P R E S E N T E D B YRuss PanowiczFirst Vice President InvestmentsMember, National Retail GroupPalo Alto OfficeTel: (650) 391-1794Fax: (650) [email protected]: CA 00886665
Josh CaruanaBrokerIndianapolis OfficeTel: (317) 218-5350Fax: (317) [email protected]: IN IN: RB14034355
Offering Memorandum
APPLEBEE'SAPPLEBEE'S609 Kimmell Rd • Vincennes, IN 47591609 Kimmell Rd • Vincennes, IN 47591
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
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
APPLEBEE'SVincennes, INACT ID Z0010553
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N E T L E A S E D D I S C L A I M E R
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.
As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.
Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.
Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
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OFFERING SUMMARY
Price $3,350,000
Net Operating Income $219,703
Capitalization Rate – Current 6.56%
Price / SF $563.97
Rent / SF $36.99
Lease Type NNN
Gross Leasable Area 5,940 SF
Year Built / Renovated 1995
Lot Size 1.32 acre(s)
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EXECUTIVE SUMMARY
OFFERING SUMMARY
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FINANCING
Loan Amount $2,177,500
Loan Type Financed - New Loan
Loan to Value 65.00%
Down Payment 35% / $1,172,500
Interest Rate / Amortization 5% / 25 Years
Annual Loan Payment $152,753
Net Cash Flow After Debt Service 5.71% / $66,950
Cash on Cash Return 5.71%
Total Return 9.54% / $111,848
APPLEBEE'S
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APPLEBEE'S
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OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES *
Good Samaritan Hospital 1,815
V U 600
Vincent Testing Lab 600
Futaba Indiana America Corp 500
Schott Hometech North America 500
Walmart 256
Best Way Logistics 250
Vincennes Park & Recreation 193
Lewis Bakeries 175
Lowes 150
American Nursing Care 140
Kohls 123
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2018 Estimate Pop 2,994 20,694 24,670
2010 Census Pop 3,052 21,054 25,040
2018 Estimate HH 1,417 8,058 9,693
2010 Census HH 1,450 8,232 9,872
Median HH Income $47,091 $41,524 $43,864
Per Capita Income $29,633 $22,323 $24,169
Average HH Income $59,583 $53,865 $58,522
* # of Employees based on 5 mile radius
APPLEBEE'S
OFFERING SUMMARY
§ Long Term Absolute NNN Lease
§ Zero Landlord Obligations
§ 100% fee Simple Interest
§ High Visibility Location
INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to offer an opportunity to acquire the fee simple interest (land and building), of an absolute NNN, franchisee guaranteed, Applebees
investment property located in Vincennes, which is the County Seat of Knox County, Indiana. Vincennes is a city located 115 miles Southwest of Indianapolis and 116
miles northwest of Louisville, Kentucky. The appeal is that the region benefits from 1) a Low cost of doing business and 2) a Low cost of living. The franchisee Apple
Central is a 50 unit operator. The lease has over nine years remaining. The current rent will increase by 10% on July 1, 2023.
Applebees, with more than 2,000 restaurants in 50 U.S. States, Puerto Rico and 15 countries around the world, is one of the worlds largest casual dining brands. Founded
in 1980 in Atlanta, Georgia, Applebees offers classic Grill-and-Bar menu items featuring high-quality ingredients, reasonable prices and quality service in a neighborhood
setting. Today, they are further differentiating Applebees to maintain the brands position at the top of the casual dining segment. The company expects to generate
sustainable same-restaurant sales momentum for the Applebees brand by significantly increasing the effectiveness of Applebees marketing efforts, making improvements
to the operational performance of restaurants, and introducing fresh, innovative dishes for guests to enjoy. The subject property is a 5,940 square foot building, situated
on 1.32 acres. The restaurant is located in the heart of Vincennes Retail Hub.
The subject property is well positioned at the intersection of Kimmel and Hart Road on the Southeast corner, immediately south of the U.S. Highway 41 corridor. This
places the subject and primary market area on the Southeast side of Vincennes. Kimmel Road runs parallel with U.S. Highway 41. This heavily traveled Highway has a
daily traffic count of approximately 22,000 vehicles per day. The subject and primary market area are located approximately 2.0 miles west of the U.S. Highway 50 and
150 interchange. This primary market area, includes diverse land use, including mostly general retail including restaurants, convenience gas stations and automobile
dealerships. Major retail operations include a Wal-Mart and Dollar General located in the Kimmel crossing Shopping Center. Other major retail operations include Kohls,
J.C. Penny, Office Max, among others. Aside from the predominate retail use, the subjects primary market area is intermixed with hotel facilities that surround the subject
property.
INVESTMENT OVERVIEW
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TENANT PROFILES
APPLEBEE'S
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Applebee's
General Information
Tenant Name Applebee's
Website https://www.applebees.com/en
Parent Company DineEquity Inc.
Headquartered Glendale, CA
Rentable Square Feet 5,940 SF
Percentage of RBA 100%
Lease Commencement 3/12/2010
Lease Expiration 6/12/2028
No. of Locations 1,936
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CLOSE PROXIMITY TO:
609 Kimmell Rd, Vincennes, IN 47591
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEAPPLEBEE'S
PRICING AND VALUATION MATRIX
PROPERTY NAME
APPLEBEE'S
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LOCATION OVERVIEW
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609 Kimmell Rd, Vincennes, IN 47591
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEAPPLEBEE'S
PRICING AND VALUATION MATRIX
PROPERTY NAME
APPLEBEE'S
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REGIONAL AND LOCAL MAP
AERIAL PHOTO
APPLEBEE'S
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SITE PLAN
APPLEBEE'S
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PROPERTY SUMMARY
OFFERING SUMMARY
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NOTES
APPLEBEE'S
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OFFERING SUMMARY
MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.
We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.
Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues to the benefit of our clients.
National platform operating
within the firm’s brokerage offices
$6.24 billion billion total
national volume in 2018
Access to more capital sources than any other firm in the industry
Optimum financing solutions to enhance value
Our ability to enhance buyer pool by expanding finance options
Our ability to enhance seller control
• Through buyer qualification support
• Our ability to manage buyers finance expectations
• Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings
• By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file
WHY MMCC?
Closed 1,678 debt and equity
financings in 2018
ACQUISITION FINANCING
APPLEBEE'S
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APPLEBEE'S
COMPARABLES MAP
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APPLEBEE'S(SUBJECT)
Applebee's
Applebee's
Applebee's
Applebee's
Applebee's
SALES COMPARABLES
1
2
3
4
5
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PROPERTY NAME
APPLEBEE'S
SALES COMPARABLES
Applebee's Applebee's Applebee's-2 Applebee's-3 Applebee's-4 Applebee's-50.0
0.7
1.4
2.1
2.8
3.5
4.2
4.9
5.6
6.3
7.0Avg. 6.28%
Average Cap Rate
Applebee's Applebee's Applebee's-2 Applebee's-3 Applebee's-4 Applebee's-5$0.00
$90.00
$180.00
$270.00
$360.00
$450.00
$540.00
$630.00
$720.00
$810.00
$900.00
Avg. $537.40
Average Price Per Square Foot
SALES COMPARABLES
SALES COMPS AVG
PROPERTY NAME
MARKETING TEAM
APPLEBEE'S
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES
SUBJECT PROPERTY
Asking Price $3,350,000
Price/SF $563.97
CAP Rate 6.56%
GLA 5,940 SF
Lot Size 1.32 acre(s)
Year Built 1995
Lease Term Remaining 9.2 Years
APPLEBEE'S609 Kimmell Rd, Vincennes, IN, 47591
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Close Of Escrow 4/20/2018
Sales Price $1,638,000
Price/SF $421.19
CAP Rate 5.81%
GLA 3,889 SF
Lot Size 1.07 acre(s)
Year Built 1989
APPLEBEE'S105 Springboro Pike, Dayton, OH, 45449
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Close Of Escrow 1/8/2018
Sales Price $2,038,000
Price/SF $370.55
CAP Rate 6.53%
GLA 5,500 SF
Lot Size 0.78 acre(s)
Year Built 2007
APPLEBEE'S398 Northtown Dr NE, Blaine, MN, 55434
PROPERTY NAME
MARKETING TEAM
APPLEBEE'S
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES
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Close Of Escrow 3/1/2018
Sales Price $3,150,000
Price/SF $619.59
CAP Rate 6.8%
GLA 5,084 SF
Lot Size 1.47 acre(s)
Year Built 1997
APPLEBEE'S18891 Freeport St NW, Elk River, MN, 55330
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Close Of Escrow 8/4/2017
Days On Market 127
Sales Price $4,060,000
Price/SF $827.05
CAP Rate 6%
GLA 4,909 SF
Lot Size 0.68 acre(s)
Year Built 1995
APPLEBEE'S5082 Airport Pulling Road North, Naples, FL, 34105
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Close Of Escrow 9/1/2017
Sales Price $2,200,000
Price/SF $448.61
CAP Rate 6.28%
GLA 4,904 SF
Lot Size 1.91 acre(s)
Year Built 1992
APPLEBEE'S1705 Browns Bridge Road, Gainesville, GA, 30501
MARKETING TEAM
Source: © 2015 Experian
PROPERTY NAME
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CREATED ON APRIL 22, 2019
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEAPPLEBEE'S
PRICING AND VALUATION MATRIX
PROPERTY NAME
APPLEBEE'S
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DEMOGRAPHICS
1 Miles 3 Miles 5 Miles
POPULATION2023 Projection 3,022 20,500 24,614
2018 Estimate 2,994 20,694 24,670
2010 Census 3,052 21,054 25,040
2000 Census 2,832 21,230 24,791
INCOME
Average $59,583 $53,865 $58,522
Median $47,091 $41,524 $43,864
Per Capita $29,633 $22,323 $24,169
HOUSEHOLDS
2023 Projection 1,460 8,023 9,723
2018 Estimate 1,417 8,058 9,693
2010 Census 1,450 8,232 9,872
2000 Census 1,343 8,334 9,807
HOUSING
2018 $100,035 $88,801 $97,854
EMPLOYMENT
2018 Daytime Population 5,055 31,420 34,482
2018 Unemployment 2.97% 4.99% 4.60%2018 Median Time Traveled 17 17 18
RACE & ETHNICITY
White 93.94% 89.84% 90.71%
Native American 0.00% 0.02% 0.04%
African American 3.00% 5.44% 4.70%
Asian/Pacific Islander 1.16% 1.31% 1.38%
www.MarcusMillichap.com
Russ Panowicz
First Vice President Investments
Member, National Retail GroupPalo Alto OfficeTel: (650) 391-1794
Fax: (650) 391-1710
License: CA 00886665
Josh Caruana
Broker
Indianapolis OfficeTel: (317) 218-5350Fax: (317) 218-5310
License: IN IN: RB14034355
P R E S E N T E D B Y
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