Carl s Jr [ REPRESENTATIVE PHOTO ] 20-year absolute net lease with rental increases every 5 years 1014 W. Joe Harvey Blvd, Hobbs, NM 88240 [ www.capitalpacific.com ]
PROperty Summary freestanding drive-thru restaurant located across from the home depot PRICE: $2,308,333 CAP: 6.00% Rentable SF...2,997 SF land area...0.85 Acres BUILT...May 1, 2016 Lease Expiration....April 30, 2036 Listing Team Contact Info John Andreini jandreini@capitalpacific.com (415) 274-2715 CA BRE# 01440360 Listed in Conjunction with NM Licensed Broker: Sean McMullan, McMullan & Company Real Estate sean@mcmullanrealestate.com (505) 259-6223 Capital Pacific collaborates. Click here to meet the rest of our San Francisco team. [ Surrounding area retail ] carl s jr 2
core characteristics investment highlights Area retailers include Walmart, Lowe s, The Home Depot, Buffalo Wild Wings, Applebee s, and many others. Population growth in one, three, and five mile radii Tenant Highlights Carls Jr. 2014 sales were $1.5 billion Over 1,300 locations Guarantor Franchisee since 1997 Currently owns and operates 11 nationally recognized brand restaurants: 8 IHOP s, 2 Carl s Jr. (including Hobbs), and Tilted Kilts in New Mexico, Texas, and Ohio Lease Highlights 7.5% rental increases every 5 years in base term and option periods Four 5-year options with rental increases every 5 years Zero landlord responsibilities the average household income within a one mile radius is over $91,000 [ REPRESENTATIVE PHOTO ] carl s jr 3
aerial 36 es 5 St D AIL Y e re Coronado Elementary 13 3, im 13 2 t N Da Highland Jr. High School as os tre et W M ille nd riv e lp 21 8 ALBUQUERQUE Gr W N, Na 208 va jo DAIL Dr ive Y located across from the home depot Mills Elementary TURNER PLAZA ve yb 18 lvd. Stone Elementary Jo eh ar 18 Sanger Elementary 18 18 Co W NW Be nd er W Bo M ule ille va rd nd riv e un ty BROADMOOR MALL N Gr im es St re et Ro ad carl s jr 4
Surrounding Area Retail area retailers include lowe s walmart, The home depot, and many others carl s jr 5
income & expense PRICE $2,308,333 Price Per Square Foot: $770.21 Capitalization Rate: 6.00% Total Rentable Area (SF): 2,997 Lot Size (AC): 0.85 STABILIZED INCOME Per Square Foot Scheduled Rent $46.21 $138,500 Effective Gross Income $46.21 $138,500 LESS Per Square Foot Taxes Tenant Pays Direct $0.00 Insurance Tenant Pays Direct $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $138,500 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. [ REPRESENTATIVE PHOTO ] [ REPRESENTATIVE PHOTO ] carl s jr 6
rent roll RENTAL INCREASES TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT Yearly Rent/FT Carl s Jr. 2,997 1 5 $138,500 $11,541.67 $138,500 $3.85 $46.21 6 10 $12,407.29 $148,888 $4.14 $49.68 11 15 $13,337.83 $160,054 $4.45 $53.40 16 20 $14,338.33 $172,060 $4.78 $57.41 Option 1 21 25 $15,413.71 $184,965 $5.14 $61.72 Option 2 26 30 $16,569.74 $198,837 $5.53 $66.35 Option 3 31 35 $17,812.47 $213,750 $5.94 $71.32 Option 4 36 40 $19,148.40 $229,781 $6.39 $76.67 Totals: 2,997 $138,500 $11,542 $138,500 $3.85 $46.21 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. [ Surrounding area retail ] carl s jr 7
site plan Site Plan Key Parcel outline: Land Area: 0.85 acres Building Area: 2,997 sf Ingress/Egress: Joe Harvey Boulevard This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. carl s jr 8
tenant overview [ REPRESENTATIVE PHOTOs ] www.carlsjr.com 2014 REVENUE $1.5 BILLION NUMBER OF LOCATIONS 1,300+ Carl s jr. Carl s Jr. is an American fast-food restaurant chain known for quality, cleanliness, and pioneering new concepts such as partial table service and self-serve beverage bars. It is characterized by its popular logo, the bright yellow five-pointed Happy Star, and has a history of developing popular advertising slogans such as If it doesn t get all over the place, it doesn t belong in your face. Signature menu items include the 100% Angus beef Six Dollar Burger, charbroiled chicken sandwiches, entrée salads and low carbohydrate options. When combined with its sibling restaurant chain, Hardee s, Carl s Jr. is the fifth largest fast food chain in size. Carl s Jr. is currently owned and operated by CKE Restaurants, Inc., one of the world s largest operators and franchisors of quick service restaurants. With its headquarters in Carpinteria, California, CKE Restaurants Inc. currently has franchised, licensed, or company operated restaurants in 42 U.S. states and 25 foreign countries. Their brands include the Carl s Jr, Hardee s, Green Burrito, and Red Burrito restaurants chains. about the guarantor Teo Regalado, who will be operating the store, has been a franchisee since 1997 and has owned/operated 6 IHOP restaurants in Texas and Louisiana. After selling off these stores, IHOP sent him to open more stores in New Mexico in which he has done huge sales volumes. He currently owns and operates 11 nationally recognized brand restaurants: 8 IHOP s, 2 Carl s Jr. s (including Hobbs), and Tilted Kilts in New Mexico, Texas, and Ohio. carl s jr 9
location & demographics hobbs, NM Overview Hobbs is located in Lea County, New Mexico both west and north of the Texas state line and is the principal city of the Hobbs, New Mexico Micropolitan Statistical Area. The population of Hobbs was 34,122 at the 2010 Census and the population in Lea County was 64,727. Hobbs holds the headquarters of the Soring Society of America. It is also home to Zia Park racetrack, which hosts thoroughbred and quarter horse racing and the Black Gold Casino. Top Employers in lea county Haliburton Hobbs Municipal Schools Lea Regional Medical Center Patterson-UTI Drilling Co. Population 1-Mile 3-Mile 5-Mile 2010 6,057 28,070 41,206 2015 6,496 30,254 44,166 2020 7,008 33,013 48,054 2015 Household incomes 1-Mile 3-Mile 5-Mile Average $91,695 $74,431 $68,214 albuquerque oklahoma City 4 Hr 53 min 314 miles 3,365 DAILY dallas hobbs carl s jr 10
A unique HUMAN RESULTS-DRIVEN client experience The capital pacific experience - our daily commitment to our clients [ www.capitalpacific.com ] [ REPRESENTATIVE PHOTO ] John Andreini jandreini@capitalpacific.com (415) 274-2715 CA BRE# 01440360 Bob Sanner bsanner@capitalpacific.com (415) 274-2717 CA BRE# 00869657 Rick Sanner rsanner@capitalpacific.com (415) 274-2709 CA BRE# 01792433 dave lucas dlucas@capitalpacific.com (415) 274-7390 CA BRE# 01389761 Listed in Conjunction with NM Licensed Broker: Sean McMullan, McMullan & Company Real Estate sean@mcmullanrealestate.com (505) 259-6223 Dave Lucas Capital Pacific collaborates. Click here to meet the rest of our San Francisco team. Chris Kostanecki chris peters Zandy Smith Jack Navarra zeb ripple Joe Caccamo Gregg Steele Karla Zens [ Copyright 2016 Capital Pacific ]