KFC Taco Bell - Pauls Valley, OK

PAULS VALLEY, OK

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KFC-TACO BELL

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

PRICING & FINANCIAL ANALYSIS

NOTE: Rent and NOI are based on a 12 month return commencing May 2016.

Offering Summary

Price $2,375,000

Cap Rate 6.36%

Net Operating Income $150,975

Year Built 1999/2009

Gross Leasable Area 3,989 SF

Lot Size 0.92 Acres

LeaSe Summary

Lease Term 20 Years

Lease Commencement 5/05/2014

Lease Expiration 4/31/2034

Remaining Term 18 Years

Lease Type Absolute Net

Roof & Structure Tenant

Increases 1% Annually

Options 4 x 5 Year

Options to Purchase None

AnnuAlized OperAting dAtA

Years Commencement Annual Rent Increase

Yr 1: 5/05/2014 $148,000 -

Yr 2: 5/01/2015 $149,480 1.00%

Yr 3: 5/01/2016 $150,975 1.00%

Yr 4: 5/01/2017 $152,485 1.00%

Yr 5: 5/01/2018 $154,009 1.00%

Yr 6: 5/01/2019 $155,549 1.00%

Yr 7: 5/01/2020 $157,105 1.00%

Yr 8: 5/01/2021 $158,676 1.00%

Yr 9: 5/01/2022 $160,263 1.00%

Yr 10: 5/01/2023 $161,865 1.00%

Yr 11: 5/01/2024 $163,484 1.00%

Yr 12: 5/01/2025 $166,770 1.00%

Yr 13: 5/01/2026 $168,438 1.00%

Yr 14: 5/01/2027 $170,122 1.00%

Yr 15: 5/01/2028 $171,823 1.00%

Yr 16: 5/01/2029 $173,542 1.00%

Yr 17: 5/01/2030 $175,277 1.00%

Yr 18: 5/01/2031 $177,030 1.00%

Yr 19: 5/01/2032 $178,800 1.00%

Yr 20: 5/01/2033 $180,588 1.00%

net Operating incOme $150,975

KFC-Taco Bell2609 West Grant Avenue Pauls Valley, OK 73075

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KFC-TACO BELL


TENANT INFORMATION

Yum! Brands, Inc., or Yum!, is an American fast food company. A Fortune 500 corporation, Yum operates the licensed brands Taco Bell, KFC, Pizza Hut, and WingStreet worldwide. Prior to 2011, Yum! also owned Long John Silver’s and A&W Restaurants.

Based in Louisville, Kentucky, it is the world’s largest fast food restaurant company in terms of system units—more than 41,000 restaurants around the world in over 125 countries. In 2014, Yum!’s global sales totaled more than US $13 billion.

tenant Summary

Ownership Franchisee

Name Snider Bros. OF Pauls Valley LLC

Lease Guarantor Personal

Tenant KFC - Taco Bell

Rating BBB

Agency Standard & Poor’s

Ticker Symbol YUM

Exchange NYSE

Market Cap $38.96 Billion

Sales Volume $13 Billion

Number of Locations 41,000+

Years In Business 18 Years

Headquarters Louisville, KY

Website www.yum.com

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KFC-TACO BELL


INVESTMENT HIGHLIGHTS

• 20 Year Absolute Net Lease

• Zero Landlord Responsibility

• Annual Rent Escalations

• Strong Unit Sales

• Franchisee and Personal Guarantee

• 1999 Construction - Remodeled in 2009

• Location Has Been a YUM! Brands Concept Since 1973

• Highly Visible From Interstate 35 – with Traffic Counts Exceeding 81,000 Vehicles per Day

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AERIAL MAP

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KFC-TACO BELL


LOCAL MAP

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REGIONAL MAP

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MARKET SUMMARY

PAULS VALLEY, OK

Pauls Valley is a city in and county seat of Garvin County, Oklahoma, United States. The population was 6,187 at the 2010 census, a decline of 1.1 percent from 6,256 at the 2000 census. It was settled by and named for Smith Paul, a North Carolina native who married a Chickasaw woman and became a citizen of the Chickasaw Nation before the Civil War. The town economy is largely based on agriculture and oil production.As of the census of 2000, there were over 9,000 people, 2,475 households, and 1,591 families residing in the city. The population density was 749.9 inhabitants per square mile (289.5/km2). There were 3,007 housing units at an average density of 360.4 per square mile (139.2/km2). The racial makeup of the city was 79.27% White, 5.29% African American, 7.40% Native American, 0.66% Asian, 0.06% Pacific Islander, 3.47% from other races, and 3.85% from two or more races. Hispanic or Latino of any race were 7.53% of the population.

There were 2,475 households out of which 30.5% had children under the age of 18 living with them,

46.6% were married couples living together, 14.1% had a female householder with no husband present, and 35.7% were non-families. 32.0% of all households were made up of individuals and 17.4% had someone living alone who was 65 years of age or older. The average household size was 2.38 and the average family size was 3.00.

In the city the population was spread out with 24.4% under the age of 18, 9.2% from 18 to 24, 27.1% from 25 to 44, 20.6% from 45 to 64, and 18.7% who were 65 years of age or older. The median age was 38 years. For every 100 females there were 88.5 males. For every 100 females age 18 and over, there were 84.6 males.

The median income for a household in the city was $26,654, and the median income for a family was $32,348. Males had a median income of $27,014 versus $18,965 for females. The per capita income for the city was $15,553. About 12.9% of families and 20.7% of the population were below the poverty line.

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DEMOGRAPHIC SUMMARY

Geography: 5 Miles

Demographic data © 2015 esri

PoPulation

In 2014, the population in your selected geography is 8,124. The population has changed by 2.07% since 2000. It is estimated that the population in your area will be 8,164 five years from now, which represents a change of 0.48% from the current year. The current population is 48.58% male and 51.41% female. The median age of the population in your area is 38.3, compare this to the Entire US average which is 37.3. The population density in your area is 103.41 people per square mile.

HouseHolds There are currently 3,283 households in your selected geography. The number of households has changed by 4.94% since 2000. It is estimated that the number of households in your area will be 3,336 five years from now, which represents a change of 1.59% from the current year. The average household size in your area is 2.40 persons.

income In 2014, the median household income for your selected geography is $39,073, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 40.41% since 2000. It is estimated that the median household income in your area will be $47,010 five years from now, which represents a change of 20.31% from the current year.

The current year per capita income in your area is $22,239, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $54,277, compare this to the Entire US average which is $74,533.

Race and etHnicity The current year racial makeup of your selected area is as follows: 73.30% White, 4.91% Black, 0.02% Native American and 1.02% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 12.08% of the current year population in your selected area. Compare this to the Entire US average of 17.13%.

Housing In 2000, there were 2,088 owner occupied housing units in your area and there were 1,040 renter occupied housing units in your area. The median rent at the time was $290.

emPloyment In 2014, there are 4,067 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 47.58% of employees are employed in white-collar occupations in this geography, and 51.73% are employed in blue-collar occupations. In 2014, unemployment in this area is 4.89%. In 2000, the average time traveled to work was 19.8 minutes.

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DEMOGRAPHIC STATISTICS

pOpulAtiOn 1-Mile 3-Miles 5-Miles

2000 Population 550 6,491 7,959

2010 Population 550 6,421 8,175

2014 Population 558 6,371 8,125

2019 Population 560 6,339 8,164

traffic cOuntS

HOuseHOlds 1-Mile 3-Miles 5-Miles

2000 Households 196 2,585 3,129

2010 Households 198 2,650 3,314

2014 Households 200 2,620 3,284

2019 Households 201 2,636 3,336

2014 Average Household Size 2.64 2.41 2.41

2014 Daytime Population 292 3,389 4,067

2000 Owner Occupied Housing Units 62.66% 53.98% 55.07%

2000 Renter Occupied Housing Units 24.83% 28.54% 27.42%

2000 Vacant 12.51% 17.48% 17.51%



2014 Vacant 16.20% 16.28% 15.25%



2019 Vacant 16.66% 15.86% 14.66%

incOMe 1-Mile 3-Miles 5-Miles

$ 0 - $14,999 16.8% 19.7% 18.3%

$ 15,000 - $24,999 13.5% 13.3% 13.3%

$ 25,000 - $34,999 12.2% 14.0% 14.3%

$ 35,000 - $49,999 14.9% 15.4% 15.7%

$ 50,000 - $74,999 17.4% 19.0% 19.2%

$ 75,000 - $99,999 8.5% 6.8% 7.3%

$100,000 - $124,999 6.0% 6.1% 6.0%

$125,000 - $149,999 3.3% 2.0% 2.0%

$150,000 - $199,999 3.2% 2.0% 2.0%

$200,000 - $249,999 1.8% 0.7% 0.7%

$250,000 + 2.5% 1.1% 1.1%

2014 Median Household Income $43,454 $37,870 $39,073

2014 Per Capita Income $24,374 $22,170 $22,239

2014 Average Household Income $68,081 $53,194 $54,277

11,800

31,000

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 Vitorino Group and it should not be made available to any other person or entity without the written consent of Vitorino Group. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Vitorino Group.

This offering memorandum has been prepared to provide summary, unverified financial and physical 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. Vitorino Group has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Vitorino Group has not verified, and will not verify, any of the information contained herein, nor has Vitorino 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE VITORINO GROUP AGENT FOR MORE DETAILS.

CONFIDENTIALITY AGREEMENT

Vitorino Group hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, the Vitorino Group has not and will not verify any of this information, nor has the Vitorino Group conducted any investigation regarding these matters. The Vitorino Group makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. The Vitorino Group expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release The Vitorino Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Net Lease Disclaimer

Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker

who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER:The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER:The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY:A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

Information About Brokerage Services

intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction:

With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.

If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

(1) shall treat all parties honestly;(2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner;(3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and(4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.

exclusively listed

469.844.8880 | VITORINOGROUP.COM

KFC Taco Bell - Pauls Valley, OK

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