EXCLUSIVE OFFERING | $1,035,000 - 7.25% CAP Marketing Package.pdfKFC: KFC (Kentucky Fried Chicken) headquartered in Louisville, Kentucky is a global chain of fried chicken fast food

REP PHOTO

EXP DALLAS

214.522.7200

JOE CAPUTO

[email protected]

BOB MOORHEAD

[email protected]

property. Built in 2003, approximately 2,300 square foot building on approximately 0.34 acres.

tenant. Lessee: Star Brands III, LLC dba KFC is an asset development firm that is focused primarily on the ownership and management of branded restaurants.

The company currently owns 10 KFC restaurants located in the Southeastern United States.

lease structure. Brand new, 15-year, absolute NNN lease with 1.5% annual rent increases during primary term and option periods.

location. Located along South Carrollton Avenue (41,666 Cars / Day) just north of the intersection of Earhart Boulevard (16,995 Cars / Day). Site is adjacent to

Daughters of Charity Medical Clinic, Reilly’s, and Wendy’s. Close to Tulane University, Xavier Louisiana University, and Notre Dame New Orleans Seminary.

Retailers in the immediate trade area include Costco, Family Dollar, Dollar General, and AutoZone. New Orleans-Metairie-Kenner MSA Population: 1,235,650

SUBJECT PROPERTY

EXCLUSIVE OFFERING | $1,035,000 - 7.25% CAP

KFC

3235 South Carrollton Avenue in new Orleans, Louisiana

Broker of Record: Beau J. Box | Beau Box Commercial Real Estate | 225-237-3343 | [email protected] | P O Box 66865, Baton Rouge LA 70896 USA

Louisiana Real Estate License: 72498

mailto:[email protected]

EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the

property located at 3235 South Carrollton Avenue, New Orleans, LA by the owner of the

Property (“Seller”). The Property is being offered for sale in an “as-is, where-is” condition

and Seller and Agent make no representations or warranties as to the accuracy of the

information contained in this Offering Memorandum. The enclosed materials include highly

confidential information and are being furnished solely for the purpose of review by

prospective purchasers of the interest described herein. The enclosed materials are being

provided solely to facilitate the prospective investor’s own due diligence for which it shall be

fully and solely responsible. The material contained herein is based on information and

sources deemed to be reliable, but no representation or warranty, express or implied, is

being made by Agent or Seller or any of their respective representatives, affiliates, officers,

employees, shareholders, partners and directors, as to the accuracy or completeness of the

information contained herein. Summaries contained herein of any legal or other documents

are not intended to be comprehensive statements of the terms of such documents, but

rather only outlines of some of the principal provisions contained therein. Neither the Agent

nor the Seller shall have any liability whatsoever for the accuracy or completeness of the

information contained herein or any other written or oral communication or information

transmitted or made available or any action taken or decision made by the recipient with

respect to the Property. Interested parties are to make their own investigations, projections

and conclusions without reliance upon the material contained herein. Seller reserves the

right, at its sole and absolute discretion, to withdraw the Property from being marketed for

sale at any time and for any reason. Seller and Agent each expressly reserves the right, at

their sole and absolute discretion, to reject any and all expressions of interest or offers

regarding the Property and/or to terminate discussions with any entity at any time, with or

without notice. This offering is made subject to omissions, correction of errors, change of

price or other terms, prior sale or withdrawal from the market without notice. Agent is not

authorized to make any representations or agreements on behalf of Seller. Seller shall

have no legal commitment or obligation to any interested party reviewing the enclosed

materials, performing additional investigation and/or making an offer to purchase the

Property unless and until a binding written agreement for the purchase of the Property has

been fully executed, delivered, and approved by Seller and any conditions to Seller’s

obligations hereunder have been satisfied or waived. By taking possession of and

reviewing the information contained herein, the recipient agrees that (a) the enclosed

materials and their contents are of a highly confidential nature and will be held and treated

in the strictest confidence and shall be returned to Agent or Seller promptly upon request;

and (b) the recipient shall not contact employees or tenants of the Property directly or

indirectly regarding any aspect of the enclosed materials or the Property without the prior

written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be

copied or otherwise reproduced without the prior written authorization of Seller and Agent.

PAGE 3: INVESTMENT | TENANT | LEASE OVERVIEW

PAGE 1: COVER

PAGE 2: TABLE OF CONTENTS | DISCLAIMER

PAGE 6-7: LOCATION MAPS

Table of contents | Disclaimer Kfc


PAGE 4: AERIAL PHOTO

PAGE 5: LOCATION OVERVIEW

Disclaimer

PAGE 8: DEMOGRAPHICS

SUBJECT PROPERTY



http://www.bsro.jobs/about_bsro


PRICE: $1,035,000

CAP RATE: 7.25%

NET OPERATING INCOME: $75,000

BUILDING AREA: 2,300 + Square Feet

LAND AREA: 0.34 + Acres

YEAR BUILT: 2003

OWNERSHIP: Fee Simple Interest

OCCUPANCY: 100%

Tenant overview

3

Investment overview Kfc


Star Brands III, LLC, a Louisiana limited liability company dba KFC

Lease overview

Star Brands III, LLC / KFC

Franchisee: Star Brands III, LLC is an asset development firm that is focused primarily on the ownership and management of branded restaurants. It

concentrates its restaurant activities on opening, managing, and enhancing branded restaurants for the purpose of maximizing shareholder value. The company

currently owns 10 KFC restaurants located in the Southeastern United States.

KFC: KFC (Kentucky Fried Chicken) headquartered in Louisville, Kentucky is a global chain of fried chicken fast food restaurants. The first "Kentucky Fried

Chicken" franchise was opened in Utah in 1952. In 1986 PepsiCo acquired the brand for $850 million and spun off its restaurants division as Tricon Global

Restaurants in 1997, which subsequently changed its name to Yum! Brands in 2002. As a Yum! subsidiary, KFC is a core component of one of the largest

restaurant companies in the world.

As of 2011, there were over 17,000 KFC outlets in 105 countries and territories around the world, although almost half of the total are in the United States and

China.

Lease Expiration: July 2027

Rent Commencement: July 2012

Initial Lease Term: 15-Years, Plus 4, 5-Year Options to Renew

Rent Increases: 1.5% Annually During Primary Term & Options

Annual Rent (Current): $75,000

Lease Type: Absolute NNN | No Landlord Responsibility

Annual Rent Year 2: $76,125

















4

Aerial photo Kfc


Opening in 2013




IMMEDIATE TRADE AREA

KFC is located on the southeast corner of South Carrollton Avenue (41,666 Cars /

Day) at Forshey Street approximately 2 blocks north of the Uptown New Orleans

northern boundary. South Carrollton Avenue is a 6-lane, divided, primary surface

street that runs from the Mississippi River north and east through the historic 16th

Ward to the New Orleans Botanical Gardens west of downtown New Orleans.

South Carrollton connects the historic Uptown neighborhoods of Black Pearl,

Carrollton, and Fountainbleau to Interstate 10 (132,596 Cars / Day). Earhart

Boulevard parallels Interstate 10 to the south, and connects commercial and

residential areas of western New Orleans to downtown.

The subject property is a freestanding building on the hard corner of the

intersection. The site is adjacent to 1 of New Orleans’s 4 Daughters of Charity

Medical Clinics. The site is directly across from the historic New Orleans Lincoln

Park.

KFC is approximately 3.5-miles from New Orleans’s legendary French Quarter, and

less than 3-miles from the Mercedes-Benz Superdome. A 148,000 SF Coscto is

currently under construction 0.5-miles northeast of the site on Carrollton Avenue.

This new store will open in 2013. Other nearby retailers include Dollar General,

Family Dollar, AutoZone, Firestone Complete Auto Care, SpeeDee Oil Change,

Wendy’s, and Rally’s. Within a mile of the property on South Carrollton Avenue are

four schools: Xavier University of Louisiana (3,400 students); Xavier University

Preparatory School (350 students); Lafayette Academy Charter School (780

students); and Notre Dame Seminary—residence of the Archbishop of New

Orleans. Tulane University (13,359 Students), Loyola University New Orleans

(4,858 Students), KIPP Academy, and Audubon Charter School are located within

2-miles of the subject property.

NEW ORLEANS, LA

New Orleans is a major U.S. port and the largest city in the state of Louisiana with a

population of 343,829 residents. The New Orleans economy is based on twin

pillars of tourism and shipping. Additionally, New Orleans has a thriving energy

sector along with a fast growing film industry presence.

New Orleans consistently ranks as one of the top 10 tourist destinations in the U.S.

The city is known for its jazz, Creole food, 18th and 19th century architecture,

streetcars, museums, and arts. Famous festivals like Mardi Gras, the New Orleans

Jazz Festival, and Satchmo SummerFest attract hundreds of thousands of tourists

to New Orleans each year. The city has taken advantage of its status as a major

tourism destination by establishing itself as one of the top convention sites in the

country.

The Ernest M. Morial Convention Center plays a significant role in drawing the city’s

8.3 million annual visitors. The tourism and convention industries employ 85,000

people in New Orleans and contribute $5.5 billion annually to the local economy.

New Orleans has successfully spurred the emergence of the city as a major movie

production destination due in large part to the State of Louisiana granting

transferable tax credits to film producers. To date over 25 movies have been filmed

in New Orleans in 2012 by studios that include Universal pictures, Warner Brothers,

HBO, Summit Entertainment, and VHI.

Major sporting events also provide a significant impact to the local economy.

Annual college football games such as the Bayou Classic, the New Orleans Bowl,

and the Sugar Bowl are held at the Mercedes-Benz Superdome. New Orleans is 1

of 4 rotating sites for college football’s BCS National Championship. The city

hosted the 1st and 2nd rounds of the 2007 NCAA Men’s Division I Basketball

Tournament and the Final Four Championship in 2012. The city will host the

upcoming BCS National Championship in January 2013 and Super Bowl XLVII in

February 2013 at the Mercedes-Benz Superdome.

The city’ proximity to the Gulf and Mississippi River provide an ideal location for a

waterborne transportation hub. Port of New Orleans handles about 62 million short

tons of cargo each year, which makes the port 1st in the U.S. based on volume of

cargo handled, 2nd largest in the state and the 13th largest in the United States

based on value of cargo. The port has the longest wharf in the world, which can

accommodate 15 vessels at one time. The port handles about 50,000 barges, and

700,000 cruise passengers per year. The 2 ports oversee 6,000 vessels and 500

million tons of cargo each year, including over half of the country’s grain exports.

In addition to the Port of New Orleans, the MSA contains the Port of South

Louisiana, giving the area the 2 largest ports in the state. Port of South Louisiana is

the largest volume shipping port in the Western Hemisphere and the 9th largest in

the world. It is the largest bulk cargo port in the world. New Orleans is home to

Entergy, a Fortune500 listed company. Top regional employers include Louisiana

State University Health (7,000+ employees), Northrop Grumman Ship Systems

(6,000+ employees), and Tulane University (5,000+ employees). Other notable

employers are University of New Orleans, North Oaks Health System, DOW

Chemical, and Chevron Production.

NEW ORLEANS-METAIRE-KENNER MSA

The New Orleans-Metaire-Kenner Metropolitan Statistical Area is made up of 7

parishes in southeastern Louisiana in the Mississippi River Delta. The MSA

population was 1,235,650 per the 2010 US Census, which makes the MSA the 46th

largest in the United States.

5

Location overview Kfc





6

Location map Kfc





7

Location map kfc





Radius 1 Mile 3 Mile 5 Mile

Population:

2016 Projection 29,495 199,802 382,677

2011 Estimate 25,186 168,730 332,976

2010 Census 24,745 164,977 326,568

Growth 2011-2016 17.10% 18.40% 14.90%

Growth 2010-2011 1.80% 2.30% 2.00%

2011 Households:

2016 Projection 11,497 86,498 163,396

2011 Estimate 9,698 74,160 144,609

2010 Census 9,457 72,321 141,695

Growth 2011-2016 18.50% 16.60% 13.00%

Growth 2010-2011 2.50% 2.50% 2.10%

Owner Occupied 2,692 28,975 67,208

Renter Occupied 7,007 45,185 77,401

2011 Avg Household Income $35,282 $49,054 $56,158

2011 Med Household Income $21,990 $28,791 $34,823

2011 Per Capita Income $19,429 $23,546 $25,779

2011 Households by Household Inc:

Income Less than $15,000 3,450 20,532 32,666

Income $15,000 - $24,999 1,793 12,208 21,767

Income $25,000 - $34,999 1,413 9,604 18,113

Income $35,000 - $49,999 1,187 10,098 20,790

Income $50,000 - $74,999 856 8,614 19,410

Income $75,000 - $99,999 447 4,694 11,510

Income $100,000 - $149,999 353 4,240 10,385

Income $150,000 - $199,999 69 1,683 4,004

Income $200,000+ 128 2,488 5,960

8

Demographics kfc


Demographic snapshot

MARDI GRAS REVELLERS IN NEW ORLEANS, LA




Documents

EXCLUSIVE OFFERING | $1,035,000 - 7.25% CAP Marketing Package.pdfKFC: KFC (Kentucky Fried Chicken) headquartered in Louisville, Kentucky is a global chain of fried chicken fast food