Red Lobster - Absolute NNN - OFFERING MEMORANDUM 7401 Rogers Avenue | Fort Smith, Arkansas 72903 - LoopNet
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Red Lobster - Absolute NNN
7401 Rogers Avenue | Fort Smith, Arkansas 72903
100% OCCUPIED
OFFERING MEMORANDUM SINGLE TENANT
SAGEPARTNERS.COM
THE OFFERING
TOTAL PURCHASE PRICE $7,000,000 TENANT Red Lobster Restaurants, LLC
CAP RATE 6.15% Corporate Guaranty | 704 Locations in the
NET OPERATING INCOME $431,187 US & Canada
LEASE TYPE Absolute NNN Lease GUARANTOR Red Lobster Intermediate Holdings, LLC
LEASE TERM 25 years ADDRESS 7401 Rogers Avenue, Fort Smith, Arkansas 72903
LEASE TERM REMAINING 18.5 +/- years FACILITY TYPE Single Tenant
LEASE EXPIRATION 12/31/2039 YEAR OPENED 1980
RENT INCREASES 2.00% Annually YEAR RENOVATED 2014
RENEWAL OPTIONS Four (4), Five (5) Year Options LOCATION Fort Smith, AR is located in Northwest Arkan-
RENTAL INCREASES IN OPTIONS 2.00% Annually sas. It is also the principal city in the Fort Smith,
BUILDING SIZE 7,886 +/- SF AR-Oklahoma MSA. The city is home to large
STORIES One manufacturing plants, several medical centers,
SITE AREA 2.10 +/- acres and the University of Arkansas at Fort Smith.
OCCUPANCY 100%
BUILDING SIZE ±7,886 SF
LAND AREA ±2.10 acres
Sale Price: $7,000,000
Cap Rate: 6.15%
Information deemed reliable but not guaranteed.
FINANCIAL OVERVIEW
INVESTMENT SUMMARY ANNUALIZED OPERATING DATA
Cushman & Wakefield/Sage Partners is pleased to present the exclusive listing Current Annual Rent1 $431,187
for a Red Lobster property located in Fort Smith, Arkansas. The property Base Term Rental Escalations 2.00% Annually
consists of 7,886 square feet of building space and is situated on approximately
2.10 acres of land. The property is subject to a 25 year Absolute Triple Net
1 NOI based on August 2021 Rental Increase
(NNN) lease with 18.5 +/- years remaining on the base term. The current rent RENT SCHEDULE
is $431,187 and will continue to increase by 2.00% annually. The increases will LEASE YEAR ANNUAL RENT MONTHLY RENT
continue through the four, five-year tenant renewal options. Year 8 $431,187 $35,932
6.15%
Year 9 $439,811 $36,651
CAP RATE Year 10 $448,607 $37,384
$7,000,000
Year 11 $457,579 $38,132
PURCHASE PRICE Year 12 $466,731 $38,894
Year 13 $476,065 $39,672
Year 14 $485,587 $40,466
Year 15 $495,298 $41,275
Year 16 $505,204 $42,100
Year 17 $515,308 $42,942
Year 18 $525,615 $43,801
Year 19 $536,127 $44,677
Year 20 $546,849 $45,571
Year 21 $557,786 $46,482
Year 22 $568,942 $47,412
Year 23 $580,321 $48,360
Year 24 $591,927 $49,327
Year 25 $603,766 $50,314
Information deemed reliable but not guaranteed.
OFFERING MEMORANDUM 3
SITE OUTLINE
S 74TH STREET
ROGERS AVENUE
OFFERING MEMORANDUM 4
TENANT PROFILE
THE STORY OF RED LOBSTER®
Before there was Red Lobster, there was Bill Darden, a man pas-
sionate about making delicious, high-quality seafood available
and affordable to everyone, including people who lived far from
the coast and regardless of race, gender, religion or economic
means. What was once a single, family-owned restaurant in Lake-
land, Florida, now has over 700 locations around the world.
A Lifelong Commitment
TRACEABLE
Red Lobster has been committed to seafood sustainability
since we first opened our doors in 1968. As a founding mem-
ber of the Global Aquaculture Alliance (GAA) in 1997, we helped
establish guidelines for best practices and aquaculture certi- All our seafood is 100% traceable to a
fications. We’re also proud to have spent decades building per-
sonal relationships with suppliers who share our values. known and trusted source
TRACEABLE, SUSTAINABLE, RESPONSIBLE SOURCING
Wild-Caught + Farm-Raised Seafood
SUSTAINABLE
Why Wild-Caught? Sustainable – we only source from suppliers
Catching in the wild provides a variety of great seafood.
We strive to work with fishermen who share our commit-
who follow industry best practices
ment to sustainability, ensuring that wild fish and shell-
fish populations remain healthy and thriving.
Why Farm-Raised?
RESPONSIBLE
Responsible farming allows us to provide high-quali- Responsible – we support and follow regulatory
ty seafood year-round. A mindful combination of wild-
caught and farm-raised seafood helps avoid depleting efforts that manage fish populations and
wild populations to keep marine ecosystems healthy. mandate our suppliers comply with all
applicable laws
Information deemed reliable but not guaranteed.
OFFERING MEMORANDUM 5
TENANT PROFILE
OVER 700 LEADERSHIP
LOCATIONS
KIM LOPDRUP TOM GATHERS HORACE G. DAWSON III
Chief Executive Officer Chief Operating Officer EVP, General Counsel
CORE VALUES
RESPECT
INTEGRITY
GENUINE CARING
HOSPITALITY
TEAMWORK
EXCELLENCE
CRAIG POMMELLS NELSON GRIFFIN
FUN
EVP, Chief Financial EVP, Chief Procurement
Officer and Real Estate Officer
2021 – Recognized by Newsweek – America’s Best Loyalty Programs 2021
2017 – Recognized by Nation’s Restaurant News- Ranked Top Restaurant Brand Among Ages 18-24
2016 – Recognized by Nation’s Restaurant News- Ranked Top Full-Service Restaurant for True Loyalty
2020: The Best Employers for Diversity
2019: America’s Most Reputable Companies
2019: America’s Best Large Employers
Information deemed reliable but not guaranteed.
OFFERING MEMORANDUM 6
HISTORY OF RED LOBSTER
1968 FRESH SEAFOOD FOR EVERYONE 2008 GET FIRED UP
Bill Darden opens the first Red Lobster in Lakeland, Florida. We bring wood-fire grills into our kitchens and train Certified Grill Masters to
let the natural flavors of our seafood take center stage.
1970 BUSINESS BOOMS
Red Lobster catches the attention of General Mills. Backed by their resources, 2010 A MAINE MAKEOVER
Red Lobster restaurants rapidly multiply from coast to coast. Our restaurants begin to transform inside and out to a new design and décor,
inspired by the historic fishing village of Bar Harbor, Maine.
1974 SHRIMP BECOMES SNACK-WORTHY
Red Lobster debuts Popcorn Shrimp. People go crazy for it, and rightfully so. 2014 WE CELEBRATE OUR INDEPENDENCE
We begin charting a new course as an independent company.
1979 FOR THE SEAFOOD LOVER IN YOU®
We launch our first of many iconic advertising campaigns, including Life on 2015 A TASTE OF INNOVATION
Land is DryTM, Go OverboardTM and Sea Food DifferentlyTM. As part of our commitment to keeping our menu fresh and our guests happy,
we introduce sustainable, wild-caught selections like Sockeye salmon, as well
1983 O CANADA as bigger and better shrimp options.
We open our first Canadian restaurant in Ontario.
2017 REWARDING OUR LOYAL GUESTS
1984 LOBSTER LOVERS, REJOICE The My Red Lobster Rewards program is born, rewarding guests for doing
We have our first Lobsterfest — and a Valentine’s Day tradition is born. what they already love to do – enjoy delicious seafood at Red Lobster.
1992 BEHOLD BISCUIT MANIA 2018 PARTNERING TO SET SEAFOOD STANDARDS
Cheesy garlic goodness comes together to create our legendary Cheddar We unveil our Seafood with Standards commitments and engage in part-
Bay Biscuits™. nerships to help drive continuous improvement within our supply chain.
We also become the first large casual dining restaurant company to make a
1995 RED LOBSTER CHARTS A NEW COURSE commitment to eliminate plastic straws from our restaurants, promising to
General Mills spins-off its restaurant division as Darden Restaurants, Inc. begin replacing plastic straws with an eco-friendly alternative straw by the
end of 2020.
1999 TAKING CARE OF OUR OWN
We establish an Employee Emergency Assistance Fund, now called RL Cares, 2019 WORKING TO PROTECT AND PRESERVE OUR OCEANS
to help fellow employees facing financial hardship. Through a partnership with Ocean Conservancy®, a leading ocean conser-
vation nonprofit, we have focused on two programs: The Global Ghost Gear
2003 FEEDING THE HUNGRY Initiative, which focuses on driving solutions to the problem of lost and
We start donating unused food to local food banks and homeless shelters abandoned fishing gear, and the Trash Free Seas Alliance®, which unites
through a program we now call RL Shares. Since its launch, we’ve donated leaders to mitigate plastic waste entering the oceans.
about 20 million meals.
2021 CELEBRATING OUR EMPLOYEES AND OUR GUESTS
2004 LOVE AT FIRST SHRIMP We are recognized on the Forbes list of America’s Best Large Employers
Our Endless ShrimpTM event launches and it’s a huge success. 2021, and our My Red Lobster Rewards Program is named to Newsweek’s list
of America’s Best Loyalty Programs 2021.
2006 BRING ON THE FRESHNESS
“Today’s Fresh Fish” menu makes its debut, bringing fresh, regional seafood
to Red Lobsters everywhere.
Information deemed reliable but not guaranteed.
OFFERING MEMORANDUM 7
AERIAL
38,000 VPD
Stone Village Shopping Center
S 74TH STREET
ROGERS AVENUE
OFFERING MEMORANDUM 8
FORT SMITH, AR
2ND LARGEST CITY IN ARKANSAS
Fort Smith, AR is located in Northwest Arkansas. It is one of two cities that make up the county
2nd
Largest city in Arkansas
seat of Sebastian County. It is also the principal city in the Fort Smith, AR-Oklahoma MSA,
which encompasses Crawford, Franklin, Sebastian, Le Flore and Sequoyah counties.
The city is home to large manufacturing plants, several medical centers, and the University of Arkansas at
Fort Smith. Located along the Arkansas River, the area celebrates its wild west history and offers several
283,000+
museums and annual festivals. The MSA population totals 283,000+ people. Fort Smith MSA population
DOWNTOWN FORT SMITH
OFFERING MEMORANDUM 9
FORT SMITH, AR
ECONOMY THE UNIVERSITY OF ARKANSAS - FORT SMITH
Thousands of residents in Fort Smith are employed in the
manufacturing, trucking, food-processing, medical and higher
education sectors.
The total number of employees in the Fort Smith MSA is over 117,000 residents.
The area is an important hub for shopping and consumers and is home to ABB,
as well as, Hiram Walker’s blending and bottling facility.
Mercy Fort Smith and Baptist Health are two medical centers in the area that
employee over 4,700 residents.
There are also higher education opportunities in Fort Smith. Home to The
University of Arkansas at Fort Smith with a total enrollment of 6,260 students
in the fall of 2019. The University also employees over 1,200 people. Webster
College & John Brown University have four-year programs through satellite
facilities in the area as well.
117,000 6,260 MERCY FORT SMITH
Total employees in Total enrollment at The University
Fort Smith MSA of Arkansas at Fort Smith
FORT SMITH MSA LARGEST EMPLOYERS
EMPLOYER JOBS EMPLOYER JOBS
O.K. Foods Inc. 3200 City of Fort Smith 1100
Mercy-Fort Smith 3100 Bost, Inc. 1000
Fort Smith Public Schools 2300 Rheem Manufacturing Co. 900
Baptist Health-Fort Smith 1700 188th Wing 900
ArcBest 1600 Choctaw Casino & 700
Resort Pocola
ABB 1600
Skyes Enterprises 600
University of Arkansas 1200
- Fort Smith
OFFERING MEMORANDUM 10FORT SMITH, AR
AREA ATTRACTIONS SEBASTIAN COUNTY COURTHOUSE
The city offers a rich heritage and diverse culture giving residents opportunities to
learn the area’s history at one of the many museums and historic attractions.
Fort Smith National Historic Site is a unit of the National Park Service in downtown Fort
Smith. It is located along the Arkansas River and is comprised of two military posts, federal
courthouse, and two jails used during the 19th century.
In November 2020, Fort Smith announced that it had raised $1M in donations for a new US
Marshals Museum. It is expected to open in 2022. The building is a unique star shaped design
representing the star badge worn by US Marshals. It will feature 5 immersive galleries.
The Downtown area offers many opportunities for shopping dining, arts, nightlight and
entertainment.
Central Mall is the largest shopping center in the region and is anchored by JCPenney and
Dillard’s.
There are plenty of outdoor recreational opportunities (hiking and canoeing) at Fort Smith
State Park, Devil’s Den State Park and at the Mulberry River.
US MARSHALS MUSEUM - RENDERING
OFFERING MEMORANDUM 11ARKANSAS WHY ARKANSAS?
UNMATCHED ECONOMIC DIVERSITY
1
Arkansas is home to some of the biggest names in US industry, and 2
WALMART
continues to expand as these companies invest in their home state. 3 2001 SE 10th St,
Walmart, Tyson, and JB Hunt all call Arkansas home, and have Bentonville, AR 72712
made significant socioeconomic investments that have contributed
to the state’s explosive growth. Connected by 5 major interstates, 49
the Mississippi River, major rail systems, and the Port of Arkansas
in Little Rock, the state of Arkansas is poised for future growth.
40
#1 Corporation In US: JB HUNT
615 J.B. Hunt Corporate Drive,
Bentonville, Arkansas is home to Walmart, which remains the Lowell, AR 72745
#1 corporation on the Fortune 500 list.
5 Fortune 500 Companies: TYSON FOODS
40
2200 W Don Tyson Pkwy,
In addition to Walmart, Arkansas is home to Tyson, JB Hunt, 4
Springdale, AR 72762
Dillards, and Murphy USA
World Class Healthcare: 530
Little Rock is Arkansas’ healthcare hub supplying 30,000+ 30
jobs to the economy and treating patients from throughout
the state DILLARDS
1600 Cantrell Rd,
Little Rock, AR 72201
Significant Tech Investments:
Spurred by Walmart’s continued growth, NW Arkansas
has turned into a viable alternative to Silicon Valley for
many start ups. Additionally, Amazon has made significant
investments in Little Rock over the past 3 years.
49
MURPHY USA 5
World Class Education: 200 E. Peach Street,
Fayetteville is home to the University of Arkansas with El Dorado, AR 71730
32,000+ combined jobs and students, and Little Rock boasts
49
60,000 total students among its 16 colleges and universities.
CUSHMAN & WAKEFIELD/SAGE PARTNERS 1
OFFERING MEMORANDUM 12COMPANY OVERVIEW
WHY USE SAGE PARTNERS
We are proud of the success the company has had because it is based
on a very simple equation of “good people + hard work + intelligent,
long term vision equals long term success.” What impresses people is
consistent hard work, market knowledge, quality and the character of
team members.
OUR MISSION
“Our team will work with faith and integrity, utilizing our experience
and expertise to provide superior real estate services to the benefit of
our clients, families, and community.”
CORE VALUES
Practice Integrity -
We always try to do what’s right... in all settings,
no matter the cost
A FIRM POWERED BY EXPERIENCE
Cushman & Wakefield | Sage Partners (“Sage Partners”) specializes in provid- Clients are Supreme -
ing commercial real estate brokerage, management and development ser- We want our clients to see that we are outstanding
vices in the state of Arkansas. Sage combines the technical, market, financial, with our experience, knowledge, effort and results
and industry expertise of seasoned professionals to create a full-service
commercial real estate company. The Sage team has many years of in-depth Be Entrepreneurial -
experience that provides solutions through a combination of services. We are proactive and creative in solving problems
and seizing opportunities
Diversified experience provides Sage Partners with a unique perspective
combining an insight of national trends with unparalleled local knowledge. Teamwork Wins -
Additionally, Sage brings a unique database of brokers, clients, contacts, We can achieve more with all of us than individually
bankers, and investors from vast local, regional, and national experiences.
This combination brings real solutions to clients’ needs and ensures thor- Give Back -
ough market penetration in all respects. We want to invest in our community with meaningful generosity
OFFERING MEMORANDUM 13CONTACT INFORMATION
Cushman & Wakefield | Sage Partners - Capital Markets Division
Matt Imhoff’s contributions to Cushman & Wakefield | Sage Partners include advising and representing corporations and individuals in
commercial real estate. He is focused on investment sales of office, industrial, and retail properties and has directly transacted on more
than $300 million dollars worth of commercial real estate.
Prior to joining Cushman & Wakefield | Sage Partners, Matt was an executive in the technology industry and started, grew, and sold a
financial software company. Matt lives in Rogers, Arkansas with his wife and two young kids.
Clients Served
Private Investors
Harps Food Stores
Major Transactions
7 Office Buildings, Walton Blvd and Rainbow Curve, Bentonville AR – $28.3M – 138,000 SF
2 Medical Office Buildings, 500 S University Little Rock, AR – $34.4M - 260,000 SF
7 Office & 2 Flex Buildings, Otis Corley & J St, Bentonville AR – $25.1M – 233,000 SF
Matt Imhoff, CCIM
7 Tenant Office, 3350 S Pinnacle Hills Parkway, Rogers AR – $10.4M – 4 3,500 SF
VIce President
Single Tenant Industrial 2710 S 48th St Springdale AR - $16.7M – 40,000 SF
mimhoff@sagepartners.com
Tenants from Transactions: Harps Food Stores, Brookshires, Dollar General, Dollar Tree, DaVita Dialysis, Freddy’s Custards, McAlister’s,
Taco Casa, Red Lobster, Starbucks, Walmart, Tractor Supply, Goodwill, Shell, Exxon, Coleman, Clorox, Planet Fitness, Barton’s, BNSF
Logistics, United Rentals
5100 W. JB Hunt Drive
Specialties: Investment Sales Broker Suite 800
Rogers, Arkansas 72758
Markets: Fayetteville/Springdale/Rogers, Fort Smith 479 845 3000
Property Types: Office, Industrial, Retail, Flex, Hospitality, Health Care, Specialty, Sports & Entertainment
sagepartners.com
Education: BS in Electrical Engineering from the University of Arkansas
MS in Technological Entrepreneurship from Northeastern University in Boston, MA.
Associations: CCIM - Certified Commercial Investment Member
CUSHMAN & WAKEFIELD | SAGE PARTNERS DISCLOSURE
Cushman & Wakefield | Sage Partners has been engaged by the owner of the Property to market it for sale. Information concerning the Property has been obtained from sources other than Sage Partners and
we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any references to age, square footage, income, expenses and any other Property specific
information are approximate. Any opinions, assumptions, estimates, or financial information contained herein are projections only and are provided for illustrative purposes and may be based on assumptions or due
diligence criteria different from that used by a purchaser. Buyers should conduct their own independent investigation and inspection of the Property in evaluating a possible purchase. The information contained
herein is subject to change.
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