KENTUCKY FRIED CHICKEN - 670 Yellowstone Ave. Pocatello, ID 83201
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FOR SALE | INVESTMENT OPPORTUNITY
KENTUCKY FRIED
670 Yellowstone Ave. Pocatello, ID 83201
CHICKEN
OFFERING MEMORANDUM
LEW MANGLOS 755 W. Front St
Investment Services Suite 300
208 472 2841 Boise, ID 83702
lew.manglos@colliers.com www.colliers.com
KENTUCKY FRIED CHICKEN | COLLIERS INTERNATIONAL | 1
Table of Contents
> EXECUTIVE OVERVIEW
Offering Summary .......................................................................... 3
> FINANCIAL OVERVIEW
Investment Summary....................................................................... 4
> TENANT OVerviEW
Tenant Profile .................................................................................. 5
> Property OVERVIEW
Property Aerial................................................................................. 6
Property Photographs...................................................................... 7
Trade Area....................................................................................... 11
Local Map........................................................................................12
Regional Map...................................................................................14
KENTUCKY FRIED CHICKEN | COLLIERS INTERNATIONAL | 2
OFFERING SUMMARY
Investment Summary > PRICING SUMMARY
Colliers International presents for sale the fee simple interest in a Kentucky Fried Chicken located in
Property Address................................670 Yellowstone Ave,
Pocatello, Idaho.
Pocatello, ID 83201
Lease Commencement................................8/1/2012 Building Size (SF) .........................................................3,226
Lease Expiration..........................................7/31/2025
Lease Term..................................................10 years Lot Size (acres).............................................................0.576
Options.........................................................None*
Land Size (SF) ............................................................. 25,110
Ownership ............................................................Fee Simple
renew for an additional one year term, subject to a 1.5% annual rent increase. The Lease shall continue
to renew annually the with the increased rent, until the Lessee gives Lessor six months notice prior Price PSF ................................................................. $477.37
to July 31st of the renewal term
$/SF Land Gross.........................................................$61.33
Highlights:
» Lease will be guaranteed by multi-unit operator, S&H corporation who operates 50+ KFC
Purchase Price/PSF .................................. $1,540,000
restaurants primarily located in states west of the Mississippi River
Cap Rate ........................................................ 6%
» Lease was extended for 13 years on August 1, 2012, NNN lease with Landlord responsible for roof
and structure; site underwent recent reimaging Base Rent ...................................................... 92,701
» Rare 1.75% annual rental increases through July 2018, and 1.5% annual rent increases thereafter
with 1.5% during the holdover
Pro Forma Cap (7/2016) ............................................ 6.00%
» Located on busy thoroughfare with an abundance of surrounding retail sites including McDonald’s,
Walgreens, Taco Bell, Autozone and Domino’s Pizza 10-year Avg Cap...........................................................6.37%
» Option to Purchase - at the expiration of the initial term, and each renewal term if elected - Lessee 10-year Unleveraged IRR.............................................6.39%
shall have the option to acquire leased premisis for “Fair Market Value”
» Additional Percentage Rent: Lessor is also entitled to an additional percentage of sales rent to the
extent that 7.5% of the Lessee’s Annual Sales exceed the year’s Annual Rent
KENTUCKY FRIED CHICKEN | COLLIERS INTERNATIONAL | 3
INVESTMENT SUMMARY
PROPERTY / LOAN ASSUMPTIONS
Name Kentucky Fried Chicken
Building Size (SF) 3,226
Lot Size (Acres) 0.576
Land Area SF 25,110
Loan Type Proposed New
Loan Amount $1,099,842
Interest Rate 4.25%
Amortization 25
Maturity Date 5
Down Payment Percentage 30%
Down Payment $471,361
LTV 70%
PURCHASE ASSUMPTIONS / ANNUALIZED OPERATING DATA
Purchase Price $1,540,000
Cap Rate - Year 1 6%
Price PSF $477.37
$/SF Land Gross $61.33
Year 1
Base Rent (occupied space) $92,701
KENTUCKY FRIED CHICKEN | COLLIERS INTERNATIONAL | 4
TENANT SUMMARY
Tenant Name..............................................S & H Inc.
Lease Commencement................................8/1/2012 LEASE SUMMARY
Lease Expiration........................................7/31/2025 BASE RENT
Original Lease Term......................................13 years
Gross Leaseable Area.................................3,226 SF ANNUAL RENT/ MONTHLY RENT
LEASE YEARS ANNUAL RENT MONTHLY RENT INCREASES
Headquartered......................................Louisville, KY SF / SF
Locations........................................................18,000+ 1/1/15-7/31/16 $92,701 $30.15 $7,725.11 $2.51 1.75%
8/1/16-7/31/17 $94,324 $30.67 $7,860.30 $2.56 1.75%
S&H corporation operates 50+ KFC restaurants 8/1/17-7/31/18 $95,738 $31.13 $7,978.20 $2.59 1.50%
across America primarily located in states west of
8/1/18-7/31/19 $97,175 $31.60 $8,097.88 $2.63 1.50%
the Mississippi River.
8/1/19-7/31/20 $98,632 $32.08 $8,219.35 $2.67 1.50%
8/1/21-7/31/22 $100,112 $32.56 $8,342.64 $2.71 1.50%
8/1/22-7/31/23 $101,613 $33.04 $8,467.77 $2.75 1.50%
® 8/1/23-7/31/24 $103,137 $33.54 $8,594.79 $2.80 1.50%
8/1/24-7/31/25 $104,685 $34.04 $8,723.71 $2.84 1.50%
Lease Notes:
2) Unless Tenant notifies Lessor 6 months prior to July 31, 2025 the Lease
1) Additional Percentage Rent: Lessor is also entitled to an additional percent- shall automatically renew for an addition one year term, subject to a 1.5%
age of sales rent to the extent that 7.5% of the Lessee’s Annual Sales exceed annual rent increase. The lease shall continue to renew annually until the with
the year’s Annual Rent (“Annual Percentage of Sales”) the increased rent, until the Lessee gives Lessor six months notice prior to July
31st of the renewal term
KENTUCKY FRIED CHICKEN | COLLIERS INTERNATIONAL | 5
Property Aerial
®
Subject
KENTUCKY FRIED CHICKEN | COLLIERS INTERNATIONAL | 6
Property Photographs
Side view of property View of subject enterance
KENTUCKY FRIED CHICKEN | COLLIERS INTERNATIONAL | 7
Property Photographs
View of Property with Sign
Side Entrance Rear View of Property
KENTUCKY FRIED CHICKEN | COLLIERS INTERNATIONAL | 8
Surrounding Property Photographs
C&C Cash Register
Neighboring Subway Barrie’s Ski & Sports
KENTUCKY FRIED CHICKEN | COLLIERS INTERNATIONAL | 9
Surrounding Property Photographs
RadioShack Sprint
KENTUCKY FRIED CHICKEN | COLLIERS INTERNATIONAL | 10Local Map
Pocatello
Pocatello
Regional
RegionalAirport,
Airport
Located 8.0 miles away
Located 8.0 miles away
®
Subject Subject
Property
KENTUCKY FRIED CHICKEN | COLLIERS INTERNATIONAL | 11Trade Area
Pocatello, Idaho
Pocatello is the county seat and largest city of Bannock County, with a small
portion on the Fort Hall Indian Reservation in neighboring Power County, in
the southeastern part of the US state of Idaho. It is the principal city of the
Pocatello metropolitan area, which encompasses all of Bannock and Power
counties.
In 2007, Pocatello was ranked twentieth on Forbes list of Best Small Places
for Business and Careers. Pocatello is the home of Idaho State University and
the manufacturing facility of ON Semiconductor.
Top Employers
# Employer # of Employees
1 Idaho State University 3,460
2 Pocatello/Chubbuck School District 1,640
3 Portneuf Medical Center 1,170
Population
4 Heinz 800
1 - Mile 3 - Miles 5 - Miles
5 City of Pocatello 690 Projected Pop. (2019) 12,261 60,203 72,444
6 ON Semiconductor 640 Estimated Pop. (2014) 12,238 58,652 70,521
7 Convergys 600 Census Pop. (2010) 12,311 57,638 69,235
8 Allstate Insurance 500 Census Pop. (2000) 12,486 52,988 62,716
9 Union Pacific Railrod 470 Proj Growth 2014-2019 0.19% 2.64% 2.73%
10 Bannock County 410 Proj Growth 2010-2014 -0.59% 1.76% 1.86%
11 Pocatello Regional Medical Center 360 Proj Growth 2000-2010 -1.40% 8.78% 10.40%
KENTUCKY FRIED CHICKEN | COLLIERS INTERNATIONAL | 12Regional Map
®
Subject
Nevada
Nevada Border Line
Border Line Subject Property
Located 126.0 miles away
Located 126.0 miles away
Great Salt
Great SaltLake,
Lake
Located 124.0 milesaway
Located 124.0 miles away
KENTUCKY FRIED CHICKEN | COLLIERS INTERNATIONAL | 13CONFIDENTIALITY & DISCLAIMER STATEMENT
This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 670 Yellowstone Ave, Pocatello, ID
83201. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a pro-
spective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a
review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the
written consent of Owner or Colliers International. The material is based in part upon information supplied by the Owner and in part upon financial
information obtained by Colliers International from sources it deems reliable. Neither Owner, nor their officers, employees, or agents make any
representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no
legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own
conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree:
1) The Offering Memorandum and its contents are confidential;
2) You will hold it and treat it in the strictest of confidence; and
3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner
detrimental to the interest of the Owner.
Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to pur-
chase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase
the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of Kentucky Fried Chicken or in the future you discontinue such negotiations, then
you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in
connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to
the terms thereof. In no event shall a prospective purchaser have any other claims against Owner or Colliers International or any of their affiliates
or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to
this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no
change in the state of affairs of the Property since the date this Offering Memorandum.
KENTUCKY FRIED CHICKEN | COLLIERS INTERNATIONAL | 14Kentucky Fried Chicken
OFFERING MEMORANDUM
FOR MORE INFORMATION:
LEW MANGLOS
Investment Services
208 472 2841
lew.manglos@colliers.com
COLLIERS INTERNATIONAL | 865 S. Figueroa Street, Suite 3500 | Los Angeles, CA 90017 | Phone (213) 627 1214You can also read
