Burger King 38-40 Walnut Bottom Road, Shippensburg, PA 17257 OFFERING MEMORANDUM *Actual Photo
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Slide 1OFFERING MEMORANDUM *Actual Photo
Regional Map
Local Map
Aerial Photo
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 Matusik Vice President Direct | 714.874.4004 Fax | 717.797.0004 mmatusik@primenetlease.com License: CA 01888322 www.primenetlease.com
Paul R Matusik President Direct | 714.875.2400 Fax | 717.797.0004 pmatusik@primenetlease.com License: CA 01351021 www.primenetlease.com
P R E S E N T E D B Y
Kum & Go – Grinnell, IA
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
Type of Ownership: Fee Simple
No. of Tenant Locations: 10
PROPERTY INFORMATION
Offering Price $1,562,355
Price / SF $614.13
Cap Rate 6.00%
Attractive 6.00% Cap Rate!
Increasing Store Sales!
Recently Remodeled Store!
Recent 14-year extension!
ANNUALIZED OPERATING DATA
Base Rent $82,350.00
Property Burger King INCOME
Net Operating Income $93,741
Capitalization Rate 6.00% YEAR BASE RENT PERCENTAGE
RENT TOTAL RENT
2016 $82,350 $10,073 $92,423
Year Built / Renovated 1997/2016 2018* $82,350 $12,560* $94,910*
Gross Leasable Area 2,544
LEASE SUMMARY
Guarantor Franchise Guarantee
13
Landlord Responsibility None
Tenant Responsibility NNN
Kum & Go – Grinnell, IA
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 Matusik Vice President Direct | 714.874.4004 Fax | 717.797.0004 mmatusik@primenetlease.com License: CA 01888322 www.primenetlease.com
Paul R Matusik President Direct | 714.875.2400 Fax | 717.797.0004 pmatusik@primenetlease.com License: CA 01351021 www.primenetlease.com
Regional Map
Local Map
Aerial Photo
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 Matusik Vice President Direct | 714.874.4004 Fax | 717.797.0004 mmatusik@primenetlease.com License: CA 01888322 www.primenetlease.com
Paul R Matusik President Direct | 714.875.2400 Fax | 717.797.0004 pmatusik@primenetlease.com License: CA 01351021 www.primenetlease.com
P R E S E N T E D B Y
Kum & Go – Grinnell, IA
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
Type of Ownership: Fee Simple
No. of Tenant Locations: 10
PROPERTY INFORMATION
Offering Price $1,562,355
Price / SF $614.13
Cap Rate 6.00%
Attractive 6.00% Cap Rate!
Increasing Store Sales!
Recently Remodeled Store!
Recent 14-year extension!
ANNUALIZED OPERATING DATA
Base Rent $82,350.00
Property Burger King INCOME
Net Operating Income $93,741
Capitalization Rate 6.00% YEAR BASE RENT PERCENTAGE
RENT TOTAL RENT
2016 $82,350 $10,073 $92,423
Year Built / Renovated 1997/2016 2018* $82,350 $12,560* $94,910*
Gross Leasable Area 2,544
LEASE SUMMARY
Guarantor Franchise Guarantee
13
Landlord Responsibility None
Tenant Responsibility NNN
Kum & Go – Grinnell, IA
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 Matusik Vice President Direct | 714.874.4004 Fax | 717.797.0004 mmatusik@primenetlease.com License: CA 01888322 www.primenetlease.com
Paul R Matusik President Direct | 714.875.2400 Fax | 717.797.0004 pmatusik@primenetlease.com License: CA 01351021 www.primenetlease.com
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