Taco Bell (Ground Lease) 1750 Summit Ave Bell (GL...Taco Bell plans to have 8,000 restaurants by the year 2023 which they anticipate will add an estimated 100,000 jobs nationwide

NET LEASE INVESTMENT OFFERING

Taco Bell (Ground Lease)1750 Summit AveOconomowoc, Wisconsin 53066 (Milwaukee MSA)


NET LEASE INVESTMENT OFFERINGNET LEASE INVESTMENT OFFERING

TABLE OF CONTENTS

I. Executive Summary

Executive SummaryInvestment HighlightsProperty Overview

II. Location Overview

Site PlanAerialMaps

III. Market & Tenant Overview

Tenant ProfileLocation OverviewDemographics


DISCLAIMER STATEMENT

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

DISCLAIMER STATEMENT:


EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a single tenant Taco Bell ground lease located within the Milwaukee MSA in Oconomowoc, Wisconsin. The brand new construction Taco Bell property is well located on an approximately 1 acre lot just off of Interstate 94 (55,100 VPD). The 25 year ground lease features 1.5% annual rental escalations and four 5-year renewal options.

The property is located across from Pabst Farms, a development featuring retail, hotels, residential and industrial. Taco Bell is located adjacent to the marketplace at Pabst Farms which is anchored by Pick ‘n Save (Kroger) and the town center at Pabst Farms. Additionally, directly across from the Taco Bell, a brand new Fleet Farm (218,628 SF) is under construction to anchor the mix-used development project. A large Target Distribution Center with 750 employees and a large Kroger distribution center are located in the immediate vicinity. Additional retailers in the area include Aldi, AT&T, Harley-Davidson and numerous other commercial users. There are also two large hotels, Hilton Garden Inn (100 rooms) and Staybridge Suites (228 rooms) in the trade corridor. There is also a 110 bed Aurora Medical Center near the Taco Bell property. The average household income within 3 miles of the property is $115,636.

The brand new construction 25 year ground lease Taco Bell is being operated by Albor Restaurant Group, an experienced operator with over 30 years of experience with Yum Brands. As of 2018, Taco Bell serves more than 2 billion customers each year at 7,000 restaurants, more than 80 percent of which are owned and operated by independent franchisees and licensees. Taco Bell plans to have 8,000 restaurants by the year 2023 which they anticipate will add an estimated 100,000 jobs nationwide. Currently, Taco Bell is operated by more than 350 franchise organizations proudly serving over 42 million customers each week.

EXECUTIVE SUMMARY:


INVESTMENT HIGHLIGHTS

• Located within the Milwaukee MSA

• Brand new construction

• Rare 25 year lease

• Ground lease with zero landlord responsibilities

• 1.5% annual rental escalations

• Low rent

• Well located just off of Interstate 94 (55,100 VPD)

• Adjacent to a large Target Distribution Center with 750 employees and near a large Kroger distribution center

• Retailers in the area include Aldi, Pick ‘n Save (Kroger), AT&T and Harley-Davidson Directly across from the Taco Bell is a brand new Fleet Farm (218,628 SF) anchoring a mix-used development project

• The average household income within 3 miles of the property is $115,636

INVESTMENT HIGHLIGHTS:


PROPERTY OVERVIEW

PROPERTY OVERVIEW:

Price: $1,388,889

Cap Rate: 4.50%

Net Operating Income: $62,500

Rental Escalations: 1.50% Annually

Renewal Options: Four 5-Year

Lease Commencement Date: August 11, 2018

Lease Expiration Date: August 10, 2043

Tenant: Albor Restaurant Group, LLC d.b.a. Taco Bell

Year Built: 2018

Lease Type: Ground Lease - No Landlord Responsibilities

Building Size: 2,112 SF

Land Size: 0.94 Acres


AERIAL


MIXED-USE DEVELOPMENT

DISTRIBUTION CENTER

(750 EMPLOYEES)Industrial Park

(55,100 V

PD)

94

AURORA MEDICAL CENTER (110 BEDS)

228 ROOMS

N


SUMMIT AVENUE

SUMMIT CENTER DRIVE

SUM

MIT

CE

NT

ER

DR

IVE


SITE PLAN

N


MAPS

N


TENANT PROFILE

Taco Bell is an American chain of fast food restaurants based out of Irvine, California and a subsidiary of Yum! Brands, Inc. The restaurants serve a variety of Tex-Mex foods that include tacos, burritos, quesadillas, nachos, novelty and specialty items, and a variety of “value menu” items. As of 2018, Taco Bell serves more than 2 billion customers each year at 7,000 restaurants, more than 80 percent of which are owned and operated by independent franchisees and licensees. Taco Bell plans to have 8,000 restaurants by the year 2023 which they anticipate will add an estimated 100,000 jobs nationwide. Currently, Taco Bell is operated by more than 350 franchise organizations proudly serving over 42 million customers each week.

Website: www.tacobell.comNumber of Locations: 7,000Headquarters: Irvine, CaliforniaParent Company: Yum! BrandsParent Stock Symbol: YUM (NYSE)Market Capitalization: $26 billion

Albor Restaurant Group is owned by a venture consisting of Alvarado Concepts, LLC and NJB Operations, Inc and was founded in 2015. Alvarado Concepts was founded in 1984 and current operates more than 140 locations spread across the Yum! Brands (Taco Bell, KFC and Pizza Hut). NJB Operations was founded in 1985 and currently operators more than 50 Taco Bell locations in Illinois and Wisconsin. Albor Restaurant Group current operates sixteen Taco Bell restaurants in the State of Wisconsin.

TENANTPROFILE:


LOCATION OVERVIEW

Oconomowoc is a city in Waukesha County, Wisconsin, United States. The name was derived from Coo-no-mo-wauk, the Potawatomi term for “waterfall.” The population was 15,712 at the 2010 census.

The city is continuing to focus on how to improve and expand its service its community, economy and diverse business base. Oconomowoc schools are served by the Oconomowoc Area School District (OASD). Elementary schools (grades pre-K through 4th) include: Greenland Elementary, Summit Elementary, Park Lawn Elementary, Meadow View Elementary, and Ixonia Elementary. Oconomowoc has two middle schools, Silver Lake and Nature Hill Intermediate school, which serve students in 5th through 8th grades. These opened for the 2008–2009 year, replacing the older Oconomowoc Middle School. As of the 2014–2015 school year, Oconomowoc High School had 1,547 students.

Milwaukee is the largest city in Wisconsin and the 28th most populous city in the United States. Milwaukee is located on the southwestern shore of Lake Michigan. According to the 2010 U.S. Census, the City of Milwaukee had a population of 594,833 and the Milwaukee MSA had a population of 1,751,316.

Milwaukee and its suburbs are the home to the international headquarters of 13 Fortune 1000 companies, including Johnson Controls, Northwestern Mutual, Manpower Inc., Jefferson Wells, Kohl’s, Harley-Davidson, Rockwell Automation, Fiserv, Inc., Hal Leonard, Wisconsin Energy, Briggs & Stratton, Joy Global, Bucyrus International, A.O. Smith, GE Healthcare Diagnostic Imaging and Clinical Systems and MGIC Investments. The Milwaukee metropolitan area ranks fifth in the United States in terms of the number of Fortune 500 company headquarters as a share of the population.

www.city.milwaukee.gov

LOCATION OVERVIEW:


DEMOGRAPHICS

DEMOGRAPHIC REPORT: Population 1 Mile 3 Mile 5 Mile

Total Population 1,018 15,277 40,895

Total Households 341 5,999 15,906

Income

Median Household Income $106,954 $80,948 $85,711

Average Household Income $133,648 $104,349 $112,215


Jimmy [email protected]

John FeeneySenior Vice [email protected]

3520 Lake Avenue, Suite 203Wilmette, IL 60091

www.bouldergroup.com

Documents

Taco Bell (Ground Lease) 1750 Summit Ave Bell (GL...Taco Bell plans to have 8,000 restaurants by the year 2023 which they anticipate will add an estimated 100,000 jobs nationwide