1922 West Osage Street Pacific, Missouri O F F E R I N G M E M O R A N D U M

Transcription

1 KFC 1922 West Osage Street Pacific, Missouri O F F E R I N G M E M O R A N D U M

2 Table of Contents Financial Overviews Investment Highlights & Overview Disposition Range Lease Summary Concept/Tenant Overview Location Overviews Location Highlights & Overview Surrounding Aerial Map Property Photos Surrounding Area Photos Demographics Population Income Employment

3 1922 West Osage Street Pacific, Missouri PRICE: $1,058, % CAP RENT: $62,992 FINANCIAL OVERVIEW PROPERTY DESCRIPTION Property KFC Property Address 1922 West Osage Street City, State, ZIP Pacific, Missouri Year Built 2002 Building Size (SF) 3,728 Lot Size (Acres) 1.00 Acre Type of Ownership Fee Simple THE OFFERING Price $1,058,689 CAP Rate 5.95% Annual Rent $62,992 Rent / SF $16.90 Price / SF $284 HIGHLIGHTS Brand New 20-Year Triple-Net (NNN) Sale-Leaseback 1.25% Annual Rental Increases Starting in Year 6 Four (4), Five (5)-Year Tenant Renewal Options Located 34 Miles from Downtown St. Louis 68-Unit Guarantee from Morgan Foods Inc. LEASE SUMMARY Property Name KFC Property Type Net Leased Restaurant Ownership Private Tenant / Guarantor 68-Unit Franchisee Guarantee Lease Term 20 Years Lease Commencement Close of Escrow Lease Expiration 20 Years from Close of Escrow Lease Term Remaining 20 Years Lease Type Triple-Net (NNN) Roof & Structure Tenant Responsible Options to Renew Four, Five-Year Options Rental Increases 1.25% Starting in Year 6 Thisinformation has been secured from sources we believeto be reliable, but we make norepresentations 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. Marcus & Millichap Real Estate Investment Services is a 3 service mark ofmarcus & Millichap RealEstate Investment Services, Inc Marcus & Millichap 3

4 1922 West Osage Street Pacific, Missouri PRICE: $1,058, % CAP RENT: $62,992 ANNUALIZED OPERATING DATA FINANCIAL OVERVIEW Lease Year Annual Rent Monthly Rent Years 1 5 $62,992 $5,249 Year 6 $63,779 $5,315 Year 7 $64,577 $5,381 Year 8 $65,384 $5,449 Year 9 $66,201 $5,517 Year 10 $67,029 $5,586 Year 11 $67,867 $5,656 Year 12 $68,715 $5,726 Year 13 $69,574 $5,798 Year 14 $70,443 $5,870 Year 15 $71,324 $5,944 Year 16 $72,216 $6,018 Year 17 $73,118 $6,093 Year 18 $74,032 $6,169 Year 19 $74,958 $6,246 Year 20 $75,895 $6,325 CAP Rate 5.95% Purchase Price $1,058,689 INVESTMENT SUMMARY Marcus & Millichap is pleased to present the exclusive listing for a KFC located at 1922 West Osage Street in Pacific, Missouri. Built in 2002, the property consists of 3,728 square feet of building space and sits on 1.00 acre of land. This KFC property is subject to a brand new 20-year triple-net (NNN) saleleaseback that will commence at the close of escrow. The current rent is $62,992 and is subject to 1.25% annual rental increases beginning in year 6. Additionally, the tenant has four, five-year renewal options. The lease is guaranteed by Morgan Foods Inc., a 68-unit entity. Thisinformation has been secured from sources we believeto be reliable, but we make norepresentations 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. Marcus & Millichap Real Estate Investment Services is a 4 service mark ofmarcus & Millichap RealEstate Investment Services, Inc Marcus & Millichap 4

5 TENANT Demographics OVERVIEW About KFC: KFC Corporation, based in Louisville, Kentucky, is one of the few brands in America that can boast a rich, decades-long history of success and innovation. It all started with one cook who created a soon-to-be worldfamous recipe more than 70 years ago, a list of secret herbs and spices scratched out on the back of the door to his kitchen. That cook was Colonel Harland Sanders, of course, and now KFC is the world s most popular chicken restaurant chain, specializing in that same Original Recipe along with Extra Crispy chicken, home-style sides and buttermilk biscuits. There are more than 18,000 KFC outlets in 115 countries and territories around the world. And you know what? There s still a cook in a kitchen in every last one of them, freshly preparing delicious, complete family meals at affordable prices. AMPEX Brands Ampex Brands was formed in 2005 to acquire 18 Long John Silver s restaurants, and has since grown tremendously, landing as the 21st largest franchisee in the US according to The 2015 Mega 99 Rankings. Currently, Ampex owns and operates around 300 units of KFC, Taco Bell, Tim Hortons, Long John Silver s and A&W in Arkansas, Louisiana, Texas, Oklahoma, Ohio, Pennsylvania, West Virginia, Illinois, New York and Missouri, and employs over 6,000 team members. IT S MADE THE HARD WAY Hand breaded, freshly prepared and Finger Lickin Good! Our chicken isn't made the fast way or the easy way. Each fresh batch of the world s best chicken starts with our cooks inspecting each individual piece. Then, our fresh chicken is carefully rolled 7 times in our secret blend of 11 herbs & spices before being rocked 7 times and then pressure cooked at a low temperature to preserve all the great taste we re known for around the world. We could find an easier way to make chicken, but then we couldn t put our name on it. 5

6 P a c i f i c, M O

7 1922 West Osage Street Pacific, Missouri AERIAL 7

8 Pacific, Missouri LOCATION OVERVIEW ADTC 65,604 ADTC 14,890 HIGHLIGHTS Active Retail Corridor - Major National Tenants Include: Dollar General, BP, McDonald s, Taco Bell, and CVS Strategically Located Directly Off of U.S. Interstate 44 Attractive Traffic Counts of Over 65,604 Vehicles Per Day Borders the Pacific Palisades Conservation Area Located 34 Miles from Downtown St. Louis Second Largest City in Missouri MAJOR EMPLOYERS EMPLOYER # OF EMPLOYEES * Location District Southwestern Illinois Health F 677 ANDERSON HOSPITAL 670 Walmart 620 Fairmount Park Inc 400 US Dept of the Air Force 254 First Student Inc 200 Home Instead Senior Care 200 Ameren Illinois 170 District Home Depot The 150 Porters Steakhouse 142 * Based on a 5-mile radius 8

9 This KFC property is located at 1922 West Osage Street in Pacific, Missouri. Pacific is located in eastern Missouri and falls in both Franklin and St. Louis counties. It is located on the Meramec River and borders the Pacific Palisades Conservation Area. LOCATION OVERVIEW Surrounding Retail and Points of Interest The subject property is well-positioned in a dense retail corridor, benefitting from its proximity to major national and local retailers. Major national retailers in the area include: CVS, Star Bank, Mobil, Pilot, Subway, Philips 66, Hardee s McDonald s, BP, Taco Bell, Moto Mart, American Family Insurance, and Dollar General, as well as many others. Both the Union Pacific Railroad and historic Route 66 run through the town. East Central College is located approximately 13 miles from the subject property. The college is home to 3,200 students. Traffic Counts and Demographics There are approximately 10,055 people within a three-mile radius of this property and 16,237 within a five-mile radius. The property is situated on West Osage Street, which has an average daily traffic count of 14,890 vehicles. The subject property also benefits from its close proximity to U.S. Interstate 44, which has an average daily traffic count of 65,604. St. Louis, Missouri St. Louis falls is the second largest city in Missouri. It was developed on the western bank of the Mississippi River, the largest river in North America, which forms the states border with Illinois. The city is known throughout the country and the world for the Gateway Arch, a 630-foot tall arch in downtown St. Louis. The economy of St. Louis relies on service, manufacturing, trade, transportation of goods, and tourism. The city is home to several major corporations, including, Anheuser-Busch, Express Scripts, Peabody Energy, Ameren, Ralcorp, Monsanto, and Sigma-Aldrich. In 2015 the Gross Metropolitan Product was nearly $146 Billion, of which the manufacturing industry lead the way, conducting nearly $11 Billion in business. St. Louis has a rich cultural background that is predominately French. This is reflected in many of the historical buildings throughout the city. The city, however, is defined by its musical scene. Genres such as Blues, Jazz, and Ragtime all trace their roots back to St. Louis. In addition, St. Louis is home to many professional sports teams, including the St. Louis Cardinals of the MLB, and the St. Louis Blues of the NHL. 9

10 PROPERTY PHOTO 10

11 PROPERTY PHOTO 11

12 SURROUNDING AREA PHOTOS 12

13 Demographics 5 Mile 3 Mile 1 Mile 1 Miles 3 Miles 5 Miles POPULATION 2021 Projection 3,938 10,390 16, Estimate 3,867 10,055 16, Census 3,829 9,959 16, Census 3,271 9,126 14,997 INCOME Average $61,144 $66,153 $72,601 Median $50,492 $54,790 $59,072 Per Capita $24,876 $27,501 $27,333 HOUSEHOLDS 2021 Projection 1,607 4,157 6, Estimate 1,567 3,997 5, Census 1,545 3,942 5, Census 1,269 3,539 5,215 HOUSING 2016 $132,519 $147,886 $163,850 EMPLOYMENT 2016 Daytime Population 5,026 11,209 14, Unemployment 9.44% 8.33% 7.92% 2016 Median Time Traveled RACE & ETHNICITY White 92.87% 93.38% 91.89% Native American 0.01% 0.02% 0.02% African American 2.41% 2.39% 4.57% Asian/Pacific Islander 0.56% 0.66% 0.65% 13

14 Marcus & Millichap 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, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap 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. Marcus & Millichap 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 longterm 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 Marcus & Millichap Real Estate Investment Services 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. CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified 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. Marcus & Millichap 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, PCB s or asbestos, the compliance with 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 Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. NON-ENDORSEMENT NOTICE Marcus & Millichap Real Estate Investment Services, Inc. ( M&M ) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

15 MO Broker of Record: Bradley Barham License #