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BURGER KING | 460 W GROVE STMIDDLEBOROUGH, MA 02346
CONFIDENTIAL OFFERING MEMORANDUM
Representative Photo
Recently extended lease in an established locationRepresentative Photo
Recently extended lease in an established locationRepresentative Photo
EXCLUSIVELY OFFERED BY: Local Market Expert:
Colliers Net Lease Group
ContentsProperty Strengths .........................................4
Location Overview ..........................................6
Tenant Profile ..................................................9
Financial Overview ....................................... 10
Burger King460 W GROVE ST
MIDDLEBOROUGH, MA 02346
David Borinstein, Esq.Senior [email protected]. 01478835
Timothy O’BrienVice President+1 [email protected]
ABSOLUTE NNN INVESTMENT OPPORTUNITY
■ ABSOLUTE NNN LEASE WITH RECENT EXTENSION
This offering features a recently-extended, 14-year absolute NNN lease to the Mastoran Corporation, a seasoned Burger King
franchisee which operates 43 locations and has over 30 years of franchise experience. Mastoran has been operating at this
location for more than 15 years and recently extended their lease for an additional 10 years following a thorough renovation at
no cost to the landlord.
■ AN IDEAL 1031 PASSIVE INVESTMENTLeased on an absolute NNN basis, this asset requires no management or maintenance from the owner. It offers a truly passive
ownership experience which is attractive to many 1031 exchange investors who seek long-term stable cash flow.
■ NATIONAL BRAND WITH CONSISTENT SALESBurger King is a top national performer with over 15,000 locations worldwide. Sales at this site have remained stable for the
course of this lease, consistently reporting roughly $1.3M, which translates to a healthy 8.2% rent to sales ratio.
Property Strengths
4
5
Property Overview Lease Overview
BURGER KINGStreet Address 460 W Grove Street
City, State, Zip Middleborough, MA 02346
County Plymouth
Ownership Fee Simple
Year Built 1986
Rentable SF 3,522
Lot Size 52,272 SF
Type Retail Fast Food
Website www.bk.com
Lease AbstractLease Start October 2002 (TBD)
Term 20 Years (+10 Year Extension)
Expiration October 14, 2032
Options 2 x 5 Years
Type Absolute NNN
Right of First Refusal Yes
Rent $107,000.04
Increases None
Guarantor Mastoran Corporation
BURGER KING | MIDDLEBOROUGH, MA
Location OverviewMiddleborough (often written as Middleboro) is a town in Plymouth County,
Massachusetts, United States. The population was 23,116 at the 2010 census.
Middleborough lies on the western border of Plymouth County. It is bordered by
Bridgewater and Halifax to the north, Plympton and Carver to the east, Wareham and
Rochester to the south, and Lakeville, Taunton and Raynham to the west. Despite its
name, Middleborough is not located anywhere near the other 11 “boroughs” in the
state, lying south and east of all of them. The town is approximately 15 miles west of
Plymouth, 30 miles east of Providence, Rhode Island and 40 miles south of Boston.
Middleborough’s rivers and brooks feed in two directions. The Taunton River,
Nemasket River and their tributaries flow southeastward as part of the Taunton
River Watershed, which empties into Narragansett Bay. The other waterways
of the town, including the Weweantic River, flow southward into Buzzards Bay.
Middleborough is the site of several cranberry bogs, especially in the southeastern
part of town along the Carver town line. Ocean Spray’s headquarters are just over
the town line in Lakeville.
Interstate 495 runs through the town on its way to Cape Cod. The town is also
crossed by U.S. Route 44, as well as Massachusetts routes 18, 28 and 105, as well
as a short, 1,000-foot section of Route 58 which passes through the southeast
corner of town. Route 79’s eastern terminus is on the town line at Route 105; the
“Entering Middleborough” sign is barely fifty feet from the end of the road. Routes
18, 28 and 44 meet at a two lane rotary adjacent to I-495 just west of the center of
town. Two of I-495’s four interchanges are located there. I-495’s interchange with
Route 24 is located just 1.5 miles (2.4 km) northwest of the town line.
The nearest regional airports are Taunton Municipal Airport and Plymouth Municipal
Airport; the nearest national and international airports are T. F. Green Airport in
Warwick, Rhode Island, and Logan International Airport in Boston. A small field
in South Middleborough is also used a place for recreational aircraft, but not for
transportation.
Middleborough, MA
SECTION TITLE BURGER KING | MIDDLEBOROUGH, MA 7LOCATION OVERVIEW 7
BURGER KING | MIDDLEBOROUGH, MA
8
DEMOGRAPHICS1 Mile 3 Miles 5 Miles
Population:
2000 Total Population 733 13,863 35,714
2010 Total Population 811 14,923 38,964
2017 Total Population 851 15,700 41,327
2022 Total Population 871 16,227 43,096
Population Change 2000 to 2017 16.1% 13.3% 15.7%
Population Change 2010 to 2022 7.4% 8.7% 10.6%
Population Change 2017 to 2022 2.4% 3.4% 4.3%
Households:
2000 Households 268 5,179 11,669
2010 Households 302 5,674 13,558
2017 Households 307 5,930 14,302
2022 Households 313 6,092 14,896
Household Change 2000 to 2017 14.6% 14.5% 22.6%
Household Change 2010 to 2022 3.6% 7.4% 9.9%
Household Change 2017 to 2022 2.0% 2.7% 4.2%
Income:
Per Capita Income $29,668 $33,563 $37,014
Household Income: Median $68,863 $72,229 $80,067
Household Income: Average $82,336 $89,567 $100,183
$60,000 to $74,999 7.2% 12.6% 11.9%
$75,000 to $99,999 14.7% 16.5% 16.6%
$100,000 to $124,999 16.0% 8.9% 11.8%
$125,000 to $149,999 6.8% 7.2% 10.1%
$150,000 to $199,999 4.9% 10.0% 9.0%
$200,000 or more 4.9% 5.1% 5.9%
SUBJECT
8
SECTION TITLE BURGER KING | MIDDLEBOROUGH, MA 9TENANT PROFILE 9
Tenant ProfileBurger King is an American global chain of hamburger fast food restaurants. Headquartered
in the unincorporated area of Miami-Dade County, Florida, the company was founded in 1953
as Insta-Burger King, a Jacksonville, Florida–based restaurant chain. After Insta-Burger
King ran into financial difficulties in 1954, its two Miami-based franchisees David Edgerton
and James McLamore purchased the company and renamed it “Burger King”. Over the next
half-century, the company would change hands four times, with its third set of owners, a
partnership of TPG Capital, Bain Capital, and Goldman Sachs Capital Partners, taking it
public in 2002. In late 2010, 3G Capital of Brazil acquired a majority stake in the company,
in a deal valued at US$3.26 billion. The new owners promptly initiated a restructuring of
the company to reverse its fortunes. 3G, along with partner Berkshire Hathaway, eventually
merged the company with the Canadian-based doughnut chain Tim Hortons, under the
auspices of a new Canadian-based parent company named Restaurant Brands International.
As of September 30, 2016, Burger King reported it had 15,243 outlets in 100 countries.
Of these, nearly half are located in the United States, and 99.5% are privately owned and
operated, with its new owners moving to an almost entirely franchised model in 2013.
Burger King Holdings is the parent company of Burger King, also known as Burger King
Corporation and abbreviated BKC, and is a Delaware corporation formed on July 23, 2002.
A subsidiary, it derives its income from several sources, including property rental and
sales through company owned restaurants; however, a substantial portion of its revenue is
dependent on franchise fees.
Source: Wikipedia, 2018
Company Overview - Burger King
TYPE Subsidiary
INDUSTRY Restaurants - Fast Food
FOUNDED 1953
PREDECESSOR Insta-Burger King
HEADQUARTERS Miami-Dade County, FL
LOCATIONS +15,000
AREA SERVED Global
PRODUCTSHamburgers, chicken, french fries, soft drinks,
milkshakes, salads, desserts, breakfast, hot dogs
WEBSITE www.bk.com
BURGER KING | MIDDLEBOROUGH, MA
Financial OverviewINVESTMENT SUMMARY
Offering Price $1,712,000
Cap Rate 6.25%
NOI $107,000.04
Lease Structure Absolute NNN
Lease Expiration October 14, 2032
Building Size 3,522 sq. ft.
Lot Size 52,272 sq. ft.
Parking 20 spaces
Occupancy 100%
1010
SECTION TITLE BURGER KING | MIDDLEBOROUGH, MA 1111
CONFIDENTIALITY & DISCLAIMER
This Confidential Offering Memorandum (the “Memorandum”) has been prepared and presented to the recipient (the “Recipient”) by Colliers International (“Colliers”) as part of Colliers’ efforts to market for sale the real property located at 460 W Grove St, Middleborough, MA (the “Property”). Colliers is the exclusive agent and broker for the owner(s) of the Property (the “Owner”). Colliers is providing this Memorandum and the material contained in it to the Recipient solely to assist the Recipient in determining whether the Recipient is interested in potentially purchasing all or part of the Property. Colliers also is providing this Memorandum and the material in it to the Recipient with the understanding that the Recipient will independently investigate those matters that it deems necessary and appropriate to evaluate the Property and that the Recipient will rely only on its own investigation, and not on Colliers, the Owner or this Memorandum, in determining whether to purchase the Property. The Recipient’s use of this Memorandum and the material in it is strictly governed by the terms and conditions of the Registration and Confidentiality Agreement that the Recipient previously executed and delivered to Colliers.
PLEASE NOTE THE FOLLOWING:
Colliers, the Owner and their respective agents, employees, representatives, property managers, officers, directors, shareholders, members, managers, partners, join venturers, corporate parents or controlling entities, subsidiaries, affiliates, assigns and predecessors and successors-in-interest make no representations or warranties about the accuracy, correctness or completeness of the information contained in this Memorandum. The Recipient is urged not to rely on the information contained in this Memorandum and to make an independent investigation of all matters relating to the Property.
This Memorandum includes statements and estimates provided by or to Colliers and/or the Owner regarding the Property. Those statements and estimates may or may not be accurate, correct or complete. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements and estimates. Further, nothing contained in this Memorandum should be construed as representation or warranty about any aspect of the Property, including, without limitation, the Property’s (1) past, current or future performance, income, uses or occupancy, (2) past, current or prospective tenants, (3) physical condition, (4) compliance or non-compliance with any permit, license, law, regulation, rule, guideline or ordinance, or (5) appropriateness for any particular purpose, investment, use or occupancy. Again, the Recipient is urged not to rely on this Memorandum and the statements and estimates in it and to make an independent investigation regarding the Property and the statements and estimates contained herein.
This Memorandum may include statements regarding, references to, or summaries of, the nature, scope or content of contracts and/or other documents relating to the Property. Those statements, references or summaries may or may not be accurate, correct or complete. Additionally, Colliers may not have referenced or included summaries of each and every contract and/or other document that the Recipient might determine is relevant to its evaluation of the Property. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements, representations or summaries. On request and as available, and subject to the Owner’s consent, Colliers will provide the Recipient with copies of all referenced contracts and other documents.
Colliers assumes no obligation to supplement or modify the information contained in this Memorandum to reflect events or conditions occurring on or after the date of its preparation of this Memorandum.
This Memorandum does not constitute an offer to sell, or a solicitation of an offer to buy, an interest in the Property. Nothing contained in this Memorandum may be construed to constitute legal or tax advice to a Recipient concerning the Property.
More detailed information regarding the anticipated terms, conditions and timing of any offering by the Owner relating to the Property will be provided in due course by separate communication. Colliers and/or the Owner reserve the right to engage at any time in discussions or negotiations with one or more recipients of this Memorandum and/or other prospective purchasers of the Property without notice or other obligation to the Recipient.
The Owner reserves the right to change the terms of any offering relating to the Property or to terminate without notice that offering. The Owner also reserves the right to operate the Property in its sole and absolute discretion prior to the completion of any sale of the Property. Colliers reserves the right to require the return of this Memorandum and the material in it and any other material provided by Colliers to the Recipient at any time. Acceptance of this Memorandum by the Recipient constitutes acceptance of the terms and conditions outlined above.
101 SECOND STREET | 11TH FLOOR | SAN FRANCISCO, CA 94105 | www.colliersnnn.com
EXCLUSIVELY OFFERED BY: Local Market Expert:
Colliers Net Lease Group
David Borinstein, Esq.Senior [email protected]. 01478835
Timothy O’BrienVice President+1 [email protected]
MIDDLEBOROUGH, MA
