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DAIRY QUEEN618 North Carol Malone Blvd, Grayson, KY 41143
OFFERING MEMORANDUM*Actual Photo
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TABLE OF CONTENTS
INVESTMENT OVERVIEW 01Property Overview
Regional Map
Local Map
Aerial Photo
FINANCIAL ANALYSIS 02Offering Summary
MARKET OVERVIEW 03Demographics
SECTION
Dairy Queen – Grayson, KY
Michael MatusikVice President of InvestmentsOffice |
800.948.1250 Ext 102Direct | 714.874.4004Fax |
[email protected]: CA
01888322www.primenetlease.com
Paul R MatusikDirector of InvestmentsOffice | 800.948.1250 Ext
101Direct | 714.875.2400Fax |
[email protected]: CA
01351021www.primenetlease.com
P R E S E N T E D B Y
In Association with Dawn Wientjes of Falconite Development
Group, a licensed Kentucky Broker (74194)
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INVESTMENT
OVERVIEW
Dairy Queen – Grayson, KY
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PROPERTY OVERVIEW
PROPERTY OVERVIEW
PRICE: $1,056,000 CAP RATE: 6.25%
Dairy Queen Grill & Chill is a single tenant,
quick-servicerestaurant with that recently renewed a 5 year
AbsoluteNNN lease with one 5 year renewal options. There willbe a
10% increase upon the next renewal. The tenant,Frauenshuh
Hospitality Group KY/IN, LLC, operates 72DQ locations in Kentucky
and Indiana, backing theperformance of the lease. Frauenshuh
Hospitality GroupMN, LLC is a subsidiary of Fourteen Foods - the
largestDQ franchisee in the US with 208 locations.
Built originally in 1977, the 3,020 square foot buildinghas
successfully operated as a Dairy Queen for 41 years.The property
sits along Carol Malone Blvd, a majorthoroughfare in the city with
direct access to Hwy 60,and the I-64.
LEASE ABSTRACT
Tenant:Frauenshuh Hospitality
Group KY/IN, LLC
Lease Commencement: April 28, 1977
Lease Expiration: June 30, 2023
Rent Increases: 10% Every 5 Years
Type of Ownership: Fee Simple
No. of Tenant Locations: 208+
PROPERTY INFORMATION
Address618 N Carol Malone Blvd
Grayson, KY 41143
Offering Price $1,056,000
Price / SF $349.67
Cap Rate 6.25%
Net Operating Income $66,000
Year Built /Remodeled 1977
Rentable Square Feet 3,020
Land Area 0.622 Acres
PROPERTY HIGHLIGHTS
Recently Extended Term Showing Commitment to Site.
41 Years Operating at Site!
Largest Dairy Queen Operator in the US
Superbly located along I-64 (15,408 Vehicles Per Day)
Strong Retail Corridor
Absolute NNN Lease—No Landlord Responsibilities
ANNUALIZED OPERATING DATA
YEAR ANNUAL RENT
Current $60,000
07/01/18-06/30/23 $66,000
07/01/23-06/30/28* $72,600
* Denotes option period
Dairy Queen – Grayson, KY
ABOUT THE INVESTMENT
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PROPERTY PHOTOSSUBJECT PROPERTY PHOTOS
Dairy Queen – Grayson, KY
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PROPERTY OVERVIEW
TENANT
About Dairy QueenDairy Queen, often abbreviated DQ, is a chain
of soft serve ice cream and fast food restaurants owned by
International Dairy Queen, Inc, a subsidiary ofBerkshire Hathaway.
Franchise Times estimates DQ sales worldwide at more than $3
billion, ranking it the 32nd largest franchise chain of the Top
200Franchise Chains list.
HistoryThe first DQ® restaurant was located in Joliet, Illinois.
It was operated by Sherb Noble and opened for business on June 22,
1940. The first Canadian DQ®store opened in Estevan, Saskatchewan
in 1953. For additional information regarding the history of the
Dairy Queen® system, click on the “About Us” link atthe bottom of
this web page.
The founders of the Dairy Queen® system were men and women who
introduced a new kind of dessert treat and, in the process,
developed the foundationof the franchising industry. The history of
the DQ® system is a story of a unique product that created an
industry. The DQ Grill & Chill concept blends thebest of DQ®
iconic history with the most modern innovations in the
quick-service restaurant (QSR) industry. The food menu features the
quarter- and half-pound GrillBurger TM made-to-order, as well as
other delicious and unique food items, including deli-style Iron
Grilled Sandwiches. Other menu offeringsinclude Grilled or Crispy
Chicken Sandwiches and Salads; Chicken Strip Baskets; Shrimp
Baskets; Quesadillas and Chili Cheese Dogs.
American Dairy Queen Corporation (ADQ), which is headquartered
in Minneapolis, Minnesota, develops, licenses and services a system
of more than 6,700Dairy Queen® stores in the United States, Canada
and 21 other countries. (ADQ is part of the Berkshire Hathaway
family, a company owned by WarrenBuffett, the legendary investor
and CEO of Berkshire Hathaway).
Website: www.dairyqueen.com
Founded: 1940
Number of Locations: 6,700 ±
Number of Employ 10,000 ±
Headquarters: Minneapolis, MN
Ownership: Berkshire Hathaway
Dairy Queen – Grayson, KY
http://www.dairyqueen.com/
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REGIONAL MAP
Dairy Queen – Grayson, KY
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LOCAL MAP
Dairy Queen – Grayson, KY
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Dairy Queen – Grayson, KY
AERIAL MAPAERIAL PHOTO
Dairy Queen – Grayson, KY
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Dairy Queen – Grayson, KY
FINANCIAL
ANALYSIS
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Dairy Queen – Grayson, KY
FINANCIAL ANALYSISOFFERING SUMMARY
THE OFFERING ANNUALIZED OPERATING INFORMATION
Property Dairy Queen INCOME
Property Address 618 N Carol Malone BlvdGrayson, KY 41143
Net Operating Income $60,000
Price $1,056,000 RENT SCHEDULE
Capitalization Rate 6.25% YEAR ANNUAL RENT MONTHLY RENT
RENT/SF
Price/SF $349.67 Current $60,000 $5,500 $21.85
07/01/18-06/30/23 $66,000 $5,500 $21.85
PROPERTY DESCRIPTION 07/01/23-06/30/28 $72,600 $6,050 $24.04
Year Built / Renovated 1977
Gross Leasable Area 3,020
Type of Ownership Fee Simple
LEASE SUMMARY
Property Subtype Net Leased Restaurant
TenantFrauenshuh Hospitality Group
KY/IN, LLC
Rent Increases 10% Every 5 Years
Guarantor Corporate Guarantee
Lease Type Absolute Net
Lease Commencement 4/28/1977
Lease Expiration 6/30/2023
Term Remaining on Lease (Years)
5.2
Renewal Options 1 - Five Year Options
Landlord Responsibility None
Tenant Responsibility Absolute
Right of First Refusal/Offer No
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MARKET
OVERVIEW
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Dairy Queen – Grayson, KY
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Dairy Queen – Grayson, KY
MARKET OVERVIEW
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Dairy Queen – Grayson, KY
MARKET OVERVIEW
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Michael MatusikVice President of InvestmentsOffice |
800.948.1250 Ext 102Direct | 714.874.4004Fax |
[email protected]: CA
01888322www.primenetlease.com
Paul R MatusikDirector of InvestmentsOffice | 800.948.1250 Ext
101Direct | 714.875.2400Fax |
[email protected]: CA
01351021www.primenetlease.com
P R E S E N T E D B Y
In Association with Dawn Wientjes of Falconite Development
Group, a licensed Kentucky Broker (74194)
