Absolute NNN Carl’s Jr. located in Beaumont (Houston),
TX for $1,820,500 / 5.85% CAP. There are 14.5± years
left on the 20 year Lease with 10% rent increases
every 5-years. The Tenant is responsible for all
property taxes, insurance, and maintenance/repairs –
including roof & structure and parking lot. There are
Zero Landlord Obligations.
Upside Potential - Rent
will increase 20% (back to the original rent
schedule) the earlier of i) 7.5 yrs from date the Starcorp
took over (5/20/16), or ii) the first month after gross sales
reach or exceed $1.2M for a calendar year.
Excellent Location – This Carl’s Jr. is situated
on a hard corner entrance to a Home Depot,
with great visibility from US 69 (Eastex Freeway) and high
traffic counts of 109,000± VPD.
Dense Location - Total population within
1-mile is 10,485 and almost 100,000 within 5-miles with an
Avg HH Income of $64,167. It’s two miles from the Parkdale
Mall which is anchored by Macy’s JCPenney & Dillard’s.
Other surrounding retailers include: Target, Chevrolet, Cadillac,
Dunkin Donuts, Walgreens, AutoZone and much more.
Beaumont is 85± miles east of Houston,
CARL’S JR. | Carl’s Jr. (CKE Restaurants) was
created and founded by Carl Karcher in 1941. In 1994, Carl’s
Jr. became a wholly-owned subsidiary of CKE Restaurants,
Inc. (CKE.) The CKE system includes 3,664 restaurants in 42
states and in 29 countries and U.S. territories world-wide
generating approximately $3.9 billion in system revenues.
The company employs a dual branding technique for Carl’s
Jr. with Green Burrito. Similarly Hardee’s has a dual
branding strategy with Red Burrito. Carl’s Jr.
primarily operates in Western US and West Coast regions. In
2013, CKE Restaurants, Inc. was purchased by the private equity
firm Roark Capital Group. Roark’s franchise and
multi-unit portfolio includes 59 brands that collectively
have more than 26,000 locations and $23 billion in system-wide revenues
across 50 states and 75 countries. Since its inception, the
Atlanta-based firm has raised over $6 billion in equity capital
and commitments, with its largest investments targeted
towards the food and restaurant industry.
Starcorp, LLC - Founded in April 2016, the
company acquired Frontier Star LLC (former operator) for $47M
and currently operates 160± locations in seven
This Carl's Jr. is operated by Starcorp CJ, LLC. Starcorp
HD, Starcorp CJ, and Starcorp, LLC combine to be one of the
largest dual-branded franchisees in the CKE restaurant system.
It is believed that there are 77± units backing this
lease. Executive operations team - 30yr veteran restaurant
entrepreneur and experienced Hardees franchise operator, former
board member of the IHFA (Independent Hardee’s
Franchisee Association) and CFA (Coalition of Franchisee