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  Bojangles'


Average Property & Lease

Average Sale Price$2,656,941
CAP Rate (12mo avg with 10+ lease term)5.90%
NOI$155,499
$/Square Foot$650
Building Size3,500 - 3,800 sf
Lot Size0.8 - 1.5 acres
Lease Term15 +/- Years
EscalationsVaries
CREDIT RATING
N/A
S&P
N/A
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

Bojangles' is a publicly traded company with a huge demand in the net lease world. The chain boasts 23 consecutive quarters of store sale growth and ranks top 5 for Fast Food by Zagat among large chains. Their freestanding stores features a 3,500 - 3,800 +/- SF building, and are usually situated on .8 - 1.50 acre of land. Bojangles' net leases properties provide a long-term investment with zero landlord responsibilities. Generally the lease term is 15 years NNN with 2-4 five year options with increases of 7-10% every 5 years. Some leases have an annual rental bumps ranging between 1.25% - 1.5%.

Pros

Cons

  • NNN lease eliminate Landlord responsibilities
  • Average unit volumes for the chicken-and-biscuit concept continue increasing
  • Long-term growth plan to have 1,000 units open by 2020
  • No credit rating
  • Tough competition
Tenant Description

Bojangles' is a highly differentiated and growing restaurant operator and franchisor dedicated to serving customers high-quality food made from Southern recipes. Since their founding in Charlotte, North Carolina in 1977, their core menu centered on "chicken 'n biscuits" has remained largely unchanged and has become an iconic brand with a cult-like following due to our famous, made-from-scratch biscuits baked every 20 minutes, their fresh, never-frozen bone-in fried chicken Legs and their famous iced tea.

Bojangles' went public in May 2015 on the NASDAQ and have since expanded to 662 restaurants. There are 281 company-operated restaurants and 378 franchised restaurants located in eleven states, including North Carolina, South Carolina, Georgia, Virginia, Tennessee, Alabama, Maryland, Florida, Kentucky, West Virginia and Pennsylvania, and the District of Columbia. Bojangles' opened 29 company-operated restaurants and 34 franchised restaurants by the end of 2015. They continue opening restaurants in our core North Carolina and South Carolina markets.

A typical Bojangles' restaurant is a modern, freestanding building, which is approximately 3,800 square feet in size and can seat approximately 70 customers. The restaurant locations are typically freestanding urban or suburban locations, and are located on approximately one acre of land and include a drive-thru window and approximately 45 parking space. The development cost to build a Bojangles' restaurant which includes the land, building and equipment of a new company-operated restaurant requires an average investment of approximately $2.2 million, including approximately $0.6 million for land, approximately $1.3 million for the building construction, which includes the building and site and soft costs, and approximately $0.3 million for equipment. They primarily utilize build-to-suit developments and equipment financing leases for their new company-operated restaurants, requiring minimal upfront cash investment. Each new restaurant under a build-to-suit development and equipment-financing lease typically requires an upfront cash equipment investment of approximately $85,000, and target a year one cash-on-cash return of approximately 129%.
BOJANGLES' TREND
CAP Rate

2015 avg: 6.24%

2016 avg: 5.91%

RECENT SALES

Doraville, GA

$2,885,000 | 5.25%

Lexington, SC

$2,853,306 | 6.20%

MORE INFO
www.bojangles.com