Representative Photo 663 BATTLEFIELD PARKWAY, FORT OGLETHORPE, GA 30742 KENTUCKY FRIED CHICKEN
CONFIDENTIALITY & DISCLAIMER STATEMENT This Marketing Brochure contains select information pertaining to the business and affairs of KFC located at 235 W State Street, Fort Oglethorpe, GA 30742 here to referred to as Property. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc. This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. 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 the Buyer s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the 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 the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals. 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 performance. 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 the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property. NON-ENDORSEMENT NOTICE Matthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. 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 Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ii
TABLE OF CONTENTS 663 BATTLEFIELD PKWY FORT OGLETHORPE, GA 30742 KENTUCKY FRIED CHICKEN TABLE OF CONTENTS 01. Executive Summary 03. Tenant Overview 05. Property Overview 13. Demographics 15. Area Overview Ryan Muller Associate Gary Chou VP & Director Kyle Matthews Broker of Record License No. 01985081 O 310.919.5786 M 303.916.4362 ryan.muller@matthews.com License No. 01911222 O 310.919.5827 M 714.928.8016 gary.chou@matthews.com License No. 363764
EXECUTIVE SUMMARY Investment Highlights PROPERTY DETAILS Long Term Stabilized Income - 13.5 years left on the original lease term; 4 (four), 5 (five) year options Absolute NNN Investment ZERO landlord responsibilities with maintenance, taxes and insurance paid by tenant for the landlord Ideal for out of state investors looking for passive income Attractive Rental Escalations - Rare 7.50% rental escalations every 5 years 2016 Renovation JRN has approached the landlord to renovate the building into KFC s new prototype Excellent Store Sales - Store sales that nearly double the national average for KFC LOCATION Chattanooga MSA KFC is located just 8 miles from downtown Chattanooga, TN. Chattanooga is the fourth-largest city in Tennessee with an estimated 2013 population of 173,366 Strong Traffic Counts Battlefield Pkwy records an estimated 33,672 cars per day Retail Corridor Battlefield Pkwy is the main retail corridor in Fort Oglethorpe. Outparceled to an Office Max and Family Dollar shopping center some surrounding national retailers in the immediate area include CVS Pharmacy, Kmart, Walmart and Walgreens Dependable Consumer Base Directly down the street from Lakeview- Fort Oglethorpe High School and Battlefield Primary School and Elementary School Dense Residential Area Across the street from heavily dense residential neighborhoods TENANT Strong Franchise Operator JRN, INC. operates 177 KFC and Pizza Hut locations in United States Matthews Retail Advisors 1
Executive Summary KENTUCKY FRIED CHICKEN 663 Battlefield Pkw Fort Oglethorpe, GA 30742 List Price...................................... $1,808,000 Gross Leasable Area............................... 2,787 SF CAP Rate - Current..................................6.25 % Lot Size............................. ± 0.58 Acres (25,264 SF) Year Built.........................................1986 ANNUALIZED OPERATING DATA Monthly Rent Annual Rent Rent/SF CAP Rate Present - 11/31/2019 $9,417.00 $113,004 $40.55 6.25% 11/31/2019-11/31/2024 $10,123.28 $121,479 $43.59 6.72% 11/31/2024-11/31/2029 $10,882.52 $130,590 $46.86 7.22% Option 1 $11,698.71 $140,385 $50.37 7.76% Option 2 $12,576.11 $150,913 $54.15 8.35% Option 3 $13,519.32 $162,232 $58.21 8.97% Option 4 $14,533.27 $174,399 $62.58 9.65% TENANT SUMMARY Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof and Structure Original Lease Term KFC Fee Simple Franchisee NNN Tenant Responsible 20 Years Lease Commencement Date 11/1/2009 Rent Commencement Date 11/1/2009 Lease Expiration Date 11/31/2029 Term Remaining on Lease 13.5 Years Increases 7.50% Options 4, 5 year Matthews Retail Advisors 2
TENANT OVERVIEW
Property Name KFC Property Type Net Leased QSR Parent Company Trade Name Yum Brands, Inc. Ownership Public Credit Rating BBB Rating Agency Standard & Poor s Revenue $23 B Net Income $488.45 M Stock Symbol YUM Board NYSE No. of Locations ± 18,000 No. of Employees (All) ± 24,000 Headquartered Louisville, KY KFC, or Kentucky Fried Chicken, is a fast food restaurant chain that specializes in fried chicken. It is the world s second largest restaurant chain (as measured by sales) after McDonald s, with 18,875 outlets in 118 countries and territories as of December 2013. Since the early 1990s, KFC has expanded its menu to offer other chicken products such as chicken fillet burgers and wraps, as well as salads and side dishes, such as French fries and coleslaw, desserts, and soft drinks. The company is a subsidiary of Yum! Brands, a restaurant company that also owns the Pizza Hut and Taco Bell chains. YUM! Brands, Inc. YUM! Brands, Inc., together with its subsidiaries, operates quick service restaurants. It operates in five segments: YUM China, YUM India, the KFC Division, the Pizza Hut Division, and the Taco Bell Division. The company develops, operates, franchises, and licenses a system of restaurants, which prepare, package, and sell various food items. As of August 18, 2015, it operated approximately 41,000 restaurants in approximately 125 countries and territories primarily under the KFC, Pizza Hut, and Taco Bell brands, which specialize in chicken, pizza, and Mexican-style food. Web Site www.kfc.com Year Founded 1952 Matthews Retail Advisors 4
PROPERTY OVERVIEW
Physical Description Matthews Retail Advisors 6
Physical Description Matthews Retail Advisors 7
Physical Description THE OFFERING Property Name..................................... KFC Property Address......................... 663 Battlefield Pkwy Fort Oglethorpe, GA 30742 Assessor s Parcel Number........................... 0003B003 SITE DESCRIPTION Number of Stories.................................... One Gross Leasable Area (GLA)........................... 2,787 SF Lot Size............................. ± 0.58 Acres (25,264 SF) Type of Ownership.............................. Fee Simple Parking................................ ± 20 Surface Spaces Parking Ratio.................................7.18 : 1,000 SF Landscaping..................................Professional Topography................................ Generally Level CONSTRUCTION Foundation.................................. Concrete Slab Framing.........................................Wood Exterior................................... Painted Stucco Parking Surface................................... Asphalt Roof............................................ Flat Matthews Retail Advisors 8
Birds Eye Battlefield Pkwy ± 34,000 ADT Matthews Retail Advisors 9
Aerial Matthews Retail Advisors 10
Regional Matthews Retail Advisors 11
Tenant Map Matthews Retail Advisors 12
DEMOGRAPHICS
Demographics Population 1-Mile 3-Mile 5-Mile 2021 Projection 6,598 39,172 98,518 2016 Estimate 6,481 38,365 96,292 2010 Census 6,430 37,971 94,758 2000 Census 5,847 34,743 88,343 Growth 2016-2021 1.81% 2.10% 2.31% Growth 2010-2016 0.79% 1.04% 1.62% Growth 2000-2010 9.97% 9.29% 7.26% Households 2021 Projection 2,758 16,763 40,785 2016 Estimate 2,697 16,329 39,742 2010 Census 2,652 15,995 38,846 2000 Census 2,468 14,594 36,784 Growth 2016-2021 2.25% 2.66% 2.62% Growth 2010-2016 1.68% 2.08% 2.31% Growth 2000-2010 7.45% 9.61% 5.61% Income $0 - $15,000 20.27% 18.74% 19.18% $15,000 - $24,999 12.88% 14.59% 14.36% $25,000 - $34,999 13.17% 13.29% 12.79% $35,000 - $49,999 11.66% 14.35% 15.37% $50,000 - $74,999 21.18% 22.66% 20.03% $75,000 - $99,999 10.67% 8.59% 9.27% $100,000 - $124,999 5.57% 4.49% 4.73% $125,000 - $149,999 2.59% 2.02% 2.09% $150,000 - $199,999 1.63% 0.91% 1.37% $200,000 - $249,999 0.29% 0.15% 0.35% $250,000 - $499,999 0.10% 0.15% 0.33% $500,000+ 0.02% 0.06% 0.13% 2016 Est. Average Household Income $49,066 $46,454 $48,344 2016 Est. Median Household Income $39,743 $38,536 $38,584 Matthews Retail Advisors 14
AREA OVERVIEW Fort Oglethorpe, Georgia Located only 5 minutes from Chattanooga, Tennessee, and about 90 minutes north of Atlanta, Georgia, Fort Oglethorpe is a city with a unique and curious history. The city sits primarily in western Catoosa County of Tennessee with some portions in noretheastern Walker County in Georgia. From its Cherokee Indian past to the Civil War, from days as a U.S. Army Cavalry Post to the past half-century as a thriving city, many diverse epochs and events have contributed to the Fort Oglethorpe of today. Fort Oglethorpe is the northern gateway to the Chickamauga-Chattanooga National Military Park, an outdoor laboratory of a critical battle and a place of serene natural beauty. TOP EMPLOYERS - Walker County, GA 1. Roper 2. SI, Inc. 3. Hutcheson Medical Center 4. Walker County Board of Education 5. Shaw Industries Matthews Retail Advisors 15
Chattanooga, TN Located in southeastern Tennessee, Chattanooga, known as the Scenic City, is set along the Tennessee River in the the foothills of the Appalachian Mountains. It is the seat of Hamilton County, the 4th largest city in Tennessee and the home of NCAA Division I-AA national football championships. The combination of Chattanooga s scenic beauty, stable population and economy, civic vitality and cross-sector partnerships and strategic location has made it one of the most progressive and livable mid-size cities in the United States. Having been nationally recognized for the rennaissance of its beautiful downtown and the redevelopment of its riverfront, the city shows the determination of its citizens to enrich the lives of residents and visitors alike. Attractions such as the Tennessee Aquarium, Lookout Mountain, Civil War battlefield sites, the African American Museum, and the Appalachian Trail bring thousands of people to the area. People who love the outdoors use Chattanooga as a base for hang-gliding, bass fishing, mountain climbing and caving expeditions. The local economy includes a diversified mix of manufacturing and service industries, four colleges, and several preparatory schools known throughout the south. Notable businesses in Chattanooga include the world s first Coca-Cola bottling plant, CraftWork s Restaurants & Breweries, and CBL & Associates to name a few. Additionally, as the birthplace of the tow truck, Chattanoogs is the home of the International Towing and Recovery Hall of Fame Museum. Matthews Retail Advisors 16
KFC 663 Battlefield Parkway, Fort Oglethorpe, GA 30742 OFFERING MEMORANDUM Ryan Muller Associate License No. 01985081 O 310.919.5786 M 303.916.4362 ryan.muller@matthews.com Gary Chou VP & Director License No. 01911222 O 310.919.5827 M 714.928.8016 gary.chou@matthews.com Kyle Matthews Broker of Record License No. 363764 841 Apollo Street, Suite 150 El Segundo, CA 90245 www.matthews.com