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Red Lobster - Absolute NNN 7401 Rogers Avenue | Fort Smith, Arkansas 72903 100% OCCUPIED SINGLE TENANT OFFERING MEMORANDUM SAGEPARTNERS.COM
Red Lobster - Absolute NNN7401 Rogers Avenue | Fort Smith, Arkansas 72903
100% OCCUPIEDSINGLE TENANTOFFERING MEMORANDUM
SAGEPARTNERS.COM
THE OFFERING
OCCUPANCY 100%
±7,886 SF
±2.10 acres
BUILDING SIZE
LAND AREA
Sale Price: $7,000,000Cap Rate: 6.15%
TOTAL PURCHASE PRICE
CAP RATE
NET OPERATING INCOME
LEASE TYPE
LEASE TERM
LEASE TERM REMAINING
LEASE EXPIRATION
RENT INCREASES
RENEWAL OPTIONS
RENTAL INCREASES IN OPTIONS
BUILDING SIZE
STORIES
SITE AREA
$7,000,000
6.15%
$431,187
Absolute NNN Lease
25 years
18 years
07/31/2039
2.00% Annually
Four (4), Five (5) Year Options
2.00% Annually
7,886 +/- SF
One
2.10 +/- acres
TENANT
GUARANTOR
ADDRESS
FACILITY TYPE
YEAR OPENED
YEAR RENOVATED
LOCATION
Red Lobster Restaurants, LLC
Corporate Guaranty | 704 Locations in the
US & Canada
Red Lobster Intermediate Holdings, LLC
7401 Rogers Avenue, Fort Smith, Arkansas 72903
Single Tenant
1980
2014
Fort Smith, AR is located in Northwest Arkan-
sas. It is also the principal city in the Fort Smith,
AR-Oklahoma MSA. The city is home to large
manufacturing plants, several medical centers,
and the University of Arkansas at Fort Smith.
Information deemed reliable but not guaranteed.
Information deemed reliable but not guaranteed.
3OFFERING MEMORANDUM
FINANCIAL OVERVIEW
LEASE YEAR ANNUAL RENT MONTHLY RENT
Year 8 $431,187 $35,932
Year 9 $439,811 $36,651
Year 10 $448,607 $37,384
Year 11 $457,579 $38,132
Year 12 $466,731 $38,894
Year 13 $476,065 $39,672
Year 14 $485,587 $40,466
Year 15 $495,298 $41,275
Year 16 $505,204 $42,100
Year 17 $515,308 $42,942
Year 18 $525,615 $43,801
Year 19 $536,127 $44,677
Year 20 $546,849 $45,571
Year 21 $557,786 $46,482
Year 22 $568,942 $47,412
Year 23 $580,321 $48,360
Year 24 $591,927 $49,327
Year 25 $603,766 $50,314
RENT SCHEDULE
INVESTMENT SUMMARY
Cushman & Wakefield/Sage Partners is pleased to present the exclusive listing for a Red Lobster property located in Fort Smith, Arkansas. The property consists of 7,886 square feet of building space and is situated on approximately 2.10 acres of land. The property is subject to a 25 year Absolute Triple Net (NNN) lease with 18 years remaining on the base term. The current rent is $431,187 and will continue to increase by 2.00% annually. The increases will continue through the four, five-year tenant renewal options.
6.15% CAP RATE
$7,000,000 PURCHASE PRICE
Current Annual Rent1 $431,187
Base Term Rental Escalations 2.00% Annually
ANNUALIZED OPERATING DATA
1 NOI based on August 2021 Rental Increase
ROGERS AVENUE
SITE OUTLINE
4OFFERING MEMORANDUM
S 74TH STREET
TENANT PROFILE
5OFFERING MEMORANDUM
THE STORY OF RED LOBSTER®Before there was Red Lobster, there was Bill Darden, a man pas-sionate about making delicious, high-quality seafood available and affordable to everyone, including people who lived far from the coast and regardless of race, gender, religion or economic means. What was once a single, family-owned restaurant in Lake-land, Florida, now has over 700 locations around the world.
A Lifelong CommitmentRed Lobster has been committed to seafood sustainability since we first opened our doors in 1968. As a founding mem-ber of the Global Aquaculture Alliance (GAA) in 1997, we helped establish guidelines for best practices and aquaculture certi-fications. We’re also proud to have spent decades building per-sonal relationships with suppliers who share our values.
TRACEABLE, SUSTAINABLE, RESPONSIBLE SOURCINGWild-Caught + Farm-Raised Seafood
Why Wild-Caught?Catching in the wild provides a variety of great seafood. We strive to work with fishermen who share our commit-ment to sustainability, ensuring that wild fish and shell-fish populations remain healthy and thriving.
Why Farm-Raised?Responsible farming allows us to provide high-quali-ty seafood year-round. A mindful combination of wild-caught and farm-raised seafood helps avoid depleting wild populations to keep marine ecosystems healthy.
RESPONSIBLEResponsible – we support and follow regulatory
efforts that manage fish populations and mandate our suppliers comply with all
applicable laws
TRACEABLEAll our seafood is 100% traceable to a
known and trusted source
SUSTAINABLESustainable – we only source from suppliers
who follow industry best practices
Information deemed reliable but not guaranteed.
TENANT PROFILE
6OFFERING MEMORANDUM
CORE VALUESRESPECT
INTEGRITYGENUINE CARING
HOSPITALITYTEAMWORKEXCELLENCE
FUN
KIM LOPDRUPChief Executive Officer
TOM GATHERSChief Operating Officer
HORACE G. DAWSON IIIEVP, General Counsel
CRAIG POMMELLSEVP, Chief Financial
Officer
NELSON GRIFFINEVP, Chief Procurementand Real Estate Officer
LEADERSHIPOVER 700 LOCATIONS
2020: The Best Employers for Diversity
2019: America’s Most Reputable Companies
2019: America’s Best Large Employers
2021 – Recognized by Newsweek – America’s Best Loyalty Programs 2021
2017 – Recognized by Nation’s Restaurant News- Ranked Top Restaurant Brand Among Ages 18-24
2016 – Recognized by Nation’s Restaurant News- Ranked Top Full-Service Restaurant for True Loyalty
Information deemed reliable but not guaranteed.
HISTORY OF RED LOBSTER
7OFFERING MEMORANDUM
FRESH SEAFOOD FOR EVERYONEBill Darden opens the first Red Lobster in Lakeland, Florida.
BUSINESS BOOMSRed Lobster catches the attention of General Mills. Backed by their resources, Red Lobster restaurants rapidly multiply from coast to coast.
SHRIMP BECOMES SNACK-WORTHYRed Lobster debuts Popcorn Shrimp. People go crazy for it, and rightfully so.
FOR THE SEAFOOD LOVER IN YOU®We launch our first of many iconic advertising campaigns, including Life on Land is DryTM, Go OverboardTM and Sea Food DifferentlyTM.
O CANADAWe open our first Canadian restaurant in Ontario.
LOBSTER LOVERS, REJOICEWe have our first Lobsterfest — and a Valentine’s Day tradition is born.
BEHOLD BISCUIT MANIACheesy garlic goodness comes together to create our legendary Cheddar Bay Biscuits™.
RED LOBSTER CHARTS A NEW COURSEGeneral Mills spins-off its restaurant division as Darden Restaurants, Inc.
TAKING CARE OF OUR OWNWe establish an Employee Emergency Assistance Fund, now called RL Cares, to help fellow employees facing financial hardship.
FEEDING THE HUNGRYWe start donating unused food to local food banks and homeless shelters through a program we now call RL Shares. Since its launch, we’ve donated about 20 million meals.
LOVE AT FIRST SHRIMPOur Endless ShrimpTM event launches and it’s a huge success.
BRING ON THE FRESHNESS“Today’s Fresh Fish” menu makes its debut, bringing fresh, regional seafood to Red Lobsters everywhere.
1968
1970
1974
1979
1983
1984
1992
1995
1999
2003
2004
2006
GET FIRED UPWe bring wood-fire grills into our kitchens and train Certified Grill Masters to let the natural flavors of our seafood take center stage.
A MAINE MAKEOVEROur restaurants begin to transform inside and out to a new design and décor, inspired by the historic fishing village of Bar Harbor, Maine.
WE CELEBRATE OUR INDEPENDENCEWe begin charting a new course as an independent company.
A TASTE OF INNOVATIONAs part of our commitment to keeping our menu fresh and our guests happy, we introduce sustainable, wild-caught selections like Sockeye salmon, as well as bigger and better shrimp options.
REWARDING OUR LOYAL GUESTSThe My Red Lobster Rewards program is born, rewarding guests for doing what they already love to do – enjoy delicious seafood at Red Lobster.
PARTNERING TO SET SEAFOOD STANDARDSWe unveil our Seafood with Standards commitments and engage in part-nerships to help drive continuous improvement within our supply chain. We also become the first large casual dining restaurant company to make a commitment to eliminate plastic straws from our restaurants, promising to begin replacing plastic straws with an eco-friendly alternative straw by the end of 2020.
WORKING TO PROTECT AND PRESERVE OUR OCEANSThrough a partnership with Ocean Conservancy®, a leading ocean conser-vation nonprofit, we have focused on two programs: The Global Ghost Gear Initiative, which focuses on driving solutions to the problem of lost and abandoned fishing gear, and the Trash Free Seas Alliance®, which unites leaders to mitigate plastic waste entering the oceans.
CELEBRATING OUR EMPLOYEES AND OUR GUESTSWe are recognized on the Forbes list of America’s Best Large Employers 2021, and our My Red Lobster Rewards Program is named to Newsweek’s list of America’s Best Loyalty Programs 2021.
2008
2010
2014
2015
2017
2018
2019
2021
Information deemed reliable but not guaranteed.
AERIAL
8OFFERING MEMORANDUM
ROGERS AVENUE
S 74TH STREET
38,000 VPD
Ston
e Vi
llage
Sho
ppin
g C
ente
r
FORT SMITH, AR
9OFFERING MEMORANDUM
2ND LARGEST CITY IN ARKANSAS
Fort Smith, AR is located in Northwest Arkansas. It is one of two cities that make up the county seat of Sebastian County. It is also the principal city in the Fort Smith, AR-Oklahoma MSA, which encompasses Crawford, Franklin, Sebastian, Le Flore and Sequoyah counties.
The city is home to large manufacturing plants, several medical centers, and the University of Arkansas at
Fort Smith. Located along the Arkansas River, the area celebrates its wild west history and offers several
museums and annual festivals. The MSA population totals 283,000+ people.
DOWNTOWN FORT SMITH
2ndLargest city in Arkansas
283,000+Fort Smith MSA population
FORT SMITH, AR
10OFFERING MEMORANDUM
ECONOMYThousands of residents in Fort Smith are employed in the manufacturing, trucking, food-processing, medical and higher education sectors.
The total number of employees in the Fort Smith MSA is over 117,000 residents.
The area is an important hub for shopping and consumers and is home to ABB, as well as, Hiram Walker’s blending and bottling facility.
Mercy Fort Smith and Baptist Health are two medical centers in the area that employee over 4,700 residents.
There are also higher education opportunities in Fort Smith. Home to The University of Arkansas at Fort Smith with a total enrollment of 6,260 students in the fall of 2019. The University also employees over 1,200 people. Webster College & John Brown University have four-year programs through satellite facilities in the area as well.
EMPLOYER JOBS
O.K. Foods Inc. 3200
Mercy-Fort Smith 3100
Fort Smith Public Schools 2300
Baptist Health-Fort Smith 1700
ArcBest 1600
ABB 1600
University of Arkansas - Fort Smith
1200
EMPLOYER JOBS
City of Fort Smith 1100
Bost, Inc. 1000
Rheem Manufacturing Co. 900
188th Wing 900
Choctaw Casino & Resort Pocola
700
Skyes Enterprises 600
FORT SMITH MSA LARGEST EMPLOYERS
THE UNIVERSITY OF ARKANSAS - FORT SMITH
MERCY FORT SMITH117,000Total employees in
Fort Smith MSA
6,260Total enrollment at The University
of Arkansas at Fort Smith
FORT SMITH, AR
11OFFERING MEMORANDUM
AREA ATTRACTIONSThe city offers a rich heritage and diverse culture giving residents opportunities to learn the area’s history at one of the many museums and historic attractions.
Fort Smith National Historic Site is a unit of the National Park Service in downtown Fort Smith. It is located along the Arkansas River and is comprised of two military posts, federal courthouse, and two jails used during the 19th century.
In November 2020, Fort Smith announced that it had raised $1M in donations for a new US Marshals Museum. It is expected to open in 2022. The building is a unique star shaped design representing the star badge worn by US Marshals. It will feature 5 immersive galleries.
The Downtown area offers many opportunities for shopping dining, arts, nightlight and entertainment.
Central Mall is the largest shopping center in the region and is anchored by JCPenney and Dillard’s.
There are plenty of outdoor recreational opportunities (hiking and canoeing) at Fort Smith State Park, Devil’s Den State Park and at the Mulberry River.
US MARSHALS MUSEUM - RENDERING
SEBASTIAN COUNTY COURTHOUSE
CUSHMAN & WAKEFIELD/SAGE PARTNERS
WHY ARKANSAS?
1
Arkansas is home to some of the biggest names in US industry, and continues to expand as these companies invest in their home state. Walmart, Tyson, and JB Hunt all call Arkansas home, and have made significant socioeconomic investments that have contributed to the state’s explosive growth. Connected by 5 major interstates, the Mississippi River, major rail systems, and the Port of Arkansas in Little Rock, the state of Arkansas is poised for future growth.
UNMATCHED ECONOMIC DIVERSITY
49
269
155
555
530
49
49
40
40
30
55
55
55
69
69
22
#1 Corporation In US:Bentonville, Arkansas is home to Walmart, which remains the #1 corporation on the Fortune 500 list.
5 Fortune 500 Companies:In addition to Walmart, Arkansas is home to Tyson, JB Hunt, Dillards, and Murphy USA
World Class Healthcare:Little Rock is Arkansas’ healthcare hub supplying 30,000+ jobs to the economy and treating patients from throughout the state
Significant Tech Investments:Spurred by Walmart’s continued growth, NW Arkansas has turned into a viable alternative to Silicon Valley for many start ups. Additionally, Amazon has made significant investments in Little Rock over the past 3 years.
World Class Education:Fayetteville is home to the University of Arkansas with 32,000+ combined jobs and students, and Little Rock boasts 60,000 total students among its 16 colleges and universities.
WALMART2001 SE 10th St,
Bentonville, AR 72712
JB HUNT615 J.B. Hunt Corporate Drive,
Lowell, AR 72745
TYSON FOODS2200 W Don Tyson Pkwy,
Springdale, AR 72762
DILLARDS1600 Cantrell Rd,
Little Rock, AR 72201
MURPHY USA200 E. Peach Street, El Dorado, AR 71730
1
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3
4
5
12OFFERING MEMORANDUM
ARKANSAS
COMPANY OVERVIEW
A FIRM POWERED BY EXPERIENCE
Cushman & Wakefield | Sage Partners (“Sage Partners”) specializes in provid-
ing commercial real estate brokerage, management and development ser-
vices in the state of Arkansas. Sage combines the technical, market, financial,
and industry expertise of seasoned professionals to create a full-service
commercial real estate company. The Sage team has many years of in-depth
experience that provides solutions through a combination of services.
Diversified experience provides Sage Partners with a unique perspective
combining an insight of national trends with unparalleled local knowledge.
Additionally, Sage brings a unique database of brokers, clients, contacts,
bankers, and investors from vast local, regional, and national experiences.
This combination brings real solutions to clients’ needs and ensures thor-
ough market penetration in all respects.
WHY USE SAGE PARTNERS
We are proud of the success the company has had because it is based
on a very simple equation of “good people + hard work + intelligent,
long term vision equals long term success.” What impresses people is
consistent hard work, market knowledge, quality and the character of
team members.
OUR MISSION
“Our team will work with faith and integrity, utilizing our experience
and expertise to provide superior real estate services to the benefit of
our clients, families, and community.”
CORE VALUES
Practice Integrity -
We always try to do what’s right... in all settings,
no matter the cost
Clients are Supreme -
We want our clients to see that we are outstanding
with our experience, knowledge, effort and results
Be Entrepreneurial -
We are proactive and creative in solving problems
and seizing opportunities
Teamwork Wins -
We can achieve more with all of us than individually
Give Back -
We want to invest in our community with meaningful generosity
13OFFERING MEMORANDUM
CUSHMAN & WAKEFIELD | SAGE PARTNERS DISCLOSURECushman & Wakefield | Sage Partners has been engaged by the owner of the Property to market it for sale. Information concerning the Property has been obtained from sources other than Sage Partners and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any references to age, square footage, income, expenses and any other Property specific information are approximate. Any opinions, assumptions, estimates, or financial information contained herein are projections only and are provided for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser. Buyers should conduct their own independent investigation and inspection of the Property in evaluating a possible purchase. The information contained herein is subject to change.
Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance
CONTACT INFORMATION
Cushman & Wakefield | Sage Partners - Capital Markets Division
Matt Imhoff’s contributions to Cushman & Wakefield | Sage Partners include advising and representing corporations and individuals in
commercial real estate. He is focused on investment sales of office, industrial, and retail properties and has directly transacted on more
than $300 million dollars worth of commercial real estate.
Prior to joining Cushman & Wakefield | Sage Partners, Matt was an executive in the technology industry and started, grew, and sold a
financial software company. Matt lives in Rogers, Arkansas with his wife and two young kids.
Clients Served
Private Investors
Harps Food Stores
Major Transactions
7 Office Buildings, Walton Blvd and Rainbow Curve, Bentonville AR – $28.3M – 138,000 SF
2 Medical Office Buildings, 500 S University Little Rock, AR – $34.4M - 260,000 SF
7 Office & 2 Flex Buildings, Otis Corley & J St, Bentonville AR – $25.1M – 233,000 SF
7 Tenant Office, 3350 S Pinnacle Hills Parkway, Rogers AR – $10.4M – 4 3,500 SF
Single Tenant Industrial 2710 S 48th St Springdale AR - $16.7M – 40,000 SF
Tenants from Transactions: Harps Food Stores, Brookshires, Dollar General, Dollar Tree, DaVita Dialysis, Freddy’s Custards, McAlister’s,
Taco Casa, Red Lobster, Starbucks, Walmart, Tractor Supply, Goodwill, Shell, Exxon, Coleman, Clorox, Planet Fitness, Barton’s, BNSF
Logistics, United Rentals
Matt Imhoff, CCIMAssociate
5100 W. JB Hunt Drive
Suite 800
Rogers, Arkansas 72758
479 845 3000
sagepartners.com
Specialties: Investment Sales Broker
Markets: Fayetteville/Springdale/Rogers, Fort Smith
Property Types: Office, Industrial, Retail, Flex, Hospitality, Health Care, Specialty, Sports & Entertainment
Education: BS in Electrical Engineering from the University of Arkansas MS in Technological Entrepreneurship from Northeastern University in Boston, MA.
Associations: CCIM - Certified Commercial Investment Member
