Offering Memorandum - Constant Contactfiles.constantcontact.com/5044c35e501/ac2b99a7-d73...The presence of any corporation's logo or name is not intended to indicate or imply affiliation

TACO BELL | NNN | FLORIDAJacksonville, FL

Offering Memorandum

P R E S E N T E D B Y

Joseph F. RussoDirector – Net Leased Properties GroupDir: (407) 557-3843Cell: (407) [email protected]

Douglas T. KinsonDirector – Net Leased Properties GroupDir: (407) 557-3842Cell: (407) [email protected]

mailto:[email protected]


N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended tobe reviewed only by the party receiving it from Marcus & Millichap Real Estate Investment Services of Florida, Inc.("Marcus & Millichap") and should not be made available to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information toprospective purchasers, and to establish only a preliminary level of interest in the subject property. The informationcontained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made anyinvestigation, and makes no warranty or representation, with respect to the income or expenses for the subjectproperty, the future projected financial performance of the property, the size and square footage of the property andimprovements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance withState and Federal regulations, the physical condition of the improvements thereon, or the financial condition orbusiness prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subjectproperty. The information contained in this Marketing Brochure has been obtained from sources we believe to bereliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, norhas Marcus & Millichap conducted any investigation regarding these matters and makes no warranty orrepresentation whatsoever regarding the accuracy or completeness of the information provided. All potential buyersmust take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service markof Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified inthis marketing package. The presence of any corporation's logo or name is not intended to indicate or implyaffiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates orsubsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included forthe purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

TACO BELL | NNN | JACKSONVILLE, FLJacksonville, FLACT ID X0310520

N E T L E A S E D D I S C L A I M E R

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and willnot verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee,warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information beforecompleting any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus &Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performanceof this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine toyour satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legaland financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is nota guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set basedon a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and anyguarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or inwhole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conductinghis/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating areplacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potentialreplacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost,expense, or liability arising out of your investigation and/or purchase of this net leased property.

OFFERING SUMMARY

Price $3,829,778

Net Operating Income $210,638

Capitalization Rate – Current 5.50%

Price / SF $1,856.00

Rent / SF $102.05

Lease Type Absolute Net

Gross Leasable Area 2,064 SF

Year Built / Renovated 1985 / 2015

Lot Size 0.61 acre(s)

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EXECUTIVE SUMMARY

OFFERING SUMMARY

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TACO BELL | NNN | JACKSONVILLE, FL

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OFFERING SUMMARY

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2015 Estimate Pop 13,585 78,199 178,113

2010 Census Pop 13,002 74,612 170,336

2015 Estimate HH 4,999 29,455 67,944

2010 Census HH 4,817 28,251 65,321

Median HH Income $39,678 $43,138 $46,797

Per Capita Income $17,817 $19,795 $22,828

Average HH Income $48,315 $52,386 $59,733


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OFFERING SUMMARY

Absolute NNN Lease Requires Zero Landlord Responsibilities

Recent Complete Exterior / Interior Remodel by Franchisee

Annual Rent Increases of 1.75% Throughout Lease Term

Excellent Visibility and Accessibility just off Interstate 295

Store has Above-Average Sales per most Recent Report

Guarantee from Southeast QSR Holdings, LLC

Trade Area Includes Many QSRs, Retailers and Public Schools

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to offer this absolute NNN lease of a Taco Bell located at 7331 103rd Street in Jacksonville, Florida. The interior,exterior and landscape were recently 100% remodeled by the Tenant. The Subject Property is strategically located on 103rd Street, a major eastwest traffic artery, near the intersection with I-295 and is four miles west of the Navy Air Station Jacksonville and five miles east of Cecil FieldCommerce Center (Boeing, Pratt Whitney and many other aerospace related businesses). Jacksonville has nearly 1.6 million residents in theMSA with a median age of 36 years old, younger than the average median age in the State of Florida.

The Subject Property contains 0.61 acres. The Taco Bell contains 2,064 square feet. The trade area is located in a dense retail corridor thatincludes McDonald’s, Burger King, KFC, Dunkin' Donuts and many more. Nearby retailers include Walmart Supercenter, Publix Supermarkets,and Walgreens. The immediate trade area includes an elementary, a middle and a high school as well as a densely populated residentialarea.

The lease is an absolute NNN lease with no Landlord responsibilities that includes 1.75% percent increases in each year of the term. Thelease is guaranteed by Southeast QSR Holdings, LLC, a Taco Bell franchisee with 61 restaurants in Alabama, Florida, Georgia, Mississippi,and South Carolina. Southeast QSR Holdings, LLC is a subsidiary of Prometheus Restaurant Holdings, which operates over 240 restaurantlocations across the United States. Southeast QSR Holdings, LLC typically emphasizes community involvement, participating in suchprograms as the Wounded Warrior Project, the Armed Forces Families Foundation, Awesome Effort and Summer Reading programs andFreedom Bells, which support local military families.

INVESTMENT OVERVIEW

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OFFERING SUMMARY

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Taco Bell, a subsidiary of Yum! was founded by Glen Bell in 1962. Taco Bell has become thenation's leading Mexican-style quick service restaurant serving more than 50 million customerseach week in more than 6,100 stores in the United States. Taco Bell, with the launch of the LiveMas and other successful marketing campaigns, and the introduction of new technology,including it's mobile ordering and payment apps, is on the cutting edge of the quick servicerestaurant segment. Taco Bell has become the "millennial brand".

YUM! Brands, Inc., through its subsidiaries, operates quick service restaurants. It operates in foursegments: YUM China, the KFC Division, the Pizza Hut Division, and the Taco Bell Division. Thecompany develops, operates, franchises, and licenses a system of restaurants, which prepare,package, and sell various food items. As of April 21, 2016, it operated approximately 43,000restaurants in approximately 130 countries and territories primarily under the KFC, Pizza Hut,and Taco Bell brands, which specialize in chicken, pizza, and Mexican-style food categories. Thecompany was formerly known as TRICON Global Restaurants, Inc. and changed its name toYUM! Brands, Inc. in May 2002. YUM! Brands, Inc. was founded in 1997 and is headquartered inLouisville, Kentucky.

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CLOSE PROXIMITY TO:

7331 103rd Street, Jacksonville, FL 32210

Absolute NNN Lease

Recent Exterior/Interior Remodel

Annual Rent Increases of 1.75%

Excellent Visibility & Accessibility

Store has Above Average Sales

Guarantee from Southeast QSR Holdings, LLC

Marcus & Millichap is pleased to offer thisabsolute NNN lease of a Taco Bell drive-thru located at 7331 103rd Street inJacksonville, Florida. The interior andexterior of the Subject Property wasrecently 100% remodeled and landscaped.

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMETACO BELL | NNN | JACKSONVILLE, FL

PRICING AND VALUATION MATRIX


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LOCATION OVERVIEW

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7331 103rd Street, Jacksonville, FL 32210





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REGIONAL MAP

AERIAL PHOTO


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SITE PLAN


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PROPERTY SUMMARY

OFFERING SUMMARY

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OFFERING SUMMARY

THE KINSON | RUSSO TEAM

Charles Knighton IIMARCUS & MILLICHAP CAPITAL CORPORATIONDIRECTOR, DEBT & STRUCTURED FINANCING

Renee EllisMARKETING DIRECTOR/LICENSED ASSISTANT

Christina Cintron-GrantOPERATIONS MANAGER

JOSEPH F. RUSSODIRECTOR, NET LEASED PROPERTIES GROUP

DOUGLAS T. KINSONDIRECTOR, NET LEASED PROPERTIES GROUP

MARKETING TEAM

More Than 1,600 Investment Professionalsin Offices Throughout the U.S. and Canada

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Natasha YoungBROKERAGE ASSISTANT

MARCUS & MILLICHAP MARKETING TEAM


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PROPERTY NAMEINTERSTATE COMMERCE PARK | TRANSCORE


PROPERTY NAME

THE KINSON | RUSSO, NET LEASE GROUP

Douglas T. KinsonD: (407) 557-3842C: (407) [email protected]

Joseph F. RussoDirector

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Overview

The Kinson | Russo, Net Lease Group, was formed by Doug Kinson and Joe Russo and is committedto utilizing their combined 45 years of investment sales and development experience for the creationand preservation of wealth for their clients.

Douglas T. Kinson, Director

Doug Kinson is an experienced real estate executive with over 20 years of experience in brokerage,development, sales and leasing. Throughout his career, Doug has worked with owners and investorslooking to maximize their returns through the application of proven real estate strategies. He hasrecently closed a variety of net lease transactions on behalf of both buyers and sellers that includeWalgreens, Taco Bell, Burger King, Captain D’s, Wells Fargo, Starbucks and more.

Doug’s focus at Marcus & Millichap is exclusively on assisting owners, investors and developers withnet lease investments throughout the State of Florida and across the U.S. Prior to joining Marcus &Millichap, Doug served as Director of Net Lease Investments at Calkain Companies and Atlantic RetailProperties, where he successfully negotiated net lease transactions on behalf of his nationalclients. Doug is a graduate of the University of Wisconsin with both a Master’s in BusinessAdministration and Bachelor of Science degrees.

Joseph F. Russo, Director

Joe Russo is a Florida real estate professional with over 25 years of experience as a broker, developer,retailer and investor in commercial retail projects and NNN single tenant properties. Joe has closeddeals involving more than 3 million square feet of retail projects, including life style/town centers,neighborhood community centers and NNN single tenant projects, having an aggregate value of $275million.

Joe prides himself on his collaborative approach and team building with other agents within and outsideof the Marcus & Millichap platform in order to accomplish his clients’ goals to create and preservewealth. With degrees from the University of Texas (B.B.A., with honors) and the University of HoustonCollege of Law (J.D.) and with his diverse investment sales and development background, Joe brings toMarcus & Millichap a wide range of vision, capabilities and expertise to service clients.

Joseph F. RussoD: (407) 557-3843C: (407) [email protected]




Exclusively listed by: Investment Sales:

OFFICES NATIONWIDEwww.marcusmillichap.com

Joseph F. RussoDirector – Net Leased Properties GroupOrlando OfficeDir: (407) 557-3843Cell: (407) 453-0252Fax: (407) [email protected] License: SL677351

Douglas T. KinsonDirector – Net Leased Properties GroupOrlando OfficeDir: (407) 557-3842Cell: (407) 625-9539Fax: (407) [email protected] License: SL611884

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Offering Memorandum - Constant Contactfiles.constantcontact.com/5044c35e501/ac2b99a7-d73...The presence of any corporation's logo or name is not intended to indicate or imply affiliation