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Offering Memorandum
Hardee's
710 Sagamore Parkway North | Lafayette, IN 47904 20 Year Sale-Leaseback | Absolute NNN | Healthy Rent Increases | 2018 Construction | Home of Purdue University
Subject Property
Confidentiality and Restricted Use AgreementThis Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for
your consideration of the opportunity to acquire the commercial property described herein (the “Property”).
This COM may be used only as stated herein and shall not be used for any other purpose, or in any other
manner, without prior written authorization and consent of SJC.
This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This
COM contains descriptive materials, financial information and other data compiled by SJC for the convenience
of parties who may be interested in the Property. Such information is not all inclusive and is not represented
to include all information that may be material to an evaluation of the acquisition opportunity presented.
SJC has not independently verified any of the information contained herein and makes no representations
or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions
of documentation and/or financial information contained herein are qualified in their entirety by reference to
the actual documents and/or financial statements, which upon request may be made available. An interested
party must conduct its own independent investigation and verification of any information the party deems
material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.
The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the
right to negotiate with any number of interested parties at any time. The Property is offered and sold by its
owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any
customary warranties of title.
BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information
you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any
other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and
claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request
by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the
Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals,
you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees,
representatives, agents and principals, from and with respect to any and all claims and liabilities arising from
or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you
will not provide this COM or any of the Information to any other party unless you first obtain such party’s
acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being
applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy
for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to,
injunctive relief and specific performance, in connection with such a violation and shall not be required to post
a bond when obtaining such relief.
Presented by
Stan Johnson CompanyOne Market Street | Spear Tower 36th Floor San Francisco, CA 94105
stanjohnsonco.com
Stan Johnson Company205 SE Spokane StreetSuite 300 Portland, OR 97202P: +1 503.468.7503
Matthew J. LipsonAssociate Director
Milo SpectorAssociate Director
Chris LomutoAssociate Director
Colby MikulichAssocaite
In Association with: Tom Fritz IN License #RB14048630
Section One
Executive Summary
Aerial View • Lafayette, IN
Offering Price: $2,285,000Cap Rate: 5.25%
Property Summary
Offering Price $2,285,000
Cap Rate 5.25%
Address 710 Sagamore Parkway N | Lafayette, IN 47904
Building Size ±2,800 Square Feet
Land Area ±0.35 Acres (±15,246 Square Feet)
Ownership Interest Fee Simple (Land & Building)
Encumbrances None, Delivered Free & Clear
NOI $120,000
SUBJECT PROPERTY
STRONG GUARANTY • MidWest First Star Inc. is a seasoned Hardee’s franchisee operating 30+ Hardee's locations with 700+ employees in Ohio, Indiana and Kentucky.
ROBUST RETAIL CORRIDOR • The Location benefits from strong retail synergy, including The Home Depot, Target, multiple car dealerships, McDonald’s and many more national retail tenants.
IDEAL QSR DEMOGRAPHICS • Serving a large trade area, the Property has population counts of over 130,000 in a 5-mile radius with an average household income near $60,000.
HIGH TRAFFIC COUNTS • The Property enjoys impressive traffic counts with more than 28,000 vehicles per day traveling on Sagamore Parkway North and more than 19,000 vehicles per day on Union Street.
SUPERIOR VISIBILITY WITH PYLON • Prominently positioned on Sagamore arkway North (Highway 52), with a drive-thru and a pylon sign in front of the Property.
Investment HighlightsHOME TO PURDUE UNIVERSITY • The nationally known university is ranked from sports teams to academics to university life. With the nearest professional sports team in Indianapolis, Purdue University benefits from the support of the community for their nationally ranked basketball and football teams. Purdue University’s football stadium, Ross-Ade Stadium, has a seating capacity of 57,236, which is filled to capacity for all home games.
NEW 2018 BUILD-TO-SUIT CONSTRUCTION • Brand new construction is expected to be complete by May 2018. The restaurant represents CKE Restaurant Holdings, Inc.'s (“CKE”) new Heritage Design.
20 YEAR SALE-LEASEBACK WITH 7.50% INCREASES EVERY 5 YEARS • Lease features a primary term of twenty (20) years, accompanied by four (4), five (5) year renewal options.
ABSOLUTE NNN LEASE • Absolutely No Landlord Responsibilities.
Hardee's • Lafayette, IN 4
Section Two
Property Overview
Subject Property
Lease Abstract
Rent Schedule
Representative Image
Years Annual Rent Annual PSF Monthly Rent
Monthly PSF
Rental Increases
1-5 $120,000 $42.86 $10,000 $3.57 7.50%
6-10 $129,000 $46.07 $10,750 $3.84 7.50%
11-15 $138,675 $49.53 $11,556 $4.13 7.50%
16-20 $149,076 $53.24 $12,423 $4.44 7.50%
Tenant Hardee's
Credit Midwest First Star - 30 Unit Operator
Location 710 Sagamore Pkwy N | Lafayette, IN 47904
Market/Demos 5-mile Population - 134,829
Ownership Type Fee Simple Land and Building
Year Built 2018
Acres ±0.35
Lease Term 20 years
Lease Commencement Commences at Close of Escrow
Lease Expiration 20 Years from the Close of Escrow
Building Size (SF) ±2,800 Square Feet
Annual Rent $120,000
Rent Increases 7.50% Increases Every 5 Years
Expenses Absolute NNN
Options Four (4), 5-year options
Right of First Refusal No
APN 79-07-22-329-014.000-004
Zoning Commercial
Subject Property
Subject Property
Hardee's • Lafayette, IN 6
Subject Property Photos
Hardee's • Lafayette, IN 7
Aerial Photos
Hardee's • Lafayette, IN 8
Hardee’s is an American fast-food restaurant chain which predominantly
operates in the Midwestern and Southeastern United States. It was founded
in 1960 by Wilber Hardee in Greenville, North Carolina, and is owned today
by CKE Restaurants, Inc. CKE Restaurants, Inc. owns, operates and franchises
the Carl’s Jr., Hardee’s, Green Burrito® and Red Burrito® concepts. Carl’s Jr.
and Hardee’s operate as one brand under two names, acknowledging the
rich regional heritage of both banners. Recently, CKE opened their first
restaurants in New York, New Jersey and had international openings in Japan,
Australia, Canada, Colombia and Guatemala. CKE Restaurants, Inc. now has
a total of 3,682 franchised or company-operated restaurants in 44 states and
38 foreign countries and U.S. territories. The Carl’s Jr./Hardee’s system is now
93 percent franchised, with international restaurants representing 19 percent
of the system.
Midwest First Star Inc. is a proud franchisee operating a total of 30
restaurants in Ohio, Indiana, and Kentucky. They are a company that excels
at two things: restaurant management and growth. They are currently
managing two brands and 30 units with two more under development in
Indiana; a number they have reached from their beginning 12 years ago with
just two Nathan’s Famous locations. Today, they employ more than 700+
people. Despite their rapid growth and expansion, MidWest First Star prides
itself on maintaining a close-knit family culture in which every individual is
treated with mutual support and respect.
Tenant Overview
CKE Restaurants Holdings
Number of Locations 3,682
Number of Employees 20,200
Owner Roark Capital Group*
Headquarters Franklin, TN
Website www.hardees.com
* In 2013 Roark Capital Group purchased CKE
Restaurants from Apollo Group for $1.65 Billion.
Subject Property
Hardee's • Lafayette, IN 9
Section Three
Market Overview
Aerial - Lafayette, IN
Location Overview Lafayette is a city in and the county seat of Tippecanoe County in
northwest Indiana, 63 miles northwest of Indianapolis and 105 miles
southeast of Chicago. Nearby West Lafayette is home to Purdue
University, a campus that contributes significantly to both communities.
According to estimates, the population of Lafayette in 2015 was 74,101,
representing roughly a 10.4% increase since 2010 and a 19% increase
since 2000. West Lafayette's population in 2015 was estimated at 42,419
on a year-round basis (excluding Purdue's student body).
Much of the economy in the city of Lafayette and the surrounding area
is centered around the academic and industrial activities of Purdue, a
campus home to an annual student enrollment that exceeds 40,000
and academic staff of over 3,000. Not surprisingly, the university and
its associated businesses employ the largest portion of the Lafayette
workforce. However, private industry and commerce also exist, including
major operations for companies like Alcoa, Caterpillar and Cargill.
In 2015, the Lafayette area received $664 million in capital investment.
More than a dozen new high-tech firms opened, planning began on
major downtown residential, financial and retail development and a
new 164-acre industrial park was unveiled. Moreover, a 6,300-acre tax-
increment financing district known as the Hoosier Heartland Economic
Development Area was created.
Purdue University is responsible for employing the largest portion of
the Lafayette workforce but there is also a large presence of private
industry and independent commerce. Other employers include Wabash
National (3,100 employees), the world’s largest manufacturer of semi-
truck trailers, Greater Lafayette Health Services (2,600 employees), and
Caterpillar Inc. (1,600 employees).
Downtown Lafayette, IN
Hardee's • Lafayette, IN 11
Purdue University • Lafayette, IN
"Purdue graduate engineering No. 7 overall in newest U.S. News rankings; science, agricultural and biological engineering programs at No. 1" - U.S. News & World Report
Location Overview cont'd
WEST LAFAYETTE, Ind. — Purdue’s analytical chemistry, and agricultural and biological engineering programs have been ranked No. 1 in the U.S. News &
World Report’s graduate school rankings, released Tuesday (March 20).
In engineering, Purdue is ranked as the seventh-best graduate school among all public and private institutions. Only the University of California, Berkeley
and the University of Michigan ranked higher among public institutions. Purdue Engineering has seven graduate programs ranked in the top 10 of their
respective areas.
The agricultural and biological program topped the rankings for Purdue Engineering. Among other rankings, aeronautics and astronautics, civil and
industrial engineering programs were sixth; mechanical eighth; and computer and electrical engineering programs ninth.
In the College of Science, analytical chemistry topped
the list at No. 1. Computer science is listed at No. 20,
with its programming language program listed at 14th
and systems program at 15th. Chemistry is ranked
No. 24, with mathematics at 26th, statistics at 27th,
physics at 37th, earth sciences at 41st and biological
sciences at 62nd.
Purdue’s College of Education graduate program
ranks 43rd, tied with Rutgers and Pennsylvania State
universities. In nursing, the nursing master’s program
is 66th and doctoral program is 79th.
The Krannert School of Management is ranked sixth
in production/operations management and 11th in
supply chain/logistics. The Weekend MBA is 47th
among part-time programs and the full-time MBA
program is 53rd.
Hardee's • Lafayette, IN 12
Ray W. Herrick Laboratories • Purdue University
N
0 < 149 mi
150 < 249 mi
250 < 349 mi
350+ mi
Area Map
Lafayette
ST LOUIS, MO± 276 miles
CHICAGO, IL± 122 miles
COLUMBUS, OH± 184 miles
MILWAUKEE, WI± 219 miles
DETROIT, MI± 276 miles
PITTSBURGH, PA
± 420 miles
CLEVELAND, OH± 318 miles
LOUISVILLE, KY± 176 miles
Dayton, OH± 177 miles
CINCINNATI, OH± 175 miles
Fort Wayne, IN± 114 miles
Lexington, KY± 251 miles
Evansville, IN± 198 miles
Toledo, OH± 216 miles
Lima, OH± 175 miles
GRAND RAPIDS,
MI± 232 miles
Parkersburg, WV
± 344 miles
Huntington, WV
± 324 miles
Rockford, IL± 212 miles
Ann Arbor, MI± 255 miles
Marion, IL± 282 miles
Bowling Green, KY
± 298 miles
Davenport, IA± 265 miles
Youngstown, OH
± 371 Miles
Erie, PA± 419 MilesElkhart, IN
± 121 miles
Bloomington, IN
± 112 miles
Terre Haute, IN± 98 miles
INDIANAPOLIS, IN± 63 miles
Decatur, IL± 144 milesSPRINGFIELD, IL
± 182 miles
Bloomington, IL
± 144 miles
Peoria, IL± 198 miles
Champaign, IL± 131 miles
South Bend, IN
± 107 miles
Hardee's • Lafayette, IN 13
TIPPECANOE MALL
LAFAYETTE MARKET PLACE
SAGAMORE AT 26 SHOPPING CENTER
LAFAYETTE PAVILIONS
Purdue UniversityAirport LAF
LAFAYETTE SQUARE
McDonalds
Purdue University± 40,000 Students
Aerial Map
Sagamore Parkway (± 25,730 VPD)
N
SAGAMORE AT 26 SHOPPING CENTER
Vinton Elementary School
± 454 Students
Murdock Elementary
± 901 Students
Jefferson High School
± 1,935 Students
LAFAYETTE MARKET PLACE
LAFAYETTE ORTHOPEDIC
CLINIC
Lafayette Regional Rehabilitation Hospital
40-beds
LAFAYETTE PAVILIONS
Union Street (± 19,150 VPD)
Sag
amo
re Parkw
ay (± 28,4
37 VP
D)
Interstate 65 (± 51,869 VPD
)
Creasy Lane (± 25
,210 V
PD
)
South Street (± 41,554 VPD)
N
Lafayette
West Lafayette
DaytonShadeland
West Point
Battle Ground
LAFAYETTE
1 mile
3 miles
5 miles
Demographics710 Sagamore Pkwy N | Lafayette, IN 47904
0 - 1 mi. 0 - 3 mi. 0 - 5 mi.
2017 Population 6,185 79,541 134,829
2022 Population 6,424 84,030 142,253
2010-2017 Annual Rate 0.53% 0.97% 0.97%
2017-2022 Annual Rate 0.76% 1.10% 1.08%
2017 Total Households 2,854 33,801 51,056
2022 Total Households 2,959 35,659 53,977
2010-2017 Annual Rate 0.47% 0.90% 0.96%
2017-2022 Annual Rate 0.73% 1.08% 1.12%
2017 Average Household Income $47,562 $51,431 $59,877
2017 Median Household Income $37,047 $36,503 $41,706
Hardee's • Lafayette, IN 16
going beyond
The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.
Presented by
Stan Johnson CompanyOne Market Street | Spear Tower 36th Floor San Francisco, CA 94105 stanjohnsonco.com
Stan Johnson Company205 SE Spokane StreetSuite 300 Portland, OR 97202P: +1 503.468.7503
Matthew J. LipsonAssociate Director
Milo SpectorAssociate Director
Chris LomutoAssociate Director
Colby MikulichAssociate
In Association with: Tom Fritz IN License #RB14048630
