Springfield
Cincinati
Columbus
Dayton
investment opportunityTrinity Partners is offering for sale
Applebee’s NNN Investment - Springfield Ohio, representing fee
simple interest in land and free-standing building improvements
under a single tenant absolute (NNN) net lease with the world’s
second largest Applebee’s franchisee. Over 16 years remain on a
long-term 20-year base lease, and two 5-year options to extend.
Applebee’s opened this location in 1995 and completed an extensive
renovation in 2015. Last reported annual gross sales were 9.8%
higher than the prior year and 26.8% above the system-wide average
store sales. The property updates and exceptionally strong sales
performance, combined with annual rent escalations through the
lease expiration and renewal option periods, and an absolute net
lease structure, provide an attractive yield, relative financial
security and stability for the investor.
trinity-partners.com
INVESTMENT SUMMARY
PROPERTY NAME
ADDRESS
YEAR 1 NET OPERATING INCOME
TENANT/FRANCHISE
LEASE GUARANTOR
LEASE EXPIRATION
TERM REMAINING
APPLEBEE’S NNN INVESTMENT - SPRINGFIELD, OHIO
1800 WEST 1ST STREET SPRINGFIELD, OHIO 45504
$166,909 (effective 1/1/18)
RMH FRANCHISE CORPORATION DBA APPLEBEE’S
FRANCHISEE
DECEMBER 20, 2033
16 YEARS
LEASE TERM 20 YEARS
RENEWAL OPTIONS Two - 5 year options
offered at $3,034,709CAP RATE 5.50%
ANNUAL RENT ESCALATIONS
1.0%
tenant summaryAbout Applebee’s Applebee’s Neighborhood Grill and
Bar is a leading chain of casual dining restaurants that provides
full service, consistent food, reasonable prices and quality
service in a family friendly setting. Each Applebee’s restaurant
reflects its local neighborhood, with décor and memorabilia
highlighting local landmarks, events, and athletic teams.
Applebee’s was founded in Atlanta, Georgia in 1980 by Bill and
TJ Palmer. The Palmer’s company was sold to WR Grace and Company in
1983; however, Bill Palmer was retained as President. Palmer guided
the chain’s entrepreneurial beginnings into the current system.
Palmer personally became an Applebee’s franchisee in 1985 and still
owns a significant number of locations.
Headquartered in Kansas City, MO, Applebee’s is one of the
world’s largest casual dining brands. Currently, there are
approximately 2,000 Applebee’s restaurants that operate in 49
states, one U.S. territory and 16 foreign countries. The Applebee’s
organization employs approximately 28,000 people.
The top 3 largest Applebee’s franchisees operate 39% of the
restaurant chain. They include Apple American Group, with
approximately 480 locations, RMH with 175 locations and Apple Gold
Group with 133 locations.
About FranchisorApplebee’s Services, Inc., and its affiliates,
franchise and operate restaurants under Applebee’s Neighborhood
Grill & Bar and are a DineEquity, Inc (NYSE: DIN) brand.
DineEquity is one of the largest full-service restaurant companies
in the world. With more than 3,600 Applebee’s and IHOP restaurants
in 18 countries, a 99%-franchised system of more than 350
franchisee partners, and approximately 200,000 team members (at
franchised and company-operated restaurants).
About Tenant The property is leased to RMH Franchise Corporation
(RMH), currently the second largest Applebee’s franchisee with 175
locations in 15 states including Alabama, Arizona, Florida,
Illinois, Indiana, Kansas, Kentucky, Mississippi, Missouri,
Nebraska, Ohio, Oklahoma, Pennsylvania, Texas and Wyoming. With
over 7,000 employees, RMH maintains corporate
support offices in Lincoln, NE, Lexington, KY and Atlanta, GA
and is led by Jeff Neumann, Chief Executive Officer.
RMH is wholly owned by ACON Franchise Holdings (AFH), portfolio
company of ACON Investments, an international private equity firm
based in Washington, DC.
Most recently, in August 2015, RMH announced the acquisition of
33 Applebee’s restaurants located in Indiana and Ohio. The
restaurants were purchased from Apple Sauce, Inc., a franchisee
based in Crestview Hills, KY.
RMH’s growth has primarily been from acquisitions of established
franchises, including 45 restaurants from Concord Hospitality, 15
from Apple Illinois and 78 restaurants from Thomas and King.
For more information, visit www.rmhfranchise.com.
trinity-partners.com
market overviewSpringfield, Ohio is located approximately 45
miles west of Columbus and 25 miles northeast of Dayton. The town
is located in Clark County in southwestern Ohio and is positioned
on the Mad River, Buck Creek and Beaver Creek. In the past decade,
approximately 400 million dollars has been invested in downown
Springfield. Presently, 4.8 million dollars has been raised for a
new nonprofit “SpringForward”. The focus of this initiative is
“targeting investments on existing properties to revitalize the
city’s urban center.” The city has redeveloped several old factory
sites and continues to commit to the revitalization of the city.
Over the past several years, numerous projects were completed
including National Road Commons Park, Springfield Regional Medical
Center (largest employer with approximately 2,600 employees) and
the renovation of the historic Bushnell Building.
Springfield is proud to be the home of Wittenburg University, a
four-year private liberal arts university founded in 1845, and
recognized as one of the most highly rated liberal arts
universities in the nation - the setting is urban and encompasses
114 acres. The university serves almost 2,000 undergraduates.
DEMOGRAPHICS
2010 POPULATION
2016 POPULATION
3-MILES 5-MILES 7-MILES
POPULATION
42,990
42,785
84,123
83,838
100,913
100,366
2010 HOUSEHOLDS
2016 HOSUEHOLDS
HOUSEHOLDS
16,770
46,799
34,047
34,238
40,696
40,870
2016 MEDIAN HOUSEHOLD INCOME
INCOME
$36,422
2016 AVERAGEHOUSEHOLD INCOME
2016 PER CAPITAL INCOME
$38,583 $41,155
$49,884 $51,661 $54,839
$20,293 $21,524 $22,752
Source: ESRI
