KENTUCKY FRIED CHICKEN (KFC) OFFERING MEMORANDUM ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y0332008 1
Financial Overview OFFERING SUMMARY PRICE $1,100,000 CAP RATE 6.46% NOI $71,079 PRICE PER SQUARE FOOT $343.75 RENT PER SQUARE FOOT $22.21 YEAR BUILT 1994 APPROXIMATE LOT SIZE 0.58 Acres GROSS LEASEABLE AREA 3,200 TYPE OF OWNERSHIP Fee Simple LEASE GUARANTOR Taci Investments, Incorporated LEASE TYPE Triple-Net (NNN) ROOF AND STRUCTURE Tenant Responsible LEASE SUMMARY LEASE COMMENCEMENT DATE 7/25/2012 LEASE EXPIRATION DATE 7/24/2027 LEASE TERM 15 Years TERM REMAINING 9+ Years INCREASES 1.5% Annually OPTIONS TO RENEW 4, 5-Year Options OPTIONS TO TERMINATE None OPTIONS TO PURCHASE None FIRST RIGHT OF REFUSAL None ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y0332008 2
Investment Overview Marcus & Millichap is pleased to present this 3,200-square foot Kentucky Fried Chicken (KFC) located in Baton Rouge, the capital of Louisiana. There are more than nine years remaining on this triple-net (NNN) lease with zero landlord responsibilities. The lease features 1.5 percent annual rent increases over the base term. The lease is guaranteed by Taci Investments, Incorporated; as well as a strong personal guaranty from the operator. Taci Investments is an asset development firm specializing in the management of branded franchised restaurants. They operate more than 7 restaurants in Louisiana. The subject property features a drive-thru, and is across the street from the Greenwell Springs Road and Monterey Boulevard intersection, a major thoroughfare with more than 55,000 vehicles per day (VPD). Greenwell Springs is a major connector with direct access to downtown Baton Rouge. KFC is also nearby to Ronald Reagan Memorial Highway, a major United States Highway between Louisiana and Texas, which sees more than 46,899 vehicles per day (VPD). This asset benefits from the strong retail corridor it is located along. Within one mile, there is more than 330,000 square feet of retail space. KFC also benefits from strong demographics. There are more than 169,000 residents with an average household income greater than $61,000 within five miles. Additional retailers in the immediate vicinity include: McDonald s, Popeyes, O Reilly Auto Parts, Dollar General, Family Dollar, AutoZone, CVS, Domino s, Taco Bell, Fred s Store, Rite Aid, RaceTrac, and many more. Kentucky Fried Chicken (KFC) in Baton Rouge The Capital of Louisiana More Than Nine Years Remaining on a Triple-Net (NNN) Lease with Zero Landlord Responsibilities Four, Five-Year Options to Extend Hedge Against Inflation 1.5 Percent Annual Rent Increases Taci Investments, Incorporated Guaranty as well as a Strong Personal Guaranty from the Operator 7 Unit Restaurant Operator Strong Demographics More Than 169,000 Residents With an Average Household Income Greater Than $61,000 in the Five Mile Radius Dense Retail Corridor More Than 330,000 Square Feet of Retail Space Within One Mile Nearby Ronald Reagan Memorial Highway/Route-190 A Major Interstate Highway Connecting Louisiana and Texas More 46,900 Vehicles Per Day (VPD) Great Visibility Along Greenwell Springs Road Major Connector in Baton Rouge More Than 32,000 Vehicles Per Day (VPD) Additional Retailers in the Immediate Vicinity Include: McDonald s, Popeyes, O Reilly Auto Parts, Dollar General, Family Dollar, AutoZone, CVS, Domino s, Taco Bell, Fred s, Rite Aid, RaceTrac, and Many More ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y0332008 3
Tenant Overview - KFC TACO BELL 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 world-famous 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 over 20,500 KFC outlets in more than 125 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. Taci Investments, Incorporated is an asset development firm specializing on the ownership and management of branded restaurants. They operate more than 7 units throughout Louisiana. TENANT TRADE NAME TENANT LEASE GUARANTOR NUMBER OF LOCATIONS HEADQUARTERED TENANT PROFILE Kentucky Fried Chicken (KFC) Taci Investments, Incorporated Taci Investments, Incorporated + Personal Guaranty 7 Restaurants Cypress, Texas ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y0332008 4
A er i al O verview 94 45 G r ee n w e l l S pr i ngs Ro ad - BATON ROUGE, LOUISIANA 7081 4 Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y0332008 5
Area Overview & Demographics 1-Mile 3-Mile 5-Mile Population 2000 Population 5,884 54,131 168,130 2010 Population 5,895 55,197 171,205 2017 Population 5,686 54,671 169,476 2022 Population 5,673 54,857 170,033 1-Mile 3-Mile 5-Mile Households 2000 Households 2,224 20,344 64,841 2010 Households 2,159 20,430 66,603 2017 Households 2,076 20,254 65,959 2022 Households 2,072 20,330 66,194 1-Mile 3-Mile 5-Mile Household (HH) Incomes 2017 Average HH Income $58,283 $57,168 $61,919 2017 Median HH Income $49,184 $43,127 $45,067 2017 Per Capita Income $21,280 $21,179 $24,098 Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y0332008 6
Market Overview - Baton Rouge, LA Sitting along the banks of the Mississippi River is the city of Baton Rouge, the capital of the state of Louisiana. One of the three southernmost capital cities, Baton Rouge is home to both Louisiana State University (LSU) and to Southern University. Baton Rouge is located about 80 miles northwest of New Orleans, to which it is connected by Interstate-10. Other major highways serving Baton Rouge include Interstates I-12 and I-110; U.S. Routes 61 and 190; and Louisiana State Highways 1, 30, 37, 67 and 73. Baton Rouge is a great place to do business. According to KPMG s Competitive Alternatives guide to business location costs, Baton Rouge has one of the nation s lowest costs of doing business. Baton Rouge s 92.8 index score reflects that the overall cost of doing business in the Capital Region is 7 percent lower than the cost of doing business in the average United State s city. This score places Baton Rouge as the second most cost-effective market in the Southeast. In fact, Louisiana is home to three of the four cities with the best business costs, reflecting the state s commitment to economic competitiveness. Competitive Alternatives also highlighted the fact that Baton Rouge has an emerging digital cluster (index score of 85.3) and thriving manufacturing sector (index score of 95.6). The digital cluster is aided by the significant incentives offered to a wide range of e-business and software development firms. Low facilities costs, as well as helpful incentives, allow the manufacturing costs to stay competitive. The sports scene in Baton Rouge is dominated by the Louisiana State University Tigers, who field a variety of teams in several varsity sports. A member of the Southeastern Conference, LSU plays its games at Tiger Stadium (football), Pete Maravich Assembly Center (basketball, volleyball, gymnastics), Alex Box Stadium (baseball), Tiger Park (softball), Carl Maddox Fieldhouse (indoor track), and Bernie Moore Stadium (outdoor track). For professional sports, Baton Rouge is home to the Baton Rouge River Bats, an independent minor league baseball team. Major league teams are located in nearby New Orleans, home to the National Football League s Saints and the National Basketball Association s Hornets. The Hornets played some of their 2005-2006 home games at Baton Rouge s Pete Maravich Center while Katrina recovery efforts were underway in New Orleans. The New Orleans Superdome, an attraction unto itself, has recovered from major damage and is now back in operation. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y0332008 7
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 long-term 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.
KENTUCKY FRIED CHICKEN Broker of Record Chris Shaheen 10527 Kentshire Ct., Suite B Baton Rouge, LA 70810 Tel: 901-620-3600 License: BROK.0095692662-ACT