Taco Bell 435 US-425 | Monticello, AR - Offering Memorandum - LoopNet
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Offering Memorandum
Subject Property
Taco Bell
435 US-425 | Monticello, AR
Confidentiality and Restricted Use Agreement
This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for
your consideration of the opportunity to acquire the commercial property described herein (the “Property”).
This COM may be used only as stated herein and shall not be used for any other purpose, or in any other
manner, without prior written authorization and consent of SJC.
This COM does not constitute or pertain to an offer of a security or an offer of any investment contract.
Offered Exclusively by
This COM contains descriptive materials, financial information and other data compiled by SJC for the
convenience of parties who may be interested in the Property. Such information is not all inclusive and is not
represented to include all information that may be material to an evaluation of the acquisition opportunity
presented. SJC has not independently verified any of the information contained herein and makes no
representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries
and discussions of documentation and/or financial information contained herein are qualified in their Adam Jennings
entirety by reference to the actual documents and/or financial statements, which upon request may be Associate Director
made available. An interested party must conduct its own independent investigation and verification of any ajennings@stanjohnsonco.com
information the party deems material to consideration of the opportunity, or otherwise appropriate, without
reliance upon SJC.
In Association With:
The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the Albert Muller
right to negotiate with any number of interested parties at any time. The Property is offered and sold by its AR Lic. #PB00075459
owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any
customary warranties of title.
BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information
you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in Stan Johnson Company
any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, 3340 Peachtree Road NE | Suite 650
and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon Atlanta, GA 30326
request by SJC at any time, you will return and/or certify your complete destruction of all copies of this P: +1 404.823.6360
COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives,
agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates,
stanjohnsonco.com
officers, employees, representatives, agents and principals, from and with respect to any and all claims and
liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning
the Property; (5) you will not provide this COM or any of the Information to any other party unless you first
obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth
herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an
adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including,
but not limited to, injunctive relief and specific performance, in connection with such a violation and shall
not be required to post a bond when obtaining such relief.
Purchase Price: $2,782,600 Investment Highlights
Cap Rate: 5.63% Excellent Franchisee
K-MAC Enterprises was ranked 16th in the largest franchisees in
the nation (as of 2017), with approximately 251 Taco Bells, and
The Offering estimated revenues of $436M. They are headquartered in Fort
Smith, Arkansas, which is located just 240 miles from the subject property.
Stan Johnson Company is pleased to offer for sale to qualified investors Excellent Sales and Top Performer
a free-standing Taco Bell located at 435 US-425, in Monticello, Arkansas. The Property is a top-performing location, with significant year over year
The Property is located directly off of US-425, which sees over 14,000 sales growth. Sales are 30% over the national average and rent-to-sales sit
vehicles per day and is an outparcel to a 198,000 SF Walmart Supercenter, at a healthy 7.15%.
the only Walmart in town and a major traffic generator.
Close Proximity to Booming Student Population
The Property is 2,490 square feet on 0.69 acres with a drive-thru The Property is located less than three miles from the University of
window. The Tenant is operating under a long-term base lease, and has Arkansas at Monticello. The University has 80 buildings, over 1,600+ Acres,
approximately 14 years remaining, not including option periods. 3 separate campuses (Monticello, McGehee, and Crossett), and currently
has upwards of 4,000 students.
This Property is operated by a very strong franchisee, K-Mac Enterprises,
who operates 251 Taco Bells, 17 KFC locations, and 6 Golden Corral Strong Lease Terms
locations. Estimated revenues for K-Mac Enterprises are $436 Million and it The NNN lease structure provides stable cash flow with no landlord
currently ranks as the 16th largest franchisee in the nation.* obligations. The lease also features four (4), five (5) year options.
*Franchise Times; August 2017
Rental Increases
Lease features 1.00% annual rental increases, allowing for a secure hedge
against long-term inflation.
DENSE
NNN
Lease Structure
RETAIL HUB
Embedded in Dense Retail Hub
The Property is an outparcel to the Ragland Avenue shopping center and
14,737 Vehicles Per Day 251+ Locations
4, 5-Year Options $436M Revenue (2017) is surrounded by dense retail on both sides of the highway with nearby
tenants including Walmart, Pizza Hut, AT&T, Wendy’s, and McDonald’s.
LOCATION RENTAL Best-in-Class Concept
Increases
Less than 3 Miles from University
of Arkansas-Monticello
1% Annual Taco Bell is a leader in the QSR industry and the gold standard for cutting
Rental Increases
edge marketing, product development and brand positioning. A division of
parent Yum! Brands, Taco Bell is a leading growth segment (12% in 2015)
and aggressive expansion of the chain is planned – 8,000 U.S. and 1,000
international locations by 2022, an increase of 27% and 233%, respectively.
Taco Bell | Monticello, AR 3
Lease Abstract Rent Schedule
Taco Bell | Monticello, Arkansas Dates Annual Monthly
Years Increase
Start End Rent Rent
Property Address: 435 US-425 | Monticello, Arkansas
Year 1 3/14/2014 3/13/2015 $150,479 $12,540 -
Tenant: Taco Bell
Year 2 3/14/2015 3/13/2016 $151,984 $12,665 1%
Guarantor: K-MAC Enterprises Year 3 3/14/2016 3/13/2017 $153,504 $12,792 1%
Lease Type: NNN Year 4 3/14/2017 3/13/2018 $155,039 $12,920 1%
Building Size: 2,490 SF Year 5 3/14/2018 3/13/2019 $156,589 $13,049 1%
Land Size: ± 0.69 AC Year 6 3/14/2019 3/13/2020 $158,155 $13,180 1%
Yr. Constructed: 2004 Year 7 3/14/2020 3/13/2021 $159,736 $13,311 1%
Rent Commencement: 3/14/2014 Year 8 3/14/2021 3/13/2022 $161,334 $13,444 1%
Term Expiration: 3/13/2033 Year 9 3/14/2022 3/13/2023 $162,947 $13,579 1%
Term Remaining: 14.3 Years Year 10 3/14/2023 3/13/2024 $164,577 $13,715 1%
Base Rent: $156,589 Year 11 3/14/2024 3/13/2025 $166,222 $13,852 1%
Options Remaining: Four (4), Five (5) year options Year 12 3/14/2025 3/13/2026 $167,885 $13,990 1%
Rent Increases: 1% Annually Year 13 3/14/2026 3/13/2027 $169,564 $14,130 1%
Year 14 3/14/2027 3/13/2028 $171,259 $14,272 1%
ROFR: 15 Days
Year 16 3/14/2028 3/13/2029 $172,972 $14,414 1%
Year 17 3/14/2029 3/13/2030 $174,701 $14,558 1%
Year 18 3/14/2030 3/13/2031 $176,448 $14,704 1%
Year 19 3/14/2031 3/13/2032 $178,213 $14,851 1%
Year 20 3/14/2032 3/13/2033 $179,995 $15,000 1%
Subject Property
Taco Bell | Monticello, AR 4
Representative Photos
Tenant Overview
Taco Bell of America, LLC serves as the primary franchising subsidiary of Taco Bell Corporation/YUM! Brands (NYSE: YUM, S&P: BBB), which is the #1
Mexican fast-food chain in the United States. Taco Bell serves more than 2 billion customers each year in over 6,600 restaurants in the U.S., 80 percent of
which are owned and operated by independent franchisees. The fast-food chain also has 350 international locations in more than 20 countries.
Yum! Brands, Inc., based in Louisville, Kentucky, has approximately 40,000 restaurants in more than 130 countries and territories. The Company’s restaurant
brands - KFC, Pizza Hut and Taco Bell - are the global leaders of the chicken, pizza and Mexican-style food categories. The Yum! system is comprised of
company-owned restaurants (about 20% of the system) and franchised or licensed restaurants and operations (about 80% of the system). Yum! Brands
does not own or operate its franchised or licensed units.
As of December 31, 2017, Yum! Brands, Inc. has total revenues of $5.88 billion, a net income of $1.34 billion, and a net worth of $2.27 billion.
K-MAC Enterprises is a leading operator of Taco Bell and KFC quick-service restaurants, with more than 251 Taco Bells, 17 KFC locations and 6 Golden
Corral. The company’s restaurants, franchised from YUM! Brands, are located mostly in Arkansas, as well as in Missouri, Oklahoma and Texas. It also owns
and operates a small number of buffet-style family steak houses franchised from Golden Corral.
Yum! Brands K-Mac Enterprises, Inc.
Total Revenue (FY2017): $5.8 Billion Total Revenue (FY2017): $436 Million
Total Assets (FY2017): $5.3 Billion Total Assets (FY2017): $47 Million
Company Type: Parent Company Type: Franchisee
Industry Type: Restaurants and Bars Industry Type: Restaurants and Bars
Number of Employees: 60,000+ Number of Employees: 3,000+
Headquarters: Louisville, KY Headquarters: Fort Smith, AR
Website: www.yum.com Website: www.kmaccorp.com
Taco Bell | Monticello, AR 5
N
HWY 425 S (14,737 VPD)
W GAINES AVE (14,587VPD)Demographics
435 US-425 North | Monticello, AR 71655 0 - 1 mi. 0 - 3 mi. 0 - 5 mi.
Population
2018 Population 3,084 10,035 12,828
2023 Population 3,080 10,191 13,059
2010-2018 Annual Rate -0.04% 0.48% 0.65%
2018-2023 Annual Rate -0.03% 0.31% 0.36%
Households
2018 Total Households 1,323 4,044 4,968 1 mile
2023 Total Households 1,322 4,104 5,057
2010-2018 Annual Rate -0.13% 0.36% 0.45%
2018-2023 Annual Rate -0.02% 0.29% 0.36% 3 miles
2018 Average Household Income $57,012 $55,771 $56,583
5 miles
2018 Median Household Income $40,345 $39,504 $40,232
Ngoing beyond
Adam Jennings
Associate Director
ajennings@stanjohnsonco.com
In Association With:
Albert Muller
AR Lic. #PB00075459
Stan Johnson Company
3340 Peachtree Road NE | Suite 650
Atlanta, GA 30326
P: +1 04.823.6360
stanjohnsonco.com
The information contained herein was obtained from sources believed reliable, however,
Stan Johnson Company makes no guaranties, warranties or representations as to the
completeness thereof. The presentation of this property for sale, rent or exchange is
submitted subject to errors, omissions, change of price or conditions, or withdrawal
without notices.Frequently Asked
agenCy RepResentation
QUESTIONS...
Arkansas
1. As a licensee, am I required to use this
Real Estate Commission
Who
Arkansas Real Estate Commission (AREC)
Agency Representation pamphlet and / or
disclosure form?
• No. The AREC Agency Representation
Do
pamphlet and disclosure form is a tool that Real 612 South Summit Street
Estate Agents may use to ensure their compliance
with Commission Regulations 8.1, 8.2 and 8.3. An
Little Rock, AR 72201-4740
Phone: 501.683.8010
Real
agent may certainly use alternative forms and / or
procedures to comply with these regulations. Fax: 501.683.8020
2. Can I distribute the brochure for
informational purposes only?
Email: arec@arkansas.gov
Web site: www.arec.arkansas.gov
estate
• Yes. If you have other methods of
disclosing your agency representation but would
like to distribute the Agency Representation agents
information displayed on the first two panels,
discard the disclosure portion and distribute the
Agency Representation information only.
Commission Staff RepResent?
3. What’s the best way to use the disclosure
form?
• When Option 1 of the disclosure form is Gary C. Isom
applicable, the person that you do not represent Executive Director
should sign as receiving the agency disclosure.
• When Option 2 of the disclosure form Andrea S. Alford
is applicable, all persons receiving the disclosure Deputy Executive Director
should each sign a form.
Reminder: Regulations 8.1 and 8.2 require you Deb Randolph aRKansas
to disclose to the other party who you represent Investigations Supervisor Real estate
in the transaction. These regulations allow you to
Commission
verbally disclose, and require that you confirm in
writing that you verbally disclosed, your agency
novembeR 2011
relationship before the party signs the real estate
contract or lease.means that the Buyer’s Agent may assist the Seller AGENCY REPRESENTATION
Agency who is not represented in selling the property, or
Representation deal with the Seller’s Agent, but the Buyer’s Agent’s
DISCLOSURE FORM
Information primary duty is to protect and promote the inter-
ests of the Buyer. As a Seller not represented by a
Who Do Real Estate Agents Represent Real Estate Agent, you should keep any information Real Estate Agent
in a Real Estate Transaction? that may place you at a disadvantage in negotia-
Arkansas law requires every Real Estate Agent to Real Estate Firm
tions confidential and undisclosed to the Buyer
clearly disclose to all parties in a real estate transac- or the Buyer’s Agent since that Buyer’s Agent has
Real Estate Transaction Address
tion which party(ies) he or she is representing. Real a duty to pass that information on to the Buyer.
Estate Agents typically represent Sellers but can Confidential information may include the Seller’s
also represent Buyers as well as both Buyers and reason or motivation for selling, the lowest price City, State, Zip Code
Sellers. the Seller will accept, negotiating strategies or tac-
The Real Estate Agent named above:
tics, or financial situation. (Please initial the appropriate response below.)
What Does It Mean to Represent a Seller? 1) ________ Does not represent me in this real estate
A Real Estate Agent who enters into an agreement What Does It Mean to Represent Both
transaction but represents only the
to sell property for an owner is known as the “List- Seller and Buyer? ________ Buyer or ________ Seller.
ing Agent” or “Agent for the Seller.” A Listing or A Real Estate Agent who enters into an agree-
Seller’s Agent represents the Seller in the transac- ment to represent the Seller and also enters into OR
tion. That means that the Listing or Seller’s Agent’s an agreement to represent the Buyer in the same
2) ________Represents all parties to this real estate
primary duty is to protect and promote the inter- transaction is known as a “Dual Agent.” A Dual transaction to which I previously consented through
ests of the Seller. As a Buyer not represented by a Agent most frequently occurs when a Real Es- a separate written agency agreement.
Real Estate Agent, you should keep any information tate Agent, or agents within the same real estate
that may place you at a disadvantage in negotia- firm, represent both Seller and Buyer in the same
tions confidential and undisclosed to the Seller or transaction. Both Seller and Buyer must have given Name of Party Receiving Agency Disclosure
the Seller’s Agent since that Seller’s Agent has a their written consent to such dual representation
I acknowledge that I am aware of and understand the
duty to pass that information on to the Seller. Con- prior to or at the time of execution of any Agency
disclosure information presented above.
fidential information may include the Buyer’s real Agreement, Listing Agreement or Real Estate Con-
estate needs or motivations, the highest price the tract. Both Seller and Buyer should be aware that
Signature of Party Receiving Agency Disclosure
a possible conflict of interest may exist in this type
Buyer is willing to offer, negotiating strategies or
of representation. A Dual Agent limits the duties
tactics, or financial situation. Date
described above in representing the Seller and
Buyer by written agreements found in the Agency
What Does It Mean to Represent a Buyer? Agreement, Listing Agreement or Real Estate Con-
THIS IS NOT A CONTRACT
A Real Estate Agent who enters into an agreement tract. For instance, when representing both Seller OR AGENCY AGREEMENT
to only represent the Buyer in a real estate trans- and Buyer the Dual Agent would not disclose to one
action is known as the “Buyer’s Agent.” A Buyer’s party confidential information obtained from the Agency
Agent represents the Buyer in the transaction. That other party. RepresentationYou can also read
