Church’s Chicken | New 15-Year Lease Offering Absolute NNN ...€¦ · Lease Type Absolute NNN Single-Tenant Absolute Net-Lease Church’s Chicken New 15-year lease signed in 2020

Church’s Chicken | New 15-Year LeaseAbsolute NNN Lease | Tenant Is Paying Rent | Increasing Sales

Offering Memorandum

6801 Jefferson St. NE, Suite 200 | Albuquerque NM 87109 office 1 505 878 0001 | www.IPArealty.com

5455 E. Main St. | Farmington, NM 87402

A division of NAI Maestas & Ward

OfferingMemorandum

Cole Flanagan, CPA, MBAcell 505 235 7585 [email protected]

Jake Mechenbiercell 505 917 5514 [email protected]

Presented byPresented by Ed StammelStammel Commercial, LLC

702 296 [email protected]

In cooperation withIn cooperation with

Offering Memorandum | 2A division of NAI Maestas & Ward

ConfidentialDisclaimer

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving from NAI Maestas & Ward and should not be made available to any other person or entity without the written consent of NAI Maestas & Ward. This Marketing Brochure has been prepared to provide summary, unverified 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.

NAI Maestas & Ward 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 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 Marketing Brochure has been obtained from sources we believe to be reliable; however, NAI Maestas & Ward has not verified, and will not verify, any of the information contained herein, nor has NAI Maestas & Ward 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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT A NAI MAESTAS & WARD ADVISOR FOR MORE DETAILS.


InvestmentHighlights

Investment Property Advisors and Stammel Commercial are pleased to offer for sale a single-tenant, absolute net-lease Church’s Chicken. The tenant recently signed a new 15-year lease earlier this year. The asset is located at 5455 E. Main St. in Farmington, New Mexico. Main St. is the main thoroughfare in Farmington with car counts that exceed 41,000 cars per day. Farmington has seen a significant amount of growth with more on the way. The city draws from an extremely large area including nearby cities and towns, southern Colorado, and Native American reservations.

The approximately 2,466 sq. ft. building is situated on about 0.84 acres. Church’s Chicken has operated at this location since 1989 and the tenant recently invested a significant amount of money, over $200,000, to re-image the restaurant, which shows their commitment to the site. The franchisee has a large amount of experience in this industry and has worked with Church’s Chicken for about 30 years. The lease, as mentioned above, is a brand new 15-year lease with 2% annual increases in the initial term.

This investment benefits from the proven site with a long tenured tenant, new long-term lease, and its exceptional location. The lease is absolute NNN with zero landlord responsibilities. In addition, the site sits along the main thoroughfare with significant traffic counts. The passive nature of the lease combined with the strong real estate fundamentals make this property an opportunity on which an investor can capitalize for the foreseeable future.

STNL Church’s Chicken

Offering Summary

Purchase Price $840,000

Net Operating Income $50,400

Cap Rate 6.00%

Lease Type Absolute NNN

� Single-Tenant Absolute Net-Lease Church’s Chicken

� New 15-year lease signed in 2020

� Recently remodeled - Tenant invested over $200,000 to re-image the restaurant in October 2019

� Proven site with long tenure - Increasing sales (sales have been trending up) - Church’s Chicken has operated at this location since 1989 (over 30 years) - Guarantor has worked with Church’s Chicken for about 30 years

� Building Size: ± 2,466 SF

� Land Size: ± 0.84 Acres

� Strong real estate fundamentals - Hard corner, full access - Neighboring tenants include Lowe’s, Davita, Mister Car Wash, and Speedway among many others - This retail corridor has seen a significant amount of growth in the last few years

� Significant traffic counts - Traffic counts exceed 41,000 cars per day on Main St

� Farmington draws from an extremely large trade area - Draws from nearby cities, towns, southern Colorado and Native American reservations


Location5455 E. Main St. Farmington, NM

Tenant Church's Chicken (Emily Development, Inc.) Guarantor Franchisee (Personal Guaranty)Building Size ±2,466Land Size ±0.84 AcresCommencement Date January 1, 2020Remaining Base Lease Term 15 Years through Decenber 31,2034Rental Increases 2% annual; 2.5% annual in option periodRenewal Options (1) 5-year optionNet Operating Income $50,400 Lease Type Absolute NNN

Lease Summary


Period Annual Rent

Years 1 (Current) $50,400

Year 2 $51,408

Year 3 $52,436

Year 4 $53,485

Year 5 $54,555

Year 6 $55,646

Year 7 $56,759

Year 8 $57,894

Year 9 $59,052

Year 10 $60,233

Year 11 $61,437

Year 12 $62,666

Year 13 $63,919

Year 14 $65,198

Year 15 $66,502

Year 16 (Option) $68,164

Year 17 $69,868

Year 18 $71,615

Year 19 $73,405

Year 20 $75,241

Rent Schedule


Church’s Chicken is a chain of fast food restaurants specializing in fried chicken. The company has more than 1,700 locations located throughout 25 countries. Outside of North America, the company goes by the name of Texas Chicken.

Church’s Chicken was founded on April 17, 1952 by George W Church, Sr. During its first few years, the restaurant only served chicken but later added additional items to its menu in 1955. In addition to chicken, the restaurant also serves cole slaw, mashed potatoes, corn, and honey biscuits. Today, Church’s Chicken is owned by Friedman Fleischer & Lowe, a San Francisco private equity company. The company is headquartered in Atlanta, GA.

Church’s Chicken has grown and expanded tremendously throughout the country and world. The company continues to evolve and improve. The company is also very active in the community by supporting various programs.

Emily Development, Inc is a franchisee of Church’s Chicken with three locations in New Mexico. Frank Lopez is the owner of Emily Development, Inc and has a tremendous amount of experience with the brand; he has worked with Church’s Chicken for about 30 years.

TenantHighlights

Tenant ProfileTenant Church's Chicken (Emily Development, Inc.)Guaranty Franchisee (Personal Guaranty)Church's Chicken Headquarters

Atlanta, GA

Locations 1,700+Year Founded 1952Website www.churchs.com


E. Main St.

E. Main St.

Engl

ish

Rd.

Engl

ish

Rd.

Pinon Hills Blvd.Pinon Hills Blvd.

CPD 41,849

ANIMAS VALLEY MALLANIMAS VALLEY MALL

Pinon Hills Pinon Hills Seventh Day Seventh Day

ChurchChurch

Country ClubCountry ClubElementaryElementary

SchoolSchool

S I T E

TradeArea

S I T E


SiteAerial

E. Main St.

E. Main St.

CPD 41,849

Studio 907Studio 907SalonSalon

King Hand Car King Hand Car Wash & DetailWash & Detail

Rowe Ave.

Rowe Ave.

Pinon Hills Blvd.

Pinon Hills Blvd.

Trattoria Di Trattoria Di BernardoneBernardone

S I T E

Site Aerial


FarmingtonFarmington

S I TE

1 Mile 3 Mile 5 Mile

Demographic and Income Profile5455 E Main St, Farmington, New Mexico, 87402 Prepared by EsriRing: 1 mile radius Latitude: 36.77055

Longitude: -108.14069

Summary Census 2010 2019 2024Population 4,228 4,277 4,303Households 1,551 1,586 1,602Families 1,181 1,181 1,181Average Household Size 2.73 2.70 2.69Owner Occupied Housing Units 1,251 1,332 1,349Renter Occupied Housing Units 300 254 253Median Age 36.1 37.8 39.4

Trends: 2019 - 2024 Annual Rate Area State NationalPopulation 0.12% 0.65% 0.77%Households 0.20% 0.61% 0.75%Families 0.00% 0.38% 0.68%Owner HHs 0.25% 0.80% 0.92%Median Household Income 0.84% 1.55% 2.70%

2019 2024 Households by Income Number Percent Number Percent

<$15,000 102 6.4% 100 6.2%$15,000 - $24,999 131 8.3% 125 7.8%$25,000 - $34,999 162 10.2% 157 9.8%$35,000 - $49,999 155 9.8% 151 9.4%$50,000 - $74,999 299 18.9% 297 18.5%$75,000 - $99,999 297 18.7% 285 17.8%$100,000 - $149,999 221 13.9% 245 15.3%$150,000 - $199,999 146 9.2% 161 10.0%$200,000+ 72 4.5% 81 5.1%

Median Household Income $68,685 $71,633Average Household Income $85,896 $92,509Per Capita Income $31,609 $34,167

Census 2010 2019 2024 Population by Age Number Percent Number Percent Number Percent

0 - 4 314 7.4% 291 6.8% 291 6.8%5 - 9 332 7.9% 312 7.3% 310 7.2%10 - 14 320 7.6% 332 7.8% 329 7.6%15 - 19 317 7.5% 281 6.6% 289 6.7%20 - 24 228 5.4% 202 4.7% 189 4.4%25 - 34 547 12.9% 531 12.4% 474 11.0%35 - 44 503 11.9% 603 14.1% 652 15.2%45 - 54 676 16.0% 487 11.4% 504 11.7%55 - 64 534 12.6% 601 14.1% 505 11.7%65 - 74 261 6.2% 407 9.5% 476 11.1%75 - 84 152 3.6% 168 3.9% 216 5.0%

85+ 45 1.1% 60 1.4% 67 1.6%Census 2010 2019 2024

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 3,237 76.6% 3,036 71.0% 2,934 68.2%Black Alone 28 0.7% 35 0.8% 39 0.9%American Indian Alone 438 10.4% 582 13.6% 648 15.1%Asian Alone 30 0.7% 54 1.3% 70 1.6%Pacific Islander Alone 3 0.1% 3 0.1% 3 0.1%Some Other Race Alone 333 7.9% 374 8.7% 394 9.2%Two or More Races 159 3.8% 194 4.5% 215 5.0%

Hispanic Origin (Any Race) 862 20.4% 962 22.5% 1,034 24.0%Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2019 and 2024.

March 19, 2020

©2020 Esri Page 1 of 6



Summary Census 2010 2019 2024Population 4,228 4,277 4,303Households 1,551 1,586 1,602Families 1,181 1,181 1,181Average Household Size 2.73 2.70 2.69Owner Occupied Housing Units 1,251 1,332 1,349Renter Occupied Housing Units 300 254 253Median Age 36.1 37.8 39.4



<$15,000 102 6.4% 100 6.2%$15,000 - $24,999 131 8.3% 125 7.8%$25,000 - $34,999 162 10.2% 157 9.8%$35,000 - $49,999 155 9.8% 151 9.4%$50,000 - $74,999 299 18.9% 297 18.5%$75,000 - $99,999 297 18.7% 285 17.8%$100,000 - $149,999 221 13.9% 245 15.3%$150,000 - $199,999 146 9.2% 161 10.0%$200,000+ 72 4.5% 81 5.1%



0 - 4 314 7.4% 291 6.8% 291 6.8%5 - 9 332 7.9% 312 7.3% 310 7.2%10 - 14 320 7.6% 332 7.8% 329 7.6%15 - 19 317 7.5% 281 6.6% 289 6.7%20 - 24 228 5.4% 202 4.7% 189 4.4%25 - 34 547 12.9% 531 12.4% 474 11.0%35 - 44 503 11.9% 603 14.1% 652 15.2%45 - 54 676 16.0% 487 11.4% 504 11.7%55 - 64 534 12.6% 601 14.1% 505 11.7%65 - 74 261 6.2% 407 9.5% 476 11.1%75 - 84 152 3.6% 168 3.9% 216 5.0%

85+ 45 1.1% 60 1.4% 67 1.6%Census 2010 2019 2024

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 3,237 76.6% 3,036 71.0% 2,934 68.2%Black Alone 28 0.7% 35 0.8% 39 0.9%American Indian Alone 438 10.4% 582 13.6% 648 15.1%Asian Alone 30 0.7% 54 1.3% 70 1.6%Pacific Islander Alone 3 0.1% 3 0.1% 3 0.1%Some Other Race Alone 333 7.9% 374 8.7% 394 9.2%Two or More Races 159 3.8% 194 4.5% 215 5.0%

Hispanic Origin (Any Race) 862 20.4% 962 22.5% 1,034 24.0%Data Note: Income is expressed in current dollars.


March 19, 2020




Summary Census 2010 2019 2024Population 21,005 21,567 21,864Households 7,557 7,801 7,930Families 5,603 5,656 5,690Average Household Size 2.75 2.74 2.73Owner Occupied Housing Units 5,558 6,052 6,186Renter Occupied Housing Units 1,999 1,749 1,743Median Age 33.4 35.4 36.6



<$15,000 796 10.2% 766 9.7%$15,000 - $24,999 619 7.9% 592 7.5%$25,000 - $34,999 911 11.7% 891 11.2%$35,000 - $49,999 937 12.0% 925 11.7%$50,000 - $74,999 1,435 18.4% 1,468 18.5%$75,000 - $99,999 1,250 16.0% 1,229 15.5%$100,000 - $149,999 949 12.2% 1,050 13.2%$150,000 - $199,999 562 7.2% 620 7.8%$200,000+ 342 4.4% 388 4.9%



0 - 4 1,733 8.2% 1,647 7.6% 1,650 7.5%5 - 9 1,726 8.2% 1,651 7.7% 1,651 7.6%10 - 14 1,519 7.2% 1,668 7.7% 1,667 7.6%15 - 19 1,508 7.2% 1,462 6.8% 1,510 6.9%20 - 24 1,382 6.6% 1,223 5.7% 1,251 5.7%25 - 34 3,092 14.7% 3,006 13.9% 2,703 12.4%35 - 44 2,472 11.8% 3,023 14.0% 3,220 14.7%45 - 54 2,941 14.0% 2,296 10.6% 2,472 11.3%55 - 64 2,488 11.8% 2,616 12.1% 2,245 10.3%65 - 74 1,177 5.6% 1,901 8.8% 2,183 10.0%75 - 84 705 3.4% 764 3.5% 991 4.5%

85+ 264 1.3% 309 1.4% 321 1.5%Census 2010 2019 2024

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 14,528 69.2% 13,592 63.0% 13,147 60.1%Black Alone 168 0.8% 204 0.9% 228 1.0%American Indian Alone 3,457 16.5% 4,430 20.5% 4,857 22.2%Asian Alone 144 0.7% 255 1.2% 331 1.5%Pacific Islander Alone 14 0.1% 14 0.1% 16 0.1%Some Other Race Alone 1,823 8.7% 2,029 9.4% 2,136 9.8%Two or More Races 871 4.1% 1,043 4.8% 1,148 5.3%

Hispanic Origin (Any Race) 4,420 21.0% 4,918 22.8% 5,286 24.2%Data Note: Income is expressed in current dollars.


March 19, 2020




Summary Census 2010 2019 2024Population 49,026 50,889 51,763Households 17,762 18,531 18,883Families 12,656 12,902 13,004Average Household Size 2.69 2.69 2.68Owner Occupied Housing Units 12,429 13,825 14,193Renter Occupied Housing Units 5,333 4,705 4,690Median Age 33.8 35.5 36.5



<$15,000 2,087 11.3% 1,956 10.4%$15,000 - $24,999 1,737 9.4% 1,649 8.7%$25,000 - $34,999 2,293 12.4% 2,232 11.8%$35,000 - $49,999 2,502 13.5% 2,467 13.1%$50,000 - $74,999 3,332 18.0% 3,434 18.2%$75,000 - $99,999 2,822 15.2% 2,843 15.1%$100,000 - $149,999 2,143 11.6% 2,462 13.0%$150,000 - $199,999 994 5.4% 1,124 6.0%$200,000+ 620 3.3% 716 3.8%



0 - 4 3,992 8.1% 3,837 7.5% 3,856 7.4%5 - 9 3,803 7.8% 3,761 7.4% 3,805 7.4%10 - 14 3,467 7.1% 3,726 7.3% 3,792 7.3%15 - 19 3,512 7.2% 3,395 6.7% 3,547 6.9%20 - 24 3,350 6.8% 3,135 6.2% 3,107 6.0%25 - 34 7,164 14.6% 7,225 14.2% 6,723 13.0%35 - 44 5,710 11.6% 6,796 13.4% 7,149 13.8%45 - 54 6,784 13.8% 5,431 10.7% 5,773 11.2%55 - 64 5,648 11.5% 6,171 12.1% 5,451 10.5%65 - 74 2,921 6.0% 4,514 8.9% 5,138 9.9%75 - 84 1,899 3.9% 2,008 3.9% 2,527 4.9%

85+ 775 1.6% 891 1.8% 895 1.7%Census 2010 2019 2024

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 32,977 67.3% 31,038 61.0% 30,096 58.1%Black Alone 422 0.9% 520 1.0% 579 1.1%American Indian Alone 8,741 17.8% 11,303 22.2% 12,409 24.0%Asian Alone 278 0.6% 488 1.0% 631 1.2%Pacific Islander Alone 30 0.1% 32 0.1% 35 0.1%Some Other Race Alone 4,531 9.2% 5,062 9.9% 5,329 10.3%Two or More Races 2,046 4.2% 2,447 4.8% 2,684 5.2%

Hispanic Origin (Any Race) 11,025 22.5% 12,302 24.2% 13,204 25.5%Data Note: Income is expressed in current dollars.


March 19, 2020


Demographics1, 3 & 5 Miles

Trade Area AnalysisCITY OF

Farmington

Farmington (metro area) by the Numbers (ESRI 2019 Demographics)

The city serves as the commercial hub for most of northwestern New Mexico and the Four Corners region of four states: New Mexico, Colorado, Arizona and Utah.

Farmington is located at the junction of the San Juan River, the Animas River, and the La Plata River, and is located on the Colorado Plateau. Farmington is the largest city in San Juan County, one of the geographically largest counties in the United States covering 5,538 square miles (14,340 km2). Farmington lies at or near the junction of three important highways: U.S. Highway 550, U.S. Highway 64, and New Mexico Highway 371.The primary industries of San Juan County are the production of petroleum, natural gas, and coal. Major coal mines are the Navajo and San Juan mines, operated by BHP Billiton 15 to 19 miles (24 to 31 km) southwest of Farmington. The coal mined from the Navajo and San Juan mines is used entirely for fuel for the nearby Four Corners Generating Station and San Juan Power Plant to produce electric power.

136,560 MSA population,

Four Corner region

2nd

47,552 City of Farmington

$62,621Average Household Income

46,996 Households

$39,407 Median Disposable Income

4,463 Total Businesses

60,761 Total Employees

Durango, CO

City of Farmington

Bloomfield

Aztec

Shiprock

Cortez

491

64

550

Flora Vista

Kirtland

Albuquerque

Santa Fe

Farmington

Gallup

Grants

40

550

New Mexico

Utah

Arizona

Colorado

Colorado

New Mexico

Utah

Arizona

Four Corners

TOURISM REPORT CARD

ALL IN A DAYS DRIVE

15

7 4757

World Class Fly Fishing Area

World Heritage Sites

World Class Ski Resorts

Native American Pueblos & Tribes

National Parks, Monuments & Recreation Areas

Energy & ManufacturingEconomic activity ranges from natural resource production and power generation to manufactur-ing, assembly, transportation and data centers. Tremendous opportunities exist to capitalize on the region’s natural resources, infrastructure, production capacity and know-how coming from years of drilling in the San Juan Basin.

AgricultureThe area has a long history of productive agriculture. There is emerging momentum to restore this sec-tor as a prominent part of the region’s economic base.The San Juan Basin is particularly well suited for the production of biofuels, agrotourism and to pairing the production of food with food processing based on factors such as the existing skills of our current workforce.

TourismThe Farmington MSA is the hub for tourism in the Four Corners and is the center of the National Geotourism Region. They are the center of adventure and have a wealth of tourist attracting amenities.

FARMINGTON TARGETED INDUSTRIES

Farmington | Where Outdoor Lovers & Families Thrive


Documents

Church’s Chicken | New 15-Year Lease Offering Absolute NNN ...€¦ · Lease Type Absolute NNN Single-Tenant Absolute Net-Lease Church’s Chicken New 15-year lease signed in 2020