This document provides an offering memorandum for the net lease sale of a Burger King property located in New Braunfels, Texas. The 4,196 square foot property is triple net leased to Magic Fries, LLC, a subsidiary of Sun Holdings, which is the 9th largest franchise owner in the US. The lease has over 15 years remaining with rental escalations of 5% every 5 years. The property is located along a busy retail corridor with excellent visibility and access from Interstate 35.

1. BURGER KING
101 Farm to Market 306
New Braunfels, TX 78130
NET LEASE INVESTMENT OFFERING

2. TABLE OF CONTENTS
TABLE OF CONTENTS
II. Location Overview
Photographs
Aerials
Site Plan
Map
III. Market & Tenant Overview
Demographic Report
Market Overview
Tenant Overview
I. Executive Profile
Executive Summary
Investment Highlights
Property Overview
NET LEASE INVESTMENT OFFERING

3. 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

4. EXECUTIVE
SUMMARY:
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant net lease Burger King located in New
Braunfels, Texas. The property is strategically located along Interstate-35 in a dominant retail corridor. The Burger
King has excellent visibility to the approximately 115,000 vehicles per day that travel along Interstate-35. The
triple net lease features rental escalations in the primary term and in each renewal option period. The lease is
guaranteed by Magic Fries, LLC, the entity operating all of the Sun Holdings, Inc.’s Texas Burger King restaurants.
Sun Holdings, Inc. is the 9th largest total Franchise owner in the United States.
The 4,196 square foot Burger King building is strategically located along Interstate-35 in a dominant retail corridor
in the San Antonio–New Braunfels Metropolitan Statistical Area, approximately half way between Austin and
San Antonio. The Burger King has excellent visibility and direct on and off access to the approximately 115,000
vehicles per day that travel along Interstate-35. The Burger King is well located in a major retail destination. A
brand new HEB Plus grocery store was recently constructed across the street from the property. The property
is located across the interstate from the Town Center at Creekside, which is anchored by Target, JC Penney, Best
Buy, Belk, Dick’s Sporting Goods, TJ Maxx, Hobby Lobby and Creekside Cinemas 14. Additionally, the property
is benefitted by its proximity to the recently constructed Resolute Health Hospital (138 beds).
The Burger King is located in the immediate vicinity to a 1.3 million square foot Walmart distribution center that
employs over 1,000 people. The surrounding area is experiencing tremendous expansion with annual population
growth projected to be over 3% within three miles. There are approximately 63,000 people living within a five mile
radius earning average household incomes of $75,000.
The lease has over 15 years remaining and features 5% rental escalations in year 5, 10, and each renewal option
period. The lease is triple net and features zero landlord responsibilities. The Burger King lease is guaranteed by
Magic Fries, LLC, the entity operating all of the Sun Holdings, Inc.’s Texas Burger King restaurants. Sun Holdings,
Inc. is the 9th largest total Franchise owner in the United States.
NET LEASE INVESTMENT OFFERING

5. INVESTMENT
HIGHLIGHTS:
INVESTMENT HIGHLIGHTS
• Located within the San Antonio Metropolitan Statistical Area, approximately half way between Austin and
San Antonio on Interstate-35
• Long term lease with over 15 years remaining
• 5% rental escalations in year 5, 10, and each renewal option period
• Absolute triple net lease with no landlord responsibilities
• Over 3% annual projected population growth within three miles of the property
• Located along Interstate 35 with excellent visibility to approximately 115,000 VPD
• Dominant retail destination that features Target, JC Penney, Best Buy, Belk, Dick’s Sporting Goods, TJ
Maxx, Hobby Lobby and HEB Plus grocery store
• Immediate vicinity to a 1.3 million square foot Walmart distribution center that employs over 1,000 people
• Located in New Braunfels, the 2nd fastest growing city among those with more than 50,000 residents in
2015
• Tenant is required per the lease to remodel the premises to meet Franchisor’s current branding requirements
by December 2017
NET LEASE INVESTMENT OFFERING

6. PROPERTY
OVERVIEW:
PROPERTY OVERVIEW
Price: $2,054,733
Cap Rate: 6.00%
Net Operating Income: $123,284
Rental Escalations: 5% in Year 5, 10 & Each Renewal Option
Renewal Options: Three 5-Year
Lease Commencement Date: October 1, 2015
Lease Expiration Date: September 30, 2032
Tenant: Fritz Management, LLC
Guarantor: Magic Fries, LLC
Year Built: 2000
Lease Type: NNN (No Landlord Responsibilities)
Rentable Square Feet 4,196 SF
Lot Size: 0.78 Acres
NET LEASE INVESTMENT OFFERING

7. NET LEASE INVESTMENT OFFERING
PHOTOGRAPHS

8. NET LEASE INVESTMENT OFFERING
AERIAL
35
138-bed
(115,000 VPD)

9. NET LEASE INVESTMENT OFFERING
SITE PLAN
S
IN
TERSTATE
- 35 FRO
N
TAGE
RO
AD
(115,000VPD)
35
306

10. NET LEASE INVESTMENT OFFERING
MAPS
AUSTIN - 44 MILES
SAN ANTONIO - 36 MILES

11. NET LEASE INVESTMENT OFFERING
MAPS
AUSTIN - 44 MILES
SAN ANTONIO - 36 MILES

12. DEMOGRAPHIC
REPORT:
DEMOGRAPHIC REPORT
Population 1-Mile 3-Mile 5-Mile
Total Population 4,755 24,859 63,084
Total Households 1,689 9,197 23,465
Income 1-Mile 3-Mile 5-Mile
Average Household Income $70,071 $71,725 $74,982
NET LEASE INVESTMENT OFFERING

13. MARKET
OVERVIEW:
MARKET OVERVIEW
New Braunfels, Texas
New Braunfels is a city in Comal and Guadalupe counties in Texas. It is the seat of
Comal County and is a principal city of the San Antonio–New Braunfels metropolitan
statistical area. The city has a 2015 estimated population of 70,543 people and was the
nation’s second-fastest growing city among those with more than 50,000 residents in
2015, according to the U.S. Census Bureau.
New Braunfels was established in 1845 by Prince Carl of Solms-Braunfels, Commissioner General of the Noblemen’s
Society. Prince Solms named the settlement in honor of his home of Solms-Braunfels, Germany. The Noblemen’s
Society organized hundreds of people in Germany to settle in Texas. Immigrants from Germany began arriving at
Galveston in July 1844. By 1850, New Braunfels was the fourth-largest city in Texas.
The city is situated along the Balcones Fault, where the Texas Hill Country meets rolling prairie land. Along the fault in
the city, a string of artesian springs known as Comal Springs give rise to the Comal River, which is known as one of the
shortest rivers in the world, as it winds 3 miles through the city before meeting the Guadalupe River.
The town holds “Wurstfest”, a German-style sausage festival, every November, drawing on the city’s strong German
heritage. Every December, the town celebrates Wassailfest in the historic downtown. New Braunfels draws a large
number of tourists, particularly in the summer because of the cold-spring rivers that run through the city. New Braunfels
is the site of the original water park, the Schlitterbahn WaterPark Resort. The Ernest Eikel Skate Park attracts many skate
board enthusiasts.
nbtexas.org
NET LEASE INVESTMENT OFFERING

14. MARKET OVERVIEW
San Antonio, Texas
San Antonio is the seventh most populous city in the United States and the second most populous city in the state of Texas with a population of 1,409,019.
It was the fastest growing of the top 10 largest cities in the United States from 2000 to 2010, and the second from 1990 to 2000. San Antonio is the center
of the San Antonio–New Braunfels Metropolitan Statistical Area. Commonly referred to as Greater San Antonio, the metropolitan area has a population of
nearly 2.4 million based on the 2015 US Census estimate, making it the 25th-largest metropolitan area in the United States and third-largest in the state of
Texas. Growth along the Interstate 35 and Interstate 10 corridors to the north, west and east make it likely that the metropolitan area will continue to expand.
More than 26 million people visit San Antonio per year.
San Antonio is home to six Fortune 500 companies and the South Texas Medical Center, the only medical research and care provider in the South Texas
region. The Fortune 500 companies headquartered in San Antonio include Valero Energy Corporation, Tesoro Corporation, USAA, CST Brands Inc, NuStar
Energy, and Clear Channel. San Antonio is strategically located as a significant distribution hub for products exchanged between Mexico and the United
States. Over 50% of all goods exchanged between the US and Mexico travel through San Antonio.
The city is home to the five-time NBA champion San Antonio Spurs and hosts the annual San Antonio Stock Show & Rodeo, one of the largest such events
in the country. San Antonio is served by four major interstates: Interstate 35, Intestate 10, Interstate 37, and Interstate 410. The San Antonio International
Airport (SAT) is located in Uptown San Antonio, approximately eight miles north of Downtown.
www.sanantonio.gov
Austin, Texas
Austin is the capital of the Texas and the seat of Travis County. It is the 11th-most populated city in the U.S. and the 4th-most populated in Texas. It is
the fastest growing city in the United States and the second most populated capital city. As of the U.S. Census Bureau’s July 1, 2015 estimate, Austin has a
population of 931,830. Located in Central Texas in the foothills of Texas Hill Country, the city is home to numerous lakes, rivers, and waterways. It is the
cultural and economic center of the Austin–Round Rock metropolitan area, which had an estimated population of 2,064,149 as of June 1, 2016.
Austin is considered to be a major center for high tech. Thousands of graduates each year from the engineering and computer science programs at the
University of Texas at Austin provide a steady source of employees that help to fuel Austin’s technology and defense industry sectors. Austin is also emerging
as a hub for pharmaceutical and biotechnology companies; the city is home to about 85 of them. Whole Foods Market, the international grocery store chain,
was founded and is headquartered in Austin. Other companies based in Austin include Freescale Semiconductor, GoodPop, Temple-Inland, Sweet Leaf Tea
Company, Keller Williams Realty, National Western Life, GSD&M, Dimensional Fund Advisors, Golfsmith, Forestar Group, and EZCorp.
Austin is home to the University of Texas at Austin, the flagship institution of the University of Texas System with over 38,000 undergraduate students and
12,000 graduate students. In 2015 rankings, the university was ranked 53rd among “National Universities” (17th among public universities) by U.S. News
& World Report. UT has annual research expenditures of over $595 million and has the highest-ranked business, engineering, and law programs of any
university in the state of Texas.
www.austintexas.gov

15. Burger King
Burger King, often abbreviated as BK, is an American global chain of hamburger fast food restaurants headquartered
in unincorporated Miami-Dade County, Florida. The company began in 1953 as Insta-Burger King, a Jacksonville,
Florida-based restaurant chain. After Insta-Burger King ran into financial difficulties in 1954, its two Miami-based
franchisees, David Edgerton and James McLamore, purchased the company and renamed it Burger King. Over the next
half century, the company would change hands four times, with its third set of owners, a partnership of TPG Capital,
Bain Capital, and Goldman Sachs Capital Partners, taking it public in 2002. In late 2010, 3G Capital of Brazil acquired
a majority stake in BK in a deal valued at US$3.26 billion. The new owners promptly initiated a restructuring of the
company to reverse its fortunes. 3G, along with partner Berkshire Hathaway, eventually merged the company with
Canadian-based doughnut chain Tim Hortons under the auspices of a new Canadian-based parent company, Restaurant
Brands International.
Restaurant Brands International Inc. (“RBI”) is one of the world’s largest quick service restaurant companies with more
than $24 billion in system-wide sales and over 20,000 restaurants in more than 100 countries and U.S. territories. RBI
owns two of the world’s most prominent and iconic quick service restaurant brands – Tim Hortons and Burger King.
These independently operated brands have been serving their respective guests, franchisees and communities for over
50 years. RBI is a publicly traded company (NYSE: QSR) with a market capitalization in excess of $25 billion.
Website: www.bk.com
Founded: 1953
Number of Locations: 15,243
Headquarters: Miami, Florida
Parent Company: Restaurant Brands International Inc.
Parent Company Stock Symbol: NYSE: QSR
Market Capitalization: $25 billion
TENANT OVERVIEW
TENANT
OVERVIEW:
NET LEASE INVESTMENT OFFERING

16. Magic-Fries Holdings
Magic-Fries Holdings is the guarantor of the New Braunfels, Texas property. Magic-Fries Holdings is owned by
Guillermo Perales who is the CEO of Sun Holdings, Inc. Magic-Fries Holdings is the entity operating all of the Sun
Holdings, Inc’s Texas Burger King restaurants. Sun Holdings, Inc. is the 9th largest Franchise owner in the United
States. In total, Sun Holdings owns and operates 280 Burger Kings, 100 Popeye’s, 68 Arby’s, 24 Golden Corrals, 36 Cici’s
Pizza, 15 Krispy Kreme locations, 89 T-Mobile stores and 10 restaurants in different airports. Their operations have
created 14,000 local jobs, and they plan to continue to grow. Sun Holdings, Inc. was founded in 1997 by now President
and CEO Guillermo Perales.
In 2014 alone, he was awarded the Empire Builder Award from the Greater Dallas Hispanic Chamber of Commerce,
Multi Unit Franchisee Magazine ranked him seventh Multi Unit Brand, and the Dallas Business Journal ranked him first
Largest North Texas Hispanic Owned Business and Largest North Texas Minority Owned Business. Since 1997, he
has produced an annual growth rate of 50 percent for his company and quickly turned himself into the largest Latino
franchise owner in the United States.
TENANT OVERVIEW
TENANT
OVERVIEW:
NET LEASE INVESTMENT OFFERING

17. 666 Dundee Road, Suite 1801
Northbrook, IL 60062
www.bouldergroup.com
Randy Blankstein
President
847.562.0003
randy@bouldergroup.com
John Feeney
Vice President
847.562.9280
john@bouldergroup.com