NET LEASED INVESTMENT OFFERING  Sonic (Ground Lease)3290 Olentangy River Road  Columbus, OH 43202     www.bouldergroup.com
TABLE OF CONTENTS      NET LEASED INVESTMENT OFFERING      TABLE OF CONTENTS1)    Confidentiality & Disclaimer2)    Execut...
CONFIDENTIALITY & DISCLAIMER                                            NET LEASED INVESTMENT OFFERING                    ...
EXECUTIVE SUMMARY                                               NET LEASED INVESTMENT OFFERING                            ...
PROPERTY OVERVIEW                             NET LEASED INVESTMENT OFFERING                           PROPERTY OVERVIEW P...
AERIALNET LEASED INVESTMENT OFFERING      AERIALwww.bouldergroup.com
SITE PLANNET LEASED INVESTMENT OFFERING     SITE PLANwww.bouldergroup.com
MAPNET LEASED INVESTMENT OFFERING        MAPwww.bouldergroup.com
TENANT PROFILE                                            NET LEASED INVESTMENT OFFERING                                  ...
DEMOGRAPHIC COMPARISON REPORT                           NET LEASED INVESTMENT OFFERING                    DEMOGRAPHIC COMP...
LOCATION OVERVIEW                                             NET LEASED INVESTMENT OFFERING                              ...
CONTACT INFORMATION                   NET LEASED INVESTMENT OFFERING                 CONTACT INFORMATION                66...
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Ground Lease for sale

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Sonic ground lease for sale in the Columbus MSA

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Ground Lease for sale

  1. 1. NET LEASED INVESTMENT OFFERING Sonic (Ground Lease)3290 Olentangy River Road Columbus, OH 43202 www.bouldergroup.com
  2. 2. TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING TABLE OF CONTENTS1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Aerial5) Site Plan6) Map7) Tenant Profile8) Demographic Comparison Report9) Location Overview10) Contact Information www.bouldergroup.com
  3. 3. CONFIDENTIALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING CONFIDENTIALITY CONFIDENTIALITY & DISCLAIMERThe information contained in the following Offering Memorandum is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving it from The Boulder Group and should not be made available toany other person or entity without the written consent of The Boulder Group. This Offering Memorandum has beenprepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. The Boulder Group has not made any investigation, and makes no warranty orrepresentation. The information contained in this Offering Memorandum has been obtained from sources webelieve to be reliable; however, The Boulder Group has not verified, and will not verify, any of the informationcontained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verify all of the information set forth herein. www.bouldergroup.com
  4. 4. EXECUTIVE SUMMARY NET LEASED INVESTMENT OFFERING EXECUTIVE SUMMARYThe Boulder Group is pleased to exclusively market for sale a single tenant Sonic restaurant ground lease property locatedin Columbus, Ohio. The property is located on a 51,199 square foot parcel in front of a free standing Kohl’s store andadjacent to a 182-unit apartment complex. The Ohio State University campus is less than one-half mile from the property,home to over 64,000 students and employs over 27,000 people. Additionally, Riverside Methodist Hospital, the largestmember hospital of OhioHealth healthcare system, is located one-quarter mile north of the property. The lease features a10% rental escalation in November 2018.The property is located along Olentangy River Road, a primary north-south thoroughfare in the area which travels souththrough the Ohio State University campus. Olentangy River Road runs parallel to Olentangy Freeway, which experiencestraffic volumes in excess of 71,000 vehicles per day creating constant traffic near the site. There are numerous nationalretailers along Olentangy River Road including Kohl’s, Kroger, Big Lots and PNC Bank. There are multiple hotels within theimmediate area including Hilton Garden Inn, Holiday Inn Express and Fairfield Marriott Inn, which provide the closestlodging to the university. The University of Ohio State campus and numerous student housing apartments are located lessthan one-half mile from the property, and the population is in excess of 311,000 within five miles of the property.Sonic’s original ground lease term was for 15 years and expires in October 2023 and has a 10% escalation in November2018. The ground lease features three 5-year renewal options with 10% rental escalations. Sonic is a publicly tradedcompany on the NASDAQ (SONC) and Houchens Industries inc. is a multi-billion dollar private company.INVESTMENT HIGHLIGHTS • Tenant’s parent company, Houchens Industries inc., has annual revenue of $3 billion • Located within the Columbus MSA • 10% rental escalation in the primary term in 2018 and in each renewal option • Zero landlord responsibilities • Less than one-half mile from Ohio State University campus (64,000 students) • One-quarter mile from Riverside Methodist Hospital • Nearby retailer include Kohl’s, Kroger, Big Lots and PNC Bank • Located on the hard corner of a signalized intersection • Close proximity to numerous hotels (closest lodging to the university) • Less than two miles from Interstate 71 (54,625 VPD) • Over 311,000 people living within five miles of the property www.bouldergroup.com
  5. 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEW Price: $964,615 Cap Rate: 6.50% Rent Schedule: NOI Escalation Date $ 62,700 1 $ 68,970 11/1/2018 $ 75,867 11/1/2023 (Option 1) $ 83,454 11/1/2028 (Option 2) $ 91,799 11/1/2033 (Option 3) Renewal Options: Three 5-year Lease Commencement Date: November 1, 2008 Lease Expiration Date: October 31, 2023 Tenant: Sonic Guarantor: Houchens Restaurants, LLC 2 Year Built 2008 Lease Type: NNN Ground Lease Rentable Square Feet: 1,620 Land Size: 1.17 acres(1) Seller will pay the differential between the current rent of $57,000, until the rent escalates in November 2013 to $62,700.(2) Houchens Restaurants LLC’s parent company, Houchens Industries, inc., has annual revenue of $3 billion. www.bouldergroup.com
  6. 6. AERIALNET LEASED INVESTMENT OFFERING AERIALwww.bouldergroup.com
  7. 7. SITE PLANNET LEASED INVESTMENT OFFERING SITE PLANwww.bouldergroup.com
  8. 8. MAPNET LEASED INVESTMENT OFFERING MAPwww.bouldergroup.com
  9. 9. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILESonic (NASDAQ: SONC) is an American drive-in fast-food restaurant chain based in Oklahoma City, Oklahoma. In2011, Sonic was ranked number 10 of the top 50 quick-service and fast-casual restaurant brands in the UnitedStates by QSR Magazine. Sonic operates over 3,500 restaurants in 43 U.S. states and serves over 3 millioncustomers per day. Sonic is known for their unique use of carhops on roller skates serving their drive-in customers.Houchens Restaurants, LLC is the operator and guarantees the lease. Houchens Restaurants, LLC is a wholly ownedsubsidiary of Houchens Industries, inc. Houchens Industries, inc. was founded in 1917 and is now among the largest100% employee-owned companies in the United States. Houchens has businesses in retail grocery and conveniencestores, quick-to-service restaurants, insurance, stock brokerage and several others businesses operating in over 30countries, including over 30 Sonic restaurants. Houchens Industries is ranked in the top 200 of America’s largestprivate companies and has revenue of nearly $3 billion annually. Today, Houchens Industries is wholly owned by its16,000 employees and is headquartered in Bowling Green, Kentucky.Sonic: www.sonicdrivein.comNumber of Locations: 3,561Stock Symbol: SONC (NASDAQ)Houchens Industries, inc www.houchensindustries.comNumber of Employees: 16,000+ www.bouldergroup.com
  10. 10. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORTPopulation 1-mi. 3-mi 5-miTotal Population 14,290 147,554 311,660Total Households 7,156 63,349 135,509IncomeMedian Household Income $39,798 $39,370 $39,492Average Household Income $53,276 $57,530 $57,982 www.bouldergroup.com
  11. 11. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEW Columbus is the largest city in the state of Ohio and the county seat of Franklin County. At the time of the 2010 U.S. Census Columbus had a population of 787,000, making it the most populous city in Ohio. Columbus has a diverse economy based on education, government, insurance, banking and energy. Columbus is most notably home to The Ohio State University. The Ohio State University is one of the world’s largest universities with a student population of over 64,000. Columbus has also emerged as a leader in the technology industry and is home to the world’s largest private research and development foundation, Battelle Memorial Institute. In 2009, BusinessWeek named Columbus the best place in the country to raise a family. Additionally, Columbus was ranked as America’s 20th best city by Bloomberg BusinessWeek.Columbus is home to five Fortune 500 corporations including Nationwide Mutual Insurance Company, AmericanElectric Power, Limited Brands, Momentive Specialty Chemicals and Big Lots. Other major employers in Columbusinclude JP Morgan Chase, Huntington Bancshares and Wendy’s. Columbus is most recognized as the home to TheOhio State University. Ohio State University is one of the largest universities in the world with a student population ofover 64,000 and over 27,000 employees.www.cityofcolumbus.org www.bouldergroup.com
  12. 12. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road Suite 1801 Northbrook, IL 60062Randy Blankstein Jimmy GoodmanPresident Partner847.562.0003 847.562.8500rblank@bouldergroup.com jimmy@bouldergroup.com www.bouldergroup.com

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