Krispy Kreme / McAlister's Deli · 2019. 3. 8. · Krispy Kreme founder Vernon Rudolph bought a yeast-raised recipe from a New Orleans chef and, in 1937, rented a building in what

5755 North Point Parkway, Suite 262

Alpharetta, GA 30022

770.481.1960

www.shanegroup.net

KRISPY KREME /

MCALISTER'S DELI

632 W. Oglethorpe Hwy, Hinesville, GA

5755 North Point Parkway, Suite 262

Alpharetta, GA 30022

770.481.1960

www.shanegroup.net

http://www.shanegroup.nethttp://www.shanegroup.net

632 W. Oglethorpe Hwy, Hinesville, GA 770.481.1960 | www.shanegroup.net

KRISPY KREME / MCALISTER'S DELI



See accompanying Confidentiality Statement.

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This immediate area is flourishing with new development and is experiencing a true growth boom with nearly every chain

restaurant in the area reporting higher sales volumes than their respective chain averages. The property is located in the major

retail and dining node of Hinesville, Georgia near Fort Stewart Army Base. Fort Stewart is comprised of over 288,000 acres and

home to 22,500 people including 18,500 full-time soldiers, 4,000 Army Civilian workers, and more than 18,000 military retirees.

Fort Stewart is the Army’s premier power projection platform on the East Coast and has an economic impact of $4.9 billion to

Coastal Georgia. There are over 67,000 people within a 10-mile trade area with an average household income of approximately

$60,000 per year. Additionally, there is a daytime population of over 32,000 people within 5 miles.

This offering is a newly constructed 3-tenant McAlister’s Deli / Krispy Kreme / MadVapes located in Hinesville, Georgia, home to

Fort Stewart Army Base, approximately 30 minutes southwest of Savannah. McAlister’s Deli (77+ unit operator), Krispy Kreme

(corporate lease / 1,000 locations ), and MadVapes (corporate lease / 113 locations, nationally) have each executed new 10-year

net leases. McAlister’s and Krispy Kreme have 10% rent increases every 5 years, and MadVapes has 2% annual increases during

the original and option terms. The property occupies an excellent location, across from Lowe’s, Walmart Supercenter, Dick’s

Sporting Goods, TJMaxx, Hobby Lobby, and numerous other national retailers. The property has superb visibility and access to

West Oglethorpe Hwy which carries over 35,800 cars per day.

3 Tenants / Long Leases / Passive Ownership

McAlister’s Deli –10-Year Lease (77 Location Operator)

Krispy Kreme: 10-Year Corporate Lease (1,000+ Locations)

MadVapes: 10-Year Corporate Lease (113 Locations)

Tremendous Growth Area and Disposable Income

Near Fort Stewart (22,500 Personnel)

“Suburb” of Savannah—Located 30 Minutes Southwest

BUILDING: 7,750 SF | LAND: 1.467ACRES | YEAR BUILT: 2018




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W. Oglethorpe Hwy 35,800 Cars Per Day

13

,00

0 C

ars P

er D

ay

Proposed

Future

Retail

Proposed

Future

Retail

Plus 2 other

National

Tenants

(signed LOI)




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Fort Stewart (downtown area)

* Expanded Area is over

288,000 Acres

* Home to 22,500 Employees

including 18,500 full-time soldiers,

4,000 Army Civilian workers, and

more than 18,000 military retirees.

* Over 3,400 family housing units plus

over 6,177 barracks.

* Comprised of 22.4mm SF of facilities

totaling $7.5 Billion.

* Economic Impact of $4.9 Billion in

Coastal Georgia!

Fort Stewart-Hunter Army Airfield is the Army’s Premier Power Projection Platform on the East Coast responsible for training, equipping,

deploying , and redeploying active and reserve component Army units, and it’s home to the historic 3rd Infantry Division. Stewart’s 288,000 acres

provide unequaled joint training opportunities along the Eastern seaboard for all branches of military. It also plays a critical role in deployment

capabilities. The largest military aircraft can land at Hunter, load the biggest equipment in the Army inventory, and then deploy equipment and

soldiers within an 18-hour wheels-up timeline to contingency operations anywhere in the world. Stewart-Hunter is an Army Community of

Excellence earning the Chief of Staff’s top award 5 times from 2004 to 2015 for being the best place to live, train, work and raise a family.

Downtown

Hinesville




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SCHEDULED BASE RENTAL

3,850 SF New 10 Year Lease 111,650$

10% Increases every 5yrs

2,700 SF New 10 Year Lease 85,050

10% Increases every 5yrs

1,200 SF New 10 Year Lease 34,200

2% Annual Increases

TOTAL SCHEDULED INCOME 230,900

RECAPTURE (estimated per lease)

McAlister's Deli 18,288

Krispy Kreme 16,364

MadVapes 5,760

40,412

GROSS OPERATING INCOME 271,312$

EXPENSES (estimated per lease)

Taxes 10,000$

Insurance 3,875

CAM 19,375

33,250$

NET OPERATING INCOME 238,062$

PRICE$3,400,000

CAP RATE7.00%

BUILDING / GLA7,750 SF

LAND1.467 ACRES

YEAR BUILT2018




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10 Years (commenced Dec 2018); Two 5-Year Options

Year Annual Base Rent

1 to 5 $85,050

6 to 10 $93,555

11 to 15 $102,924

16 to 20 $113,211

Admin/Mgmt Tenant pays 10% Admin Fee on CAM Expenses and 4% management fee

About the Tenant

❖

❖

JAB Holdings Brands

Krispy Kreme Doughnuts, Inc. is an American doughnut company and coffeehouse chain founded in

Winston-Salem, North Carolina. Krispy Kreme founder Vernon Rudolph bought a yeast-raised recipe

from a New Orleans chef and, in 1937, rented a building in what is now historic Old Salem in Winston-

Salem, North Carolina, and began selling to local grocery stores. Steady growth preceeded a heavy

retail expansion as a public company in the period 2000-2016. In 2016, the company returned to

private ownership under JAB Holding Company, a private Luxembourg-based firm with successful

operation of a number of household namme brands.

Option 1 $8,577.00

Utilities Paid directly by Tenant

Option 2

Taxes

Insurance

1,000+ Locations Worldwide

Owned by JAB Holding Company (Acquired in 2016)

CAM

Tenant Krispy Kreme Doughnuts, Inc.

Rent Schedule Monthly Base Rent

Building 2,700 SF

Term

Guarantor Corporate Guarantee

P.S.F.

$7,087.50

$9,434.25

}

$7,796.25

$31.50

$34.65

$38.12

$41.93

Tenant pays Estimated Monthly Pro Rata Share to Landlord




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10 Years (commeced January 2019); Four 5-Year Options


1 to 5 $111,650

6 to 10 $122,815

11 to 15 $135,096

16 to 20 $148,610

21 to 25 $163,471

26 to 30 $179,795

Tenant pays Estimated Monthly Pro Rata Share TO Landlord

Admin Tenant pays 10% Admin Fee on CAM Expenses

About the Tenant

❖

❖

Roark Capital Group

$9,304.17

$12,384.17

}

Option 3 $13,622.58

Option 4 $14,982.92

$10,234.58

Tenant McAlister's Deli


Building 3,850 SF

Term

Guarantor Second Largest McAlister's Franchisee

P.S.F.

McAlister's Deli is an American chain of fast casual restaurants founded in 1989 in Oxford, Mississippi. There

are currently over 400 locations in 26 states. They are privately owned by FOCUS Brands, an American

company based in Sandy Springs, GA, that is an affiliate of the American private equity firm, Roark Capital

Group, which currently owns Schlotzsky's, Carvel, Cinnabon, Moe's Southwest Grill, Auntie Ann's, Jamba

Juice brands as well as McAlister's Deli.

Option 1 $11,258.00


Option 2

Taxes

Insurance

Tenant and Guarantor is McAlister's 2nd largest Franchisee

Operating 77 Locations and reporting Gross Sales over $75 million in 2017

CAM

$46.70

$29.00

$31.90

$35.09

$38.60

$42.46




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10 Years (commenced Oct 2018); Four 5-Year Options


1 $34,200

2 $34,884

3 $35,582

4 $36,293

5 $37,019

6 $37,760

7 $38,515

8 $39,285

9 $40,071

10 $40,872

Options

Tenant pays Estimated Monthly Pro Rata Share to Landlord

Admin Tenant pays 10% Admin Fee on CAM Expenses

About the Tenant

Tenant MadVapes


Building 1,200 SF

Term

Guarantor Corporate Lease

P.S.F.

MadVapes was started in July 2009 by a software programmer in Huntersville, NC. Beginning with a

humble start from a home office, MadVapes has rapidly expanded due to robust demand now occupying a

10,000 SF warehouse. In less than 10 years the company has expanded to become one of the largest Vape

retailers in the world. The company currently has 200 employees with 113 stores including locations in

Europe providing vaping products as an alternative to cigarettes. The average MadVapes location reports

$431,000 annually.

$2,907.00


Taxes

Insurance

$2,965.00

}

$3,085.00

CAM

$2,850.00

for prior year. $420K is below average of MadVapes sales.

Four 5-Year Options with same 2% Annual Increase

$3,147.00

$3,210.00

$3,274.00

$3,339.00

$3,406.00

*Sales Termination Right: Annual right to terminate lease after Year 5 if sales are less than $420K

$3,024.00

$28.50

$29.07

$32.74

$33.39

$34.06

$29.65

$30.24

$30.85

$31.47

$32.10




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Hinesville, GA is approximately 40 Miles

Southwest of Savannah, GA

Fort Stewart

288,000 Acres




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Subject




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Directly across from Power Center (Dick’s, TJMaxx, others) Located nearby Fort Stewart

Fort Stewart

288,000 Acres




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Three Miles Five Miles Ten Miles Notes

2018 Population 32,750 53,693 67,614

2010 Population 32,085 52,031 63,585

5 Year Projected 32,480 53,584 69,027

2018 Households 12,004 18,548 23,552

% Owner Occupied 39.50% 36.00% 40.20%

% Renter Occupied 60.50% 64.00% 59.80%

2010 Households 11,589 17,702 21,857

5 Year Projected 12,010 18,664 24,239

2018 Average Household Income $62,742 $58,932 $58,912

5 Year Projected $70,896 $66,215 $65,885

Projected Growth Over the Next 5 Years 13.00% 12.36% 11.84%

Employment & Establishments

2018 Employees/Daytime Population 27,171 32,554 33,369

2018 Total Establishments 1,155 1,325 1,445

White 39.60% 42.40% 43.90%

African American 45.80% 43.20% 42.40%

Hispanic Origin (Any Race) 14.80% 15.30% 13.90%

Native American / Alaskan Native 0.50% 0.60% 0.60%

Asian/Pacific Islander 3.70% 3.30% 3.00%

Two or More Races 6.10% 6.30% 6.00%

Other Race 4.20% 4.30% 4.10%

Race

Population

Households

Income

Documents

Krispy Kreme / McAlister's Deli · 2019. 3. 8. · Krispy Kreme founder Vernon Rudolph bought a yeast-raised recipe from a New Orleans chef and, in 1937, rented a building in what