Item 2. Properties
Item 2. Properties.
Corporate Offices
Our principal office is in leased office space in Minnetonka, Minnesota, and is rented on a month-to-month basis for $1,300 per month.
Burger Time Properties
The table below provides basic information about each of our Burger Time restaurants.
Location
Open Since
Building
(Approx.
Sq. Ft.)
Land
(Sq. Ft.)
Real Estate
Owner
Restaurant
Business Owner
Fargo, North Dakota
1987
600
35,000
BTND, LLC
BTND, LLC
Moorhead, Minnesota
1988
600
22,680
BTND, LLC
BTND, LLC
Grand Forks, North Dakota
1989
650
29,580
BTND, LLC
BTND, LLC
Waite Park, Minnesota
1989
700
17,575
BTND, LLC
BTND, LLC
Bismarck, North Dakota
1989
600
30,750
BTND, LLC
BTND, LLC
Sioux Falls, South Dakota
1991
650
17,688
BTND, LLC
BTND, LLC
Minot, North Dakota
1992
800
33,600
BTND, LLC
BTND, LLC
Ham Lake, Minnesota (3)
Closed
1,664
31,723
BTND LLC
(1) (3)
Richmond, Indiana (2)
held for sale
1,062
23,086
BTND IN, LLC (4) (5)
(2)
(1)
Closed January 19, 2025
(2)
The Richmond, Indiana, location closed in December 2018, and the property is being held for sale.
(3)
The Ham Lake location closed in January 2025 and alternatives for the property are currently being considered.
Until January 2025, we leased executive offices, consisting of approximately 1,000 square feet, located at 405 West Main Street, West Fargo, North Dakota, under a one-year rental agreement at the cost of $550 per month. In addition, effective January 2, 2022, we agreed to reimburse Brimmer Company, LLC, an affiliate of the Company, for the monthly rent of $1,300 on approximately 1100 square feet in Minnetonka, Minnesota, at 10501 Wayzata Blvd Ave S, Suite 102, where administrative activities are performed. Our office space is adequate for its intended purposes and our near-term expansion plans.
On June 28, 2021, we refinanced our BTND mortgage debt to mortgages bearing interest at 3.45%. As of December 29, 2024, we had $2,276,344 in contractual obligations relating to mortgages on the real property on which our Burger Time restaurants are situated. Our monthly required payment is approximately $22,000. We are also obligated under operating lease agreements to future payments totaling approximately $1,772,000, requiring monthly rental payments of approximately $25,000.
Keegan’s Seafood Grille
Upon the acquisition of Keegan’s assets in March 2022, we entered into a 132-month triple-net lease with an unrelated landlord for the property occupied by Keegan. The lease terms provide for an initial rent of $5,000 per month, increasing annually at the greater of 3% or the increase in the Consumer Price Index over that period. The location comprises approximately 2,900 square feet of dining, kitchen, and storage space and typical features for a full-service restaurant.
Pie In The Sky Coffee and Bakery
With our purchase of PIE assets in May 2022, we entered into a five-year triple-net lease for the property occupied by PIE with the seller of the assets that provides us with three five-year extensions at our option. The lease terms provide for an initial rent of $10,000 per month, increasing annually to approximately $11,000 per month during the first five-year term. The location comprises approximately 3,500 square feet of dining, kitchen, and storage space on two levels, with a production kitchen and storage and office space on the lower level; there is also approximately 1,500 square feet of outdoor dining, which is serviced by an outdoor service bar. The landlord granted us a right of first refusal to purchase the property on terms it receives from a third party during the entire term and any lease extension.
Schnitzel Haus
Concurrently with the May 13, 2024, purchase of Schnitzel Haus assets, we agreed to assume the remaining term of the former owners’ existing lease obligation on approximately 4,200 square feet. The Schnitzel lease expires January 1, 2028. Monthly lease payments are approximately $4,700 per month plus common area charges and is subject to annual escalation based on the Consumer Price Index of inflation.
Village Bier Garten
Our purchase of Village Bier Garten’s assets included a five-year lease for 3,000 square feet of restaurant space. The terms of the triple-net 60-month lease provided for an initial rent of $8,200 per month with an annual escalation of 3%. The lease includes three five-year renewal option periods. Following the end of the fiscal year of 2024, on January 2, 2025, we closed the VBG location and entered into an agreement to assign the lease.