Jared and Five Guys

Cedar Rapids, IA

The Opportunity

Summary

Price: $3,231,000
Cap Rate: 8.00%
NOI: $258,500
Lease Type: NNN Ground Lease
Rental Increases: 10% Every Five (5) Years
JARED
• Building Size: 4,571 SF
• Parcel Size: 0.51 Acres
• Year Built: 2016
• Lease Expirations: 10/31/2026
• Options: Four (4), Five (5) Year Options
FIVE GUYS
• Building Size: 2,613 SF
• Parcel Size: 0.43 Acres
• Year Built: 2017
• Lease Expirations: 2/28/2027
• Options: Two (2), Five (5) Year Options

Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in two single-tenant properties leased to Jared and Five Guys, (the “Property”) in Cedar Rapids, the second (2nd) most populous city in Iowa. Both Jared and Five Guys operate on triple net (NNN) ground leases, allowing for a hands-free, passive form of ownership. Additionally, both leases feature ten percent (10%) rental increases every five (5) years in their options. Jared and Five Guys are part of the Lindale Mall, located along Iowa Highway 100/Collins Road NE, a main thoroughfare in the active retail corridor boasting 34,000 VPD. The property can be easily accessed via two signalized intersections with Twixt Town Road and Lindale Dr NE. Many of the retailers surrounding Jared and Five Guys are some of the top performing locations within their chain, demonstrating Collins Rd NE corridor as one of the strongest in the state of Iowa. Over the last two (2) years, Red Lobster, Olive Garden, Perkins Bakery and Panda Express have all ranked within the top 92% of their respective chains. Moreover, the adjacent Kohl’s, Dicks Sporting Goods and Best Buy all rank within the top 80% amongst their respective chains during the same timeframe. Additionally, JOANN ranks in the top 75th percentile of all JOANN locations within Iowa based on the number of visits According to Placer.ai. Cedar Rapids is located within Linn County and is the second (2nd) most populous city in the state. Within five (5) miles of the property, the population of over 137,100 and over 57,900 households are up 9.81% and 11.90% since 2010, respectively. Both numbers are projected to continue to rise through 2027.

Investment Highlights:

• PRIME LOCATION – Jared and Five Guys are located along Iowa Highway 100/Collins Road NE, a main thoroughfare in the active retail corridor boasting 34,000 VPD. The property can be easily accessed via two signalized intersections with Twixt Town Road and Lindale Dr NE.

• NNN GROUND LEASES WITH RENTAL INCREASES – Both Jared and Five Guys operate on triple net (NNN) ground leases, allowing for a hands-free, passive form of ownership. Additionally, both leases feature ten percent (10%) rental increases every five (5) years in their options.

• BUSTLING SURROUNDING COMMERCIAL AREA – Within three (3) miles of the property there are over 14 million square feet of commercial space consisting of over 7 million square feet of retail space, 4 million square feet of industrial space and 3 million square feet of office space, further exemplifying this corridor as a central location for all commercial property types.

• STRONG PLACER.AI PERFORMING COLLINS ROAD NE CORRIDOR – Many of the retailers surrounding Jared and Five Guys are some of the top performing locations within their chain, demonstrating Collins Rd NE corridor as one of the strongest in the state of Iowa. Over the last two (2) years, Red Lobster, Olive Garden, Perkins Bakery and Panda Express have all ranked within the top 92% of their respective chains. Moreover, the adjacent Kohl’s, Dicks Sporting Goods and Best Buy all rank within the top 80% amongst their respective chains during the same timeframe. Additionally, JOANN ranks in the top 75th percentile of all JOANN locations within Iowa based on the number of visits According to Placer.ai.

• DENSELY POPULATED AREA – Cedar Rapids is the second (2nd) most populous city in the state. Within five (5) miles of the property, the population of over 137,100 and over 57,900 households are up 9.81% and 11.90% since 2010, respectively. Both numbers are projected to continue to rise through 2027.

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Five Guys
Retail
Jared

Tenants

Jared Snapshot

Ownership: SUBSIDIARY OF SIGNET JEWELERS (NYSE: SIG)

Credit Rating: BB- (S&P)

Headquarters: HAMILTON, BERMUDA

# of Locations: JARED: 200+ | SIGNET: ~2,800

Opening its first store in 1993, Jared currently operates as part of Signet Jewelers (NYSE: SIG), the world’s largest diamond retailer operating in the U.S., U.K., and Canada. Jared specializes in engagement and bridal jewelry gifts for all occasions, timepieces, and men’s and women’s fashion. They currently operate over 200 stores across the United States and Jared.com. Signet operates approximately 2,800 stores primarily under their name brands of Kay Jewelers, Zales, Jared The Galleria Of Jewelry, H.Samuel, Ernest Jones, Peoples and Banter. Additionally, the company's annual sales of approximately $6 billion derive from the retailing of jewelry, watches and associated services. As of Q2 Fiscal 2023, Signet’s total sales were $1.8 billion.

Five Guys Snaphot

Ownership: PRIVATE - FIVE GUYS HOLDINGS, INC.

Credit Rating: N/R

Headquarters: LORTON, VA

# of Locations: 1,700+

Five Guys Operations LLC is a corporate entity of Five Guys Burgers and Fries (“Five Guys”). Five Guys has been a staple of the Washington, DC area since opening in 1986. They are known for cooking up and serving hand-formed burgers made from fresh ground beef and fresh-cut fries cooked in pure peanut oil. Their menu allows customers to customize toppings for over 250,000 combinations. In 2021, Five Guys landed in Australia and was named to Forbes Best Large Employers List for the first time. After approximately 35 years in business, the business has grown to almost 1.700 units with another 1,500 units in development. They operate in locations across the United States, Canada, United Kingdom, Europe, Asia, and the Middle East. Most recently in June of 2023, Five Guys opened their first location in Seoul, South Korea.