Single Tenant ___________
ABSOLUTE NNN
INVESTMENT OPPORTUNITY
REPRESENTATIVE PHOTO
OUTPARCEL TO
SAN ANTONIO, TEXAS
RAISING CANE’S | SAN ANTONIO, TEXAS
TABLE OF CONTENTS | 2
TABLE OF CONTENTS INVESTMENT SUMMARY..........................3
REPRESENTATIVE PHOTO
HIGHLIGHTS...........................................4 PROPERTY DESCRIPTION........................5 AERIAL VIEW & SITE PLAN......................6 AREA OVERVIEW................................... 10 RENT ROLL........................................... 11 EXCLUSIVELY MARKETED BY MATTHEW MOUSAVI | Managing Principal SRS National Net Lease Group 610 Newport Center Drive, Suite 400 | Newport Beach, CA 92660 DL: 949.698.1116 | M: 714.404.8849
PATRICK R. LUTHER, CCIM | Managing Principal SRS National Net Lease Group 610 Newport Center Drive, Suite 400 | Newport Beach, CA 92660 DL: 949.698.1115 | M: 480.221.4221
[email protected] | License No. 01732226
[email protected] | License No. 01209944
RYAN JOHNSON | Senior Vice President 8343 Douglas Avenue, Suite 200 | Dallas, TX 75225 DL: 214.560.3285
[email protected] | | License No. 525292
MARK REEDER | EVP & Market Leader 8343 Douglas Avenue, Suite 200 | Dallas, TX 75225 DL: 214.560.3251
[email protected] | License No. 318755
KYLE STONIS, CCIM | Senior Vice President 3400 Peachtree Road NE, Suite 1100 | Atlanta Georgia 30326 DL: 678.420.1393
[email protected] | License No. 73438
JOHN TOPPING | Associate 3400 Peachtree Road NE, Suite 1100 | Atlanta Georgia 30326 DL: 678-420-1384
[email protected] | License No. 354999
This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.
RAISING CANE’S | SAN ANTONIO, TEXAS
INVESTMENT SUMMARY | 3 OFFERING Pricing: $2,700,000 Net Operating Income: $135,000 Cap Rate: 5.00% Guaranty: Corporate Lease Type: Absolute NNN Landlord Responsibilities: None PROPERTY SPECIFICATIONS Rentable Area: Land Area: Property Address: Year Built / Remodeled: Parcel Number: Ownership:
3,575 SF 0.92 Acres 17158 La Cantera Pkwy, San Antonio, TX 78257 2016 1237405 Ground Lease (Land Ownership)
RAISING CANE’S - SAN ANTONIO, TX
REPRESENTATIVE PHOTO
SRS National Net Lease Group is offering the opportunity to acquire the ground lease interest (land ownership) in a freestanding, corporate guaranteed, absolute net leased, single tenant, Raising Cane’s located in San Antonio, TX. The Raising Cane’s is strategically positioned as an outparcel to Target at The RIM shopping center (1.8MM SF). The tenant, Raising Cane’s Restaurants, L.L.C., recently signed a brand new 15-year lease, featuring 10% rental increases in year 11 & the first three option periods and 15% increases during the fourth and fifth option periods, which generates steady NOI growth and hedges against inflation. The Raising Cane’s is ideally located at the signalized, hard corner intersection of Vance Jackson Road & La Cantera Parkway (19,200 VPD) with excellent visibility. Additionally, it is located near Interstate 10 (106,000 VPD) with direct on/off-ramp access. The subject property is an outparcel to Target at The RIM shopping center (1.8MM SF), anchored by many other national/credit tenants including Lowe’s, Dick’s Sporting Goods, Nordstrom Rack, PetSmart, TJ Maxx, Cost Plus World Market, and more. The Raising Cane’s is poised to capture market demand at the southern portion of the RIM, an area with a low supply of restaurants. There are more than 135,500 residents with an average household income of $108,000 within 5 miles of the property. Moreover, the trade area is supported by more than 24,200 employees within a 5-mile radius.
RAISING CANE’S | SAN ANTONIO, TEXAS
HIGHLIGHTS | 4
CORPORATE GUARANTEED, LONG-TERM GROUND LEASE WITH RENTAL INCREASES
NEAR UNIVERSITY OF TEXAS, SAN ANTONIO & SIX FLAGS FIESTA TEXAS
• Brand new 15-year corporate guaranteed lease
• The University of Texas at San Antonio with over 30,000 students is less than 3 miles away
• 10% rental increases in year 11 and at the beginning of the first three option periods • 15% rental increases at the beginning of the fourth and fifth option period
• Approximately six million attendees visit Six Flags Fiesta Texas annually HEAVILY TRAFFICKED TRADE AREA / LOCATED NEAR INTERSTATE 10 • Located near Interstate 10 (106,000 VPD) with direct on/off-ramp access
ABSOLUTE NNN LEASE / LAND OWNERSHIP / ZERO RESPONSIBILITIES
• The combination of education, retail, and attractions draws in a high volume of consumers
• Tenant pays for all CAM, insurance, taxes, and maintains all aspects of the building • No landlord responsibilities
DRIVE-THRU BUILDING / HARD CORNER, SIGNALIZED INTERSECTION / PREMIUM LOCATION
• Ideal, management-free investment for an out of state, passive investor
• Drive-thru feature provides ease and convenience for customers
OUTPARCEL TO TARGET / WITHIN THE RIM SHOPPING CENTER (1.8MM SF)
• On average, drive-thru locations have higher sales than those without
• Outparcel to Target, Best Buy, Ross Dress For Less, Cost Plus World Market, and more
• At the signalized, hard corner intersection of La Cantera Parkway & Vance Jackson Road (19,200 VPD) with excellent street frontage, access, and visibility
• The Raising Cane’s is located at the The RIM shopping center anchored by PetSmart, TJ Maxx, Nordstrom Rack, Dick’s Sporting Goods, Lowe’s, Lifetime Fitness, and more
• Brand new building with high quality 2016 construction
• Near The Shops At La Cantera that is anchored by Macy’s, Dillard’s, Nordstrom, and more
• Raising Cane’s is poised to capture market demand by catering to consumers shopping at stores along the southern portion of The RIM, an area with limited restaurant options
• Excellent strong tenant synergy with high crossover traffic
AFFLUENT TRADE AREA / STRONG DEMOGRAPHICS WITHIN 5 MILES • Over 135,500 residents with an average household income of $108,000
REPRESENTATIVE PHOTO
• Over 24,200 employees support the trade area
RAISING CANE’S | SAN ANTONIO, TEXAS
PROPERTY DESCRIPTION | 5
PROPERTY DESCRIPTION PARCEL Parcel: 1175875
Acres: 0.92
Square Feet: 47,912 SF
PROPERTY USE DESCRIPTION Commercial PAD
ACCESS There are a total of two access points with one (1) along La Cantera Parkway and one (1) along Vance Jackson Road.
TRAFFIC COUNTS La Cantera Parkway:..............................................................................................................................19,200 Interstate 10:.....................................................................................................................................106,000
IMPROVEMENTS There is approximately 3,575 SF of existing building area. PARKING
REPRESENTATIVE PHOTO
There are approximately 52 parking spaces on the owned parcel. The parking ratio is approximately 14.55 per 1,000 SF of leasable area.
YEAR BUILT 2016
RAISING CANE’S | SAN ANTONIO, TEXAS
AERIAL VIEW | 6
RAISING CANE’S | SAN ANTONIO, TEXAS
AERIAL VIEW | 7
RAISING CANE’S | SAN ANTONIO, TEXAS
LOCATION MAP | 8 2015 Estimated Population 1 Mile........................................... 36,517 3 Mile......................................... 135,497
2015 Average Household Income 1 Mile......................................... $97,168 3 Mile....................................... $107,932 AUSTIN
2015 Estimated Total Employees 1 Mile........................................... 39,758 3 Mile........................................... 75,747
HOUSTON
SAN ANTONIO
0
25
50
RAISING CANE’S | SAN ANTONIO, TEXAS
SITE PLAN | 9 La Cantera Pkwy. - 19,200 VPD
Vane Jackson Rd.
Drive Thru
RAISING CANE’S | SAN ANTONIO, TEXAS
AREA OVERVIEWS | 10
CITY OF SAN ANTONIO
DEMOGRAPHICS
San Antonio is the 7th most populated city in the United States of America and the 2nd most populated city in the state of Texas, with a population of 1,409,019. San Antonio serves as the seat of Bexar County. It was the fastest growing of the top 10 largest cities in the United States from 2000 to 2010. San Antonio’s economy is focused primarily within military, health care, government civil service, financial services, oil and gas and tourism sectors. Within the past twenty years, San Antonio has become a significant location for American-based call centers and has added a significant manufacturing sector centered around automobiles. San Antonio has a diversified economy with about a $96.8 billion metropolitan Gross Domestic Product. In 2015, San Antonio ranked No. 50 on Forbes’ list of the Best Places for Business and Careers, with a ranking of 15th best market for job growth.
DISTANCE TO POINTS OF INTEREST
1 MILE
3 MILES
Six Flags Fiesta Texas
University of Texas at San Antonio
11 MILES
14 MILES
San Antonio International Airport
Adjacent
Adjacent
SeaWorld San Antonio
Adjacent
1 Mile
1 Mile
3 Miles
5 Miles
2015 Estimated Population 2020 Projected Population 2010 Census Population 2000 Census Population Projected Annual Growth 2015 to 2020 Historical Annual Growth 2010 to 2015
545 723 15 2 5.82% 98.24%
36,517 41,736 30,141 15,223 2.71% 3.72%
135,497 148,414 122,246 80,264 1.84% 1.98%
2015 Estimated Households 2020 Projected Households 2010 Census Households 2000 Census Households Projected Annual Growth 2015 to 2020 Historical Annual Growth 2010 to 2015
317 423 8 1 5.94% 101.55%
14,649 17,073 11,711 6,197 3.11% 4.36%
53,676 59,275 47,695 30,627 2.00% 2.28%
82.20% 3.12% 4.22% 0.73% 5.50% 47.34%
71.56% 6.88% 8.49% 0.58% 8.19% 37.42%
77.02% 4.83% 6.70% 0.50% 7.11% 40.18%
2015 Estimated White 2015 Estimated Black or African American 2015 Estimated Asian or Pacific Islander 2015 Estimated American Indian or Native Alaskan 2015 Estimated Other Races 2015 Estimated Hispanic 2015 Estimated Average Household Income 2015 Estimated Median Household Income 2015 Estimated Per Capita Income 2015 Estimated Total Businesses 2015 Estimated Total Employees
$145,597 $109,295 $83,058 182 4,831
$97,168 $107,932 $71,806 $80,008 $40,344 $43,505 1,691 39,758
4,284 75,747
RAISING CANE’S | SAN ANTONIO, TEXAS
RENT ROLL | 11
Raising Cane’s Raising Cane’s Chicken Fingers is a fast-food restaurant chain founded in Baton Rouge, Louisiana by Todd Graves and Craig Silvey on August 26, 1996. Located mostly in Southern states, about 50 of the restaurants are company owned while the rest are franchised. It offers chicken fingers as its only main course. Its total revenue in 2007 was $97.3 million. Its headquarters remains in Louisiana though the company opened a second restaurant support office in Plano, Texas in 2009. Tenant Name
Square Feet
Lease Start
Lease End
Begin
Monthly
Annually
Recovery Type
Options: 5 (5-year)
Raising Cane’s
3,575
TBD
15 Years
Current
$11,250
$135,000
NNN
Option 1: $163,350/Yr
(corporate)
Year 11
$12,375 $148,500 Option 2: $179,685/Yr
Option 3: $197,654/Yr
Option 4: $227,302/Yr
Option 5: $261,397/Yr
FINANCIAL INFORMATION
REPRESENTATIVE PHOTO
Price:................................................................................................................$2,700,000 Net Operating Income:.......................................................................................... $135,000 Cap Rate:..................................................................................................................5.00% Lease Type:.......................................................................................................Absolute NNN PROPERTY SPECIFICATIONS Address:................................................... 17158 LA CANTERA PKWY, SAN ANTONIO, TX 78257 Year Built:................................................................................................................... 2016 Land Area:........................................................................................................... 0.92 Acres Parcel Number:...................................................................................................... 1237405
REPRESENTATIVE PHOTO