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Pizza Hut - LaGrange, IN

Page 1

Representative Photo PIZZA HUT / WING STREET - LAGRANGE, IN

JAMES CAPITAL ADVISORS, INC.


JAMES CAPITAL ADVISORS

MARKETING PACKAGE

30 W. 150 N LaGrange, IN 46761

CONTENTS

PAGE

Investment Summary

03

Lease Summary

04

Retail Aerial

05

Site Plan

06

Rent Schedule

07

About the Brand

08

Location Overview

09

CONTACT INFORMATION

tony anderson Director (424) 325-2615

vince saucer Senior Associate (424) 325-2617

02


PIZZA HUT / WING STREET - LAGRANGE, IN

INVESTMENT SUMMARY Tenant Street Address City

Pizza Hut 30 W. 150 N LaGrange

State

IN

Zip

46761

GLA

3,654 SF

Lot Size Year Built

$1.4M 6.50% 6.50% $94,644 $94K $1,456,068 PURCHASE PRICE

CAP RATE

NET OPERATING INCOME

5.78 AC

Price / SF

$398.49

2004

Rent / SF

$25.90 Representative Photo

Updated Store Front This site has the updated Pizza Hut / Wing Street Concept (an average increase in store sales after a remodel is 6-8%). Site Accessibility This site features multiple access points off of the main artery in the town, allowing for ease of access to the property. Drive Thru This asset benefits from its drive thru window, which adds a meaningful level of convenience to the customer experience and drives sales. Established Location Pizza Hut Remodel Example Not Actual Site 03

Pizza Hut has operated in this location for 15+ years and is a staple in the community.

30 W. 150 N, LAGRANGE, IN 46761


PIZZA HUT / WING STREET - LAGRANGE, IN

LEASE SUMMARY Lease Type

Real Estate Taxes

Tenant Responsible

Insurance

Tenant Responsible

17 Years

Roof & Structure

Tenant Responsible

5/1/2005

Lease Guarantor

Franchisee

Lease Expiration

7/31/2026

Company Name

Peru Pizza Co, Inc.*

Term Remaining

6+ Years

Type of Ownership Original Lease Term Commencement Date

Increases Options

Absolute Net (NNN) Fee Simple

Flat Two (2), 5-Year

Ownership Years in Business Number of Locations

Private 60 18

*Parent Company is Daland Corporation, a 106 Unit Operator

Pizza Hut Remodel Example Not Actual Site

17-Year Absolute Net (NNN) Investment Pizza Hut operates on an Absolute Net (NNN) Lease with tenant fully responsible for maintenance, insurance and taxes providing the owner with zero landlord responsibilities. Global Brand Pizza Hut Has more than 16,000 restaurants in 100+ countries and has become the largest pizza company globally. With $5.5B in annual revenue, they are the 10th largest company in the U.S. Franchisee Guarantee The lease is guaranteed by Peru Pizza Co Inc, an 18 Unit Entity, c/o Daland Corporation, a 106 unit operator.

Representative Photo 04

30 W. 150 N, LAGRANGE, IN 46761


PIZZA HUT / WING STREET - LAGRANGE, IN

RETAIL AERIAL

05

30 W. 150 N, LAGRANGE, IN 46761


PIZZA HUT / WING STREET - LAGRANGE, IN

SITE PLAN

06

30 W. 150 N, LAGRANGE, IN 46761


PIZZA HUT / WING STREET - LAGRANGE, IN

RENT SCHEDULE PERIOD

TERM

ANNUAL RENT

MONTHLY RENT

INCREASE

CAP RATE

05/01/2005 - 07/31/2026

Base Term

$94,644

$7,887

-

6.50%

08/01/2026 - 07/31/2031

1st Option

$94,644

$7,887

-

6.50%

08/01/2031 - 07/31/2036

2nd Option

$94,644

$7,887

-

6.50%

Representative Photo 07

30 W. 150 N, LAGRANGE, IN 46761


PIZZA HUT / WING STREET - LAGRANGE, IN

ABOUT THE BRAND

Pizza Hut was founded in 1958 by two brothers with one location in Wichita, KS. Now, 60 years later, Pizza Hut is the largest pizza company in the world with more than 16,000 restaurants in more than 100 countries. With more than $5.5 Billion in domestic sales, Pizza Hut is the 10th largest restaurant chain in the country by annual revenue in the Untied States. Pizza Hut’s parent company Yum! Brands recently pledged to invest $130m in technology and other areas to push Pizza Hut to the forefront of the pizza delivery market. Additionally, the brand is experiencing major changes for the positive, further driving their sales growth and dominant market share.

18k 18,000+

WOLRDWIDE LOCATIONS

50 34k 50

NUMBER OF STATES

34,000+ EMPLOYEES

Daland Corporation Formed in 1976 as Daland Partnership, the Daland Corporation became a successor to the partnership in 1981. Daland Corporation is a management company that operates 13 separate corporations that own Pizza Hut Restaurants. From offices in Wichita, they oversee and support the operations of 106 Pizza Hut restaurants, which are located in North Carolina, Georgia, Indiana, Ohio, Michigan, Kentucky, Virginia, Pennsylvania, Maryland, Wisconsin, New York and Florida. Daland Corporation is a privately held restaurant management company, and independent franchisee of Pizza Hut, Inc. and a member of the International Pizza Hut Franchise Holders Association. Daland Corporation employs 38 in the home office and 2,500 field restaurant staff and supervisory personnel. Although the primary emphasis has always been on the core Pizza Hut restaurants, the officers continually investigate other business opportunities so as to provide themselves and all Daland employees continual challenge and growth. In late 2007, the corporation sold 16 Panera Bread & Bakery Cafe’s in Florida that had been developed in Broward and Palm Beach counties.

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30 W. 150 N, LAGRANGE, IN 46761


PIZZA HUT / WING STREET - LAGRANGE, IN

LOCATION OVERVIEW LaGrange, IN

La Grange is located in the heart of North East Indiana. It is considered an outstanding place to live and work, while maintaining the “small town: atmosphere. The town location is easily accessible to many area’s such as Detroit, Chicago, Toledo, Fort Wayne, South Bend and Kalamazoo. The Town of LaGrange is known for supporting responsible and attractive developments while maintaining a business-friendly environment. Great location, easy accessibility via the Indiana Toll Road, and a supportive local government are among the many qualities that attract business to the Town of LaGrange. Annual Events LaGrange is known for their Corn School Street Fair that attracts people from the neighboring towns. They also hold the annually 4H Fair, where surrounding towns and locals display their animals for show and for sale as well as offering the great taste of food from the local and surrounding towns.

LaGrange County is located in Northeast Indiana, on the Michigan border and only 30 minutes from the Ohio border and is at the nexus of the major markets of Chicago, Indianapolis and Detroit. The I-80/90 Interstate traverses LaGrange County, and has an exit intersecting with Indiana State Road 9. Two major ports, the Port of Indiana- Burns Harbor and the Port of Toledo Seaport, are within a 2-hour drive on the I-80/90 Interstate Highway. Additionally, the Fort Wayne International Airport and South Bend Regional Airports are less than an hour’s drive-time away. LaGrange County companies enjoy access to over fifty percent of the nation’s consumer bases within 600 miles and is within a three day drive of over 2/3 of the country. Indiana has consistently been ranked by respected sources such as Forbes and the Tax Foundation as amongst the best states for lowest business costs and is considered the best state for business in the Midwest. Indiana has also received a list of “business friendly” recognition in a variety of respected publications.

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30 W. 150 N, LAGRANGE, IN 46761


PIZZA HUT / WING STREET - LAGRANGE, IN

DEMOGRAPHICS

POPULATION

1-Mile

3-Mile

5-Mile

2024 Projection

665

5,396

8,752

2019 Estimate

656

5,310

8,599

2010 Census

676

5,423

8,706

Growth ‘19 - ‘24

1.37%

1.62%

1.78%

Growth ‘10 - ‘19

-2.96%

-2.08%

-1.23%

HOUSEHOLDS

1-Mile

3-Mile

5-Mile

2024 Projection

199

1,873

2,924

2019 Estimate

197

1,844

2,876

2010 Census

203

1,888

2,933

Growth ‘19 - ‘24

1.02%

1.57%

1.67%

Growth ‘10 - ‘19

-2.96%

-2.33%

-1.94%

Average Income

$78,888

$62,904

$67,895

$56,111

$49,173

$52,210

Median Income

10

30 W. 150 N, LAGRANGE, IN 46761


JAMES CAPITAL ADVISORS, INC.

DISCLAIMER

The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. & Brian Brockman (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto. The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants. A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

11


FOR INQUIRIES

PLEASE CONTACT tony anderson

vince saucer

brian brockman

(424) 325-2615

(424) 325-2617

(513) 898-1551

Director

tony@jamescapitaladvisors.com CA RE Lic. 01936642

Senior Associate

vince@jamescapitaladvisors.com CA RE Lic. 01935636

Broker of Record

brian@bangrealty.com IN RE Lic #: RB14037939 Bang Realty Cincinnati, OH CORP. Lic #: RC51000665

Representative Photo 12


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