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Absolute NNN Lease | ZERO Landlord Responsibilities
14.5±yrs Left on Lease | High Traffic Location | 10% Bumps Every 5-years

Available

CONTACT:

Derrick Schroeder
Net Leased Specialist
954-296-6955
Click for Email


INVESTMENT HIGHLIGHTS:

• Absolute NNN Corporate Ground Lease - ZERO Landlord Responsibilities
Long Term Lease – 14.5± Years Remaining
10% Rent Increases Every 5-Years
• Excellent Visibility & High Traffic Counts of 109,000 VPD
• Located two miles from the Parkdale Mall which is anchored by Macy’s, JCPenney & Dillard’s
• Sale Includes BOTH Building & Land (Depreciable Asset)
Upside PotentialRent Increases 20% in 2023 or Sooner (Inquire with Broker for Details)

TENANT HIGHLIGHTS:

• Carl’s Jr. - Established Brand & Top 5 Quick Service Burger Restaurant Chain
• Global Brand - CKE has total 3,664 franchised or company operated restaurants in 44 states and 38 countries
• Starcorp LLC recently acquired Frontier Star LLC assets (160± units) for $47m
• 160± Unit Operator of Carl’s Jr. & Hardees in Multiple States
• It is believed that there are 77± units Backing this Lease
• Executive Operations Team – 30 year Veteran Restaurant Entrepreneur and Experienced Hardees Franchise Operator, former board member of the IHFA & CFA

Price:
$1,820,500
NOI:
$106,500
CAP Rate: 5.85%
Years Remaining on Lease: 14.5 Years
Rent Increases: 10% Every 5-years
Options: 4 x 5 Years w/10% Bumps
Building Size: 2,390± SF
Lot Size  
Rent Commencement:
Sept 20, 2011
Lease Expiration:
Sept 30, 2031
Net Lease Investment:
Absolute NNN

 

Property Description:
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.

About the Location:
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, Texas

About the Tenant:
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 states.

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 Associations).

2016 Demographics
1 Mile
3 Mile
5 MilE
Population
10,484
59,281
95,573
Avg Household Income
$50,838
$65,737
$64,167
 
AERIALS/PHOTOS
 

 

The information above has been obtained from sources believed reliable. While we do not doubt its accuracy we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial, and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

The properties shown on this website may or may not be exclusively listed by SOLID INVESTMENTS at Berger Reatly Group. All information shown on www.SolidInvestmentsFL.com is believed to be accurate, but is not warranted.

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