SUBJECT PROPERTY EXCLUSIVE OFFERING $2,693,000-5.85% CAP EXP DALLAS 214.522.7200 JOE CAPUTO joe@exp1031.com BOB MOORHEAD bob@exp1031.com property. 3,438+ SF building built in 2013 on 1.45+ acre site. tenant. Lessee: Pollo Tropical - 25+ year history and is now a wholly owned subsidiary of Fiesta Restaurant Group, Inc. (NASDAQ: FRGI). 100 corporate owned and operated domestic Pollo Tropical locations in Florida, Georgia, and Tennessee. 30 international franchised locations in Puerto Rico, the Bahamas, Ecuador, Honduras, Panama, Trinidad, Venezuela, and Costa Rica. Average unit volume is $2.5 million. lease structure. Brand new, 20-year, corporate, NNN lease with 1.0% annual rent increases beginning year 11. location. The subject property is located along Ben Hill Griffin Parkway next to the Interstate 75 (76,660 Cars / Day) and Alico Road (25,348 Cars / Day) interchange in the Gulf Coast Town Center (1.24 Million SF). Complex anchored by Target, Costco, JCPenney, Belk, Bass Pro Shops, and Dick s Sporting Goods.
Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5-6: PAGE 7: PAGE 8: PAGE 9-10: PAGE 11: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW SALES HIGHLIGHTS SITE PLANS AERIAL PHOTO LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at 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. Florida Broker of Record: Turner Net Properties, Inc. License # 565084 2
Investment overview PRICE: $2,693,000 CAP RATE: 5.85% NET OPERATING INCOME: $157,500 BUILDING AREA: 3,438+ Square Feet LAND AREA: 1.45+ Acres Lease overview Initial Lease Term: 20-Years Rent Commencement: 2013 (Upon Close of Escrow) Lease Expiration: 2033 (240 Months After Close of Escrow) Lease Type: Absolute NNN No Landlord Responsibility Initial Term Rent Increases: 1.0% Annually Starting Lease Year 11 Annual Rent (Current): $157,500 YEAR BUILT: 2013 OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% Tenant overview LESSEE: Pollo Operations, Inc., a Florida corporation Annual Rent Year 11: $159,075 Annual Rent Year 12: $160,665 Annual Rent Year 13: $162,272 Annual Rent Year 14: $163,895 Annual Rent Year 15: $165,534 Options Term: Option Term Rent Increases: Annual Rent Year 16: $167,189 Annual Rent Year 17: $168,861 Annual Rent Year 18: $170,549 Annual Rent Year 19: $172,255 Annual Rent Year 20: $173,977 4, 5-Year Options to Renew Years 1-3: 1% Annually Years 4-5: None www.pollotropical.com Pollo Tropical, a part of Fiesta Restaurant Group, Inc., owns and operates 100 locations in the United States (Florida, Georgia, and Tennessee). Within the United States, Pollo Tropical owns and operates all of its restaurants, with the exception of "institutional" locations such as airports and universities. Universities which have franchised locations include Florida International University, University of Florida, and Florida State University. The company has more than 30 international franchised locations in Puerto Rico, the Bahamas, Ecuador, Honduras, Panama, Trinidad, Venezuela, and Costa Rica and has agreements in place for additional franchised units in Guatemala, Aruba, Bonaire, and Curaçao. The first Pollo Tropical restaurant opened in 1988 in Miami, Florida. The unique restaurant concept is known for its fresh, never frozen, open flame grilled chicken, marinated in a proprietary blend of tropical fruit juices and spices, as well as authentic made from scratch side dishes. FIESTA RESTAURANT GROUP www.frgi.com SUBJECT PROPERTY Fiesta Restaurant Group, Inc., through its subsidiaries, owns and operates quick-casual restaurants under the Pollo Tropical and Taco Cabana brand names in the United States. The company s Pollo Tropical restaurants offer tropical and Caribbean inspired menu items, featuring grilled chicken PRIOR marinated TO PANDA in proprietary EXPRESS EXPANSION blend of tropical fruit juices and spices. As of March 31, 2013, Fiesta Restaurant Group, Inc. owns and operates the Pollo Tropical and Taco Cabana restaurant brands with 255 company-owned and operated restaurants and 44 franchised restaurants in the U.S., Puerto Rico, the Bahamas, Costa Rica, Ecuador, Honduras, Panama, Trinidad & Tobago, and Venezuela. The company was incorporated in 2011, and is based in Dallas, TX. Fiesta Restaurant Group, Inc. operates independently of Carrols Restaurant Group, Inc. due to a spinoff completed as of May 7, 2012. As of July 1, 2012 Fiesta Restaurant Group had revenues of $493 million over the previous 12 months. At this time company net income was $3.92 million, a 7.87% year-on-year increase as well as $11.58 million in cash flow from operating activities over this time period. Fiesta Restaurant Group does not guarantee lease. 3
Pollo tropical SALES highlights 4
Site plan 5
Site plan 6
Aerial photo Interstate 75 (76,660 Cars / Day) Alico Road (25,348 Cars / Day) 7
Location overview IMMEDIATE TRADE AREA The subject property is located along Ben Hill Griffin Parkway next to the Interstate 75 (76,660 Cars / Day) and Alico Road (25,348 Cars / Day) interchange in the Gulf Coast Town Center (1.24 Million SF). Interstate 75 connects Fort Myers with Tampa and the rest of the Florida peninsula. This location provides the site with convenient access for both local and out of town traffic. The center features casual and upscale restaurants, as well as shopping that includes 20 anchor stores, over 50 specialty shops and over 20 eateries. A few of the many highlights at Gulf Coast Town Center are the Bass Pro Shops, Regal Cinemas 16, Target, Costco, JCPenney, Belk, Dick s Sporting Goods, Best Buy, and Marshall s. Additional retailers located in Gulf Coast Town Center include Ross, JoAnn, Staples, Carraba s, Outback Steakhouse, SunTrust, Wells Fargo, and Regions. The subject property further benefits from an affluent surrounding residential area and brisk population growth. The average annual household income within a 1-mile radius of Pollo Tropical is $94,330. The population is projected to grow by 6.5% over the 5-year period ending in 2016. FORT MYERS, FL Fort Myers is the county seat and commercial center of Lee County, FL and has a population of 62,298. The area has undergone rapid recent population growth; 29.3% between 2000 and 2010. Lee County has a population of 618,754, which includes a 40.3% increase during this time period. Lee County s diversified labor force is a valuable resource that many companies have been fortunate capitalized on. With nearly 25,000 students enrolled in higher education, with degrees covering the medical, environmental, technologies, business management / administration, the benefits to new business have been innumerable. According to Lee County s Economic Development Office, the target industries for Lee County are aviation, shared services, corporate HQ, information technologies, life sciences, and manufacturing. Lee County is home to many of these industries leading firms like GE, Sony, Chico s and WCI communities. Lee County offers many incentives to companies that open and operate within Lee County. Some of these incentives include tax refunds, employee training programs, bonding for manufacturing firms, and reduced impact fees for qualified enterprises. The rich history and tourism draw of the area provides a built in customer base for many industries. FORT MYERS, FL & VICINITY Port Charlotte is another principal city in the area and is located 22-miles south of Arcadia. Port Charlotte currently has a population of 54,392 which represents a 17.1% gain over the previous 10-years. The CDP was listed among the 10 best places in the United States to retire for the year 2012 by U.S. News & World Report. Punta Gorda is located just south of Port Charlotte and is 26-miles south of Arcadia. In addition to its beautifully restored historic district, Punta Gorda offers many natural attractions, waterside shopping and leisurely strolls along the Harborwalk and at Fishermen's Village on Charlotte Harbor. With its location along the south Florida Gulf Coast and access to Interstate 75 Punta Gorda has a thriving tourism industry. 8
Location map 9
Location map 10
Demographics Demographic snapshot Radius 1 Mile 3 Mile 5 Mile Population: 2016 Projection 1,128 23,940 58,754 2011 Estimate 1,060 24,049 57,208 2010 Census 1,064 24,234 56,944 Growth 2011-2016 6.50% -0.50% 2.70% Growth 2010-2011 -0.40% -0.80% 0.50% Households: 2016 Projection 440 7,977 24,135 2011 Estimate 409 8,001 23,509 2010 Census 410 8,054 23,346 Growth 2011-2016 7.50% -0.30% 2.70% Growth 2010-2011 -0.20% -0.70% 0.70% Owner Occupied 267 5,814 18,284 Renter Occupied 142 2,187 5,225 2011 Avg Household Income $94,330 $79,278 $75,968 2011 Med Household Income $79,658 $61,567 $55,440 2011 Per Capita Income $37,576 $30,161 $32,833 2011 Households by Household Inc: Income Less than $15,000 16 490 1,836 Income $15,000 - $24,999 33 571 2,205 Income $25,000 - $34,999 29 735 2,623 Income $35,000 - $49,999 39 1,111 3,555 Income $50,000 - $74,999 70 1,912 5,083 Income $75,000 - $99,999 72 1,293 2,979 Income $100,000 - $149,999 102 1,173 2,823 Income $150,000 - $199,999 20 367 1,281 Income $200,000+ 28 348 1,124 FORT MEYERS, FL WATERFRONT BASS PRO SHOPS NEAR SUBJECT PROPERTY 11