Taco Bell Ground Lease - Atchison, KS - Marketing Package - LoopNet
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Taco Bell Ground Lease Atchison, KS James Capital Advisors Taco Bell Ground Lease Marketing Package 937 Main St, Atchison, KS 66002
PROPERTY INFO FINANCIAL SUMMARY
Tenant Taco Bell Purchase Price $884,211
Street Address 937 Main Street Cap Rate 4.75%
City Atchison Net Operating Income $42,000
State KS Land Price / SF $32.74
Zip 66002 Land Rent / SF $1.56
APN 3.09E+16
GLA (Land) 27,007 SF Listing Agent Mike James
Lot Size 0.62 AC Phone Number (424) 325-2606
Year Built 2018 Email SUBMIT OFFER
INVESTMENT HIGHLIGHTS
Long-Term Ground Lease Lease Backed by Experienced 37-Unit Franchisee
This property operates on a Ground Lease structure, This lease is backed by KC Bell, Inc., a 37-unit operator
which calls for no landlord maintenance or expenses. with over 20 years of experience.
Exceptional Rent to Sales Ratio Strong Tenant Commitment
This property offers the benefit of a rent to sales ratio The lease features an initial term of 25 Years with an
below 4%, which provides the landlord with a highly additional four 5-Year options to extend the lease until
sustainable future cash flow. 12/31/2062, indicating strong commitment to the site.
Ample Rent Growth - 10% Increases Every Five Years Globally Recognized Brand
There are 10% rental increases built into the lease Taco Bell is a globally recognized brand with a total
every five years, providing the landlord with positive sales growth of 7% in FY’17, a trend which is expected to
rent growth and a hedge against ordinary inflation. continue due to the expansion of stores internationally.
James Capital Advisors Taco Bell Ground Lease
The Offering 937 Main St, Atchison, KS 66002
James Capital Advisors Taco Bell Ground Lease Property Image 937 Main St, Atchison, KS 66002
LEASE SUMMARY
Lease Type Triple-Net (NNN) Real Estate Taxes Tenant Responsible
Type of Ownership Ground Lease Insurance Tenant Responsible
Original Lease Term 25 Years Repairs & Maintenance Tenant Responsible
Commencement Date 01/01/2018
Lease Expiration 12/31/2042 Lease Guarantor Franchisee
Term Remaining 23+ Years Company Name Private
Increases 10% Every 5 Years Ownership KC Bell, Inc
Options Four 5-Year Years in Business 21
ROFR / ROFO N/A Number of Locations 37
INVESTMENT HIGHLIGHTS
Designated Qualified Opportunity Zone Kansas City MSA
This property is located in an Opportunity Zone as The nearby thriving Kansas City MSA had YOY job
designated by the 2017 Tax Cuts and Jobs Act, and growth of 1.8% in Q1 FY’19. This trend is expected to
may provide tax benefits to the owner. Please consult continue as the tax and financial incentives program
your tax advisor for details. continues to attract businesses to the area.
Brand New 2017 Construction Drive-Thru Location
The site was completely rebuilt in 2017 for the This location features a dedicated drive-thru, which
scheduled store opening in Q1 2018. Over 1,800 SF of adds a meaningful level of convenience to the
the service area was reconstructed and ample parking customer experience and drives sales.
was added for customer convenience.
Excellent Visibility Along Main Street City of Atchison - Growing Fiscal Budget
The subject property is situated in the intersection Atchinson’s Annual Budget saw a 4% year-over-year
of Main and 10th Street, with traffic counts exceeding increase in FY’18, indicating increased growth and
9,000 vehicles per day. investments in the area. This includes nearly $7M in
planned capital projects.
James Capital Advisors Taco Bell Ground Lease
Lease Summary 937 Main St, Atchison, KS 66002
James Capital Advisors Taco Bell Ground Lease Property Image 937 Main St, Atchison, KS 66002
Rent Schedule PERIOD ANNUAL RENT MONTHLY RENT INCREASE RENT / SF CAP RATE
01/01/2018 - 12/31/2022 Base Term $42,000.00 $3,500.00 - $1.92 4.75%
01/01/2023 - 12/31/2027 Base Term $46,200.00 $3,850.00 10.00% $2.12 5.23%
01/01/2028 - 12/31/2032 Base Term $50,820.00 $4,235.00 10.00% $2.33 5.75%
01/01/2033 - 12/31/2037 Base Term $55,902.00 $4,658.50 10.00% $2.56 6.32%
01/01/2038 - 12/31/2042 Base Term $61,492.00 $5,124.33 10.00% $2.82 6.95%
01/01/2043 - 12/31/2047 Option 1 $67,641.48 $5,636.79 10.00% $3.10 7.65%
01/01/2048 - 12/31/2052 Option 2 $74,405.64 $6,200.47 10.00% $3.41 8.41%
01/01/2053 - 12/31/2057 Option 3 $81,846.24 $6,820.52 10.00% $3.75 9.26%
01/01/2058 - 12/31/2062 Option 4 $90,030.84 $7,502.57 10.00% $4.12 10.18%
James Capital Advisors Taco Bell Ground Lease
Rent Schedule 937 Main St, Atchison, KS 66002
ABOUT THE BRAND
Brand Overview
Taco Bell serves made-to-order and customizable tacos and burritos, among other choices, and is the first QSR
restaurant to offer American Vegetarian Association (AVA)-certified menu items. Taco Bell, and its more than 350
franchise organizations, proudly serves over 42 million customers each week through more than 7,000 restaurants
across the globe, as well as through its mobile, desktop and delivery ordering services.
As the leading Mexican-inspired quick service restaurant brand, Taco Bell plans to have 9,000 restaurants by the year
2023, which the company anticipates will add an estimated 100,000 jobs nationwide.
Under the parent company, Yum! Brands Inc., Taco Bell is part of a family of fast food powerhouses which include both
KFC and Pizza Hut. Yum! Brands Inc., a Fortune 500 company, had revenues exceeding $6 billion in 2016.
Locations Countries Yearly Customers
7,000+ 27 2 Billion
RECENT NEWS
February 2019 August 2018
To ensure faster delivery, Taco Bell has integrated its Taco Bell announced plans to expand the brand’s
point-of-sale system directly into the Grubhub app and presence in the Northeast by opening three new Taco
began offering free nationwide delivery for a limited Bell Cantina locations in Manhattan. Taco Bell opened
time. sixteen Cantinas across the country in 2018.
January 2019 March 2018
The company announced its efforts to test a dedicated Nacho Fries became the company’s most successful
vegetarian menu aimed at appealing to consumers’ product launch in the chain’s history, selling 53 million
dietary needs. orders in five weeks.
January 2019 November 2018
Taco Bell continued its expansion into international The Taco Bell Foundation more than Doubles the Live
marketing by opening its first restaurant in Thailand. Más Scholarship Commitment To $21 Million By 2021,
The company now operates in nearly 30 markets supporting students nationally.
around the world.
James Capital Advisors Taco Bell Ground Lease
About the Brand 937 Main St, Atchison, KS 66002
LOCATION OVERVIEW
Atchison City Kansas City Metropolitan Area
Atchison, located in Atchison County, Kansas, is about Kansas City has seen a steady growth rate in the past
35 minutes northwest of the Kansas City Metropolitan year and that is expected to continue. A $10B VA
Area and 45 minutes northeast of the state’s capital contract with health giant Cerner is projected to further
city, Topeka. boost the Kansas City economy.
Vibrant College Town Plans to Expand Kansas City International Airport
Founded in 1858 as the second city in the state, The Kansas City International Airport, located less than
Atchison has a current population of approximately 25 minutes from the subject property, received voter
11,000 and is home to Benedictine College and approval for expansion in November 2017, further
Highland Community College. enhancing future job growth.
Popular Tourist Destination Tremendous Industrial Growth
With over 20 sites on the National Register of Historic In 2017, Kansas City was ranked No. 1 in industrial
Places, Atchison is one of the most history-rich cities transaction volume based on year-over-year growth
in Kansas and attracts tourists year-round through rate, according to Integra Realty Resources Viewpoint’s
various festivals and events. 2018 publication.
James Capital Advisors Taco Bell Ground Lease
Location Overview 937 Main St, Atchison, KS 66002
James Capital Advisors Taco Bell Ground Lease Retail Aerial 937 Main St, Atchison, KS 66002
James Capital Advisors Taco Bell Ground Lease Retail Aerial 937 Main St, Atchison, KS 66002
James Capital Advisors Taco Bell Ground Lease Site Plan 937 Main St, Atchison, KS 66002
DEMOGRAPHICS
POPULATION 1 MILE 3 MILE 5 MILE 10 MILE
2023 Projection 6,921 11,448 12,361 15,186
2018 Estimate 7,039 11,663 12,585 15,414
2010 Census 7,281 12,169 13,098 15,914
Kansas City Metropolitan Area
Kansas City has seen a steady growth rate in the past year and that is expected to continue. A $10B VA contract with
health giant Cerner is projected to further boost the Kansas City economy.
HOUSEHOLDS 1 MILE 3 MILE 5 MILE 10 MILE
2023 Projection 2,649 4,089 4,439 5,532
2018 Estimate 2,698 4,174 4,529 5,624
2010 Census 2,797 4,378 4,736 5,827
HOUSEHOLDS
Avg. HH Income $49,905 $52,331 $53,606 $57,097
Med. HH Income $41,389 $42,516 $43,343 $45,782
James Capital Advisors Taco Bell Ground Lease
Demographics 937 Main St, Atchison, KS 66002DISCLAIMER The information contained in this Marketing Brochure has been obtained from sources believed to be reliable. However, James Capital Advisors, Inc. & Brian Brockman (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants. A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property. CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker. RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker. from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker. James Capital Advisors Taco Bell Ground Lease Disclaimer 937 Main St, Atchison, KS 66002
Contact Information
Reed Melillo Mike James Brian Brockman
Senior Director, Net Lease Managing Partner Bang Realty - Kansas, Inc
(424) 325-2606 (424) 325-2601
Reed@JamesCapitalAdvisors.com Mike@JamesCapitalAdvisors.com
CA RE Lic. 01984199 CA RE Lic. 01869890 KS RE Lic. 239819
SUBMIT OFFER
James Capital Advisors Taco Bell Ground Lease
Contact Information 937 Main St, Atchison, KS 66002You can also read
