, sponsored by, or endorsed by any commercial
of any information provided. By accepting this Marketing Brochure you agree to release Marcus tenant or lessee identified in this marketing package. The presence
& Millichap Real Estate Investment Services and hold it harmless of any corporation’s logo or name is not intended to indicate or
As the Buyer of a net leased property, it is the Buyer’s responsibility from any kind of claim, cost, expense, or liability arising out of your imply affiliation with, or sponsorship or endorsement by, said
to independently confirm the accuracy and completeness of all investigation and/or purchase of this net leased property. corporation of M&M, its affiliates or subsidiaries, or any agent,
material information before completing any purchase. This product, service, or commercial listing of M&M, and is solely
Marketing Brochure is not a substitute for your thorough due CONFIDENTIALITY AND DISCLAIMER included for the purpose of providing tenant lessee information
diligence investigation of this investment opportunity. Marcus & about this listing to prospective customers.
Millichap expressly denies any obligation to conduct a due diligence The information contained in the following Marketing Brochure is
examination of this Property for Buyer. proprietary and strictly confidential. It is intended to be reviewed ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE
only by the party receiving it from Marcus & Millichap and should CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
Any projections, opinions, assumptions or estimates used in this not be made available to any other person or entity without the
Marketing Brochure are for example only and do not represent the written consent of Marcus & Millichap. By acceptance of this SPECIAL COVID-19 NOTICE
current or future performance of this property. The value of a net information, the recipient agrees to treat this information as strictly
leased property to you depends on factors that should be evaluated confidential, not to use it for any purpose other than in connection All potential buyers are strongly advised to take advantage of their
by you and your tax, financial and legal advisors. with an analysis of the potential sale of the property from the opportunities and obligations to conduct thorough due diligence
owner as contemplated herein and that the owner of the property and seek expert opinions as they may deem necessary, especially
Buyer and Buyer’s tax, financial, legal, and construction advisors may enforce these restrictions. This Marketing Brochure has been given the unpredictable changes resulting from the continuing
should conduct a careful, independent investigation of any net prepared to provide summary, unverified information to COVID-19 pandemic. Marcus & Millichap has not been retained to
leased property to determine to your satisfaction with the prospective purchasers, and to establish only a preliminary level of perform, and cannot conduct, due diligence on behalf of any
suitability of the property for your needs. interest in the subject property. The information contained herein prospective purchaser. Marcus & Millichap’s principal expertise is
is not a substitute for a thorough due diligence investigation. in marketing investment properties and acting as intermediaries
Like all real estate investments, this investment carries significant Marcus & Millichap has not made any investigation, and makes no between buyers and sellers. Marcus & Millichap and its investment
risks. Buyer and Buyer’s legal and financial advisors must request warranty or representation, with respect to the income or expenses professionals cannot and will not act as lawyers, accountants,
and carefully review all legal and financial documents related to the for the subject property, the future projected financial performance contractors, or engineers. All potential buyers are admonished and
property and tenant. While the tenant’s past performance at this or of the property, the size and square footage of the property and advised to engage other professionals on legal issues, tax,
other locations is an important consideration, it is not a guarantee improvements, the presence or absence of contaminating regulatory, financial, and accounting matters, and for questions
of future success. Similarly, the lease rate for some properties, substances, PCB’s or asbestos, the compliance with State and involving the property’s physical condition or financial outlook.
including newly-constructed facilities or newly-acquired locations, Federal regulations, the physical condition of the improvements Projections and pro forma financial statements are not guarantees
may be set based on a tenant’s projected sales with little or no thereon, or the financial condition or business prospects of any and, given the potential volatility created by COVID-19, all potential
record of actual performance, or comparable rents for the area. tenant, or any tenant’s plans or intentions to continue its buyers should be comfortable with and rely solely on their own
Returns are not guaranteed; the tenant and any guarantors may fail occupancy of the subject property. The information contained in projections, analyses, and decision-making.
to pay the lease rent or property taxes, or may fail to comply with this Marketing Brochure has been obtained from sources we
other material terms of the lease; cash flow may be interrupted in believe to be reliable; however, Marcus & Millichap has not
part or in whole due to market, economic, environmental or other verified, and will not verify, any of the information contained
conditions. Regardless of tenant history and lease guarantees, herein, nor has Marcus & Millichap conducted any investigation
Investment Highlights
PRICE: $1,963,636 | CAP: 5.50% | RENT: $108,000
About the Investment
Cave Enterprises | 114 Unit Operator
15 Years Remaining on Original 20-Year Lease
Recent Lease Extension – Tenant Showing Commitment to the Location
Attractive Percentage Rent Increase Structure
Six (6) Tenant Renewal Periods of Five (5) Years Each
About the Location
Dense Retail Corridor | Piggly Wiggly, Dollar General, O’Reilly Auto Parts,
Fresenius Kidney Care, Subway, Chevrolet, Chrysler Jeep Dodge Ram, and
More
Strong Traffic Counts | E Commerce Blvd & Interstate 41 | 21,000 & 86,000
Vehicles Per Day, Respectively
Affluent Community | Average Income Within a Five-Mile Radius Exceeds
$100,000 | 68% Higher Than The State Average
High Academic Presence | Slinger High School and Middle School Are Both
Located Less Than Two Miles Away | Combined Enrollment is 1,500 Students
Representative Photo
Less Than Two Miles From Tourist Attractions | Little Switzerland Ski Resort &
Slinger Speedway
About the Tenant / Brand
Burger King Brand is One of the World’s Most Recognized Consumer Brands
Nearly 14,000 Restaurants in 100+ Countries | 11 Million Customers a Day
Cave Enterprises | 114 Unit Operator
Strong Track Record With Proven Operational Experience
Representative Photo
Representative Photo
Burger King – Slinger, WI 4
Financial Analysis
PRICE: $1,963,636 | CAP: 5.50% | RENT: $108,000
PROPERTY DESCRIPTION` RENT SCHEDULE
Property Burger King Lease Year(s) Monthly Rent Annual Rent
Property Address 940 East Commerce Boulevard Year 6 $9,000.00 $108,000.00
City, State, ZIP Slinger, WI 53086 Year 7 $9,000.00 $108,000.00
Renovated 2015 Year 8 $9,000.00 $108,000.00
Estimated Building Size 5,335 Year 9 $9,000.00 $108,000.00
Lot Size +/- 0.92 Acres Year 10 $9,000.00 $108,000.00
Type of Ownership Fee Simple Year 11 $9,000.00 $108,000.00
THE OFFERING Year 12 $9,000.00 $108,000.00
Purchase Price $1,963,636 Year 13 $9,000.00 $108,000.00
CAP Rate 5.50% Year 14 $9,000.00 $108,000.00
Annual Rent $108,000 Year 15 $9,000.00 $108,000.00
Year 16 $9,000.00 $108,000.00
LEASE SUMMARY
Year 17 $9,000.00 $108,000.00
Property Type Net-Lease Fast Food Restaurant
Year 18 $9,000.00 $108,000.00
Tenant Cave Enterprises
Year 19 $9,000.00 $108,000.00
Original Lease Term 20.0 Years
Year 20 $9,000.00 $108,000.00
Original Lease
12/23/1994
Commencement
Lease Extension Date January 1st, 2015 **In addition to the payment of Basic Rent, an additional rent in an amount equal to
eight and one-half percent (8 1/2%) of Lessee's gross sales from all business conducted
Lease Expiration December 31st, 2035 on the Demised Premises during each calendar year, less the aggregate payments
Lease Term Remaining 15.24 Years during such calendar year, of Basic Rent. In the event the aforementioned payments of
Lease Type Triple-Net (NNN) Basic Rent for any calendar year exceed the additional rent, Lessee shall not use the
amount of the excess payments as a credit to reduce the amount of additional rent
Roof & Structure Tenant Responsible payable in succeeding years.
Rental Increases Percentage of Sales
Options to Renew Six (6), Five (5)-Year Options On January 1, 2021, and on January 1 of each year thereafter, the annual Basic Rent
(and the corresponding monthly installments of Basic Rent) payable by Lessee under
the Lease shall be increased by an amount equal to fifty percent (50%) of the additional
(percentage) rent payable during the immediately preceding lease year, which said
increase shall be paid retroactively in a lump sum for those months during the current
lease year which elapse prior to its calculation.
Burger King – Slinger, WI 5
Concept Overview: Burger King
GREAT FOOD COMES FIRST General Information
Every day, more than 11 million guests visit BURGER KING® restaurants around
the world. And they do so because our restaurants are known for serving high- Address Toronto, ON
quality, great-tasting, and affordable food. Founded in 1954, BURGER KING® is Website http://www.rbi.com
the second largest fast food hamburger chain in the world. The original HOME
OF THE WHOPPER®, our commitment to premium ingredients, signature Stock Ticker QSR (NYSE)
recipes, and family-friendly dining experiences is what has defined our brand Current Price* $58.08
for more than 50 successful years.
52 Week High/Low $72.20 / $25.08
#2 Fast Food Hamburger Chain, Globally *As of October 7th, 2020
• More than $16 billion in annual system-wide sales, and nearly 350,000 Cave Enterprises
team members, worldwide. The concept has a market capitalization of Founded in 1999, Cave Enterprises is a growing 114-unit Burger King Franchisee
roughly $10 billion. successfully operating restaurants in IL, IN, WI, MN, MI, and SD.
Global Brand Presence | Fully – Franchised Beginning in 2006, Cave Enterprises (then an 8-unit restaurant operator with
exceptional operations records) was given the opportunity to embark on
Business Model
significant expansion through the acquisition of distressed restaurants, typically
• Nearly 14,000 restaurants in 100+ countries. QSR industry-leading EBITDA
locations experiencing sales declines, poor operations, and diminishing returns.
margins
Cave Enterprises completed several large acquisitions of this nature and has a
proven track record of reinvigorating sales and performance metrics in these
Rich Heritage | Stable, Reliable Long-Term markets through operational and staff improvements, increased community
Ownership involvement, capital investments in technology, and top-to-bottom remodels.
• Founded in 1954 with deep ties to the Miami Community. Burger King has
been actively managed by 3G since 2010. Recognizing Cave’s aptitude for success in turnaround situations, BKC began to
engage Cave Enterprises in discussions centered on Cave’s internal team and the
preparations necessary to take on new opportunities and add additional units
3G Capital soon to be available in Cave’s region. BKC recommended hiring additional
3G Capital is a global investment firm focused on long-term value, with a executive staff to help lead and grow the operations and procedural areas of the
particular emphasis on maximizing the potential of brands and businesses. The business. Additions to the Cave Enterprises staff have included Gary Hubert as
firm and its partners have a strong history of operational excellence, board COO, John Kayser as VP of Development, and Ken Conway, Michael Johnson,
involvement, deep sector expertise, and an extensive global network. 3G Capital Mike Leslie, and Ryan McAnulty as Regional Directors of Operations. Cave
works in close partnership with management teams at its portfolio companies Enterprises has also added administrative staff in the form of technology, facility
and places a strong emphasis on recruiting, developing and retaining top-tier maintenance, accounting, and HR professionals. Many of these hires have
talent. In October 2010, 3G Capital completed the acquisition of Burger King®, significant experience in Burger King Franchise Development and Management
one of the most widely-recognized consumer brands in the world. and are poised to help Cave Enterprises pursue its goal of continued growth in
operational excellence and overall unit numbers.
Burger King – Slinger, WI
Surrounding Area
Property Address: 940 E Commerce Boulevard, Slinger, WI 53086
Little Switzerland Slinger Speedway
Ski Resort
Slinger Middle
School
Slinger High School
(694 Students)
(1,000+ Students)
E COMMERCE BLVD ADTC: 21,000
Burger King – Slinger, WI 7
Location Overview
Property Address: 940 E Commerce Boulevard, Slinger, WI 53086
The subject investment property is situated on East Commerce Boulevard, which
boasts an average daily traffic count of 21,000 vehicles. East Commerce Boulevard
serves as an access road to interstate 41, which brings an additional 86,000
vehicles into the immediate area daily. The subject property benefits from its
strong demographics and growing population. There are more than 22,500
individuals residing within a five-mile radius of the property and more than 104,500
individuals within a ten-mile radius, these figures have increased by 23% and 16%,
respectively, since 2000 and are projected to continue growing. Additionally, the
property is situated in an affluent community. The average income within a five-
mile radius is greater than $100,000, which is 68% higher than the state average.
ADTC: 86,000
This Burger King benefits from being well-positioned in a dense retail corridor
consisting of national and local tenants, shopping centers, and academic
institutions, that are all within a close proximity of this property. National tenants
within immediate proximity include Piggly Wiggly, Dollar General, O’Reilly Auto
Parts, Fresenius Kidney Care, Subway, Chevrolet, Chrysler Jeep Dodge Ram and
more. The Burger King investment property benefits from being located in a one-
and one-half mile radius of Slinger High School and Middle School. The two schools
have a combined enrollment of 1,500 students. Additionally, the subject Burger
King is located less than two mile from Little Switzerland Ski Resort, which is one
Wisconsin’s oldest ski hills. Furthermore, Slinger Speedway is also located less than
two miles from the subject property.
Slinger is a part of the Milwaukee Metropolitan Area, which is the 39th largest MSA
in the United States. The Milwaukee metropolitan area ranks fifth in the United ADTC: 21,000
States in terms of the number of Fortune 500 company headquarters as a share of
the population. Milwaukee is the home to the international headquarters of six
Fortune 500 companies: Johnson Controls, Northwestern Mutual, Manpower,
Rockwell Automation, Harley-Davidson and Jay Global. Known for its brewing
traditions, major new additions to the city include the Milwaukee Riverwalk, the
Wisconsin Center, Miller Park, an internationally renowned addition to the
Milwaukee Art Museum, Milwaukee Repertory Theater, and Pier Wisconsin, as well
as major renovations to the UW-Milwaukee Panther Arena. In addition, education
and health services are the largest provider of jobs in the Milwaukee Metro.
Burger King – Slinger, WI 8Local Map
Property Address: 940 E Commerce Boulevard, Slinger, WI 53086
Burger King – Slinger, WI 9Regional Map
Property Address: 940 E Commerce Boulevard, Slinger, WI 53086
WISCONSIN
Burger King – Slinger, WI 10Demographics
Property Address: 940 E Commerce Boulevard, Slinger, WI 53086
3 Miles 5 Miles 10 Miles
POPULATION
2025 Projection 9,877 23,359 107,181
10 Miles 2020 Estimate 9,561 22,587 104,870
2010 Census 9,071 21,365 101,225
2000 Census 7,850 18,333 90,236
INCOME
Average $98,774 $100,850 $95,652
5 Miles Median $83,355 $83,290 $79,240
Per Capita $38,535 $39,624 $37,837
3 Miles HOUSEHOLDS
2025 Projection 3,868 9,219 42,546
2020 Estimate 3,726 8,855 41,358
2010 Census 3,528 8,342 39,797
2000 Census 2,904 6,776 33,838
HOUSING
2020 $296,581 $297,495 $274,538
EMPLOYMENT
2020 Daytime Population 8,020 17,905 97,215
2020 Unemployment 2.59% 2.53% 2.75%
2020 Median Time Traveled 25 Mins 26 Mins 26 Mins
RACE & ETHNICITY
White 96.88% 96.07% 95.09%
Native American 0.09% 0.05% 0.04%
African American 0.52% 0.72% 0.98%
Asian/Pacific Islander 0.85% 0.88% 0.96%
Burger King – Slinger, WI 11Market Overview
City: Slinger | County: Washington | State: Wisconsin
Milwaukee, WI Milwaukee
Sitting on the coast of beautiful Lake Michigan, Milwaukee is a big, bustling
city with a friendly, small town feel. The city is the largest city in
the state of Wisconsin and the fifth-largest city in the Midwestern United
States. Ranked by its estimated 2018 population, Milwaukee was the 31st
largest city in the United States. The city's estimated population in 2019
was 590,157. Milwaukee is the main cultural and economic center of
the Milwaukee metropolitan area which had a population of 2,043,904 in
the 2014 census estimate. It is the fourth-most densely populated
metropolitan area in the Midwest, surpassed only by Chicago, Minneapolis-
St. Paul and Detroit, respectively. Milwaukee is considered a "Gamma“
global city as categorized by the Globalization and World Cities Research
Network with a regional GDP of over $105 billion.
The city has a long tradition with the brewing industry and is home to
Miller Brewing and historic Milwaukee Brewery, the oldest still-functioning
major brewery in the United States. Milwaukee is home to a variety of
themed, seasonal festivals celebrating Milwaukee's history and diversity,
earning it its nickname, the “City of Festivals.” The city hosts the Wisconsin
State Fair, as well as the annual Summerfest, one of the largest music
festivals in the country. Other festivals include PrideFest, the Great Circus
Parade, Bastille Days, Festa Italiana, German Fest, Polish Fest and a number
of other ethnically themed festivals celebrating Greek, African, Arab, Irish
and Mexican cultures. Milwaukee is a popular venue for Lake Michigan
sailing, windsurfing, kite-surfing, ethnic dining, and cultural festivals.
Burger King – Slinger, WI 12940 E Commerce Boulevard, Slinger, WI 53086 WI BROKER OF RECORD: Todd Lindblom Lic. # 56163-90
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