TACO BELL & KFC - · PDF fileThis Offering Memorandum contains select information pertaining...

TACO BELL & KFC 1800 S WASHINGTON ST, KAUFMAN, TX 75142

OFFERING MEMORANDUM

™

R E T A I L A D V I S O R S

Representative Photo

Matthews Retail Advisors

CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Taco Bel l & KFC located at 1800 S Washington St , Kaufman, TX 75142 (“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.

EXCLUSIVELY LISTED BY:

Table of ContentsPRICING & FINANCIAL ANALYSIS

Investment Highlights ................................................... 2Executive Summary ..................................................... 3Company Overview ................................................... 4

PROPERTY DESCRIPTIONPhysical Description ..................................................... 6Regional Map ............................................................. 7Local Map .................................................................. 7Tenant Map ................................................................ 8

DEMOGRAPHICSCity Overview | Kaufman, TX ..................................... 10Demographics Report ................................................ 11

Gary ChouVP & Director DIRECT +1.310.919.5827 MOBILE +1.714.928.8016 [email protected] License No. 01911222

Kevin ChangAssociate DIRECT +1.310.919.5828 MOBILE +1.951.616.8918 [email protected] License No. 01976724

Mark CohenBroker of Record License No. 447509

Matthews Retail Advisors Representative Photo

Pricing & Financial Analysis

Taco Bell | MATTHEWS RETAIL ADVISORS | P. 2

• Absolute NNN investment with ZERO Landlord responsibilities.

• 10% increases every 5 years with 2, 10-year options to extend current lease.

• Operator is a growing Yum! Brand franchisee with 16 units throughout Texas!

• Dual-Concept Location - KFC and Taco Bell are widely successful and globally recognized brands with over 19,420 KFC locations and 6,206 Taco Bell Locations worldwide.

• Strong Tenant Mix – Taco Bell is surrounded by national tenants including Denny’s, Jack in the Box, Wells Fargo, Walmart, Brook-shire’s, McDonald’s, Pizza Hut, Dollar General, Whataburger and Subway with more development in the pipelines.

• Growing Demographics – 7.95% projected growth in a 1-mile radius and 5.74% growth in a 3-mile radius.

Investment Highlights

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS



Executive Summary

TACO BELL & KFC1800 S WASHINGTON ST KAUFMAN, TX 75142

List Price ........................................................................................... $1,096,000CAP Rate - Current ................................................................................. 13.00%Gross Leasable Area ..........................................................................2,628 SFLot Size ............................................................................................. 0.57 AcresYear Built ........................................................................................................1994

Annualized Operating DataMonthly Rent Annual Rent Rent/SF CAP Rate

Current - 10/31/2020 $11,874.13 $142,489.60 $54.22 13.00%

Option 1: 2021 - 2025 $13,061.55 $156,738.56 $59.64 14.30%

Option 1: 2026 - 2030 $14,367.70 $172,412.42 $65.61 15.73%

Option 2: 2031 - 2035 $15,804.47 $189,653.66 $72.17 17.30%

Option 2: 2036 - 2040 $17,384.92 $208,619.02 $79.38 19.03%

Lease Summary

Tenant Trade Name Taco Bell & KFC

Type of Ownership Fee Simple

Lease Guarantor Franchisee

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencment 10/31/2000

Lease Expiration Date 10/31/2020

Term Remaining 4.42

Increases 10% Every 5 Years

Options 2, 10-Year Options to Extend

Right of First Refusal 20 Days

Option to Purchase Waived



Company Overview

Property Name Taco Bell & KFC

Property Type Net Leased Quick Service Restaurant

Parent Company Trade Name Yum! Brands, Inc.

Ownership Public

Credit Rating BBB/Baa3

Rating Agency S&P/Moody’s

Revenue $13.28 Billion

Net Income $1.05 Billion

Stock Symbol YUM

Board NYSE

No. of Locations ±41,000

No. of Employees ±537,000

Headquartered Louisville, KY

Web Site http://www.yum.com/

Year Founded 1997

Yum! Brands, Inc., (NYSE: YUM), based in Louisville, Kentucky, is one of the world’s largest restaurant companies with over 41,000 restaurants in more than 125 countries and territories. Yum! Brands is ranked #216 on the FORTUNE 500 list with revenues of more than $13 billion and in 2014 was named among the 100 Best Corporate Citizens by Corporate Responsibility Magazine and one of the Aon Hewitt Top Companies for Leaders in North America. Our restaurant brands – KFC®, Pizza Hut® and Taco Bell® – are the global leaders of the chicken, pizza and Mexican-style food categories.

Since its spin-off from PepsiCo in 1997, Yum! Brands has become a truly global company going from approximately 20 percent of profits coming from outside the U.S. to almost 70 percent in 2014. It is a leader in international retail development, opening on average over five new restaurants per day outside the U.S. in 2014.

Yum! Brands has a portfolio of brands with leadership positions in China and other emerging markets, with a long runway for growth. It is the worldwide leader in emerging markets with more than 15,000 restaurants, nearly twice as many as the nearest competition. With only 2 restaurants per million people in the top 10 emerging markets, compared to 57 restaurants per million in the U.S., we are on the ground floor of global growth.

Source: http://www.yum.com/company/

Property Description



Physical Description

THE OFFERING

Property Name .............................................................................Taco Bell & KFC

Property Address .............................................................1800 S Washington St

Kaufman, TX 75142

Assessor’s Parcel Number ..........................................................................36725

SITE DESCRIPTION

Number of Stories .............................................................................................One

Year Built .............................................................................................................1994

Gross Leasable Area (GLA) ....................................................................2,628 SF

Lot Size................................................................................................... 0.57 Acres

Type of Ownership ...............................................................................Fee Simple

Parking ..................................................................................... 34 Surface Spaces

Parking Ratio................................................................................. 12.94 : 1,000 SF

Landscaping ........................................................................................Professional

Topography ................................................................................... Generally Level

CONSTRUCTION

Foundation .......................................................................................Concrete Slab

Framing .............................................................................................................Wood

Exterior ............................................................................................ Painted Stucco

Parking Surface ............................................................................................Asphalt

Roof ........................................................................................................................Flat



Regional Map

Local Map



Tenant Map

Demographics


PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICSPRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

City Overview | Kaufman, TX

Kaufman is a cozy suburb of the Dallas MSA that offers big city amenities and resources with a small town touch. Just a short drive from Dallas, the city is located southeast of the Dallas/Fort Worth metroplex, giving access to a plethora of dining, entertainment and business opportunities.

Taking a pro-business approach, the Kaufman Economic Development Corporation has been working diligently to attract new busi-ness and retail to the area by incentivizing development with a non-union environment, ample water, low cost of utilities, raw land and new zoning ordinances. Most recently, a Walmart was built with more proposed developments soon to follow.

As for the city, Dallas is a one of the major cities in Texas and is the largest urban center of the fourth most populous metropolitan area in the United States. With strong demographic statistics, Dallas supports its diversity with strong retail, boasting more shopping cen-ters per capita than any other U.S. city. Additionally, the Dallas Farmers Market, open daily in downtown, is one of the largest open-air markets in the country.

Essential to the city experience, at least a dozen entertainment districts can be found near downtown, each offering its own mix of culture, shopping and dining. In addition, Dallas is home to six professional sports teams such as the Dallas Cowboys (NFL), Dallas Mavericks (NBA), Dallas Stars (NHL), Dallas Desperados (AFL), FC Dallas (MLS) and Texas Rangers (MLB).



Demographics ReportPopulation 1-Mile 3-Mile 5-Mile2020 Projection 4,862 8,508 12,7732015 Estimate 4,837 8,433 12,4912010 Census 4,880 8,473 12,3522000 Census 4,520 8,013 11,138Growth 2015-2020 7.95% 5.74% 10.90%Growth 2010-2015 -0.88% -0.47% 1.12%Growth 2000-2010 0.52% 0.89% 2.26%

Households2020 Projection 1,713 2,952 4,3612015 Estimate 1,694 2,908 4,2532010 Census 1,691 2,880 4,1702000 Census 1,565 2,682 3,737Growth 2015-2020 8.03% 7.39% 11.60%Growth 2010-2015 0.20% 0.95% 1.98%Growth 2000-2010 1.09% 1.51% 2.54%

Income$0 - $15,000 14.88% 14.71% 13.91%$15,000 - $24,999 11.88% 11.55% 10.36%$25,000 - $34,999 13.42% 12.61% 12.02%$35,000 - $49,999 15.55% 15.26% 14.88%$50,000 - $74,999 16.47% 16.29% 17.77%$75,000 - $99,999 11.67% 11.38% 11.72%$100,000 - $124,999 6.32% 7.03% 7.80%$125,000 - $149,999 4.19% 4.57% 4.86%$150,000 - $199,999 3.80% 4.35% 4.33%$200,000 - $249,999 1.16% 1.46% 1.45%$250,000 - $499,999 0.58% 0.65% 0.75%$500,000+ 0.08% 0.12% 0.15%

2015 Est. Average Household Income $58,802 $61,494 $63,807

2015 Est. Median Household Income $44,465 $45,927 $48,816

Matthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.Matthews.com

TACO BELL & KFC1800 S Washington StKaufman, TX 75142OFFERING MEMORANDUM

™

Mark CohenBroker of Record License No. 447509

Gary ChouVP & Director DIRECT +1.310.919.5827 MOBILE +1.714.928.8016 [email protected] License No. 01911222

Kevin ChangAssociate DIRECT +1.310.919.5828 MOBILE +1.951.616.8918 [email protected] License No. 01976724

Representative Photo

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