NET LEASE INVESTMENT OFFERING
ARBY’S RESTAURANT (Corporate)
3710 Easton Nazareth Highway
Easton, PA 18045
TABLE OF CONTENTS
TABLE OF CONTENTS
I. Executive Profile
II. Location Overview
III. Market & Tenant Overview
Executive Summary
Investment Highlights
Property Overview
NET LEASE INVESTMENT OFFERING
Photographs
Aerial
Site Plans
Map
Demographic Report
Market Overview
Tenant Overview
DISCLAIMER STATEMENT
DISCLAIMER
STATEMENT:
The information contained in the following Offering Memorandum is proprietary and strictly confidential.
It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made
available to any other person or entity without the written consent of The Boulder Group.
This Offering Memorandum has been prepared to provide summary, unverified information to prospective
purchasers, and to establish only a preliminary level of interest in the subject property. The information
contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not
made any investigation, and makes no warranty or representation.
The information contained in this Offering Memorandum has been obtained from sources we believe to be
reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained
herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no
warranty or representation whatsoever regarding the accuracy or completeness of the information provided.
All potential buyers must take appropriate measures to verify all of the information set forth herein.
NET LEASE INVESTMENT OFFERING
EXECUTIVE SUMMARY
EXECUTIVE
SUMMARY:
The Boulder Group is pleased to exclusively market for sale a single tenant net leased Arby’s Restaurant property
located in Easton, Pennsylvania. The property is strategically located along Easton Nazareth Highway in a dominant
retail corridor. The Arby’s features a drive-thru and has easy access to the traffic along Easton Nazareth Highway.
The corporate guaranteed triple net lease has ten years remaining and features rental escalations in the primary
term and in the four renewal option periods.
The 2,750 square foot building is well located within the dominant retail destination in Easton. The Arby’s is
located along Easton Nazareth Highway, the areas primary east-west thoroughfare, which experiences traffic
counts exceeding 17,000 vehicles per day. The property is also less than one-quarter mile east of Pennsylvania
Route 33 with direct on and off access to the approximate 55,000 vehicles per day. The property is located within
an affluent area with average household incomes within a one-mile radius in excess of $104,000 annually. There
are over 121,500 people living within a five mile radius of the property.
The Arby’s Restaurant is surrounded by a number of major retail developments. Northampton Crossings, a
622,000 square foot development anchored by a Walmart Supercenter, also features Sam’s Club, Sears, Kohl’s,
Hobby Lobby and a Regal Cinema. Directly across the street is Lower Nazareth Commons, a 292,000 square foot
development that features Target, Five Below, Petco and Starbucks. Other notable retailers in the immediate vicinity
along Easton Nazareth Highway include Wegmans, PNC Bank, AT&T Wireless and a number of restaurants. In
addition, a Walgreens distribution warehouse and B&G Foods distribution warehouse are both located in the
immediate area. With convenient interstate access and a large variety of strong retailers, this corridor has the
advantage of drawing consumers from throughout the area.
The Arby’s Restaurant recently executed a new ten year lease expiring in April 2027. The lease features 3% rental
escalations in year five and nine of the primary term and in the four 5-year renewal option periods. Arby’s is
a leading international quick-service restaurant company that specializes in deli-style sandwiches. Arby’s is the
second-largest quick-service fast-food sandwich restaurant chain in the U.S. in terms of units and third-largest in
terms of revenue.
NET LEASE INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
INVESTMENT
HIGHLIGHTS:
NET LEASE INVESTMENT OFFERING
•
Long term lease
•
Triple net lease
•
Corporate guarantee
•
Drive-thru location
•
Rental escalations in primary terms and renewal option periods
•
Positioned in a retail corridor with easy access on areas primary east-west thoroughfare
•
Over 121,500 people living within a five mile radius of the property
•
Benefits from its position within a dominant retail destination that features Walmart, Target, Wegmans,
Regal Cinema and many others
PROPERTY OVERVIEW
PROPERTY
OVERVIEW:
Price:
$1,791,304
Cap Rate:
5.75%
Rent Schedule:
NOI
$103,000
$106,090
$109,273
$109,273
$112,551
$112,551
$115,927
$119,405
$122,987
$122,987
$126,677
5/1/2021
5/1/2025
5/1/2027
5/1/2029
5/1/2032
5/1/2033
5/1/2037
5/1/2041
5/1/2042
5/1/2045
Renewal Options:
Four 5-Year*
Lease/Rent Commencement:
May 1, 2017
Lease Expiration Date:
April 30, 2027
Lease Term:
10 Years
Guarantor:
Arby’s Restaurant Group, Inc.
Year Built/Remodeled:
1995/2004
Lease Type:
NNN
Rentable Square Feet:
2,750 SF
Lot Size:
1 Acre
* Fourth Renewal Option is 47 months.
NET LEASE INVESTMENT OFFERING
Escalation Date
(Option 1)
(Option 2)
(Option 3)
(Option 4)
PHOTOGRAPHS
NET LEASE INVESTMENT OFFERING
AERIAL
AZARET
EASTON-N
PA
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3
NET LEASE INVESTMENT OFFERING
3
(5
5,
01
9
VP
D)
AY
H HIGHW
(17,058 VPD)
SITE PLAN
DR
IV
ETH
RU
NET LEASE INVESTMENT OFFERING
MAP
NET LEASE INVESTMENT OFFERING
MAP
Lake Michigan
NET LEASE INVESTMENT OFFERING
DEMOGRAPHIC REPORT
DEMOGRAPHIC
REPORT:
Population
1-Mile
3-Mile
5-Mile
Total Population
1,409
35,105
121,578
Total Households
586
13,263
44,490
1-Mile
3-Mile
5-Mile
$104,110
$91,775
$84,004
Income
Average Household Income
NET LEASE INVESTMENT OFFERING
MARKET OVERVIEW
MARKET
OVERVIEW:
Easton, Pennsylvania
Easton is a city and the county seat of Northampton County, Pennsylvania. The city has a
population of more than 27,000 people. Easton is located at the confluence of the Delaware River
and the Lehigh River, roughly 55 miles north of Philadelphia and 70 miles west of New York City.
Easton is the easternmost city in the Lehigh Valley, a region of 731 square miles that is home to more
than 800,000 people. Together with Allentown and Bethlehem, the Valley embraces the Allentown-Bethlehem-Easton
metropolitan area, including Lehigh, Northampton, and Carbon counties within Pennsylvania, and Warren County in
the adjacent state of New Jersey. This metropolitan area comprises Pennsylvania’s third-largest metropolitan area and
the state’s largest and most populous contribution to the greater New York City metropolitan area.
The greater Easton area consists of the city, three townships (Forks, Palmer, and Williams), and three boroughs
(Glendon, West Easton, and Wilson). Centre Square, the town square of the city’s Downtown neighborhood, is home
to the Soldiers’ & Sailors’ Monument, a memorial for Easton area veterans killed during the American Civil War. The
Peace Candle, a candle-like structure, is assembled and disassembled every year atop the Civil War monument for the
Christmas season.
The Norfolk Southern Railway’s Lehigh Line (formerly the main line of the Lehigh Valley Railroad), runs through
Easton on its way to Bethlehem and Allentown heading west and to Phillipsburg, New Jersey just across the Delaware
River. Easton is served by I-78, US 22, PA 33, PA 248 and PA 611. Trans-Bridge Lines provides regular bus service to
New York City. Air transport to and from Easton is available through Lehigh Valley International Airport, which is located approximately 15 miles west of the city, in Hanover Township. Bus transportation is provided by LANTA Metro
bus services.
Easton’s Two Rivers Landing is the home of two interactive children’s museums, the National Canal Museum, which
focuses on the importance of canals in the region, and the Crayola Factory, which is owned by Crayola LLC, a major
toy manufacturer based in nearby Forks Township. The city was also once the home of Dixie Cup Corporation, the
manufacturer of Dixie Cups and other consumer products. Majestic Athletic, current provider of uniforms for Major
League Baseball, is based in Easton.
www.easton-pa.com
NET LEASE INVESTMENT OFFERING
TENANT OVERVIEW
TENANT
OVERVIEW:
Arby’s Restaurant
Arby’s Restaurant Group, Inc. is a leading international quick-service restaurant company operating in the United
States. Arby’s is the second-largest quick-service fast-food sandwich restaurant chain in the U.S. in terms of units and
third in terms of revenue, franchising nearly 3,400 restaurants. Arby’s was the first nationally franchised, coast-to-coast
sandwich chain and has been serving fresh, craveable meals since it opened its doors in 1964.
Roark Capital Group acquired Arby’s in July 2011 and owns 81.5% of the company, with The Wendy’s Company
owning the other 18.5%. In addition to its classic Roast Beef and Beef ‘n Cheddar sandwiches, Arby’s products also
include deli-style Market Fresh line of sandwiches, Curly Fries and Jamocha Shakes. Its headquarters are in Sandy
Springs, Georgia.
Websites: www.arbys.com
Founded:
1964
Number of Locations:
3,400 ±
Number of Employ
74,000 ±
Headquarters:
Sandy Springs, Georgia
Owners:
Roark Capital Group (81.5%)
The Wendy’s Company (18.5%)
NET LEASE INVESTMENT OFFERING
Randy Blankstein
President
847.562.0003
[email protected]
Jimmy Goodman
Partner
847.562.8500
[email protected]
666 Dundee Road, Suite 1801
Northbrook, IL 60062
www.bouldergroup.com