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FILE PHOTO
EXCLUSIVE OFFERING | $2,000,000 – 4.25% CAP
Whataburger |Absolute nnn ground lease
803 W PRINCETON dr “HWY 380”, Princeton, TX
512.262.4099
SCOTT MYERS
[email protected]
BOB MOORHEAD
[email protected]
Property. New 3,578+ SF building on 1.19+ acres.
Tenant. Whataburger | Annual Revenue: $1.8 Billion | Average Unit Volume: $2.3 Million | Over 805+ locations nationwide
Lease structure. New 15-year, absolute NNN ground lease with 10% rent increases every 5 years during the initial term and option periods.
Location. Whataburger is strategically located along Highway 380 (27,000 VPD) at its intersection with Beauchamp Blvd. in the growing suburb of Princeton, TX.
Princeton is a northeast suburb of Dallas located in Collin County, the fastest growing county in Texas. Highway 380 is a major east/west artery that connects
several suburban developments on the north side of Dallas/Fort Worth, including Princeton, McKinney, Frisco, and Denton. Beauchamp Blvd. will connect the
property to numerous new residential developments, including Whitewing Trails, a new 2,800 home community just north of the site. Explosive housing growth
from numerous master-planned communities (over 5,300 homes proposed or in development) in the trade area is attracting an impressive roster of national retail
brands in the immediate vicinity of Whataburger. The subject property is surrounded by notable retail tenants including Walmart (Large Format 190,000 SF Super
Center), AT&T, Burger King, McDonalds, CVS, Taco Bell, Sonic, with additional developments underway expected to bring Chick-fil-A, Panda Express and others.
Table of contents | Disclaimer
Whataburger
803 W PRINCETON dr “HWY 380”, Princeton, TX
PAGE 1:
COVER
PAGE 2:
TABLE OF CONTENTS | DISCLAIMER
PAGE 3:
INVESTMENT | TENANT | LEASE OVERVIEW
PAGE 4:
IN THE NEWS
PAGE 5-7:
AERIAL PHOTOS
PAGE 8:
SITE PLANS
PAGE 9-10:
LOCATION OVERVIEW
PAGE 11-12:
LOCATION MAPS
PAGE 13:
DEMOGRAPHICS
Disclaimer
Trivanta (“Agent”) has been engaged as an agent for the sale of the property located at 803
W. Princeton Dr., Princeton, TX by the owner of the Property (“Seller”). The Property is
being offered for sale in an “as-is, where-is” condition and Seller and Agent make no
representations or warranties as to the accuracy of the information contained in this
Offering Memorandum. The enclosed materials include highly confidential information and
are being furnished solely for the purpose of review by prospective purchasers of the
interest described herein. The enclosed materials are being provided solely to facilitate the
prospective investor’s own due diligence for which it shall be fully and solely responsible.
The material contained herein is based on information and sources deemed to be reliable,
but no representation or warranty, express or implied, is being made by Agent or Seller or
any of their respective representatives, affiliates, officers, employees, shareholders,
partners and directors, as to the accuracy or completeness of the information contained
herein. Summaries contained herein of any legal or other documents are not intended to be
comprehensive statements of the terms of such documents, but rather only outlines of
some of the principal provisions contained therein. Neither the Agent nor the Seller shall
have any liability whatsoever for the accuracy or completeness of the information contained
herein or any other written or oral communication or information transmitted or made
available or any action taken or decision made by the recipient with respect to the Property.
Interested parties are to make their own investigations, projections and conclusions without
reliance upon the material contained herein. Seller reserves the right, at its sole and
absolute discretion, to withdraw the Property from being marketed for sale at any time and
for any reason. Seller and Agent each expressly reserves the right, at their sole and
absolute discretion, to reject any and all expressions of interest or offers regarding the
Property and/or to terminate discussions with any entity at any time, with or without notice.
This offering is made subject to omissions, correction of errors, change of price or other
terms, prior sale or withdrawal from the market without notice. Agent is not authorized to
make any representations or agreements on behalf of Seller. Seller shall have no legal
commitment or obligation to any interested party reviewing the enclosed materials,
performing additional investigation and/or making an offer to purchase the Property unless
and until a binding written agreement for the purchase of the Property has been fully
executed, delivered, and approved by Seller and any conditions to Seller’s obligations
hereunder have been satisfied or waived. By taking possession of and reviewing the
information contained herein, the recipient agrees that (a) the enclosed materials and their
contents are of a highly confidential nature and will be held and treated in the strictest
confidence and shall be returned to Agent or Seller promptly upon request; and (b) the
recipient shall not contact employees or tenants of the Property directly or indirectly
regarding any aspect of the enclosed materials or the Property without the prior written
approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied
or otherwise reproduced without the prior written authorization of Seller and Agent.
2
Investment overview
Whataburger
803 W PRINCETON dr “HWY 380”, Princeton, TX
Lease overview
PRICE | CAP:
$2,000,000 | 4.25%
Initial Lease Term:
NET OPERATING INCOME:
$85,000
Projected Occupancy / Rent Commencement:
May 2017
BUILDING AREA:
3,578+ Square Feet
Projected Lease Expiration:
May 2032
LAND AREA:
+1.19 Acres
Lease Type:
Absolute NNN Ground Lease
YEAR BUILT :
2017
Rent Increases:
10% Every 5-Years in Primary Term & Options
LANDLORD RESPONSIBILITY:
None
OCCUPANCY:
100%
Tenant overview
15-Years, Plus (3), 5-year Options to Extend
Years 1-5 Annual Rent (Current):
$85,000
Years 6-10:
$93,500
Years 11-15:
$102,850
Years 16-20 (Option 1):
$113,135
Years 21-25 (Option 2):
$124,448
Years 26-30 (Option 3):
$136,893
WHATABURGER REAL ESTATE, LLC
WHATABURGER | www.whataburger.com
Whataburger Restaurants, L.P. is a privately held, national restaurant chain specializing in hamburgers. The company, founded by Harmon Dobson, opened its
first restaurant in Corpus Christi, Texas in 1950 and is now headquartered in San Antonio, TX. The company began expansion outside of Texas in 1959 when its
21st store opened in Pensacola, FL. In 1963 Whataburger expanded its footprint into Arizona and had 205 locations in 12 states by 1977. In the late 1980s
Whataburger altered its growth strategy by increasing store numbers in states where it was already well established. Today, Whataburger Restaurants, LP is still
owned and operated by the Dobson family and has 805+ locations in ten states (Texas, Arizona, New Mexico, Oklahoma, Louisiana, Arkansas, Mississippi,
Alabama, Georgia, and Florida).
Whataburger has had sustained revenue growth over the last decade and currently brings in approximately $1.8 Billion dollars in U.S. system wide sales (FY’14).
Enhanced store productivity has been one of the company’s key strengths during the late 2000’s recession. One measure taken to increase per store revenue has
been the installation of contactless PayPass kiosks at over 500 locations. Whataburger restaurants are being deployed with Vivotech 4500M and DTc readers,
integrated devices designed to accept PayPass contactless payments. Between 2008 and 2010 the number of locations increased 2.38% while revenue increased
20.00%.
Whataburger has consistently added promotional and "limited time only" food products to its menu. Most of the limited-time-only products will be served for a set
period of time, such as the Honey BBQ Chicken Strip Sandwich, the A1 Thick and Hearty Burger, Patty Melt, and the Peppercorn Ranch Whatachick'n. These
products usually return on the menu again for a limited time after a few months. Some of their promotion products have sold so well that they have been added to
the menu permanently, namely the "Three Piece Chicken Strips" Whatameal and the Honey Butter Chicken Biscuit. Whataburger also has a breakfast menu and
serves breakfast sandwiches along with other items. Whataburger's breakfast menu is unique because it is served from 11:00 p.m. through 11:00 a.m. each day, a
wider window than most other fast-food restaurants, and all regular menu items are still available during breakfast service. Most Whataburger locations are now
open 24 hours a day and 7 days a week.
3
IN THE NEWS
Whataburger
803 W PRINCETON dr “HWY 380”, Princeton, TX
Highway 380 Corridor Expansion
By: Valerie Wigglesworth | Dallas News
Dallas, TX – March 15, 2017 - A Collin County study on the economic impact of turning U.S. Highway 380 into a limited-access highway may serve as a test case for
other areas. As congestion continues to plague Collin County's major transportation arteries, leaders are looking to build several major highways with service roads to
solve their traffic woes.
A new study by The Perryman Group showed that converting a section of U.S. Highway 380 into a limited-access highway would create a huge boom to the economy.
And while economic factors aren't the driving force for building new highways, the study offers new data for decision-makers. "I'm trying to build consensus on Collin
County having limited-access roadways," Collin County Commissioner Duncan Webb said after Monday's public hearing on the study. "The numbers are massive.“
Growing pains
The study, commissioned by Collin County, looked at the U.S. Highway 380 corridor from the Denton-Collin County border east to U.S. Highway 75 and included
property within a half-mile on either side of the roadway. The Perryman Group charged the county $278,600 plus expenses for the study. The Highway 380 corridor is
located within one of the fastest-growing areas in the country, study author Ray Perryman said at Monday's hearing.
He offered up some numbers: Since 2000, the U.S. population has grown 14 percent. During the same period, Texas grew by 32 percent. In comparison, Collin
County's population has grown more than 80 percent. And in the U.S. Highway 380 corridor, McKinney has seen 200 percent growth, Frisco has jumped 350
percent in population and Prosper has experienced a whopping 600 percent growth. As that growth continues, it "is going to start to strain infrastructure in a very
significant way," Perryman said. The study looked at economic changes between 2016 and 2040 if U.S. Highway 380 remains a six-lane road and what happens if
Highway 380 is converted to a limited-access highway with service roads.
Converting to a limited-access highway will change development patterns, attracting a lot more office space to the corridor, which in turn creates higher property values,
Perryman said. Overall, his study found 60 percent more employment and 170 percent more gross product with the conversion. The study noted that some homes and
businesses would be displaced by the expanded roadway but that the economic benefits far outweigh those losses. "From an economic perspective, this [conversion]
makes a great deal of sense," Perryman said.
Source: "Easing congestion on U.S. Highway 380 'not always about the bottom line and the dollar' | Collin County." Dallas News. N.p., 14 Mar. 2017. Web. 21 Mar.
2017. <http://www.dallasnews.com/news/collin-county/2017/03/14/easing-congestion-us-highway-380-always-bottom-line-dollar>.
4
Aerial photo
Whataburger
803 W PRINCETON dr “HWY 380”, Princeton, TX
Smith Elementary
(Opened 2016)
Godwin Elementary
Lacey Elementary
Community
Park
Downtown Princeton
Future Retail
Development
Huddleston Intermediate
Clark Middle School
Princeton
High School
300-Unit
Upscale
Multi-Family
190K SF Supercenter
* Land parcels not to scale
Future Retail
Development
5
Aerial photo
Whataburger
803 W PRINCETON dr “HWY 380”, Princeton, TX
Future Retail
Development
Future Retail
Development
Grove Pizza
Artisia Nail Spa
300-Unit
Upscale
Multi-Family
190K SF Supercenter
* Land parcels not to scale
6
Aerial photo
Whataburger
803 W PRINCETON dr “HWY 380”, Princeton, TX
300 Unit
Upscale MF
Future Retail
Development
Princeton
Business Park
190K SF Supercenter
Future Retail
Development
* Land parcels not to scale
7
Project Site plan
WHATABURGER
803 W PRINCETON dr “HWY 380”, Princeton, TX
190K SF Supercenter
8
Location overview
Whataburger
803 W PRINCETON dr “HWY 380”, Princeton, TX
PRINCETON, TX
Princeton is located in the U.S. Highway 380 corridor just east of McKinney and
approximately 33 miles northeast of the Dallas CBD. Since the 2000 US
Census, Princeton’s population has experienced a 51% growth rate and is
currently one of the fastest growing cities in North Texas. Princeton’s
convenient location along Highway 380 and available land for development has
opened opportunities for unprecedented retail and commercial growth,
including numerous large-scale planned residential communities. There are
currently over 5,300 housing units proposed or under construction within
a one-mile radius of Whataburger.
The Princeton Independent School District is a fast growing school system
covering approximately 60 square miles. Despite growth of 200 to 300 students
per year, the district is committed to maintaining small class sizes and excellent
student / teacher ratios. Thus, several new and renovation projects are
underway to accommodate the area’s growth projections.
IMMEDIATE TRADE AREA
Whataburger is strategically located along W Princeton Dr. (27,000 VPD) and
Beauchamp Blvd. in the Dallas suburb of Princeton, TX W Princeton Dr.
(Highway 380) is one of Princeton's main arterial roads and a main traffic
carrier across the suburban areas north of Dallas/Fort Worth, including
Princeton, McKinney, Frisco, and Denton. The Highway 380 corridor suburban
population is projected to surpass the population of Dallas County by year
2050.
The explosive growth of Collin County over the last several years
resulted in one of the nation’s highest population increases and it is
projected to grow another 80% over the next 13 years. The City of
Princeton is the next growth area in the Highway 380 corridor and as a result,
the immediate trade area has attracted numerous nationally known retail
brands to serve the many new residential communities. The subject property is
surrounded by notable national credit tenants such as Walmart (Large Format
190,000 SF Super Center), CVS, AT&T, Family Dollar, Dollar General,
AutoZone, O’Reilly, Burger King, Popeye's, Sonic, Dickey’s, Taco Bell,
Subway, and many more. Several additional retailers are in the negotiation and
planning phase, including Chick-fil-A, Panda Express, and Murphy Oil.
Explosive new housing growth with thousands of new single family and
multifamily homes under construction or in the planning stages will transform
this intersection in the near future.
COLLIN COUNTY, TX
Collin County, TX the fastest growing county in the entire state, is located in the
Dallas/Fort Worth Metroplex with a current population of 782,341. The county’s
population more than doubled, from 66,920 to 144,576, between 1970 and
1980 as companies such as JC Penney and Frito-Lay moved their corporate
headquarters to Collin County. That growth has continued unabated as the
county’s population has grown by at least 60% every decade since.
“At 80.3%, Collin County will lead North Texas in population growth from
2015 to 2030”
Currently, Collin County is one of the country’s fastest growing counties adding
an average of 100 new residents per day and eight of the ten fastest growing
cities in North Texas are located within the county. Companies headquartered
in Collin County, including Adams Golf, Alliance Data, Capital One Financial
Services, Dr. Pepper Snapple Group, Cinemark Theatres, Ericsson, HP
Enterprise Services, Rent-A-Center, and Yum! Restaurants International
provide a vibrant and diversified economic base. Additionally, Toyota’s North
American headquarters is in the process of relocating to Collin County, which
will account for approximately 4,000 jobs.
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9
Location overview
WHATABURGER
803 W PRINCETON dr “HWY 380”, Princeton, TX
DALLAS - FORT WORTH - ARLINGTON MSA
The Dallas – Fort Worth – Arlington Metropolitan Statistical Area (MSA) encompasses 13 counties within the U.S. state of Texas. It is the economic and cultural
hub of the region commonly called North Texas or the Metroplex and is the largest land-locked metropolitan area in the United States.
The projected Dallas-Fort Worth Metroplex population for 2016 was 7,268,910. During the 12-month period from July 2008 to July 2009, the Dallas-Fort WorthArlington metropolitan area gained 146,530 new residents, more than any other metropolitan area in the United States. The area's population has grown by
about 1 million since the last census was administered in 2000. The Dallas–Fort Worth–Arlington MSA is, by population, the largest metropolitan area in Texas,
the largest in the South, the 4th largest in the United States, and the 10th largest in the Americas. The metropolitan area has the 4th largest gross metropolitan
product (GMP) in the United States, and approximately 10th largest by GMP in the world.
The Metroplex has one of the highest concentrations of corporate headquarters in the United States. 20 Fortune 500 companies are headquartered in the area.
The city of Dallas alone has the 3rd largest concentration of Fortune 500 headquarters in the country. The Metroplex also contains the largest Information
Technology industry base in the state (often referred to as Silicon Prairie or the Telecom Corridor), due to the large number of corporate IT projects and the
presence of numerous electronics, computing and telecommunication firms. The Telecom Corridor located just north of Dallas in Richardson is home to more
than 5,700 companies including Texas Instruments which employs over 10,000 people at its headquarters. HP Enterprises Services, Dell Services, i2, AT&T,
Ericsson, CA and Verizon also have headquarters or major operations in and around Dallas. The Texas farming and ranching industry, based in Fort Worth adds
to the economic diversification of the area. Several major defense manufacturers, including Lockheed Martin, Bell Helicopter Textron, and Raytheon, maintain
significant operations in the Metroplex. ExxonMobil, the #1 corporation on the Fortune 500 listings, is headquartered in Irving, Texas.
10
Location map
Whataburger
803 W PRINCETON dr “HWY 380”, Princeton, TX
11
Location map
Whataburger
803 W PRINCETON dr “HWY 380”, Princeton, TX
12
Demographics
Whataburger
803 W PRINCETON dr “HWY 380”, Princeton, TX
803 W Princeton Dr
803 W Princeton Dr
1 mi radius 3 mi radius 6 mi radius
2,763
10,783
26,148
2016 Est. Civilian Employed
60.4%
60.8%
58.1%
2.2%
1.6%
1.9%
2016 Est. in Armed Forces
2016 Est. not in Labor Force
37.4%
37.6%
39.9%
2016 Labor Force Males
2016 Labor Force Females
48.6%
51.4%
49.2%
50.8%
49.3%
50.7%
1,078
5,155
12,263
11.4%
13.8%
13.5%
17.4%
16.8%
17.0%
16.2%
16.9%
17.9%
2010 Sales, Office
23.7%
25.2%
25.5%
2010 Farming, Fishing, Forestry
2010 Construction, Extraction, Maintenance
13.6%
0.2%
13.9%
0.4%
13.9%
2010 Production, Transport, Material Moving
16.9%
13.8%
11.9%
2010 White Collar Workers
2010 Blue Collar Workers
52.6%
47.4%
56.0%
44.0%
55.9%
44.1%
2010 Drive to Work Alone
78.5%
79.6%
78.1%
2010 Drive to Work in Carpool
13.5%
12.6%
11.2%
2010 Travel to Work by Public Transportation
2010 Drive to Work on Motorcycle
0.6%
0.2%
0.3%
0.2%
0.5%
0.2%
2010 Walk or Bicycle to Work
2010 Other Means
0.1%
2.8%
0.3%
1.6%
0.9%
3.0%
2010 Work at Home
4.2%
5.3%
6.1%
2010 Travel to Work in 14 Minutes or Less
18.6%
15.3%
16.9%
2010 Travel to Work in 15 to 29 Minutes
2010 Travel to Work in 30 to 59 Minutes
31.6%
37.9%
35.3%
36.5%
36.2%
36.0%
2010 Travel to Work in 60 Minutes or More
12.0%
12.9%
11.0%
28.1
29.1
27.8
2016 Est. Total Household Expenditure
2016 Est. Apparel
$59.4 M
$2.09 M
$251 M
$8.78 M
$673 M
$23.6 M
2016 Est. Contributions, Gifts
$3.90 M
$16.6 M
$47.1 M
2016 Est. Education, Reading
$2.29 M
$9.61 M
$26.9 M
2016 Est. Entertainment
$3.29 M
$14.0 M
$37.7 M
2016 Est. Food, Beverages, Tobacco
$9.24 M
$38.7 M
$102 M
2016 Est. Furnishings, Equipment
2016 Est. Health Care, Insurance
$1.99 M
$5.21 M
$8.54 M
$22.0 M
$23.1 M
$58.4 M
2016 Est. Household Operations, Shelter, Utilities
2016 Est. Miscellaneous Expenses
$18.5 M
$868 K
$77.7 M
$3.67 M
$209 M
$9.78 M
2016 Est. Personal Care
$771 K
$3.26 M
$8.70 M
2016 Est. Transportation
$11.2 M
$47.8 M
$126 M
14,055
16,465
33,585
39,126
2010 Census Population
2,420
11,152
29,341
2000 Census Population
Projected Annual Growth 2016 to 2021
1,436
3.4%
7,754
3.4%
20,717
3.3%
Historical Annual Growth 2000 to 2016
9.6%
5.1%
3.9%
2016 Estimated Households
1,215
4,749
11,415
2021 Projected Households
2010 Census Households
1,392
817
5,440
3,785
13,015
10,022
2010 Occupation: Population Age 16 Years or Over
2010 Mgmt, Business, & Financial Operations
2000 Census Households
503
2,724
6,787
Projected Annual Growth 2016 to 2021
Historical Annual Growth 2000 to 2016
2.9%
8.9%
2.9%
4.6%
2.8%
4.3%
2010 Professional, Related
2010 Service
13.7%
12.8%
2016 Est. Population 10 to 19 Years
16.1%
16.1%
15.2%
2016 Est. Population 20 to 29 Years
2016 Est. Population 30 to 44 Years
11.8%
19.9%
11.6%
19.2%
10.7%
17.7%
2016 Est. Population 45 to 59 Years
21.8%
22.2%
21.4%
2016 Est. Population 60 to 74 Years
2016 Est. Population 75 Years or Over
12.1%
3.9%
12.8%
4.4%
16.1%
6.2%
34.6
35.8
38.7
2016 Est. Male Population
2016 Est. Female Population
48.7%
51.3%
49.5%
50.5%
49.6%
50.4%
2016 Est. Never Married
30.3%
26.0%
26.0%
2016 Est. Now Married
50.1%
56.2%
53.5%
2016 Est. Separated or Divorced
2016 Est. Widowed
12.7%
6.9%
12.6%
5.2%
15.0%
5.6%
2016 Est. HH Income $200,000 or More
4.1%
3.7%
6.7%
2016 Est. HH Income $150,000 to $199,999
4.0%
4.9%
5.4%
2016 Est. HH Income $100,000 to $149,999
2016 Est. HH Income $75,000 to $99,999
10.7%
10.5%
13.5%
14.4%
13.9%
12.5%
2016 Est. HH Income $50,000 to $74,999
2016 Est. HH Income $35,000 to $49,999
16.3%
9.3%
16.6%
11.9%
15.6%
13.9%
2016 Est. HH Income $25,000 to $34,999
12.7%
11.0%
10.5%
2016 Est. HH Income $15,000 to $24,999
2016 Est. HH Income Under $15,000
6.9%
25.5%
6.1%
17.8%
8.2%
13.4%
2016 Est. Average Household Income
$59,222
$66,031
$77,913
2016 Est. Median Household Income
2016 Est. Per Capita Income
$44,561
$19,791
$55,065
$22,310
$62,046
$26,529
2016 Est. Total Businesses
95
347
1,068
2016 Est. Total Employees
509
2,032
8,485
OCCUPATION
14.4%
TRANSPORTATION
TO WORK
2016 Est. Population Under 10 Years
LABOR FORCE
3,636
4,262
TRAVEL TIME
MARITAL STATUS
& GENDER
2016 Est. Labor Population Age 16 Years or Over
2016 Estimated Population
2021 Projected Population
2016 Est. Median Age
INCOME
1 mi radius 3 mi radius 6 mi radius
Princeton, TX 75407
CONSUMER EXPENDITURE
AGE
HOUSEHOLDS
POPULATION
Princeton, TX 75407
2016 Est. Civilian Unemployed
2010 Average Travel Time to Work
13