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663 BATTLEFIELD PARKWAY, FORT OGLETHORPE, GA

KENTUCKY FRIED CHICKEN

Representative Photo

OFFERING MEMORANDUM

CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Shopko located at ### Property Street, City, State Zip (“Property”) . I t has been prepared by Matthews Retai l Advisors . This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors . The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completweness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

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TABLE OF CONTENTS

Kyle MatthewsBroker of Record

License No. 363764

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TABLE OF CONTENTS

663 BATTLEFIELD PKWY | FORT OGLETHORPE, GA 30742


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Ryan MullerAssociate

License No. 01985081O 310.919.5786M [email protected]

Gary ChouVP & Director


01 . Execut ive Summary

03. Tenant Overv iew

05. Property Overv iew

13. Demographics

15. Area Overv iew

PROPERTY DETAILS

• Long Term Stabilized Income - 13.5 years left on the original lease term; Four (4), Five (5) year options

• Absolute NNN Investment – ZERO landlord responsibilities with maintenance, taxes and insurance paid by tenant for the landlord – Ideal for out of state investors looking for passive income

• Attractive Rental Escalations - Rare 7.50% rental escalations every 5 years

• 2016 Renovation – JRN has approached the landlord to renovate the building into KFC’s new prototype

• Excellent Store Sales - Store sales that nearly double the national average for KFC

LOCATION

• Chattanooga MSA – KFC is located just 8 miles from downtown Chattanooga, TN

• Chattanooga is the fourth-largest city in Tennessee with an estimated 2013 population of 173,366

• Strong Traffic Counts – Battlefield Pkwy records an estimated 33,672 cars per day

• Retail Corridor – Battlefield Pkwy is the main retail corridor in Fort Oglethorpe

• It is an out parcel in an Office Max and Family Dollar shopping center with additional surrounding national retailers in the immediate area such as CVS Pharmacy, Kmart, Walmart and Walgreens

• Dependable Consumer Base – Directly down the street from Lakeview-Fort Oglethorpe High School and Battlefield Primary School and Elementary School

• Dense Residential Area – Across the street from heavily dense residential neighborhoods

TENANT

• Strong Franchise Operator – JRN, INC. operates 177 KFC and Pizza Hut locations in United States

EXECUTIVE SUMMARY

Investment Highlights

Matthews Retail Advisors | 1

663 Battlefield Pkw Fort Oglethorpe, GA 30742

List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,808,000Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . . . 2,787 SFCAP Rate - Current. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.25 %Lot Size . . . . . . . . . . . . . . . . . . . . . . . ± 0.58 Acres (25,264 SF)Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1986

ANNUALIZED OPERATING DATAMonthly Rent Annual Rent Rent/SF CAP Rate

Present - 11/31/2019 $9,417.00 $113,004 $40.55 6.25%

11/31/2019 - 11/31/2024 $10,123.28 $121,479 $43.59 6.72%

11/31/2024 - 11/31/2029 $10,882.52 $130,590 $46.86 7.22%

Option 1 $11,698.71 $140,385 $50.37 7.76%

Option 2 $12,576.11 $150,913 $54.15 8.35%

Option 3 $13,519.32 $162,232 $58.21 8.97%

Option 4 $14,533.27 $174,399 $62.58 9.65%

Executive Summary



TENANT SUMMARYTenant Trade Name KFC

Type of Ownership Fee Simple

Lease Guarantor Franchisee

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date 11/1/2009

Rent Commencement Date 11/1/2009

Lease Expiration Date 11/31/2029

Term Remaining on Lease 13.5 Years

Increases 7.50%

Options Four (4), Five (5) Year Options

TENANT OVERVIEW

Property Name KFC

Property Type Net Leased QSR

Parent Company Trade Name Yum Brands, Inc.

Ownership Public

Credit Rating BBB

Rating Agency Standard & Poor’s

Revenue $23 B

Net Income $488.45 M

Stock Symbol YUM

Board NYSE

No. of Locations ± 18,000

No. of Employees (All) ± 24,000

Headquartered Louisville, KY

Web Site www.kfc.com

Year Founded 1952

KFC, or Kentucky Fried Chicken, is a fast food restaurant chain that specializes in fried chicken. It is the world’s second largest restaurant chain (as measured by sales) after McDonald’s, with 18,875 outlets in 118 countries and territories as of December 2013. Since the early 1990s, KFC has expanded its menu to offer other chicken products such as chicken fillet burgers and wraps, as well as salads and side dishes, such as French fries and coleslaw, desserts, and soft drinks. The company is a subsidiary of Yum! Brands, a restaurant company that also owns the Pizza Hut and Taco Bell chains.

YUM! Brands, Inc.

YUM! Brands, Inc., together with its subsidiaries, operates quick service restaurants. It operates in five segments: YUM China, YUM India, the KFC Division, the Pizza Hut Division, and the Taco Bell Division. The company develops, operates, franchises, and licenses a system of restaurants, which prepare, package, and sell various food items. As of August 18, 2015, it operated approximately 41,000 restaurants in approximately 125 countries and territories primarily under the KFC, Pizza Hut, and Taco Bell brands, which specialize in chicken, pizza, and Mexican-style food.


PROPERTY OVERVIEW

Physical Description

Matthews Retail Advisors | 6 Matthews Retail Advisors | 7



THE OFFERINGProperty Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . KFCProperty Address . . . . . . . . . . . . . . . . . . . . 663 Battlefield Pkwy Fort Oglethorpe, GA 30742Assessor’s Parcel Number . . . . . . . . . . . . . . . . . . . . .0003B003

SITE DESCRIPTIONNumber of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OneGross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . . 2,787 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . ± 0.58 Acres (25,264 SF)Type of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . Fee SimpleParking . . . . . . . . . . . . . . . . . . . . . . . . . . ± 20 Surface SpacesParking Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.18 : 1,000 SFLandscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . ProfessionalTopography. . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level

CONSTRUCTIONFoundation . . . . . . . . . . . . . . . . . . . . . . . . . . . .Concrete SlabFraming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .WoodExterior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Painted StuccoParking Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . .AsphaltRoof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Flat



Battlefield Pkwy ± 34,000 ADT

Birds Eye


Aerial


Regional



Tenant Map

DEMOGRAPHICS

Population 1-Mile 3-Mile 5-Mile

2021 Projection 6,598 39,172 98,518

2016 Estimate 6,481 38,365 96,292

2010 Census 6,430 37,971 94,758

2000 Census 5,847 34,743 88,343

Growth 2016-2021 1.81% 2.10% 2.31%

Growth 2010-2016 0.79% 1.04% 1.62%

Growth 2000-2010 9.97% 9.29% 7.26%

Households

2021 Projection 2,758 16,763 40,785

2016 Estimate 2,697 16,329 39,742

2010 Census 2,652 15,995 38,846

2000 Census 2,468 14,594 36,784

Growth 2016-2021 2.25% 2.66% 2.62%

Growth 2010-2016 1.68% 2.08% 2.31%

Growth 2000-2010 7.45% 9.61% 5.61%

Income

$0 - $15,000 20.27% 18.74% 19.18%

$15,000 - $24,999 12.88% 14.59% 14.36%

$25,000 - $34,999 13.17% 13.29% 12.79%

$35,000 - $49,999 11.66% 14.35% 15.37%

$50,000 - $74,999 21.18% 22.66% 20.03%

$75,000 - $99,999 10.67% 8.59% 9.27%

$100,000 - $124,999 5.57% 4.49% 4.73%

$125,000 - $149,999 2.59% 2.02% 2.09%

$150,000 - $199,999 1.63% 0.91% 1.37%

$200,000 - $249,999 0.29% 0.15% 0.35%

$250,000 - $499,999 0.10% 0.15% 0.33%

$500,000+ 0.02% 0.06% 0.13%

2016 Est. Average Household Income $49,066 $46,454 $48,344

2016 Est. Median Household Income $39,743 $38,536 $38,584


Demographics

Located only 5 minutes from Chattanooga, Tennessee, and about 90 minutes north of Atlanta, Georgia, Fort Oglethorpe is a city with a unique and curious history. The city sits primarily in western Catoosa County of Tennessee with some portions in northeastern Walker County in Georgia. From its Cherokee Indian past to the Civil War, from days as a U.S. Army Cavalry Post to the past half-century as a thriving city, many diverse epochs and events have contributed to the Fort Oglethorpe of today.

Fort Oglethorpe is the northern gateway to the Chickamauga-Chattanooga National Military Park, an outdoor laboratory of a critical battle and a place of serene natural beauty.

TOP EMPLOYERS - Walker County, GA

1. Roper

2. SI, Inc.

3. Hutcheson Medical Center

4. Walker County Board of Education

5. Shaw Industries

Fort Oglethorpe, GeorgiaAREA OVERVIEW


Located in southeastern Tennessee, Chattanooga, known as the Scenic City, is set along the Tennessee River in the foothills of the Appalachian Mountains. It is the seat of Hamilton County, the 4th largest city in Tennessee and the home of NCAA Division I-AA national football championships. The combination of Chattanooga’s scenic beauty, stable population and economy, civic vitality and cross-sector partnerships and strategic location has made it one of the most progressive and livable mid-size cities in the United States. Having been nationally recognized for the renaissance of its beautiful downtown and the redevelopment of its riverfront, the city shows the determination of its citizens to enrich the lives of residents and visitors alike.

Attractions such as the Tennessee Aquarium, Lookout Mountain, Civil War battlefield sites, the African American Museum, and the Appalachian Trail bring thousands of people to the area. People who love the outdoors use Chattanooga as a base for hang-gliding, bass fishing, mountain climbing and caving expeditions.

The local economy includes a diversified mix of manufacturing and service industries, four colleges, and several preparatory schools known throughout the south. Notable businesses in Chattanooga include the world’s first Coca-Cola bottling plant, CraftWork’s Restaurants & Breweries, and CBL & Associates to name a few. Additionally, as the birthplace of the tow truck, Chattanooga is the home of the International Towing and Recovery Hall of Fame Museum.

Chattanooga, TN


KFC663 Battlefield Parkway, Fort Oglethorpe, GA 30742

OFFERING MEMORANDUM

Kyle MatthewsBroker of Record

License No. 363764

Ryan MullerAssociate


Gary ChouVP & Director


™

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Representative Photo KENTUCKY FRIED · PDF fileKENTUCKY FRIED CHICKEN Representative Photo ... this solicitation process or the marketing or sale of ... a diversified mix of manufacturing