Knoxville, Tennesee - LoopNet · There are three access points - one along North Braodway Street (44,000 VPD) & U.S. Highway 441, a major thoroughfare traveling . through Knoxville,

Representative Photo Offering Memorandum

Knoxville, Tennesee

New, 20-Year, Modified NNN Lease

Building Recently Underwent Complete Renovation

Site Offers Three Access Points

Dense Retail Corridor | Across the Street from Grocery Anchored

Shopping Center

Within Close Proximity to University of Tennessee and

Downtown Knoxville

CONFIDENTIALITY AND DISCLAIMER

NON-ENDORSEMENT NOTICE

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap Real Estate Investment Services of Florida, Inc. (“Marcus & Millichap”) and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap 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, PCB’s 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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.

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success.Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corpora-tion’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NET LEASED DISCLAIMER

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services© 2017. All rights reserved.

INVESTMENT HIGHLIGHTS

• New, 20-Year, Modified NNN LeaseDenny’s located at 4834 North Broadway Street in Knoxville has a brand new, 20-year, modified triple net lease. Tenant pays for CAM, insurance and taxes.• Renewal Options and Rent IncreasesThere are four, five-year renewal options with a seven percent rental increases every five years throughout the base term and option periods, beginning in year 11.• Strong FranchiseeThe lease is guaranteed by RJC, LLC, a successful 34-unit Denny’s operator and the 6th largest Denny’s franchisee in the U.S.• AccessThere are three access points - one along North Braodway Street (44,000 VPD) & U.S. Highway 441, a major thoroughfare traveling through Knoxville, and two along Sanders Drive (14,000 VPD). Also, direct on-off ramp access to Interstate 640 (75,000 VPD).• Dense Retail CorridorThe subject property is located across the street from a grocery anchored shopping center, increasing consumer traffic and crossover shopping, and within the Harvest Towne Shopping Center with street front signage. Other surrounding retailers include Kroger, Office Depot, Dollar General, Party City, CVS, Walgreens, Panera Bread, Taco Bell, Chick-fil-A and many more. • Strong Demographics in 5-Mile Trade AreaOver 143,000 residents and 96,000 employees support the trade area, and $51,000 average household income.


FINANCIAL OVERVIEW

Overview4834 North Broadway Street, Knoxville, TN 37918

Price: $2,024,000Cap Rate: 6.00%Rentable Square Feet: 4,582 SFAnnual Rent: $121,423Rent/Square Foot: $26.50Land Area: 0.693 AcresYear Built/Remodeled: 1997/2017

Base Term Annual Rent PSF Cap Rate

5/1/2018-10/30/2028: $121,423 $26.50 6.00%11/1/2028-10/30/2033: $129,923 $28.36 6.42%11/1/2033-10/30/2038: $139,017 $30.34 6.87%

Option Periods Annual Rent PSF Cap Rate

11/1/2038-10/30/2043: $148,748 $32.46 7.35%11/1/2043-10/30/2048: $159,161 $34.74 7.86%11/1/2048-10/30/2053: $170,302 $37.17 8.41%11/1/2053-10/30/2058: $182,223 $39.77 9.00%

Tenant: Denny’sWebsite: www.Dennys.comLease Guarantor: RJC, LLC (34 Units)Lease Type: Modified NNNLease Term: 20 Years

Option Periods: 4, 5-Year OptionsRental Increases: 7% Every 5 Years Beginning Year 11Roof & Structure: LandlordRent Commencement: 5/1/2018Lease Expiration: 10/30/2038

Lease Summary

http://www.Dennys.com

TENANT SUMMARY


Denny’s is America’s diner. This is where guests have come for over 60 years now to sit back, relax and enjoy delicious, hearty meals 24/7, every day of the year. From breakfast anytime to satisfying lunches and dinners, if you’re in the mood for it, chances are we’re serving it. Denny’s is always open, always welcoming and always serving up hearty diner food along with a mug of fresh hot coffee. So come on in anytime, park yourself in a comfortable booth, take a seat at the counter, whatever you want, because it won’t take you long to understand why we’re truly America’s diner.

Harold Butler and Richard Jezak opened a donut stand in 1953 and called it Danny’s Donuts. Butler’s stated promise was “to serve the best cup of coffee, make the best donuts, give the best service, offer the best value, and stay open 24 hours a day.”

Today, that donut stand is a restaurant chain with a slightly different name, over 1,600 locations, and a proven reputation for keeping Mr. Butler’s original promise. Denny’s started franchising in 1963, and most Denny’s restaurants are now franchisee owned.

NASDAQ:DENN

STOCK SYMBOL

$506.95MILLION

REVENUE (2016)

1,600+LOCATIONS

HEADQUARTERED INSpartanburg, SC

Very first Denny’s located in Lakewood California, 1953

SITE PLAN


North Broadway Street

Lease Term: 20 Years

Option Periods: 4, 5-Year Options

Lease Commencement: 5/1/2018

Lease Expiration: 10/30/2038

Taxes: Tenant shall pay its Proportionate Share of the real property taxes applicable to the Demised Premises for each full or partial calendar year during the Lease Term.

Maintenance & Repairs:

Landlord shall keep the foundation, the exterior walls (except plate glass windows, doors, door closure devices, window and door flames, molding, locks and hardware and painting or other treatments of interior and exterior walls) and roof of the Demised Premises in good repair, except the Landlord shall not be required to make any repairs occasioned by the act, omission or negligence of Tenant, its agents, employees, subtenants, licensees and concessionaires, which repairs shall be made by Tenant, subject to Landlord’s supervision and approval.

Tenant shall keep and maintain in good order, condition and repair (which repair shall mean replacement if necessary)the Demised Premises and every part thereof except as otherwise stated in the lease, hereof, including, without limitation, the exterior and interior portions of all doors, door checks, security gates, windows, glass, utility facilities, plumbing and sewage facilities within the Demised Premises or under the floor slab (including free flow up to the main sewer line), fixtures, heating, ventilating and air conditioning (including exterior mechanical equipment), exterior signs and exterior electrical equipment serving the Demised Premises and interior walls, floors and ceilings.

Tenant, at its sole cost and expense, shall enter into a regularly scheduled preventive maintenance/service contract with a maintenance contractor approved by Landlord, for servicing all heating, ventilating and air conditioning systems and equipment servicing the Demised Premises, and an executed copy of such contract shall be delivered to Landlord

Insurance:

Tenant shall, at Tenant’s expense, obtain and keep in force during the Lease Term a policy of comprehensive general liability insurance, together with a broad form comprehensive general liability endorsement, covering any and all claims for injuries to persons in or upon the Demised Premises, including all damages from signs, glass, awnings, fixtures or other appurtenance now or hereafter erected on the Demised Premises, and insuring the indemnity provision as set forth in this Paragraph. Such insurance shall be in an amount not less than $1,000,000 for injury to one person in one accident, occurrence or casualty and not less than $2,000,000 for injuries to more than one person in one accident, occurrence or casualty or, in lieu of the foregoing, a combined single limit of $2,000,000. The limits of said insurance shall not, however, limit the liability of Tenant. Not more frequently than each three (3) years, if, in the reasonable opinion of Landlord, the amount of liability insurance required hereunder should not be adequate, Tenant shall increase said insurance coverage as required by Landlord.

LEASE ABSTRACT


AERIAL


44,000Daily75,000

Daily

McDonald’sWalgreens

AERIAL


Broadway Street | 44,000 VPD

Sanders Drive | 14,000 VPD

LOCAL & REGIONAL MAPS


Location Highlights

LOCATION OVERVIEW


• Located Across the Street from a Grocery Anchored Shopping Center, Increasing Consumer Traffic and Crossover Shopping

• Seven Miles from the University of Tennessee, Which has an Enrollment of Nearly 30,000 Students

• Located off North Broadway Street, with a Daily Traffic Count of 42,000 Vehicles, and Within Close Proximity to Interstate 640, with a Daily Traffic Count of 75,000 Vehicles

• Surrounding National Retailers Include Kroger, Office Depot, Planet Fitness, Dollar General, Big Lots, Rent-A-Center, Party City, Advance Auto Parts, CVS, Walgreens, Panera Bread, Taco Bell, Chick-fil-A and Many More

• Six Miles from Downtown Knoxville and Knoxville College

Knoxville is the county seat of Knox County and has an estimated population of nearly 200,000, making it the state’s third largest city after Nashville and Memphis. Knoxville is the principal city of the Knoxville Metropolitan Statistical Area. Knoxville is the home of the flagship campus of the University of Tennessee, whose sports teams, called the “Volunteers” or “Vols”, are extremely popular in the surrounding area. Knoxville is also home to the headquarters of the Tennessee Valley Authority, the Tennessee Supreme Court’s courthouse for East Tennessee and the corporate headquarters of several national and regional companies. As one of the largest cities in the Appalachian region, Knoxville has positioned itself in recent years as a repository of Appalachian culture and is one of the gateways to the Great Smoky Mountains National Park.

Knoxville is home to a rich arts community and has many festivals throughout the year. Its contributions to old-time, bluegrass and country music are numerous. In its May 2003 “20 Most Rock & Roll towns in the U.S.” feature, Blender ranked Knoxville the 17th best music scene in the United States.

Forbes magazine named Knoxville among the Top 10 Metropolitan Hotspots in the U.S., and within Forbes’ Top 5 for Business & Careers, just behind cities like New York and Los Angeles. The Tennessee Valley Authority (TVA), the nation’s largest public power provider, is a federally owned corporation headquartered in Knoxville. The largest publicly traded company based in Knoxville is movie theater chain Regal Entertainment Group. Regal is the only Knoxville-based company listed in the Fortune 1000. The largest privately held company based in Knoxville is Pilot Flying J, the nation’s largest truck stop chain and sixth largest private company.

Knoxville, Tennessee | Knox County

MARKET OVERVIEW

OVERVIEW

KNOXVILLE

The Knoxville metro area is centered in the eastern portion of Tennessee

and is the third largest market after Nashville and Memphis. The metro

consists of nine counties: Anderson, Blount, Campbell, Grainger, Knox,

Loudon, Morgan, Roane and Union. The local economy centers primarily

around economic hubs created by the University of Tennessee and Great

Smokey Mountain tourism. The city of Knoxville is the county seat of

Knox County and is home to 186,000 residents.

▪ Technology and research activities are also growing in the metro, with multiple National Science

Foundation-funded centers associated with the University of Tennessee. In addition, multiple

research and development firms are located in the Tennessee Technology Corridor.

▪ Diversification has brought major employers a variety of industries such as media and healthcare

with companies like Regal Entertainment Group, Scripps Networks Interaction and TeamHealth.

▪ While diversifying from its manufacturing roots into media and professional service jobs, the metro

still houses big manufacturing operations, including a Coca-Cola bottling plant.

DEMOGRAPHICS

ECONOMY

METRO HIGHLIGHTS

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

HIGHER EDUCATION

The University of Tennessee has 28,000 students and 9,800 employees. It is

estimated the school has a $1.6 billion impact on the state’s economy.

INLAND PORT

The Port of Knoxville is connected to the nation’s waterways and the Gulf of

Mexico via channels on the Mississippi and Tennessee Rivers.

GREAT SMOKEY MOUNTAIN CULTURE

The Knoxville region has a strong arts community, contributing to bluegrass and

country music with bands such as Flatt & Scruggs and the Everly Brothers. In

nearby Pigeon Forge, the park Dollywood hosts 3 million tourists in a season.

870K

2017POPULATION:

354K

2017HOUSEHOLDS:

40.7

2017MEDIAN AGE:

$48,500

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

37.8U.S. Median:

$56,3005.5%

Growth2017-2022*:

4.7%

Growth2017-2022*:



DEMOGRAPHICS

POPULATION 1 MILE 3 MILES 5 MILES2010 Population 6,429 55,428 133,9562017 Population 6,565 57,362 139,9522022 Population 6,618 58,523 143,5682017 Male Population 3,152 27,263 66,9612017 Female Population 3,413 30,099 72,9912017 Median Age 39.4 37.9 35.2

RACE & ETHNICITY 1 MILE 3 MILES 5 MILESAmerican Indian, Eskimo 0.3% 0.4% 0.4%Asian 0.7% 0.8% 1.1%Black 6.8% 10.1% 18.7%Hawaiian/Pacific Islander 0.0% 0.1% 0.2%White 87.4% 82.3% 74.4%Other 2.0% 3.4% 2.4%Multi-Race 2.8% 2.9% 3.0%Hispanic Ethnicity 3.9% 6.5% 5.1%Not of Hispanic Ethnicity 96.1% 93.5% 94.9%

HOUSEHOLDS 1 MILE 3 MILES 5 MILES2010 Households 3,122 25,039 57,1122017 Households 3,177 25,914 59,9612022 Households 3,224 26,662 62,058

HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES2010 Avg Household Income $50,219 $47,881 $48,0622017 Avg Household Income $51,398 $49,491 $49,6882022 Avg Household Income $60,680 $58,339 $58,9882010 Med. Household Income $38,268 $34,848 $33,6412017 Med. Household Income $40,526 $36,854 $35,4582022 Med. Household Income $48,040 $43,332 $41,5832010 Per Capita Income $24,456 $21,736 $20,9672017 Per Capita Income $24,941 $22,459 $21,7322022 Per Capita Income $29,626 $26,677 $25,928

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Marcus & Millichap (NYSE: MMI) has established itself as a leading and expanding investment real estate company with nearly 1,500 brokers in 78 markets throughout the United States and Canada. The foundation of our investment sales is the depth of our local market knowledge. Our 44-year history of maintaining investor relationships in local markets enables us to be the best information source and transaction service provider in North America.

About Marcus & Millichap

The Wolfe Retail Group of Marcus & Millichap specializes in the sale of single-tenant properties and shopping centers and has successfully assisted clients in selling over 450 separate commercial properties with a market value exceeding $1.25 billion. Having closed sales in more than 40 states, our track record is evidence that we are one of the premier brokerage teams in the United States.

With our experience and background in various fields such as law and finance, we have proved to be invaluable to our clients, earning their trust and exceeding their expectations while best assisting them in their real estate transactions.

For more about the Wolfe Retail Group, or to view all of our available listings, visit www.WolfeRetailGroup.com

The Wolfe Retail Group has sold over

450 properties in more than

40 states

http://www.WolfeRetailGroup.com

Representative Photo

Barry M. WolfeSenior Managing Director Investments

[email protected](954) 245-3493

Alan LipskyVice President Investments


Evan WhelanAssociate


Catie JacksonMarketing Coordinator


Angelica LinaresTransaction Coordinator


mailto:Evan.Whelan%40marcusmillichap.com?subject=

mailto:Angelica.Linares%40marcusmillichap.com?subject=

Documents

Knoxville, Tennesee - LoopNet · There are three access points - one along North Braodway Street (44,000 VPD) & U.S. Highway 441, a major thoroughfare traveling . through Knoxville,