Subject Property Offering Memorandum Click Here to View ... · Subject Property Offering Memorandum. 904 East Lafayette Street Tallahassee, Florida 32301. Long-Term, NNN Ground Lease

Subject Property Offering Memorandum

904 East Lafayette StreetTallahassee, Florida 32301

Long-Term, NNN Ground Lease

Corporate Guaranteed Lease by Chuy’s Holdings, Inc.

Walking Distance to Florida State Capital & Short Distance to FSU

Campus

Brand New, Built in 2016 with Latest Chuy’s Design and Prototype

Click Here to View Drone Video

of Property and Surrounding Area

https://vimeo.com/245203737

CONFIDENTIALITY AND DISCLAIMER

NON-ENDORSEMENT NOTICE

The 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 Real Estate Investment Services of Florida, Inc. (“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 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.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corpora-tion’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.

NET LEASED DISCLAIMER

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services© 2017. All rights reserved.

SUBJECT PROPERTY

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

FINANCIAL OVERVIEW

Overview

904 East Lafayette Street, Tallahassee, Florida 32301Price: $3,252,000Cap Rate: 6.15%Rentable Square Feet: 7,375*Annual Rent: $200,000Price/Square Foot: $440.95Land Area: 1.96 AcresYear Built: 2016

Tenant: Chuy’sWebsite: www.Chuys.comLease Guarantor: Chuy’s Holdings, Inc.Lease Type: NNN Ground LeaseLease Term: 15 Years

Base Term Monthly Annual Cap Rate

5/10/2016-6/30/2021 $16,667 $200,000 6.15%7/1/2021-6/30/2026 $18,333 $220,000 6.77%7/1/2026-6/30/2031 $20,167 $242,000 7.44%

Option Periods Monthly Annual Cap Rate

7/1/2031-6/30/2036 $22,183 $266,200 8.19%7/1/2036-6/30/2041 $24,402 $292,820 9.00%7/1/2041-6/30/2046 $26,842 $322,102 9.90%

Option Periods: 3, 5-Year OptionsRental Increases: 10% Every 5 YearsRoof & Structure: TenantRent Commencement: 5/10/2016Lease Expiration: 6/30/2031

Lease Summary

*Total building size with 1,800 square-foot outdoor patio is 9,175 SF.

http://www.Chuys.com

INVESTMENT HIGHLIGHTS


Investment Highlights• Long-Term, Triple Net (NNN) Ground Lease• Three, Five-Year Renewal Options• 10 Percent Rental Increases Every Five Years Throughout Base Term

and Option Periods• Corporate Guaranteed Lease by Chuy’s Holdings, Inc.

Location Highlights• Located in a Dense Retail Corridor• Surrounding National Brands Include Publix, Target, Best Buy,

Macy’s, JCPenney, Walmart Supercenter, Regal Cinemas, Dillard’s, Old Navy, Michael’s, Bass Pro Shops, Bed Bath & Beyond, Courtyard by Marriott, Home2 Suites by Hilton, Applebee’s, McDonald’s, Chipotle, Starbucks, Walgreens, CVS and Many More

• Walking Distance from Florida State Capital• Less Than Two Miles from Florida State University and Florida A&M

University, with a Combined Enrollment of 51,000+ Students• Two Miles from Tallahassee Medical HealthCare – the Seventh

Largest Hospital in Florida, with 772 Beds and Over 3,000 Employees• Excellent Access and Visibility Along Apalachee Parkway, with More

Than 33,000 Vehicles Per Day• The Population of Leon County is the Most Highly Educated

Population in Florida, with 49.9 Percent of the Residents with Either a Bachelor’s, Master’s, Professional or Doctorate Degree

• Tallahassee’s Population has Grown by Over 17 Percent Since 2000

Tenant Highlights• Chuy’s Owns and Operates 59 Locations in 14 States• Brand New, Built in 2016 with Latest Chuy’s Design and Prototype• Built by Tenant at Tenant Expense, Demonstrating a Long Term

Commitment to the Location

TENANT SUMMARY


Tenant: Chuy’s Opco, Inc.

Lease Guarantor: Chuy’s Holdings, Inc.

Address: 904 E. Lafayette Street, Tallahassee, FLRent Commencement: May 10, 2016

Lease Expiration: June 30, 2031

Renewal Options: Three (3), Five (5) Year Options

Rental Increases:

Year1-56-1011-1516-2021-2526-30

NOI$200,000$220,000$242,000$266,200$292,820$322,102

Real Estate Taxes: Tenant shall pay all taxes directly to the taxing authority.

Insurance:

Tenant shall maintain liability insurance and shall name Landlord as an additional insured. Tenant shall maintain property insurance and shall name Tenant and Landlord as loss payees.

Repairs & Maintenance:

Tenant shall keep the Building and Premises in good repair and condition and shall make all necessary repairs and replacements.

Utility Expenses: Tenant shall pay all charges for utilities furnished to the Premises.

Lease AbstractChuy’s (NASDAQ: CHUY) opened in 1982 in an old abandoned Texas barbeque joint on iconic Barton Springs Road in Austin. The company currently operates nearly 90 locations in 19 states, including Alabama, Arkansas, Colorado, Florida, Georgia, Indiana, Illinois, Kansas, Kentucky, Louisiana, Texas, Tennessee, Oklahoma, North Carolina, South Carolina, Maryland, Virginia, Missouri and Ohio. Chuy’s 2016 revenues increased 15.2 percent to $330.6 million, primarily driven by incremental sales from 11 net new restaurants. Chuy’s has a credit rating of B1.

Mike Young and John Zapp had a vision of a fun and funky Tex-Mex restaurant that served authentic and fresh food in an atmosphere that appealed to everyone. From these humble beginnings Chuy’s was born. Mike and John, along with their “decorator” Jose Cuervo, made some interesting decisions on restaurant decor, due to lack of money and creativity of their designer.

While they refer to their food as “Tex-Mex”, the menu is made up of a combination of flavors, with recipes and ingredients from across New Mexico, Mexican border towns, the Rio Grande Valley, deep South Texas, Austin and beyond. Their Green Chile sauce recipe was “borrowed” from a little hole-in-the-wall in Española, New Mexico, and their fajita marinade is an old South Texas family recipe. Mike and John wanted to bring FRESH to Tex-Mex, and that commitment to food is still the core of everything Chuy’s does today.

About Chuy’s


SITE PLAN

AERIAL


Apalachee Pkwy

Less Than Two Miles

fromFlorida State

University

Florida State Capitol

33,000Daily


AERIAL

Doak Campbell Stadium

Florida State Capital

Traffic Counts

Apalachee Parkway 33,000 VPD

South Magnolia Drive 46,000 VPD

U.S. Highway 90 32,000 VPD

Monroe Street 32,000 VPD


AERIAL | WEST OF PROPERTY

Apalachee Pkwy

Florida State Capital

Less Than Two Miles

fromFlorida State

University


AERIAL | EAST OF PROPERTY

LOCAL & REGIONAL MAPS


LOCATION OVERVIEW


Tallahassee, Florida | Leon CountyTallahassee is the capital of Florida, the seventh largest city in Florida, and the 126th-largest city in the U.S. The population of the Tallahassee metropolitan area is approximately 400,000. Tallahassee is the largest city in the Florida Panhandle region, and the main center for trade and agriculture in the Florida Big Bend and Southwest Georgia regions.

Tallahassee is home to Florida State University, ranked the nation’s 33rd best public university by U.S. News & World Report. It is also home to Florida A&M University, the fifth-largest historically black university by total enrollment. Tallahassee qualifies as a significant college town, with a student population exceeding 51,000.

As the capital, Tallahassee is the site of the Florida State Capitol, Supreme Court of Florida, Florida Governor’s Mansion, and nearly 30 state agency headquarters. The city is also known for its large number of law firms, lobbying organizations, trade associations and professional associations, including the Florida Bar and the Florida Chamber of Commerce. It is a recognized regional center for scientific research, and home to the National High Magnetic Field Laboratory. In 2015, Tallahassee was awarded the All-American City Award by the National Civic League for the second time. Tallahassee is currently ranked as the 18th-best college town in the nation by Best College Reviews.

Florida State University Florida A&M UniversityUndergraduate: 32,000+ Undergraduate: 9,000+Graduate: 9,000+ Graduate: 1,000+Academic Staff: 2,300 Academic Staff: 630

Major Employers # of EmployeesState of Florida 22,612

Florida State University 12,512Leon County Schools 4,550Publix Supermarket 3,439

Tallahassee Memorial HealthCare 3,190City of Tallahassee 2,736

Walmart 2,117Leon County 1,919

Florida A&M University 1,759Tallahassee Community College 1,631Capital Regional Medical Center 1,151

Tallahassee is the State Capital of

Florida

Less Than Two Miles from FSU

and Florida A&M, with a Combined

51,000+ Students


DEMOGRAPHICS

POPULATION 1 MILE 3 MILES 5 MILES2010 Population 5,205 85,074 160,1932016 Population 5,448 87,717 166,8062021 Population 5,387 90,219 175,1242016 Male Population 2,577 40,553 78,2552016 Female Population 2,870 47,164 88,5512016 Median Age 33.5 24.9 25.4

RACE & ETHNICITY 1 MILE 3 MILES 5 MILESAmerican Indian, Eskimo 0.7% 0.3% 0.3%Asian 1.7% 3.3% 3.3%Black 23.5% 41.5% 40.1%Hawaiian/Pacific Islander 0.1% 0.1% 0.1%White 70.5% 51.0% 52.1%Other 0.8% 1.3% 1.5%Multi-Race 2.9% 2.5% 2.6%Hispanic Ethnicity 5.3% 6.9% 7.2%Not of Hispanic Ethnicity 94.7% 93.1% 92.8%

HOUSEHOLDS 1 MILE 3 MILES 5 MILES2010 Households 2,941 34,733 66,7332016 Households 3,096 36,090 70,0132021 Households 3,070 37,338 74,128

HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES2010 Avg Household Income $49,489 $43,712 $48,1322016 Avg Household Income $56,126 $48,361 $53,1992021 Avg Household Income $66,469 $56,719 $62,3732010 Med. Household Income $29,962 $28,041 $30,6082016 Med. Household Income $36,856 $32,721 $35,6182021 Med. Household Income $46,067 $37,927 $41,5582010 Per Capita Income $28,909 $19,939 $21,3452016 Per Capita Income $32,811 $21,948 $23,5842021 Per Capita Income $38,804 $25,471 $27,599

View inGoogle Maps

https://www.google.com/maps/place/904+E+Lafayette+St,+Tallahassee,+FL+32301/@30.437187,-84.2715867,936m/data=!3m2!1e3!4b1!4m5!3m4!1s0x88ec5f87fcb7ee15:0x1e6866be84dda002!8m2!3d30.437187!4d-84.269398

The Wolfe Retail Group of Marcus & Millichap specializes in the sale of single-tenant properties and shopping centers and has successfully assisted clients in selling approximately 400 separate commercial properties with a market value exceeding $1.25 billion. Having closed sales in more than 40 states, our track record is evidence that we are one of the premier brokerage teams in the United States.

With our experience and background in various fields such as law and finance, we have proved to be invaluable to our clients, earning their trust and exceeding their expectations while best assisting them in their real estate transactions.

Marcus & Millichap (NYSE: MMI) has established itself as a leading and expanding investment real estate company with nearly 1,500 brokers in 78 markets throughout the United States and Canada. The foundation of our investment sales is the depth of our local market knowledge. Our 44-year history of maintaining investor relationships in local markets enables us to be the best information source and transaction service provider in North America.

About Marcus & Millichap

The Wolfe Retail Group

has sold approx. 400 properties

in more than 40 states

Subject Property

Barry M. WolfeSenior Managing Director Investments

[email protected](954) 245-3493

Alan LipskyVice President Investments


Evan WhelanAssociate


Catie JacksonMarketing Coordinator


Angelica LinaresTransaction Coordinator


mailto:Evan.Whelan%40marcusmillichap.com?subject=

mailto:Angelica.Linares%40marcusmillichap.com?subject=

Documents

Subject Property Offering Memorandum Click Here to View ... · Subject Property Offering Memorandum. 904 East Lafayette Street Tallahassee, Florida 32301. Long-Term, NNN Ground Lease