Taco Bell - Exclusive Net Lease Offering OFFERING MEMORANDUM - NNN Properties
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Taco Bell
2300 Deer Creek Commerce Lane
Davenport, FL 33837
OFFERING MEMORANDUM
Exclusive Net Lease Offering
INVESTMENT HIGHLIGHTS
L O C AT I O N LEASE TENANT
Accommodations Nearby Include: Recent Construction; Sale Leaseback Taco Bell Operates in 27 Countries and
Holiday Inn Express, Comfort Inn & Territories Throughout the World
Long-Term, 20-Year Absolute Triple
Suites, and Days Inn
Net (NNN) Lease 7% Worldwide System Sales Growth |
Compelling Location Fundamentals | 4% Same-Store Sale Growth Across
Lease Commencement Upon Close of
Orlando International Airport 30 Miles Taco Bell in 2017
Escrow
From Property | Over 44,600,000
As of Fiscal Year 2017, There Were
Passengers in 2017 Strong Hedge Against Inflation
6,849 Taco Bell Units, Primarily in the
Freestanding Property | Excellent Ten Percent (10%) Rental Increases U.S., 90 Percent of Which are
Frontage Along Deer Creek Every Five (5) Years Franchised
Commerce Lane | Average Traffic
Four (4), Five (5)-Year Tenant Renewal System Sales Exceeded $10.1 Billion in
Count of 41,500 Vehicles Per Day
Options Fiscal Year 2017
Surrounding Retailers Include: Target,
Staples, Wendy’s, Waffle House, and
Denny’s, Among Others
Five-Mile Population to Expand by
17% Over Next Five Years
Representative Photo
2300 Deer Creek Commerce Lane | Davenport, FL 33837
Financial Analysis
PRICE $2,666,522 CAP 5.00% RENT $133,326
PROPERTY DESCRIPTION RENT SCHEDULE
Property Taco Bell Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%)
Property Address 2300 Deer Creek Commerce Lane Years 1 - 5 $133,326 $11,111 -
City, State, ZIP Davenport, Florida, 33837
Years 6 - 10 $139,992 $11,666 5%
Year Built 2014
Years 11 - 15 $146,992 $12,249 5%
Building Size 2,465
Years 16 - 20 $154,342 $12,862 5%
Lot Size +/- 1.06 Acres
Option 1: Years 21 – 25 $162,059 $13,505 5%
Type of Ownership Fee Simple
Option 2: Years 26 – 30 $170,162 $14,180 5%
THE OFFERING
Option 3: Years 31 – 35 $178,670 $14,889 5%
Initial Annual Rent $133,326
CAP Rate 5.00% Option 4: Years 36 – 40 $187,603 $15,634 5%
Purchase Price $2,666,522
LEASE SUMMARY
Property Type Net Leased Restaurant
JEM Restaurant Group of Florida
Tenant
(21 – Units)
Original Lease Term 20 Years
Lease Commencement Close of Escrow
Lease Expiration 20 Years from Close of Escrow
Lease Term Remaining 20 Years
Lease Type Triple-Net (NNN)
Roof & Structure Tenant Responsible
Rental Increases 10% Every 5 Years
Options to Renew Four, Five Year Options
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Taco Bell
Tenant Overview: Taco Bell
General Information
Address Irvine, CA
Website https://www.tacobell.com/
Concentration All 50 States – 27 Countries
About Taco Bell
Taco Bell Corp., a subsidiary of Yum! Brands, Inc. (NYSE: YUM), is the
nation's leading Mexican-inspired quick service restaurant brand. From About JEM Restaurant Group of Florida
breakfast to late night, Taco Bell serves made-to-order and customizable JEM Restaurant Group of Florida is an entity comprised of 21 Taco Bell
tacos and burritos, among other craveable choices, and is the first QSR locations in the Tampa, Florida designated market area. JEM Restaurant
restaurant to offer American Vegetarian Association (AVA)-certified menu Group of Florida is owned and operated by John McGrath, who is the
items. Taco Bell and its more than 350 franchise organizations proudly President and CEO of related entities that own and operate 14 Taco Bell
serve over 42 million customers each week through nearly 6,500 restaurants and 22 Pizza Hut restaurants in the Charleston, South
restaurants across the nation, as well as through its mobile, desktop and Carolina designated market area. Mr. McGrath is also a Co-Managing
delivery ordering services. Member of Southeastern Pizza Group, LLC; Southeastern Pizza Group
Two, LLC; and Southeastern Pizza Group Three, LLC, which together
Taco Bell’s mobile app which, has been downloaded over 4.9 Million times, own and operate 70 Pizza Hut restaurants in three states.
makes it easy to place a custom order and pay before the customer arrives.
Some locations are also testing touchscreen-ordering kiosks. Taco Bell
plans to have 8,000 restaurants in the US by the year 2023. Overseas,
Taco Bell has over 400 restaurants excluding the Yum! China Division, with
plans to add 2,000 more restaurants internationally within the next decade.
In 2017, Taco Bell’s same-store sales increased 4% which was better than
the overall quick-service sector. Taco Bell typically scores well in consumer
surveys on its ability to innovate and give customers value.
Yum! Brands, Inc., based in Louisville, Kentucky, has over 45,000
restaurants in more than 135 countries and territories and is one of the Aon
Hewitt Top Companies for Leaders in North America. In 2017, Yum! Brands
was named to the Dow Jones Sustainability North America Index and
ranked among the top 100 Best Corporate Citizens by Corporate
Responsibility Magazine.
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Taco Bell
Location Overview
SURROUNDING RETAIL & POINTS OF INTEREST
The subject property is strategically located in a dense retail and residential
corridor. Major national retailers in the immediate area include Target, Burger King,
Wendy’s, Chick-Fil-A, Perkins, Best Buy, and JC Penney, among others. ADTC: 120,627
Accommodations in the immediate area include Holiday Inn Express, Budget Inn,
Comfort Inn & Suites, and Days Inn. The Heart of Florida Regional Medical Center
is equipped with 194 beds and is located approximately three miles from this Taco
Bell. The academic institutions within a five mile radius have a combined total
enrollment exceeding 3,200 students.
TRAFFIC COUNTS & DEMOGRAPHICS
There are approximately 11,483 individuals residing within a three-mile radius of
the property and more than 29,900 individuals within a five-mile radius. The
subject property is located on Deer Creek Commerce Lane, which experiences an
average daily traffic volume of 41,500 vehicles. Deer Creek Commerce Lane
intersects with Interstate-4, which experiences an average daily traffic count of
120,627 vehicles. The population within five miles of the property is expected to
increased by over 17% over the next five years. ADTC: 41,500
MARKET OVERVIEW
Davenport is approximately 34 miles south of Orlando, Florida. Orlando is a major
industrial and hi-tech center. The metro area has a $13.4 billion technology
industry employing 53,000 people and is a nationally recognized cluster of
innovation in digital media, agricultural technology, aviation, aerospace, and
software design. More than 150 international companies, representing
approximately 20 countries, have facilities in Metro Orlando. Orlando has the 7th-
largest research park in the country, Central Florida Research Park, with over
1,025 acres. It is home to over 120 companies, employs more than 8,500 people,
and is the hub of the nation's military simulation and training programs. Near the
end of each year, the Orange County Convention Center hosts the world's largest
modeling and simulation conference. Metro Orlando is home to the simulation
procurement commands for the U.S. Army, Navy, Air Force, Marines and Coast
Guard. Nicknamed the 'Theme Park Capital of the World’, Orlando is one of the
leading tourism destinations in the world. The Orlando area is home to Walt Disney
World Resort, Universal Orlando Resort, SeaWorld Orlando, and the Fun Spot
America Theme Parks. Over 59 million visitors came to the Orlando region in
2016, spending over $33 billion.
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Taco Bell
Surrounding Area
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Taco Bell SUBJECT PROPERTY
Property Photos
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Taco Bell
Property Photos
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Taco Bell
Surrounding Area Photos
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Taco Bell
State Map
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Taco Bell SUBJECT PROPERTYRegional Map
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Taco Bell SUBJECT PROPERTY 11Local Map
5 Miles
3 Miles
1 Mile
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Taco Bell SUBJECT PROPERTY 12Demographics
Davenport, FL Demographics
1 Mile 3 Miles 5 Miles
POPULATION
2022 Projection 3,642 13,938 35,008
2017 Estimate 3,008 11,483 29,925
2010 Census 2,743 10,450 25,986
2000 Census 1,662 6,033 14,585
INCOME
Average $57,151 $59,208 $62,195
Median $48,580 $49,941 $49,986
Per Capita $26,827 $21,766 $22,769
HOUSEHOLDS
2022 Projection 1,714 5,125 12,961
2017 Estimate 1,412 4,184 10,907
2010 Census 1,309 3,844 9,551
2000 Census 909 2,369 5,680
HOUSING
2017 $142,995 $141,382 $142,849
Major Employers EMPLOYMENT
Employer # of Employees 2017 Daytime
HMA 597 1,337 6,436 21,140
Population
Reunion 500 2017 Unemployment 3.76% 3.20% 3.84%
Omni Hotels 394 2017 Median Time
Target 177 30 29 29
Traveled
Publix 00770 150
Publix 01167 150 RACE & ETHNICITY
Publix 01195 150 White 74.59% 75.42% 75.62%
Chandler Signs LP LLP 114 Native American 0.11% 0.10% 0.14%
Kansas City, MO
Best Buy
Jarrett-Gordon Ford Inc
100
100
African American
Asian/Pacific Islander
10.53%
2.12%
9.25%
2.27%
9.01%
2.51%
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Taco BellConfidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective locations is an important consideration, it is not a diligence investigation. Marcus & Millichap has not made
purchasers of Net Leased property as follows: guarantee of future success. Similarly, the lease rate for any investigation, and makes no warranty or
some properties, including newly-constructed facilities or representation, with respect to the income or expenses for
The information contained in this Marketing Brochure has newly-acquired locations, may be set based on a tenant’s the subject property, the future projected financial
been obtained from sources we believe to be reliable. projected sales with little or no record of actual performance of the property, the size and square footage
However, Marcus & Millichap has not and will not verify performance, or comparable rents for the area. Returns are of the property and improvements, the presence or
any of this information, nor has Marcus & Millichap not guaranteed; the tenant and any guarantors may fail to absence of contaminating substances, PCB’s or asbestos,
conducted any investigation regarding these matters. pay the lease rent or property taxes, or may fail to comply the compliance with State and Federal regulations, the
Marcus & Millichap makes no guarantee, warranty or with other material terms of the lease; cash flow may be physical condition of the improvements thereon, or the
representation whatsoever about the accuracy or interrupted in part or in whole due to market, economic, financial condition or business prospects of any tenant, or
completeness of any information provided. environmental or other conditions. Regardless of tenant any tenant’s plans or intentions to continue its occupancy
history and lease guarantees, Buyer is responsible for of the subject property. The information contained in this
As the Buyer of a net leased property, it is the Buyer’s conducting his/her own investigation of all matters Marketing Brochure has been obtained from sources we
responsibility to independently confirm the accuracy and affecting the intrinsic value of the property and the value of believe to be reliable; however, Marcus & Millichap has not
completeness of all material information before completing any long-term lease, including the likelihood of locating a verified, and will not verify, any of the information
any purchase. This Marketing Brochure is not a substitute replacement tenant if the current tenant should default or contained herein, nor has Marcus & Millichap conducted
for your thorough due diligence investigation of this abandon the property, and the lease terms that Buyer may any investigation regarding these matters and makes no
investment opportunity. Marcus & Millichap expressly be able to negotiate with a potential replacement tenant warranty or representation whatsoever regarding the
denies any obligation to conduct a due diligence considering the location of the property, and Buyer’s legal accuracy or completeness of the information provided. All
examination of this Property for Buyer. ability to make alternate use of the property. potential buyers must take appropriate measures to verify
all of the information set forth herein.
Any projections, opinions, assumptions or estimates used in By accepting this Marketing Brochure you agree to release
this Marketing Brochure are for example only and do not Marcus & Millichap Real Estate Investment Services and NON-ENDORSEMENT NOTICE
represent the current or future performance of this hold it harmless from any kind of claim, cost, expense, or
property. The value of a net leased property to you liability arising out of your investigation and/or purchase of Marcus & Millichap Real Estate Investment Services, Inc.
depends on factors that should be evaluated by you and this net leased property. (“M&M”) is not affiliated with, sponsored by, or endorsed
your tax, financial and legal advisors. by any commercial tenant or lessee identified in this
CONFIDENTIALITY AND DISCLAIMER marketing package. The presence of any corporation’s logo
Buyer and Buyer’s tax, financial, legal, and construction or name is not intended to indicate or imply affiliation with,
advisors should conduct a careful, independent The information contained in the following Marketing or sponsorship or endorsement by, said corporation of
investigation of any net leased property to determine to Brochure is proprietary and strictly confidential. It is M&M, its affiliates or subsidiaries, or any agent, product,
your satisfaction with the suitability of the property for intended to be reviewed only by the party receiving it from service, or commercial listing of M&M, and is solely
your needs. Marcus & Millichap and should not be made available to included for the purpose of providing tenant lessee
any other person or entity without the written consent of information about this listing to prospective customers.
Like all real estate investments, this investment carries Marcus & Millichap. This Marketing Brochure has been
significant risks. Buyer and Buyer’s legal and financial prepared to provide summary, unverified information to ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
advisors must request and carefully review all legal and prospective purchasers, and to establish only a preliminary PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR
financial documents related to the property and tenant. level of interest in the subject property. The information MORE DETAILS.
While the tenant’s past performance at this or other contained herein is not a substitute for a thorough dueEXCLUSIVE NET LEASE OFFERING
FL BROKER OF RECORD:
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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