Embed Size (px)
Citation preview
™
2628 W MARCH LANE, STOCKTON, CA 95207CHICK-FIL-A
Offering Memorandum
OFFERING MEMORANDUM
Representative Photo
2 | Chick-fil-A
CONFIDENTIALITY & DISCLAIMER STATEMENT
This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Chick-fil-A located at 2628 W MARCH LANE, STOCKTON, CA 95207 (“Property”) . I t has been prepared by Matthews Retai l Advisors . This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors . The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.
By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:
1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;
2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and
3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.
Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.
I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.
A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.
This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.
Matthews Retail Advisors | 3
TABLE OF CONTENTS
04. Investment Highl ights
05. Execut ive Summary
07. Property Overv iew
12. Tenant Overv iew
13. Area Overv iew
15. Demographics
CHICK-FIL-A2628 W MARCH LANE, STOCKTON, CA 95207
Jordan UttalVice President
License No. 01512755O 310.919.5707M [email protected]
Location:
Property:
Tenant:
• Right off the I-5 Freeway, the major highway connecting Northern CA and Southern CA with over 100,000 cars per day
• Located less than one mile from the large, Division 1, Stagg High School (Over 2,100 Students)
• Located one mile away from San Joaquin Delta College (18,500 students)
• Located just 1.5 miles from University of the Pacific (6,300 students)
• Over 25,000 students within 1 mile of the Chick-Fil-A
• Sits in the retail hub for the area, immediately surrounded by Home Depot, CVS, and Marshalls
• Just down the road from the prestigious Brookside community of Stockton, home of Brookside Country Club
• Excellent density with over 284,000 people in a 5 mile radius
• Good incomes averaging over $73,000 in a 1 mile radius
• Number one ranked Quick service restaurant in Sales per store ($3.06M)
• Over 47 consecutive years of positive sales growth
• Annual sales exceeded $6B in 2014
• Over 1950 locations nationwide
• Corporately guaranteed Lease By Chick-Fil-A, Inc.
• Brand new high quality construction
• 10% rent increases every 5 years
• 20 years remaining on a Ground Lease (Zero landlord responsibilities)
Investment Highlights
Representative Photo
Matthews Retail Advisors | 5
Executive Summary
CHICK-FIL-A2628 W MARCH LANE.STOCKTON, CA 95207
List Price .................................................................................$3,194,444
CAP Rate.....................................................................................................3.60%Gross Leasable Area ........................................................................................4,778 SF Lot Size ...................................................................................... ± 1.56 AC (68,098 SF) Year Built .....................................................................................................................2016
Annualized Operating DataMonthly Rent Annual Rent CAP Rate
Current thru 9/1/2023 $9,583.33 $115,000.00 3.60%
9/1/2023 thru 8/31/2028 $10,541.67 $126,500.00 3.96%
9/1/2028 thru 8/31/2033 $11,595.83 $139,150.00 4.36%
9/1/2033 thru 8/31/2035 $12,755.42 $153,065.00 4.79%
Option 1 (9/1/2035 thru 8/31/2040) $14,030.96 $168,371.50 5.27%
Option 2 (9/1/2040 thru 8/31/2045) $15,434.05 $185,208.65 5.80%
Option 3 (9/1/2045 thru 8/31/2050) $16,977.46 $203,729.52 6.38%
Option 4 (9/1/2050 thru 8/31/2055) $18,675.21 $224,102.57 7.02%
Option 5 (9/1/2055 thru 8/31/2060) $20,542.74 $246,512.83 7.72%
Option 6 (9/1/2060 thru 8/31/2065) $22,597.01 $271,164.11 8.49%
Tenant Summary
Tenant Trade Name Chick-fil-A
Type of Ownership Ground Lease
Lease Guarantor Chick-fil-A
Lease Type Net Leased QSR
Landlord Responsibility None
Original Lease Term 20 years
Lease Commencement Date 9/1/2016
Rent Commencement Date 9/2/2016
Lease Expiration Date 9/1/2036
Term Remaining on Lease 20 Years
Increases 10% every five (5) years
Options Six (6) Five (5) year
Representative Photo
6 | Chick-fil-A
PROPERTY OVERVIEW
Representative Photo
Matthews Retail Advisors | 7
Physical Description
Property Name Chick-fil-A
Property Address 2628 W MARCH LANE
STOCKTON, CA 95207
Assessor’s Parcel Number 110-020-04
Site Description
Number of Stories One
Year Built 2016
Gross Leasable Area (GLA) 4,778 SF
Lot Size ±1.56 AC
Type of Ownership Ground Lease
Parking ± 98 Surface Spaces
Parking Ratio 20 : 1000 SF
Landscaping Professional
Topography Generally Level
Construction
Foundation Concrete Slab
Exterior Masonry / Brick
Parking Surface Asphalt
Roof Flat
Representative Photo Representative Photo
8 | Chick-fil-A
Bird’s Eye
CPD
± 117,00
0
W March Lane CPD ± 26,000
Matthews Retail Advisors | 9
Regional Map
10 | Chick-fil-A
Tenant Map
TENANT OVERVIEW
Representative Photo
Matthews Retail Advisors | 12
It all started in 1946, when Truett Cathy opened his first restaurant, Dwarf Grill, in Hapeville, Georgia. Credited with inventing Chick-fil-A’s boneless breast of chicken sandwich, Mr. Cathy founded Chick-fil-A, Inc. in the early 1960s and pioneered the establishment of restaurants in shopping malls with the opening of the first Chick-fil-A Restaurant at a mall in suburban Atlanta in 1967. Since then, Chick-fil-A has steadily grown to become the largest quick-service chick-en restaurant chain in the United States, based on domestic annual sales with over 1,900 locations in 42 states and Washington, D.C. In 2014, annual sales were nearly $6 billion. Chick-fil-A is still privately held and family owned. With 47 consecutive years of positive sales growth, Chick-fil-A has set itself apart by pioneering innovations and delicious products—including the ever-popular Chick-fil-A® Chicken Sandwich.
Property Name Chick-fil-A
Property Type Net Leased Quick Service Restaurant
Parent Company Trade Name Chick-Fil-A, Inc.
Ownership Private
Revenue 5.7 Billion
Net Income 23,057,000
Stock Symbol WFC
No. of Locations 1,900
Headquartered Atlanta, GA
Web Site www.chick-fil-a.com
Year Founded 1946
13 | Chick-fil-A
AREA OVERVIEW
Stockton is centrally located with access to the Port of Stockton, Amtrak, Stockton Metropolitan Aiport and major intrastate and interstate freeway systems, including interstate 5. Due to its location at the “crossroads” of the Central Valley and a relatively extensive highway system, Stockton is easily accessible from virtually anywhere in California. Interstate 5 and State Route 99, California’s major north-south thoroughfares, pass through the city limits. The east-west highway State Route 4 also passes through the city, providing access to the San Francisco Bay Area as well as the Sierra Nevada and its foothills. Stockton is the western terminus of State Route 26 and State Route 88, which extends to the Nevada border. In addition, Stockton is within an hour of Interstate 80, Interstate 205 and Interstate 580.
Transportation
Port of Stockton
Stockton, CAStockton is the county seat of San Joaquin County in north−central California. The city is located on the San Joaquin River in northern San Joaquin Valley and had an estimated population of 302,389 as of 2014. It is the 13th largest city in California and the 63rd largest city in the United States. It was named an All-America City in 1999 and again in 2004. Stockton is the largest inland seaport in California. Since the California Gold Rush, it has served as a gateway to the Central Valley. It provided easy access for trade and transportation to the southern gold mines. Now it is a Central California location for transportation, distribution, and agriculture. The citiy’s healthy agricultural economy provides stability in the nation’s most productive agricultural region. The strategic location at the crossroads of major north-south and east-west roads and rail routes into the Bay Area help the economy, especially in the commercial-industrial center of Lathrop to the south. It has been the location of the oldest university in California, University of the Pacific since 1923.
The Port of Stockton is a fully operating seaport approximately 75 nautical miles east of the Golden Gate Bridge in San Francisco. Set on the San Joaquin River, the port operates a 4,200 acres transportation center with berthing space for 17 vessels up to 900 ft in length. As of 2014, the Port of Stockton had 136 tenants and is served by BNSF & UP Railroads. The port also includes 1.1 million square feet of dockside transit sheds and shipside rail track and 7.7 million square feet of warehousing. The Port of Stockton is California’s third largest port after Port of Los Angeles and Port of Long Beach. In 2012 it supported 4,500 jobs and made about $4.9 million in local tax funds.
Matthews Retail Advisors | 14
Top Employers - Stockton, CA
# Employer1 San Joaquin County
2 Stockton Unified School District
3 St. Joseph’s Medical Center
4 OG Packing
5 California Division of Juvenile Justice
Historically an agricultural community, Stockton’s economy has since diversified into other industries, which include telecommunications and manufacturing. Stockton’s central location, relative to both San Francisco and Sacramento, as well as its proximity to the state and interstate freeway system, together with its comparatively inexpensive land costs, have prompted several companies base their regional operations in the city. In 2016, Stockton ranked third in employment growth in metro areas in California.
# Employer6 Diamond Foods
7 City of Stockton
8 Dameron Hospital
9 Northern California Youth Center
10 University of the Pacific
San Joaquin County, CA San Joaquin County in the U.S. state of California with a population of about 685,306. In 2015, San Joaquin County led the state in population growth with a 1.6 percent gain over 2014. San Joaquin County comprises the Stockton-Lodi, CA Metropolitan Statistical Area, which is also included in the San Jose-San Francisco-Oakland, CA Combined Statistical Area. The county is located in the Central Valley, just east of the nine-county San Francisco Bay Area region. A land of beauty, recreation, and natural riches - from the waters of the Delta to the vines of the wine, San Joaquin County has it all. San Joaquin County boasts seven cities and some of the finest opportunities in the state for boating, fishing, camping, history-gathering, or just plain fun in the sun. The county is one of the most agriculturally rich regions in California and is the number one producer, statewide, of asparagus. Twenty-four thousand acres of county farmland is dedicated to production of this crop. In recent years, the leading crop in the county has been wine grapes, and wineries and vineyards have sprung up from Stockton to Lodi. San Joaquin County is home to one of the most reputable and largest walnut processing faculties in the world DeRuosi Nut.
15 | Chick-fil-A
Demographics
Population 1-Mile 3-Mile 5-Mile
2021 Projection 17,530 122,943 284,979
2016 Estimate 16,848 120,239 274,719
2010 Census 16,184 118,572 264,899
2000 Census 14,954 119,194 241,185
Growth 2016 - 2021 4.05% 2.25% 3.73%
Growth 2010 - 2016 4.10% 1.41% 3.71%
Growth 2000 - 2010 8.22% -0.52% 9.83%
Households 1-Mile 3-Mile 5-Mile
2021 Projection 7,105 46,782 92,611
2016 Estimate 6,787 45,390 89,168
2010 Census 6,446 44,138 86,210
2000 Census 6,019 44,668 80,278
Growth 2016 - 2021 4.69% 3.07% 3.86%
Growth 2010 - 2016 5.29% 2.84% 3.43%
Growth 2000 - 2010 7.09% -1.19% 7.39%
Income 1-Mile 3-Mile 5-Mile
Income < $15,000 12.28% 16.69% 16.96%
Income $15,000 - $24,999 11.61% 13.24% 13.39%
Income $25,000 - $34,999 10.66% 11.31% 10.71%
Income $35,000 - $49,999 12.93% 14.17% 14.06%
Income $50,000 - $74,999 19.39% 18.18% 17.37%
Income $75,000 - $99,999 10.75% 9.60% 10.14%
Income $100,000 - $124,999 7.86% 6.71% 7.27%
Income $125,000 - $149,999 4.36% 3.64% 3.81%
Income $150,000 - $199,999 5.07% 3.34% 3.61%
Income $200,000 - $249,999 1.93% 1.26% 1.20%
Income $250,000 - $499,999 2.43% 1.43% 1.17%
Income $500,000+ 0.73% 0.43% 0.31%
2016 Est. Average Household Income $73,204 $61,185 $60,733
2016 Est. Median Household Income $53,241 $44,267 $44,538
