OFFERING MEMORANDUM - FRIENDLY'S - NNN Properties
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FRIENDLY’S
EXCLUSIVE NET LEASE OFFERING
OFFERING Subject Property
MEMORANDUM 2502 West State Street - Olean, NY 14760
Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected
Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square
sales with little or no record of actual performance, or footage of the property and improvements, the presence or
The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the
obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical
Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial
information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s
investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject
no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure
accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable;
intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify,
As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus &
responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters
completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding
purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All
thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of
opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein.
to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release
Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE
Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising
Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc.
the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any
net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package.
evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended
to indicate or imply affiliation with, or sponsorship or
Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or
should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing
leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing
suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective
written consent of Marcus & Millichap. This Marketing Brochure customers.
Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information
risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE
and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE
the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS.
this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation,
guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the
2502 West State Street - Olean, NY 14760
Table of Contents
Investment Highlights 4
Financial Analysis 5
Tenant Overview 6
Surrounding Area 7
Location Overview 8
Property Photos 9-10
Surrounding Area Photos 11
Local Map 12
Regional Map 13
Demographics / Market Overview 14-15
Representative Photo
Investment Highlights
PRICE: $1,664,123 | CAP: 6.50% | RENT: $108,168
About the Investment
✓ ~15 Years Remaining on a Triple-Net (NNN) Lease with Zero Landlord
Responsibilities
✓ Tenant Displaying Long Term Commitment to the Site | Tenant Recently
Extended the Lease to 15 Years
✓ Attractive Rental Increases Which Provide a Strong Hedge Against Inflation
| 1.50% Annual Increases Starting August 1, 2021
✓ Four (4), Five (5)-Year Tenant Renewal Options
✓ Corporate Tenant | Corporate Guarantee
✓ Percentage Rent | Potential Upside: In Addition to the Base Rent, Friendly’s
is Required to Pay Potential Percentage Rent, Equal to 8% of Gross Sales in
Excess of the Breakpoint
About the Location
✓ Recently Remodeled in 2015: Friendly’s Invested a Significant Amount to Representative Photo
Remodel this Location Displaying Long Term Commitment to the Site
✓ Highly Dense Retail Corridor| Walmart, Aldi, The Home Depot, BJ’s, AMC,
Burger King, McDonald’s, Tops, Staples, Dollar Tree, Domino’s,
Applebee’s, And Many More
✓ Strong Academic Presence | One-Mile From St. Bonaventure University |
Over 2,000 Students
✓ High Visibility and Ease of Access Along West State Street | Over 5,500
Vehicles Per Day
About the Tenant / Brand
✓ Founded in 1935 in Springfield, Massachusetts, By the Blake Brothers
Prestley and Curtis
✓ A Total of 380 Friendly's are Spread Across Connecticut, Delaware, Florida,
Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York,
Pennsylvania, Rhode Island, South Carolina, Vermont, and Virginia
✓ Offers A Diner-Style Cuisine and Highlights Its 22 Ice Cream Flavors; Many
Locations Offer An Ice-Cream Only Take-Out Window Alongside of the
Table Service Option Representative Photo
Friendly’s – Olean, NY 4
Financial Analysis
PRICE: $1,664,123 | CAP: 6.50% | RENT: $108,168
PROPERTY DESCRIPTION PROPERTY DESCRIPTION
Property Friendly's Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%)
Property Address 2502 W. State Street 8/1/2019 - 7/31/2020 $108,168 $9,014 -
City, State, ZIP Olean, NY 14760 8/1/2020 - 7/31/2021 $108,168 $9,014 -
Year Built / Renovated 1977/2015 8/1/2021 - 7/31/2022 $109,791 $9,149 1.50%
Building Size 4,573
8/1/2022 - 7/31/2023 $111,437 $9,286 1.50%
Lot Size +/- 0.89 Acres
8/1/2023 - 7/31/2024 $113,109 $9,426 1.50%
Type of Ownership Fee Simple
8/1/2024 - 7/31/2025 $114,806 $9,567 1.50%
THE OFFERING 8/1/2025 - 7/31/2026 $116,528 $9,711 1.50%
Purchase Price $1,664,123 8/1/2026 - 7/31/2027 $118,276 $9,856 1.50%
CAP Rate 6.50%
8/1/2027 - 7/31/2028 $120,050 $10,004 1.50%
Annual Rent $108,168
8/1/2028 - 7/31/2029 $121,850 $10,154 1.50%
Price / SF $363.90
8/1/2029 - 7/31/2030 $123,678 $10,307 1.50%
Rent / SF $23.65
8/1/2030 - 7/31/2031 $125,533 $10,461 1.50%
LEASE SUMMARY 8/1/2031 - 7/31/2032 $127,416 $10,618 1.50%
Property Type Net-Leased Restaurant
8/1/2032 - 7/31/2033 $129,328 $10,777 1.50%
Ownership Type Private
8/1/2033 - 7/31/2034 $131,268 $10,939 1.50%
Tenant/Guarantor Corporate
Original Lease Term 20.0 Years
Lease Commencement August 1, 2014 INVESTMENT SUMMARY
Lease Expiration July 31, 2034 Marcus & Millichap is pleased to present the exclusive listing for a Friendly’s
Lease Term Remaining 14.8 Years located at 2502 West State Street in Olean, NY. The site consists of roughly 4,573
Lease Type Triple-Net (NNN) rentable square feet of building space on approximately 0.89-acre parcel of land.
Roof & Structure Tenant Responsible The investment opportunity is subject to a triple-net (NNN) lease with no landlord
Rental Increases 1.5% Annually Starting August 2021 responsibilities. The tenant recently extended the base term of the lease to 15
years remaining. The current annual rent is $108,168, which is scheduled to
Options to Renew Four (4), Five (5)-Year Options
increase by 1.50% annually starting August 1st, 2021 and continuing throughout
the remainder of the lease and each of the four (4), five (5)-year option periods.
Friendly’s – Olean, NY 5
Tenant Overview
ABOUT FRIENDLY’S
Founded in 1935 in Springfield, Massachusetts, Friendly's Ice Cream, LLC was
created by brothers Curtis and Prestley Blake at the height of the Great
Depression and has since enjoyed 83 years as America's beloved ice cream brand.
Friendly’s is a vertically integrated, ice cream-centric, restaurant chain with an
iconic brand name, serving signature sandwiches, burgers and ice cream desserts
in friendly, family restaurants as well as offering a wide variety of packaged ice
cream and other frozen treats in retail stores across America. Currently, there are
a total of 221 neighborhood stores throughout the Northeast and several
Southeastern states, 112 are company operated while 109 are franchised.
Together with its broad franchise base, the company has system-wide restaurant
level sales of $266M. In 2016, Friendly’s was acquired by Dean Food Company, a
leading food and beverage company and the largest processor and direct-to-store
distributor of fresh flued and other dairy case products in the United States. Dean
Foods Company has continued to produce Friendly’s ice cream out of the facility
in Wilbraham, Massachusetts that for over 45 years has produced Friendly’s
popular packaged ice cream, frozen dessert products, including single-serve
sundae cups, cakes and rolls, along with ice cream for Friendly’s restaurants. With
over 220 locations, Friendly’s distributes products in over 8,000 retail locations
across the United States, and has seen 105% growth in the retail business over
the past five years. For the future, Friendly’s has plans for new food and ice cream
concepts, as well as enhanced buildings and service channels.
Friendly’s – Olean, NY 6
Surrounding Area
Property Address: 2502 West State Street - Olean, NY 14760
ARCHISHOP
WALSH HIGH
SCHOOL
WEST STATE STREET ADTC: 5,560
Friendly’s – Olean, NY 7
Location Overview
Property Address: 2502 West State Street - Olean, NY 14760
This Friendly’s investment property is located at 2502 West State Street in
Olean, New York. Olean is the largest city in Cattaraugus County and is one
of the principal cities of the Southern Tier region of New York. There are
more than 23,400 individuals residing within a five-mile radius of the
property and more than 35,600 within a ten-mile radius. The subject
property is on West State Street, which experiences an average daily traffic
count of 5,560 vehicles. West State Street runs parallel to I-86, which has an
average daily traffic count of 13,620 vehicles.
The subject property benefits from its strategic location in a dense
residential and retail corridor containing both local and national tenants.
Major national tenants in the surrounding area include Walmart, Aldi, The
Home Depot, BJ’s, AMC, Burger King, McDonald’s, Tops, Staples, Dollar Tree,
Domino’s, Applebee’s, and many more. St. Bonaventure University is located
one-mile from the subject property and currently enrolls over 2,000
students. Archbishop Walsh Academy and Southern Tier Catholic School are
located within walking distance of the subject property and have a combined
enroll 191 students. Olean General Hospital, a Kaleida Health facility, is a
186-bed general medical and surgical hospital under ten minutes away from
the subject property.
Olean, New York serves as the financial, business, transportation and
entertainment center of Cattaraugus County. Olean was recently selected as
a winner of the New York State Downtown Revitalization Initiative (DRI).
Started by Governor Andrew Cuomo and currently in its second year, the
DRI awards communities with $10 million to develop a downtown strategic
investment plan to implement key projects to revitalize the local community.
Olean’s vision is to make the city vibrant and residents optimistic about
opportunities to work, to learn, and to thrive in Olean, with a special
emphasis on retaining younger and college-educated residents. Olean is
home to the headquarters of Cutco and a major manufacturing facility of
Dresser-Rand, a Siemens AG subsidiary. Olean’s youth is served by two
elementary schools, one middle school and one high school.
Friendly’s – Olean, NY 8
Property Photo
Subject Property
Friendly’s – Olean, NY 9
Property Photo
Subject Property
Friendly’s – Olean, NY 10Surrounding Area Photos Friendly’s – Olean, NY 11
Local Map
Property Address: 2502 West State Street - Olean, NY 14760
Greater Rochester International Airport (ROC)
Buffalo Niagara International Airport (BUF)
Friendly’s – Olean, NY 12Regional Map
Property Address: 2502 West State Street - Olean, NY 14760
NEW YORK
Friendly’s – Olean, NY 13Demographics
Property Address: 2502 West State Street - Olean, NY 14760
3 Mile 5 Miles 10 Miles
Population Trends:
2024 Projection 18,998 23,154 34,822
2019 Estimate 19,322 23,630 35,599
2010 Census 20,225 25,130 38,072
10 Miles 2019 Population Hispanic Origin 554 600 740
Population by Race (2019):
White 17,353 21,492 32,848
5 Miles Black 783 837 904
American Indian & Alaskan 165 183 507
3 Miles Asian 400 439 473
Hawaiian & Pacific Island 8 8 8
Other 612 671 858
Household Trends:
2024 Projection 7,755 9,483 14,269
2019 Estimate 7,886 9,679 14,594
2010 Census 8,244 10,287 15,617
Owner Occupied 4,581 6,106 10,124
Renter Occupied 3,305 3,573 4,469
Average Household Income (2019): $60,786 $62,219 $62,930
Households by Household Income (2019):Market Overview
City: Olean | County: Cattaraugus| State: New York
Buffalo
Buffalo, NY In the early 1900s, Buffalo was a beacon of industry; located on Lake
Erie, Buffalo was a hub of transport for goods between the East Coast
and the Midwest. Today, a rapidly developing waterfront and one of the
nation's most advanced medical corridors, located in the heart of
downtown, are just two signs that this Rust Belt area is experiencing a
renaissance. An increasing number of new businesses are benefitting
from partnerships with the local government. Also, the region has seen
increased development including the waterfront Harbor Center hockey
center.
Buffalo has a neighborly feel to it. Residents can gather in local pubs or
top-tier restaurants. Tree-lined avenues connect residents to each
other, and traffic is more manageable in the region than in larger metro
areas like New York City. Buffalo is only 20 miles away from an
international tourism destination: Niagara Falls. As for those long
winters, there's excellent skiing less than an hour from downtown.
Major Employers
Employer Estimated # of Employees
Olean General Hospital 1,771
Cutco Corporation 777
St Bonaventure University 555
Walmart 480
Administration 300
Cooper Power Systems 300
Cutco Cutlery Corporation 300
City of Olean 293
Cattaraugus County Nurse Homes 290
Olean V A Outpatient Clinic 264
Home Depot The 200
Friendly’s – Olean, NY 15E XC LU S I V E N E T L EA S E O F F E R I N G Glen Kunofsky glen.kunofsky@marcusmillichap.com Tel: (212)-430-5115 License: 49KU1129178 Edward Otocka edward.otocka@marcusmillichap.com 212.430.5235 NY: 10401232117 James Westerberg james.westerberg@marcusmillichap.com Tel: 646.805.1449 License: 10401302501 J.D. Parker j.d.parker@marcusmillichap.com Tel: 212.430.5150 License: REB.0788985
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