OUTBACK STEAKHOUSE CONFIDENTIAL OFFERING MEMORANDUM (Dated: November 2016) - NET LEASE PROPERTY GROUP - NNN Equity Advisors
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Actual Location CONFIDENTIAL OFFERING MEMORANDUM (Dated: November 2016) OUTBACK STEAKHOUSE 13 26 5 S O U T H F R E E WAY | B U R L E S O N , T E X A S 76 0 2 8 NET LEASE PROPERTY GROUP
EXCLUSIVE ADVISORS: AFFILIATED BUSINESS DISCLOSURE
CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property
:: WILL PIKE and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by
+1 404 923 1381 our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the
will.pike@cbre.com successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all
instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment
:: MATT GORMAN of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.
+1 484 567 2340 CONFIDENTIALITY AGREEMENT
matt.gorman@cbre.com This Memorandum has been prepared for information purposes relating to this potential transaction only and is being delivered subject to the terms, and the prior execution, of a confidentiality agreement (the “Confidentiality Agreement”). This Memorandum
may be used only for the purposes set forth in the Confidentiality Agreement and may not be photocopied, reproduced or distributed, in whole or in parts, to any other person at any time except strictly in accordance with the terms of the Confidentiality
:: CHRIS BOSWORTH Agreement. By accepting this Memorandum, the recipient declares to be aware of the contents of the Confidentiality Agreement and to be bound by its terms. This is a confidential Memorandum intended solely for your limited use and benefit in determining
+1 404 923 1486 whether you desire to express further interest in the acquisition of the Property and is not to be used for any other purpose.
chris.bosworth@cbre.com This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all–inclusive or to contain all or part of the
information which prospective investors may require to evaluate a purchase of real property. This Memorandum is not intended to form the basis of a decision to acquire the Property or the basis of any other investment decision and does not constitute an
:: MICHAEL SHOVER offer, invitation or recommendation for the sale or purchase of securities. Neither the information contained in this Memorandum nor any further information made available by CBRE or Owner in connection with the Property will form the basis of or be
+1 484 567 2344 construed as a contract. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the
michael.shover@cbre.com Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations and this Memorandum
does not constitute a recommendation, endorsement, or advice as to the value of the Property. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum,
:: BRIAN PFOHL certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all
+1 404 504 7893 such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.
brian.pfohl@cbre.com
Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal
commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. By accepting
LOCAL CONTACT:
or accessing information applicable to the Property, the user agrees that the owner of the Property, Special Services Asset Management Company, including its affiliates, agents (collectively, the “Owner”) or CBRE, Inc. accept no responsibility for errors or
omissions in any such Property related information, whether now or hereafter obtained (collectively, the “Property Information”). The Property Information is subject to errors, omissions, changes and other conditions, withdrawal without notice, and to
:: BRAD BENJAMIN
any special listing conditions now or hereafter imposed, and is not to be relied upon without Owner’s prior written permission. Owner accepts no, and expressly disclaims any, duty to update or revise the Property Information even if it becomes aware of an
CBRE | TX Licensee
brad.benjamin@cbre.com inaccuracy and/or omission.
The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, to terminate discussions with any entity or person (s) at any time with or without notice which may arise as a result
of review of this Memorandum and/or to withdraw, supplement, change, amend, bifurcate, or reduce this Memorandum and/or the Property. The Owner shall have no legal commitment or obligation to any entity or person (s) reviewing this Memorandum
or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied
or waived.
By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity
without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.
3280 Peachtree Road If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.
Terminus 100, Suite 1400 DISCLAIMER
Atlanta, Georgia 30305 © 2016 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. and the Owner do not doubt its accuracy, CBRE, Inc. and the Owner have not verified it and make no guarantee, warranty
or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the
www.cbre.com property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine
to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are
the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.
OUTBACK STEAKHOUSE
TA B LE OF CONTE NTS
01 Executive Summary
Investment Highlights, Investment Summary
1
02 The Property
Property Details, Aerial
3
03 Lease Summary
Lease Language Summary
5
04 Tenant Overview
Tenant Profile
6
Actual Location 05 Market Overview
Fort Worth Market
7
C B R E ’S N ET LE A SE PROPE R T Y G ROU P is pleased to exclusively of fer a 7,0 86 -square-foot freestanding Outback Steakhouse on 2 . 3 0 acres
in Burleson, Texas which is an upscale bedroom communit y just south of For t Wor th (M SA Population: 7.1 million). The property is ideally situated
with excellent frontage and visibility on South Fairway (Traffic Count: 7,409 VPD) which is an access road just off of I-35W (Traffic Count: 112,000 VPD). The property is strategically located immediately
adjacent to a Cracker Barrel Old Country Store and 100-room Holiday Inn Express providing Outback with a built-in customer base. The site is also across I-35W from the 510,703-square-foot Gateway
Station Shopping Center (Anchors: Kohl’s, Old Navy, Ross Dress for Less, Michaels, PetSmart, Conn’s) and Burleson Town Center (Anchors: Albertsons and JCPenney). Interstate 35W is the area’s
preeminent retail commercial corridor (3.9 MSF of retail within 3-miles). At closing, Outback Steakhouse will execute a new 15-year absolute NNN lease with 1.00% annual rent increases. This investment
offers investors the opportunity purchase a net leased asset leased on a long-term NNN basis to one of the country’s premier casual dining restaurant operators.
I N V E S TM E NT H I G H LI G HT S
PREMIER CASUAL DINING BRAND STRATEGIC LOCATION
Outback Steakhouse is a casual steakhouse restaurant focused on steaks, signature flavors, and The property is strategically located immediately adjacent to a Cracker Barrel Old Country Store
Australian-inspired decor. The Outback Steakhouse menu offers seasoned and seared or wood- and 100-room Holiday Inn Express providing Outback with a built-in customer base. The site is also
fire grilled steaks, chops, chicken, seafood, pasta, salads, and seasonal specials. The menu also across I-35W from the 510,703-square-foot Gateway Station Shopping Center (Anchors: Kohl’s,
includes several specialty appetizers, including the signature Bloomin’ Onion®, and desserts as well Old Navy, Ross Dress for Less, Michaels, PetSmart, Conn’s) and Burleson Town Center (Anchors:
as a full-service bar featuring Australian wine and beer. As of September 25, 2016, the company had Albertsons and JCPenney).
974 Outback Steakhouse restaurants around the world (746 company-owned and 228 franchised). EXCELLENT ACCESS IN HIGH TRAFFIC CORRIDOR
Outback Steakhouse reported TTM system-wide sales in excess of $3.14 billion.
The property is ideally situated with excellent frontage and visibility on South Fairway (Traffic Count:
PUBLICLY TRADED PARENT COMPANY 7,409 VPD) which is an access road just off of I-35W (Traffic Count: 112,000 VPD). I-35W leads
Bloomin’ Brands, Inc. (NASDAQ: BLMN) is one of the world’s largest casual dining restaurant directly to Fort Worth’s CBD (14 miles north) and all the way south to Waco (75 mils) and Austin
companies with approximately 1,500 restaurants throughout 48 states, Puerto Rico, Guam, and 20 (176 miles).
countries. The company operates restaurants through a portfolio of leading, differentiated restaurant DYNAMIC DEMOGRAPHICS
brands including Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime
The property benefits from dynamic demographics with a 3-mile population of 56,844 and average
Steakhouse & Wine Bar. As of September 25, 2016, Bloomin’ Brands reported TTM revenues of
household income of $79,904.
$4.30 billion and EBITDA of $358 million.
LONG-TERM NET LEASE WITH ANNUAL RENT ESCALATIONS
At closing, Outback will execute a new 15-year NNN lease with four 5-year options to renew. The INVESTMENT SUMM ARY $
lease will include 1% annual rent increases throughout the term. NOI $185,998
RECENT RENOVATIONS CAP 5.15%
PRICE $3,612,000
The property was recently renovated in 2012 showing the tenant’s commitment to the site.
1
DOMINANT RETAIL CORRIDOR
Interstate 35W is the area’s preeminent retail, residential, and commercial corridor
(3.9 MSF of retail within 3-miles). Other surrounding retailers include Lowe’s Home
Improvement, Sam’s Club, Academy Sports and Outdoors, Bath & Body Works,
Staples, Best Buy, TJ Maxx, Pier One Imports, Ulta Beauty Supply, Lane Bryant,
Olive Garden, Red Lobster, Chick-Fil-A, Logan’s Roadhouse, and Famous Footwear
among many others.
BURLESON, TEXAS
Situated just 15 miles south of Fort Worth’s CBD, Burleson (Population: 41,000+)
is an upscale bedroom community with a high quality of living and easy access to
a major metroplex. The local economy is based on manufacturing, healthcare, and
retail trade. Top employers include Burleson ISD, Walmart, City of Burleson, and
H-E-B. More than 1,300 business employ a total of 10,500 people in the city. The
community boasts low taxes, a family-oriented environment, an outstanding school
system, and more than 26 square miles of rolling hills, lakes and parks.
DALLAS-FORT WORTH MARKET
The Dallas/Fort Worth MSA is a dynamic 12-county region comprised of Dallas,
Fort Worth and another 150 municipalities. The Dallas area is the fourth-largest
metropolitan area in the United States with an area of 384 square miles and a
population of more than 6.95 million people. DFW also has the largest, most
educated workforce in the state of Texas, totaling approximately 3.5 million people,
and leads the state in public university and community college students (250,000).
The DFW Metroplex has therefore enjoyed a sustained period of economic and
population expansion as local companies increase their business capacity and
others relocate to this desirable, central U.S. location.
2
P RO P E R T Y A E R I A L
Sprinks Airport
3
I N V E S TM E NT S U M M A RY
PROPERT Y SUMM ARY
13265 South Freeway
ADDRESS
Burleson, TX 76028
SQUARE FOOTAGE 7,086 SF
L AND AREA 2.30 Acres
YEAR BUILT 2001
2016 DEMOGR APHICS
1 MILES 3 MILES 5 MILES
2016 POPULATION 5,013 56,844 114,241
2021 PROJECTED POPULATION 5,623 63,476 126,737
GROW TH 2016-2021 12.2% 11.7% 10.9%
AVG. HH INCOME $76,686 $79,904 $78,329
TR AFFIC COUNTS
THOROUGHFARE VEHICLES PER DAY
SOUTH FREEWAY 7,409 VPD
INTERSTATE 35W 112,000 VPD Acutal Location
4
L E A S E S U M M A RY
TENANT: Outback Steakhouse of Florida, LLC INSURANCE Tenant will keep in force at its own expense, throughout the Term of this
Lease, commercial general liability insurance with respect to the Premises
GUARANTOR: OSI Restaurant Partners, LLC
and the business operated by Tenant and construction performed by Tenant
PRIMARY TERM: 15 Years with companies licensed to do business in the state in which the Premises
are located and rated A- or better in the then most current issue of Bests’
LEASE TYPE: Absolute NNN
Insurance Reports with coverage of not less than $5,000,000 per occurrence.
BASE RENT: $185,998 Tenant will keep in force at its own expense, commencing on the
Commencement Date, and continuing throughout the Term of this Lease,
RENT INCREASES: 1% Annual Increases
property insurance with respect to the Building and Tenant’s Property in the
OPTIONS: Four 5-Year Options Premises with companies licensed to do business in the state in which the
Premises are located and rated A- or better in the in then most current issue
OPTION INCREASES: Option #1: 1% Annual Increases
of Bests’ Insurance Reports, against loss or damage by fire and such other
Option #2: 1% Annual Increases
hazards on a replacement cost basis.
Option #3: 1% Annual Increases
Option #4: FMV Rent with 1% Annual Increases REPAIRS & MAINTENANCE: Tenant shall at all times during the Term, keep and maintain, at its cost and
expense, the Premises, including the Building and Improvements located
TRIPLE NET LEASE: It is understood and agreed between Landlord and Tenant that this Lease
thereon, in good order and repair, reasonable wear and tear expected,
is a “triple net lease”, and that, during the Term hereof, Tenant shall be
and in a clean and sanitary condition, and shall make all necessary
responsible for payment of all operating expenses, maintenance expenses,
repairs, including all necessary replacements, alterations and additions,
insurance, and Real Estate Taxes relating to the Premises.
using materials and equipment of similar or superior kind and quality to
TAXES: Tenant shall pay all “Real Estate Taxes” levied or assessed against the the original Improvements. Tenant shall pay all costs associated with the
Premises, including, without limitation, the Improvements thereon, and regularly scheduled disposal of its garbage, including but not limited to,
coming due during the Initial Term or any Renewal Term of this Lease. costs of pick up, containers and deposits.
Tenant shall pay the Real Estate Taxes directly to the taxing authorities CAM: During the Term of this Lease, Tenant shall be responsible for all payments,
before any fine, penalty, interest or cost may be added thereto or become
assessments, or fees and all maintenance, obligations, or actions required
due by operation of law for the nonpayment or late payment thereof,
under the Governing Documents which relate to the Premises.
providing Tenant has received the bills therefor.
5 Actual LocationTE N A NT OV E R V I E W
OUTBACK STEAKHOUSE BLOOMIN’ BRANDS
Outback Steakhouse is a casual steakhouse restaurant focused on steaks, signature flavors, and Bloomin’ Brands, Inc. (NASDAQ: BLMN) is one of the world’s largest casual dining
Australian-inspired decor. The Outback Steakhouse menu offers seasoned and seared or wood- restaurant companies with approximately 1,500 restaurants throughout 48 states, Puerto
fire grilled steaks, chops, chicken, seafood, pasta, salads, and seasonal specials. The menu also Rico, Guam, and 20 countries. The company operates restaurants through a portfolio
includes several specialty appetizers, including the signature Bloomin’ Onion®, and desserts as of leading, differentiated restaurant brands including Outback Steakhouse, Carrabba’s
well as a full-service bar featuring Australian wine and beer. As of September 25, 2016, the Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar. Price points and
company had 974 Outback Steakhouse restaurants around the world (746 company-owned and degree of formality range from casual (Outback Steakhouse and Carrabba’s Italian Grill)
228 franchised). Outback Steakhouse reported TTM system-wide sales in excess of $3.14 billion. to upscale casual (Bonefish Grill) and fine dining (Fleming’s Prime Steakhouse & Wine Bar).
Headquartered in Tampa, Florida, Bloomin’ Brands has more than 100,000 employees.
As of September 25, 2016, Bloomin’ Brands reported TTM revenues of $4.30 billion and
EBITDA of $358 million.
BLOOMIN’ BRANDS, INC #1 CASUAL
USD in Millions
RESTAURANT DINING
FINANCIALS 2016 TTM* 2015 2014 2013 BRAND OF THE YEAR
TOTAL REVENUE 4,297 4,378 4,443 4,129
OPER ATION EXPENSES 164 231 192 225
NET INCOME 64 127 91 208
EBITDA 358 421 383 389
TOTAL ASSETS 2,660 3,033 3,338 3,267
TOTAL LIABILITIES 2,394 2,587 3,757 2,763
TOTAL EQUIT Y 240 422 556 483
* As of September 25, 2016
6BURLESON, TEXAS MARKET
Situated 15 miles south of Fort Worth’s CBD, Burleson (Population: 41,000+) is an upscale bedroom community with a high quality of living and easy access to a major metroplex. The local economy
is based on manufacturing, healthcare, and retail trade. Top employers include Burleson ISD, Walmart, City of Burleson, H-E-B, and Champion Building. More than 1,300 business employ a total of
10,500 people in the city. The community boasts low taxes, a family-oriented environment, an outstanding school system, plentiful affordable land, and more than 26 square miles of rolling hills, lakes
and parks. Burleson is one of the fastest growing and desirable communities in Central Texas. The population increased approximately15% since 2010 and is expected to increase another 11% by 2020.
DALLAS - FORT WORTH MSA
The Dallas/Fort Worth Metroplex (Dallas/Fort Worth, DFW) is a dynamic 12-county region comprised of Dallas, Fort Worth and another 150 municipalities. The Dallas area is the fourth-largest
metropolitan area in the United States with an area of 384 square miles and a population of more than 7.1 million people. DFW also has the largest, most educated workforce in the state of Texas,
totaling approximately three million people, and leads the state in public university and community college students (250,000). Producing one-third of all goods and services in Texas, the DFW area
accounts for $60 billion in annual direct imports and exports. The DFW Metroplex has therefore enjoyed a sustained period of economic and population expansion as local companies increase their
business capacity and others relocate to this desirable, central U.S. location.
7DALLAS - FORT WORTH MSA
TRANSPORTATION
Dallas/Fort Worth is served by an excellent infrastructure of highways and interstates, rail, major
airports and public transportation systems. The central location and international airport system
give businesses a competitive advantage in the national and international marketplace. Markets
anywhere in the country or the world can be easily accessed from the region, making DFW a
center of distribution activity for regional, national and international operations.
ECONOMY
Dallas/Fort Worth is home to more than 10,000 corporate headquarters, the largest concentration in
the U.S. The Metroplex is also home to 25 Fortune 500 headquarters, according to Fortune Magazine.
As a result, the DFW region ranks second among U.S. metropolitan areas for revenue generated from
Fortune 500 companies. As the Southwest’s leading business and financial center, the area boasts the
largest wholesale market in the world. With fundamentals that few other markets can match, DFW has
capitalized on its central U.S. location, unparalleled transportation network, competitive operating and
living costs, pro-business government, critical mass of existing corporate headquarters and offices,
favorable year-round climate, and attractive Sunbelt location. The area boasts a major metropolitan
quality of life with amenities including the arts, professional sports organizations and a wide array NO. OF
RANK COMPANY
EMPLOYEES
of entertainment destinations. Among the largest industries in the area are health, tourism, logistics,
1 Wal-Mart Stores Inc 34,698
electronic commerce and financial services. Lower exposure to the energy industry has meant that total
2 Bank of America Corp 20,000
employment has risen steadily throughout 2015 and is up at nearly twice the U.S. pace. Just about
3 Carlson Restaurants Worldwide 19,999
all industries except manufacturing have shared in the gains. Leading the way, professional services,
4 Texas Health Resources 19,230
healthcare, hospitality and transportation are each up more than 5% over the past year. The current
5 Baylor Health Care System 16,850
unemployment rate is a mere 3.6% which is almost half of the national average. Longer term, the high
6 AT&T 15,800
concentrations of technology businesses, corporate headquarters, banking, distribution infrastructure,
7 JPMorgan Chase & Co. 14,500
and above-average population growth will contribute to above-average performance.
8EXCLUSIVE ADVISORS:
:: WILL PIKE
+1 404 923 1381
will.pike@cbre.com
:: MATT GORMAN
+1 484 567 2340
matt.gorman@cbre.com
:: CHRIS BOSWORTH
+1 404 923 1486
chris.bosworth@cbre.com
:: MICHAEL SHOVER
+1 484 567 2344
michael.shover@cbre.com
:: BRIAN PFOHL
+1 404 504 7893
brian.pfohl@cbre.com
LOCAL CONTACT:
:: BRAD BENJAMIN
CBRE | TX Licensee
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