Taco Bell Ground Lease - LoopNetimages1.loopnet.com/d2/1cNmVRInRkBh-BQ1gQl...Taco Bell Ground Lease 937 Main St, Atchison, KS 66002 James Capital Advisors The Offering $884,211 4.75%

Taco Bell Ground Lease

937 Main St, Atchison, KS 66002

James Capital Advisors

Marketing Package

Taco Bell Ground LeaseAtchison, KS




The Offering

$884,211

4.75%

$42,000

$32.74

$1.56

Mike James

(424) 325-2606

SUBMIT OFFER

FINANCIAL SUMMARYPurchase Price

Cap Rate

Net Operating Income

Land Price / SF

Land Rent / SF

Listing Agent

Phone Number

Email

PROPERTY INFOTenant

Street Address

City

State

Zip

APN

GLA (Land)

Lot Size

Year Built

Taco Bell

937 Main Street

Atchison

KS

66002

3.09E+16

27,007 SF

0.62 AC

2018

Lease Backed by Experienced 37-Unit FranchiseeThis lease is backed by KC Bell, Inc., a 37-unit operator with over 20 years of experience.

Strong Tenant CommitmentThe lease features an initial term of 25 Years with an additional four 5-Year options to extend the lease until 12/31/2062, indicating strong commitment to the site.

Globally Recognized BrandTaco Bell is a globally recognized brand with a total sales growth of 7% in FY’17, a trend which is expected to continue due to the expansion of stores internationally.

Long-Term Ground LeaseThis property operates on a Ground Lease structure, which calls for no landlord maintenance or expenses.

Exceptional Rent to Sales RatioThis property offers the benefit of a rent to sales ratio below 4%, which provides the landlord with a highly sustainable future cash flow.

Ample Rent Growth - 10% Increases Every Five YearsThere are 10% rental increases built into the lease every five years, providing the landlord with positive rent growth and a hedge against ordinary inflation.

INVESTMENT HIGHLIGHTS

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Property Image




Lease Summary

Tenant Responsible

Tenant Responsible

Tenant Responsible

Franchisee

Private

KC Bell, Inc

21

37

Real Estate Taxes

Insurance

Repairs & Maintenance

Lease Guarantor

Company Name

Ownership

Years in Business

Number of Locations

LEASE SUMMARYLease Type

Type of Ownership

Original Lease Term

Commencement Date

Lease Expiration

Term Remaining

Increases

Options

ROFR / ROFO

Triple-Net (NNN)

Ground Lease

25 Years

01/01/2018

12/31/2042

23+ Years

10% Every 5 Years

Four 5-Year

N/A

INVESTMENT HIGHLIGHTSKansas City MSAThe nearby thriving Kansas City MSA had YOY job growth of 1.8% in Q1 FY’19. This trend is expected to continue as the tax and financial incentives program continues to attract businesses to the area.

Drive-Thru LocationThis location features a dedicated drive-thru, which adds a meaningful level of convenience to the customer experience and drives sales.

City of Atchison - Growing Fiscal BudgetAtchinson’s Annual Budget saw a 4% year-over-year increase in FY’18, indicating increased growth and investments in the area. This includes nearly $7M in planned capital projects.

Designated Qualified Opportunity ZoneThis property is located in an Opportunity Zone as designated by the 2017 Tax Cuts and Jobs Act, and may provide tax benefits to the owner. Please consult your tax advisor for details.

Brand New 2017 ConstructionThe site was completely rebuilt in 2017 for the scheduled store opening in Q1 2018. Over 1,800 SF of the service area was reconstructed and ample parking was added for customer convenience.

Excellent Visibility Along Main StreetThe subject property is situated in the intersection of Main and 10th Street, with traffic counts exceeding 9,000 vehicles per day.




Property Image




Rent Schedule

4.75%

5.23%

5.75%

6.32%

6.95%

7.65%

8.41%

9.26%

10.18%

$1.92

$2.12

$2.33

$2.56

$2.82

$3.10

$3.41

$3.75

$4.12

-

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

$3,500.00

$3,850.00

$4,235.00

$4,658.50

$5,124.33

$5,636.79

$6,200.47

$6,820.52

$7,502.57

$42,000.00

$46,200.00

$50,820.00

$55,902.00

$61,492.00

$67,641.48

$74,405.64

$81,846.24

$90,030.84

Base Term

Base Term

Base Term

Base Term

Base Term

Option 1

Option 2

Option 3

Option 4

01/01/2018 - 12/31/2022

01/01/2023 - 12/31/2027

01/01/2028 - 12/31/2032

01/01/2033 - 12/31/2037

01/01/2038 - 12/31/2042

01/01/2043 - 12/31/2047

01/01/2048 - 12/31/2052

01/01/2053 - 12/31/2057

01/01/2058 - 12/31/2062

CAP RATERENT / SFINCREASEMONTHLY RENTANNUAL RENT PERIODRent Schedule




About the Brand

ABOUT THE BRANDBrand OverviewTaco Bell serves made-to-order and customizable tacos and burritos, among other choices, and is the first QSR restaurant to offer American Vegetarian Association (AVA)-certified menu items. Taco Bell, and its more than 350 franchise organizations, proudly serves over 42 million customers each week through more than 7,000 restaurants across the globe, as well as through its mobile, desktop and delivery ordering services.

As the leading Mexican-inspired quick service restaurant brand, Taco Bell plans to have 9,000 restaurants by the year 2023, which the company anticipates will add an estimated 100,000 jobs nationwide.

Under the parent company, Yum! Brands Inc., Taco Bell is part of a family of fast food powerhouses which include both KFC and Pizza Hut. Yum! Brands Inc., a Fortune 500 company, had revenues exceeding $6 billion in 2016.

Locations

7,000+

Countries

27

Yearly Customers

2 Billion

August 2018Taco Bell announced plans to expand the brand’s presence in the Northeast by opening three new Taco Bell Cantina locations in Manhattan. Taco Bell opened sixteen Cantinas across the country in 2018.

March 2018 Nacho Fries became the company’s most successful product launch in the chain’s history, selling 53 million orders in five weeks.

November 2018The Taco Bell Foundation more than Doubles the Live Más Scholarship Commitment To $21 Million By 2021, supporting students nationally.

February 2019To ensure faster delivery, Taco Bell has integrated its point-of-sale system directly into the Grubhub app and began offering free nationwide delivery for a limited time.

January 2019The company announced its efforts to test a dedicated vegetarian menu aimed at appealing to consumers’ dietary needs.

January 2019 Taco Bell continued its expansion into international marketing by opening its first restaurant in Thailand. The company now operates in nearly 30 markets around the world.

RECENT NEWS




Location Overview

Kansas City Metropolitan AreaKansas City has seen a steady growth rate in the past year and that is expected to continue. A $10B VA contract with health giant Cerner is projected to further boost the Kansas City economy.

Plans to Expand Kansas City International AirportThe Kansas City International Airport, located less than 25 minutes from the subject property, received voter approval for expansion in November 2017, further enhancing future job growth.

Tremendous Industrial GrowthIn 2017, Kansas City was ranked No. 1 in industrial transaction volume based on year-over-year growth rate, according to Integra Realty Resources Viewpoint’s 2018 publication.

Atchison CityAtchison, located in Atchison County, Kansas, is about 35 minutes northwest of the Kansas City Metropolitan Area and 45 minutes northeast of the state’s capital city, Topeka.

Vibrant College TownFounded in 1858 as the second city in the state, Atchison has a current population of approximately 11,000 and is home to Benedictine College and Highland Community College.

Popular Tourist DestinationWith over 20 sites on the National Register of Historic Places, Atchison is one of the most history-rich cities in Kansas and attracts tourists year-round through various festivals and events.

LOCATION OVERVIEW




Retail Aerial




Retail Aerial




Site Plan




Demographics

Kansas City Metropolitan AreaKansas City has seen a steady growth rate in the past year and that is expected to continue. A $10B VA contract with health giant Cerner is projected to further boost the Kansas City economy.

10 MILE

5,532

5,624

5,827

$57,097

$45,782

5 MILE

4,439

4,529

4,736

$53,606

$43,343

3 MILE

4,089

4,174

4,378

$52,331

$42,516

1 MILE

2,649

2,698

2,797

$49,905

$41,389

HOUSEHOLDS

2023 Projection

2018 Estimate

2010 Census

HOUSEHOLDS

Avg. HH Income

Med. HH Income

10 MILE

15,186

15,414

15,914

5 MILE

12,361

12,585

13,098

3 MILE

11,448

11,663

12,169

1 MILE

6,921

7,039

7,281

DEMOGRAPHICSPOPULATION

2023 Projection

2018 Estimate

2010 Census




DISCLAIMERThe information contained in this Marketing Brochure has been obtained from sources believed to be reliable. However, James Capital Advisors, Inc. & Brian Brockman (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property.

The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITYThis Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASEThis Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker. from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property.

NON-ENDORSEMENTBroker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

Disclaimer




Contact Information

Contact Information

SUBMIT OFFER

Brian BrockmanBang Realty - Kansas, Inc

KS RE Lic. 239819

Reed MelilloSenior Director, Net Lease

(424) [email protected] RE Lic. 01984199

Mike JamesManaging Partner

(424) [email protected] RE Lic. 01869890

mailto: [email protected]?subject=LOI - Taco Bell - Atchison, KS

Documents

Taco Bell Ground Lease - LoopNetimages1.loopnet.com/d2/1cNmVRInRkBh-BQ1gQl...Taco Bell Ground Lease 937 Main St, Atchison, KS 66002 James Capital Advisors The Offering $884,211 4.75%