C a p i t a l M a r ke t s | N e t L e a s e d P r o p e r t y G r o u p
TACO BELL SITE
: : Jacob H. Fedder
First Vice President
Lic. 01392067
+1 310 550 2643
[email protected]
510 EAST TULARE AVENUE :: TULARE, CA 93274
: : Joyce Brotman
Associate
Lic. 01855126
+1 310 550 2551
[email protected]
: : CBRE, Inc.
+1 310 550 2500
www.cbre.com/beverlyhills
TACO BELL SITE
510 EAST TULARE AVENUE :: TULARE, CA 93274
THE OFFERING
CBRE Net Lease Property Group is pleased to offer for sale this Taco Bell
in Tulare, California.
This is an absolute NNN Ground Lease with no landlord responsibilities
located in Tulare, California. It is located in Tulare County in the San
Joaquin Valley of California.
INVESTMENT HIGHLIGHTS
•
Long term stable cash flow – Operated by the largest Taco Bell
Franchisee in Southern California.
•
Absolute NNN Ground Lease – No Landlord Responsibilities
•
Proven Location – Outstanding Unit Level Sales.
•
Below market rent – secure investment with strong real estate
fundamentals.
•
Surrounded by traffic generators which include Tulare Union High
School, Wal-Mart, Target, Walgreens, Rite Aid, Domino’s Pizza,
Bank of America, Wells Fargo; in addition to such city services as
U.S. Post Office, Tulare Chamber of Commerce.
•
Located on major artery in Tulare with more than 15,000 CPD.
•
20 year lease commenced in February 2008.
•
Four (4) five year options.
© 2015 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future
performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
: : Jacob H. Fedder
First Vice President
Lic. 01392067
+1 310 550 2643
[email protected]
: : Joyce Brotman
Associate
Lic. 01855126
+1 310 550 2551
[email protected]
: : CBRE, Inc.
+1 310 550 2500
www.cbre.com/beverlyhills
TACO BELL SITE
510 EAST TULARE AVENUE :: TULARE, CA 93274
DEAL SUMMARY
ADDRESS
510 East Tulare Avenue
Tulare, California 93274
C OU NT Y
Tulare County, California
BUILDING SIZE :
±3,200 Sq. Ft.
LAND AREA :
±15,000 Sq. Ft,
PRICE :
$2,351,000
CAP RATE :
5%
NOI:
$117,573*
ASSET TYPE :
Ground Lease
* 2018 NOI with Seller to credit Buyer difference in NOI at close of escrow
LEASE SUMMARY
LEASE EXPIRATION:
2/2028
L EAS E O PT I O NS
4 five year options
ESCALATIONS
8% increases every 5 years
ANNUAL BASE RENT:
$117,573
LANDLORD
None - Absolute NNN
RESPONSIBILITIES :
© 2015 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future
performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
: : Jacob H. Fedder
First Vice President
Lic. 01392067
+1 310 550 2643
[email protected]
: : Joyce Brotman
Associate
Lic. 01855126
+1 310 550 2551
[email protected]
: : CBRE, Inc.
+1 310 550 2500
www.cbre.com/beverlyhills
TACO BELL SITE
510 EAST TULARE AVENUE :: TULARE, CA 93274
THE TENANT
Taco Bell is the world’s leading Mexican-style quick service restaurant chain, serving over 2 billion consumers each year in more
than 5,800 restaurants in the United States.
Cotti Foods Corporation was founded in 1996 when father and son combined efforts into one entity. Since 1996 Cotti Foods has
grown into the largest Taco Bell Franchisee in Southern California; second largest in the state. With 60 units throughout the State,
Cotti Foods has expanded its reach into San Diego, Orange, Los Angeles, San Bernardino, Ventura, Santa Barbara, Tulare and San
Luis Obispo Counties.
THE FRANCHISOR
Yum! Brands, Inc. (NYSE: YUM), based in Louisville, Kentucky, is the world’s largest fast food restaurant company in terms of system
restaurants with more than 40,000 restaurants in more than 125 countries and territories. It is a Fortune 500 corporation which operates the licensed brands Taco Bell, KFC, Pizza Hut and WingStreet worldwide. Prior to 2011, Yum! Develops, operates, franchises
and licenses this worldwide system of restaurants that prepares packages and sells a menu of food items. In 2013, Yum!’s global
sales totaled more than $13 b.
© 2015 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future
performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
: : Jacob H. Fedder
First Vice President
Lic. 01392067
+1 310 550 2643
[email protected]
: : Joyce Brotman
Associate
Lic. 01855126
+1 310 550 2551
[email protected]
: : CBRE, Inc.
+1 310 550 2500
www.cbre.com/beverlyhills
TACO BELL SITE
510 EAST TULARE AVENUE :: TULARE, CA 93274
LOCATION OVERVIEW – TULARE, CALIFORNIA
The subject property is located on Tulare Avenue in the midst of an active retail and civic corridor
in which Walmart, Target, Walgreen’s, Jack in the Box, Domino’s Pizza, Bank of America, Wells
Fargo, as well as the U.S. Post Office, Chamber of Commerce, and the local high school, Tulare
Union High School are located.
Tulare, founded in 1872 by the Southern Pacific Railroad, is in Tulare County, California and
is located on California’s central corridor Highway 99. Interstate 5 is 40 minutes west and is
California’s longest freeway running nearly 1,000 miles from north to south. The City of Tulare
is in the San Joaquin Valley and is located directly between Fresno and Bakersfield in the heart of
the Central Valley.
The city flourished as the headquarters of the Southern Pacific Railroad at its founding. When
the Southern Pacific Railroad moved its headquarters to Bakersfield, the city re-established itself
as the agriculture center for California and the backbone of Tulare’s economy continues to be its
rich agricultural and dairy industry due to its location in the geographically diverse region.
Tulare is part of Tulare County which has a growing population of more than 450,000 people
and is home to many scenic wonders, such as Sequoia and Kings Canyon National Parks which
offer year-round recreational activities. Local points of interest include a dozen historic murals
scattered throughout the city depicting historical scenes relevant to Tulare and the state. Opportunities for all-season outdoor recreation include hiking, water and snow skiing, fishing, white
water rafting and boating. The City of Tulare owns and operates their own municipal airport,
Mefford Field, which is currently the base for sixty private planes.
Tulare is home to the internationally known World Ag Expo, which is held annually each winter
in February at the International Agri-Center complex. The three day event is the largest annual
agricultural exposition in the world with 1,600 exhibitors showcasing the best in current agricultural technology and products. It attracts guests and representatives from all over the globe and
attracts more than 100,000 people annually.
The Tulare City School District operates 10 elementary schools, five middle schools and one K-8
school. There are three high schools in the area as well as two local area community colleges.
© 2015 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future
performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
: : Jacob H. Fedder
First Vice President
Lic. 01392067
+1 310 550 2643
[email protected]
: : Joyce Brotman
Associate
Lic. 01855126
+1 310 550 2551
[email protected]
: : CBRE, Inc.
+1 310 550 2500
www.cbre.com/beverlyhills
TACO BELL SITE
510 EAST TULARE AVENUE :: TULARE, CA 93274
DEMOGRAPHICS & TRAFFIC COUNTS
1-MILE
3-MILE
5-MILE
PO PU L AT I O N:
15,392
63,957
68,649
AVERAGE HH INCOME :
$30,133
$40,227
$40,749
POPULATION GROWTH:
1.89%
4.83%
5.05%
TRAFFIC COUNTS :
15,100 CARS PER DAY
© 2015 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future
performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
: : Jacob H. Fedder
First Vice President
Lic. 01392067
+1 310 550 2643
[email protected]
: : Joyce Brotman
Associate
Lic. 01855126
+1 310 550 2551
[email protected]
: : CBRE, Inc.
+1 310 550 2500
www.cbre.com/beverlyhills
TACO BELL SITE
510 EAST TULARE AVENUE :: TULARE, CA 93274
AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT
CBRE, Inc. operates within a global family of companies with many subsidiaries and/
or related entities (each an “Affiliate”) engaging in a broad range of commercial real
estate businesses including, but not limited to, brokerage services, property and facilities
management, valuation, investment fund management and development. At times
different Affiliates may represent various clients with competing interests in the same
transaction. For example, this Memorandum may be received by our Affiliates, including
CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express
an interest in the property described in this Memorandum (the “Property”) may submit
an offer to purchase the Property and may be the successful bidder for the Property. You
hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved
Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the
sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best
interest of the client(s) it represents in the transaction described in this Memorandum and
will not act in concert with or otherwise conduct its business in a way that benefits any
Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct
its business in a manner consistent with the law and any fiduciary duties owed to the
client(s) it represents in the transaction described in this Memorandum.
This is a confidential Memorandum intended solely for your limited use and benefit
in determining whether you desire to express further interest in the acquisition of the
Property.
This Memorandum contains selected information pertaining to the Property and does
not purport to be a representation of the state of affairs of the Property or the owner of
the Property (the “Owner”), to be all-inclusive or to contain all or part of the information
which prospective investors may require to evaluate a purchase of real property. All
financial projections and information are provided for general reference purposes only
and are based on assumptions relating to the general economy, market conditions,
competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore,
all projections, assumptions and other information provided and made herein are
subject to material variation. All references to acreages, square footages, and other
measurements are approximations. Additional information and an opportunity to inspect
the Property will be made available to interested and qualified prospective purchasers.
In this Memorandum, certain documents, including leases and other materials, are
described in summary form. These summaries do not purport to be complete nor
necessarily accurate descriptions of the full agreements referenced. Interested parties
are expected to review all such summaries and other documents of whatever nature
independently and not rely on the contents of this Memorandum in any manner.
Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates
or representatives make any representation or warranty, expressed or implied, as to
the accuracy or completeness of this Memorandum or any of its contents, and no legal
commitment or obligation shall arise by reason of your receipt of this Memorandum or
use of its contents; and you are to rely solely on your investigations and inspections of the
Property in evaluating a possible purchase of the real property.
The Owner expressly reserved the right, at its sole discretion, to reject any or all
expressions of interest or offers to purchase the Property, and/or to terminate discussions
with any entity at any time with or without notice which may arise as a result of review of
this Memorandum. The Owner shall have no legal commitment or obligation to any entity
reviewing this Memorandum or making an offer to purchase the Property unless and until
written agreement(s) for the purchase of the Property have been fully executed, delivered
and approved by the Owner and any conditions to the Owner’s obligations therein have
been satisfied or waived.
By receipt of this Memorandum, you agree that this Memorandum and its contents are of
a confident nature, that you will hold and treat it in the strictest confidence and that you
will not disclose this Memorandum or any of its contents to any other entity without the
prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use
this Memorandum or any of its contents in any manner detrimental to the interest of the
Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in purchasing the
Property, kindly return this Memorandum to CBRE, Inc.
© 2015 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future
performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
: : Jacob H. Fedder
First Vice President
Lic. 01392067
+1 310 550 2643
[email protected]
: : Joyce Brotman
Associate
Lic. 01855126
+1 310 550 2551
[email protected]
: : CBRE, Inc.
+1 310 550 2500
www.cbre.com/beverlyhills