Kentucky Fried Chicken - 600 Paterson Plank Road, Union City, New Jersey Operated by KBP Foods - Largest KFC Operator in the Country 581 Locations ...
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Kentucky Fried Chicken
Operated by KBP Foods – Largest KFC Operator in the Country
581 Locations in 23 States
600 Paterson Plank Road, Union City, New Jersey
Subject Property
OFFERING MEMORANDUM
EXCLUSIVE NET –LEASE OFFERING
Table of Contents
Financial Overview
• Offering Terms
• Lease Summary
• Lease Summary
• Concept Overview
• Guarantor Overview
Property Overview
• Location Highlights
• Surrounding Area Map
• Location Overview
• Property Photos
• Surrounding Area Photos
Demographics
• Population
• Income
• Employment
Offering Terms Investment Highlights
➢ Largest KFC Operator in the Country | 600 Unit Corporate
Price NOI CAP Rate Guaranty: This location is operated by KBP Foods. KBP is the
$2,728,421 $129,600 4.75% largest KFC operator nationally, operating 581 restaurants in 23
states. The lease has a full corporate guaranty from KBP Foods.
➢ Located Just Two Miles West of New York City
Financial Summary ➢ Long Term Triple-Net (NNN) Lease: The tenant is subject to a 20-
Year triple-net (NNN) lease with 16 years remaining. The lease
Property Name Kentucky Fried Chicken has no landlord responsibilities and four, five-year renewal
option.
Address 600 Paterson Plank Road ➢ Strong Brand Recognition: KFC serves more than 12 million
customers each day in more than 115 countries and territories
City, ST, ZIP Union City, New Jersey 07087 around the world. KFC operates more than 19,500 restaurants in
Price $2,728,421 the Unites States and internationally.
CAP Rate 4.75% Investment Overview
Marcus & Millichap is pleased to present the Kentucky Fried Chicken located at
Base Annual Rent $129,600 600 Paterson Plank Road in Union City, NJ. The building consists of
approximately 2,800 square feet of building space and is situated on
INVESTMENT OVERVIEW
Building Size 2,800 SF approximately 0.46 acres of land. The tenant is subject to a 20-Year triple-net
(NNN) lease with 16 years remaining. The base rent is $129,600 with 8 percent
Lot Size 0.46 Acres rental increases every five years. There are four, five-year renewal options in
addition to the initial term.
Based in Louisville, Kentucky, KFC Corporation is the franchisor of the world’s
most popular chicken restaurant chain. KFC has been serving customers
complete, freshly prepared family meals since 1952. KFC serves more than 12
million customers each day in more than 115 countries and territories around the
world. KFC operates more than 19,500 restaurants in the Unites States and
internationally.
KBP Foods operates 581 restaurants in 23 states, making them the largest KFC
Operator in the United States. Corporate Revenues in 2017 were over $500M.
KBP Foods has been named one of the top 100 Private Companies & Corporate
Report 100 Fastest Growing Companies by Ingram's in June 2015. In May of
2016, KBP Foods acquired 91 additional KFC and Taco Bell locations in several
states as one of the largest YUM! Brands operators. In 2017, KBP acquired an
additional 78 KFC locations in Texas, Illinois, and Kansas.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 3
Lease Summary Annualized Operating Data
Property Name Kentucky Fried Chicken Annual Monthly
Lease Year
Rent Rent
Property Type Net Leased Quick Service Restaurant
June 3rd , 2018 - June 2nd 2019 $120,000 $10,000
June 3rd , 2019 - June 2nd 2020 $129,600 $10,800
Ownership Fee Simple June 3rd , 2020 - June 2nd 2021 $129,600 $10,800
June 3rd , 2021 - June 2nd 2022 $129,600 $10,800
Tenant FQSR, LLC: 600 Locations
June 3rd , 2022 - June 2nd 2023 $129,600 $10,800
Lease Term 20 Years
June 3rd , 2023 - June 2nd 2024 $129,600 $10,800
Lease Commencement June 3rd, 2014 June 3rd , 2024 - June 2nd 2025 $139,968 $11,664
Lease Expiration June 2nd, 2034 June 3rd , 2025 - June 2nd 2026 $139,968 $11,664
June 3rd , 2026 - June 2nd 2027 $139,968 $11,664
Lease Term Remaining 16 Years
June 3rd , 2027 - June 2nd 2028 $139,968 $11,664
Lease Type Absolute Triple-Net (NNN) June 3rd , 2028 - June 2nd 2029 $139,968 $11,664
Roof & Structure Tenant Responsible June 3rd , 2029 - June 2nd 2030 $151,165 $12,597
June 3rd , 2030 - June 2nd 2031 $151,165 $12,597
June 3rd , 2031 - June 2nd 2032 $151,165 $12,597
Options to Renew Four- Five Year
June 3rd , 2032 - June 2nd 2033 $151,165 $12,597
Rental Increases 8% Every Five Years June 3rd , 2032 - June 2nd 2034 $151,165 $12,597
Annual Rent $129,600
CAP Rate 4.75%
Price $2,728,421
* Seller will credit Buyer the difference in rent between
the closing date & rent increase date
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 4
COMPANY & TENANT OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 5
Concept Overview:
About Kentucky Fried Chicken
Kentucky Fried Chicken (KFC) is a fast food restaurant chain that
specializes in fried chicken and is headquartered in Louisville, Kentucky,
United States. It is the world's second largest restaurant chain (as
measured by sales) after McDonald's, with almost 20,000 locations
globally in 123 countries and territories as of December 2015. The
company is a subsidiary of Yum! Brands, a restaurant company that also
owns the Pizza Hut and Taco Bell chains.
➢ Kentucky Fried Chicken is
headquartered in Louisville, KFC was founded by Harland Sanders, an entrepreneur who began selling
fried chicken from his roadside restaurant in Corbin, Kentucky, during
Kentucky. KFC has over 19,500
the Great Depression. Sanders identified the potential of the
locations in more than 115 restaurant franchising concept, and the first "Kentucky Fried Chicken"
counties and territories. franchise opened in Utah in 1952. KFC popularized chicken in the fast food
industry, diversifying the market by challenging the established dominance
➢ KFC is the world’s second largest of the hamburger. By branding himself as "Colonel Sanders", Harland
restaurant chain after McDonald’s became a prominent figure of American cultural history, and his image
CONCEPT OVERVIEW
remains widely used in KFC advertising.
measured by sales, and the
.
world’s most popular chicken KFC was one of the first fast food chains to expand internationally, opening
brand. outlets in Canada, the United Kingdom, Mexico, and Jamaica by the mid-
1960s. The chain continued to expand overseas and in 1987 KFC became
➢ KFC Corp. is a subsidiary of Yum! the first Western restaurant chain to open in China. The chain has since
Brands, which also owns Pizza expanded rapidly in China, which is now the company's single largest
market.
Hut and Taco Bell. Yum! Brands
has almost 42,000 restaurants in KFC's original product is pressure fried chicken pieces, seasoned with
more than 125 countries and Sanders' recipe of 11 herbs and spices. The constituents of the recipe
territories, making it one of the represent a notable trade secret. Larger portions of fried chicken are
world’s largest restaurant served in a cardboard "bucket", which has become a well known feature
companies. of the chain since it was first introduced by franchisee Pete Harman in
1957. 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
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 6
Guarantor Overview:
About KBP Foods
Consistently ranked among the 10 fastest-growing restaurant
companies in the United States, KBP Foods now operates more
than 600 KFC, Taco Bell and Long John Silver’s restaurants in 14
states. In 2016, it added 93 locations, making it the biggest
➢ KBP Foods operates 581 acquisition year yet, and landed on Ingram’s Corporate Report
restaurants in 23 states and has of the 100 fastest-growing companies list for the fourth time.
Regional Vice Presidents in every KBP has grown to become one of the largest YUM! Brands
major geographical region. Our franchisees in the United States, boasting more than 7,000
Corporate Office and Restaurant employees and upwards of $400 million in annual revenue.
Support Center are located in
Overland Park, KS.
GUARANTOR OVERVIEW
➢ KBP Foods has been named one
of the top 100 Private Companies
& Corporate Report 100 Fastest
Growing Companies
➢ The success KBP Foods has had
with growth through acquisition
is directly correlated to diligent
selection criteria, prudent and
responsible capital structure and
industry leading operational
talent. Ultimately giving our
people significant opportunity to
growth themselves personally,
professionally and financially.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 7
RECENT SALES COMPARABLES This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 8
LOCATION OVERVIEW
Location Highlights Location Overview
➢ Located Just Two Miles West of New York City This KFC is located at 600 Paterson Plank Road in Union City, New
Jersey. Union City is a city in Hudson County, New Jersey just two
➢ Union City is Part of the New York City MSA with miles west of New York City via the Lincoln Tunnel. The city is part of
Approximately 24,000,000 People the New York Metropolitan area which has an estimated population
➢ Great Demographics: 540,000 People Within a Three- of 22,214,083.
Mile Radius and 1,600,000 People Within a Five-Mile
Surrounding Retail and Points of Interest
Radius of the Subject Property
The subject property is well-positioned along a dense retail corridor
➢ KFC is Located in a Dense Urban Infill, Consisting of home to an array of national, regional, and local brands. The property
Shopping Centers, National and Local Tenants, Numerous is adjacent to a Wells Fargo and a CVS Pharmacy. The property is also
Single Family Residences, Apartment Communities, and in front of the Thomas A Edison Elementary School. Additional retail
in the immediate area includes: Bravo Supermarket, Rite Aid,
Universities, all Within Close Proximity to the Subject
AutoZone, Metro PCS, and Payless Shoe Source, just to name a few.
Property Within a mile to the west of Union City are U.S. Route 1, Route 9,
Route 3, and the New Jersey Turnpike. The city is bisected by New
Jersey Route 495, a vehicular cut built in conjunction with the Lincoln
Tunnel. The Bergenline Avenue Station of the Hudson-Bergen Light
Rail is located at 49th Street near the city line with West New York
and North Bergen. New Jersey Transit bus service transportation is
available to points in Hudson, Bergen, and Passaic counties and to
ADTC 63,000 the Port Authority Bus Terminal in Midtown Manhattan.
ADTC 55,000
LOCATION OVERVIEW
Traffic Counts and Demographics
There are approximately 515,000 people within a three-mile radius
and 1,518,500 people within a five-mile radius of this KFC. The
ADTC 14,723 property is situated on the hard corner of Paterson Plank Road and
6th Street area. The subject property is located near the intersection
of Patterson Plank Road and John F. Kennedy Blvd experiences strong
combined counts of over 55,000 vehicles per day.
New York, New York
Union City, New Jersey is located just two miles west of New York City. New
York City is home to the Empire State Building, Times Square, Statue of
Liberty and other iconic sites, New York City is a fast-paced, globally
influential center of art, culture, fashion and finance. The city’s 5 boroughs
Clio, MI sit where the Hudson River meets the Atlantic Ocean, with the island
borough of Manhattan at the “Big Apple's" core.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap
10SURROUNDING AREA MAP This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 11
SURROUNDING AREA MAP This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 12
PROPERTY PHOTOSA This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 13
LOCAL MAP This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 14
REGIONAL MAP This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 15
DEMOGRAPHICS
Population POPULATION
In 2014, the population in your selected geography is 1,578,339. The population 1-Mile 3-Mile 5-Mile
has changed by 10.77% since 2000. It is estimated that the population in your area
will be 1,630,640 five years from now, which represents a change of 3.31% from 2010 93,521 514,028 1,518,487
the current year. The current population is 48.31% male and 51.68% female. The
median age of the population in your area is 36.1, compare this to the Entire US 2014 97,549 538,955 1,578,340
average which is 37.3. The population density in your area is 20,062.67 people per 2019 100,369 561,804 1,630,640
square mile.
2014 HOUSEHOLD INCOME
Income
DEMOGRAPHICS
3-Mile 5-Mile 10-Mile
In 2014, the median household income for your selected geography is $76,802,
compare this to the Entire US average which is currently $51,972. The median Average $88,212 $108,020 $129,297
household income for your area has changed by 44.07% since 2000. It is estimated
Median $57,851 $65,496 $76,802
that the median household income in your area will be $90,400 five years from
now, which represents a change of 17.70% from the current year.
TOP EMPLOYERS IN HUDSON COUNTY
Employment Employer # of Employees
In 2014, there are 2,073,642 employees in your selected area, this is also known
as the daytime population. The 2000 Census revealed that 78.33% of employees UBS Financial Services 5,000
are employed in white-collar occupations in this geography, and 21.50% are
employed in blue-collar occupations. In 2014, unemployment in this area is 7.10%. Goldman Sachs & Co, Inc. 3,800
In 2000, the average time traveled to work was 32.0 minutes.
United States Parcel Service 2,200
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears
all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus &
Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 17You can also read
