OFFERING MEMORANDUM Capital Markets | Net Lease Properties · recognized the buying power of the...

11431 W. SAMPLE RD., CORAL SPRINGS, FL 33065

Capital Markets | Net Lease PropertiesOFFERING MEMORANDUM

ACTUAL PROPERTY

SAWGRASS SPRINGS MIDDLE SCHOOL

COMMERCE PARK OF CORAL SPRINGS

COUNTRY CLUB OF

CORAL SPRINGS

MARK DRAZEKSenior Vice President Capital Markets | Net Lease Properties

+1 407 496 [email protected]

RAY ROMANOFirst Vice President Capital Markets | Net Lease Properties


PREPARED BY:

CBRE, Inc. | Licensed Real Estate Broker | © 2018 CBRE, Inc. All Rights Reserved

SAMPLE ROAD (34,500 AADT)

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TACO BELL | CORAL SPRINGS, FL

W SAMPLE ROAD (34,500 AADT)

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EXECUTIVE SUMMARY

Price: $1,375,300

Cap Rate: 4.25%

Annual Rent: $58,450

Tenant: Taco Bell Corporation

Initial Lease Term: 20 years

Remaining Lease Term: 17 years remaining

Rent Escalations: 10% every 5 years including options

Renewal Options: Four (4), Five (5) year options

Rent Commencement: 2016

Landlord Obligations: None – Absolute NNN

Existing Financing: No debt to assume

Building Size: 2,100± SF

Land Size: 1.19± acres

Parking Spaces: 59 spaces

Drive Through Lanes: Yes

Year Built: 2018

REPRESENTATIVE PHOTO

CBRE is pleased to present for sale this Absolute NNN Fee Simple Ground Lease Taco Bell located in the highly desirable Coral Springs, Florida market of South Florida. The subject property was constructed in 2016, is leased to Taco Bell Corporation and there are 17 years remaining on the original 20-year lease. The property is situated on a main thoroughfare in Coral Springs and benefits from exposure to over 34,500 vehicles per day. Neighboring retailers include Publix, Walgreens, McDonalds, 7-Eleven, and Dollar Tree.

investment highlights• Long-term corporate Taco Bell ground lease

• Fixed rental rate increases of 10% every 5 years through the term and renewal options

• Below market rent

• 17 years remaining on the original 20-year lease

• Absolute NNN - No landlord management obligations

• Densely populated South Florida market with a population of over 112,000 within 3-miles and in excess of 245,000 within 5-miles

• Strong daytime population with over 41,000 employees within 3-miles

• Above average household incomes of over $90,967 to $99,429 within 3 to 5 miles

• Irreplaceable QSR location in Coral Springs, a high barrier to entry market

• FLORIDA HAS NO STATE INCOME TAX

• No debt to assume

investment summary

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AREA OVERVIEW

Job growth prompting substantial retail development in Broward County

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Business is brighter in Coral Springs! As an award-winning and lively suburban community, the City of Coral Springs is one of the five largest cities in Broward County that continues to build for the future and embrace diversity. Exciting plans are underway to reinvigorate Downtown Coral Springs with mixed-use developments along the major corridors. Commercial and residential opportunities for

entrepreneurs, healthcare, professional, and technology industries continue to grow. Successful employers like First Data, ABB Optical, Broward Health, BJ’s Warehouse, Coral Springs Auto Mall, and Dicks’ Sporting Goods have recognized the buying power of the city’s young and affluent population by choosing to call Coral Springs home. The Corporate Park of Coral Springs, which currently has 69.12 acres of undeveloped land, is conveniently located with direct access to major highways like Sawgrass Expressway and Florida Turnpike, and only a short drive from all major seaports and airports. This Corporate Park is an ideal home for advanced manufacturing, corporate HQs, pharmaceutical, logistics, life sciences, distributions and emerging technologies.

DOWNTOWN PROJECTS

The City of Coral Springs and the Coral Springs Community Redevelopment Agency (CRA) are creating a vibrant and sustainable downtown in which Coral Springs’ residents, businesses, and visitors can live, work, shop, and entertain. Some of the City’s most recent investments include rezoning the downtown to promote mixed-use developments and replacing water and sewer lines in the downtown core. In addition, recently completed ArtWalk and the new Municipal Compels projects will serve as a catalyst to downtown redevelopment.

• The new 74,000 sq. ft. Municipal Complex building with a 607-space public-parking garage, located in the heart of downtown, is expected to be completed in October 2017.

• Private developments such as Cornerstone Plaza featuring a bank and a restaurant and Village Green featuring a coffee shop and an urgent care, are great additions to Downtown.

• Plans are underway to redevelop three City-owned sites located in the downtown core. This project will include a mixed-use development that creates a pedestrian-friendly environment with housing, retail, hospitality, entertainment, and creative office spaces.

• Healthcare facilities can be found only a couple miles away from downtown, including the$56 million expansion of Broward Health Coral Springs and the $55 million new construction of the Cleveland Clinic to be completed in 2018.

• Three new residential developments are located within a walking distance: Bainbridge Coral Springs (250 units); The Reserve at Coral Springs (80 townhouses and 168 multi-family units); and Coral Lago (188 single-family homes).

• The University Place at City Center has gone through major renovations in 2015, and its business office and retail spaces (210,000 sq. ft) became home to four new eateries in Coral Springs.

AREA OVERVIEW

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BETTER THAN EVER

Coral Springs is the premier community in which to live, work and raise a family. The City of Coral Springs is well known as one of the most successfully planned suburban communities in the country. Incorporated in 1963, the diversity, character and quality of our community attributes include: schools; parks; economic development; and fiscal integrity.

Named as one of the top 100 cities to live and start a family in the country because of its nationally recognized low-crime, excellent schools, parks within two miles of every neighborhood, Coral Springs is the 5th largest cities in Broward County that continues to build for the future and embrace diversity. Families come to stay and grow in Coral Springs and commercial opportunities for entrepreneurs, healthcare, professional, and technology industries continue to expand, making it a recruiting heaven for local employers.

The Corporate Park of Coral Springs is conveniently located with direct access to major highways like Sawgrass Expressway and Florida Turnpike, and only a short drive from all major seaports and airports. This Corporate Park is an ideal home for advanced manufacturing, corporate HQs, pharmaceutical, logistics, life sciences, distributions and emerging technologies.

Source: Coral Springs Econominc Development Office

AREA OVERVIEW

distance to

211Downtown

Sarasota

miles246 St. Petersburg

miles 58Tampa

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207Orlando

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47West Palm

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50Miami

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SAWGRASS EXPRESSWAY (68,700 AADT)

CORAL RIDGE DR (31,000 AADT)


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SAWGRASS EXPRESSWAY (68,700 AADT)


CORAL RIDGE DR (31,000 AADT)

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COUNTRY CLUB OF CORAL SPRINGS

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DEMOGRAPHIC BRIEF

11431 W SAMPLE RD

1 MILE 3 MILES 5 MILES

2018 Population - Current Year Estimate 20,627 112,133 245,511

2023 Population - Five Year Projection 21,540 116,973 259,428

2010 Population - Census 19,426 106,050 224,619

2000 Population - Census 19,520 100,696 210,115

2010-2018 Annual Population Growth Rate 0.73% 0.68% 1.08%

2018-2023 Annual Population Growth Rate 0.87% 0.85% 1.11%

2018 Households - Current Year Estimate 6,593 38,557 89,925

2023 Households - Five Year Projection 6,844 39,982 94,303

2010 Households - Census 6,259 36,821 83,646

2000 Households - Census 6,278 34,430 78,872

2010-2018 Annual Household Growth Rate 0.63% 0.56% 0.88%

2018-2023 Annual Household Growth Rate 0.75% 0.73% 0.96%

2018 Average Household Size 3.12 2.90 2.72

2018 Average Household Income $80,052 $99,429 $90,967

2023 Average Household Income $95,772 $114,406 $105,571

2018 Median Household Income $60,159 $73,254 $62,721

2023 Median Household Income $69,835 $81,477 $71,955

2018 Per Capita Income $25,631 $34,274 $33,382

2023 Per Capita Income $30,472 $39,174 $38,429

2018 Housing Units 7 ,073 41 ,415 98 ,141

2018 Vacant Housing Units 480 6.8% 2,858 6.9% 8,216 8.4%

2018 Occupied Housing Units 6,593 93.2% 38,557 93.1% 89,925 91.6%

2018 Owner Occupied Housing Units 2,959 41.8% 23,074 55.7% 60,752 61.9%

2018 Renter Occupied Housing Units 3,634 51.4% 15,483 37.4% 29,173 29.7%

2018 Population 25 and Over 13 ,632 77 ,029 173 ,377

HS and Associates Degrees 8,063 59.1% 41,381 53.7% 97,484 56.2%

Bachelor's Degree or Higher 4,006 29.4% 29,419 38.2% 60,449 34.9%

2018 Businesses 889 4,303 7,521

2018 Employees 8,176 41,345 71,080

©2018 CBRE. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are forexample only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the propertyfor your needs. Source: Esri Page 1 ProjectID:398555

POPULAT ION

HOUSEHOLDS

HOUSEHOLD INCOME

HOUS ING UN ITS

EDUCAT ION

PLACE OF WORK

DEMOGRAPHIC BRIEF

11431 W SAMPLE RD

NAME LATITUDE LONGITUDE

11431 W SAMPLE RD 26.2728714260109 -80.2786484745936

©2018 CBRE. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are forexample only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the propertyfor your needs. Source: Esri ProjectID:398555

AREA OVERVIEW

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AREA OVERVIEW

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AREA OVERVIEW


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Yum! Brands, Inc., based in Louisville, Kentucky, has over 45,000 restaurants in more than 140 countries and territories and is one of the Aon Hewitt Top Companies for Leaders in North America. In 2018, Yum! Brands was recognized as part of the inaugural Bloomberg Gender-Equality Index and ranked among the top 100 Best Corporate Citizens by Corporate Responsibility Magazine. In 2017, Yum! Brands was named to the Dow Jones Sustainability North America Index. The company’s restaurant brands – KFC, Pizza Hut and Taco Bell – are the global leaders of the chicken, pizza and Mexican-style food categories.

Our mission is to build the world’s most loved, trusted and fastest growing restaurant brands. We are evolving KFC, Pizza Hut and Taco Bell into iconic, distinctive and relevant global brands.

Yum! Brands, Inc. (NYSE: YUM) 2017 System Sales of over $46 billion.

REPRESENTATIVE PHOTO

Taco Bell is the nation’s leading Mexican-inspired quick service restaurant (QSR) brand. We serve made-to-order and customizable tacos and burritos, among other craveable choices, and are the first QSR restaurant to offer American Vegetarian Association (AVA)-certified menu items. Taco Bell and our more than 350 franchise organizations operate nearly 6,500 restaurants across the United States that proudly serve about 40 million customers every week.

We believe everyone deserves the right to Live Más – and we’re constantly inspired by the creativity it takes to get there. We provide access to sports, gaming and new music through our Feed The Beat® music program. We also uncover education opportunities and serve the community through the Taco Bell® Foundation™, and connect fans to their passions through programs like the Live Más Scholarship program.

Outside of our restaurants, people can always access the Taco Bell brand through our Mobile Ordering and Payment App. In 2014, Taco Bell became the first QSR to launch a mobile app at restaurants nationwide for both drive-thru and dining orders. In addition to the mobile app, people can order their favorite menu items via desktop on Ta.co or for delivery through our partnership with GrubHub.

While Taco Bell is primarily a U.S. brand, Yum! Brands plans to make it the Company’s third global brand. Outside the U.S., we have more than 400 Taco Bell units in 27 countries, excluding the Yum! China Division.

www.tacobell.com

TENANT DESCRIPTION

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AFFILIATED BUSINESS DISCLOSURECBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENTYour receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMERThis Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The

information contained in this Memorandumhas been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

© 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. Any projections, opinions, or estimates are subject to uncertainty. The information may not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

CONFIDENTIAL MEMORANDUM & DISCLAIMER

MARK DRAZEKSenior Vice President Capital Markets | Net Lease Properties


CBRE, Inc. | Licensed Real Estate Broker

RAY ROMANOFirst Vice President Capital Markets | Net Lease Properties


PREPARED BY

CBRE, Inc. | Licensed Real Estate Broker | © 2018 CBRE, Inc. All Rights Reserved

ACTUAL PROPERTY

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