Westworth Village (Fort Worth), TX Confidentiality Agreement The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Net Lease Disclaimer Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property Pricing & Financial Analysis Sonic FINANCIAL ANALYSIS Sonic Ground Lease 6640 Westworth Boulevard Westworth Village, TX 76114 Offering Summary $1,615,000 5.50% $88,800 2007 1,642 SF 0.873 Acres PROPERTY DESCRIPTION Price Cap Rate Net Operating Income Year Built Gross Leasable Area (GLA) Lot Size Lease Summary 15 Years 11/01/2007 10/31/2022 8 Years Ground Lease Tenant 11% Every Five Years Four Five-Year No No No Annualized Operating Data Years Yrs 1-5 Yrs 6-10 Yrs 11-15 Option 1 Option 2 Lease Dates 11/01/2007 - 10/31/2012 11/01/2012 - 10/31/2017 11/01/2017 - 10/31/2022 11/01/2022 - 10/31/2027 11/01/2027 - 10/31/2032 Annual $80,000 $88,800 $98,568 $109,410 $121,456 Option 3 Option 4 11/01/2032 - 10/31/2037 11/01/2037 - 10/31/2041 $134,805 $149,633 Net Operating Income MARKET OVERVIEW Lease Term Lease Commencement Lease Expiration Years Remaining in Lease Lease Type Roof & Structure Increases Options Options to Terminate Options to Purchase First Right of Refusal $88,800 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID V0060564 4 Tenant & Lease Information Sonic Sonic Corporate SONC N/R N/A Corporate Oklahoma City, OK 3,517 www.sonicdrivein.com $545.9 Million 1.238 Billion 50+ Years PROPERTY DESCRIPTION Sonic Corp. is an American drive-in fast-food restaurant chain based in Oklahoma City, Oklahoma. As of August 31, 2011, there were 3,561 restaurants in 43 U.S. states, serving approximately three million customers per day. In 2011, it was ranked 10th in QSR Magazine’s rankings of the top 50 quick-service and fast-casual restaurant brands in the nation. Known for its use of carhops on roller skates, the company annually hosts a competition to determine the top skating carhop in its system. It also hosts, with Dr Pepper, an internal competition between drive-in employees. The company’s slogan is “America’s Drive-In.” Tenant Name Ownership NASDAQ Rating Agency Lease Guarantor Headquartered No. of Locations Website Sales Volume Market Cap Years in Business FINANCIAL ANALYSIS Tenant Summary MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID V0060564 5 Investment Highlights Sonic FINANCIAL ANALYSIS PROPERTY DESCRIPTION • Rare Corporate Sonic Ground Lease • Phenonmenial Location with Below Market Rent • Guaranteed by Investment Grade Tenant - $1.23 Billon Dollar Market Cap • Adjacent to Walmart, Sam’s, Lowe’s, and Target • 11 Percent Rent Increases Every Five Years, Protection Against Inflation • Traffic Counts exceed 32,000 Vehicles per Day - Located on Highway 183, Just North of Interstate 30 • 195,000 People in Five-Mile Radius - 13 Percent Increase Since 2000 Marcus & Millichap is pleased to present Sonic, a 1,682-square foot property situated on 0.873 acres in Westworth Village, Texas. Sonic is backed by a corporate guarantee, and currently has eight years remaining on a 15-year ground lease. Overall, Sonic provides an investor the ability to acquire a national credit tenant with four five-year options to renew and zero landlord responsibility in a growing area in Fort Worth, Texas. Sonic is located on West Westworth Boulevard, surrounded by both Shady Oaks Golf Club and Hawks Creek Golf Club. Sonic is just east of Naval Air Station Joint Reserve Base in Fort Worth, Texas, and the Lockheed Martin Corporation. The property is surrounded by many national retailers including Sam’s Club, Party City, Walmart, Target, Lowe’s and many others. Sonic is also located less than two miles from Ridgmar Mall which hosts many national retailers including Dillard’s, Macy’s, GNC, Sears, JCPenney, American Eagle Outfitters, Sunglass Hut, Lens Crafters, Foot Locker, and many others. MARKET OVERVIEW • Located between Chick-fil-A and Wells Fargo, Surrounded by Shady Oaks and Hawks Creek Golf Club, Ridgmar Mall, LA Fitness, and Many Other National Credit Tenants Overview Overall, Sonic provides an investor the ability to acquire a national credit tenant with zero landlord responsibility in a growing area in Fort Worth, Texas. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID V0060564 6 Aerial Map Sonic FINANCIAL ANALYSIS PROPERTY DESCRIPTION h rt o tw es W vd l B MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID V0060564 7 Local Map Sonic FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID V0060564 8 Regional Map Sonic FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID V0060564 9 Market Summary Sonic FINANCIAL ANALYSIS The Fort Worth Stockyards now celebrates Fort Worth’s long tradition as a part of the cattle industry and was listed on the National Register as a historical district in 1976. The listing included 46 contributing buildings and one other contributing structure. The Stockyards consist of mainly entertainment and shopping venues that capitalize on the “Cowtown” image of Fort Worth. Home to the famous boot making company M.L. Leddy’s which is located in the heart of the Stockyards and The Maverick Fine Western Wear and Saloon where customers “can ‘belly up’ to the bar, relax and have a cold beer while in the Stockyards; just like they did in the days of the big cattle drives”, as they shop around the store. Many bars and nightclubs (including Billy Bob’s Texas) are located in the vicinity, there is also an opry and a rodeo. The Fort Worth Stockyards are the last standing stockyards in the United States. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID V0060564 11 MARKET OVERVIEW The city of Fort Worth is often referred to as “Where the West Begins.”Fort Worth is the 17th-largest city in the United States of America and the fifth-largest city in the state of Texas. Located in North Central Texas, and covers nearly 350 square miles (910 km2) in Tarrant, Denton, Parker, and Wise counties. According to the 2013 census estimates, Fort Worth had a population of 792,727. The city is also home to Texas Christian University, Texas Wesleyan University, University of North Texas Health Science Center, Texas A&M University School of Law, and many multinational corporations including Bell Helicopter, Lockheed Martin, American Airlines, American Airlines Group (and subsidiaries American Airlines and Envoy Air), the John Peter Smith Hospital, Pier 1 Imports, RadioShack, the BNSF Railway, and Lockheed Martin. In 2013, Fort Worth-Arlington ranked No. 15 on Forbes’ list of the Best Places for Business and Careers. PROPERTY DESCRIPTION FORT WORTH, TEXAS Demographic Summary Sonic Geography: 5 Miles FINANCIAL ANALYSIS Population In 2013, the population in your selected geography was 195,565. The population has changed by 13.14% since 2000. It is estimated that the population in your area will be 203,657 five years from now, which represents a change of 4.13% from the current year. The current population is 49.4% male and 50.5% female. The median age of the population in your area is 32.8, compare this to the U.S. average which is 37. The population density in your area is 2,390.34 people per square mile. Households There are currently 73,584 households in your selected geography. The number of households has changed by 16.16% since 2000. It is estimated that the number of households in your area will be 77,543 five years from now, which represents a change of 5.37% from the current year. The average household size in your area is 2.58 persons. Income PROPERTY DESCRIPTION In 2013, the median household income for your selected geography is $39,670, compare this to the U.S. average which is currently $53,535. The median household income for your area has changed by 10.21% since 2000. It is estimated that the median household income in your area will be $42,526 five years from now, which represents a change of 7.20% from the current year. The current year per capita income in your area is $23,471, compare this to the U.S. average, which is $28,888. The current year average household income in your area is $61,409, compare this to the U.S. average which is $75,373. Race and Ethnicity The current year racial makeup of your selected area is as follows: 72.28% White, 7.99% African American, 0.82% Native American and 1.39% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.20% White, 12.65% African American, 0.96% Native American and 5.01% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 44.82% of the current year population in your selected area. Compare this to the U.S. average of 16.55%. Housing The median housing value in your area was $65,890 in 2000, compare this to the U.S. average of $110,781 for the same year. In 2000, there were 33,160 owner occupied housing units in your area and there were 29,794 renter occupied housing units in your area. The median rent at the time was $468. MARKET OVERVIEW Employment In 2013, there are 160,294 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 55.7% of employees are employed in white-collar occupations in this geography, and 44.2% are employed in blue-collar occupations. In 2013, unemployment in this area is 3.98%. In 2000, the median time traveled to work was 21.4 minutes. Demographic data © 2010 by Experian/Applied Geographic Solutions. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID V0060564 12 Demographic statistics Sonic Population 1-Mile 3-Miles 5-Miles 2000 Population 10,572 76,573 172,841 2010 Population 11,168 78,342 187,022 2013 Population 11,614 81,455 195,565 2018 Population 11,654 82,520 203,657 1-Mile 3-Miles 5-Miles 2000 Households 3,608 27,575 63,342 2010 Households 3,487 28,176 70,038 2013 Households 3,653 29,365 73,584 2018 Households 3,667 30,159 77,543 2013 Average Household Size 2.71 2.67 2.59 2013 Daytime Population 4,863 37,580 160,294 2000 Median Housing Value $79,148 $68,051 $65,890 2000 Owner Occupied Housing Units 60.05% 51.54% 48.29% 2000 Renter Occupied Housing Units 29.16% 41.09% 43.39% 6.17% 7.14% 7.72% 2013 Owner Occupied Housing Units 64.72% 53.23% 51.47% 2013 Renter Occupied Housing Units 35.28% 46.77% 48.53% 2013 Vacant 6.05% 7.11% 8.32% 2018 Owner Occupied Housing Units 64.56% 52.59% 51.38% 2018 Renter Occupied Housing Units 35.44% 47.41% 48.62% 2018 Vacant 5.99% 7.09% 8.34% 15.2% 17.4% 16.6% $ 15,000 - $24,999 14.7% 15.4% 14.3% $ 25,000 - $34,999 14.5% 13.3% 13.5% $ 35,000 - $49,999 15.0% 16.0% 15.8% $ 50,000 - $74,999 21.9% 17.3% 17.3% $ 75,000 - $99,999 8.9% 7.8% 9.0% $100,000 - $124,999 6.0% 5.0% 5.1% $125,000 - $149,999 1.2% 2.2% 2.6% $150,000 - $199,999 1.7% 2.2% 2.4% $200,000 - $249,999 0.4% 1.2% 1.3% $250,000 + 0.5% 2.2% 2.2% 2013 Median Household Income $39,057 $38,164 $39,670 2013 Per Capita Income $16,848 $21,846 $23,471 2013 Average Household Income $50,350 $59,750 $61,409 Traffic Counts MARKET OVERVIEW 2000 Vacant $ 0 - $14,999 PROPERTY DESCRIPTION Households 1-Mile 3-Miles 5-Miles FINANCIAL ANALYSIS Income 32,120 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID V0060564 13
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