Texas Roadhouse (Ground Lease)...Texas Roadhouse was founded upon providing fresh, quality food for a value, which is why the company makes food from scratch, even the bacon bits,

Texas Roadhouse (Ground Lease)

7302 Olson Dr, Papillion, NE 68046

James Capital Advisors

Marketing Package

Texas Roadhouse (Ground Lease)Papillion, NE




The Offering

$1,893,567

5.75%

$108,900.00

$265.39

$15.26

Ryan Sobel

(424) 325-2613

SUBMIT OFFER

FINANCIAL SUMMARYPurchase Price

Cap Rate

Net Operating Income

Price / SF

Rent / SF

Listing Agent

Phone Number

Email

PROPERTY INFOTenant

Street Address

City

State

Zip

APN

GLA

Lot Size

Year Built

Texas Roadhouse

7302 Olson Dr

Papillion

NE

68046

011590759

7,135 SF

1.56 Acres

2008

Explosive Sales GrowthThis location’s sales have been trending upwards for the past 3 years with a 7.24% increase from 2017 to 2018. Sales for Q1 2019 are up over 8% from Q1 2018.

Strong Rental GrowthThere are 10% rent increases every 5 years, providing the landlord with positive rent growth and a hedge against inflation.

Passive Landlord InvestmentTexas Roadhouse is operating under an Absolute NNN Ground Lease with the tenant paying for Taxes, Insurance, CAM and all aspects of the building.

Best in Class TenantTexas Roadhouse (NASDAQ: TXRH) is a successful publicly traded restaurant chain with over 580 locations nationwide and revenue exceeding $2.45 billion.

INVESTMENT HIGHLIGHTS

Superior Unit-Level EconomicsTexas Roadhouse is doing under 2.3% Rent to Sales at this location (contact listing broker for additional details).

Commitment to LocationThe tenant just exercised their first 5-year option without asking for a rent reduction.

mailto:[email protected]




Retail Aerial




Lease Summary

Tenant Responsible

Tenant Reimburses

Tenant Responsible

Tenant Responsible

Corporate

Texas Roadhouse

Public

26 Years

563

Real Estate Taxes

Insurance

Repairs & Maintenance

CAM

Lease Guarantor

Company Name

Ownership

Years in Business

Number of Locations

LEASE SUMMARYLease Type

Type of Ownership

Original Lease Term

Commencement Date

Lease Expiration

Term Remaining

Increases

Options

ROFR / ROFO

Absolute Net (NNN)

Ground Lease

10 Years

June 6th, 2007

December 31st, 2023

4.5 Years

10% Every 5 Years

Three (3), 5-Year Options

N/A

LOCATION HIGHLIGHTSNear U.S Air Force BaseOffutt Air Force Base, located just 15 minutes from Shadow Lake Towne Center, has an economic impact of $1.7 billion in the Omaha area and is slated to complete a $100 million renovation project by 2020.

Excellent DemographicsThis location features strong demographics with average household income exceeding $109,000 and more than 46,000 people living within a 3 miles radius.

Pad Site to Shadow Lake Towne CenterShadow Lake Towne Center is the largest open-air shopping center in the state of Nebraska with 816,533 square feet of leasable area. Major tenants include TJ Maxx, Dollar Tree, ULTA Beauty, Old Navy, Dicks Sporting Goods, Hy-Vee and many more.

High Site-Level VisibilityThe property sits on the signalized corner of State Hwy 370 and S 72nd Street with daily traffic counts exceeding 33,000 vehicles per day.

Significant FAANG Investment in Local AreaGoogle is planning to open a large data center in Southern Omaha. Facebook is already operating a large and expanding data center near the future Google site.

Fast-Growing CommunityFrom 2010-2018, population has increased within a 1 mile and 3 mile radius of the subject property by over 39% and 17% respectively.




Rent Schedule

Representative Photo

5.75%

6.33%

6.96%

7.65%

$15.26

$16.79

$18.47

$20.31

N/A

10%

10%

10%

$9,075.00

$9,982.50

$10,980.75

$12,078.83

$108,900.00

$119,790.00

$131,769.00

$144,945.90

1st Option

2nd Option

3rd Option

4th Option

01/01/2019-12/31/2023

01/01/2024-12/31/2028

01/01/2029-12/31/2033

01/01/2034-12/31/2038

CAP RATERENT / SFINCREASEMONTHLY RENTANNUAL RENT PERIODRent Schedule




About the Brand

ABOUT THE BRANDTexas Roadhouse opened its doors in 1993. Since then, the company has grown to more than 580 locations in 49 states and 22 international locations in nine foreign countries. Texas Roadhouse is famous for its hand-cut steaks, fall-off-the-bone ribs, made-from-scratch sides, and fresh-baked bread. Texas Roadhouse has become a staple in countless communities across the country with its wide offering of delicious and hearty meals that stand out.

The company’s first restaurant was founded across the Ohio River in nearby Clarksville, Indiana, by Kent Taylor. Kent’s goal was to own not just a family restaurant and not just a steak restaurant, but a place where everyone, of all ages, could come and have a great meal and great fun for a great price. For more than 25 years, Texas Roadhouse has been operating with its mission in mind. Texas Roadhouse was founded upon providing fresh, quality food for a value, which is why the company makes food from scratch, even the bacon bits, croutons and dressings.

GIVING BACKToday, Texas Roadhouse restaurants average 5,000 guests a week, which is one of the highest averages in the industry. Texas Roadhouse serves 300,000 fresh meals per day and each restaurant employs a butcher and a baker. The butchers, or “Meat Cutters”, hand-cut each steak that Texas Roadhouse serves and Texas Roadhouse averages $500,000 of cut meat a year per store.

The bakers at each restaurant are responsible for making the famous Texas Roadhouse yeast rolls from scratch every day. The restaurant’s legendary bread is baked fresh every five minutes and served piping hot along with homemade cinnamon butter to every guest as they are seated.

The food is not the only thing that’s legendary at the Roadhouse —Texas Roadhouse is fun too! From line dancers to a booming jukebox to friendly servers, customers enjoy every second spent in a Texas Roadhouse, which is why they keep coming back. Because of the company’s passion for its guests, Texas Roadhouse team members are involved outside the restaurants in Papillion as a way to give back to their local community.

Locations

580+

States

49

Countries

9




Location Overview

LOCATION OVERVIEWThe City of Papillion is a great place to live, work and play. Recently ranked #2 among small cities in Money Magazine’s Best Places to Live, Papillion offers a small-town community atmosphere within a major metropolitan area and is one of Nebraska’s fastest growing cities. Papillion is home to both high quality schools and public safety services that are second to none. Papillion maintains the lowest crime rate among metro area cities to the credit of the Papillion Police Department, which places a strong emphasis on community-oriented policing. The City operates a number of public amenities enhancing quality of life for residents, including Sump Memorial Library, Papio Bay Aquatic Center, SumTur Amphitheater and Tara Hills and Eagle Hills 18-hole championship golf courses. Papillion also boasts an array of first-class parks throughout the city, as well as Walnut Creek and Prairie Queen recreation areas. Additionally, Papillion is the home of Werner Park and Omaha Storm Chasers, the Triple-A Minor League Baseball affiliate of the Kansas City Royals.

DEVELOPMENT IN PAPILLIONIn the last 10 years, Papillion’s jurisdiction has added approximately 3,500 new residential rooftops and $1.5 billion in commercial development. The City recently announced plans for Papillion Commons, a $113 million development, which is estimated to sit on 110 acres and include housing, retail, office space and more. In March 2018, Facebook announced that it would expand its Papillion Data Center from two to six buildings, bringing the company’s total investment in the project to over $1 billion. When all Facebook buildings are complete in 2023, the data center campus will be more than 2.6 million square feet. In October 2018, R&R Commerce Park opened a 250,000-square-foot industrial warehouse building. It is the first of four such buildings planned for the first phase, which together will total one million square feet of industrial warehouse space and can accommodate a variety of tenants. The majority of recent and pending development in Papillion’s jurisdiction is happening in the Highway 370 and Highway 50 corridors between Interstate 80 and 96th Street, in the surrounding area of the subject property. Over the past decade, downtown Papillion has become a vibrant hotbed for businesses and the City is poised for further growth.

THE SUBJECT PROPERTY IS JUST 7.2 MILES FROM

THE FACEBOOK DATA CENTER




Site Plan




Demographics

10 MILE

195,270

184,060

161,254

6.09%

14.14%

$82,673

$64,099

5 MILE

48,415

45,255

40,208

6.98%

12.55%

$90,066

$73,566

3 MILE

15,392

14,239

12,027

8.10%

18.39%

$110,196

$97,345

1 MILE

3,534

3,211

2,337

10.06%

37.40%

$90,605

$72,488

HOUSEHOLDS

2024 Projection

2019 Estimate

2010 Census

Growth 2019 - 2024

Growth 2010 - 2019

HOUSEHOLDS

Avg. HH Income

Med. HH Income

10 MILE

500,208

471,551

413,721

6.08%

13.98%

5 MILE

130,189

121,611

107,833

7.05%

12.78%

3 MILE

44,141

40,875

34,741

7.99%

17.66%

1 MILE

9,488

8,606

6,159

10.25%

39.73%

DEMOGRAPHICSPOPULATION

2024 Projection

2019 Estimate

2010 Census

Growth 2019 - 2024

Growth 2010 - 2019

15 MIFrom Omaha, NE




DISCLAIMERThe information contained in this Marketing Brochure has been obtained from sources believed to be reliable. However, James Capital Advisors, Inc. & Brian Brockman (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections 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 the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITYThis Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASEThis Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker. from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property.

NON-ENDORSEMENTBroker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

Disclaimer




Contact Information

Contact Information

SUBMIT OFFER

Ryan SobelSenior Associate

(424) [email protected] RE Lic. 02005465

Brian BrockmanBroker of Record

Bang Realty, IncNE RE Lic. 20190317

mailto:[email protected]

Documents

Texas Roadhouse (Ground Lease)...Texas Roadhouse was founded upon providing fresh, quality food for a value, which is why the company makes food from scratch, even the bacon bits,