KFC & TACO BELL - · PDF fileMatthews Retail Advisors | 7 Physical Description Property Name...

™2801 N BROADWAY, LOS ANGELES, CA 90031

KFC & TACO BELL

OFFERING MEMORANDUM

CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of KFC & Taco Bell located at 2801 N Broadway, Los Angeles, CA 90031 (“Property” ) . I t has been prepared by Matthews Retai l Advisors . This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors . The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

TABLE OF CONTENTS

04. Execut ive Summary

06. Property Overview

12. Tenant Overview

14. Area Overview

16. Demographics

2801 N BROADWAY, LOS ANGELES, CA 90031

KFC & TACO BELL

Gary ChouVP & Director

License No. 01911222O 310.919.5827M [email protected]

Kevin ChangAssociate


EXECUTIVE SUMMARY Investment Highlights

Property

• BELOW MARKET RENT - Tenant is currently paying $20.83/SF with annual rents only $32,162 annually

• NO MORE OPTIONS - Excellent opportunity to increase rents to market levels

• RECENTLY RENOVATED STORE - Tenant recently made improvements to this store, showing strength and commitment to location

• DEPRECIATION BENEFITS - As a leased fee, building can be depreciated to shelter income

Location

• HARD CORNER LOCATION - The property can be easily accessed by traffic from both North Broadway and Sichel St

• EXCELLENT DEMOGRAPHICS - Site benefits from dense Los Angeles demographics with over 36,000 people in a 1-mile radius; 359,000 people in a 3-mile radius; and 1,057,000 in a 5-mile radius

• STRONG TRAFFIC COUNTS - North Broadway supports over 29,000 VPD

• MINUTES AWAY FROM THE DODGER STADIUM - Dodger Stadium is less than 2 miles from this property

Tenant

• HIGHLY SUCCESSFUL NATIONAL CONCEPTS - KFC and Taco Bell together account for over 24,000 units

4 | KFC & Taco Bell

Matthews Retail Advisors | 5

Executive Summary

KFC & Taco Bell2801 N Broadway,Los Angeles, CA 90031

List Price ...............................................................................................$715,000

CAP Rate - Current ...................................................................................4.50%Gross Leasable Area ........................................................................± 1,443 SF Lot Size .......................................................................± 0.12 Acres (5,038 SF) Year Built ........................................................................................................1968

Annualized Operating DataMonthly Rent Annual Rent Rent/SF CAP Rate

Current - April 30, 2017 $2,680.19 $32,162 $20.83 4.50%

June 1, 2017 - April 30, 2018 $2,814.20 $33,770 $21.87 4.72%

June 1, 2018 - April 30, 2019 $2,954.91 $35,459 $22.97 4.96%

June 1, 2019 - April 30, 2020 $3,102.66 $37,232 $24.11 5.21%

June 1, 2020 - April 30, 2021 $3,257.79 $39,093 $25.32 5.47%

June 1, 2021 - April 30, 2022 $3,420.68 $41,048 $26.59 5.74%

Tenant Summary

Tenant Trade Name KFC & Taco Bell

Type of Ownership NNN

Lease Guarantor Personal

Lease Type Fee Simple

Roof and Structure Tenant Responsible

Original Lease Term 12 Years

Lease Commencement 12/21/2009

Rent Commencement 6/1/2010

Lease Expiration 6/1/2022

Term Remaining 5.68 Years

Increases 5% Annually

Options None

PROPERTY OVERVIEW

6 | KFC & Taco Bell


Physical Description

Property Name KFC & Taco Bell

Property Address 2801 N Broadway,

Los Angeles, CA 90031

Assesor’s Parcel Number 5204-021-006

Zoning LAC4

Site Description

Number of Stories One

Year Built 1968

Gross Leasable Area (GLA) ± 1,443 SF

Lot Size ± 0.12 Acres (5,038 SF)

Type of Ownership Fee Simple

Parking ± 8 Surface Spaces

Parking Ratio ± 5.18 : 1,000 SF

Landscaping Professional

Topography Generally Level

Construction

Foundation Concrete Slab

Framing Wood

Exterior Masonry

Parking Surface Asphalt

Roof Flat

8 | KFC & Taco Bell

Tenant Map


Regional Map

10 | KFC & Taco Bell Matthews Retail Advisors | 10

Aerial Map

Matthews Retail Advisors | 11 11 | KFC & Taco Bell

Bird’s Eye

N Broadway ± 29,000 ADT

Sichel St

TENANT OVERVIEW

12 | KFC & Taco Bell


Concept KFC & Taco Bell

Property Type Net Leased QSR

Parent Company Trade Name Yum Brands, Inc.

Ownership Public

Credit Rating BBB

Rating Agency Standard & Poor’s

Revenue $13.10 Billion

Net Income $1.29 Million

Stock Symbol YUM

Board NYSE

No. of Locations ± 42,000

No. of Employees (All) ± 505,000

Headquartered Louisville, KY

Web Site www.yum.com

Year Founded 1997

KFC, is a fast food restaurant chain that specializes in fried chicken. It is the world’s second largest restaurant chain (as measured by sales) after McDonald’s. Since the early 1990s, KFC has expanded its menu to offer other chicken products such as chicken fillet burgers, wraps, and salads along with common sides such as french fries and coleslaw, desserts, and soft drinks.

Taco Bell is a fast food restaurant that specializes in Tex-Mex foods. Since 1952, they have come to become the number one Mexican food outlet (as measured in number of locations). Their menu contains items like tacos, burritos, quesadillas, nachos and other specialty items.

Both are subsidiaries of YUM! Brands, Inc. which operates various quick service restaurants globally. Specifically, it operates in five segments: YUM China, YUM India, the KFC Division, the Pizza Hut Division, and the Taco Bell Division.

The company develops, operates, franchises, and licenses a system of restaurants, which prepare, package, and sell various food items. As of August 18, 2015, it operated approximately 41,000 restaurants in approximately 125 countries and territories primarily under the KFC, Pizza Hut, and Taco Bell brands, which specialize in chicken, pizza, and Mexican-style food.


The SouthlandAs the second largest metropolitan area in the United States, the Los Angeles Metropolitan Statistical Area, or the Southland, consists of both Los Angeles and Orange Counties. These two counties also make up the inner core of the Greater Los Angeles urbanized region. Los Angeles County, one of California’s original 27 counties, is one of the nation’s largest counties both in land area and population. With nearly 10 million residents, the Los Angeles population accounts for approximately 27 percent of California’s population. The area continues to grow, especially given the vigorous residential development in downtown LA.

Famously known for a heavily entertainment industry based economy, the Los Angeles metropolitan area attracts many visitors. Consequently, leisure and hospitality is also a leading industry and has experienced recent growth in employment. It is now the sixth largest hotel market in the United Sates. The Los Angeles-Orange County metro area alone has an enormous economy with an estimate $866 billion GMP. Together with Ventura, Riverside and San Bernardino Counties, Orange and Los Angeles county make up the Greater Los Angeles Area, a combined statistical area that is the third largest economic center in the world after the Greater Tokyo and New York metropolitan areas.

AREA OVERVIEW


Los Angeles, CaliforniaHip and historic, the city of Los Angeles is a global city with a diverse economy that is driven by international trade, entertainment, aerospace, technology, petroleum, fashion, apparel and tourism. It is the focal point of the larger Los Angeles metropolitan area and the Greater Los Angeles Area region.

Los Angeles is the largest manufacturing center in the western United States due to its geographic location. The contiguous ports of Los Angeles and Long Beach together comprise the fifth-busiest port in the world and the most significant port in the Western Hemisphere: It is vital to trade within the Pacific Rim.

Home to the Fortune 500 companies Occidental Petroleum, Health Net, Reliance Steel & Aluminum, AECOM, and CBRE, Los Angeles is teeming with career opportunities. The city is on the leading edge of several growth industries and is emerging as a leader in the expanding tech industry.

Downtown LA’s re-emergence has been stimulated by an influx of new residents, restaurants and major league sports. Crowds flock to the sports and entertainment combination of the Staples center, home to both the Lakers (NBA) and the Kings (NHL), and LA LIVE, which has become a local hotspot. The now Los Angeles Rams (NFL) play a few miles down the road at the Los Angeles Memorial Coliseum, just across the street from the University of Southern California campus. Dodger Stadium on the other hand is farther up north towards Echo Park and is home to the Los Angeles Dodgers (MLB).

Hollywood, Beverly Hills and Santa Monica have all influenced Los Angeles’ claim to fame. Visitors explore the TCL Chinese Theatre and the Hollywood Walk of Fame with the hope of encountering their favorite celebrities’ stars. Beverly Hills boasts the famous Rodeo Drive full of high-end shopping and world-class restaurants. The Santa Monica Pier and beach draw vacationers from all over the world year-round, and especially during the summer months.

The county coastline offers 75-miles of some of the world’s greatest beaches. Each seaside town is unique, offering charm and sophistication. From its near perfect weather to some of the world’s most iconic landmarks and attractions, Los Angeles holds many distinctions. It is one of the few cities in the world where it’s possible to ski in the morning and surf in the afternoon.


Demographics

Population 1-Mile 3-Mile 5-Mile

2021 Projection 36,176 359,118 1,057,350

2016 Estimate 34,571 343,912 1,017,276

2010 Census 32,824 327,051 976,481

2000 Census 31,965 324,455 989,226

Growth 2016-2021 4.64% 4.42% 3.94%

Growth 2010-2016 5.32% 5.16% 4.18%

Growth 2000-2010 2.69% 0.80% -1.29%

Households

2021 Projection 10,155 113,674 354,651

2016 Estimate 9,638 107,595 338,508

2010 Census 9,046 100,526 320,775

2000 Census 8,412 90,620 304,002

Growth 2016-2021 5.37% 5.65% 4.77%

Growth 2010-2016 6.54% 7.03% 5.53%

Growth 2000-2010 7.53% 10.93% 5.52%

Income

$0 - $15,000 17.49% 20.67% 18.07%

$15,000 - $24,999 20.69% 15.57% 15.14%

$25,000 - $34,999 13.15% 11.04% 11.55%

$35,000 - $49,999 14.56% 13.36% 13.86%

$501,000 - $74,999 16.35% 15.04% 15.37%

$75,000 - $99,999 8.34% 9.11% 9.22%

$100,000 - $124,999 4.64% 5.75% 5.85%

$125,000 - $149,999 2.30% 3.35% 3.51%

$1501,000 - $199,999 1.63% 3.26% 3.60%

$200,000 - $249,999 0.55% 1.28% 1.51%

$2501,000 - $499,999 0.25% 1.21% 1.70%

$5010,000+ 0.05% 0.36% 0.62%

2016 Est. Average Household Income $46,542 $56,552 $61,305

2016 Est. Median Household Income $33,985 $38,060 $40,672

™

Gary ChouVP & Director


Kevin ChangAssociate


KFC & TACO BELL - · PDF fileMatthews Retail Advisors | 7 Physical Description Property Name...

Documents

Transcript of KFC & TACO BELL - · PDF fileMatthews Retail Advisors | 7 Physical Description Property Name...