Burger King - LoopNet

Burger King38-40 Walnut Bottom Road, Shippensburg, PA 17257

OFFERING MEMORANDUM*Actual Photo

TABLE OF CONTENTS

INVESTMENT OVERVIEW 01Property Overview

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Offering Summary

MARKET OVERVIEW 03Market Overview

SECTION

Burger King - Shippensburg, PA

In Association with Brian Brockman and Bang Realty-Pennsylvania Inc. a Licensed Pennsylvania Real Estate Broker, PA License RM432816 & RB068727

Michael MatusikVice PresidentDirect | 714.874.4004Fax | [email protected]: CA 01888322www.primenetlease.com

Paul R MatusikPresidentDirect | 714.875.2400Fax | [email protected]: CA 01351021www.primenetlease.com

P R E S E N T E D B Y

Kum & Go – Grinnell, IA

3

INVESTMENT

OVERVIEW



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PROPERTY OVERVIEW

PROPERTY OVERVIEW

PRICE: $1,562,355 CAP RATE: 6.00%

About The Investment

Prime Net Lease is pleased to exclusively offer this NNN lease Burger King located at 38-40 Walnut Bottom Road in Shippensburg, PA. The current lease has 13 years remaining, with one-6 year option to renew. There are no Base Rent increases for the remainder of the current term, however, due to increasing sore sales, the percentage rent has been increasing at a steady pace. The tenant recently remodeled the store to the current image standards showing commitment to the site. Burger King is situated on a large 1.32-acre parcel on Walnut Bottom Road with over12,000 vehicles passing by daily. The subject property is located within the main retail corridor of Shippensburg, drawing many residents to the area. Surrounding tenants include Walmart, Lowe’s, Tractor Supply, CVS, Dollar General, and Advance Auto Parts. Burger King is ideally located in a strong demographic area with over 19,000 people and an average household income over $56,000 in the three-mile ring.

Shippensburg is a college town located in Cumberland County, home to Shippensburg University. Burger King is located just 1.3 miles from the university, which has over 7,000 students enrolled. Shippensburg is the oldest community of the Cumberland Valley, and the second oldest west of the Susquehanna River in Pennsylvania. Cumberland County overall is within a 2-hour drive or less of Philadelphia, Baltimore and Washington, DC. Burger King Worldwide, Inc., together with its subsidiaries, operates and franchises fast food hamburger restaurants, primarily under the Burger King brand worldwide. Burger King Worldwide, Inc. was founded in 1954 and is headquartered in Miami, Florida. Jeffrey Corporation, the franchisee backing the lease, has grown to ten Burger King restaurants in the greater Frederick County area since inception.

LEASE ABSTRACT

Tenant: Jeffrey Corporation

Lease Commencement: October 2002

Lease Expiration: October 2031

Rent Increases: Tied to Gross Sales

Type of Ownership: Fee Simple

No. of Tenant Locations: 10

PROPERTY INFORMATION

Address 38-40 Walnut Bottom Rd

Offering Price $1,562,355

Price / SF $614.13

Cap Rate 6.00%

Net Operating Income $93,741,.30

Year Built /Remodeled 1997/2016

Rentable Square Feet 2,544

Land Area 1.32 Acres

PROPERTY HIGHLIGHTS

13 years remaining on an Absolute NNN Lease!

Attractive 6.00% Cap Rate!

College Town! Shippensburg University (5,000 Enrollment)

Increasing Store Sales!

Located just off Interstate 81 (43,000 VPD)

Recently Remodeled Store!

Recent 14-year extension!

ANNUALIZED OPERATING DATA

Base Rent $82,350.00

Percentage Rent 2017 $11,391.30

Total Rent: $93,741.30


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PROPERTY PHOTOSPROPERTY PHOTOS


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MAP


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LOCAL ARIAL MAP


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FINANCIAL

ANALYSIS

THE OFFERING ANNUALIZED OPERATING INFORMATION

Property Burger King INCOME

Property Address 38-40 Walnut Bottom RoadShippensburg, PA 17257

Net Operating Income $93,741

Price $1,562,355 RENT SCHEDULE HISTORY

Capitalization Rate 6.00% YEAR BASE RENTPERCENTAGE

RENTTOTAL RENT

Price/SF $614.13 2015 $82,350 $10,917 $93,267

2016 $82,350 $10,073 $92,423

PROPERTY DESCRIPTION 2017 $82,350 $11,391 $93,741

Year Built / Renovated 1997/2016 2018* $82,350 $12,560* $94,910*

Gross Leasable Area 2,544

Zoning Retail

Type of Ownership Fee Simple

LEASE SUMMARY

Property Subtype Retail

Tenant Jeffrey Corporation *Estimated

Rent Increases FMV in Option Period

Guarantor Franchise Guarantee

Lease Type Absolute NNN

Lease Commencement 10/31/2002

Lease Expiration 09/02/2031

Lease Term 14 year extension

Term Remaining on Lease (Years)

13

Renewal Options 1 - Six Year Options

Landlord Responsibility None

Tenant Responsibility NNN

Right of First Refusal Yes


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FINANCIAL ANALYSIS

OFFERING SUMMARY

MARKET

OVERVIEW


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MARKET OVERVIEW

▪ Shippensburg is a borough in Cumberland and Franklin counties in the U.S. state of Pennsylvania. Settled in

1730, Shippensburg lies in the Cumberland Valley, 41 miles (66 km) southwest of Harrisburg, and is part of the

Harrisburg–Carlisle Metropolitan Statistical Area. The population was 5,492 at the 2010 census. Of this, 4,416

were in Cumberland County, and 1,076 were in Franklin County.

▪ Shippensburg was incorporated as a borough on January 21, 1819. In the past, there were furniture factories,

engine and pump works, and other industrial works located within the town. Shippensburg is the home of the

Beistle Company, the oldest and largest manufacturer of decorations and party goods, which sells its distinctive

honeycomb paper decorations worldwide. It is also the location of Pague and Fegan, the oldest continuously

operated hardware store in Pennsylvania. In May 2012, Volvo Construction Equipment began a $100 million

expansion project to bring its American headquarters to Shippensburg.

▪ Shippensburg University of Pennsylvania, one of 14 universities of the Pennsylvania State System of Higher

Education, is located just north of the borough limits in Shippensburg Township with enrollment of over 5,000

students.

▪ As of 2000, there were 5,586 people, 2,397 households, and 1,138 families residing in the borough.

The population density was 2,772.0 people per square mile (1,067.7/km²). There were 2,602 housing units at an

average density of 1,291.2 per square mile (497.3/km²). The racial makeup of the borough was 94.16% White,

3.44% African American, 0.11% Native American, 0.98% Asian, 0.02% Pacific Islander, 0.47% from other races,

and 0.82% from two or more races. Hispanic or Latino of any race were 1.15% of the population.

▪ There were 2,397 households, out of which 20.9% had children under the age of 18 living with them, 34.5%

were married couples living together, 9.9% had a female householder with no husband present, and 52.5% were

non-families. 33.4% of all households were made up of individuals, and 15.1% had someone living alone who

was 65 years of age or older. The average household size was 2.32 and the average family size was 2.87.

▪ In the borough the population was spread out, with 17.6% under the age of 18, 28.5% from 18 to 24, 21.8% from

25 to 44, 16.4% from 45 to 64, and 15.6% who were 65 years of age or older. The median age was 28 years.

For every 100 females, there were 85.3 males. For every 100 females age 18 and over, there were 82.5 males.

▪ Yearly, in the last full week of July, the Shippensburg Community Fair is held. Begun in 1958, the fair bills itself

as Pennsylvania's largest bi-county fair. The fair includes agricultural exhibits, a craft show, food vendors, and

carnival rides amongst other things. Every summer on the last Saturday of August, Shippensburg holds the Corn

Festival, an event that brings regional artisans and vendors to operate stands downtown. The downtown is

closed to traffic for at least 5 blocks for most of the day. Average attendance at the festival is estimated at 60,000

- 70,000 each year.

In Association with Brian Brockman and Bang Realty-Pennsylvania Inc. a Licensed Pennsylvania Real Estate Broker, PA License RM432816 & RB068727

Michael MatusikVice PresidentDirect | 714.874.4004Fax | [email protected]: CA 01888322www.primenetlease.com

Paul R MatusikPresidentDirect | 714.875.2400Fax | [email protected]: CA 01351021www.primenetlease.com

P R E S E N T E D B Y

Burger King - LoopNet

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