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Investment Highlights• 20 year absolute NNN lease with 7.5% rent bumps
every 5 years and 4 renewal options of 5 years each
• Existing location built in 1996 and remodeled in 2011 with above average store sales of $1.925 million in 2014
• Franchisee operator with 136 current units and over 30 years experience in the fast food industry
• Close proximity to downtown, Fairmont State University (4,600 students), Fairmont General Hospital (700 employees), Fairmont Field Club & Golf Course, Fairmont Municipal Airport and the I-79 Technology Park
• TheI-79TechnologyParkiscurrentlya400acre750,000SFclassAofficeanddatacentercommunitywith over 30 businesses and 1,500 employees - the Park has capacity for over 1.5 million SF of space and potential workforce over 10,000
• Trafficcountsover14,500infrontofpropertyandover126,000residentsina15mileradius
Fairmont, WV+/- 3,731 Square Feet
$2,752,000 - 6.50% Cap Rate
Jack Jamison, Broker-In-Charge550S.MainStreet,Suite300•Greenville,SC29601
864.263.5414o•864.232.0160f•www.REALTYLINKDEV.com
For investment information:J. Tyson Glasser, CCIM •InvestmentSalesAdvisor
[email protected]•864.263.5427o•404.435.6312c
Investment Property
ATTENTION: This brochure has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property presented. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. In particular, RealtyLink,LLChasnotmadeanyinvestigationandmakesnowarrantyorrepresentationwithrespecttothefinancialconditionorbusinessprospectsofanytenantoranytenant’splans or intentions to continue or renew its occupancy of the subject property. The information contained in this brochure has been obtained from sources we believe to be reliable;however,RealtyLink,LLChasnotconductedanyinvestigationregardingthesemattersandmakesnowarrantyorrepresentationwhatsoeverregardingtheaccuracyorcompleteness of the information provided.
TheRealtyLinknameisaregisteredtrademarkofRealtyLink,LLC.
TheRealtyLinklogoisaregisteredservicemarkofRealtyLink,LLC.
Textandcontent©Copyright2014RealtyLink,LLC.
808 Fairmont Avenue
Fairmont, Marion County, WV 26554
Table of Contents
Investment Summary
BrandProfile
TenantProfile
Property Photos
Site Plan
Market Aerial
LocationMaps
MarketProfile
Demographics
Investment Summary
Location: Along the Interstate 79 high tech corridor in north central WV about 90 miles south of Pittsburgh, PA
Land Size: +/- .863 Acres
Building Size: +/- 3,731 Square Feet
Building Age: Developed in 1996 and remodeled in 2011
Purchase Price: $2,752,000
Cap Rate: 6.50%
Annual Base Rent: $178,897.55 (years 1-5)
Store Sales: $1,749,022 in 2013 (Contact broker for more historical sales data)
Tenant: GPSHospitality,LLC(seeTenantProfileformoreinfo)
Guarantor: GPS Hospitality Acquisition Company, LLC and a personal guaranty from operator
Lease Type: Absolute Triple Net
Lease Commencement: December 30, 2013
Base Lease Term: 20 Years
Option Terms: 4 at 5 Years
Landlord Responsibility: None
Tenant Responsibility: CAM, Taxes, Insurance, Roof, Structure, Parking Lot, etc.
Parking: 64 spaces including 3 handicap
Zoning: Main Corridor Commercial
TrafficCounts: FairmontAvenue/USHwy250-14,535ADT(2011WVDOTest.)
Interstate 79 - 46,596 ADT (2011 WV DOT est.)
Demographics: 2014 5-Mile 10-Mile 15-Mile
Population 39,684 63,804 126,652
Households 17,059 26,910 52,946
Average HH Income $52,396 $54,637 $56,975
Median HH Income $38,510 $40,880 $42,802
BrandProfile
BurgerKingWorldwideisaDelawarecorporationthatfranchisesandoperatesfastfoodhamburgerrestaurants,principallyundertheBurgerKing®brand(alsoreferredtoasthe“Brand”).Sincethecompany’sfoundingasasinglerestaurant in Miami, Florida in 1954, they have grown to become the world´s second largest fast food hamburger restaurant,orFFHR,chainasmeasuredbythetotalnumberofrestaurants.AsofDecember31,2013theBurgerKingsystem consisted of more than 13,667 restaurants in over 95 countries and territories. Theirrestaurantsfeatureflame-grilledhamburgers,chickenandotherspecialtysandwiches,frenchfries,softdrinksandotheraffordably-pricedfooditems.TheOriginalWHOPPER®,introducedin1957,isoneofthebest-knownhamburgersandwichesintheworldandremainsaperennialfavorite.Duringtheirmorethan50yearsofoperatinghistory,theyhavedevelopedascalableandcost-efficientquickservicehamburgerrestaurantmodelthatofferscustomersfastfoodataffordableprices. They generate revenues from two sources: (1) retail sales at Company restaurants; and (2) franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchise restaurants and franchise fees paid by franchisees as well as property income derived from properties they lease or sublease to their franchisees. Approximately 99% of current restaurants are franchised and they have a higher percentage of franchise restaurants to Company restaurants than their major competitors in the FFHR category. They believe that their high percentage of franchise restaurants provides them with a strategic advantage because the capital required to grow and maintain the Burger King®systemisfundedprimarilybyfranchisees.
TenantProfile
AtGPS,theirnamesaysitallbecauseit’stheshorthandfortheirValues…Goals,PeopleandService.Everythingtheydoand how they make decisions are guided by these Values. And,theirdestination…theirVision…istobetheirGuests’FavoriteFastFoodDestination.BystayingtruetotheirValues,theydeliverwhattheirguestsexpectanddeserve…greattastingfoodservedbyfriendlyandcourteouspeopleinclean,attractive and comfortable restaurants. As they work together to achieve their Vision, they create a Win-Win culture where both the company and individuals are equally successful and prosperous. TheyviewtheGPSteamaspartnerswhosharetheaccountabilitytodeliverthefinancialperformanceofahealthyand growing company while providing the tools, resources and support for every individual to earn competitive compensation and to be positioned for future growth as top performing leaders. This simple formula of Goals, People, and Service paints a clear picture of what it takes to succeed, creates a deep pride in their work and rewards each of them professionally,financiallyandpersonally.Inshort,theyarecommittedtoaculturewhereeverybodywins.
TomGarrettisaseasonedQuickServiceRestaurantoperatorwithover30years’experiencehavingservedasbothCEOofArby’sRestaurantGroupandPresidentofRTMRestaurantGroup.Garretthasdeepexperienceasaconsolidator,acquiringandturningaroundunder-performingfranchisees.In2012,GarrettenteredtheBurgerKingsystembyformingGPSHospitality,LLCtoacquire42company-ownedBurgerKingrestaurantsinAtlanta,Georgia,establishingastrongplatformforgrowth.TheturnaroundinAtlantaiswellunderwaywithsignificantimprovementsinguestsatisfaction,margins and overall operations.
Fortenantfinancialinformation,pleasecontactthebrokerforaConfidentialityAgreement.
Property Photos
Site Plan
Downtown Fairmont
Fairmont State University and
Fairmont General Hospital
Fairmont Field Club & Golf Course
The Technology ParkI-79 High Tech
Cooridor
Market Aerial
To Technology Park and Bridgeport
To Morgantown
LocationMaps
MarketProfile
Nestled in the mountains of West Virginia, Fairmont, the county seat, was known as Middletown before it was renamed in 1843. Building on its historic success, this community has transitioned into a perfect example of preserving the past while embracing the future.
American Coal Company, the precursor of Consolidated Coal Company, opened the state’sfirstcommerciallysuccessfulcoalmineherein1852,andthecompanyisstillinoperation.WhilethecoalindustryplaysavitalroleinWestVirginia’seconomy,thebusinessleadersinMarionCountylongagosawtheneedtodiversifythearea’seconomy and workforce.
Fromitsuniquebeginnings,MarionCounty’srichhistoryhashelpeditprosperintoacountyofintellect,technology,wellness,recreation,culture,goodfriendsandcloseneighbors.Thecounty’sfutureshineslikeabrightlight.Themembers and leaders of the Marion County Chamber of Commerce are excited about the future.
QualityofLifeAsolideducationsystemisthefoundationofanysuccessfulbusinesscommunity,andMarionCountyisproudtoofferthefinesteducationalopportunities from pre-school through college. Parents can choose from private and public schools. With three county high schools, numerous middle and grade schools, and a thriving university and community technical college, the education system in Marion County speaks for itself, and the commitment to quality education is shared by educational leaders and the business community.
Whenitcomestorecreationandentertainment,MarionCountyofferssomethingforeveryone.Visitorswilldiscovergreatvenuesforfun,including rock climbing, go cart racing, rails to trails, boating, hiking, movies, golf and everything in between. The Marion County Parks and RecreationDepartment,alongwithlocalbusinessessuchasValleyWorldsofFunandTygartValleyCinemascreateanatmosphereoffamilyentertainment for all ages.
FairmontGeneralHospitalisaprivate,non-profit,communityhospitalfoundedin1939.ThehospitalprovidesawidevarietyofpatientservicesandisaccreditedbytheJointCommissionandtheAmericanCollegeofSurgeonsCommissiononCancer.FGH,holdstheirstaffofover700physicians,nursesandpersonneltoahighstandardofpatientcare.Thestaffistrainedinnotonlyprovidingexceptionalmedicalservicesbutquality, compassionate care.
MarketProfile
I-79 Technology Park
The I-79 Technology Park is located within the heart of the I-79 High Technology Corridor just south of Fairmont, West Virginia. The location of theI-79TechnologyParkplacesitwithinoneday’sdriveof60%oftheU.S.populationandsomeoftheNation’slargestcitiesincludingNewYork,Boston,Washington, Chicago, Atlanta, Charlotte, Philadelphia, Baltimore, Pittsburgh and Indianapolis.
The I-79 Technology Park includes over 400 acres divided into four contiguousphases.Over750,000squarefeetofworld-classofficeanddatacenter space has been constructed so far, and several hundred thousand additional square feet are currently underway. The I-79 Technology Park is proud to be home to over 30 businesses with approximately 1,500 employees. These businesses include Azimuth, Inc., BAE Systems, Computer Sciences Corporation, Electronic Warfare Associates, Inc., FirstEnergy Corp.,IBM,IdealInnovations,Inc.,LockheedMartin,ManTechInternationalCorporation,NorthropGrumman,TASC,Inc.,TimeWarnerCable,TRAX International Corporation and the West Virginia United Health System. The I-79 Technology Park is also proud to be home to several federal programs including the National Oceanic and Atmospheric Administration (NOAA), National Aeronautics and Space Administration (NASA), the FederalBureauofInvestigation(FBI)andtheDepartmentofArmy–BiometricsIdentityManagementAgency(BIMA).TheI-79TechnologyParkwillsoonbehometotheWestVirginiaCommunityandTechnicalCollegeSystem’sNorthCentralAdvancedTechnologyCenter(ATC)bringingavaluable academic component to the I-79 Technology Park community. www.wvhtf.org/techpark
Demographics
The following pages detail the demographic data for this market
within a 5-mile, 10-mile, and 15-mile radius.