Popeyes Louisiana Kitchen - Rapid City, South Dakota
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Net Lease Investment Services
File Photograph
Popeyes Louisiana Kitchen
Rapid City, South Dakota
Price: $2,725,000 - 6.25% Cap Rate
• 20-Year NNN Lease with 1.50% Annual Increases
• Exceptional Unit Sales - 2X National Average
• Excellent Access to Interstate 90
• Double Drive-Thru
• Over 4 million annual tourists visiting Mt. Rushmore, The Black Hills,
Deadwood and Sturgis
For more information, please contact: In association with:
Colby Moore Sandra Runde, CCIM, SIOR
+1 415 677 0422 +1 605 343 7500
colby.moore@cushwake.com SD LIC 4699
CA LIC #01900405
201 California Street, Suite 800 / San Francisco, CA 94111 / tel +1 415 781 8100 / fax +1 415 956 3381 / www.thinknnn.com / Cushman & Wakefield / Lic #01880493
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
Net Lease Investment Services
Popeyes Louisiana Kitchen Rapid City, South Dakota
LOCATION The property is located at 1323 E North Street, Rapid City, South Dakota
LOT SIZE Approximately 1.50 acres – ±65,340 square feet.
IMPROVEMENTS A 2,888± square foot freestanding POPEYES restaurant with double drive-thru.
LEASE Leased to PLATINUM RESTAURANT GROUP, INC., dba POPEYES for 20 years
from October 27, 2014 until September 30, 2034. The lease is absolute net with
the tenant responsible for all taxes, insurance and maintenance including roof
and structure. There is one 5-year option to renew.
ANNUAL INCOME The current annual rent of $170,520 increases by 1.50% annually.
See rent schedule.
PRICE $2,725,000 - 6.25% Cap Rate
RENT PER SQUARE FOOT $58.17 net per year - $4.85 net per month
ABOUT THE TENANT: PLATINUM RESTAURANT GROUP, INC., was formed in January 2013 by Chris
PLATINUM RESTAURANT Connelly and Josh Holdinghausen. The company currently owns and operates
GROUP, INC. 3 Marco’s Pizza restaurants in South Dakota with 3 more under development.
Platinum was awarded the right to operate the Popeye’s Louisiana Kitchen
franchise in 2013 and was awarded the Silver Shovel Award from Popeyes
Louisiana Kitchen, Inc. in 2015.
CJM:kmo:1215:01
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
Net Lease Investment Services
Popeyes Louisiana Kitchen Rapid City, South Dakota
AFC ENTERPRISES, INC. Founded in Atlanta in 1992 as AFC ENTERPRISES, INC., the Company is a
developer, operator and franchisor of quick-service restaurants under the trade
name, Popeyes® Louisiana Kitchen and Popeyes® Chicken & Biscuits. In January
2014, AFC Enterprises, Inc. changed its corporate name to Popeyes Louisiana
Kitchen, Inc. and is traded on Nasdaq under the ticker symbol “PLKI”.
The POPEYES® brand was founded in New Orleans, Louisiana in 1972 and is the
world’s second largest quick-service chicken concept (based on the number
of units). Within the QSR industry, Popeyes distinguishes itself with a unique
“New Orleans” style menu that features spicy chicken, chicken tenders, fried
shrimp and other seafood, as well as jambalaya, Red Beans and Rice and other
regional items. Popeyes is a highly differentiated QSR brand with a passion for
its Louisiana heritage and flavorful authentic food.
Popeyes serves food the world craves and is continuing to expand its global
reach. As of December 2014, the Company operates and franchises 2,379
Popeyes restaurants in 48 states, the District of Columbia, three territories and 26
foreign countries. Of the 1,805 domestic franchised restaurants, approximately
70% are concentrated in Texas, California, Louisiana, Florida, Illinois, Maryland,
New York, Georgia, Virginia and Mississippi. Of the 509 international franchised
restaurants, approximately 60% are located in Korea, Canada and Turkey. More
than 77% of the company-operated restaurants are concentrated in Louisiana
and Tennessee.
For the fiscal year ended December 28, 2014, Popeyes reported total revenues
of $235.6 million with net income of $38.0 million and shareholders’ equity of
$260.3 million.
For the 10 months ended October 4, 2015, Popeyes reported total revenues
of 200 million with net income of $34.5 million compared to $29.2 million and
shareholder’s equity of $267 billion.
For more information, visit www.popeyes.com.
CJM:kmo:1215:01
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.Net Lease Investment Services
Popeyes Louisiana Kitchen Rapid City, South Dakota
ANNUAL INCOME YEARS ANNUAL RENT RETURN
1 $168,000 –
2 (Current) $170,520 6.25%
3 $173,078 6.35%
4 $175,674 6.45%
5 $178,309 6.54%
6 $180,984 6.64%
7 $183,698 6.74%
8 $186,454 6.84%
9 $189,251 6.94%
10 $192,090 7.05%
11 $194,971 7.15%
12 $197,895 7.26%
13 $200,864 7.37%
14 $203,877 7.48%
15 $206,935 7.59%
16 $210,039 7.71%
17 $213,190 7.82%
18 $216,387 7.94%
19 $219,633 8.06%
20 $222,928 8.18%
OPTION YEARS OPTION RENT RETURN
Option Year 1 $226,272 8.30%
Option Year 2 $229,666 8.43%
Option Year 3 $233,111 8.55%
Option Year 4 $236,607 8.68%
Option Year 5 $240,156 8.81%
CJM:kmo:1215:01
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.Net Lease Investment Services
Popeyes Louisiana Kitchen Rapid City, South Dakota
SITE INFORMATION The subject property sits on approximately 1.50 acres of land and is comprised
of approximately 2,888 square feet of building space.
The subject property is located at 1323 E North Street, Rapid City, South Dakota.
It is well positioned on Business Route 90, which has an average traffic volume
of over 25,000 vehicles per day. The subject property is easily accessible via
Business Route 90 (E North Street) and Interstate 90.
Nearby tenants include Menards, On the Border, Kmart, Burger King, Taco Bell,
KFC, McDonald’s, and Wendy’s.
AREA RETAILERS Rushmore Mall - Anchored by JCPenney, Sears and Herberger’s. Other major
retailers include Aeropostale, American Eagle Outfitters, Arby’s, Bath & Body
Works, Champs, Charlotte Russe, Chico’s, Eddie Bauer, Famous Footwear, Foot
Locker, Fuddruckers, GameStop, GNC, Gymboree, Hobby Lobby, Journey’s,
Olive Garden, Payless, Planet Fitness, ProImage Sports, Red Lobster, rue21,
Starbucks, Subway, Texas Roadhouse, Torrid, Toys “R” Us, Victoria’s Secret,
Vitamin World, Zales and Zumiez.
Rushmore Crossing - The newest shopping center in Rapid City. Major retailers
include Target, Gap, dressbarn, Lane Bryant, Bed Bath & Beyond, TJMaxx, Sam’s
Club, GameStop, Dollar Tree, Scheel’s, Ulta, OshKosh and Gordman’s.
RAPID CITY, SOUTH DAKOTA Rapid City (population 67,956) is the second-largest city in South Dakota and
the county seat of Pennington County. Known as the “Gateway to the Black
Hills” and the “City of Presidents”, Rapid City is split by a low mountain ridge
that divides the western and eastern parts of the city.
ECONOMY
Rapid City’s economy is diverse. Rapid City is the center for the manufacture
of Black Hills gold jewelry, a popular product with tourists and Westerners in
general. Rapid City is also the location of the only manufacturer of stamping
machines used for the labeling of plywood and chipboard products.
Tourism is also a major portion of the Rapid City economy, due to the proximity
of Mount Rushmore, Sturgis, home of the Sturgis Motorcycle Rally, Deadwood,
and other attractions in the Black Hills. Rapid City is the major source of services
for the Motorcycle Rally, and the Rally’s demand for motel rooms, camp sites,
and other services for tourists during the first week of August means that Rapid
City has the capacity to host large conventions and large numbers of tourists
year-round. Various minor tourist attractions, including wildlife parks, specialty
shops, caves, water parks, private museums, and other businesses are found in
and near Rapid City.
CJM:kmo:1215:01
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.Net Lease Investment Services
Popeyes Louisiana Kitchen Rapid City, South Dakota
RAPID CITY, SOUTH DAKOTA ECONOMY (CONTINUED)
(CONTINUED) The largest sector of the Rapid City economy is government services, including
local, state, and federal. Major employers include Ellsworth Air Force Base
(located on the outskirts of the city) home of the 28th Bomb Wing flying the
B-1B long-range bomber; the Army National Guard based at Camp Rapid and
hosting annual exercises in the Black Hills drawing troops from five to ten
states; and various federal agencies including the National Park Service, US
Forest Service, and Indian Health Service.
Other economic sectors include financial service and investing companies such
as Waddell and Reed, Citibank, WaMu, Merrill Lynch, and Northwestern Mutual.
Rapid City is the headquarters for Assurant Insurance’s pre-need division and
Rapid City has a strong medical services sector, and institutions of higher
education. Rapid City is also the major market town for much of five states,
drawing commerce from more than half of South Dakota, and large portions of
North Dakota, Montana, Wyoming, and the Nebraska Panhandle.
TRANSPORTATION
Rapid City is a major transportation hub for the Northern Plains. Rapid City
Regional Airport (RAP) provides flights to the airline hub cities of Denver,
Minneapolis, Salt Lake City, Dallas-Fort Worth, Las Vegas, Phoenix/Mesa,
Houston, Atlanta and Chicago.
Interstate 90 (I-90) is the primary east-west route for Rapid City. Rapid City
is served by a series of 7 exits. I-90 skims the northern side of Rapid City. US
Highway 16 is the main route to the southwest and the Black Hills from Rapid
City. It links Rapid City to Custer and then west to Newcastle, Wyoming, where
it connects to US Highway 85 for travel to Cheyenne and Denver. South Dakota
Highway 44 is a state highway that links the interior of the Black Hills to the
southwest of Rapid City, and the Pine Ridge Indian Reservation and nearby
areas in the Great Plains to the southeast.
NOTE The information set forth herein has been received by us from sources we
believe to be reliable, but we have made no independent investigation of the
accuracy or completeness of the information and make no representations with
respect thereto. The above is submitted subject to errors, prior sale or lease,
change in status, or withdrawal without notice.
SOUTH DAKOTA
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The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.C
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Popeyes Louisiana Kitchen Rapid City, South Dakota
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The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.Net Lease Investment Services
Popeyes Louisiana Kitchen Rapid City, South Dakota
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The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.Net Lease Investment Services
Popeyes Louisiana Kitchen Rapid City, South Dakota
2015 Summary 5 miles 10 miles 15 miles
Population 73,555 106,884 115,316
Households 30,786 43,618 47,057
Families 18,155 27,726 30,335
Average Household Size 2.31 2.38 2.38
Owner Occupied Housing Units 17,388 27,004 29,893
Renter Occupied Housing Units 13,398 16,614 17,164
Median Age 34.8 35.5 36.2
Median Household Income $42,840 $47,936 $49,225
Average Household Income $54,565 $64,471 $65,776
2020 Projected Summary
Population 78,214 114,261 123,489
Households 32,979 46,951 50,741
Families 19,281 29,643 32,500
Average Household Size 2.30 2.37 2.37
Owner Occupied Housing Units 18,605 29,051 32,230
Renter Occupied Housing Units 14,374 17,900 18,511
Median Age 35.3 36.2 36.9
Median Household Income $50,879 $55,972 $57,361
Average Household Income $63,441 $74,829 $76,304
Trends: 2015-2020 Annual Rate
Population 1.24% 1.34% 1.38%
Households 1.39% 1.48% 1.52%
Families 1.21% 1.35% 1.39%
Owner Households 1.36% 1.47% 1.52%
Median Household Income 3.50% 3.15% 3.11%
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