BURGER KING
Wichita, KS
ACT ID Z0010781
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
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been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References
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INVESTMENT OVERVIEW
FINANCIAL ANALYSIS
MARKET OVERVIEW
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02
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Offering Summary | Location Overview
Regional and Local Map | Aerial Photo
Acquisition Financing | Sales Comparables
Demographic Analysis
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Originally developed in 2006 as a Taco Bueno restaurant, the property was remodeled and converted to a Burger King in late 2009
and is operated by Genesh, Inc., a Kansas based franchisee of the Burger King Corporation (55 Burger King restaurants in Kansas
and Missouri). Consisting of approximately 2,600 sq. ft. of improvements, this Burger King is equipped with a drive-thru and is
situated on approximately 0.82 acres of land that offers abundant on-site parking. The subject property enjoys excellent frontage
onto Rock Road with a reported daily traffic count of 29,170 and is easily accessible from Highway 400.
Located directly across the street from the Burger King is Towne East Square Mall owned by Simon Property Group (NYSE: SPG),
that consists of 125 stores over 1.17 million sq. ft. of space. This mall is anchored by Dillard’s, Von Maur, JCPenney, and Sears.
Just under 11 years remaining on the absolute NNN lease. The tenant’s rent is scheduled to decrease at year 13 to offset initial
remodeling costs and then increase by 5.0% at year 16 and at the beginning of each five-year option period.
Wichita is the largest city in the state of Kansas with a current population reported at 390,591. Wichita is known as the “The Air
Capital of the World,” and is home to many companies in the aircraft industry such as Textron Aviation, Learjet, Spirit AeroSystems,
Airbus, and more. The Wichita metropolitan area has an estimated population of 644,000. The population within a three-mile radius of
the subject property is reported at 81,417 with an Average Household Income of $75,103.
INVESTMENT OVERVIEW200 South Rock Road, Wichita, KS 67207
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▪ Located Across the Street from Towne East Square Mall (125
Stores, 1.17 Million sq. ft.)
▪ Just Under 11 Years Remaining on Lease Term
▪ Experienced Franchisee
▪ Absolute NNN Lease
INVESTMENT HIGHLIGHTS
#
200 South Rock Road, Wichita, KS 67207
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAME
PRICING AND VALUATION MATRIXREGIONAL AND LOCAL MAP
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REGIONAL AND LOCAL MAP
NOTES
Tenant is Genesh, Inc., an experienced Burger King franchise headquarted in Lenexa, Kansas that currently operates 55 Burger King restaurants in Kansas and Missouri.
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OFFERING SUMMARY200 South Rock Road, Wichita, KS 67207
BURGER KING
(SUBJECT)
Kneaders
KFC
Starbucks
Pizza Hut
Long John Silver's | A&W
Ground Lease
SALES COMPARABLES
1
2
3
4
5
12
SALES COMPARABLES
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SALES COMPARABLES
SALES COMPARABLES SALES COMPS AVG
Avg. 6.61%
0.0
0.8
1.6
2.4
3.2
4.0
4.8
5.6
6.4
7.2
8.0
Burger King Kneaders KFC Starbucks Pizza Hut Long John
Silver's |
A&W Ground
Lease
Average Cap Rate
Avg. $514.82
$0.00
$80.00
$160.00
$240.00
$320.00
$400.00
$480.00
$560.00
$640.00
$720.00
$800.00
Burger King Kneaders KFC Starbucks Pizza Hut Long John
Silver's |
A&W Ground
Lease
Average Price Per Square Foot
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SALES COMPARABLES
1
NOTES
This property has approximately 15 years left on the absolute NNN lease,
with rental increases of 10% every five years. Guaranteed by Four Foods
Group, who operate in seven states and own 96 restaurants.
Close Of Escrow 1/2/2018
Sales Price $2,633,000
Price/SF $684.96
CAP Rate 6.00%
GLA 3,844 SF
Lot Size 1.12 acre(s)
Year Built 2017
KNEADERS1821 North Rock Road, Wichita, KS, 67206
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NOTES
This property was recently renovated in 2011, and has approximately 15
years left on an absolute NNN lease with a 15-unit franchisee.
Close Of Escrow 1/4/2018
Sales Price $1,100,000
Price/SF $376.33
CAP Rate 6.50%
GLA 2,923 SF
Lot Size 1.42 acre(s)
Year Built 1993
KFC1210 West Wyatt Earp Boulevard, Dodge City, KS, 67801
NOTES
Approximately 10.8 years remaining on the NNN franchise lease. Rent
decreases in year 12 of the lease. Five percent rent increase as of year 16.
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SALES COMPARABLES
SUBJECT PROPERTY
Asking Price $1,575,000
Price/SF $605.77
CAP Rate 7.63%
GLA 2,600 SF
Lot Size 0.82 acre(s)
Year Built 2006
Lease Term Remaining 10.8 Years
BURGER KING200 S Rock Rd, Wichita, KS, 67207
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SALES COMPARABLES
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NOTES
This property has nine years left on the absolute NNN lease with 10% rent
increases every five years, and four additional five-year renewal options.
Close Of Escrow 1/25/2018
Sales Price $1,400,000
Price/SF $765.86
CAP Rate 6.76%
GLA 1,828 SF
Lot Size 0.62 acre(s)
Year Built 2007
STARBUCKS16521 West 119th Street, Olathe, KS, 66061
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NOTES
This property has approximately five years remaining on the absolute NNN
lease. The guarantor, NPC International, owns and operates 1,240 Pizza
Huts across 27 states.
Close Of Escrow 10/22/2018
Sales Price $1,180,556
Price/SF $311.16
CAP Rate 7.20%
GLA 3,794 SF
Lot Size 1.69 acre(s)
Year Built 2007
Lease Term Remaining 5 Years
PIZZA HUT2920 West 18th Avenue, Emporia, KS, 66801
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NOTES
Approximately 10 years remaining on the absolute NNN ground lease with
15-unit franchisee. Seven and a half percent rent increases every five
years.
Close Of Escrow 11/28/2018
Sales Price $1,663,400
Price/SF $435.79
CAP Rate 6.60%
GLA 3,817 SF
Lot Size 0.78 acre(s)
Year Built 2009
LONG JOHN SILVER'S | A&W547 South Rock Road, Wichita, KS, 67207
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SALES COMPARABLES
OVERVIEW
WICHITA
DEMOGRAPHICS
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ECONOMY
METRO HIGHLIGHTS
* Forecast
Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
BURGER KING
Boasting a diverse economic base of manufacturing, aircraft, healthcare
and professional services, the Wichita market is composed of five
counties and supports a population of roughly 649,000 people. In
addition, the metro is growing faster than the national average, with gains
of more than 21,100 people forecast by 2022. Wichita State University
also lies within the city limits, enrolling a student body of nearly 14,500 in
both graduate and undergraduate programs.
DIVERSE MANUFACTURING BASE
Manufacturers of aviation, air-conditioners, turf equipment, food products and
telecommunications are active in the metro.
EDUCATIONAL CENTER
Home to Wichita State University, education is a key driver of the economy.
Public school districts and the university provide more than 10,000 jobs.
LARGE GOVERNMENT PRESENCE
More than 7,000 workers are employed by the state of Kansas and the U.S.
government, providing a large contingent of employment to the metro.
▪ Aviation is a integral part of the economy, with Spirit AeroSystems, Cessna Aviation and Beechcraft Corp.
hiring more than 25,000 workers. Boeing and Bombardier Aerospace also have a combined 5,500 employees.
▪ Via-Christi Health is one of the largest employers in the Wichita metro, with more than 10,000 workers on
local payrolls.
▪ Numerous other active distribution and manufacturing companies in the metro include Cargill Meat Solutions,
Koch Industries Inc., and York International. Together these firms employ approximately 4,000 people.
▪ Several telecommunications firms have established a base of operations in the market. Both T-Mobile and Cox
Communications have payrolls exceeding 800 positions each.
2017POPULATION:
251K
2017HOUSEHOLDS:
35.5
2017MEDIAN AGE:
$54,700
2017 MEDIAN HOUSEHOLD INCOME:
U.S. Median:
37.8U.S. Median:
$56,3004.5%
Growth2017-2022*:
3.3%
Growth2017-2022*:
649K
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PROPERTY NAME
MARKETING TEAM
BURGER KING
DEMOGRAPHICS
Source: © 2017 Experian
Created on December 2018
POPULATION 1 Miles 3 Miles 5 Miles
▪ 2022 Projection
Total Population 8,217 82,666 175,717
▪ 2017 Estimate
Total Population 8,410 81,417 172,249
▪ 2010 Census
Total Population 8,334 79,635 166,993
▪ 2000 Census
Total Population 8,529 76,316 155,591
▪ Current Daytime Population
2017 Estimate 14,564 86,298 215,567
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
▪ 2022 Projection
Total Households 3,611 35,599 72,126
▪ 2017 Estimate
Total Households 3,646 34,763 69,905
Average (Mean) Household Size 2.30 2.34 2.41
▪ 2010 Census
Total Households 3,592 33,903 67,547
▪ 2000 Census
Total Households 3,727 33,028 64,251
▪ Occupied Units
2022 Projection 3,611 35,599 72,126
2017 Estimate 3,866 38,114 77,477
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
▪ 2017 Estimate
$150,000 or More 17.41% 9.02% 8.83%
$100,000 - $149,000 12.96% 11.76% 10.98%
$75,000 - $99,999 11.86% 10.13% 9.81%
$50,000 - $74,999 17.98% 20.20% 18.39%
$35,000 - $49,999 10.86% 14.34% 13.72%
Under $35,000 28.92% 34.56% 38.28%
Average Household Income $101,489 $75,103 $72,695
Median Household Income $63,803 $51,226 $47,292
Per Capita Income $44,037 $32,192 $29,787
HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure
$71,889 $63,561 $61,703
▪ Consumer Expenditure Top 10 Categories
Housing $18,897 $16,824 $16,256
Transportation $12,892 $11,273 $10,910
Shelter $10,442 $9,427 $9,122
Personal Insurance and Pensions $8,197 $6,806 $6,504
Food $6,963 $6,396 $6,206
Health Care $5,098 $4,367 $4,185
Utilities $4,120 $3,692 $3,577
Entertainment $3,020 $2,683 $2,581
Household Furnishings and Equipment
$2,148 $1,835 $1,767
Cash Contributions $1,748 $1,369 $1,301
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
▪ Population By Age
2017 Estimate Total Population 8,410 81,417 172,249
Under 20 25.25% 27.06% 28.27%
20 to 34 Years 23.32% 24.43% 24.32%
35 to 39 Years 5.60% 6.17% 5.97%
40 to 49 Years 9.41% 10.44% 10.68%
50 to 64 Years 18.99% 18.25% 17.92%
Age 65+ 17.45% 13.67% 12.83%
Median Age 36.19 34.00 33.18
▪ Population 25+ by Education Level
2017 Estimate Population Age 25+ 5,668 53,111 109,284
Elementary (0-8) 0.63% 2.28% 3.31%
Some High School (9-11) 4.07% 6.01% 7.43%
High School Graduate (12) 17.31% 21.93% 23.18%
Some College (13-15) 21.63% 25.16% 24.42%
Associate Degree Only 7.29% 7.94% 7.16%
Bachelors Degree Only 30.33% 22.33% 20.96%
Graduate Degree 18.45% 13.13% 12.27%
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MARKET OVERVIEW
Income
In 2017, the median household income for your selected geography is
$63,803, compare this to the US average which is currently $56,286.
The median household income for your area has changed by 22.91%
since 2000. It is estimated that the median household income in your
area will be $73,972 five years from now, which represents a change
of 15.94% from the current year.
The current year per capita income in your area is $44,037, compare
this to the US average, which is $30,982. The current year average
household income in your area is $101,489, compare this to the US
average which is $81,217.
Population
In 2017, the population in your selected geography is 8,410. The
population has changed by -1.40% since 2000. It is estimated that
the population in your area will be 8,217.00 five years from now,
which represents a change of -2.29% from the current year. The
current population is 48.93% male and 51.07% female. The median
age of the population in your area is 36.19, compare this to the US
average which is 37.83. The population density in your area is
2,674.34 people per square mile.
Households
There are currently 3,646 households in your selected geography. The
number of households has changed by -2.17% since 2000. It is
estimated that the number of households in your area will be 3,611
five years from now, which represents a change of -0.96% from the
current year. The average household size in your area is 2.30 persons.
Employment
In 2017, there are 8,691 employees in your selected area, this is also
known as the daytime population. The 2000 Census revealed that
74.82% of employees are employed in white-collar occupations in
this geography, and 24.49% are employed in blue-collar occupations.
In 2017, unemployment in this area is 3.52%. In 2000, the average
time traveled to work was 17.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
74.72% White, 12.13% Black, 0.15% Native American and 5.00%
Asian/Pacific Islander. Compare these to US averages which are:
70.42% White, 12.85% Black, 0.19% Native American and 5.53%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 9.08% of the current year
population in your selected area. Compare this to the US average of
17.88%.
PROPERTY NAME
MARKETING TEAM
BURGER KING
Housing
The median housing value in your area was $167,218 in 2017,
compare this to the US average of $193,953. In 2000, there were
2,333 owner occupied housing units in your area and there were
1,395 renter occupied housing units in your area. The median rent at
the time was $485.
Source: © 2017 Experian
DEMOGRAPHICS
1919
MARKET OVERVIEW
MARKETING TEAM
Source: © 2015 Experian
PROPERTY NAME
#
CREATED ON DECEMBER 11, 2018
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEBURGER KING
PRICING AND VALUATION MATRIX
PROPERTY NAMEBURGER KING
DEMOGRAPHICS
1 Miles 3 Miles 5 Miles
POPULATION
2022 Projection 8,217 82,666 175,717
2017 Estimate 8,410 81,417 172,249
2010 Census 8,334 79,635 166,993
2000 Census 8,529 76,316 155,591
INCOME
Average $101,489 $75,103 $72,695
Median $63,803 $51,226 $47,292
Per Capita $44,037 $32,192 $29,787
HOUSEHOLDS
2022 Projection 3,611 35,599 72,126
2017 Estimate 3,646 34,763 69,905
2010 Census 3,592 33,903 67,547
2000 Census 3,727 33,028 64,251
HOUSING
2017 $167,218 $145,419 $138,486
EMPLOYMENT2017 Daytime Population
14,564 86,298 215,567
2017 Unemployment
3.52% 4.58% 5.60%
2017 Median Time Traveled
17 18 18
RACE & ETHNICITY
White 74.72% 64.39% 60.96%
Native American 0.15% 0.15% 0.11%
African American 12.13% 16.61% 19.87%
Asian/Pacific Islander
5.00% 8.01% 7.76%
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MARKET OVERVIEW
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P R E S E N T E D B Y
Colby HaugnessBrokerCincinnati OfficeTel: (513) 878-7733Fax: (858) [email protected]: KS 00241410
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Senior Managing Director Investments
Senior Director - National Retail Group
Palo Alto Office
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