EXCLUSIVE OFFERING $915, % CAP KFC

Transcription

1 Mercedes Superdome New Orleans Arena New Orleans Central Business District Tulane University Newman School De La Salle High School Kindred Hospital EXCLUSIVE OFFERING $915, % CAP EXP DALLAS JOE CAPUTO BOB MOORHEAD property. Built in 1997, approximately 2,700 square foot building on approximately 0.37 acres. tenant. Lessee: Blue Victory Holdings dba is an asset development firm that is focused primarily on the ownership and management of branded restaurants. The company currently owns 22 restaurants located in the Southeastern United States. lease structure. Brand new, 15-year, absolute NNN lease with 1.5% annual rent increases during primary term and option periods. location. Located along St. Charles Avenue (15,592 Cars / Day) near the Ponchartrain Expressway / U.S. Highway 90 (134,839 Cars / Day). St. Charles Avenue, one of the most memorable features in New Orleans. Located 1-mile of central business district, historic Garden District, Mercedes Superdome (76,468 Seats), New Orleans Arena (17,188 Seats), and the Ernest M. Morial (1.1 Million SF exhibit space). Nationally know tenants nearby include Walmart, Home Depot, Office Depot, Walgreens, Hampton Inn, Clarion Hotels, and Rite Aid.

2 Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5: PAGE 6-7: PAGE 8: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW AERIAL PHOTO LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS SUBJECT PROPERTY Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at 1406 St. Charles avenue, New Orleans, LA by the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent. Listed In Association With Beau Box - Broker of Record License: 72498

3 Investment overview PRICE: $915,300 CAP RATE: 7.25% NET OPERATING INCOME: $66,358 BUILDING AREA: 2,700 + Square Feet LAND AREA: Acres Lease overview Initial Lease Term: 15-Years, Plus 4, 5-Year Options to Renew Rent Commencement: July 2012 Lease Expiration: July 2027 Lease Type: Absolute NNN No Landlord Responsibility Rent Increases: 1.5% Annually During Primary Term & Options Annual Rent (Current): $66,358 Annual Rent Year 9: $74,751 YEAR BUILT: 1997 OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% Tenant overview Blue Victory Holdings, a Louisiana Corp. dba Annual Rent Year 2: $67,353 Annual Rent Year 3: $68,363 Annual Rent Year 4: $69,389 Annual Rent Year 5: $70,429 Annual Rent Year 6: $71,486 Annual Rent Year 7: $72,558 Annual Rent Year 8: $73,647 Annual Rent Year 10: $75,873 Annual Rent Year 11: $77,011 Annual Rent Year 12: $78,166 Annual Rent Year 13: $79,338 Annual Rent Year 14: $80,528 Annual Rent Year 15: $81,736 Blue Victory Holdings / Franchisee: Blue Victory Holdings is an asset development firm that is focused primarily on the ownership and management of branded restaurants. It concentrates its restaurant activities on opening, managing, and enhancing a variety of branded restaurants for the purpose of maximizing shareholder value. The company currently owns 22 restaurants located in the Southeastern United States. These restaurants consist of 16 Kentucky Fried Chicken restaurants, 4 multi-branded Kentucky Fried Chicken/Taco Bell restaurants, 1 multi-branded Kentucky Fried Chicken/Long John Silver's restaurant, and 1 Hardee's restaurant. The company also owns 270 apartment units. : (Kentucky Fried Chicken) headquartered in Louisville, Kentucky is a global chain of fried chicken fast food restaurants. The first "Kentucky Fried Chicken" franchise was opened in Utah in In 1986 PepsiCo acquired the brand for $850 million and spun off its restaurants SUBJECT division PROPERTY as Tricon Global Restaurants in 1997, which subsequently changed its name to Yum! Brands in As a Yum! subsidiary, is a core PRIOR component TO PANDA of one EXPRESS of the largest EXPANSION restaurant companies in the world. As of 2011, there were over 17,000 outlets in 105 countries and territories around the world, although almost half of the total are in the United States and China. 3

4 Aerial photo Mercedes Superdome New Orleans Arena New Orleans Central Business District Tulane University Newman School De La Salle High School Kindred Hospital 4

5 Location overview IMMEDIATE TRADE AREA is located along St. Charles Avenue (15,592 Cars / Day) near the Ponchartrain Expressway / U.S. Highway 90 (134,839 Cars / Day). St. Charles Avenue, one of the most memorable features in New Orleans, traverses the Uptown area of New Orleans and provides direct access to the New Orleans central business district both by car and its iconic streetcar line (9,000 Riders / Day). St. Charles Avenue is world famous for its stately antebellum homes, hotels, bars, and restaurants. The Ponchartrain Expressway is the Uptown central business district boundary and connects Interstate 10 to the north with the suburbs on the south side of the Mississippi River. Uptown New Orleans, especially St. Charles Avenue boasts a unique blend of established local enterprises with nationally known retail brands. The subject property s location next to the historic Garden District, one of the best preserved collections of historic southern mansions in the U.S., helps deliver the full effects of these advantages. is across St. Charles Avenue from Office Depot and a Houston s restaurant. The historic Ponchartrain Hotel, which is now a luxury extended stay and corporate housing facility, is across St. Charles from the subject property. Other nationally known brands along St. Charles include Rite Aid, McDonald s, Walgreens, Hampton Inn, Quality Inn, and Rally s Hamburgers. The parade route designation attributed to St. Charles Avenue has drawn numerous bars that have been thriving for decades. Some of the most visited bars along St. Charles Avenue include Fat Harry s, The Columns Hotel bar, and the Avenue Pub. The neighborhood s charm and desirable location have made it one of the fastest growing areas in New Orleans. The population within a 1-mile radius of is projected to increase by 17% over the next 5-years. The site is well positioned to capitalize on the immense New Orleans convention and event traffic. The subject property is within a half mile of the Ernest M. Morial Convention Center. With over 1.1 million SF of exhibit space this convention center is the 6 th largest in the U.S. is also near the Riverwalk Marketplace which has over 140 shops which include Gap, Ann Taylor Loft, and Nine West. Howard Hughes Corporation just announced a $70 million investment in the property to add an additional 50,000 SF of retail space. Additionally, the site is within 1-mile of the Mercedes-Benz Superdome (76,468 Seats) and New Orleans Arena (17,188 Seats) NEW ORLEANS, LA New Orleans is a major U.S. port and the largest city in the state of Louisiana with a population of 343,829 residents. The New Orleans economy is based on twin pillars of tourism and shipping. Additionally, New Orleans has a thriving energy sector along with a fast growing film industry presence. New Orleans consistently ranks as one of the top 10 tourist destinations in the U.S. The city is known for its jazz, Creole food, 18th and 19th century architecture, streetcars, museums, and arts. Famous festivals like Mardi Gras, the New Orleans Jazz Festival, and Satchmo SummerFest attract hundreds of thousands of tourists to New Orleans each year. The city has taken advantage of its status as a major tourism destination by establishing itself as one of the top convention sites in the country. The Ernest M. Morial Convention Center plays a significant role in drawing the city s 8.3 million annual visitors. The tourism and convention industries employ 85,000 people in New Orleans and contribute $5.5 billion annually to the local economy. New Orleans has successfully spurred the emergence of the city as a major movie production destination due in large part to the State of Louisiana granting transferable tax credits to film producers. To date over 25 movies have been filmed in New Orleans in 2012 by studios that include Universal pictures, Warner Brothers, HBO, Summit Entertainment, and VHI. Major sporting events also provide a significant impact to the local economy. Annual college football games such as the Bayou Classic, the New Orleans Bowl, and the Sugar Bowl are held at the Mercedes-Benz Superdome. New Orleans is 1 of 4 rotating sites for college football s BCS National Championship. The city hosted the 1st and 2 nd rounds of the 2007 NCAA Men s Division I Basketball Tournament and the Final Four Championship in The city will host the upcoming BCS National Championship in January 2013 and Super Bowl XLVII in February 2013 at the Mercedes-Benz Superdome. The city proximity to the Gulf and Mississippi River provide an ideal location for a waterborne transportation hub. Port of New Orleans handles about 62 million short tons of cargo each year, which makes the port 1st in the U.S. based on volume of cargo handled, 2 nd largest in the state and the 13th largest in the United States based on value of cargo. The port has the longest wharf in the world, which can accommodate 15 vessels at one time. The port handles about 50,000 barges, and 700,000 cruise passengers per year. The 2 ports oversee 6,000 vessels and 500 million tons of cargo each year, including over half of the country s grain exports. In addition to the Port of New Orleans, the MSA contains the Port of South Louisiana, giving the area the 2 largest ports in the state. Port of South Louisiana is the largest volume shipping port in the Western Hemisphere and the 9th largest in the world. It is the largest bulk cargo port in the world. New Orleans is home to Entergy, a Fortune500 listed company. Top regional employers include Louisiana State University Health (7,000+ employees), Northrop Grumman Ship Systems (6,000+ employees), and Tulane University (5,000+ employees). Other notable employers are University of New Orleans, North Oaks Health System, DOW Chemical, and Chevron Production. NEW ORLEANS-METAIRE-KENNER MSA The New Orleans-Metaire-Kenner Metropolitan Statistical Area is made up of 7 parishes in southeastern Louisiana in the Mississippi River Delta. The MSA population was 1,235,650 per the 2010 US Census, which makes the MSA the 46th largest in the United States. 5

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8 Demographics Demographic snapshot Radius 1 Mile 3 Mile 5 Mile Population: 2016 Projection 31, , , Estimate 26, , , Census 26, , ,885 Growth % 12.80% 11.70% Growth % 0.90% 1.30% 2011 Households: 2016 Projection 15,703 78, , Estimate 13,637 70, , Census 13,389 69, ,152 Growth % 11.80% 11.00% Growth % 1.10% 1.50% Owner Occupied 3,968 26,536 69,479 Renter Occupied 9,669 43,682 77, Avg Household Income $47,446 $51,475 $52, Med Household Income $25,390 $29,496 $33, Per Capita Income $25,446 $24,958 $23, Households by Household Inc: Income Less than $15,000 4,573 19,424 34,651 Income $15,000 - $24,999 2,168 11,106 22,725 Income $25,000 - $34,999 1,512 8,760 18,439 Income $35,000 - $49,999 1,814 9,728 21,258 Income $50,000 - $74,999 1,305 7,843 20,069 Income $75,000 - $99, ,642 11,896 Income $100,000 - $149, ,190 9,888 Income $150,000 - $199, ,679 3,614 Income $200, ,845 4,798 DOWNTOWN NEW ORLEANS GARDEN DISTRICT TULANE HOME UNIVERSITY, ALONG ST. NEW CHARLES ORLEANS, AVENUE LA 8