Burger EXCLUSIVE King LISTING Sevierville, TN Actual Site SHEREE STROME, CCIM ASSOCIATE DIRECTOR (404) 900-5629 sstrome@calkain.com KEELEE PETERSON ASSOCIATE DIRECTOR (404) 492-9469 kpeterson@calkain.com CALKAIN.COM 1
Financial Summary 412 Forks Of The River Sevierville, TN 37862 Asking Price $1,745,400 Cap Rate 5.50% Net Operating Income (NOI) $96,000 Rent/Month $8,000 Rent/SF $29.26 Rentable Square Feet 3,280+/- SF Land Area 0.95+/- Acres Tenant Name Burger King Guarantor Blue Ridge Foods Rent Schedule Term Increases Annual Rent Monthly Rent Years 1-5 - $96,000 $8,000 Years 6-10 5% $100,800 $8,400 Years 11-15 5% $105,840 $8,820 Investment Highlights Downtown location Over 29,530 vehicles per day Updated to new Burger King branding August 2012 Gatlinburg MSA Ownership Type Lease Type Landlord Responsibilities Fee Simple NNN None Store Opened 1984 Store Remodel 2012 Lease Term Remaining Increases Rent Commencemnet 15 Years 5% Every 5 Years At Closing Lease Expiration 2032 Options Four (4), Five (5) Year 2
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About Burger King Tenant Overview Burger King is the second largest fast food hamburger chain in the world, trailing only McDonald s. For a non-investment grade net lease tenant, Burger King is a solid net lease investment, providing stability in an uncertain market. Burger King has been in business for 50 years and owns or franchises a total of 15,738 Burger King restaurants in approximately 100 countries and US territories worldwide. Of these restaurants, 15,667 are franchised, approximately 99.5 %, and 71 are company-owned. In 2014, Restaurant Brands International Inc. formed to serve as the indirect parent of Tim Hortons and its consolidated subsidiaries, and Burger King Worldwide and its consolidated subsidiaries. Since 2010, the Burger King brand has increased annual net restaurant growth by approximately four times, from adding 173 new units in 2010, to 631 new restaurants in 2015. This growth has made Burger King one of the fastest growing QSRs in the world. Burger King has implemented a modernization plan, and will offer incentives to franchisees who remodel their stores in the new modern format. About Blue Ridge Foods The tenant is Blue Ridge Foods which currently operates 19 Burger King Locations and 11 Panera Bread locations thru an affilated entity. Blue Ridge Foods has been in business since 1992 and the principals of the company have been in business since 1982. 4
Location Overview Louisville, KY Distance To: Knoxville, TN 29 miles Chattanooga, TN 139 miles Charlotte, NC Nashville, TN Louisville, KY 206 miles 208 miles 273 miles 75 Knoxville, TN Subject Site Sevierville, TN Nashville, TN Subject Site 81 Sevierville, TN Chattanooga, TN 75 Charlotte, NC 5
412 Forks Of The River Sevierville, TN Burger King Sevierville, TN Sevier County Jail E Main St 27,220 VPD Subject Site Forks Of The River 29,530 VPD Parkway 38,530 VPD Sevier County Special Education School Sevierville Parks & Recreation Landmark Inn Riverview Inn River Place Motel Rick s Service Center King Family Library Smoky Mountain Children s Home Sevierville Middle School 6
412 Forks Of The River Sevierville, TN Burger King Sevierville, TN Prince Street Court Avet Landmark Inn Forks Of The River 29,530 VPD Subject Site 7
Demographics Radius 1 Mile 3 Miles 5 Miles Population 2017 Population 4,720 15,856 29,646 2022 Population 4,908 16,680 31,386 2010-2017 Annual Rate 0.19% 1.04% 1.23% 2017-2022 Annual Rate 0.78% 1.02% 1.15% 2017 Male Population 49.2% 48.7% 49.1% 2017 Female Population 50.8% 51.3% 50.9% 2017 Median Age 37.0 39.0 39.5 Households 2017 Total Households 1,932 6,373 11,687 2022 Total Households 2,021 6,704 12,357 2010-2017 Annual Rate 0.31% 1.04% 1.18% 2017-2022 Annual Rate 0.90% 1.02% 1.12% 2017 Average Household Size 2.25 2.38 2.47 Median Household Income 2017 Median Household Income $32,576 $35,383 $37,985 2022 Median Household Income $35,197 $37,605 $40,636 2017-2022 Annual Rate 1.56% 1.23% 1.36% Average Household Income 2017 Average Household Income $47,978 $51,813 $55,044 2022 Average Household Income $55,935 $60,848 $64,657 2017-2022 Annual Rate 3.12% 3.27% 3.27% Per Capita Income 2017 Per Capita Income $20,358 $21,786 $22,213 2022 Per Capita Income $23,394 $25,350 $25,925 2017-2022 Annual Rate 2.82% 3.08% 3.14% 8
Demographics - 5 Mile Radius Burger King Sevierville, TN 9
Sevierville, TN Market Overview Located off of exit 407 of Interstate 40, Sevier County, TN is comprised of the three most popular cities in the state Pigeon Forge, Gatlinburg, and Sevierville. Over 12 million visitors choose Sevier County each year to enjoy great shopping, world-class theme parks, theaters and live entertainment, local festivals and events. Another big draw is the amount of awesome lodging choices particularly cabins. While many may think of cabins as being really rustic, Sevier County Tennessee cabins are more like log homes far from roughing it. Smoky Mountain cabin rentals very popular. You ll find over 7,000 to choose from in Sevier County alone. Facts: Approximately 12 million people visit Sevier County TN each year Approximately 10 million people visit Pigeon Forge each year The great Smokey Mountains National Park is the most visited National Park in the country Since its establishment in 1795, the County seat has been situated at Sevierville (Also named Sevior), the eight oldest city in Tennessee In 1986, Dolly Parton opened Dollywood Sevierville is a city in east Tennessee. To the south, Great Smoky Mountains National Park has forest trails and waterfalls. A statue of country singer Dolly Parton, a Sevierville native, is downtown by the 1896 beaux arts style courthouse. The Tennessee Museum of Aviation has vintage aircraft, including 2 rare P-47 Thunderbolts. To the east, the Forbidden Caverns are vast underground caves with calcite formations. Several major state and federal highways intersect in Sevierville. U.S. Route 441, commonly called The Parkway, connects Sevierville with Knoxville to the north and the national park and Cherokee, North Carolina to the south. The Sevierville section of U.S. 441 has been named Forks-of-the-River Parkway. State Route 66, also called Winfield Dunn Parkway, connects Sevierville with Interstate 40 to the north. U.S. Route 411 traverses Sevierville from east to west, connecting Sevierville with Blount and Cocke counties. State Route 416 connects Sevierville with Pittman Center and U.S. Route 321 at the park boundary to the southeast. 10
About Calkain Who Are We? Calkain Companies LLC is a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management. We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry. Our History Like most success stories, Calkain was formulated from humble beginnings. Jonathan W. Hipp, President and CEO, took the initiative to build upon his decades of experience and performance and left a large international brokerage firm to become an independent and innovative leader within the triple net lease investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in 2005. $11.5 Billion in Closed Transactions With the growth in staff, seasoned professionals have been attracted to Calkain s model of innovation, entrepreneurship and the fostering of long-lasting and meaningful relationships. Industry experts have joined Calkain in the hopes of implementing the skills they have honed in complementary aspects of real estate investment. Through a tremendous endeavor, tireless hours have been committed to continually prove that Calkain is America s Net Lease Company. Its countless accolades received from the world s leading business publications, including Forbes, Fortune and the New York Times have confirmed that Calkain is a true leader in triple net lease investing services. Client Testimonial USRA has worked with Calkain on numerous occasions. They have always been meticulous in their work ethic, providing superior service and extremely prompt attention to our needs. I highly recommend them. - Jack Genende, Partner U.S. Realty Advisors, LLC. (USRA) $350 Million in Active Listings SHEREE STROME, CCIM ASSOCIATE DIRECTOR (404) 900-5629 sstrome@calkain.com KEELEE PETERSON ASSOCIATE DIRECTOR (404) 492-9469 kpeterson@calkain.com CALKAIN.COM 11
Contact Us Corporate Headquarters Washington, DC 12930 Worldgate Drive Suite 150 Herndon, VA 20170 T: (703) 787-4714 F: (703) 787-4783 Fort Lauderdale 200 SW 1st Avenue Suite 880 Fort Lauderdale, FL 33301 T: (813) 282-6000 Atlanta 111 Village Parkway, Building 2 Suite 202 Marietta, GA 30067 T: (404) 900-5629 Boston 101 Federal Street Suite 1900 Boston, MA 02110 T: (617) 261-8584 CALKAIN.COM DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make 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.