1706
A STREET
ANTIOCH, CA 94509
OFFERING MEMORANDUM
TACO BELL
TABLE OF CONTENTS
INVESTMENT OVERVIEW
4
TENANT OVERVIEW
7
PROPERTY PHOTOS
10
SITE PLAN
11
MARKET OVERVIEW
12
DEMOGRAPHICS17
Taco Bell
INVESTMENT OVERVIEW
Taco Bell
Investment Overview
INVESTMENT HIGHLIGHTS
• Brand New 20-Year Absolute Triple-Net NNN Lease
• 10% Increases in the Rent Every Five Years
• New 2015 Construction
• Largest Franchisee in CA (85+ Locations) & Top 10 in the
U.S.
• Average CPD (A Street): 17,500
• San Francisco Bay Area Location
• Over 161,000 Residents Within Five Miles
INVESTMENT OVERVIEW
Marcus and Millichap is pleased to offer for sale a brand new Taco Bell restaurant
leased to Golden Gate Bell, LLC (GGB) in Antioch, CA, a suburb of the San
Francisco Bay Area. Antioch is located in Contra Costa County and is home to over
100,000 residents. This lease is a true triple net lease with a base term of 20 years
and rent increases of 10% every five years. Rent commenced on December 5th,
2015 at an initial rate of $150,000 annually. There are 2 five year options and and
one option for four years and eleven months. The rent increases by 10% in each
of the options. The property is at the signalized intersection of West 18th Street
and A Street, on the northwest corner. The building is 1,822 square feet and sits
on approximately 18,700 square feet of land. Surrounding retailers include Grocery
Outlet, Starbucks, Wells Fargo, Rite Aid, Wendy’s, O’Reilly Auto Parts, Autozone,
Citibank and Bank ofAmerica.
The tenant is Golden Gate Bell, LLC (GGB). GGB is the operator of 85 Taco Bell
locations in the San Francisco Bay Area, the largest Taco Bell franchisee in California
& Top 10 in the United States. GGB management has been operating Taco Bell
restaurants for over 40 years.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the
current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
5
Pricing and Financial
Analysis
Taco Bell
OFFERING SUMMARY
Purchase Price
CAP Rate
Price/SF
GLA
Lot Size
Year Built
$3,333,333
4.50%
$
1,822 SF
18,700 SF
2015
VITAL DATA
Net Operating Income
Lease Type
Lease Term
Est. Rent Commencement
Lease Expiration
Lease Term Remaining
Increases
Options
$150.000
Triple-Net (NNN)
20 Years
12/13/2015
12/12/2035
20 Years
10% Increase Every 5 Years
Six, Five-Year Options
TENANT
Tenant Trade Name
Ownership
Lease Guarantor
Years in the Business
Headquarters
Norms
Fee Simple
Corporate
66
Irvine, CA
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the
current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
6
Taco Bell
TENANT OVERVIEW
Taco Bell
Tenant Overview
Taco Bell Corporation is a California-based fast service restaurant chain that specializes
in Mexican-style fast food. Taco Bell, with 2004 combined company and franchisee
sales reaching $5.7 billion dollars, holds the largest share of the Mexican-style restaurant
market in the United States. More than 35 million consumers visit a Taco Bell each week
and over 80 percent of its 6,500 locations are franchised. The company, with restaurants
in Canada, Guam, Aruba, Dominican Republic, Chile, Costa Rica, Guatemala, Puerto
Rico, Ecuador, Hawaii, Asia, and Europe, operates as a subsidiary of YUM! Brands Inc.,
the largest restaurant company in the world.
Golden Gate Bell, LLC (GGB) is the operator of 85 Taco Bell locations in the San Francisco
Bay Area. GGB is the largest Taco Bell® franchisee in California and one of the larger
Taco Bell franchises in the nation. The GGB executive team is led by Randy Rodrigues,
Paul Luce and Monica Schneider. Randy Rodrigues, the CEO of GGB, worked for Dolan
Foster Enterprises, LLC, the former owner of 72 of the restaurants now owned by GGB,
since1969. The core team’s experience with the brand and the QSR industry has received
acclaim and respect for their superb operational excellence. These restaurants have a
history of outperforming the Taco Bell system averages for operating performance within
the nationwide
TACO BELL
HEADQUARTERS
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the
current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
8
Taco Bell
Tenant Overview
Property Name
Taco Bell
Property Type
Triple-Net (NNN)
Total GLA
5,727
Tenant Trade Name
Norms
Ownership
Fee Simple
Tenant
Norms
Headquarters
Irvine, CA
Number of Locations
18
Website
www.tacobell.com
Rent Commencement Date
12/19/2014
Lease Expiration Date
12/19/2034
Term Remaining on Lease
Lease Type
Roof Structure
Original Lease Term
Net Operating Income
ARCHITECTURAL RENDERING
19 Years
Triple-Net (NNN)
Tenant Responsible
20 Years
$226,355
Increases
2% Annual Increases
Options
Six, Five-Year Options
ARCHITECTURAL RENDERING
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the
current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
9
Taco Bell
Property Photos
ARCHITECTURAL
RENDERINGS
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the
current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
10
Taco Bell
Site Plan
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the
current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
11
Taco Bell
MARKET OVERVIEW
ANTIOCH POPULATION
1 MI.
3 MI.
5 MI.
2000 Population
2010 Population
2014 Population
2019 Population
2000 Households
2010 Households
2019 Households
2014 Avg. Household Size
19,590
19,998
20,803
20,840
6,955
6,772
7,116
2.89
77,213
79,974
83,606
85,963
25,469
26,091
28,261
3.04
137,127
154,506
162,726
170,937
44,492
49,161
54,754
3.12
Taco Bell
Market Overview
KAISER PERMANENTE
Antioch is located in the East Bay region of the San
Francisco Bay Area along the San Joaquin-Sacramento
River Delta, it is a suburb of San Francisco and Oakland.
While many consider Antioch the gateway to the Delta,
the prevailing features of the area have attracted an
influx of new arrivals. Population has continued to rise
throughout Contra Costa County, while maintaining an
abundance of charm and
opportunity.
at the Central Valley city of Stockton, California. Antioch is
served by both the Antioch-Pittsburg Amtrak station, and
access to BART is available at the Pittsburg/Bay Point
Station in Pittsburg.
TOP ANTIOCH EMPLOYERS
#
EMPLOYEES
Kaiser Permanente
2,070
Antioch Unified School Distict
1,786
Highway 4 is the major east-west highway serving an
average of 112,000 vehicles a day. Contra Costa County,
as well as the City of Antioch, has responded with the
explosive population growth by taking sufficient measures
to alleviate potential congestion
problems.
Sutter Delta Medical Center
891
Contra Costa County Social
Services
427
Wal-Mart
318
City of Antioch
308
Antioch’s primary surface transportation link is via the
freeway State Route 4, both westward a few minutes’
drive to Interstate 80 and the road network of the Bay
Area, or alternatively eastward to connect with Interstate 5
Target
257
Antioch Auto Center
221
Macy’s
130
SUTTER DELTA
MEDICAL CENTER
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the
current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
15
Taco Bell
Market Overview
ANTIOCH MAIN ATTRACTIONS
AREA ATTRACTIONS
Antioch is located in the East Bay region of the San
Francisco Bay Area along the San Joanquin-Sacramento
River Delta, it is a suburb of San Francisco and Oakland.
Antioch currently has 4 Historic Places or Buildings on the
National Register of Historical Places. The Black Diamond
Mines, Roswell Butler Hard House, Riverview Union High
School Buidling and the Shannon-Williamson Ranch.
EL CAMPANIL THEATRE
ANTIOCH MARINA
PREWETT WATER PARK
REGIONAL PRESERVE
Besides the aforementioned, Antioch offers the following
attractions:
•El Campanil Theatre
•Antioch Historical Society Museum
•Lynn House Galley
•Rivertown Art Center
•ESPACE Academy
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the
current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
16
Taco Bell
DEMOGRAPHICS
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the
current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
Taco Bell
Demographic Report
POPULATION
1 - MILE
3 - MILES
5 - MILES
2000 Population
19,590
77,213
137,127
2010 Population
19,998
79,974
2014 Population
20,803
2019 Population
POPULATION
1 - MILE
3 - MILES
5 - MILES
$0 - $14,999
13.5%
11.3%
10.2%
154,506
$15,000 - $24,999
12.2%
9.1%
8.6%
83,606
162,726
$25,000 - $34,999
13.7%
8.7%
8.1%
20,840
85,963
170,937
$35,000 - $49,999
16.1%
12.3%
12.3%
HOUSEHOLD
1 - MILE
3 - MILES
5 - MILES
$50,000 - $74,999
19.6%
18.6%
18.2%
2000 Households
6,955
25,469
44,492
$75,000 - $99,999
11.6%
14.6%
14.7%
2010 Households
6,772
26,091
49,161
$100,000 - $124,000
6.3%
10.0%
11.5%
2014 Households
7,088
27,386
51,959
$125,000 - $149,000
2.1%
6.1%
6.4%
2019 Households
7,116
28,261
54,754
$150,000 - $199,999
2.2%
5.1%
5.7%
2014 Average Household Size
2.89
3.04
3.12
$250,000 - $249,999
0.7%
1.7%
1.7%
2014 Daytime Population
4,982
16,598
30,692
$250,000 +
2.0%
2.6%
2.8%
2000 Owner Occupued Housing Units
48.57%
65.07%
66.90%
2014 Median Household Income
$43,407
$61,001
$64,464
2000 Renter Occupied Housing Units
47.13%
32.17%
30.33%
2014 Per Capita Income
$21,385
$26,523
$26,999
2000 Vacant
4.30%
2.76%
2.78%
2014 Owner Occupied Housing Units
41.97%
58.94%
60.59%
2014 Renter Occupied Housing Units
58.03%
41.06%
39.41%
2014 Vacant
6.01%
3.96%
3.92%
2019 Owner Occupied Housing Units
41.42%
58.92%
60.34%
2019 Renter Occupied Housing Units
58.58%
41.08%
39.66%
2019 Vacant
6.29%
4.15%
4.09%
TRAFFIC COUNTS
A Street
East 18th Street
13,888 Vehicles per Day
6,416 Vehicles per Day
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the
current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
18
Taco Bell
Demographic Report
POPULATION
The current year per capita income in this area is $26,999, compare this
to the entire U.S. average, which is $28,599. The current year average
household income in this area is $84,238, compare this to the entire U.S.
average which is $74,533.
In 2014, the population in this area was 162,726. The population has
changed by 18.66% since 2000. It is estimated that the population in
this area will be 170,936 five years from now, which represents a change
of 5.04% from the current year. The current population is 48.66%
male and 51.33% female. The median age of the population in Costa
Mesa is 37.0, compare this to the entire U.S. average which is 33.8.
The population density in this selected geography 2,069.76 people per
square mile.
HOUSEHOLDS
There are currently 51,958 households in Costa Mesa. The number of
households has changed by 16.78% since 2000. It is estimated that the
number of households in this geography will be 54,753 five years from
now, which represents a change of 5.38% from the current year. The
average household size in this area is 3.11 persons.
INCOME
In 2014, the median household income for this area is $64,464, compare
this to the entire U.S. average which is currently $51,972. The median
household income has changed by 12.60% since 2000. It is estimated
that the median household income in this area will be $73,253 five years
from now, which represents a change of 13.63% from the current year.
RACE & ETHNICITY
The current year racial makeup in this area is as follows: 47.39% White,
16.62% Black, 0.83% Native American and 10.35% Asian/Pacific Islander.
Compare these to entire U.S. averages which are: 71.60% White, 12.70%
Black, 0.18% Native American and 5.02% Asian/Pacific Islander.
People of Hispanic origin are counted independently of race. People of
Hispanic origin make up 35.54% of the current year population in this area.
Compare this to the entire U.S. average of 17.13%.
HOUSING
In 2000, there were 30,613 owner occupied housing units in this area and
there were 13,878 renter occupied housing units. The median rent at the
time was $733.
EMPLOYMENT
In 2014, there are 30,691 employees in this area, this is also known as the
daytime population. The 2000 Census revealed that 58.41% of employees
are employed in white-collar occupations in this area, and 41.67% are
employed in blue-collar occupations. In 2014, unemployment in this
geography is 8.82%. In 2000, the average time traveled to work was 41.4
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the
current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
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designed by
APRIL PATRICE JOHNSON
20