OFFERING MEMORANDUM - KFC - NNNPro
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Subject Property
KFC
EXCLUSIVE NET -LEASE OFFERING
OFFERING
MEMORANDUM 9551 Regency Square Blvd
Jacksonville, FL 32225
Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of guarantors may fail to pay the lease rent or property taxes, or may has not verified, and will not verify, any of the information
Net Leased property as follows: fail to comply with other material terms of the lease; cash flow contained herein, nor has Marcus & Millichap conducted any
may be interrupted in part or in whole due to market, economic, investigation regarding these matters and makes no warranty or
The information contained in this Marketing Brochure has been environmental or other conditions. Regardless of tenant history representation whatsoever regarding the accuracy or
obtained from sources we believe to be reliable. However, Marcus and lease guarantees, Buyer is responsible for conducting his/her completeness of the information provided. All potential buyers
& Millichap has not and will not verify any of this information, nor own investigation of all matters affecting the intrinsic value of the must take appropriate measures to verify all of the information
has Marcus & Millichap conducted any investigation regarding property and the value of any long-term lease, including the set forth herein.
these matters. Marcus & Millichap makes no guarantee, warranty likelihood of locating a replacement tenant if the current tenant
or representation whatsoever about the accuracy or completeness should default or abandon the property, and the lease terms that NON-ENDORSEMENT NOTICE
of any information provided. Buyer may be able to negotiate with a potential replacement
tenant considering the location of the property, and Buyer’s legal Marcus & Millichap Real Estate Investment Services of Florida, Inc.
As the Buyer of a net leased property, it is the Buyer’s ability to make alternate use of the property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any
responsibility to independently confirm the accuracy and By accepting this Marketing Brochure you agree to release Marcus commercial tenant or lessee identified in this marketing package.
completeness of all material information before completing any & Millichap Real Estate Investment Services and hold it harmless The presence of any corporation’s logo or name is not intended to
purchase. This Marketing Brochure is not a substitute for your from any kind of claim, cost, expense, or liability arising out of indicate or imply affiliation with, or sponsorship or endorsement
thorough due diligence investigation of this investment your investigation and/or purchase of this net leased property. by, said corporation of M&M, its affiliates or subsidiaries, or any
opportunity. Marcus & Millichap expressly denies any obligation agent, product, service, or commercial listing of M&M, and is
to conduct a due diligence examination of this Property for Buyer. CONFIDENTIALITY AND DISCLAIMER solely included for the purpose of providing tenant lessee
information about this listing to prospective customers.
Any projections, opinions, assumptions or estimates used in this The information contained in the following Marketing Brochure is
Marketing Brochure are for example only and do not represent proprietary and strictly confidential. It is intended to be reviewed ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE
the current or future performance of this property. The value of a only by the party receiving it from Marcus & Millichap and should CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE
net leased property to you depends on factors that should be not be made available to any other person or entity without the DETAILS.
evaluated by you and your tax, financial and legal advisors. written consent of Marcus & Millichap. This Marketing Brochure
has been prepared to provide summary, unverified information to SPECIAL COVID-19 NOTICE
Buyer and Buyer’s tax, financial, legal, and construction advisors prospective purchasers, and to establish only a preliminary level
should conduct a careful, independent investigation of any net of interest in the subject property. The information contained All potential buyers are strongly advised to take advantage of their
opportunities and obligations to conduct thorough due diligence and seek
leased property to determine to your satisfaction with the herein is not a substitute for a thorough due diligence
expert opinions as they may deem necessary, especially given the
suitability of the property for your needs. investigation. Marcus & Millichap has not made any investigation, unpredictable changes resulting from the continuing COVID-19 pandemic.
and makes no warranty or representation, with respect to the Marcus & Millichap has not been retained to perform, and cannot conduct,
Like all real estate investments, this investment carries significant income or expenses for the subject property, the future projected due diligence on behalf of any prospective purchaser. Marcus & Millichap’s
risks. Buyer and Buyer’s legal and financial advisors must request financial performance of the property, the size and square footage principal expertise is in marketing investment properties and acting as
and carefully review all legal and financial documents related to of the property and improvements, the presence or absence of intermediaries between buyers and sellers. Marcus & Millichap and its
the property and tenant. While the tenant’s past performance at contaminating substances, PCB’s or asbestos, the compliance with investment professionals cannot and will not act as lawyers, accountants,
contractors, or engineers. All potential buyers are admonished and advised
this or other locations is an important consideration, it is not a State and Federal regulations, the physical condition of the
to engage other professionals on legal issues, tax, regulatory, financial, and
guarantee of future success. Similarly, the lease rate for some improvements thereon, or the financial condition or business accounting matters, and for questions involving the property’s physical
properties, including newly-constructed facilities or newly- prospects of any tenant, or any tenant’s plans or intentions to condition or financial outlook. Projections and pro forma financial
acquired locations, may be set based on a tenant’s projected sales continue its occupancy of the subject property. The information statements are not guarantees and, given the potential volatility created by
with little or no record of actual performance, or comparable contained in this Marketing Brochure has been obtained from COVID-19, all potential buyers should be comfortable with and rely solely on
rents for the area. Returns are not guaranteed; the tenant and any sources we believe to be reliable; however, Marcus & Millichap their own projections, analyses, and decision-making.
Table of Contents
Investment Highlights 4
Financial Analysis 5
Concept Overview 6
Surrounding Area 7
Location Overview 8
Local Map 9
Property Photos 10-11
Surrounding Area Photos 12
Regional Map 13
Demographics 14
Market Overview 15
Subject Property
Investment Highlights
PRICE: $2,285,714 | CAP: 5.25% | RENT: $120,000
Representative Photo
About the Investment
✓ Long Term, 20-Year Absolute Triple Net (NNN) Lease with Zero Landlord
Responsibilities
✓ Four (4) Option Periods of Five (5) Years Each | Potential for Total Lease Term of 40
Years
✓ Strong Hedge Against Inflation | Ten (10%) Percent Rental Increases Every Five (5)
Years
About the Location
✓ Dense Retail Corridor | Target, Lowes, The Home Depot, Ross Dress for Less, Best
Buy, Aldi, Ashley HomeStore, Bath & Body Works, Burger King, Zaxby’s, Red Lobster,
Chipotle, Chick-fil-A, Panera Bread and Many More
✓ Robust Demographics | Population Exceeds 200,000 Individuals Within a Five-Mile
Radius
✓ Strong Traffic Counts | Over 55,920 and 39,331 Vehicles Per Day Along Southside
Corridor and Monument Road
✓ Large Academic Presence | Florida State College at Jacksonville South Campus and
University of North Florida are Within a five-mile Radius | Total Combined
Enrollment of Approximately 60,000 Students
✓ Compelling Location Fundamentals | Located in Jacksonville, FL | Largest City in
Florida
About the Tenant / Brand
✓ KFC is the World’s Most Popular Chicken Restaurant Chain Serving More Than 12
Million Customers Per Day in 125 Countries
✓ KFC operates more than 17,000 restaurants in the Unites States and internationally
✓ Fowler Foods | Owns And Operates 88 Restaurants In 8 States Including 23 KFC
Restaurants
✓ KFC’s parent company is Yum! Brands, Inc., the world’s largest restaurant company in
terms of system restaurants, with more than 40,000 locations in more than 130
countries and territories and employing more than one million associates
KFC – Jacksonville, FL 4
Financial Analysis
PRICE: $2,285,714 | CAP: 5.25% | RENT: $120,000
PROPERTY DESCRIPTION RENT SCHEDULE
Lease Year Annual Rent Monthly Rent Rent Escalation
Property KFC
Year 1 $120,000 $10,000 -
Property Address 9551 Regency Square Blvd
Year 2 $120,000 $10,000 -
City, State ZIP Jacksonville, FL 32225 Year 3 $120,000 $10,000 -
Year Built / Renovated 2001 Year 4 $120,000 $10,000 -
Building Size (SF) 2,474 Year 5 $120,000 $10,000 -
Lot Size (Acres) +/- 0.88 Acres Year 6 $132,000 $11,000 10.00%
Type of Ownership Fee Simple Year 7 $132,000 $11,000 -
Year 8 $132,000 $11,000 -
THE OFFERING Year 9 $132,000 $11,000 -
Purchase Price $2,285,714 Year 10 $132,000 $11,000 -
CAP Rate 5.25% Year 11 $145,200 $12,100 10.00%
Annual Rent $120,000 Year 12 $145,200 $12,100 -
Year 13 $145,200 $12,100 -
LEASE SUMMARY Year 14 $145,200 $12,100 -
Property Type Net-Leased Restaurant Year 15 $145,200 $12,100 -
Tenant / Guarantor North Florida Foods, LLC Year 16 $159,720 $13,310 10.00%
Lease Commencement April 1, 2021 Year 17 $159,720 $13,310 -
Lease Expiration March 31, 2041 Year 18 $159,720 $13,310 -
Year 19 $159,720 $13,310 -
Lease Term Remaining 20 Years
Year 20 $159,720 $13,310 -
Lease Type Triple Net (NNN)
Roof & Structure Tenant Responsible INVESTMENT SUMMARY
Marcus & Millichap is pleased to present the exclusive listing for a KFC located at 9551
Rental Increases 10% Every Five (5) Years Regency Square Blvd in Jacksonville, FL. The site consists of roughly 2,474 rentable
Options to Renew Four (4), Five (5)-Year Options square feet of building space on estimated 0.88-acre parcel of land. This KFC is subject
to a 20-year absolute triple-net (NNN) lease, which will commence on April 1, 2021.
The rent will be $120,000 and is scheduled to increase 10% every 5 years throughout
the base term and in each of the four (4), five (5)-year renewal options.
KFC – Jacksonville, FL 5
Concept Overview
About KFC
Arby's is the place for people hungering for a unique,
KFC Corporation, based in Louisville, Kentucky, is one of the few
better
brands tasting
in America alternative
that can boast to traditional fast food.
a rich, decades-long historyIt's
of the
favorite
success andplace for people
innovation. KFC iswho crave most
the world’s something
popular different
chicken
restaurant chain, specializing in that same Original
and better. Serving one-of-a-kind menu items, Arby's Recipe® along with is
Extra Crispy™ chicken, home-style sides and buttermilk biscuits.
well
Thereknown
are overfor slow-roasted
20,500 KFC outlets inand morefreshly
than 125 sliced roast
countries andbeef
sandwiches andthefamous
territories around world. ItMarket Fresh
is estimated that,sandwiches,
on average, morewraps
than 185 million people see a KFC commercial
and salads, made with wholesome ingredients and servedat least once a week—
that’s more than half the U.S. population. The KFC system serves
with
morethethanconvenience
12 million customersof aeach
drive-thru.
day in more than 115 countries
and territories around the world. KFC operates more than 17,000
restaurants
From in theArby's
day one, Unites Roast
States and
Beef internationally.
Restaurants KFC’s parent an
offered
company is Yum! Brands, Inc., the world’s largest restaurant company
innovative menu,
in terms of system offeringwith
restaurants, guests
moresomething other than
than 40,000 locations in
hamburgers
more than 130in the newly
countries inspiredand
and territories quick service
employing moresegment.
than
one million
When associates. veterans
foodservice Yum! is ranked
Leroynumber
and201 on theRaffel
Forrest Fortune
500 list, with revenues exceeding $13 billion in 2012.
opened the first Arby's in Boardman, Ohio on July 23, 1964,
customers
About Fowler enjoyed roast beef sandwiches, potato chips,
Foods
and Texas sized iced teas. To name their new venture, the
Fowler Foods
brothers is an experienced
decided food which
on Arby's, owner and operator
stands forbased outthe
R.B.,
of Jonesboro, AR that was founded in 1970. The franchisee currently
initials of the Raffel Brothers- although many suspect the
owns and operates 88 restaurants in 8 states including 23 KFC
R.B. standsFowler
restaurants. for roast
Foods beef . total employees across all of its
has 1,500
locations.
KFC – Jacksonville, FL 6
Surrounding Area
9551 Regency Sq Blvd, Jacksonville, FL 32225
ARLINGTON EXPY
KFC – Jacksonville, FL 7
Location Overview
9551 Regency Sq Blvd, Jacksonville, FL 32225
This KFC property is situated on Regency Sq Blvd, which boasts an average
daily traffic count of 8,280 vehicles. Regency Sq Blvd intersects with the
Southside Corridor and Monument Road which bring an additional 55,290 and
39,331 vehicles into the immediate area daily, respectively. There are ADTC: 52,290
approximately 81,517 individuals residing within a three-mile radius of the
subject property and 200,142 individuals within a five-mile radius.
The subject property benefits from being well-positioned in an extremely
dense retail corridor consisting of national and local tenants, shopping
centers, academic institutions, hospitality accommodations and other notable
points of interest all within close proximity of this property. Major national
tenants in the area include Target, Lowes, The Home Depot, Ross Dress for
Less, Best Buy, Aldi, Ashley HomeStore, Bath & Body Works, Burger King,
Zaxby’s, Red Lobster, Chipotle, Chick-fil-A, Panera Bread, as well as many
more. the property benefits from being located in close proximity of
numerous academic institutions. Both Florida State College at Jacksonville
South Campus and University of North Florida are within a five-mile radius of
the property. The University of North Florida has an enrollment greater than
15,000 students, while Florida State College at Jacksonville serves over 45,000
students.
ADTC: 8,280
Jacksonville is a seaport city, the most populous city in the state of Florida, and
the most populous city in the southeastern United States. The city is the
cultural, commercial and financial center of Northern Florida. A major military
and civilian deep-water port, the city’s riverine location supports two United
States Navy bases and the Port of Jacksonville, Florida’s third-largest seaport. ADTC: 39,331
The Port of Jacksonville is a leading port in the United States for automobile
imports, as well as the leading transportation and distribution hub in the state.
Jacksonville serves as headquarters for various banking, insurance, healthcare,
logistics, and other institutions. One professional sports team, the Jacksonville
Jaguars of the National Football League, plays their home games in downtown
Jacksonville. Jacksonville is home to 22 miles of beaches that allow residents
or visitors to surf, kayak, swim, boat, and fish.
KFC – Jacksonville, FL 8
Local Map
9551 Regency Sq Blvd, Jacksonville, FL 32225
KFC – Jacksonville, FL 9
Property Photo KFC – Lakeland, FL 10
Property Photo KFC – Lakeland, FL 11
Surrounding Area Photos KFC – Lakeland, FL 12
Regional Map
9551 Regency Sq Blvd, Jacksonville, FL 32225
FLORIDA
KFC – Jacksonville, FL 13Demographics
9551 Regency Sq Blvd, Jacksonville, FL 32225
1 Miles 3 Miles 5 Miles
POPULATION
2025 Projection 7,487 83,458 205,504
5 Miles 2020 Estimate 7,173 81,517 200,142
2010 Census 6,349 75,446 184,210
2000 Census 4,199 73,702 169,931
3 Miles INCOME
Average $58,179 $65,120 $73,239
Median $43,818 $48,606 $54,613
1 Mile Per Capita $28,296 $25,858 $28,543
HOUSEHOLDS
2025 Projection 3,669 33,256 79,910
2020 Estimate 3,475 32,261 77,197
2010 Census 3,079 29,839 71,087
2000 Census 1,929 29,049 65,446
HOUSING
2020 $157,971 $161,224 $184,831
EMPLOYMENT
2020 Daytime Population 12,825 72,147 207,765
2020 Unemployment 3.52% 2.95% 2.83%
2020 Median Time Traveled 25 Mins 25 Mins 25 Mins
RACE & ETHNICITY
White 48.87% 56.05% 59.54%
Native American 0.13% 0.13% 0.14%
African American 36.91% 29.32% 24.82%
Asian/Pacific Islander 5.15% 5.29% 6.48%
KFC – Jacksonville, FL 14Market Overview
9551 Regency Sq Blvd, Jacksonville, FL 32225
Jacksonville, FL Jacksonville has a young population and a strong, diversified economy. In
2017, Jacksonville had an estimated population of 892,062, ranking them as the twelfth
largest city in the United States. Historically, military operations, sea trade, and paper
manufacturing drove Jacksonville’s expansion. Growing technical, manufacturing, service,
and tourism industries have supplemented this foundation. The metro is home to three
Fortune 500 companies: Fidelity National Information Services, Fidelity National Financial,
and CSX. The city has developed a large financial services sector, led by Bank of America,
Fidelity National, and Citibank. Jacksonville’s emerging industrial base is centered largely
around medical product research and manufacturing. More than 8 million tons of cargo pass
through Jacksonville’s port each year, and the development of cruise ship service will
promote further expansion. Jacksonville’s riverine location facilitates Naval Station Mayport,
Naval Air Station Jacksonville, and the U.S. Marine Corps Blount Island Command.
Jacksonville's military bases and the nearby Naval Submarine Base Kings Bay form the third
largest military presence in the United States.
Warm weather and sunshine attract many to communities such as Atlantic Beach, Neptune
Beach and Jacksonville Beach. Sport fishing, golf, and tennis are among the most popular
recreational activities. Others take advantage attractions like the Museum of Science &
History, the Cummer Museum of Art, the Mandarin Museum & Historical Society, and the
Museum of Contemporary Art Jacksonville. Additional sites of interest include the home of
the Jacksonville Jaguars, TIAA Bank Field, and the Jacksonville Zoo, as well as the Jacksonville
Landings, a mix of retail and restaurants along the St. Johns River. For those visiting
Jacksonville, the Jacksonville International Airport is one option of arrival. The airport had an
annual passenger traffic that exceeded 5,591,886 passengers in 2017.
KFC – Jacksonville, FL 15Glen Kunofsky Matthew Anuszkiewicz
Glen.Kunofsky@marcusmillichap.com Matthew.Anuszkiewicz@marcusmillichap.com
(212) 430-5115 (914) 403-7574
E XC LU S I V E N E T - L EA S E O F F E R I N G
Ryan Nee
Marcus & Millichap
5900 North Andrews Ave., Suite 100
Fort Lauderdale, FL 33309
Tel: (954) 245-3400
Fax: (954) 245-3410
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