WENDY’S EXECUTIVE SUMMARY - woodmont.com · Wendy’s is the #2 hamburger chain in the US and has approximately 6,500 locations in the United States and 29 countries worldwide with

REPRESENTATIVE IMAGE

WENDY’SI N V E S T M E N T O P P O R T U N I T Y

O F F E R I N G M E M O R A N D U M

W I C H I T A , K A N S A S

2 5 Y E A R T E R M

A B S O L U T E N E T L E A S E

5 . 0 0 % C A P R A T E


TABLE OF CONTENTS

EXCLUSIVELY OFFERED BY:

executive summaryInvestment Highlights 4Demographic Summary 5

property summaryLocation Maps 7Retail Aerial 10Site Plan 11Property Images 12 Competition Map 14

tenant summaryTenant Profiles 16Investment Details 17

market summaryWichita Market Overview 19Statement of Confidentiality & Disclosure 20

section i

section ii

section iii

section iv

trip greenSr. Vice President - Investment Sales

817.377.7763

[email protected]

grant garyPresident - Brokerage Services

817.377.7735

[email protected]

WENDY’S EXECUTIVE SUMMARY

WENDY’S // 4

wendy’s has been at this location for 37+ years and their

continued commitment to the location and market is

evidenced by its plans to undertake a complete updating

of the property at a cost of $1,200,000 and execute a

new 25 year lease upon closing.

due to its positioning at a major intersection in

wichita and very limited fast food competition in the

surrounding are, wendy’s has been able to maintain a

stable sales history and enjoys a prominent presence.

in addition to being in the very heart of the retail trade

area, the site has excellent ingress/egress points to

traffic flow and located in very close proximity to

wichita state university along with the community’s

other schools and complimentary retailers.

barriers to entry will continue to be high and limit

competition, providing investors a unique opportunity

to acquire a long term, stable, single tenant restaurant

asset of leading national qsr brand and strong

franchisee operator.

INVESTMENT OVERVIEWthe woodmont company is pleased to present an opportunity to acquire a single tenant net leased wendy’s

restaurant located in wichita, kansas. at closing a new 25-year, absolute nnn lease, with rent increases

every five years, including option periods, will be consummated, providing investors a tremendous hedge

against inflation and a stable cash flow, passive income producing asset.

INVESTMENT HIGHLIGHTS

OFFERING SUMMARY

price: $3,150,000

cap rate: 5.00%

annual income: $157,500

years remaining on lease: 25

franchisee: cotti foods midwest, inc.

HIGHLIGHTS

• new 25 year lease plus four, 5-year options

• absolute nnn lease with zero landlord

responsibilities

• strong operator: 195 units in 6 states

• exceptional presence in local market

• over 37 years at this location

• new remodel to wendy’s updated prototype

scheduled to be completed within 24 months

of closing

• healthy rent to sales ratio

• tremendous hedge against inflation: 10% rent

increases every 5 years

CONTINUED COMMITMENT

WENDY’S // 5

JAN 2016 • Proprietary & Confidential

NRE-VE DESIGN GUIDE

5

NRE VE COVER SHEET

DEMOGRAPHIC SUMMARY - WICHITA, KS

1 MILES

3 MILES

5 MILES

2018 Population Estimate 11,211 72,157 169,328

2018 Avgerage HH Income $70,985 $77,909 $67,752

DEMOGRAPHIC SUMMARY

WENDY’S PROPERTY SUMMARY

WENDY’S // 7

LOCATION MAP - REGION

WENDY’S // 8

LOCATION MAP - AREA

WENDY’S // 9

LOCATION MAP - MARKET

WENDY’S // 10

RETAIL AERIAL

EAST 21ST STREET N.®

NO

RT

H W

OO

DL

AW

N B

LV

D

WENDY’S // 11

SITE PLAN

NO

RT

H W

OO

DL

AW

N B

LV

D - 2

3,0

00

VP

D

*Boundary lines shown are approximate

WENDY’S // 12

PROPERTY IMAGES

*ACTUAL LOCATION, PRIOR TO COMPLETED REMODEL. BOUNDARY LINES ARE APPROXIMATE

EAST 21ST STREET N. - 25,000 VPDN

OR

TH

WO

OD

LA

WN

BLV

D -

23

,00

0 V

PD

WENDY’S // 13

PROPERTY IMAGES


EAST 21ST STREET N. -

25,000 VPD

NORTH WOODLAWN BLVD - 23,000 VPD

WENDY’S // 14

PROPERTY IMAGES


EAST 21ST STREET N. - 25,000 VPD

NORTH WOODLAWN BLVD - 23,000 VPD

WENDY’S // 15

PROPERTY IMAGES


NRE-VE DESIGN GUIDE

5

NRE VE COVER SHEET



NRE-VE DESIGN GUIDE

5

NRE VE COVER SHEET


NRE-VE DESIGN GUIDE

5

NRE VE COVER SHEET


NRE-VE DESIGN GUIDE

5

NRE VE COVER SHEET


REPRESENTATIVE IMAGE REPRESENTATIVE IMAGE

WENDY’S // 16


NRE-VE DESIGN GUIDE

6

NRE VE SEATING LAYOUT

COMMUNITY TABLE

BANQUETTE SEATING

BO

OT

H S

EA

TIN

G

FIR

E P

LAC

E

PICK-UP WINDOWPAY WINDOW

CONDIMENT STATION

RED BLADE

HIGH DENSITY STORAGE

MANAGER’S OFFICE

IFC (REDUCED ELECTRIC PANELS)

JANITOR’S AREA

POWER SOAK SINK

SANDWICH STATION

FRY STATION

68 SEATS

VESTIBULEMEN’S RESTROOM

FREEZER

COOLER

DRY STORAGE

BACK OF HOUSE

FREESTYLE DRINKS

VEG PREP AND WORK

TABLE

CO2 & GREASE

WOMEN’S RESTROOM

OPEN CEILING

WITH UP LIGHTING

CUSTOMER SELF ORDER

DOUBLE SIDEDGRILL

COMBI AND HIGH SPEED OVEN

79’-6”

38

’-11”

OPTIONAL FREESTYLE

PROPERTY IMAGES


WENDY’S // 17

COMPETITION MAP - MARKET

0.5 MILE RADIUS

WENDY’S TENANT SUMMARY

parent company: the wendy’s company tenant: cotti foods midwest, inc.

public/private: public 2018 sales: $59,250,000

ticker symbol: wen (nasdaq) 2019 projected sales: $66,250,000

s&p rating: b+ (stable) public/private: private (family owned)

locations: +/- 6,500 locations: 47

headquarters: dublin, oh headquarters: rancho santa margarita, ca

website: www.wendys.com

year founded: 1969

Wendy’s is an American international fast food restaurant chain founded by Dave

Thomas on November 15, 1969, in Columbus, Ohio, United States. The company

moved its headquarters to Dublin, Ohio, on January 29, 2006. Wendy’s is the #2

hamburger chain in the US and has approximately 6,500 locations in the United

States and 29 countries worldwide with plans to grow to 7,500 units by 2020.

Approximately 85% of Wendy’s restaurants are franchised. Wendy’s and its

affiliates employ more than 47,000 people in its global operations.

A Cut Above: In the competitive Fast Food landscape, Wendy’s continues to strive

in meeting their mission as being seen by consumers as A Cut Above. These efforts

include bold new restaurant designs, dynamic menu offerings in tune to tastes and

excellent customer service.

Known for its legendary hamburgers and famous Frosty desert, Wendy’s

restaurants also offer an expanded menu selection including chicken sandwiches,

wraps and salads.

Cotti Foods Midwest, Inc. is one of six family owned Cotti Foods companies that

collectively operate 195 restaurants in 6 states. As of July 2019, the companies

operate 82 Taco Bell restaurants in California, 103 Wendy’s restaurants in

California, Hawaii, Kansas, Missouri, Oklahoma and Texas, and 10 Pieology

restaurants in California and Hawaii.

The Executive Management Team of Cotti Foods collectively has over 200 years of

experience in the fast-food industry. The six family owned companies are based in

Rancho Santa Margarita, California and employ over 6,000 people.

WENDY’S // 19

TENANT PROFILES

WENDY’S // 20

LEASE SUMMARY

tenant trade name wendy's

franchisee cotti foods midwest, inc.

lease guarantor cotti foods midwest, inc.

type of ownership fee simple(land & improvements)

lease type absolute nnn

initial lease term 25 years

term remaining(at closing date) 25 years

lease commencement date

sept. 2019(est.closing date)

lease expiration date august 2044 (est.)

renewal options four (4), 5 years each

rent escalations 10% every 5 years, including options

rent abatement period

4 months(remodel period)

roof & structure tenant responsibility

real estate taxes tenant responsibility

insurance tenant responsibility

hvac tenant responsibility

cam tenant responsibility

repairs & maintenance tenant responsibility

INVESTMENT DETAILS

RENT SCHEDULE

PERIOD MONTHLY RENT ANNUAL RENT CAP RATE

yrs 1-5 initial term $13,125.00 $157,500 5.00%

yrs 6-10 initial term $14,437.50 $173,250 5.50%

yrs 11-15 initial term $15,881.25 $190,575 6.05%

yrs 16-20 initial term $17,469.38 $209,633 6.66%

yrs 21-25 initial term $19,216.31 $230,596 7.32%

option 1 $21,137.94 $253,655 8.05%

option 2 $23,251.74 $279,021 8.86%

option 3 $25,576.91 $306,923 9.74%

option 4 $28,134.60 $337,615 10.72%

PROPERTY DETAILS

property name: wendy's

property address:2120 n. woodlawn street

wichita, ks 67208

county: sedgwick

year built: 1982/2000

gross leasable area (gla): approx. 2,759 sf

lot size: approx. 36,155 sf (0.83 acres)

prototype update remodel:to commence within 2 years of

closing

WENDY’S MARKET SUMMARY

WENDY’S // 22

WICHITA MARKET OVERVIEW

Wichita, Kansas has been nationally ranked #1 as “The Best City for Homeownership” and “Best City to Raise a Family”. One of the fastest growing communities in Kansas for the last 10 years, Wichita has seen its population explode with a growth rate of 90% since 2000. The population of Wichita is approximately 389,965 with average incomes exceeding $99,700/year.

Wichita, the largest city in Kansas, is the county seat of Sedgwick County. Major highways, including the Kansas Turnpike, US 400 and Interstate I-135, link the city with a large trade area that encompasses a population of more than one million people within a 100-mile radius.

Wichita was originally known for being a cradle of beef and agriculture production, but has since become a home to numerous service providers to the regions many oil companies, manufacturering and logistic facilities and widely recognized as the “Air Capital of the World”. The Wichita area has been a leading producer of general aviation and commercial aircraft and is home to several aviation manufacturers and support facilities including Beechcraft, Cessna, Learjet, Spirit Aerosystems and Airbus.

The material contained in this Investment Offering Brochure is furnished solely for the purpose of considering the purchase of enclosed property and is not

to be used for any other purposes. This information should not, under any circumstances, be photocopied or disclosed to any third party without written

consent of The Woodmont Company or Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property.

The only party authorized to represent the Property Owner (“Owner”) in connection with the sale of the Property is The Woodmont Company, and no other

person is authorized by the Owner to provide any information or to make any representations other than contained in this Investment Offering Brochure.

If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to The Woodmont

Company.

Neither The Woodmont Company nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the

information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future performance of

the Property. This Offering Brochure may include certain statements and estimates by The Woodmont Company with respect to the projected future

performance of the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be

achieved. Further, The Woodmont Company and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained

in or omitted from this Investment Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The

recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate

Purchase and Sale Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these

materials shall not look to Owner or The Woodmont Company, nor any of their officers, employees, representatives, independent contractors, or affiliates,

for the accuracy or completeness thereof. Recipients of the Investment Offering Brochure are advised and encouraged to conduct their own comprehensive

review and analysis of the Property.

This Investment Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole

discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate discussions

with any entity at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Investment Offering

Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms

acceptable to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and

agreed to release Owner and The Woodmont Company from any liability with respect hereto.

WENDY’S // 23

CONFIDENTIALITY & DISCLOSURE

EXC LUSIVELY OFFERED BY:

WWW.WO ODMON T.C OM

corporate office2100 W. 7th Street

Fort Worth, Texas 76107

817.732.4000

trip greenSr. Vice President - Investment Sales

817.377.7763

[email protected]

dallas office16633 N. Dallas Pkwy, Suite 320

Addison, Texas 75001

214.824.6091

newport beach office620 Newport Center Dr, Suite 1100

Newport Beach, California 92660

949.698.1520

grant garyPresident - Brokerage Services

817.377.7755

[email protected]

Documents

WENDY’S EXECUTIVE SUMMARY - woodmont.com · Wendy’s is the #2 hamburger chain in the US and has approximately 6,500 locations in the United States and 29 countries worldwide with