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Chili’s5105 N Belt Hwy, St. Joseph, MO 64506
OFFERING MEMORANDUM
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This Marketing Brochure contains select information pertaining to the business and affairs of Chili’s located at 5105 N Belt Hwy, St. Joseph, MO 64506 here to referred to as “Property”. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc.
This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.
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 the Buyer’s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the 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 the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals.
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 performance.
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 the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property.
NON-ENDORSEMENT NOTICEMatthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. 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 Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
CONFIDENTIALITY & DISCLAIMER STATEMENT
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PRICING AND FINANCIAL ANALYSISInvestment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
PROPERTY DESCRIPTIONProperty Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Bird’s Eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Tenant Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Regional Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
DEMOGRAPHICSDemographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11City Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
TABLE OF CONTENTS
PRESENTED BY
Hal HansteinBroker of Record
License No. 2000147245
Chuck EvansAssociate
License No. 01963473O 310.919.5841M [email protected]
Calvin ShortVP & Senior Director - STNL
License No. 01927216O 310.919.5770M [email protected]
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PRICING AND FINANCIAL ANALYSIS
Investments Highlights
Brand New 20 Year Lease
• New 20-year lease to be signed at close of escrow
• 7.50% Increases every 5 years - strong hedge against inflation
• Absolute NNN investment - Zero landlord responsibilities
• Healthy 7.65% rent/sales - provides for sustainable operating margins
• Annual store sales in excess of $2,350,000 - above the national average
High Trafficked Retail Corridor
• Outparcel to The Shoppes at North Village - ±4,000,000 sq ft which contains national retailers such as Target, Home Depot, Sam’s Club , Old Navy and a Walmart Supercenter, to name a few
• Located off of Interstate 29, which is the main travel route cutting through Kansas City to Omaha
• Missouri Western State University is located a short 5 miles away
• Ideally situated within close proximity to surrounding national tenants such Dick’s Sporting Goods, Starbucks, Chick-fil-A, Bed Bath & Beyond T.J. Maxx, Michaels and Best Buy
Seasoned Franchisee Operator/Guarantor - Hielan Restaurant Group
• Corporate guarantee from franchisee, Hielan Restaurant Group (43 locations)
• Heilan Restaurant Group is one of the largest Chili’s franchisees in the nation with 43 locations across the United States and approximately $100 million of revenue
• In 2015, Heilan Restaurant Group received the Franchisee of the Year Award
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Investment Overview
EXECUTIVE SUMMARY5105 N Belt Hwy St. Joseph, MO 64506List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,130,435Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . . . 5,697 SFCAP Rate - Current. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.75% Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2004Lot Size . . . . . . . . . . . . . . . . . . . . . . . . ± 1.72 Acres (74,833 SF)
ANNUALIZED OPERATING DATAMonthly Rent Annual Rent Rent/SF CAP Rate
Years 1 - 5 $15,000.00 $180,000.00 $31.60 5.75%
Years 6 - 10 $16,125.00 $193,500.00 $33.97 6.18%
Years 11 - 15 $17,334.38 $208,012.50 $36.51 6.64%
Years 16 - 20 $18,634.45 $223,613.44 $39.25 7.14%
Option 1 $20,032.04 $240,384.45 $42.19 7.68%
Option 2 $21,534.44 $258,413.28 $45.36 8.25%
Option 3 $23,149.52 $277,794.27 $48.76 8.87%
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Financial Overview
TENANT SUMMARYTenant Trade Name Chili’s
Type of Ownership Fee Simple
Lease Guarantor Franchisee
Lease Type NNN
Roof and Structure Tenant Responsible
Original Lease Term 20 years
Lease Commencement Date Close of Escrow
Lease Expiration Date 20 Years from COE
Term Remaining on Lease +20 years
Increases 7.50% Every 5 Year
Options Three (3) Five (5) Year
Property Name Chili’s
Property Type Casual Dining
Parent Company Trade Name Brinker International, Inc.
Ownership Public
Credit Rating BBB-
Rating Agency Fitch
Revenue $2.82 B
Net Income $209 M
Stock Symbol EAT
Board NYSE
No. of Locations 1,600
No. of Employees 100,000
Headquartered Dallas, TX
Web Site www.chilis.com
Year Founded 1975
Dallas-based Brinker International, Inc. traces its roots back to 1975, when Chili’s® Grill & Bar first opened its doors in Dallas, Texas. Chili’s started as a neighborhood-style restaurant that served quality homemade food in a casual atmosphere. Sales grew quickly and additional restaurants flourished. In 1983, Chili’s, Inc. attracted the attention of Norman Brinker, one of the restaurant industry’s preeminent lead-ers. In 1991, under his leadership, the name was changed to Brinker International, Inc. and the company went public and global.
With more than 1,600 restaurants and 100,000 team members, Chili’s is one of the world’s leading casual dining brands. Every day, they welcome more than a million guests to their restaurants in dozens of countries. Their teams, like their guests, represent a broad range of cultures, each bringing their own ideas, in-sights and experiences to the table. They’re driven by integrity, teamwork, pas-sion and an unwavering commitment to making sure every guest has an excep-tional dining experience.
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Company Overview
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™PROPERTY DESCRIPTION
THE OFFERINGProperty Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Chili’sProperty Address . . . . . . . . . . . . . . . . . . . . . . 5105 N Belt Hwy St. Joseph, MO 64506Assessor’s Parcel Number . . . . . . . . . . 03-8.0-27-004-000-033.006Zoning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C3
SITE DESCRIPTIONNumber of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OneYear Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2004Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . . 5,697 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . . ± 1.72 Acres (74,833 SF)Type of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . Fee SimpleParking . . . . . . . . . . . . . . . . . . . . . . . . . . ± 50 Surface SpacesParking Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . 8.77 : 1,000 SFLandscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . ProfessionalTopography. . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level
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Property Overview
PROPERTY DESCRIPTION
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Bird’s Eye
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Tenant Map
PROPERTY DESCRIPTION
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Regional Map
™DEMOGRAPHICS
Population 1-Mile 3-Mile 5-Mile
2021 Projection 4,585 32,246 65,078
2016 Estimate 4,614 31,793 64,836
2010 Census 4,703 31,325 64,854
2000 Census 4,749 29,224 62,685
Growth 2016-2021 -0.64% 1.43% 0.37%
Growth 2010-2016 -1.90% 1.49% -0.03%
Growth 2000-2010 -0.96% 7.19% 3.46%
Households
2021 Projection 1,857 12,399 24,974
2016 Estimate 1,867 12,235 24,911
2010 Census 1,900 12,103 25,022
2000 Census 1,870 11,108 24,445
Growth 2016-2021 -0.49% 1.34% 0.25%
Growth 2010-2016 -1.76% 1.09% -0.44%
Growth 2000-2010 1.58% 8.96% 2.36%
Income
$0 - $15,000 8.89% 14.21% 16.27%
$15,000 - $24,999 8.68% 12.79% 13.26%
$25,000 - $34,999 9.45% 9.57% 11.36%
$35,000 - $49,999 11.19% 12.47% 14.04%
$50,000 - $74,999 22.60% 20.35% 19.42%
$75,000 - $99,999 16.42% 12.17% 10.74%
$100,000 - $124,999 12.28% 7.73% 7.30%
$125,000 - $149,999 5.52% 4.15% 3.42%
$150,000 - $199,999 2.60% 3.44% 2.34%
$200,000 - $249,999 0.88% 1.33% 0.85%
$250,000 - $499,999 1.16% 1.44% 0.84%
$500,000+ 0.35% 0.34% 0.19%
2016 Est. Average Household Income $72,001 $65,022 $57,440
2016 Est. Median Household Income $63,049 $51,178 $44,738
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Demographics Report
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City Overview
ST. JOSEPH, MISSOURISt. Joseph is situated on the Kansas border of western Missouri at the crossroads of Interstate 29 and MO Highway 36. Known for being the location where the Pony Express began, the city is also home to Missouri Western State University and the Kansas City Chiefs Summer Training Camp.
Contemporary galleries and fine dining establishments remind residents and visitors of the city’s modern amenities and unique atmosphere. Meanwhile, the numerous museums and historic sites allow them to glimpse into St. Joseph’s past as an integral part of business in the Wild West.
The spirit of westward expansion that inspired an entrepreneurial attitude in the early 19th century is still evident today. St. Joseph has played a pivotal role in the KC Animal Health Corridor, so the surrounding area is buzzing with research, development and production in industries relating to animal health and nutrition. In the midst of technological progress, St. Joseph is continually set apart for its “small town” feel and strong Midwestern work ethic, drawing many employees from the surrounding farming families.
TOP EMPLOYERS - ST. JOSEPH, MO1. Mosaic Life Care
2. Triumph Foods
3. St. Joseph School District
4. 139th Airlift Wing, MO Air National Guard
5. Boehringer Ingelheim Vetmedica, Inc.
6. Missouri Western State University
7. American Family Insurance
8. City of St. Joseph
9. Wal-Mart
10. Johnson Controls
841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.matthews.com™
Chili’s5105 N Belt Hwy, St. Joseph, MO 64506
OFFERING MEMORANDUM
Hal HansteinBroker of Record
License No. 2000147245
Chuck EvansAssociate
License No. 01963473O 310.919.5841M [email protected]
Calvin ShortVP & Senior Director - STNL
License No. 01927216O 310.919.5770M [email protected]
