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ROME, GA
OFFERING MEMORANDUM
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LISTED BY
CONRAD SARREAL SENIOR ASSOCIATE DIR: 214.692.2847 MOB:
626.230.1006 [email protected] LIC # 01982875 (CA)
KYLE MATTHEWS BROKER OF RECORDLICENSE NO. 67120 (GA)
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TABLE OF CONTENTS
EXECUTIVE OVERVIEW4 FINANCIAL OVERVIEW8
TENANT OVERVIEW10 AREA OVERVIEW11
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EXECUTIVE OVERVIEW
• Rare Corporate Lease – Unlike the majority of QSR deals on the
market that are only backed by franchisees, the subject property is
leased to Hardee’s Restaurants, LLC. Carl’s Jr. Restaurants LLC and
Hardee’s Restaurants LLC have over 3,800 franchised or
company-operated restaurants in 44 states and 43 foreign countries
and U.S. territories.
• Ideal 1031 Candidate – Hardee’s has 14+ years remaining on the
base term of their lease but has the option to stay at this
location until 2054, offering investors a bond-like and long-term
investment.
• Absolute NNN Lease – The tenant is responsible for taking care
of taxes, insurance, and all maintenance/repairs with regards the
property.
• Multiple Rent increases – Rent is scheduled to increase by 7%
two more times in 2024 and 2029. By the end of the lease, the rent
will be nearly 15% higher than today, offering an excellent hedge
against inflation.
• Latest Prototype – Subject property was recently developed in
2014 which features one of corporate’s newer prototypes.
• Busiest Intersection – Subject property is located on one of
the busiest intersections in town, Turner McCall Blvd and Martin
Luther King Jr Blvd, which is a convergence of multiple main
arteries and services an average of ±57,000 cars per day.
• Driving Distance to Atlanta – Atlanta, one of the country’s
largest metropolitan markets is just over an hour’s drive from
Rome, GA.
• Strong Retail Hub – Some of Rome’s most attractive retailers
are located within a mile of the subject property, which helps
maintain the healthy traffic counts on this intersection. Those
retailers include The Home Depot, Kroger, TJ Maxx, ALDI, Publix
Super Market, Hobby Lobby, Chick-Fil-A, Walgreens, Davita, and many
more
• Government Offices Nearby – Just around the corner are many of
the municipal and county government buildings including the Rome
Police Department, City Hall, Superior Court of Floyd County, Floyd
County Sheriff’s Department, and Rome Municipal Court.
• Walking Distance to Regional Medical Center – The Floyd
Medical Center who serves NW Georgia and NE Alabama is a 304-bed
acute care hospital and regional referral center covering over 40
medical specialties, including three Destination Centers and five
Joint Commission-certified disease-specific programs. Floyd is the
region’s largest employer, with more than 3,000 employees who work
alongside a medical staff of over 300 physician specialists and a
volunteer force of over 350.
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HARDEE’S | 5
T U R N E R M C C A L L B LV D
M A R T I N L U T H E R K I N G J R B LV D
± 5 7, 0 0 0 V P D
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6 | OFFERING MEMORANDUM
CHARLES HEIGHT SQUARES H O P P I N G M A L L
M E D I C A L C E N T E R
± 5 7, 0 0 0 V P D
T U R N E R M C C A L L B LV D
ROMEPOLICE DEPT CITY HALL
FLOYD COUNTYSUPERIOR COURT
FLOYD COUNTYSHERRIF’S OFFICE MUNICIPAL COURT
U R G E N T C A R E
M A R T I N L U T H E R K I N G J R B LV D
M A R T I N L U T H E R K I N G J R B LV D
± 5 7, 0 0 0 V P D T U R N E R M C C A L L B LV D
N B R O A D S T± 1 5 , 1 6 9 V P D
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HARDEE’S | 7
CHARLES HEIGHT SQUARES H O P P I N G M A L L
M E D I C A L C E N T E R
± 5 7, 0 0 0 V P D
T U R N E R M C C A L L B LV D
ROMEPOLICE DEPT CITY HALL
FLOYD COUNTYSUPERIOR COURT
FLOYD COUNTYSHERRIF’S OFFICE MUNICIPAL COURT
U R G E N T C A R E
M A R T I N L U T H E R K I N G J R B LV D
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Address1204 Turner McCall Blvd SE
Rome, GA 30161
GLA of Building ±3,037 SF
Lot Size ±34,708 SF (±0.80 Acres)
BUILDING INFO
$135,951NOI
$2,590,000LIST PRICE
$±0.80 AC
LOT SIZE
5.25%CAP RATE
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Lease Commence Annual Rent Rent/SF Cap Rate
Current $11,329 $135,951 5.25%
Years 11 - 15 $12,122 $145,468 5.62%
Years 16 - 20 $12,971 $155,650 6.01%
Option 1 $13,879 $166,546 6.43%
Option 2 $14,850 $178,204 6.88%
Option 3 $15,890 $190,678 7.36%
Option 4 $17,002 $204,026 7.88%
ANNUALIZED OPERATING DATA
Tenant Name Hardee's
Type of Ownership Fee Simple
Lessee Entity Corporate
Lease Type NNN
Roof and Structure Tenant Responsible
Term Remaining ±14 years
Commencement Date 12/10/14
Lease Expiration Date 12/31/34
Increases 7% Every 5 Years
Options 4,5-Year
ROFR 14 Days
TENANT SUMMARY
Kevin Puder(562) 841-1789
[email protected]
Please contact a Barrington Capital agent for financing
options:
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±3,800LOCATIONS
±23,000EMPLOYEES
$3.46 BREVENUE
CKE Restaurants Holdings, Inc. (“CKE”), a privately held company
based in Franklin, Tennessee, runs and operates Carl’s Jr. and
Hardee’s, two beloved regional brands, known for one-of-a-kind
premium and innovative menu items such as 100 percent Black Angus
Thickburgers®, Made from Scratch™ Biscuits and Hand-Breaded Chicken
Tenders™. With both a US and international footprint, Carl’s Jr.
Restaurants LLC and Hardee’s Restaurants LLC have over 3,800
franchised or company-operated restaurants in 44 states and 43
foreign countries and U.S. territories.
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HARDEE’S | 11
AREA OVERVIEWLocated in the foothills of the Appalachian
Mountains, Rome is the largest city in and the county seat of Floyd
County, Georgia. Rome has long had the strength of economic
diversity, with an economy founded in manufacturing, education,
healthcare, technology, tourism, and other industries. The city is
well known in the region for its medical facilities, particularly
Floyd Medical Center, Redmond Regional Medical Center and the
Harbin Clinic.
Forbes has named Rome as one of the Best Small Places for
Business and Careers in addition to being one of the top places for
job growth and education.
DEMOGRAPHICS
POPULATION 1-MILE 3-MILE 5-MILE
2025 Projection 4,419 33,635 60,064
2020 Estimate 4,316 32,580 58,332
2010 Census 4,253 30,621 55,657
HOUSEHOLDS 1-MILE 3-MILES 5-MILES
2025 Projection 2,040 12,641 22,340
2020 Estimate 1,991 12,222 21,665
2010 Census 1,966 11,430 20,610
INCOME 1-MILE 3-MILES 5-MILES
Average Household Income $46,210 $53,487 $58,807
ROME, GA
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12 | OFFERING MEMORANDUM
Atlanta is the capital of and the most populous city in the U.S.
state of Georgia, the cultural and economic center of the Atlanta
metropolitan area, and the ninth largest metropolitan area in the
United States.
Atlanta is an “alpha-” or “world city”, exerting a significant
impact upon commerce, finance, research, technology, education,
media, art, and entertainment. It ranks 36th among world cities and
8th in the nation with a gross domestic product of $270 billion.
Atlanta’s economy is considered diverse, with dominant sectors
including logistics, professional and business services, media
operations, and information technology.
Atlanta is home to professional franchises for three major team
sports: the Atlanta Braves of Major League Baseball, the Atlanta
Hawks of the National Basketball Association, and the Atlanta
Falcons of the National Football League. Due to the more than 30
colleges and universities located in the city, Atlanta is
considered a center for higher education.
AREA OVERVIEW
ATLANTA GEORGIA
25 FORTUNE 500/1000
HEADQUARTERS
#2 BEST BUSINESS
CLIMATE
#1 MOST
TRAVELED AIRPORT IN THE WORLD
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HARDEE’S | 13
Encompassing $304 billion, the Atlanta metropolitan area is the
eighth-largest economy in the country and 17th-largest in the
world. Corporate operations comprise a large portion of Atlanta’s
economy, with the city serving as the regional, national, or
global headquarters for many corporations. Atlanta contains the
country’s third largest concentration of Fortune 500 companies, and
the city is the global headquarters of corporations such as The
Coca-Cola Company, The Home Depot, Delta Air Lines,
AT&T Mobility, Chick-fil-A, UPS, and Newell-Rubbermaid. Over
75 percent of Fortune 1000 companies conduct business operations in
the Atlanta metropolitan area, and the region hosts offices of
about 1,250 multinational corporations.
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14 | OFFERING MEMORANDUM
CONFIDENTIALITY AGREEMENT & DISCLAIMER
This Offering Memorandum contains select information pertaining
to the business and affairs of Hardee’s located at 1204 Turner
McCall Blvd SE, Rome, GA 30161 (“Property”). The Offering
Memorandum may not be all-inclusive or contain all of the
information a prospective purchaser may desire. The information
contained in this Offering Memorandum is confidential and furnished
solely for the purpose of a review by a prospective purchaser of
the Property. It is not to be used for any other purpose or made
available to any other person without the written consent of Seller
or Matthews Real Estate Investment Services. The material and
information in the Offering Memorandum is unverified. Matthews Real
Estate Investment Services has not made any investigation, and
makes no warranty or representation, with respect to square
footage, income and expenses, the future financial performance of
the property, future rent, and real estate value market conditions,
the condition or financial prospects of any tenant, or the tenants’
plans or intentions to continue to occupy space at the property.
All prospective purchasers should conduct their own thorough due
diligence investigation of each of these areas with the assistance
of their accounting, construction, and legal professionals, and
seek expert opinions regarding volatile market conditions given the
unpredictable changes resulting from the continuing COVID-19
pandemic. The information is based in part upon information
supplied by the Owner and in part upon financial information
obtained from sources the Owner deems reliable. Owner, nor their
officers, employees, or real estate agents make any representation
or warranty, express or implied, as to the accuracy or completeness
of this Offering Memorandum, or any of its content, and no legal
liability is assumed or shall be implied with respect thereto.
Prospective purchasers should make their own projections and form
their own conclusions without reliance upon the material contained
herein.
By acknowledging your receipt of this Offering Memorandum for
the Property, you agree:
1. The Offering Memorandum and its contents are confidential;2.
You will hold it and treat it in the strictest of confidence; and
3. You will not, directly or indirectly, disclose or permit anyone
else to disclose this Offering Memorandum or its contents in any
fashion or manner
detrimental to the interest of the Seller.
Matthews Real Estate Investment Services is not affiliated with,
sponsored by, or endorsed by any commercial tenant or lessee in the
Offering Memorandum. The presence of any corporation’s logo or name
is not intended to indicate or imply affiliation with, or
sponsorship or endorsement by, said corporation of Matthews Real
Estate Investment Services.
Owner and Matthews Real Estate Investment Services expressly
reserve the right, at their sole discretion, to reject any and all
expressions of interest or offers to purchase the Property and to
terminate discussions with any person or entity reviewing this
Offering Memorandum or making an offer to purchase the Property
unless and until a written agreement for the purchase and sale of
the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the
acquisition of the Property or in the future you discontinue such
negotiations, then you agree to purge all materials relating to
this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect
to this prospective transaction, the Property, or information
provided herein or in connection with the sale of the Property
shall be limited to those expressly provided in an executed
Purchase Agreement and shall be subject to the terms thereof. In no
event shall a prospective purchaser have any other claims against
Seller or Matthews Real Estate Investment Services or any of their
affiliates or any of their respective officers, Directors,
shareholders, owners, employees, or agents for any damages,
liability, or causes of action relating to this solicitation
process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the
state of affairs of the Property or constitute an indication that
there has been no change in the state of affairs of the Property
since the date this Offering Memorandum.
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OFFERING MEMORANDUM
LISTED BY
ROME, GA
CONRAD SARREAL SENIOR ASSOCIATE DIR: 214.692.2847
MOB: 626.230.1006 [email protected]
LIC # 01982875 (CA)
KYLE MATTHEWS BROKER OF RECORD
LICENSE NO. 67120 (GA)
