Dairy ueen Grill Chill EXCLUSIVE LISTING | Freeport, FL€¦ · Dairy Queen Grill Chill | Freeport, FL Offering Memorandum U ARS MAAGIG DIRCTOR 954 514-9477 daronsoncalkain.com Who

Dairy Queen Grill & Chill | Freeport, FLOffering Memorandum

DOUG ARONSONMANAGING DIRECTOR

(954) 514-9477 [email protected]

Representative Photo

EXCLUSIVE LISTINGOffering Memorandum

1

C A L K A I N .C O MC A L K A I N .C O M

Dairy Queen Grill & Chill | Freeport, FL


16380 US Hwy 331 S | Freeport, FL 32439

Asking Price $2,191,305 | Cap Rate 5.75%

Net Operating Income (NOI) $126,000

Rent/Month $10,500

Rentable Square Feet 2,983+/- SF

Land Area 0.66+/- Acres

Tenant Name Dairy Queen

Guarantor Franchisee/Personal

Ownership Type Fee Simple

Lease Type Absolute NNN

Landlord Responsibilities None

Store Open 2017

Lease Term Remaining 15 Years

Rent Commencement December 20, 2017

Lease Expiration December 31, 2032

Increases 1.5% Annually

Options Two (2), Five (5) Year

Rent ScheduleTerm Increases Annual Rent Monthly Rent

Year 1 - $126,000 $10,500

Year 2 1.5% $127,890 $10,657

Year 3 1.5% $129,808 $10,817

Year 4 1.5% $131,755 $10,979

Year 5 1.5% $133,731 $11,144

Year 6 1.5% $135,737 $11,311

Year 7 1.5% $137,773 $11,481

Year 8 1.5% $139,839 $11,653

Year 9 1.5% $141,937 $11,828

Year 10 1.5% $144,066 $12,005

Year 11 1.5% $146,227 $12,185

Year 12 1.5% $148,420 $12,368

Year 13 1.5% $150,647 $12,553

Year 14 1.5% $152,906 $12,742

Year 15 1.5% $155,200 $12,933

Investment Highlights • Brand new construction

• Publix grocery store outparcel

• Located on Florida’s Emerald Coast

• 15-year absolute NNN lease

• Rare 1.5% annual rent increases

• Full service Grill & Chill with drive-thru

• Guarantor: franchisee/personal

• Award winning DQ operator

• Florida has no state income tax

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Financial Summary


A Story of Sweet SuccessFor more than 70 years, the DQ® system’s recipe for success has been simple. It’s been a combination of hardworking people who own and operate restaurants, and great-tasting food and tempting treats served in our establishments.

Their phenomenal story began with the 10-cent sale of a then unnamed product on August 4, 1938, in Kankakee, Illinois. A father and son partnership in Green River, Illinois, had been experimenting with a soft frozen dairy product for some time. They contacted Sherb Noble, a good friend and customer, who agreed to run the “all you can eat” trial sale at his walk-in ice cream store. Within two hours, he dished out more than 1,600 servings of the new dessert.

Today, the DQ® system is one of the largest fast food systems in the world, with more than 6,000 restaurants in the United States, Canada and 18 other countries.

Although much has changed in the world and in the DQ® system through the years, one constant has remained: DQ® restaurants are still, and always have been, the place to find kids’ sports teams celebrating a victory, business people on their lunch break and families taking time out to enjoy great food and soft serve treats. And success for the DQ® system is as simple today as it was in 1940. Satisfied customers lead to successful restaurants. Each owner of their independently owned and operated establishments worldwide is committed to nothing less than the “Fan Food not Fast FoodTM”slogan.

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 of Berkshire Hathaway.

Franchise Times estimates DQ sales worldwide at more than $3 billion, ranking it the 32nd largest franchise chain of the Top 200 Franchise Chains list.

HistoryThe founders of the Dairy Queen® system were men and women who introduced a new kind of dessert treat and, in the process, developed the foundation of the franchising industry. The history of the DQ® system is a story of a unique product that created an industry.

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Tenant Overview


Location Overview

Distance To:Fort Walton Beach 37 miles

Pensacola 92 miles

Tallahassee 133 miles

Atlanta, GA 292 miles

TallahasseeFort Walton

Beach

Atlanta, GA

Pensacola

Subject Site

Freeport

10

75

75

85

65

4



Freeport Middle School

Freeport Regional Sports Complex

FREEPORT

331

US 33

1 S 11

,500

VPD

E Main Street 14,700 VPD

Subject Site

5



US 33

1 S 11

,500

VPD

E Main Street 14,700 VPD

Brica Inc

Freeport Pet Clinic

6

Subject SiteComing Soon


7

Site Plan

US 3

31 S

11,5

00 V

PD


8

Proposed Design


Radius 3 Miles 7 Miles 10 MilesPopulation2017 Population 3,989 8,120 13,819

2022 Population 4,766 9,497 16,340

2010-2017 Annual Rate 4.85% 3.07% 3.48%

2017-2022 Annual Rate 3.62% 3.18% 3.41%

2017 Male Population 50.2% 50.7% 50.7%

2017 Female Population 49.8% 49.3% 49.3%

2017 Median Age 41.2 41.7 41.4

Households2017 Total Households 1,617 3,238 5,576

2022 Total Households 1,926 3,774 6,571

2010-2017 Annual Rate 4.83% 2.96% 3.38%

2017-2022 Annual Rate 3.56% 3.11% 3.34%

2017 Average Household Size 2.47 2.51 2.48

Median Household Income2017 Median Household Income $50,533 $48,066 $48,036

2022 Median Household Income $57,463 $54,191 $54,677

2017-2022 Annual Rate 2.60% 2.43% 2.62%

Average Household Income2017 Average Household Income $65,910 $62,921 $64,096

2022 Average Household Income $77,221 $73,713 $74,827

2017-2022 Annual Rate 3.22% 3.22% 3.14%

Per Capita Income2017 Per Capita Income $26,490 $25,435 $26,198

2022 Per Capita Income $30,913 $29,676 $30,459

2017-2022 Annual Rate 3.14% 3.13% 3.06%

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Demographics


Freeport, FLFreeport is a city in Walton County, Florida and began about 1830 when settlers were attracted to the natural harbor of LaGrange Bayou located near the eastern end of Choctawhatchee Bay and the mouth of the Choctawhatchee River. In Freeport Florida, a good number of residents work on Eglin Air Force Base, as military personnel, contractors or civil service, but the lions share work south of the Bay in South Walton County.

Freeport Florida is literally the crossroads between North and South Walton County. It is advantageously situated and within driving proximity to Tallahassee, Pensacola, Montgomery, Ft. Walton Beach, and Panama City. It is within an hour of the Okaloosa County Regional Airport, the Bay County Regional Airport the Destin Municipal Airport and the DeFuniak Springs Municipal Airport. It is a half-hours drive from the South Walton Beaches and golf courses.

Just south of Freeport are some of the most spectacular and beautiful beaches in the world. With sugar white sand, clear emerald green waters, towering sand dunes and more, here you can walk for miles, swim, paddleboard, fish, and more, while taking in the most gorgeous scenery around. Enjoy the beach communities, eclectic shopping, or simply relax while listening to the waves break at your feet.

Freeport Homes

Windswept Dunes Golf CourseGrayton Beach State Park

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Market Overview


DOUG ARONSONMANAGING DIRECTOR

(954) 514-9477 [email protected]

Who Are We? Calkain Companies LLC is a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management.

We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client’s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities’ specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry.

Our HistoryLike most success stories, Calkain was formulated from humble beginnings. Jonathan W. Hipp, President and CEO, took the initiative to build upon his decades of experience and performance and left a large international brokerage firm to become an independent and innovative leader within the triple net lease investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in 2005.

With the growth in staff, seasoned professionals have been attracted to Calkain’s model of innovation, entrepreneurship and the fostering of long-lasting and meaningful relationships. Industry experts have joined Calkain in the hopes of implementing the skills they have honed in complementary aspects of real estate investment.

Through a tremendous endeavor, tireless hours have been committed to continually prove that Calkain is America’s Net Lease Company®. Its countless accolades received from the world’s leading business publications, including Forbes™, Fortune™ and the New York Times™ have confirmed that Calkain is a true leader in triple net lease investing services.

Client Testimonial

“USRA has worked with Calkain on numerous occasions. They have always been meticulous in their work ethic, providing superior service and extremely prompt attention to our needs. I highly recommend them.

- Jack Genende, Partner | U.S. Realty Advisors, LLC. (USRA)

$11.5 Billion in Closed Transactions

$350 Million

in Active Listings

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C A L K A I N .C O MC A L K A I N .C O M

About Calkain

DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regula-tions, 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(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make 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.

Corporate Headquarters Washington, DC12930 Worldgate Drive | Suite 150 Herndon, VA 20170 T: (703) 787-4714 • F: (703) 787-4783

Fort Lauderdale200 SW 1st Avenue | Suite 880 Fort Lauderdale, FL 33301 T: (813) 282-6000

Atlanta111 Village Parkway, Building 2 | Suite 202 Marietta, GA 30067 T: (404) 900-5629

Boston101 Federal Street | Suite 1900 Boston, MA 02110 T: (617) 261-8584

CALKAIN.COM

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Dairy ueen Grill Chill EXCLUSIVE LISTING | Freeport, FL€¦ · Dairy Queen Grill Chill | Freeport, FL Offering Memorandum U ARS MAAGIG DIRCTOR 954 514-9477 daronsoncalkain.com Who