Burger King 26 Peyton Road, Atlanta, GA - Matthews · Burger King 26 Peyton Road SW ... Burger King Worldwide operates the world’s #3 hamburger chain by sales with almost 15,000

B u r g e r K i n g , A t l a n t a , G A | 1

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Burger King2 6 P e y t o n R o a d S W | A t l a n t a , G AO F F E R I N G M E M O R A N D U M

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exclusively listed by

K y l e M at t h e w sBROKER OF RECORD

LIC # 67120 (GA)

G a r y C h o uFVP & Senior Director

[email protected] (310) 919-5827MOB (714) 928-8016LIC # 01911222 (CA)

K e v i n C h a n gAssociate

[email protected] (310) 919-5828MOB (951) 616-8918LIC # 01976724 (CA)

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EXECUTIVE SUMMARY

FINANCIAL OVERVIEW

AREA OVERVIEW

PROPERTY OVERVIEW

Contents

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investment highlights

LONG-TERM, WORRY-FREE INVESTMENT

• Brand New Development! – This store was recently built in October 2017 to match the latest Burger King prototype!

• Long-Term Lease – Tenant to sign brand new 20-year lease with Four (4), 5-Year options to extend at close of escrow

• Absolute NNN Lease – Tenant takes care of all landlord responsibilities including tax, insurance, maintenance, roof and structure

• Growing Cash Flow – There are 8% increases every 5 years – Excellent hedge against inflation!

EXCELLENT TENANT WITH STRONG GROWTH MODEL AND BALANCE SHEET

• GPS Hospitality – Corporate guarantee from one of the three largest Burger King operators in the country!

• High Growth Operator – GPS Hospitality has over 430+ Burger King & Popeyes restaurants across Alabama, Arkansas, Florida, Georgia, Louisiana, Maryland, Mississippi, New Jersey, Pennsylvania and West Virginia

• Tenant with Long Term Outlook – GPS plans to remodel 30-40 stores each year and has consistently seen year over year revenue growth

• Healthy Cash Flow – Franchise Times reports that GPS Hospitality has revenues over $500 million and is halfway to its 10-year goal of $1 billion in annual revenue

IDEAL RETAIL LOCATION

• Main Retail Corridor – Nearby national tenants include CVS, McDonald’s, Wendy’s, AutoZone, Chevron, and MetroPCS amongst others!

• Healthy Traffic Counts – Over 35,000 VPD in combined traffic from Peyton Rd SW and MLK Jr. Dr. SW.

• Down the Street from High School – Frederick Douglass High School is home to over 850 students and is less than one mile from the site

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Financial Overview

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Tenant Summary

Tenant Trade Name Burger King, Inc.

Type of Ownership Fee Simple

Lease Guarantor GPS Hospitality

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Rent Commencement Date COE

Lease Expiration Date TBD

Term Remaining on Lease ± 20 Years

Increases 8.00% Increases in Options

Options Four, 5-Year Options

List Price

$2,143,000

Cap rate

5.25%

GLA

± 3,353 SF

Lot Size

± 0.84 Acres

Year Built

2017

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Year 1-5 $9,375.00 $112,500 $33.55 5.25%

Year 6-10 $10,125.00 $121,500 $36.24 5.67%

Year 11-15 $10,935.00 $131,220 $39.14 6.12%

Year 16-20 $11,809.80 $141,718 $42.27 6.61%

Option 1: Year 21-25 $12,754.58 $153,055 $45.65 7.14%

Option 2: Year 26-30 $13,774.95 $165,299 $49.30 7.71%

Option 3: Year 31-35 $14,876.95 $178,523 $53.24 8.33%

Option 4: Year 36-40 $16,067.10 $192,805 $57.50 9.00%

26 Peyton Road SWAtlanta, GA 30311

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Property Overview

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Parcel Map

the offeringProperty Name Burger King

Property Address 26 Peyton Road SW

Atlanta, GA 30311

Assessor’s Parcel Number 14-0205-0003-038-1

Site DescriptionNumber of Stories One

Year Built 2017

Gross Leasable Area (GLA) ± 3,353 SF

Lot Size ± 0.84 Acres (36,590 SF)

Type of Ownership Fee Simple

Landscaping Professional

Topography Generally Level

Subject Property

Greenlight Emission

Hamilton Transit Station

Market at MLK

New Day Treatment

Center

MLK Food Mart

Dept. of Labor

ATI Insurance

Hong Kong City

Next Level

J&J Beauty Supply

T&K Package

Store

Columbia Commons Apartments

Dogwood Apartments

New Horizon Baptist Church

Ralph David Abernathy Fwy ± 125,000 ADT

WEst Bound

MLK Jr Dr. ± 35,000 ADT

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yton

Rd

± 17

,000

ADT

east bound

Subject Property

Greenlight Emission

Bargain Wholesale

First Class Car Wash

Quick Food Mart

Luther Apartments

Kings Glen Apartments

Molly World

Academy

West View Food Mart

Downtown Atlanta

Raulph David Abernathy Fwy ± 125,000 ADT

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Property Name Burger King

Parent Company Trade Name Restaurant Brands International, Inc. (NYSE: QSR)

Ownership Public

Credit Rating (Standard & Poor’s) B+

Revenue $1.15 B

Net Income $233.70 M

No. of Locations ± 15,000

No. of Employees ± 34,248

Headquartered Miami, FL

Website www.bk.com

Year Founded 1953

TENANT OVERVIEW

Burger King Worldwide operates the world’s #3 hamburger chain by sales with almost 15,000 restaurants in the US and more than 100 other countries. In addition to its popular Whopper sandwich, the chain offers a selection of burgers, chicken sandwiches, salads, and breakfast items, along with beverages, desserts, and sides. Many of the eateries are stand-alone locations offering dine-in seating and drive-through services; the chain also includes units in high-traffic locations such as airports and shopping malls. Burger King Worldwide is owned and operated by Restaurant Brands International.

GEOGRAPHIC OUTREACH

Burger King has restaurant locations throughout the US and more than 100 other countries. The US and Canada are responsible for about 65% of revenues. Like most other giants of the fast-food industry, Burger King has expanded its nationwide and international presence primarily through franchising. But the company has reduced its domestic expansion efforts recently. Burger King has used joint ventures to expand in countries like China, Mexico, Russia, and Singapore.

STRATEGY

Burger King has been remodeling outdated restaurant interiors and modernizing obsolete technology, thus positioning the company for future growth. Its goal is to have 40% of Burger King restaurants in the US and Canada on a modern image by the end of 2015. The company has also been steadily refranchising locations with the goal of getting to a 100% franchised business model eventually.

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a r e a o v e r v i e wArea Overview

$46,439Median Household Income

440,641Population

33.3Median Age

Atlanta is Georgia’s capital and most populous city, as well as the economic and cultural hub of the Atlanta metropolitan area. Atlanta is a rapidly growing city, and its metropolitan area exceeded 5.5 million for the first time in 2013. While the area’s growth is not as high as it was in the 1990’s and early 2000s, it’s higher than the previous year and this growth is expected to continue as Atlanta attracts new people. It’s projected that metro Atlanta’s population will reach about 5.7 million by 2020.

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demographics

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 7,868 79,879 232,231

2017 Estimate 7,510 77,919 221,793

2010 Census 7,037 76,122 204,274

Growth 2017 - 2022 4.77% 2.52% 4.71%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 3,440 31,982 93,232

2017 Estimate 3,250 30,866 87,478

Growth 2017 - 2022 5.85% 3.62% 6.58%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$34,779 $40,991 $53,739

Top Employers

Economy

Atlanta’s economy is considered diverse, with dominant sectors including logistics, professional and business services, media operations, and information technology. Corporate operations comprise a large portion of Atlanta’s economy, with the city serving as the regional, national, or global headquarters for many corporations.

Atlanta contains the country’s third largest concentration of Fortune 500 companies and the city is the global headquarters of corporations such as The Coca-Cola Company, The Home Depot, Delta Air Lines, AT&T Mobility, Chick-fil-A, UPS, and Newell-Rubbermaid. Over 75 percent of Fortune 1000 companies conduct business operations in the Atlanta metropolitan area, and the region hosts offices of about 1,250 multinational corporations.

Many corporations are drawn to Atlanta on account of the city’s educated workforce; as of 2010, nearly 43% of adults in the city of Atlanta have college degrees, compared to 27% in the nation as a whole.

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SPORTSIt is home to three professional sports franchises: the Atlanta Braves (Major League Baseball), the Atlanta Hawks (National Basketball Association), and the Atlanta Falcons (National Football League). All teams have made their city proud and have become national champions. The residents of Atlanta and surrounding cities have become a devoted fan base to their teams and have some of the best crowd atmospheres.

ACTIVITIESAtlanta also contains various outdoor attractions. The Atlanta Botanical Garden, adjacent to Piedmont Park, is home to the 600-foot-long Kendeda Canopy Walk, a skywalk that allows visitors to tour one of the city’s last remaining urban forests from 40-foot-high. The Canopy Walk is considered the only canopy-level pathway of its kind in the United States. Zoo Atlanta, located in Grant Park, accommodates over 1,300 animals representing more than 220 species. Home to the nation’s largest collections of gorillas and orangutans, the Zoo is also one of only four zoos in the U.S. to house giant pandas.

TOURISMAtlanta is one of the most visited cities in America, with over 37 million visitors per year. In 2015 alone, the tourism industry generated $58.9 billion in business sales. Although the most popular attraction among visitors to Atlanta is the Georgia Aquarium, the world’s largest indoor aquarium, Atlanta’s tourism industry mostly driven by the city’s history museums and outdoor attractions.

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Burger King located at 26 Peyton Road SW, Atlanta, GA 30311 (“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

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BROKER OF RECORD

Burger King2 6 P e y t o n R o a d S W | A t l a n t a , G A 3 0 3 1 1

™

exclusively listed by

K y l e M at t h e w sBROKER OF RECORD

LIC # 67120 (GA)

Gary ChouFVP & Senior Director

[email protected] (310) 919-5827MOB (714) 928-8016LIC # 01911222 (CA)

Kevin ChangAssociate

[email protected] (310) 919-5828MOB (951) 616-8918LIC # 01976724 (CA)