POPEYES - COLUMBUS, OH
JAMES CAPITAL ADVISORS, INC.
JAMES CAPITAL ADVISORS
MARKETING PACKAGE
3705 S. High St Columbus, OH 43207
CONTENTS
PAGE
Investment Summary
03
Retail Aerial
04
Lease Summary
05
Investment Highlights
07
Rent Schedule
09
Retail Aerial
10
Site Plan
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About the Brand
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Location Overview
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CONTACT INFORMATION
joel cukier Senior Associate (424) 325-2618
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POPEYES - COLUMBUS, OH
INVESTMENT SUMMARY Tenant Street Address City State Zip GLA Lot Size Year Built
Popeyes 3705 S. High St Columbus OH 43207 2,630 SF
$1.6M 5.65% 5.65% $95,000 $95K $1,680,000 PURCHASE PRICE
CAP RATE
NET OPERATING INCOME
1.26 AC
Price / SF
$638.78
2017
Rent / SF
$36.12
Long-Term Absolute Net (NNN) Lease In 2017 Popeyes signed a long-term 20-Year Absolute NNN lease with two (2), five-year options. This is a true Absolute Net (NNN) Lease with the landlord having zero responsibilities. Brand New Prototype Construction The building was specifically constructed for Popeyes in 2017 and features their latest prototype, which includes seating for 60 people. Attractive Rental Increases to Hedge Against Inflation The lease features 10% rental increases every 5 years, including options periods, giving the landlord the benefit of compounding rent growth throughout the base term and option periods. Personal Guarantee from Experienced Popeye’s Franchisee AR Group of Restaurants owns and operates 50+ franchised restaurants of multiple renowned brands in 7 States. The network currently operates Popeyes Louisiana Kitchen, Arby’s & Pie Five Pizza Restaurants.
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3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
RETAIL AERIAL
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3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
LEASE SUMMARY Lease Type
Real Estate Taxes
Tenant Responsible
Insurance
Tenant Responsible
20 Years
Roof & Structure
Tenant Responsible
6/1/2017
Lease Guarantor
Franchisee
Lease Expiration
5/31/2037
Company Name
AR Group of Restaurants
Term Remaining
16.5+ Years
Type of Ownership Original Lease Term Commencement Date
Increases Options
Absolute Net (NNN) Fee Simple
10% Every 5 Years
Ownership Number of Locations
Private 50+
Two (2), 5-Year
Pad-site to Walmart and Kroger Anchored Center The subject property is located inside a 400K SF shopping center anchored by Walmart and Kroger. The center features out pads with national retailers including Wendy’s, Taco Bell, Pizza Hut, Arby’s and White Castle. Explosive Population Growth The five mile radius to the site has seen year over year growth and is expected to grow an additional 6.54% by 2024. Home to The Ohio State University Columbus is home to The Ohio State University, one of the largest college campuses in the United States, with approximately 65,000 students and over 6,200 faculty. It also has one of the most competitive intercollegiate programs in the nation. Very High Traffic Counts The subject property is located on the US-23 with daily traffic counts exceeding 38,446 vehicles per day.
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3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
Property Photo
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3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
Investment Highlights Strong Infill Location with Dense Demographics There are over 46,000 people within a three mile radius and over 180,000 people within a five mile radius of the subject property. Thriving Retail Corridor Major national retailers in the immediate trade area include Lowe’s, Walmart, Kroger, ALDI, CVS, McDonald’s, Wendy’s, AutoZone, Planet Fitness, T-Mobile and Dollar Tree. The Largest City in Ohio Columbus is the capital of Ohio and the largest city in the state with a population of over 860,000. It is also the 14th largest city in the United States. Proximity to Major Traffic Artery The subject property benefits from its proximity to a point of ingress and egress to Interstate-270, which has daily traffic counts exceeding 92,412 vehicles per day.
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3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
Property Photo
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3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
RENT SCHEDULE
09
PERIOD
TERM
ANNUAL RENT
MONTHLY RENT
INCREASE
CAP RATE
6/1/2017 - 5/31/2022
Base Term
$95,000.00
$7,916.67
Current
5.65%
6/1/2022 - 5/31/2027
Base Term
$104,500.00
$8,708.33
10%
6.22%
6/1/2027 - 5/31/2032
Base Term
$114,950.00
$9,579.17
10%
6.84%
6/1/2032 - 5/31/2037
Base Term
$126,445.00
$10,537.08
10%
7.52%
6/1/2037 - 5/31/2042
1st Option
$139,090.50
$11,590.88
10%
8.27%
6/1/2042 - 5/31/2047
2nd Option
$152,998.45
$12,749.87
10%
9.10%
3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
RETAIL AERIAL
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3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
RETAIL AERIAL
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3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
SITE PLAN
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3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
Property Photo
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3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
ABOUT THE BRAND Popeyes
Popeyes is an American multinational chain of fried chicken fast food restaurants founded in 1972 in New Orleans, Louisiana and headquartered in Miami, Florida. Popeyes culinary heritage is built upon the rich Cajun and creole flavor profiles that are unmistakably Louisiana. They continuously draw upon and celebrate this heritage to inspire new, authentic menu creations the world craves. Popeyes distinguishes itself with a unique New Orleans style menu featuring spicy chicken, chicken tenders, fried shrimp and other regional items. This unique and flavorful food has allowed Popeyes to become one of the world’s largest chicken quick service restaurants, with over 2,700 restaurants in the U.S. and around the world. Popeyes Louisiana Kitchen, Inc., also gives its time, resources and money to national and international charities that are aligned with its business strategies and the mission of their corporate foundation. Popeyes develops meaningful relationships with each organization and involve the company in community service, board memberships and committee work, assuring that Popeyes’ time and resources have a return of goodwill or increased sales.
Popeyes Wins the “Chicken Sandwich Wars” Popeyes recently rolled out their clever chicken sandwich marketing campaign with the help of Apex Marketing Group. Apex Marketing Group estimated that Popeyes reaped $65 million in equivalent media value as a result of the Chicken Sandwich Wars. The $65 million figure is nearly triple the $23 million in media value that the sandwich generated in its first few days on sale, according to an earlier Apex estimate. AR Group of Restaurants AR Group of Restaurants owns and operates 50+ franchised restaurants of multiple renowned brands in 7 States. The network currently operates Popeyes Louisiana Kitchen, Arby’s & Pie Five Pizza Restaurants. AR Group of Restaurants New Business Division primarily focuses on the acquisitions & mergers of existing franchised restaurants alongside with the accelerated new development of the brands held.
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3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
LOCATION OVERVIEW
Columbus, Ohio Columbus is the state capital and the most populous city in the U.S. state of Ohio. With a population of 892,533, it is the 14th-most populous city in the United States and one of the fastest growing, large cities in the nation. This makes Columbus the second-most populous city in the Midwest (after Chicago, Illinois). It is the core city of the Columbus, OH Metropolitan Statistical Area, which encompasses ten counties. The city has a diverse economy based on education, government, insurance, banking, defense, aviation, food, clothes, logistics, steel, energy, medical research, health care, hospitality, retail, and technology. Home to Fortune 500 Companies Ohio is ranked number five in the nation for headquarters of Fortune 500 companies, more than 20 Ohio companies have made Forbes 2018 list of the best large employers in the nation. Columbus was also reecently included on the New York Times’ list of “52 Places to Visit in 2019”.
Columbus, OH
Columbus MSA
Greater Columbus is one of the largest metropolitan areas in the Midwestern United States. It is part of the Great Lakes Megalopolis, containing an estimated 59 million people.
Diverse Economy and Population
The Columbus region is home to a population of 2.1 million and has a potential workforce of 1 million. The region boasts one of the youngest and most-educated populations: the median age is 35.8 and more than 36 percent of residents hold a bachelor’s degree. The region also has one of the highest concentrations of college students in the nation, and one of the highest populations of millennials.
Nationwide Children’s Hospital
Nationwide Children’s Hospital is a primary pediatric hospital in Columbus, Ohio, with more than 1,379 medical staff members and over 11,909 total employees. In recent years, the hospital has been ranked as one of America’s Best Children’s Hospitals by US News & World Report.
Largest Private Research & Development Foundation
Columbus is home to the Battelle Memorial Institute, the world’s largest private research and development foundation.
Nationwide Childrens Hospital 15
3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
LOCATION OVERVIEW
1. Ohio State University 190 N. Oval Mall, Columbus, OH 43210 8 MILES FROM THE SUBJECT PROPERTY
2. Ohio Stadium 411 Woody Hayes Dr., Columbus, OH 43210 9 MILES FROM THE SUBJECT PROPERTY
3. Columbus Zoo and Aquarium 4850 W. Powell Rd, Powell, OH 43065 25 MILES FROM THE SUBJECT PROPERTY
4. Columbus Museum of Art 480 E. Broad St, Columbus, OH 43215 6 MILES FROM THE SUBJECT PROPERTY
5. Franklin Park Botanical Gardens 1777 E. Broad St., Columbus, OH 43203 7 MILES FROM THE SUBJECT PROPERTY
6. Brewery District 588 S. Third St., Columbus, OH 43215 4 MILES FROM THE SUBJECT PROPERTY
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3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
LOCATION OVERVIEW
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Ohio State University
Ohio Stadium
Columbus Zoo and Aquarium
OSU is the third-largest university campus in the United States with over 66,000 enrolled students.
The Ohio Stadium is home to the Ohio State Buckeyes. It can fit over 100,000 visitors at any one time.
This zoo was rated the number one zoo in the United States by the USA Travel Guide.
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Columbus Museum of Art
Franklin Park Botanical Gardens
Brewery District
Formed in 1878 as the Columbus Gallery of Fine Arts, it was the first art museum to register its charter with the state of Ohio.
This very popular botanical garden built in 1895 features more than 400 plant species.
An industrial hub of the city’s historic beer scene is full of lively entertainment and dining options.
3705 S. HIGH ST, COLUMBUS, OH 43207
POPEYES - COLUMBUS, OH
DEMOGRAPHICS
POPULATION
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1-Mile
3-Mile
5-Mile
2024 Projection
7,100
49,513
195,265
2019 Estimate
6,737
46,672
183,284
2010 Census
6,266
40,833
157,709
Growth ‘19 - ‘24
5.39%
6.09%
6.54%
Growth ‘10 - ‘19
7.52%
14.30%
16.22%
HOUSEHOLDS
1-Mile
3-Mile
5-Mile
2024 Projection
2,819
18,361
78,410
2019 Estimate
2,682
17,292
73,544
2010 Census
2,538
15,315
63,330
Growth ‘19 - ‘24
5.11%
6.18%
6.62%
Growth ‘10 - ‘19
5.67%
12.91%
16.13%
Average Income
$47,908
$54,298
$62,015
Median Income
$41,949
$45,907
$47,738
3705 S. HIGH ST, COLUMBUS, OH 43207
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.
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FOR INQUIRIES
PLEASE CONTACT joel cukier
Brian Brockman
(424) 325-2618
(513) 898-1551
Senior Associate
joel@jamescapitaladvisors.com CA RE Lic. 02005095
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Broker of Record
brian@bangrealty.com OH RE Lic #: BRKP.2009000214 Bang Realty, Inc Cincinnati, OH CORP. Lic #: REC.2009002663