EXCLUSIVE OFFERING | - Trivantatrivanta.com/wp-content/uploads/2016/01/Andys_OK_Broken...EXCLUSIVE OFFERING | $2,107,000 –7% CAP Andy’s FROZEN custard 800 E. Kenosha St., Broken

EXCLUSIVE OFFERING | $2,107,000 – 7% CAP

Andy’s FROZEN custard

800 E. Kenosha St., Broken arrow, ok

214.915.8890

BOB MOORHEAD

[email protected]

JOE CAPUTO

[email protected]

RUSSELL SMITH

[email protected]

SUBJECT PROPERTY

Property. New 1,167+ SF building on +1.06 acres.

Tenant. Andy’s Frozen Custard | Nearly 30 Locations in Five States | Franchisee backed by Corporate Guarantor & Personal Guaranty.

Lease structure. New 20-year, absolute NNN lease with 1.50% rent increases every 5 years in primary term and option periods.

Location. Andy’s is strategically located next to Chick-Fil-A along E. Kenosha St. “71st St” (22,000 VPD), just west of Broken Arrow Expressway “SH 51” (66,000

VPD). The site provides an outstanding view of Broken Arrow and Tulsa, centered around a combination of retail, restaurant, and office development. The subject

property boasts immense visibility and is in the hub of the region's retail activity. The subject property is located less than a half mile from the Target Shopping

Center, home to Dick’s Sporting Goods, Marshalls, PetSmart, a soon to be the conference center, and hotel project. The site is also surrounded by notable credit

tenants including Walgreens, Fire House Subs, Sinclair, and Sherwin Williams. Broken Arrow is approximately 14-miles from downtown Tulsa, OK.

Trivanta (“Agent”) has been engaged as an agent for the sale of the property located at 800

E. Kenosha St., Broken Arrow, OK by the owner of the Property (“Seller”). The Property is

being offered for sale in an “as-is, where-is” condition and Seller and Agent make no

representations or warranties as to the accuracy of the information contained in this

Offering Memorandum. The enclosed materials include highly confidential information and

are being furnished solely for the purpose of review by prospective purchasers of the

interest described herein. The enclosed materials are being provided solely to facilitate the

prospective investor’s own due diligence for which it shall be fully and solely responsible.

The material contained herein is based on information and sources deemed to be reliable,

but no representation or warranty, express or implied, is being made by Agent or Seller or

any of their respective representatives, affiliates, officers, employees, shareholders,

partners and directors, as to the accuracy or completeness of the information contained

herein. Summaries contained herein of any legal or other documents are not intended to be

comprehensive statements of the terms of such documents, but rather only outlines of

some of the principal provisions contained therein. Neither the Agent nor the Seller shall

have any liability whatsoever for the accuracy or completeness of the information contained

herein or any other written or oral communication or information transmitted or made

available or any action taken or decision made by the recipient with respect to the Property.

Interested parties are to make their own investigations, projections and conclusions without

reliance upon the material contained herein. Seller reserves the right, at its sole and

absolute discretion, to withdraw the Property from being marketed for sale at any time and

for any reason. Seller and Agent each expressly reserves the right, at their sole and

absolute discretion, to reject any and all expressions of interest or offers regarding the

Property and/or to terminate discussions with any entity at any time, with or without notice.

This offering is made subject to omissions, correction of errors, change of price or other

terms, prior sale or withdrawal from the market without notice. Agent is not authorized to

make any representations or agreements on behalf of Seller. Seller shall have no legal

commitment or obligation to any interested party reviewing the enclosed materials,

performing additional investigation and/or making an offer to purchase the Property unless

and until a binding written agreement for the purchase of the Property has been fully

executed, delivered, and approved by Seller and any conditions to Seller’s obligations

hereunder have been satisfied or waived. By taking possession of and reviewing the

information contained herein, the recipient agrees that (a) the enclosed materials and their

contents are of a highly confidential nature and will be held and treated in the strictest

confidence and shall be returned to Agent or Seller promptly upon request; and (b) the

recipient shall not contact employees or tenants of the Property directly or indirectly

regarding any aspect of the enclosed materials or the Property without the prior written

approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied

or otherwise reproduced without the prior written authorization of Seller and Agent.

PAGE 3: INVESTMENT | TENANT | LEASE OVERVIEW

PAGE 1: COVER

PAGE 2: TABLE OF CONTENTS | DISCLAIMER

PAGE 12: DEMOGRAPHICS

Table of contents | Disclaimer Andy’s FROZEN custard


PAGE 8: PROPERTY PHOTOS

PAGE 10-11: LOCATION MAPS

Disclaimer

PAGE 7: SITE PLAN

PAGE 5-6: AERIAL PHOTOS

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Listed in association with OKLAHOMA broker of record: Grant McKinney| Lic. #: 120857

PAGE 4: TENANT OVERVIEW CONT.

PAGE 9: LOCATION OVERVIEW

SUBJECT PROPERTY PRIOR TO PANDA EXPRESS EXPANSION

PRICE | CAP RATE: $2,107,000 | 7%

NET OPERATING INCOME: $147,500

BUILDING AREA: 1,167+ Square Feet

LAND AREA: 1.06+ Acres

YEAR BUILT: 2015

LANDLORD RESPONSIBILITY: None

OWNERSHIP: Fee Simple Interest

OCCUPANCY: 100%

Investment overviewAndy’s FROZEN custard


ANDY’S FROZEN CUSTARD | www.eatandys.com

Andy’s Frozen Custard is a quick service frozen dessert business. Andy’s are freestanding restaurants, with a drive through and walk-up service windows,

exclusively selling frozen custard treats. Andy’s has a wide variety of treats from simple vanilla or chocolate cones, to seasonal favorites like our Pumpkin Pie

Concretes, and Strawberry Shortcake Sundaes.

Andy's Frozen Custard has always been fanatical about custard, and has served it with pride since 1986. For over two decades, only the freshest ingredients have

been used for a frozen custard experience you can’t get anywhere else. The Andy’s Frozen Custard tradition started in Osage Beach, Missouri when John and

Carol Kuntz embarked on a new frozen custard endeavor. Their treat quickly became a legend at the lake, and soon took nearby Springfield, Missouri by storm.

John, Carol, Andy, and Dana have been able to make Andy's Frozen Custard the largest dessert only franchise in the world! Andy's can now be found in 5 states,

and has nearly 30 locations.

Tenant overviewFRANCHISEE / LESSEE: Rancher’s Custard Company, LLC

GUARANTOR: Joplin Regional Stockyards, Inc.

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Lease Expiration: January 2036

Rent Commencement: December 2015

Initial Lease Term: 20-Years, Plus 5, 5-Year Options to Renew

Rent Increases: 1.50% Annual Increases In Term & Options

Lease Type: Absolute NNN

Lease overview

Annual Rent (Year 1): $147,500




















TENANT OVERVIEW CONT.Andy’s FROZEN custard


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ANDY’S FROZEN CUSTARD

Andy’s Frozen Custard got its start back in 1986 in Osage Beach, Missouri. John

and Carol Kuntz named the company after their son and started making their tasty

frozen treat there, but soon established a location in Springfield, Missouri as well.

Customers enjoy either drive-thru or walk-up window service at each location.

Eventually Andy and his wife Dana got involved at the Springfield location, learning

the business from the ground up. Together, this family has built the brand into a

chain that nearly has 30 locations in Missouri, Arkansas, Oklahoma, Texas, and

Illinois. Andy's is growing rapidly and has a high growth plan including 2 recent

openings in the Austin area, 15 sites planned for Dallas – Fort Worth, TX, also

expanding into Nashville, TN, Denver, CO, and Oklahoma City, OK.

These shops offer customers near and far from its Osage Beach roots a slice of

hometown Americana, where it’s fun to be a kid for a while. At the heart of each

Andy’s is a fun work environment, where everyone shares in the fanaticism that

brought Andy’s to life, and keeps it going strong.

Andy’s is open all year! Andy’s generally operates from at least 11am-11pm, every

day of every month. Sun, rain, sleet, or snow, it’s always a good time to enjoy

Andy’s Frozen Custard. Andy’s patios are heated for those winter months, well lit for

those dark nights, and beautifully landscaped for any season.

Andy’s number one focus is product quality, using only the finest ingredients in their

mix. The custard is always served within one hour after it is made. Andy’s brownies,

pumpkin and apple pies, shortcake, and cookies are baked fresh every day at the

store. Andy’s nuts are roasted fresh every week in downtown Chicago, and shipped

next day to their stores. All of Andy’s fruits are real, and they don’t use syrups or

sauces when the real thing is an option.

All of these features are combined with extensively trained employees to make the

best treats ever. “We guarantee satisfaction: If you don't think your treat is the best

you have ever had, we will make you another one, free of charge!”

ANDY’S BUSINESS MODEL

Andy’s Frozen Custard is a time tested, family owned and operated, systems

proven operation. They sell only the best proprietary products in a clean, modern-

retro atmosphere that their employees enjoy working in. They use a face-to-face

customer service model (no speakers) to ensure that they maintain a connection

with their customers from the moment they arrive until the moment they leave.

Andy’s uses a business model with an easy to control cost of goods system along

with a staffing metric that is measurable and reflects high levels of productivity.

They measure all of their costs and staffing via cutting edge POS systems and

detailed back of the house recording systems. Andy’s stores benefit from low

operating and labor costs, which in return result in a higher profit per store despite

the fact of being a dessert-only concept.

FROZEN DESSERT INDUSTRY

Good news! According to IBIS World's 2010 to 2015 frozen yogurt industry analysis:

•At the moment, there are just shy of 400 frozen dessert businesses operating in

the United States.

•These companies supply jobs for close to 20,000 Americans and bring in around

$2 billion per year.

•From 2010 to 2015, there was a 20.6 percent annual growth for the frozen dessert

industry.

These stats suggest that frozen dessert stores will continue to prosper for many

years to come -- which is "music to the ears" for potential franchisees, as it means

they can enter a gigantic industry poised for further growth. Even better, investors

don't have to stress about being late to the game, since many cities have little

competition in the frozen dessert market right now.

Andy's. "About." Andy's Frozen Custard. Andy's Frozen Custard, 11 Jan. 2016. Web. 11 Jan. 2016.

AERIAL PHOTOAndy’s frozen custard


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E. Kenosha St. (22,000 VPD)

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AERIAL PHOTOAndy’s frozen custard


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Site planAndy’s FROZEN custard


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PROPERTY PHOTOSAndy’s FROZEN custard


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Location overviewAndy’s FROZEN custard


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IMMEDIATE TRADE AREA

Andy’s is strategically located along E. Kenosha St. “71st St” (22,000 VPD), just

west of Broken Arrow Expressway “SH 51” (66,000 VPD). 71st St. is major

east-west thoroughfare that serves Broken Arrow, while Hwy 51, Broken

Arrow’s busiest Hwy., is a major east-west Hwy in Oklahoma that runs 333

miles.

The site provides an outstanding view of Broken Arrow and Tulsa, centered

around a combination of retail, restaurant, and office development. The subject

property boasts immense visibility and is in the hub of the region's retail

activity. The subject property is located less than a half mile from the Target

Shopping Center, home to Dick’s Sporting Goods, Marshalls, PetSmart, a soon

to be conference center, and hotel project. The site is also surrounded by

notable credit tenants including Walgreens, Chick-fil-a, Fire House Subs,

Sinclair, and Sherwin Williams , also is located within walking distance of the

newly constructed Flight Safety manufacturing facility, home to over 750 highly

skilled workers. Broken Arrow is approximately 14-miles from downtown Tulsa,

OK.

BROKEN ARROW, OK

The City of Broken Arrow is conveniently located southeast of Tulsa. Broken

arrow is a mere 20 minutes from the Tulsa Intl. Airport, has a Union Pacific rail

that goes through most of the City, and one of the U.S.'s most inland ports,

located just 30 minutes north. The Broken Arrow Expressway provides easy

access to the City and quick access to the interstate highway system.

The community of Broken Arrow provides the perfect combination of assets

that companies require to be successful; including a business friendly

environment, skilled workforce, sufficient infrastructure, and quality of life.

Broken Arrow is the 4th largest city in the state and the largest suburb in the

Tulsa Metro area. Also, the city is home to some of the most up and coming

manufacturing corporations. Broken Arrow is the 3rd largest base of

manufacturing in the state and considered the 15th "Top Booming Suburb In

America" by Coldwell Banker. This is in part due to the exponential growth of

the community over the past 10-15 years, going from a City of 75,000 to one of

over 105,000. Broken Arrow is considered an ideal place to locate a business:

with low cost of living, easy access to multiple highway systems, and a

consistent rating as one of the safest cities in the state.

NORTHEASTERN OKLAHOMA / TULSA

Colloquially referred to as “Green Country,” Northeast Oklahoma is one of the

most populous regions of the state. The area derives its nickname from the

heavily-wooded areas amidst the rolling hills and mountains. The second

largest city in the state, Tulsa is the economic center of the region. In fact, the

term Green Country and Tulsa Metropolitan Area are used interchangeably.

The region is anchored the Tulsa MSA, compromising of seven counties:

Creek, Okmulgee, Osage, Pawnee, Rogers, Tulsa and Wagoner, whose

aggregate population is estimated to be 969,224 or 25.0 percent of the

population of the state of Oklahoma. The gross product or value of all goods

and services produced in the seven-county MSA is estimated to be $50.9 billion

(2010 dollars), or 30.7 percent of the Oklahoma economy. The area consists of

a downtown area with mid-level skyscrapers surrounded by dense suburban

areas.

Tulsa is considered to be the economic engine of the area. Tulsa’s major

industries are aerospace, including aerospace manufacturing and aviation;

health care; energy; machinery and electrical equipment manufacturing;

transportation, distribution and logistics. Several clusters, or groups of

companies within industries that buy or sell to each other in the manufacture of

goods for export from the area, have disproportionately large concentrations of

employment relative to the U.S. concentrations and are positioned to grow

within the Tulsa MSA: Aerospace parts manufacturing is three times more

concentrated in the Tulsa MSA than in the U.S.; oil and gas production and

machinery manufacturing, 7.5 times more concentrated; and pump and

compressor manufacturing, 19.6 times more concentrated.

Once known as the “Oil Capital of the World,” Tulsa is still home to many oil-

related businesses. Fortune 500 companies such as ONEOK and Williams

Companies are headquartered in Tulsa. In addition the area is home to many

of the nation’s rental car companies, including Dollar Thrifty Automotive Group.

The area also benefits from the nations largest inland port. The port plays a

vital roll in transporting the areas manufacturing and timber production to

international trade routes.

The historical population has experienced consistent double-digit growth on

average. In 2010 the growth rate was 9.1 percent over the previous 2000

Census report, while 2000 to 1990 resulted in a 12.9 percent increase in

population. One potential explanation for sustained increase in the population

maybe the strength of the workforce. The Tulsa region is home to the 8th best

workforce in aerospace, 9th best in Energy, and 18th best in

telecommunications. The area also benefits from local tourism events, boasting

such attractions as recreational lakes and state parks.

Location mapAndy’s FROZEN custard


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Location mapAndy’s FROZEN custard


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2015 Est. Labor Population Age 16 Years or Over 5,883 42,422 98,707

2015 Est. Civilian Employed 67.5% 69.5% 70.1%

2015 Est. Civilian Unemployed 2.6% 2.6% 2.4%

2015 Est. in Armed Forces 0.2% 0.1% 0.1%

2015 Est. not in Labor Force 29.7% 27.8% 27.5%

2015 Labor Force Males 48.0% 47.9% 48.3%

2015 Labor Force Females 52.0% 52.1% 51.7%

2010 Occupation: Population Age 16 Years or Over 2,728 25,187 63,262

2010 Mgmt, Business, & Financial Operations 13.7% 15.0% 14.8%

2010 Professional, Related 13.6% 19.6% 20.4%

2010 Service 18.6% 15.6% 16.0%

2010 Sales, Office 30.7% 29.9% 28.7%

2010 Farming, Fishing, Forestry - 0.1% 0.1%

2010 Construction, Extraction, Maintenance 13.9% 9.8% 9.4%

2010 Production, Transport, Material Moving 9.5% 10.1% 10.6%

2010 White Collar Workers 58.0% 64.5% 63.9%

2010 Blue Collar Workers 42.0% 35.5% 36.1%

2010 Drive to Work Alone 84.2% 84.9% 84.5%

2010 Drive to Work in Carpool 10.3% 8.5% 9.3%

2010 Travel to Work by Public Transportation 0.1% 0.4% 0.4%

2010 Drive to Work on Motorcycle 0.2% 0.2% 0.2%

2010 Walk or Bicycle to Work 0.7% 0.9% 0.8%

2010 Other Means 2.1% 1.2% 1.1%

2010 Work at Home 2.3% 4.0% 3.7%

2010 Travel to Work in 14 Minutes or Less 34.9% 27.3% 27.7%

2010 Travel to Work in 15 to 29 Minutes 47.9% 52.5% 51.8%

2010 Travel to Work in 30 to 59 Minutes 15.8% 18.6% 18.8%

2010 Travel to Work in 60 Minutes or More 1.5% 1.6% 1.7%

2010 Average Travel Time to Work 16.6 19.1 19.1

2015 Est. Total Household Expenditure $155 M $1.21 B $2.82 B

2015 Est. Apparel $5.39 M $42.2 M $98.2 M

2015 Est. Contributions, Gifts $10.1 M $80.1 M $187 M

2015 Est. Education, Reading $5.78 M $45.5 M $107 M

2015 Est. Entertainment $8.66 M $68.0 M $158 M

2015 Est. Food, Beverages, Tobacco $24.1 M $186 M $433 M

2015 Est. Furnishings, Equipment $5.21 M $41.6 M $97.2 M

2015 Est. Health Care, Insurance $13.8 M $106 M $246 M

2015 Est. Household Operations, Shelter, Utilities $48.1 M $374 M $871 M

2015 Est. Miscellaneous Expenses $2.34 M $17.9 M $41.7 M

2015 Est. Personal Care $2.01 M $15.7 M $36.6 M

2015 Est. Transportation $29.7 M $233 M $542 M

5 mi radius

Broken Arrow, OK 74012

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800 E. Kenosha St. 1 mi radius 3 mi radius

2015 Estimated Population 7,533 55,772 130,356

2020 Projected Population 7,806 57,773 134,975

2010 Census Population 6,167 49,695 121,304

2000 Census Population 5,054 38,510 98,170

Projected Annual Growth 2015 to 2020 0.7% 0.7% 0.7%

Historical Annual Growth 2000 to 2015 3.3% 3.0% 2.2%

2015 Estimated Households 3,121 21,398 49,107

2020 Projected Households 3,290 22,585 51,837

2010 Census Households 2,341 18,663 44,869

2000 Census Households 1,984 14,039 35,932

Projected Annual Growth 2015 to 2020 1.1% 1.1% 1.1%

Historical Annual Growth 2000 to 2015 3.8% 3.5% 2.4%

2015 Est. Population Under 10 Years 14.9% 15.5% 15.2%

2015 Est. Population 10 to 19 Years 12.2% 13.5% 14.6%





2015 Est. Population 75 Years or Over 5.5% 4.5% 4.0%

2015 Est. Median Age 30.5 33.4 33.8

2015 Est. Male Population 48.8% 48.7% 49.0%

2015 Est. Female Population 51.2% 51.3% 51.0%

2015 Est. Never Married 31.3% 24.9% 26.0%

2015 Est. Now Married 43.7% 54.4% 55.0%

2015 Est. Separated or Divorced 16.8% 15.0% 14.4%

2015 Est. Widowed 8.2% 5.7% 4.7%

2015 Est. HH Income $200,000 or More 2.5% 3.3% 3.7%

2015 Est. HH Income $150,000 to $199,999 5.1% 5.2% 4.9%

2015 Est. HH Income $100,000 to $149,999 11.5% 14.3% 15.6%

2015 Est. HH Income $75,000 to $99,999 8.6% 14.6% 15.2%

2015 Est. HH Income $50,000 to $74,999 22.6% 22.5% 20.8%

2015 Est. HH Income $35,000 to $49,999 18.6% 15.2% 14.2%

2015 Est. HH Income $25,000 to $34,999 8.8% 9.2% 9.5%

2015 Est. HH Income $15,000 to $24,999 12.8% 8.8% 8.5%

2015 Est. HH Income Under $15,000 9.5% 7.0% 7.6%

2015 Est. Average Household Income $60,738 $73,075 $74,669

2015 Est. Median Household Income $55,859 $62,286 $64,324

2015 Est. Per Capita Income $25,259 $28,063 $28,148

2015 Est. Total Businesses 446 2,860 4,542

2015 Est. Total Employees 5,739 40,217 66,729

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DEMOGRAPHICSAndy’s


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Documents

EXCLUSIVE OFFERING | - Trivantatrivanta.com/wp-content/uploads/2016/01/Andys_OK_Broken...EXCLUSIVE OFFERING | $2,107,000 –7% CAP Andy’s FROZEN custard 800 E. Kenosha St., Broken