REP PHOTO EXCLUSIVE OFFERING | $808,500 - 7.25% CAP Package.pdfKFC: KFC (Kentucky Fried Chicken) headquartered in Louisville, Kentucky is a global chain of fried chicken fast food

EXP DALLAS

214.522.7200

JOE CAPUTO

[email protected]

BOB MOORHEAD

[email protected]

property. Built in 1992, approximately 3,287 square foot building on approximately 0.88 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. KFC is located along North Morrison Blvd (24,228 Cars / Day), east of Interstate 55 (34,015 Cars / Day), and north of Interstate 12 (49,979 Cars / Day.

The subject property benefits from visibility and exposure in the dense retail shopping corridor. The immediate trade area includes Hammond Square Shopping

Center (431,000 SF) with anchor tenants Sears, Dillard’s, JC Penney, Best Buy, Target, AMC Theater Multiplex. Located near KFC are a Walmart Supercenter,

Southeastern University (15,000 Students), and North Oaks Hospital (500 Beds – 2,500 Employees).

REP PHOTO

EXCLUSIVE OFFERING | $808,500 - 7.25% CAP

KFC

223 North Morrison Blvd., Hammond, LA

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 223 North Morrison Blvd., Hammond, 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 REP PHOTO




SUBJECT PROPERTY PRIOR TO PANDA EXPRESS EXPANSION

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.

PRICE: $808,500

CAP RATE: 7.25%

NET OPERATING INCOME: $58,610

BUILDING AREA: 3,287 + Square Feet

LAND AREA: 0.88 + Acres

YEAR BUILT: 1992

OWNERSHIP: Fee Simple Interest

OCCUPANCY: 100%

Tenant overview

3

Investment overview KFC


Lease Expiration: July 2027

Rent Commencement: July 2012

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

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

Rent Increases: 1.5% Annually During Primary Term & Options

Annual Rent (Current): $58,610

Lease Type: Absolute NNN | No Landlord Responsibility

Annual Rent Year 2: $59,489




Lease overview














4

Aerial photo KFC


N M

orriso

n B

lvd. U

S H

wy 51 (24,448 C

ars / Day)

West Thomas Street US Hwy 190 (25,314 Cars / Day)

Hammond Square Mall (431,000 SF)

North Oaks Hospital (2500+ Employees & 500 Beds)

Southeastern University (15,000 Students)

Interstate 12 (49,979 Cars / Day)




IMMEDIATE TRADE AREA

KFC is located along North Morrison Blvd (24,228 Cars / Day), east of Interstate 55

(34,015 Cars / Day), and north of Interstate 12 (49,979 Cars / Day). The immediate

trade area includes Hammond Square Mall (431,000 SF) owned and managed by

Sterling Properties. Hammond Square Mall is anchored by Sears, Dillard’s, JC

Penney, Best Buy, and Target. Other tenants include AMC Theater Multiplex, TJ

Max, The Children’s Place, Foot Locker, GNC, Rite Aid, and Verizon Wireless.

Additionally there are several casual dining restaurants and local retailers within the

immediate trade area. A Walmart Supercenter is to the immediate west of the

subject property.

South of the property is North Oaks Hospital (500 Beds / 2,500 Employees).

Southeastern Louisiana University is Northwest of the property. It is ranked as the

3rd largest public university in Louisiana (15,000 Students).

HAMMOND, LOUISIANA / TANGIPAHOA PARISH

Hammond is the largest city in Tangipahoa Parish, the 4th fastest-growing parish in

the state of Louisiana with a population increase of 20.4% over the last decade.

Hammond is less then an hour to New Orleans and Baton Rouge and is becoming

one of the newest suburbs to both cities. There is an abundance of commercial and

residential development, as well as numerous hotels which absorb overflowing

demand for rooms near major events in New Orleans. According to the 2009 U.S.

Census, the population is 20,037 within the city limits. The City of Hammond has

experienced a 13.5% population increase, and is the 16th most populated city in the

state of Louisiana.

With access to key north-south and east-west interstates, Hammond is ideally

situated as a distribution hub. Wal-Mart, Home Depot, Winn Dixie, Entergy and

Cardinal Health are some of the companies that have distribution centers in

Hammond.

The Economic and Industrial Development Board has partnered with local

businesses to develop a 186-acre site off the I-12 Airport Road exit. The Hammond

Regional Commerce Center will be constructed in this location. Amenities such as

extra wide streets and freight services will help meet the growing needs for

distribution, light manufacturing, and retail.

The Hammond area and Tangipahoa Parish have drawn numerous Hollywood

production companies. Production companies often reserve entire blocks of hotel

rooms for several days or weeks. The film industry generated approximately $1.08

billion in 2010 for Louisiana with the bulk in the Greater New Orleans Region.

NEW ORLEANS / BATON ROUGE METRO AREAS

Hammond is within a one hour drive to New Orleans on Interstate 12 and Baton

Rouge on Interstate 55. Hammond, Tangipahoa Parish, is part of the New Orleans

greater metropolitan region. This proximity makes Hammond an ideal distribution

warehousing center for goods being shipped from New Orleans or Baton Rouge.

The New Orleans-Metairie-Kenner Metropolitan Statistical Area is the 46th largest in

the United States with a population of 1,235,650 as per the 2010 US Census. New

Orleans is home to one of the largest and busiest ports in the world, providing New

Orleans a thriving maritime industry. The New Orleans region also accounts for a

significant portion of the nation's oil refining and petrochemical production. Globally

renowned Tulane University has made New Orleans a center for higher learning.

There are over 50,000 students enrolled in the region's 11 colleges and universities.

Metropolitan New Orleans is a major regional hub for the health care industry and

boasts a small, globally competitive manufacturing sector.

In 2002, Louisiana began offering tax credits for film and television production. This

led to a substantial increase in the number of films shot in the New Orleans area

and brought the nickname "Hollywood South.“ Film production has further diversified

the regional economy by creating thousands of new jobs, new businesses, and

inspiring the growth of new industries that are both directly and indirectly associated

with film.

New Orleans has seen major tourist events, conventions and other forms of

revenue. The New Orleans area is home to numerous celebrations, the most

popular of which is Carnival, often referred to as Mardi Gras.

The Greater Baton Rouge Metropolitan Area is one of the fastest growing

metropolitan areas in the US, increasing in population from 602,894, in 2000, to

802,484 as per the 2010 US Census. The city is home to a Fortune 500 and 1000

company. Baton Rouge is the furthest inland port on the Mississippi River that can

accommodate ocean-going tankers and cargo carriers. The Exxon Mobil facility in

Baton Rouge is the 2nd largest oil refinery in the country, and is the 10th largest

globally.

The film industry, like in neighboring New Orleans, is a strong growth industry in

Baton Rouge, which is now home to Celtic Media Center. The Celtic Media Centre

is the largest film and television production studio in the state of Louisiana and is at

100% capacity.

5

Location overview KFC





6

Location map kfc





7

Location map KFC





8

Demographics kfc


Demographic snapshot

DOWNTOWN JEFFERSON CITY,MO

Radius 1 Mile 3 Mile 5 Mile

Population:

2016 Projection 5,129 30,843 58,830

2011 Estimate 5,061 29,562 55,756

2010 Census 5,055 29,365 55,077

Growth 2011-2016 1.30% 4.30% 5.50%

Growth 2010-2011 0.10% 0.70% 1.20%

2011 Households:

2016 Projection 2,154 11,619 22,128

2011 Estimate 2,115 11,061 20,810

2010 Census 2,113 10,981 20,545

Growth 2011-2016 1.90% 5.00% 6.30%

Growth 2010-2011 0.10% 0.70% 1.30%

Owner Occupied 934 5,568 12,299

Renter Occupied 1,180 5,493 8,511

2011 Avg Household Income $53,941 $50,593 $52,845

2011 Med Household Income $38,080 $35,498 $38,514

2011 Per Capita Income $21,585 $20,416 $20,800

2011 Households by Household Inc:

Income Less than $15,000 423 2,486 4,221

Income $15,000 - $24,999 335 1,660 2,958

Income $25,000 - $34,999 226 1,322 2,394

Income $35,000 - $49,999 278 1,381 2,800

Income $50,000 - $74,999 378 1,768 3,387

Income $75,000 - $99,999 183 1,077 2,338

Income $100,000 - $149,999 174 933 1,924

Income $150,000 - $199,999 82 317 560

Income $200,000+ 35 117 227

HAMMOND SQUARE MALL

DOWNTOWN NEW ORLEANS




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REP PHOTO EXCLUSIVE OFFERING | $808,500 - 7.25% CAP Package.pdfKFC: KFC (Kentucky Fried Chicken) headquartered in Louisville, Kentucky is a global chain of fried chicken fast food