BOJANGLES’ - LoopNet...Bojangles Famous Chicken n Biscuits is an American regional chain of fast...

ISAAC | BAILEY

BOJANGLES’1278 E MAIN STREET

ROCK HILL, SC 29730

OFFERING MEMORANDUM

C O N T A C T S

DREW ISAACSenior Vice President Investments

[email protected]

KAITLIN O’MALLEYDirector of Operations

[email protected]

KENDALL KLINEMarketing Coordinator

[email protected]

NIKKI BRITAMarketing & Operations Associate

[email protected]

BRIAN BAILEYVice President Investments

[email protected]

Broker of Record: Ben Yelm #86628

E MAIN STREET

E MAIN STREET

(27,900 VPD)

(27,900 VPD)

S AN

DERSO

N RD

S AN

DERSO

N RD

BELLEVIEW SQUAREBELLEVIEW SQUARE

BELLEVIEWBELLEVIEWELEMENTARY ELEMENTARY

WALGREENSWALGREENS

PHOENIX ACADEMYPHOENIX ACADEMY RAVEN ACADEMYRAVEN ACADEMY

ADULT & COMMUNITYADULT & COMMUNITYEDUCATIONEDUCATION

RENAISSANCERENAISSANCEACADEMYACADEMY

BOYS & GIRLS CLUBBOYS & GIRLS CLUB MCDONALD’S MCDONALD’S

ROCK HILLROCK HILLWATERWATER

DEPARTMENT DEPARTMENT

FIRETOWER ROAD

FIRETOWER ROAD

E WHITE STE WHITE ST

WALGREENSWALGREENS

BELLEVIEWBELLEVIEWELEMENTARY ELEMENTARY

E MAIN STREET

E MAIN STREET

(27,900 VPD)

(27,900 VPD) FIRE TOWER ROADFIRE TOWER ROAD

ROCK HILLROCK HILLWATERWATER

DEPARTMENT DEPARTMENT

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 and bears all risk for any inaccuracies. Any projection, opinions, assumptions, or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Incorporated © 2020 Marcus & Millichap.

OFFERINGSUMMARY

1278 E MAIN STREETROCK HILL, SC 29730

RECENTLY EXTENDED LEASE, 11.5 YEARS REMAININGThe lease was set to expire in 2021, but the Tenant recently extended the lease through 2031, demonstrating commitment to the site.

ABSOLUTE TRIPLE NET (NNN) LEASE, CORPORATE GUARANTEETenant is responsible for all expenses related to the property including capital repairs. The tenant has three, five-year options to renew with 10% rent increases every five years. The lease is guaranteed by Bojangles’ Restaurant Inc.

HARD CORNER LOCATION SITUATED ON MAIN STREETLocated at 1278 E Main Street, the property benefits from its location in a dense retail corridor, surrounded by many national retailers including McDonald’s, Dollar General, Food Lion, Autozone, Enterprise, U-Haul, O’Reilly Auto Parts, and more. The property is highly visible on E Main and Firetowner road, with easy entry and egress.

25 MILES SOUTHEAST OF CHARLOTTE, NCThis Bojangles’ location is located 25 miles southeast of Charlotte, North Carolina, just west of I-77 on Main Street. The subject property has a population of over 400,000 people within a 15-mile radius.

INVESTMENTHIGHLIGHTS

PRICE

$2,035,000

NOI

$114,727

CAP RATE

5.64%

BUILDING SF

2,984

BUILDING AC

1.00

VERY LOW RENT TO SALES RATIOThe store reported sales of $2,641,828.01 in 2017, $2,739,335.14 in 2018, and $2,798,961.74 in 2019, resulting in a 4.10% rent to sales ratio, showing high performance at the store.

LEASE OVERV IEW


PROPERTY NAME BOJANGLES’

ADDRESS, CITY, STATE, ZIP 1278 E MAIN STREET ROCK HILL, SC 29730

INITIAL LEASE TERM 10 YEARS

RENT COMMENCEMENT DATE 08/31/1990

EXPIRATION DATE 12/20/2031

LEASE TERM REMAINING 11.5 YEARS

BOJANGLES’ - ROCK HILL, SC

START DATE MONTHLY RENT ANNUALIZED RENT RENT/SF

3/27/2020 - 3/31/2025 $9,561 $114,727 $38.45

4/1/2025 - 3/31/2030 $10,517 $126,200 $42.29

4/1/2030 - 12/31/2031 $11,568 $138,820 $46.52

Option 1 (5 Years) $11,568 $138,820 $46.52

Option 2 (5 Years) $12,725 $152,702 $51.17

Option 3 (5 Years) $13,998 $167,972 $56.29

LOT SIZE 1.00 AC

LEASED SF 2,984 SF

LEASE TYPE ABSOLUTE TRIPLE NET (NNN)

RENT INCREASES 10% EVERY 5 YEARS

OPTIONS TO RENEW 3 x 5-YEAR OPTIONS

LEASE GUARANTOR CORPORATE

B O J A N G L E S ’T E N A N T O V E R V I E W


Bojangles’ Famous Chicken ‘n Biscuits is an American regional chain of fast food restaurants, specializing in cajun-seasoned

fried chicken and buttermilk biscuits that primarily serves the Southeastern United States. Bojangles’ is known for their concept

of their food on three attributes: distinctive flavor, high-quality products made from scratch, and a festive restaurant design

with friendly service. In 2014, Bojangles’ opened up their 600th restaurant, and since then they have expanded to more than 750+

locations (440 franchised and 319 company owned). Most of their locations are in North and South Carolina, but have locations

in 11 other states as well. In May 2015, Bojangels’ went public on the NASDAQ, stating that Investors love Bojangles’ just as much

as Southerners do, and in 2017, Bojangles’ celebrated 40 years of being in business. On January 28, 2019, Bojangles’ was acquired

by the Jordan Company and Durational Capital Management, making Bojangles’ a privately-held company. Later that year, in

December of 2019, Bojangles’ and Love’s Travel Stops and Country Stores came to an agreement to add 40 Bojangles’ locations

at Love’s Travel Stops in Illinois, Oklahoma, Arkansas, and Mississippi, all new states for Bojangles, over the next ten years.

https://en.wikipedia.org/wiki/Bojangles%27_Famous_Chicken_%27n_Biscuits

https://www.bojangles.com/about-us/history/

R O C K H I L L , S CL O C A T I O N O V E R V I E W


Rock Hill, South Carolina is the largest city in York County and the only major South Carolina city in the Charlotte area. Rock Hill is the fifth largest city in the state of South Carolina, encompassing over 36 square miles. As of 2019, the population of Rock Hill was over 75,000 people, seeing a 8.2% increase in growth over the last ten years. Several universities can attribute to the growth Rock Hill has seen over the years and those include Winthrop University, York Technical College, and Clinton Jr. College. Rock Hill is approximately 25 miles south of Charlotte and 70 miles north of Columbia.

https://www.govtech.com/fs/infrastructure/One-Man-Could-Change-Charlotte-NCs-Infrastructure-Transit-Future.html

https://www.visityorkcounty.com/things-to-do/shopping/galleria/

https://www.youvisit.com/tour/yorktech

D E M O G R A P H I C S


% WHITE POPULATION 46.73% 45.18% 55.24%

% BLACK POPULATION 44.85% 47.76% 36.14%

% ASIAN 1.65% 1.58% 2.03%

% AMERICAN INDIAN, ESKIMO, ALEUT 0.82% 0.66% 0.81%

% HAWAIIAN OR PACIFIC ISLANDER 0.01% 0.05% 0.08%

% MULTI-RACE 3.62% 2.41% 2.49%

% HISPANIC 5.12% 5.08% 6.82%

% OTHER POPULATION 2.32% 2.35% 3.20%

% MALE POPULATION 46.18% 45.64% 46.50%

% FEMALE POPULATION 53.82% 54.36% 53.50%

P O P U L A T I O N B Y R A C E 1 M I LE 3 M I LES 5 M I LES

2019 EST. AVERAGE HOUSEHOLD INCOME $50,307 $57,780 $70,554

2019 EST. MEDIAN HOUSEHOLD INCOME $36,801 $41,958 $51,597

2019 EST. PER CAPITA INCOME $21,489 $22,774 $28,228

H O U S E H O L D S B Y I N C O M E 1 M I LE 3 M I LES 5 M I LES

H O U S E H O L D S 1 M I LE 3 M I LES 5 M I LES

2024 PROJECTION 2,260 15,804 36,900

2019 ESTIMATE 2,175 14,900 34,480

GROWTH 2019 - 2024 3.93% 6.06% 7.02%

2000 CENSUS 1,785 11,678 24,326

2010 CENSUS 2,007 13,332 30,516

GROWTH 2000 - 2010 12.42% 14.16% 25.45%

P O P U L A T I O N

2024 PROJECTION 5,230 40,673 92,277

2019 ESTIMATE 5,091 38,985 87,359

GROWTH 2019 - 2024 2.72% 4.33% 5.63%

2000 CENSUS 4,349 31,810 64,374

2010 CENSUS 4,701 35,222 77,765

GROWTH 2000 - 2010 8.10% 10.72% 20.80%

1 M I LE 3 M I LES 5 M I LES

$57,780Average Household Income

(3-Mile Radius)

33.0Median Age

(3-Mile Radius)

55,372Daytime Population

(3-Mile Radius)

BOJANGLES’ - ROCK HILL, SC

O C C U P I E D U N I T S 1 M I LE 3 M I LES 5 M I LES

2019 OCCUPIED UNITS 2,355 16,538 37,568

OWNER OCCUPIED 1,040 7,337 18,663

RENTER OCCUPIED 1,134 7,563 15,817

VACANT 180 1,637 3,089

2010 AVERAGE PERSONS PER HH 2.47 2.46 2.44

C O N F I D E N T I A L I T Y& D I S C L A I M E R N O T I C E


NON-DISCLOSURE NOTICEThe information contained in the following marketing package is proprietary and strictly confidential. It is intended to be reviewed by only the party receiving it from Marcus & Millichap Real Estate Investment Services and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This marketing package 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 package 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.

NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’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.

DO NOT CONTACT TENANTAll property showings are by appointment with the listing broker or landlord only. Under no circumstances, should any prospective purchaser or related entity contact the tenant or any of the employees at these stores. Recipients of this marketing package acknowledge that such contact may damage the tenant’s operation which would impair the financial results. Landlord reserves the right to seek legal redress for any damage that may occur from such interference with landlord’s relationship with tenant.

SPECIAL COVID-19 NOTICEAll potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)

NET LEASE DISCLAIMERMarcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this marketing package 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 package 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 package 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 for 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 package, 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.

ISAAC | BAILEY

BOJANGLES’1278 E MAIN STREET

ROCK HILL, SC 29730

OFFERING MEMORANDUM

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