RUBY CHOW'S 10 YEAR NNN LEASE · RUBY CHOW'S 10-YEAR NNN LEASE 620 Glen Iris Drive, Atlanta, GA ......

5755 North Point Parkway, Suite 262

Alpharetta, GA 30022

770.481.1960

www.shanegroup.net

RUBY CHOW'S

10-YEAR NNN LEASE

620 Glen Iris Drive, Atlanta, GA

5755 North Point Parkway, Suite 262

Alpharetta, GA 30022

770.481.1960

www.shanegroup.net

Ponce City Market Krog Street Market Atlanta Beltline (Ponce City in background) Ford Factory Lofts & Kroger

Located nearby these exciting developments...

http://www.shanegroup.net

http://www.shanegroup.net

620 Glen Iris Drive, Atlanta, GA 770.481.1960 | www.shanegroup.net

RUBY CHOW'S


RUBY CHOW'S

See accompanying Confidentiality Statement.

INVESTMENT SUMMARY

AERIAL MAPS

PONCE CITY MARKET

AREA DEVELOPMENT

PHOTOGRAPHS

TENANT INFO

RENTAL SURVEY

FINANCIAL SUMMARY

CASH FLOW

LEASE ABSTRACT

LOCATION MAPS

DEMOGRAPHICS

Ruby Chow’s is located directly east of downtown Atlanta, adjacent to the 2.1MM-square-foot Ponce City Market. It is within

walking distance to the Atlanta Beltline and will benefit from a tremendous population base. There are over 166,000 people within

3 miles and over 384,000 within 5 miles. Additionally, there is a daytime population of over 318,000 within 3 miles. The area is also

very affluent with an average household income from $85,000 to over $96,000. There are many nearby Atlanta landmarks

downtown, including Georgia Tech, Georgia State University, Mercedes Benz Stadium (home to the Atlanta Falcons and Atlanta

United), Philips Arena (home to the Atlanta Hawks), the Georgia Aquarium, the World of Coca-Cola, the College Football Hall of

Fame, the Georgia World Congress Center, and the Fox Theatre among many others.

This offering is a new, chef-driven concept by famed restaurateur and chef Guy Wong. This will be his fourth restaurant: Ruby

Chow's. Wong has executed a new 10-year NNN lease directly adjacent to the popular 2.1MM-square-foot Ponce City Market in

Atlanta, GA. The lease has 3% annual increases and potential upside through percentage rent with a very achievable breakpoint.

Rent is set at a conservative $30 PSF NNN in comparison to area rents that average $40 PSF NNN and higher, in a market with a

2.2% vacancy. Ruby Chow’s is located in a 3,179-square-foot retail condo unit at the corner of Glen Iris Drive and North Avenue

and is currently being built-out to open shortly.

New Chef-Driven Concept by Famed Chef Guy Wong

New 10-Year NNN Lease with 3% Annual Increases

Directly Adjacent to 2.1MM SF Ponce City Market

Potential for Percentage Rent; Achievable Breakpoint

Multiple Large Re-Developments in the Area; Over $1B

Recently Constructed, Planned, and Under Construction

$30 PSF Rent in a $40 PSF Market with Only 2% Vacancy

BUILDING: 3,179 SF | LAND: Retail Condo


RUBY CHOW'S


INVESTMENT SUMMARY

AERIAL MAPS

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LEASE ABSTRACT

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DEMOGRAPHICS

North Avenue

Ford

Factory

Lofts

360,000 SF

Mixed Use

2.1 Million SF Mixed Use

Multiple Retail Properties

$30-47/SF NNN Rent

$750M “Iconic”

Office Hotel Retail

(Planned)


RUBY CHOW'S


INVESTMENT SUMMARY

AERIAL MAPS

PONCE CITY MARKET

AREA DEVELOPMENT

PHOTOGRAPHS

TENANT INFO

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FINANCIAL SUMMARY

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LEASE ABSTRACT

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DEMOGRAPHICS

3 Mile Radius

166,486 Population

$96,813 Avg HH Income

318,162 Daytime Population

Downtown Atlanta

Midtown Atlanta

Piedmont Park

Virginia Highlands

Atlantic Station

Historic Fourth Ward

Inman Park


RUBY CHOW'S


INVESTMENT SUMMARY

AERIAL MAPS

PONCE CITY MARKET

AREA DEVELOPMENT

PHOTOGRAPHS

TENANT INFO

RENTAL SURVEY

FINANCIAL SUMMARY

CASH FLOW

LEASE ABSTRACT

LOCATION MAPS

DEMOGRAPHICS

Located directly adjacent to Ruby

Chow’s, Ponce City Market began to

open in 2014, located in the fully

renovated Sears, Roebuck & Company

building. The project is over 2.1MM SF

and restored its prominence as a vital

landmark in Atlanta’s burgeoning Old

Fourth Ward. Linked directly to the

Atlanta BeltLine, and situated across

from Historic Fourth Ward Park, the

iconic stretch of Ponce de Leon Avenue

is a major part of the redevelopment

movement at the crossroads of

Atlanta’s most established

neighborhoods. At the heart of Ponce

City Market is the marketplace itself, a

flexible space to gather, eat and shop.

In the Central Food Hall, artisan chefs

and local purveyors fill an authentic

market with the design, food, and

flavors of Atlanta. Retail shops and

offices add to the life, color, and culture

of Ponce City Market and surrounding

neighborhoods. Residents of the Flats

apartments in the upper floors of the

east and west wings are just a few steps

or an elevator ride from workplaces,

shopping, the Central Food Hall, and

direct access to the BeltLine.


RUBY CHOW'S


INVESTMENT SUMMARY

AERIAL MAPS

PONCE CITY MARKET

AREA DEVELOPMENT

PHOTOGRAPHS

TENANT INFO

RENTAL SURVEY

FINANCIAL SUMMARY

CASH FLOW

LEASE ABSTRACT

LOCATION MAPS

DEMOGRAPHICS

Ruby Chow’s is located near many other developments, including:

MIDTOWN PLACE: Approximately 250,000-square-foot shopping center. Anchored by Whole Foods, Home Depot, PetSmart,

and TJ Maxx. Midtown Place also contains over 36,000 square feet of shop space offering a well-balanced mix of retail, service and

restaurant uses.

THE BELTLINE: The Atlanta BeltLine is the most comprehensive transportation and economic development effort ever

undertaken in the City of Atlanta and among the largest, most wide-ranging urban redevelopment programs currently underway in

the United States. It will ultimately connect 45 intown neighborhoods via a 22-mile loop of multi-use trails, modern streetcar, and

parks—all based on railroad corridors that formerly encircled Atlanta. The plan includes a 22-mile transit system, 33-mile trail

network, 1,300 acres of new and 700 acres of restored greenspace, public art, historic preservation, 28,000 new and 5,600

affordable housing units, 30,000 permanent and 48,000 construction jobs, and up to $20 Billion in total projected economic

725 PONCE (BELTLINE KROGER / FORD FACTORY LOFTS): $140 million mixed-used renovation completed in 2016 that

includes a new 60,000-square-foot Kroger below 360,000 square feet of Class A loft office space.

KROG STREET MARKET: is a $70 million, 9-acre mixed-use development in Atlanta situated along the BeltLine. The complex,

remodeled from a 1920s warehouse, is centered on a 12,000-square-foot, west coast-style market with restaurants, and up to 300

apartments. It is a destination for Atlanta’s intown culture – those who are always searching for unique, specialty creations.

Krog Street Market Atlanta Beltline (Ponce City in background) Ford Factory Lofts & Kroger


RUBY CHOW'S


INVESTMENT SUMMARY

AERIAL MAPS

PONCE CITY MARKET

AREA DEVELOPMENT

PHOTOGRAPHS

TENANT INFO

RENTAL SURVEY

FINANCIAL SUMMARY

CASH FLOW

LEASE ABSTRACT

LOCATION MAPS

DEMOGRAPHICS


RUBY CHOW'S


INVESTMENT SUMMARY

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AREA DEVELOPMENT

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DEMOGRAPHICS

Hard Corner of North Avenue and Glen Iris Drive


RUBY CHOW'S


INVESTMENT SUMMARY

AERIAL MAPS

PONCE CITY MARKET

AREA DEVELOPMENT

PHOTOGRAPHS

TENANT INFO

RENTAL SURVEY

FINANCIAL SUMMARY

CASH FLOW

LEASE ABSTRACT

LOCATION MAPS

DEMOGRAPHICS


RUBY CHOW'S


INVESTMENT SUMMARY

AERIAL MAPS

PONCE CITY MARKET

AREA DEVELOPMENT

PHOTOGRAPHS

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LEASE ABSTRACT

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DEMOGRAPHICS

Miso Izakaya Chef Begins 2019 Announcing His New Old

Fourth Ward Restaurant

After closing Miso Izakaya last summer, Guy Wong to open a new restaurant across from City Winery

by Beth McKibben Jan 2, 2019, 7:41am EST

Miso Izakaya debuted during a time when the Atlanta dining scene was focused on transforming the city’s reputation and that of Southern food through its new restaurants. In a 2013 interview with Creative Loafing, Wong called Miso Izakaya “an R&D lab” for continuing to “try new things.”

The decision to close his flagship restaurant after a decade on Edgewood Avenue was difficult, but the lease was ending and Wong was unable to negotiate new terms with the landlord.

Wong also owns Vietnamese restaurant Le Fat in Westside and ramen shop Ton Ton and sushi kiosk Miso Ko

Le Fat and Ton Ton chef Guy Wong plans to open Ruby

Chow’s in the Old Fourth Ward some time in 2019. The

chef, who closed his pioneering Old Fourth Ward

restaurant Miso Izakaya last July, made the New Year’s

Day announcement on Instagram. A tipster with ties to

Atlanta real estate says Ruby Chow’s will take over the

former Repast space at the Ponce Springs Lofts on Glen

Iris Drive, across from Ponce City Market and City

Winery. That location — 620 Glen Iris Drive — is now

confirmed.

https://atlanta.eater.com/authors/beth-mckibben

https://creativeloafing.com/content-232444-Fresh-Look:-Miso-Izakaya

https://atlanta.eater.com/venue/le-fat

https://atlanta.eater.com/venue/ton-ton

https://atlanta.eater.com/2018/9/7/17831638/miso-ko-sushi-menu-ponce-city-market

https://atlanta.eater.com/venue/le-fat

https://atlanta.eater.com/venue/ton-ton

https://atlanta.eater.com/2018/7/11/17557854/miso-izakaya-closing

https://atlanta.eater.com/2018/7/11/17557854/miso-izakaya-closing

https://www.instagram.com/p/BsGOVJeAviVKB2ysMtuXKli4w6whL8eV5sEluE0/

https://atlanta.eater.com/2018/8/23/17772734/mihokos-method-bone-broth-opening-irwin-street

https://atlanta.eater.com/venue/ponce-city-market

https://atlanta.eater.com/venue/city-winery

https://atlanta.eater.com/venue/city-winery


RUBY CHOW'S


INVESTMENT SUMMARY

AERIAL MAPS

PONCE CITY MARKET

AREA DEVELOPMENT

PHOTOGRAPHS

TENANT INFO

RENTAL SURVEY

FINANCIAL SUMMARY

CASH FLOW

LEASE ABSTRACT

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DEMOGRAPHICS

Ruby Chow’s rent is just

$30 PSF in a market

with average rents of

$40 PSF plus and

vacancy of only 2.2%!


RUBY CHOW'S


INVESTMENT SUMMARY

AERIAL MAPS

PONCE CITY MARKET

AREA DEVELOPMENT

PHOTOGRAPHS

TENANT INFO

RENTAL SURVEY

FINANCIAL SUMMARY

CASH FLOW

LEASE ABSTRACT

LOCATION MAPS

DEMOGRAPHICS

Base Rent $95,370 3,179 SF @ $30.00 PSFCAM, Taxes, Insurance $25,432 $8.00/SFGross Rent $120,802

Less Expenses $25,432 $8.00/SF` Less Reserves $318 $.10/SF

Total Expenses $25,750

Net Operating Income: $95,052

LEASE: 10 Year Net Lease

3.0% Annual Increases

Percentage Rent above 5.5% Breakpoint

Landlord responsible for Structure Only

Landlord bills and manages operating expenses

See Lease Abstract for More Information

6.50%CAP RATE:

PRICE: $1,462,340


RUBY CHOW'S


INVESTMENT SUMMARY

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FINANCIAL SUMMARY

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LEASE ABSTRACT

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DEMOGRAPHICS

Year Net Income CAP

1 $95,052 6.50%

2 $97,913 6.70%

3 $100,870 6.90%

4 $103,890 7.10%

5 $107,005 7.32%

6 $110,216 7.54%

7 $113,522 7.76%

8 $116,924 8.00%

9 $120,452 8.24%

10 $124,076 8.48%

Average: $108,992 7.45%

Price

New 10 Year Lease

$1,462,340

$90,000

$100,000

$110,000

$120,000

$130,000

1 2 3 4 5 6 7 8 9 10

Years

Rental Income / Cash Flow

6.00%

6.50%

7.00%

7.50%

8.00%

8.50%

9.00%

1 2 3 4 5 6 7 8 9 10

Years

CAP Rate Increases


RUBY CHOW'S


INVESTMENT SUMMARY

AERIAL MAPS

PONCE CITY MARKET

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PHOTOGRAPHS

TENANT INFO

RENTAL SURVEY

FINANCIAL SUMMARY

CASH FLOW

LEASE ABSTRACT

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DEMOGRAPHICS

Term

Increases

Percentage

Security Deposit

Lease Year $/SF Annual Base Rent

One $30.00 $95,370

Two $30.90 $98,231

Three $31.83 $101,188

Four $32.78 $104,208

Five $33.76 $107,323

Six $34.77 $110,534

Seven $35.81 $113,840

Eight $36.88 $117,242

Nine $37.99 $120,770

Ten $39.13 $124,394

$9,770.13

$10,064.18

Additional rent over 5.50% breakpoint

Construction Allowance Landlord contribution of $30.00/SF maximum toward total buildout estimate of $84.76/SF

$10,366.19

$8,185.93

$8,432.30

$8,683.97

$8,943.59

$9,211.15

$9,486.67

Options

Ten (10) Years

Tenant Bao Restaurant Concepts, d/b/a Ruby Chow

Building 3,179 SF Retail Condominium, Unit C-1

3.0% Annual Increases

$10,405.93

Rent Schedule Monthly Base Rent

$7,947.50

One option of five years, starting at $40.30/SF in year 11, with 3.0% annual increases

Tenant Expenses Taxes, Insurance, CAM, Utilities

Landlord Expenses Structure Only

Gurantors Mike Blum & Guy Wong

Guaranty If Tenant defaults before the end of Lease Year three (3), personal guarantee is limited to

$157,770. If Tenant defaults after the end of Lease Year three (3), personal guarantee is

limited six (6) full months of rent. Guaranty expires after Lease Year five (5).

Fixtures Landlord lien on all Tenant personal property, as security in case of default


RUBY CHOW'S


INVESTMENT SUMMARY

AERIAL MAPS

PONCE CITY MARKET

AREA DEVELOPMENT

PHOTOGRAPHS

TENANT INFO

RENTAL SURVEY

FINANCIAL SUMMARY

CASH FLOW

LEASE ABSTRACT

LOCATION MAPS

DEMOGRAPHICS Ruby Chow’s

Ruby Chow’s


RUBY CHOW'S


INVESTMENT SUMMARY

AERIAL MAPS

PONCE CITY MARKET

AREA DEVELOPMENT

PHOTOGRAPHS

TENANT INFO

RENTAL SURVEY

FINANCIAL SUMMARY

CASH FLOW

LEASE ABSTRACT

LOCATION MAPS

DEMOGRAPHICS

One Mile Three Miles Five Miles Notes

2018 Population 31,876 166,486 384,424

2010 Population 28,742 148,523 337,156

5 Year Projected 33,843 176,615 408,636

Growth Over the Past 8 Years 10.90% 12.09% 14.02%

Projected Growth Over the Next 5 Years 6.17% 6.08% 6.30%

2018 Households 18,208 79,607 174,029

% Owner Occupied 35.29% 42.15% 43.99%

% Renter Occupied 64.71% 57.85% 56.01%

2010 Households 16,976 71,455 153,005

5 Year Projected 19,236 84,440 185,083

Growth Over the Past 8 Years 7.26% 11.41% 13.74%


2018 Average Household Income $85,823 $96,813 $90,839

5 Year Projected $94,429 $104,772 $97,223


2018 Atlanta Average Household Income $81,382

2018 Georgia Average Household Income $70,633

Employment & Establishments

2018 Employees/Daytime Population 28,515 318,162 441,441

2018 Total Establishments 2,205 17,037 29,786

White 58.47% 55.54% 49.92%

African American 32.87% 34.58% 41.76%

Hispanic Origin (Any Race) 4.71% 4.15% 5.10%

Native American / Alaskan Native 0.33% 0.25% 0.29%

Asian/Pacific Islander 5.48% 7.08% 5.76%

Other Race 2.81% 2.50% 2.23%

Race

Population

Households

Income

Three Miles is 19% higher than Atlanta Avg.

Three Miles is 37% higher than Georgia Avg.

RUBY CHOW'S 10 YEAR NNN LEASE · RUBY CHOW'S 10-YEAR NNN LEASE 620 Glen Iris Drive, Atlanta, GA ......

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