3765 Gateway Drive - GRAND FORKS, NORTH DAKOTA 58201
Investment Overv iew
• Burger King in Grand Forks, North Dakota | Less Than One Mile From University of North Dakota | More Than 14,900 Students
• Tenant Demonstrates Commitment | Completed “20/20” Renovation in 2013
• More than 17 Years Remaining on Absolute Net Lease | Zero Landlord Responsibilities
• Strong Inflation Hedge | 1.25 Percent Annual Rent Increases Over the Base Term and in Four, Five-Year Renewal Options
• Lease is Corporately Guaranteed by Meridian Restaurant Unlimited, Limited Company Plus a Full Term Personal Guaranty from Both Principals | 100-Unit Franchisee Restaurant Operator Across Multiple Concepts
• Situated on Gateway Drive/Route-2 | More Than 19,000 Vehicles Daily | Less Than Half-a-Mile from Interstate-29 | Direct Access to Canada and Fargo
• Approximately One Mile from Ralph Engelstad Area | Home to University of North Dakota Fighting Hawk Men’s Hockey Team | More Than 11,000 Seats
• Asset is Two Miles from the Alerus Center | 21,000-Seat Convention Center
Marcus & Millichap is pleased to present this 3,861-square foot Burger King in Grand Forks, North Dakota; which is less than one mile from the University of North Dakota. There are more than 17 years remaining on Burger King’s absolute net lease, where the tenant is responsible for all expenses associated with the asset. The lease features 1.25 percent annual rent increases over the base term and in the four, five-year renewal options.
The lease is corporately guaranteed by Meridian Restaurant Unlimited, Limited Company, as well as a strong, full-term, personal guaranty from its principals. Meridian Restaurant Unlimited, Limited Company is a 100-unit franchisee restaurant operator across multiple concepts. Among the first Burger Kings to complete the “20/20” renovation in 2013, the tenant has demonstrated commitment.
The subject property is situated on the Gateway Drive/Route-2 corridor, which sees more than 19,000 vehicles per day. This asset is approximately one mile from the famous Ralph Engelstad Hockey arena, home to the University of North Dakota Fighting Hawks Men’s Team. This $104-million; 11,000-seat arena has been called the “Taj Mahal of Hockey” by former NHL great Wayne Gretzky. Additionally, this asset benefits from its proximity to the 21,000-seat Alerus Conference Center, approximately two miles south. The convention center features a 26,000-square foot ballroom and 12 meeting rooms.
3765 Gateway Drive - GRAND FORKS, NORTH DAKOTA 58201
Tenant Overv iew - Burger K ing
Every day, more than 11-million guests visit Burger King restaurants around the world. And they do so because Burger King restaurants are known for serving high-quality, great-tasting, and affordable food. Founded in 1954, Burger King is the second largest fast food hamburger chain in the world. The original Home of the Whopper, Burger King’s commitment to premium ingredients, signature recipes, and family-friendly dining experiences is what has defined their brand for more than 50 successful years. In 2010, 3G Capital, a global multi-million-dollar investment firm focused on long term value creation, purchased Burger King Corporation, making it a privately-held company. In 2014, Burger King purchased Tim Hortons, and after the deal closed Burger King was renamed Restaurant Brands International, Incorporated. As of June 2017, 3G capital owns more than 96 percent of Restaurant Brands International.
Meridian Restaurants was founded in 2002 with 14 restaurants, and in 2016 they attained a long-term goal of 100 restaurants consisting of three top-tier brands across eight mid-western states: Burger King, El Pollo Loco, and Chili’s. The tenant; NDM Restaurants, Limited Company; is a wholly owned subsidiary of Meridian Restaurants Unlimited, Limited Company. The lease is corporately guaranteed by Meridian Restaurants Unlimited, Limited Company; as well as a full-term personal guaranty from the entity’s principals: David A. Harper and Stephan L Ralston.
Harper is a Senior Restaurant Operations Executive with more than 25 years of experience in multi-unit management, financial accountability, strategic planning, and project management in both franchisee and company operations. As of March 2016, Harper was an operating partner in more than 70 Burger Kings registering more than $68-Million in annual sales.
3765 Gateway Drive - GRAND FORKS, NORTH DAKOTA 58201
East Grand Forks is a city in Polk County, Minnesota, and the largest community within Polk. It is located in the Red River Valley region along the eastern bank of the Red River of the North, directly across from the larger city of Grand Forks, North Dakota. The cities of Grand Forks and East Grand Forks form the center of the Grand Forks, ND–MN Metropolitan Statistical Area, which is often called Greater Grand Forks.
Grand Forks, with a population of 52,838; is more than five times larger than East Grand Forks. The metropolitan area is also sometimes called “The Forks.” Several years ago local promoters attempted to “brand” the metropolitan area as “The Grand Cities.” This name has not found widespread use in the area, although several buildings and organizations now bear the “Grand Cities” title. Occasionally, the city of Grand Forks uses the nickname “The Sunflake City.”
Grand Forks was originally an important trading and meeting point for Native American tribes. Early fur trappers and French explorers referred to the area as Les Grandes Fourches. The first post office of the area was established on June 15, 1870. A steamboat captain named Alexander Griggs, who platted the city in 1875, is regarded as “The Father of Grand Forks.” Grand Forks was incorporated on February 22, 1881.
While in Grand Forks, One can visit the Turtle River State Park. Those interested in the area’s history may enjoy a trip to the North Dakota Museum of Art, the Myra Museum or Heritage Village. The Columbia Mall is the local shopping center. Riverside Park, Lincoln Park, University Park, Central Park and Elks Park are some of the local parks. Every year, Grand Forks hosts festivals like the Grand Cities Art Fest, the Rhubarb Festival and the Greater Grand Forks Fair and Exhibition.
Market Overview - Grand Forks, North Dakota
The University of North Dakota is located in the city of Grand Forks on the eastern edge of the state, just a few miles from the Minnesota border. Students at the University of North Dakota can study in more than 200 academic fields, including graduate programs in business, law, engineering and education. The University of North Dakota, which is often abbreviated to UND, also has a highly ranked rural medicine program in its School of Medicine and Health Sciences.
UND competes in Division I of the National Collegiate Athletic Association (NCAA). The men’s ice hockey team competes in the National Collegiate Hockey Conference. The team has won eight national championships and has been runner-up five times. The men’s ice hockey team plays at the Ralph Engelstad Arena. The football team won the Division II national championship in 2001 and was the runner-up in 2003, and play at the Alerus Center. They have qualified for NCAA postseason play 17 times, most recently in 2016, making UND one of the winningest college football programs. Of the 126 schools currently classified in the Football Championship Subdivision, only 12 have won more games than North Dakota. The basketball and volleyball teams play in the Betty Engelstad Sioux Center. The women’s basketball team has won three national championships.
A notable UND athletic alumnus is National Basketball Association (NBA) coach and former player Phil Jackson, widely considered one of the greatest coaches in NBA history. In addition, many UND alumni have played in the National Hockey League (NHL), including: Minnesota Wild wing Zach Parise, New Jersey Devils center Travis Zajac, Los Angeles Kings defensemen Matt Greene and Mike Commodore, Chicago Blackhawks forward and captain Jonathan Toews, former NHL goalie Ed Belfour, and Washington Capitals forward T. J. Oshie.
