OFFERING MEMORANDUM
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 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 Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, 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.
NET LEASED DISCLAIMER 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.
TABLE OF CONTENTS Section 1 PRICING AND FINANCIAL ANALYSIS Section 2 PROPERTY DESCRIPTION Section 3 DEMOGRAPHIC ANALYSIS
PRICING AND FINANCIAL ANALYSIS Taco Bell
PRICING AND FINANCIAL ANALYSIS FINANCIAL OVERVIEW Location 3527 Macon Road Columbus, GA 31907 Price $850,000 Down Payment 100% / $850,000 Rentable Square Feet 1,870 Price/SF $454.55 CAP Rate 9.28% Year Built 1988 Lot Size Type of Ownership 28,750 SF Fee Simple Annualized Operating Data Rent Increases Annual Rent Monthly Rent $78,097.00 $6,508.08 Base Rent ($42.18/SF) $78,877 Net Operating Income $78,877 Total Return 9.28% / $78,877 Tenant Summary Tenant Trade Name Tenant Lease Guarantor Lease Type Roof and Structure Lease Term Taco Bell Franchisee Franchisee Guarantee Triple Net (NNN) Tenant Responsible 15 Years (+/- 260 Stores) (Tacala LLC) Lease Commencement 08/18/2005 Rent Commencement 08/18/2005 Lease Expiration Date 08/17/2020 Term Remaining on Lease 3 Increases 1.0% Options 1 10-Year and 2 5-Year 1
PRICING AND FINANCIAL ANALYSIS TENANT OVERVIEW Property Name Property Address Taco Bell 3527 Macon Road Columbus, GA 31907 Rentable Square Feet 1,870 Tenant Trade Name Tenant Lease Guarantor Taco Bell Franchisee Franchisee Guarantee Tacala LLC Lease Commencement Date 08/18/2005 Rent Commencement Date 08/18/2005 Lease Expiration Date 08/17/2020 Term Remaining on Lease 3 Lease Type Roof and Structure Lease Term Triple Net (NNN) Tenant Responsible 15 Years Year 1 Net Operating Income $94,832.00 Increases 1.0% Options to Renew 1 10-Year and 2 5-Year Options No. of Locations Web Site Headquarters +/- 260 Stores www.tacala.com Birmingham, Alabama Tacala LLC is one of the largest Taco Bell Franchisees in the United States 2
PROPERTY DESCRIPTION Taco Bell
PROPERTY DESCRIPTION INVESTMENT OVERVIEW Investment Highlights NNN Lease - No Landlord Responsibilities Guaranteed by Tacala LLC (+/- 260 Stores) Well-Located, Two Blocks East of Interstate 185 Near Employers and National Retailers 316,000 Residents in Columbus Region Centrally Located in the Southeast Automotive and Aerospace Corridors Marcus & Millichap is pleased to offer a NNN Taco Bell drive-thru located at 3527 Macon Road in the city of Columbus, Georgia. This store is operated and guaranteed by Tacala LLC, which is one of the largest Taco Bell franchisees in the United State (+/- 260 stores). The initial 15-year lease executed by Tacala LLC one 10-year and two five-year options to renew. The rent increases one percent annually. The property is 1,870 square feet of building space and sits on 28,750 square feet of land. Macon Road is a heavily trafficked retail corridor just off interstate 185. Nearby national retailers include CVS, Walgreens, Publix, Ross, Big Kmart, TJ Max, and others. The Columbus Georgia region has a population of approximately 316,000 and is centrally located in the automotive and aerospace corridors of the southeast, where there has been substantial population and employment growth over the past five years. Today, several well-known companies have their headquarters in the Region, including Aflac, Carmike Cinemas, Masterbuilt, Realtree, Synovus, TSYS, and the W.C Bradley Company. In addition, internationally-recognized companies like Heatcraft Kysor/Warren, Kia, NCR, Pratt and Whitney, and Synder s-lance have major operations in the Region as well. 4
PROPERTY DESCRIPTION PROPERTY INFORMATION/TENANT OVERVIEW OUR STORY When Dick Reese and Don Ghareeb first inquired about getting into the Taco Bell business in 1988 in Alabama, there were only 2,700 Taco Bell locations in the United States. Most of the units were concentrated in the West and folks in the Southeast didn t know how to pronounce taco. Dick and Don didn't know it, but their timing was exceptional. The following year, a period of phenomenal growth ensued as Taco Bell introduced U.S. consumers to the concept of value with low price tacos and free drink refills. Taco Bell locations have more than doubled in the past 24 years and Tacala has grown exponentially from one location in Columbiana, AL in 1989 to 268 locations in the Southeast and Texas. Dick and Don: 30-Year Partnership Tacala Today Dick Reese and Don Ghareeb enjoyed 30 years of partnership and friendship, with half of that time spent as Taco Bell franchisees. Their skill sets and personalities complemented each other perfectly. Dick s professional background was in finance, including experience with one of the Big Eight accounting firms. Don s background from his teenage years was in foodservice operations, which served as a launch pad for a career in Quick Service Restaurants in a variety of management positions. Dick and Don met in 1975 while working at a regional hamburger chain and purchased that company in 1979, building it up to over 100 locations before selling it in 1988. It was during the sale of excess property that they became acquainted with Taco Bell. After Dick and Don met with representatives from Taco Bell Corp, they decided to retain some of the locations and become Taco Bell franchisees. Their partnership flourished until July 2005 when we lost our beloved co-founder, Dick Reese. Dick s legacy lives on through the continued growth of Tacala and the many lives he touched. At the end of 2012, Altamont Capital Partners, a private equity firm with $500 million of capital under management, acquired majority ownership in Tacala. Altamont selected Tacala as their first investment in the restaurant industry based on the company s proven track record, as well as the strong company leadership which has remained in place. Don Ghareeb, Tacala Chairman Emeritus, assembled a strong team to continue the ideals that Dick and Don espoused from the beginning: take care of your customers, take care of your teams, and be good community partners. Tim Morrison, President since early 2012 leads the company on a day-to-day basis in partnership with Joey Pierson, Executive VP/CFO, and members of the Executive Team who work to ensure that we continue to grow to provide our customers with a great experience and our teams with strong opportunities for growth and development. Tacala locations have grown over the past 24 years through a combination of development and strategic acquisitions. Most recently Tacala added locations in Texas, previously owned by another long-time franchisee, Austaco. After 45 years as a Taco Bell franchisee, Austaco s owners, Dirk and Katie Dozier, made the decision to sell the stores to Tacala based on our history of leadership and alignment with the goal to further Taco Bell business in some of the best communities in the country. We are excited to welcome Tacala Austin, formerly Austaco, into the Tacala family and look forward to working together to continue to grow the business in the years to come. 5
PROPERTY DESCRIPTION PROPERTY SUMMARY The Offering Property Property Address Taco Bell 3527 Macon Road Columbus, GA 31907 Site Description Year Built 1988 Rentable Square Feet 1,870 Lot Size 28,750 SF Type of Ownership Fee Simple 6
PROPERTY DESCRIPTION PROPERTY PHOTOS 7
PROPERTY DESCRIPTION PROPERTY PHOTOS 8
PROPERTY DESCRIPTION AREA MAPS Local Map Regional Map 9
PROPERTY DESCRIPTION AERIAL PHOTO 10
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