Texas Roadhouse 1051 Baltimore Pike - Glen Mills, PA (Philadelphia MSA) - Confidential Offering Memorandum - JLL
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Texas Roadhouse 1051 Baltimore Pike – Glen Mills, PA (Philadelphia MSA) Confidential Offering Memorandum ©2018 Jones Lang LaSalle IP, Inc. All rights reserved.
Investment Summary 03
Tenant Overview 05
Market Overview 07
JLL Contacts 10
2
Investment Summary
Texas Roadhouse – Glen Mills, PA
3
Investment Summary Texas Roadhouse | Glen Mills, PA
JLL is pleased to offer for sale a Texas Roadhouse (the “Property” or “Asset”) ground lease located in Glen Mills, PA (Philadelphia MSA).
Situated within an affluent community 20 miles west of downtown Philadelphia, the Property possesses location stability within a dense retail market while also in close
proximity to large employers. The immediate area hosts leading national tenants including Costco, Toyota, Target and Home Depot. Nearby employers include State Farm
Insurance, Deloitte and Maris Grove Retirement Community. The Asset features eight years of term remaining on a triple-net ground lease with a ten percent rent escalation
in January 2022. Leased to Texas Roadhouse on a corporate guarantee, the Asset offers strong in-place tenancy from a restaurant chain with over 560 locations and
consistent financial growth.
INVESTMENT HIGHLIGHTS PROPERTY SUMMARY
• The lease is guaranteed by Texas Roadhouse, a restaurant operator with
over 560 locations and over 30 consecutive quarters of same-store sales Address 1051 Baltimore Pike
growth. Glen Mills, PA 19342
Price $2,888,889
NOI $130,000
• The Asset possesses a NNN ground lease structure with minimal landlord
responsibilities, eight years of primary term remaining and a 10% rent Cap Rate 4.50%
increase in January 2022. Tenant Texas Roadhouse Holdings LLC
Guarantor Texas Roadhouse Holdings LLC
• The lease includes four, five-year renewal options with 10% rent Guarantor Strength 560+ Locations
escalations in each option.
Lease Type Absolute NNN Ground Lease
LL Responsibilities None
• Glen Mills is a suburb of Philadelphia that boasts a strong demographic Property Type Restaurant
profile of over 80,000 residents and average household income of
$151,699 within a five-mile radius. Building Size 7,135 SF +/-
Parcel Size 1.7 AC
Year Built 2010
• The Asset benefits from its location along Baltimore Pike among a dense
retail and office corridor that includes State Farm Insurance, Southco, Lease Expiration 12/31/2026
Toyota, Costco, Target, Home Depot, Wegmans and Maris Grove
Remaining Lease Term* 8.0 Years
Retirement Community.
Rental Increases 10% Every 5 Years
Renewal Options 4 x 5 Year Options
* As of 1/1/2019
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 4
Tenant Overview Texas Roadhouse – Glen Mills, PA © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 5
Tenant Overview Texas Roadhouse | Glen Mills, PA
Texas Roadhouse
Texas Roadhouse was founded in 1993, when Kent Taylor opened the first location in
Company Texas Roadhouse, Inc. Clarksville, Indiana. Kent’s mission was to own a family restaurant where anyone could get a
great meal and have fun for a fair price. The restaurant serves Western-style food, including
Ticker Symbol NASDAQ: TXRH hand-cut steaks, ribs, burgers and made-from-scratch sides.
Headquarters Louisville, KY Texas Roadhouse Highlights:
Employees (FY 2017) 55,000+
• Comparable restaurant sales grew by 5.8% in the fourth quarter of 2017, marking 32
Revenue (FY 2017) $2.22 Billion consecutive quarters of positive comparable restaurant sales growth.
Market Cap (8/6/2018) $4.61 Billion • The company achieved double-digit revenue growth for fiscal year 2017, with annual
sales growing by 11.5% to $2.22 billion.
S&P Rating N/A
• Texas Roadhouse will continue to expand this year. The company opened 27 restaurants
Number of Locations 560+ in 2017, and the development pipeline is on track to open approximately 20 company
restaurants in 2018.
Business Summary Restaurant
Meals Served Per Day 300,000+ • With just over 560 locations in the U.S., Texas Roadhouse is about half the size of
Outback Steakhouse. However, Texas Roadhouse is valued at more than $4 billion while
Outback is valued at under $2 billion.
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 6
Market Overview Glen Mills, PA (Philadelphia MSA) © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 7
Market Overview Texas Roadhouse | Glen Mills, PA
Glen Mills, PA
Glen Mills, PA is an unincorporated community in Concord Township, PA with a population of 19,000 residents. Glen Mills is located about 27 miles west of
Philadelphia and is the 33rd largest community in Pennsylvania. Glen Mills has seen a significant amount of newer housing growth in recent years with its
population increasing over 65.8% since 2000.
Philadelphia, PA
Philadelphia, PA, the largest city in the State of Pennsylvania, the nation’s sixth largest city, and eight largest metropolitan area, is situated in the heart of the
northeast corridor and is the keystone of major north-south, east-west highway and rail networks. Situated along the Delaware River and Pennsylvania-Delaware
border, more than 100 million people are within a one-day drive of Philadelphia. The Greater Philadelphia market area spans nineteen counties in Southeastern
Pennsylvania, Sothern New Jersey and Northern Delaware.
Economy & Grow th Considerations Demographic Information
Philadelphia boasts strong economic fundamentals. The Gross Metropolitan Product 1-mile radius 3-mile radius 5-mile radius
for the Philadelphia Region is the eight largest in the U.S. ($416.4 billion in 2016). The 2018 Population 2,804 30,034 80,910
strength and desirability of Greater Philadelphia is characterized by its economic Average Household Income $139,219 $166,267 $151,699
diversity and population density. Its location, high concentration of education, medical, Median Household Income $86,808 $117,959 $112,859
and government facilities, and a strong transportation network underscore these Freestanding Retail Market Statistics
strengths. Residents of the Philadelphia area have always enjoyed a quality of life Market Submarket
ranked among the highest in the country. In addition to the numerous and growing Philadelphia Delaware County
number of high quality urban housing opportunities, there are abundant desirable # of Buildings 46,938 1,653
Total Inventory (SF) 319,946,012 12,290,137
suburban comminutes that are easily accessible by one of the country’s best highway
Total Vacancy 3.1% 3.0%
and mass transit systems. YTD Net Absorption (SF) 736,036 9,105
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 8
Market Overview Texas Roadhouse | Glen Mills, PA Market Dynamics – Aerial Mapping © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 9
JLL Contacts Texas Roadhouse | Glen Mills, PA
Contact Information
ADVISOR
Nathan Cleland
Philadelphia, PA
JLL Capital Markets
+1 215 988 5573
nathan.cleland@am.jll.com
BROKER OF RECORD
James Galbally
Philadelphia, PA
JLL Capital Markets
+1 215 988 5551
james.galbally@am.jll.com
1650 Arch Street, 25th Floor | Philadelphia, PA 19103
www.us.jll.com/capitalmarkets
Copyright © Jones Lang LaSalle IP, Inc. 2018
This publication is the sole property of Jones Lang LaSalle and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle.
The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information.
We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance
on this publication. Jones Lang LaSalle Americas, Inc., California license # 01223413. Jones Lang LaSalle Americas, Inc. License # 19262.
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