OFFERING MEMORANDUM - KFC - NNNPro

 
OFFERING MEMORANDUM - KFC - NNNPro
Subject Property

                 KFC
     EXCLUSIVE NET -LEASE OFFERING

OFFERING
MEMORANDUM                           9551 Regency Square Blvd
                                       Jacksonville, FL 32225
OFFERING MEMORANDUM - KFC - NNNPro
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.
OFFERING MEMORANDUM - KFC - NNNPro
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
OFFERING MEMORANDUM - KFC - NNNPro
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
OFFERING MEMORANDUM - KFC - NNNPro
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
OFFERING MEMORANDUM - KFC - NNNPro
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
OFFERING MEMORANDUM - KFC - NNNPro
Surrounding Area
          9551 Regency Sq Blvd, Jacksonville, FL 32225

                                                     ARLINGTON EXPY

KFC – Jacksonville, FL                                                7
OFFERING MEMORANDUM - KFC - NNNPro
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
OFFERING MEMORANDUM - KFC - NNNPro
Local Map
          9551 Regency Sq Blvd, Jacksonville, FL 32225

KFC – Jacksonville, FL                                   9
OFFERING MEMORANDUM - KFC - NNNPro
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                                             13
Demographics
          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                                                                                           14
Market 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                                                                                                                                15
Glen 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
License: BK3154667
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