Investment Property Offering
TACO BELL/KFC
$1,724,415
4431 S. Collins Street, Arlington, TX 76018
Presented By:
Kase Abusharkh
DRE#01311211
252 Abigail Circle
Danville, CA 94506
(925)348-1844
[email protected]
Offering Highlights
Long Term NNN Lease
Zero Landlord Responsibilities
Annual Increases in Rent
2nd Largest Operator in System (200+
Units)
12/01/2011
All Sperry Van Ness® Offices Independently Owned and Operated.
Table of Contents
1
Financial Analysis
Executive Summary
Investment Information
Rent Roll Summary
2
Additional Information
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
1 . Financial Analysis
All Sperry Van Ness® Offices Independently Owned and Operated.
Executive Summary
TACO BELL/KFC
4431 S. Collins Street
Arlington, TX 76018
List Price
Price per S.F.
CAP
$1,724,415
$630.27
6.75 %
Building S.F.
Percent Occupied
Land Acres
2,736
100.00 %
1.15
Absolute NNN Leased Taco Bell/KFC
Cross Street
Market
E. Bardin Road
Dallas-Fort Worth Metroplex
Sub Market
Arlington
Year Built
Location Class
No. of Parking Spaces
No.Tenants
2009
A
35
1
Building Class
No. of Buildings
Parking Ratio
No. Stories
A
1
12.8/1000
1
Property Descriptions
Construction
The property is designed as a Single Tenant Taco Bell/KFC Co-branded Concept
Restaurant with Drive Thru.
Parking
The asset is adequately parked with approximately 35 on-site parking spaces yielding a
ratio of 12.8 spaces per 1,000 sf of building.
Ingress/Egress
The site has excellent ingress and egress via multiple points on a dedicated access
road which leads to S. Collins Street.
Major Tenants
K-Mac Enterprises, Inc., the lease guarantor, is one of the largest franchises of YUM!
BRANDS in the US. The company operates over 200 restaurants in AR, MO, OK & TX,
with additional restaurants under construction. Restaurants include 140 Taco Bell
restaurants & 30 KFC restaurants. K-Mac has approximately 3,000 employees. K-Mac
won the Glen Bell Award from Taco Bell in 1998 as the chain’s No. 1 franchisee. A
majority stake in K-Mac Enterprise was acquired by private equity firm Olympus
Partners in Dec. 2004. Landlord receives regular sales reports and financials on store
performance.
YUM! BRANDS, INC. is the franchisor to K-Mac Enterprises. Yum! Brands, Inc., is
based in Louisville, KY, & is the world’s largest restaurant company with over 34,000
units in over 100 countries. Yum! Brands has a market cap of 17.9 billion and is the
parent company to the popular restaurant concepts Taco Bell, KFC, A&W, Pizza Hut &
Long John Silvers. In 2005, Yum! Brands generated more than $9 billion in total
revenues.
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
Area
Arlington is a city in Tarrant County, Texas within the Dallas–Fort Worth metropolitan
area. According to the 2010 census results, the city had a population of 365,438,
making it the third largest municipality in the Metroplex. Arlington is the seventh-largest
city in Texas and the 50th largest city in the United States.
Located approximately 12 miles east of downtown Fort Worth and 20 miles west of
downtown Dallas, Arlington is home to the University of Texas at Arlington, the Texas
Rangers' Rangers Ballpark in Arlington, Cowboys Stadium, the International Bowling
Campus, the headquarters for American Mensa, and the theme parks Six Flags Over
Texas (the original Six Flags) and Hurricane Harbor. Arlington is the headquarters of
the Nuclear Regulatory Commission Region IV.
Property
The absolute NNN lease provides for zero landlord responsibilities. The tenant is
responsible for taxes, insurance and CAM, including roof and structure. The lease
provides for annual 1% increases. There are four 5 year renewal options at fair market
value. This location includes a drive-thru. The asset is located across from the Arlington
Municipal Airport, just south of Interstate 20.
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
Investment Information
TACO BELL/KFC
Listing Price
Year One CAP
Year Two CAP
Price Per S.F.
4431 S. Collins Street Arlington, TX 76018
$1,724,415
6.75 %
6.82 %
$630.27
Net Operating Income
Building S.F.
Percent Occupied
Land Acres
2,736
100.00 %
1.15
Year One
Year Two
Year Three
Year Four
$116,398
$117,562
$118,738
$119,925
Highlights
Long Term NNN Lease
Zero Landlord Responsibilities
Annual Increases in Rent
2nd Largest Operator in System (200+
Units)
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
www.s vn .co m
Rent Roll Summary
Tenant Name
Start Date
End Date Occupied
S.F.
K-Mac Enterprises, Inc.
12/6/2011
12/5/2028
2,736
Total
2,736
Annual
Rent S.F.
$42.54
Occupied
Rent
% of Escalations / Options / Comments
Total
$116,398 100.0 % Rent increases 1% annually.
Tenant has four 5 year options to renew
at fair market value.
$116,398 100.0 %
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
All Sperry Van Ness® Offices Independently Owned and Operated.
2 . Additional Information
All Sperry Van Ness® Offices Independently Owned and Operated.
Tenant Overview K-­‐Mac Enterprises, Inc. operates 210 units overall, making them one of the largest YUM! Brand franchisees in the country. The company operates restaurants in Arkansas, Mosourri, Oklahoma and Texas, with additional restaurants under construction. Restaurants include Taco Bells, KFCs and Co-­‐
Branded stores. K-­‐Mac has approximately 3,000 employees. K-­‐Mac won the Glen Bell Award from Taco Bell in 1998 as the chain’s No. 1 franchisee. A majority stake in K-­‐Mac Enterprise was acquired by private equity firm Olympus Partners in December 2004. Landlord receives regular sales reports and financials on store performance. Yum! Brands, Inc., (not lease guarantor) based in Louisville, Ky., is the world's largest restaurant company in terms of system restaurants with nearly 38,000 restaurants in over 110 countries and territories and more than 1 million associates. Yum! is ranked #214 on the Fortune 500 List and generated more than $11 billion in revenue in 2010. The Company's brands -­‐ KFC, Pizza Hut and Taco Bell – are the global leaders of the chicken, pizza and Mexican-­‐style food categories. The Yum! system includes three operating segments: U.S., International (Yum! Restaurants International) and China Division. Outside the United States in 2010, the Yum! system opened nearly 1,400 new restaurants which equates to about four new restaurants each day of the year, making it a leader in international retail development. Results for 2010 once again affirmed the company’s consistent record of success with 17% Earnings Per Share (EPS) growth, which marks the ninth straight year Yum! delivered at least 13% growth and exceeded its 10% EPS growth target. Importantly, it maintained a Return on Investment Capital (ROIC) of 20%+ and continued to be an industry leader. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
www.s vn .co m
Aerial Photo
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
All Sperry Van Ness® Offices Independently Owned and Operated.
www.s vn .co m
Wide Aerial Photo
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
All Sperry Van Ness® Offices Independently Owned and Operated.
www.s vn .co m
Location Map
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
All Sperry Van Ness® Offices Independently Owned and Operated.
Demographics Report
4431 S. Collins Street
Arlington, TX 76018
1.00 Mile
Ring
3.00 Mile
Ring
5.00 Mile
Ring
POPULATION
1990 Population
2000 Population
2009 Population
% Population Change 1990-2000
4,304
7,497
8,443
74.19 %
79,804
113,061
131,936
41.67 %
182,914
248,671
306,921
35.95 %
2014 Total Population
% Population Change 2000-2009
% Population Change 2009-2014
2014 Total Households
% Households Change 2000-2009
% Households Change 2009-2014
2009 Household Income $200,000-$249,999
2009 Household Income $250,000-$499,999
2009 Household Income $500,000+
2009 Average Household Size
2009 Total Owner Occupied Housing Units
2009 Total Renter Occupied Housing Units
2009 Total Daytime Population
2009 Total Daytime Work Population
2009 Total Establishments
9,406
12.62 %
11.41 %
3,161
15.45 %
13.14 %
1
3
0
3.02
2,034
754
8,753
4,553
408
145,260
16.69 %
10.10 %
51,846
18.99 %
11.55 %
34
141
5
2.83
28,903
17,604
120,426
58,037
6,398
344,011
23.42 %
12.08 %
122,407
25.21 %
13.35 %
118
426
13
2.83
71,603
36,447
285,241
133,875
15,382
HOUSEHOLDS
1990 Households
2000 Households
2009 Households
% Households Change 1990-2000
1,472
2,420
2,794
64.40 %
28,763
39,061
46,479
35.80 %
65,820
86,246
107,990
31.03 %
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
2009 RACE AND ETHNICITY
White Population
Black Population
American Indian/Alaska Native Population
Asian/Hawaiian/Pacific Islander Population
Other Population (Incl 2+ Races)
3,921
2,246
33
1,058
1,185
64,865
31,982
861
13,263
20,964
169,797
58,367
2,160
23,716
52,880
2009 Hispanic Population
2009 Non-Hispanic Population
2,109
6,334
35,096
96,840
86,640
220,281
$21,576
$50,315
$65,199
$22,225
$49,632
$63,088
$23,433
$52,206
$66,599
37
57
33
98
58
210
245
360
280
602
510
215
46
32
7
1,438
1,298
1,504
2,162
2,460
3,187
3,532
4,026
3,920
7,166
8,146
5,196
1,510
525
229
4,324
3,714
4,031
5,214
5,258
5,934
6,548
7,690
7,890
15,369
20,545
14,675
3,735
1,771
735
INCOME
2009 Per Capita Income
2009 Median Household Income
2009 Average Household Income
2009 HOUSEHOLD INCOME DISTRIBUTION
Household Income < $10,000
Household Income $10,000-$14,999
Household Income $15,000-$19,999
Household Income $20,000-$24,999
Household Income $25,000-$29,999
Household Income $30,000-$34,999
Household Income $35,000-$39,999
Household Income $40,000-$44,999
Household Income $45,000-$49,999
Household Income $50,000-$59,999
Household Income $60,000-$74,999
Household Income $75,000-$99,999
Household Income $100,000-$124,999
Household Income $125,000-$149,999
Household Income $150,000-$199,999
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.