KENTUCKY FRIED CHICKEN - Matthews€¦ · The information contained in this Offering Memorandum ......

™

Representative Photo

2251 JACKSBORO HIGHWAY, FORT WORTH, TX 76114KENTUCKY FRIED CHICKEN

OFFERING MEMORANDUM

CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of KFC located at 2251 Jacksboro Hwy, Fort Worth, TX 76114 (“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.

ii

TABLE OF CONTENTS

Mark CohenBroker of Record

License No. 447509

TABLE OF CONTENTS

2251 JACKSBORO HIGHWAY | FORT WORTH, TX 76114

KENTUCKY FRIED CHICKEN

™

Ryan MullerAssociate

License No. 01985081O 310.919.5786M [email protected]

Gary ChouVP & Director


01 . Execut ive Summary

03. Tenant Overv iew

05. Property Overv iew

11 . Demographics

12. Area Overv iew

EXECUTIVE SUMMARY

Investment Highlights

Actual Storefront

PROPERTY DETAILS

• Long Term Stabilized Income - 13 years left on the original lease term; 4 (four), 5 (five) year options

• Absolute NNN Investment – ZERO landlord responsibilities with maintenance, taxes and insurance paid by tenant for the landlord – Ideal for out of state investors looking for passive income

• Attractive Rental Escalations - Rare 10% rental escalations every 5 years

TENANT

• Strong Franchise Operator – Treadwell Enterprises is one of YUM! Brands most successful operators, having acquired or built 115 KFC and KFC multi-brand restaurants

LOCATION

• Located 3-miles from Downtown Fort Worth - Fort Worth is located in North Central Texas and is the 16th-largest city in the United States and the fifth-largest city in the state of Texas

• Texas Christian University and Naval Air Station Joint Reserve Base - Only 9-miles from TCU which enrolls over 10,300 students and directly down the street from the Naval Air Station which stations over 10,000 active duty military

• New Development - Brand new Walmart Supercenter was built directly behind the location less than two years ago. 2016 construction Whataburger, Jack in the Box and Advance Auto Parts are being built across the street.

• Busy Intersection of Jacksboro Hwy, River Oaks Blvd and Ephriham Ave - Seeing around 48,000 cars per day

• Growing Demographics – 1.54% growth 2000-2010; 3.81% growth 2010-2015; projected 4.14% growth 2015-2020 within a one mile radius

• Dense Demographics – An estimated 2016 population of 209,447 people in a 5-mile radius

• High Performing Store – Historical sales that are above the national average for KFC

• Texas is an income tax free state

Executive SummaryKENTUCKY FRIED CHICKEN

2251 Jacksboro Highway Fort Worth, TX 76114List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,940,000Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . .± 2,084 SFCAP Rate - Current. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.50%Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008Lot Size . . . . . . . . . . . . . . . . . . . . . . . . ± 0.49 Acres (21,334 SF)

Annualized Operating DataMonthly Rent Annual Rent Rent/SF CAP Rate

Present - 7/13/2019 $8,891.67 $106,700 $43.20 5.50%

7/13/2019 - 7/13/2024 $9,780.83 $117,370 $47.52 6.05%

7/13/2024 - 7/13/2029 $10,758.92 $129,107 $52.27 6.66%

Option 1 $11,834.81 $142,018 $57.50 7.32%

Option 2 $13,018.29 $156,219 $63.25 8.05%

Option 3 $14,320.12 $171,841 $69.57 8.86%

Option 4 $15,752.13 $189,026 $76.53 9.74%

Matthews Retail Advisors | 2

Tenant Summary

Tenant Trade Name KFC

Type of Ownership Fee Simple

Lease Guarantor Treadwell Enterprises (100+ locations)

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date 7/13/2009

Rent Commencement Date 7/13/2009

Lease Expiration Date 7/13/2029

Term Remaining on Lease 13 Years

Increases 10% Every 5 Years

Options Four (4), Five (5) Year

TENANT OVERVIEW



Property Name KFC

Property Type Net Leased QSR

Parent Company Trade Name Yum Brands, Inc.

Ownership Public

Credit Rating BBB

Rating Agency Standard & Poor’s

Revenue $23 B

Net Income $488.45 M

Stock Symbol YUM

Board NYSE

No. of Locations ± 18,000

No. of Employees (All) ± 24,000

Headquartered Louisville, KY

Web Site www.kfc.com

Year Founded 1952

KFC, or Kentucky Fried Chicken, 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, with 18,875 outlets in 118 countries and territories as of December 2013. Since the early 1990s, KFC has expanded its menu to offer other chicken products such as chicken fillet burgers and wraps, as well as salads and side dishes, such as French fries and coleslaw, desserts, and soft drinks. The company is a subsidiary of Yum! Brands, a restaurant company that also owns the Pizza Hut and Taco Bell chains.

YUM! Brands, Inc.

YUM! Brands, Inc., together with its subsidiaries, operates quick service restaurants. 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.

Tenant Overview


PROPERTY OVERVIEW


THE OFFERINGProperty Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . KFCProperty Address . . . . . . . . . . . . . . . . . 2251 Jacksboro Highway Fort Worth, TX 76114Assessor’s Parcel Number . . . . . . . . . . . . . . . . . . . . . 22564-1-1Zoning. . . . . . . . . . . . . . . . . . . . . . . . . F - General Commercial

SITE DESCRIPTIONNumber of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OneYear Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . ± 2,084 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . . ± 0.49 Acres (21,344 SF)Type of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . Fee SimpleParking . . . . . . . . . . . . . . . . . . . . . . . . . . ± 18 Surface SpacesParking Ratio . . . . . . . . . . . . . . . . . . . . . . . . . ± 8.64 : 1,000 SFLandscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . ProfessionalTopography. . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level

CONSTRUCTIONFoundation . . . . . . . . . . . . . . . . . . . . . . . . . . . .Concrete SlabFraming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .WoodExterior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BrickParking Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . .AsphaltRoof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Flat


Physical Description


River Oaks Blvd ± 18

,000 ADT

Jacksboro Hwy ± 30,000 ADT

Birds Eye


Tenant Map Matthews Retail Advisors | 8

Aerial


Regional


Population 1-Mile 3-Mile 5-Mile

2021 Projection 15,442 87,277 209,447

2016 Estimate 14,828 83,379 197,867

2010 Census 14,284 78,705 183,427

2000 Census 14,068 76,533 166,310

Growth 2016 - 2021 4.14% 4.67% 5.85%

Growth 2010 - 2016 3.81% 5.94% 7.87%

Growth 2000 - 2010 1.54% 2.84% 10.29%

Households 1-Mile 3-Mile 5-Mile

2021 Projection 4,698 29,918 76,253

2016 Estimate 4,473 28,221 71,397

2010 Census 4,237 25,906 65,242

2000 Census 4,308 24,660 57,775

Growth 2016 - 2021 5.02% 6.01% 6.80%

Growth 2010 - 2016 5.57% 8.94% 9.43%

Growth 2000 - 2010 -1.65% 5.05% 12.92%

Income 1-Mile 3-Mile 5-Mile

Income < $15,000 17.47% 15.96% 14.04%

Income $15,000 - $24,999 16.39% 14.12% 12.00%

Income $25,000 - $34,999 17.15% 14.78% 12.39%

Income $35,000 - $49,999 14.98% 14.79% 14.65%

Income $50,000 - $74,999 17.97% 18.28% 18.51%

Income $75,000 - $99,999 8.42% 8.64% 10.14%

Income $100,000 - $124,999 2.88% 4.61% 6.20%

Income $125,000 - $149,999 2.11% 3.11% 3.78%

Income $150,000 - $199,999 1.48% 2.52% 3.51%

Income $200,000 - $249,999 0.51% 0.94% 1.56%

Income $250,000 - $499,999 0.43% 1.48% 2.18%

Income $500,000+ 0.23% 0.77% 1.04%

2016 Est. Average Household Income $47,134 $58,553 $68,123

2016 Est. Median Household Income $34,416 $40,207 $46,852


Demographics

Fort Worth is located in North Central Texas and is the 16th-largest city in the United States and the fifth-largest city in the state of Texas. The city is the second-largest in the Dallas–Fort Worth–Arlington metropolitan area and has been designated as one of America’s “Most Livable Communities” by the Partners for Livable Communities. The city was established in 1849 as an Army outpost on a bluff overlooking the Trinity River. Today, Fort Worth still embraces its Western heritage and traditional architecture and design. USS Fort Worth (LCS-3) is the first ship of the United States Navy named after the city.

Fort Worth is home to the Van Cliburn International Piano Competition and several world-class museums designed by internationally known contemporary architects. With more than 109 acres of museum space, Fort Worth has the second-largest number of accredited museums within walking distance of each other, second only to Washington D.C. The Kimbell Art Museum, considered to have one of the best collections in Texas, is housed in what is widely regarded as one of Texas’ foremost works of modern architecture, designed by Louis Kahn with an addition by Renzo Piano. Also of note is the Modern Art Museum of Fort Worth, designed by Tadao Ando. The Amon Carter Museum of American Art, designed by Philip Johnson, houses one of the most extensive collections of American art in the world in a building.

The region benefits from more than 60 colleges and universities, with a combined enrollment exceeding 325,000 students, graduating in excess of 35,000 annually. The city is stimulated by several university communities: Texas Christian, Texas Wesleyan, University of North Texas Health Science Center, and Texas A&M University School of Law. The presence of Texas Christian University less than 5 miles from downtown and national competitiveness in football, baseball, and men’s and women’s basketball have sustained TCU as an important part of Fort Worth’s sports scene as well.

Fort Worth is a major center for industry, technology, distribution and transportation. Tourism is also a major contribution to the economy brining in approximately 7.5 million visitors and contributing over $900 million to Fort Worth’s economy. In 2013, Fort Worth-Arlington ranked 15th on Forbes’ list of the Best Places for Business and Careers. Fort Worth is the location of many multinational corporations, including Bell Helicopter, Lockheed Martin, American Airlines, BNSF Railway, Pier 1 Imports, and Radio Shack.

FORT WORTH, TEXAS AREA OVERVIEW


The Dallas–Fort Worth–Arlington, TX Metropolitan Statistical Area, the official title designated by the United States Office of Management and Budget, encompasses 13 counties within the U.S. state of Texas. Residents of the area refer to it as the Dallas/Fort Worth Metroplex, DFW, or The Metroplex. It is the economic and cultural hub of the region commonly called North Texas or North Central Texas and is the largest inland metropolitan area in the United States.

The 2015 official estimate U.S. Census has the Dallas–Fort Worth Metroplex at 7,102,796, making it the largest metropolitan area in the South. During the 12-month period from July 2008 to July 2009, the Dallas–Fort Worth–Arlington metropolitan area gained 146,530 new residents, more than any other metropolitan area in the United States. The area’s population has grown by about one million since the 2000 US census. The Dallas–Fort Worth–Arlington MSA is, by population, the largest metropolitan area in Texas, the largest in the South, the fourth-largest in the United States, and the tenth-largest in the Americas. The Metroplex encompasses 9,286 square miles (24,100 km2) of total area: 8,991 sq mi (23,290 km2) is land, while 295 sq mi (760 km2) is water, making it larger in area than the U.S. states of Rhode Island and Connecticut combined. It also has the fourth largest gross metropolitan product (GMP) in the United States, and approximately tenth largest by GMP in the world.

Dallas - Fort Worth Metroplex


Ryan MullerAssociate


™

Mark CohenBroker of Record License No. 447509

Gary ChouVP & Director


KENTUCKY FRIED CHICKEN - Matthews€¦ · The information contained in this Offering Memorandum ......

Documents

Transcript of KENTUCKY FRIED CHICKEN - Matthews€¦ · The information contained in this Offering Memorandum ......