single tenant absolute nnn - images2.loopnet.comimages2.loopnet.com/d2/yDsUB-QK5... · provide a necessarily accurate summary of the Property or any of the documents related thereto,

single tenant absolute nnnCONFIDENTIAL OFFERING MEMORANDUM

OLATHE, KS (KANSAS CITY MSA)

This Investment Offering Memorandum has been prepared by Greenstone Partners for use by a limited number of parties, and do not purport to provide a necessarily accurate summary of the Property or any of the documents related thereto, nor do they purport to be all-inclusive or to contain all of the information which prospective investors may need or desire. All projections have been developed by Seller, Greenstone Partners and designated sources, and are based upon assumptions relating to the general economy, competition and other factors beyond the control of Seller, and therefore are subject to variation. No representation is made by Seller or Greenstone Partners as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be correct, Seller and its officers, directors and employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Greenstone Partners, Seller and its officers, directors and employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or omission from, the Investment Offering Memorandum, Argus model, or any other written or oral communication transmitted or made available to the recipient. The Investment Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the Property or Seller since the date or preparation of the Investment Offering Memorandum. Analysis and verification of the information contained in the Investment Offering Memorandum is solely the responsibility of the prospective purchaser.

Additional information and an opportunity to inspect the Property will be made available upon request by interested and qualified prospective investors.

Seller and Greenstone Partners each expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers regarding the Property and/or terminate discussions with any entity at any time with or without notice. Seller shall have no legal commitment or obligation to any entity reviewing the Investment Offering Memorandum or making an offer to purchase the Property unless and until such offer is approved by Seller, a written agreement for the purchase of the Property has been fully executed, delivered and approved by Seller and its legal counsel and any conditions to Seller’s obligations thereunder have been satisfied or waived.

This Investment Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting the Investment Offering Memorandum and Argus model, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not to disclose the Investment Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller or Greenstone Partners, and that you will not use the Investment Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Greenstone Partners. If you do not have any interest in the Property at this time, please return the Investment Offering Memorandum forthwith.

confidentiality agreement

KANSAS BROKER OF RECORDRANDI LEFKO | MO LICENSE #: 1999129874 | KS LICENSCE #: 00032249

EXCLUSIVE INVESTMENT ADVISORS

JASON ST.JOHNManaging PartnerO +1 312 234 0333D +1 312 234 0371C +1 312 523 [email protected]

BRADFORD DESSYAssociate, Investment SalesO +1 312 234 0333D +1 312 414 1254C +1 310 936 [email protected]

JONNY LEFKOAssociate, Investment SalesO +1 312 234 0333D +1 312 414 1252C +1 913 972 [email protected]

JON HEGWOODVice President, Investment SalesO +1 312 234 0333D +1 312 614 1499C +1 414 550 [email protected]

PETER WEITZManaging PartnerO +1 312 234 0333D +1 312 234 0877C +1 773 263 [email protected]

MICHAEL GENDELLAssociate, Investment SalesO +1 312 234 0333D +1 312 448 2132C +1 847 849 [email protected]

LEO SOLARTE, MSREManaging PartnerO +1 312 234 0333D +1 312 234 0387C +1 773 908 [email protected]

GREENSTONE PARTNERS747 North LaSalle StreetSuite 450Chicago, IL 60654+1 312 234 0333www.Greenstone-Partners.com

THE OFFERING THE NUMBERSTHE LOCATIONTHE OFFERING

offering procedure

Greenstone Partners is the exclusive listing agent of the Property. The prospective Purchaser will be selected by the Seller by its sole discretion based on a variety of factors including, but not limited to:

PROPERTY INQUIRIES & TOURSAll Property inquiries should be directed to Greenstone Partners. All property tours are by appointment only and are to be scheduled through Greenstone Partners.

PROSPECTIVE PURCHASERSOwnership will be selling the property in an "As Is, Where Is" condition. Offers will be responded to on a "First Come, First Served" basis. No formal call for offers date is currently contemplated; however, this is subject to change based on ownership’s discretion.

Offering Price

Absence of contingencies

Due Diligence and closing time

Financial strength and track record

Proof of funds for a financed or all-cash transaction

Earnest money deposit(s) and timing to become non-refundable

Confirmation of full underwriting based on materials provided in the Due Diligence Vault












investment summary

Greenstone Partners as the Exclusive Investment Advisors are pleased to present the opportunity to acquire the 100% fee-simple interest in Absolute NNN Steak 'N Shake (the “Property”/”Investment”), located at 12209 S Strang Line Rd, Olathe, Kansas, a suburb of Kansas City, MO.

The 3,880 rentable square foot single tenant retail Investment is 100% leased to Steak ‘N Shake. Steak ‘N Shake is drawn to the Property due to its strong retail locale along Strang Line Rd, as well as its growing demographics.

OFFERING TERMS

OFFERING PRICE $1,300,000

CAP RATE 7.54%

CASH-ON-CASH 9.56%

OWNERSHIP OFFERED Fee-Simple, Free & Clear

GLA-SF 3,880

# OF TENANTS 1

MARKET Kansas City Metro

ADDRESS 12209 S Strange Line Rd, Olathe, KS 66062

4OFFERING MEMORANDUMGREENSTONE PARTNERS

SINGLE-TENANT ABSOLUTE NNNOLATHE, KS (KANSAS CITY MSA)


STABLE INVESTMENT Single-tenant, net-leased Steak ‘N Shake leased into 2028, possessing a strong operator with a well established, in place patron base.

SOLID TRAFFIC Daily traffic counts exceeding 22,000 vehicles per day in a strong retail corridor. The property also has visibility on Highway 35, possessing daily traffic counts exceeding 99,000 vehicles per day.

STRONG DEMOS The average household incomes within 1, 3, & 5-miles of the Property all exceed $70,000. Population growth has exceeded 7% within a 3-mile radius of the Property since 2010.

NATIONALLY TENANTED RETAIL CORRIDOR The Property neighbors Zaxby’s, AMC Dine In Studios, Target, McDonalds and it is just south of Bass Prop Shops, Main Event Entertainment and Starbucks.

MINIMAL LANDLORD RESPONSIBILITY With an absolute, triple-net lease in-place, the Investment provides a truly passive investment opportunity with ZERO landlord responsibilities.

investment highlights

STABLEINVESTMENT

SOLIDTRAFFIC

STRONGDEMOS

NATIONALRETAIL

CORRIDORS

MINIMALLANDLORD

RESPONSIBILITY




tenant overview

Steak ‘n Shake is an American casual restaurant chain located primarily in the Midwestern and Southern United States with locations also in the Mid-Atlantic and Western United States, Europe, and the Middle East. Steak ‘n Shake Operations, Inc. is headquartered in Indianapolis, Indiana. There are 544 locations, of which 417 are company-operated and 127 are franchised Typical restaurant locations have sit-down, drive-thru and front-window service, resulting in a hybrid of fast-food to-go service and diner-style sit-down service. Many Steak ‘n Shake restaurants are open 24 hours a day, seven days per week. The menu features primarily hamburgers and hand-dipped milkshakes, though other entrees, side items, and drinks are also available. There is no steak on the menu.

The corporation’s slogan “Famous for Steakburgers” refers to its most prominent food item, the “Steakburger”, so called because it was originally made from a mixture that included T-bone, sirloin, and round steaks.

Steak ‘n Shake restaurants are located in Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Missouri, Nevada, New Jersey, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and West Virginia.

STEAK ‘N SHAKE

Industry - Fast Food

No. of Locations - 544

Company HQ - Indianapolis, IN

Parent Co. - Biglari Holdings

Type - Public

Ticker - BH (NYSE)

www.biglariholdings.com

www.steaknshake.com



THE OFFERING THE NUMBERSTHE LOCATIONTHE LOCATION

KANSAS CITY

Overland Park

OttawaOsage City

Lawrence

Topeka

St. JosephCameron

Chillicothe

Warrensburg

Higginsville

Atchison

HOLTON

Lee’s Summit

59

75

29

7070

70

35

35

35

49

7559

69

50

24

36

36

335

435

KANSAS CITY METROMARKET OVERVIEW

Kansas City is the largest city in Missouri and the sixth largest city in the Midwest. Kansas City is the 37th largest city by population in the United States. Sitting on Mistsouri's western border, with downtown near the confluence of the Kansas and Missouri rivers, the modern city encompasses some 319.03 square miles making it the 23rd largest city by total area in the United States.

The federal government is the largest employer in the Kansas City metro area. Most of the city lies within Jackson County, but parts of it fall into Clay, Cass and Platte County. Major suburbs on the Missouri side include Independence, Lee’s Summit and Blue Springs. The major cities on the Kansas side include Overland Park, Prairie Village, and Olathe. Over 146 federal agencies maintain a presence there.




demographic profile

Population Summary 1 Mile 3 Miles 5 Miles2022 Projection 11,351 86,860 231,4612017 Estimate 10,800 82,505 219,9122010 Census 10,149 76,775 204,952Growth 2017 - 2022 5.10% 5.28% 5.25%Growth 2010 - 2017 6.41% 7.46% 7.30%2017 Population by Hispanic Origin 1,742 8,613 19,2502017 Population 10,800 82,505 219,912White 8,697 69,333 187,602

Black 1,094 5,898 13,230

Am. Indian & Alaskan 80 481 997Asian 515 4,319 12,149Hawaiian & Pacific Island 8 44 98Other 407 2,429 5,837U.S. Armed Forces 11 44 91Households2022 Projection 4,473 33,347 87,971

2017 Estimate 4,249 31,629 83,514

2010 Census 3,948 29,190 77,513

Growth 2017 - 2022 5.27% 5.43% 5.34%

Growth 2010 - 2017 7.62% 8.36% 7.74%

Owner Occupied 2,091 19,218 56,265

Renter Occupied 2,157 12,411 27,249

2017 Households by HH Income 4,250 31,628 83,514Income: <$25,000 577 4,135 8,608Income: $25,000 - $50,000 1,168 6,587 14,392Income: $50,000 - $75,000 877 5,150 13,659

Income: $75,000 - $100,000 547 4,430 12,041Income: $100,000 - $125,000 623 4,267 12,222Income: $125,000 - $150,000 154 2,547 7,885Income: $150,000 - $200,000 246 2,752 7,989Income: $200,000+ 58 1,760 6,7182017 Avg Household Income $71,991 $90,886 $101,9682017 Med Household Income $58,735 $74,705 $85,584




financial overview

SUMMARY

Offering Price $1,300,000

Down Payment 30% $390,000

Rentable SF +3,800

Cap Rate 7.54%

Built 1999

Type of Ownership Fee-Simple, Free + Clear

LEASE SUMMARY

Lease Type Absolute, Triple Net

Lease Term 10-Years

Lease Commencement At CLose of Escrow

Operated the Location Since 2008 (20 Years)

Real Estate Taxes Tenant Responsible

Insurance Tenant Responsible

CAM Tenant Responsible

Roof, Structure, Parking Lot Tenant Responsible

INCOME

Base Rent $98,000

Total Reimbursements NNN

Gross Income $98,000

Net Operating Income $98,000

Debt Service $62,257

Net Cashflow after Debt Service 9.16% $35,743

Debt Coverage Ratio 1.57

Principal Reduction $19,452

Total Return 14.15% $55,195

FINANCING

Loan Type Proposed New

Loan Amount $910,000

Loan to Value 70%

Interest Rate 4.75%

Amortization (Years) 25



THE OFFERING THE NUMBERSTHE LOCATION THENUMBERS

single tenant absolute nnnCONFIDENTIAL OFFERING MEMORANDUM











Documents

single tenant absolute nnn - images2.loopnet.comimages2.loopnet.com/d2/yDsUB-QK5... · provide a necessarily accurate summary of the Property or any of the documents related thereto,