Carl's Jr. 7249 Bandera Road, San Antonio, TXCarl's Jr. 7249 Bandera Road, San Antonio, TX Author:...

C a r l ’ s J r . , S a n A n t o n i o , T X | 1

CARL’S JR.7249 BANDERA ROAD | SAN ANTONIO, TX

OFFERING MEMORANDUM

™

2 | O f f e r i n g M e m o r a n d u m™

™

EXCLUSIVELY LISTED BYALEX HARROLDAssociate

[email protected] 310.919.5790MOB 310.977.1651LIC # 02009656 (CA)

CONTENT

GARY CHOUFVP & Senior Director


KYLE MATTHEWSBROKER OF RECORDLIC # 678067 (TX)

04 INVESTMENT SUMMARY

06 FINANCIALS

07 TENANT OVERVIEW

08 PROPERTY DETAILS

1 0 AREA OVERVIEW

WESLEY CONNOLLY, MBASenior Associate

wesley.connol [email protected] 949.432.4512MOB 707.477.7185LIC # 01962332 (CA)

4 | O f f e r i n g M e m o r a n d u m

LONG TERM STABILIZED INVESTMENT

• Long Term Lease – There are 11 years remaining on an original 20-year lease with Four (4), Five (5) year options to extend

• Strong Guarantee – StarCorp LLC is an experienced 145-unit franchisee of Hardee’s and Carl’s Jr. This lease is backed by StarCorp CJ LLC – 77 Carl’s Jr. units

• Hedge Against Inflation – There are 5% increases in rent every 5 years allowing the property to keep up with rising market rents

• Absolute NNN Lease – Landlord has zero landlord responsibilities because the tenant takes care of insurance, real estate taxes, and maintenance

• Newer Construction Building – Most Recent Prototype

STRONG LOCATION

• Signalized Hard Corner – Located on the signalized hard corner of a well trafficked area seeing approximately 79,000 ADT and receives excellent visibility from passing traffic

• Strong Demographics – Population of ± 364,000 and average household income of ± $69,000 within a 5-mile radius and ± 8.5% projected growth over the next 5 years

• San Antonio, TX – 7th most populated city in the United States and the 2nd most populated city in the state of Texas with a population of ± 1,500,000. This property is located 13 miles from downtown

• Attractive Retail Corridor – Neighboring many national tenants including a Walmart Supercenter, Starbucks, Jack in the Box, McDonald’s, Raising Cane’s, Whataburger, Taco Bell, KFC, Dairy Queen, Arby’s, Dunkin’ Donuts, Burger King, KFC, Wendy’s and many more

INVESTMENT HIGHLIGHTS

INVESTMENT SUMMARY


CARL’S JR.7249 Bandera RoadSan Antonio, TX 78238

List Price .................................................................................................. $2,419,200

CAP Rate - Current ..........................................................................................6.25%

Gross Leasable Area ............................................................................... ± 2,911 SF

Lot Size ................................................................................................... ± 1.17 Acres

Year Built ............................................................................................................. 2009

Annualized Operating DataMonthly Rent Annual Rent Rent/SF

3/28/2013 - 3/27/2018 $12,000.00 $144,000 $49.47

3/28/2018 - 3/27/2023 $12,600.00 $151,200 $51.94

3/28/2023 - 3/27/2028 $13,230.00 $158,760 $54.54

*Pricing based off of rent increase in 2018.

Tenant Summary

Tenant Trade Name Carl’s Jr.

Type of Ownership Fee Simple

Lease Guarantor StarCorp CJ, LLC (77 Units)

Lease Type Absolute NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date 3/28/2008

Lease Expiration Date 3/27/2028

Term Remaining on Lease ± 11 Years

Increases 5% Increases Every Five (5) Years

Options Four, 5-Year Options

Right of First Refusal Yes

Debt Quote

Loan Amount $1,693,000

LTV 70%

Term 10 Years

Amortization 25 Years

Rate 4.5%

Loan quote provided by Barrington Capital based on market conditions at this time. Actual rates and terms will vary based on market conditions at closing. Please contact Matt Marlin or Ben Townsend at the information below:

Matt Marlin: (949) 777-5991 or [email protected] Townsend: (949) 777-5983 or [email protected]

FINANCIALS


Car l ’ s J r .Carl’s Jr. is an American-based fast food restaurant chain operated by CKE Restaurants Holdings, Inc., with locations primarily in the Western and Southwestern United States. In the spirit of the company’s founder, Carl Karcher, CKE believes it can best share in its success by offering support to its neighbors through its scholarship and charitable giving programs, including the Stars for Heroes campaign which raised $1 Million in 2011. CKE is also working toward greater sustainability with the help of company-wide initiatives, including the corporate Green Team.

STRATEGYWith over 3,600 total CKE franchised and company owned restaurants, and more than 1,500 Carl’s Jr. specific, CKE Restaurants Holdings, Inc. is dedicated to helping franchisees build growing restaurant operations that are sustainable for the long term. To this end, the strategy and core positioning of the Carl’s Jr. banner is oriented to building top-line sales that support franchise profitability via premium product strategy, strong restaurant fundamentals, and cutting-edge advertising. With best-in-class menus, innovative systems, and outstanding brand recognition, the company is poised for sustained growth around the world.

GEOGRAPHIC REACHAs of March 2016, CKE has a total of 3,664 franchised or company-operated restaurants in 44 states and 38 foreign countries and U.S. territories. Carl’s Jr. has announced plans to expand in Ontario, Canada’s “Golden Horseshoe,” a territory that includes Toronto, Mississauga, Oakville, Burlington, Hamilton, Brantford and London.

Company Name Carl’s Jr.

Parent Company Trade Name CKE Restaurants Holdings, Inc.

Ownership Private

No. of Locations ± 1,500

No. of Employees (All) ± 23,000

Headquartered Carpinteria, California

Website www.carlsjr.com

Year Founded 1941

TENANT OVERVIEW


Oceanside Blvd ± 31,792

PARCEL MAP

THE OFFERING

Property Name Carl’s Jr.

Property Address 7249 Bandera Road

San Antonio, TX 78238

Assessor’s Parcel Number 04446-007-0390

Site DescriptionNumber of Stories One

Year Built 2009

Gross Leasable Area (GLA) ± 2,911 SF

Lot Size ± 1.17 Acres (50,965 SF)

Type of Ownership Fee Simple

Parking ± 35 Surface Spaces

Parking Ratio 4.47 : 1,000 SF

Landscaping Professional

Topography Generally Level

ConstructionFoundation Concrete Slab

Framing Wood

Exterior Masonry

Parking Surface Asphalt

Roof Flat

PROPERTY DETAILS

HOUSEHOLDS 1-Mile 3-Mile 5-Mile

2022 Projection 3,704 56,269 154,759

2017 Estimate 3,462 51,899 142,187

Growth 2017 - 2022 6.98% 8.42% 8.84%

INCOME 1-Mile 3-Mile 5-Mile

2017 Est. Average Household Income

$73,706 $72,036 $69,516

PROPERTY DEMOGRAPHICS

POPULATION 1-Mile 3-Mile 5-Mile

2022 Projection 9,328 138,659 395,157

2017 Estimate 8,768 128,663 364,221

Growth 2017 - 2022 6.39% 7.77% 8.49%

Growth 2010 - 2017 6.75% 10.07% 11.85%

BAN

DERA

ROA

D ± 57,000 A

DT

ECKHERT ROAD

± 22,000 ADT


SURROUNDING TENANTS

1 0 | O f f e r i n g M e m o r a n d u m

Placed perfectly in the heart of Texas Hill Country straddling South Texas and Central Texas, San Antonio is the second-most populous city in the state of Texas. A city on the rise, San Antonio is in the center of a booming corridor with many business-friendly elements. San Antonio’s historically steady population growth has established a local market of 2.3 million residents, one that is projected to increase by 28% in the coming future. Moreover, there is an increasing population of young professionals flocking to central San Antonio, enticed by areas such as Pearl Brewery, Alamo Heights and downtown, which offer an urban lifestyle with endless shopping, nightlife, cultural, fine dining and employment opportunities.

SAN ANTONIO, TX

AREA OVERVIEW

1,468,9132017 EST. POPULATION

7.47%PROJ. POPULATION GROWTH 2017-2022

580,5692017 EST. HOUSEHOLDS

8.13%PROJ. HOUSEHOLD GROWTH 2017-2022

CITY DEMOGRAPHICS

C a r l ’ s J r . , S a n A n t o n i o , T X | 1 1

San Antonio exudes a distinct combination of metropolitan energy and small-town charm; Its laid-back character brings a welcome contrast to its substantial business community. Having acquired one of the largest concentrations of military bases in the country, the city has also become known as Military City, USA. For over a hundred years, a consistent and significant military presence has shaped San Antonio’s identity and brought stability to the local economy.

The region’s spirit expands beyond its tourist labels, creating a community rich in Hispanic and Old West heritage. Home to two of Texas’ most popular destinations, the River Walk and the Alamo, San Antonio’s rich, cultural history attracts over 32 million annual visitors. The city’s historic sites are intermingled with modern skyscrapers in downtown, including the Alamo and the Spanish Governor’s Palace. Meanwhile, the River Walk is an oasis of cypress-lined paved paths and arch stone bridges that winds through the city center. Lined with shops and sidewalk cafes along the San Antonio River, the River Walk offers easy access to San Antonio’s Main Plaza. Connecting San Antonio to its past, while paving its path to the future, the River Walk is truly the heart and soul of the city.

1 2 | O f f e r i n g M e m o r a n d u m

San Antonio has achieved staying power as one of the most attractive environments for business in the United States with its diverse and robust economy. Recognizing its many advantages, six Fortune 500 companies – Valero Energy Corp, Tesoro Corp, USAA, Clear Channel Communications, NuStar Energy and CST Brands, Inc. – have established their headquarters in San Antonio in addition to H-E-B. Meanwhile, ten miles northwest of San Antonio’s downtown, the South Texas Medical Center, which is the only medical research and care provider in the South Texas region, is a conglomerate of various hospitals, clinics, and research and higher educational institutions.

The city’s economy is primarily comprised of the military, health care, government civil service, financial services, oil and gas, and tourism sectors. Over the past two decades, San Antonio has become a significant location for American-based call centers and has added a significant manufacturing sector centered around automobiles. Future job growth projections are strong, combining with the steadily declining unemployment rate and other business elements to help cultivate a healthy business climate.

ECONOMIC SNAPSHOT

Arguably the most beautiful area in Texas, the Texas Hill Country is a 25-county region of Central and South Texas that extends from San Antonio to just north of Austin. Central to Texas, the Hill Country is considered the heart and soul of the state. With over 14,000 square miles of hills, lakes, live oak trees and winding roads, this region attracts millions of people each year, be it for a weekend getaway or a vacation.

Located deep in the heart of this uniquely charming area, the countryside is reminiscent of the wine growing regions of central Italy and the Rhone Valley in France. An array of visually stunning vineyards and wineries are scattered throughout the Hill Country, from downtown Austin to Fredericksburg and Lampasas to New Braunfels. Given that it is one of the fastest growing wine-producing regions in the country, the Hill Country has emerged as one of the top wine destinations in the world, drawing more than five million visitors each year to the Texas Hill Country Wineries.

TEXAS HILL COUNTRY

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Carl’s Jr. located at 7249 Bandera Road, San Antonio, TX 78238 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

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 S TAT E M E N T

11-2-2015

Information About Brokerage ServicesTexas law requires all real estate license holders to give the following informaƟon about

brokerage services to prospecƟve buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: .• A BROKER is responsible for all brokerage acƟviƟes, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary:

• Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen consent, appoint a different license holder associated with the broker to each party (owner and

buyer) to communicate with, provide opinions and advice to, and carry out the instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose:

ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng not to

disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacƟon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Regulated by the Texas Real Estate Commission

Buyer/Tenant/Seller/Landlord Initials

InformaƟon available at www.trec.texas.gov IABS 1-0

Date

Kyle Matthews/Matthews Retail Group Inc. 678067 [email protected] (310) 919-5757

Kyle Matthews 678067 [email protected] (310) 919-5757

C a r l ’ s J r . , S a n A n t o n i o , T X | 1 5

EXCLUSIVELY LISTED BYGARY CHOUFVP & National Director


ALEX HARROLDAssociate


CARL’S JR.7249 BANDERA ROAD | SAN ANTONIO, TX

™

KYLE MATTHEWSBROKER OF RECORD

LIC # 678067 (TX)

WESLEY CONNOLLY, MBAAssociate

wesley.connol [email protected] 949.432.4512MOB 707.477.7185LIC # 01962332 (CA)

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