Offering Memorandum
PIZZA HUT335 E White Horse Pike • Galloway, NJ 08205
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 to
be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other
person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with
respect to the income or expenses for the subject property, the future projected financial performance of the
property, the size and square footage of the property and improvements, the presence or absence of contaminating
substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the
improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or
intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure
has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not
verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017
Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in
this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply
affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or
subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for
the 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.
PIZZA HUT
Galloway, NJ
ACT ID Y0280961
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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 will
not 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 before
completing 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 performance
of 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 to
your 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 legal
and 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 not
a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based
on 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 any
guarantors 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 in
whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting
his/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 a
replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential
replacement 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.
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TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01Offering Summary
Location Overview
Regional and Local Map
Aerial Photo
FINANCIAL ANALYSIS 02
Acquisition Financing
Sales Comparables
MARKET OVERVIEW 03
Market Analysis
Demographic Analysis
PIZZA HUT
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PIZZA HUT
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INVESTMENT
OVERVIEW
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EXECUTIVE SUMMARY
OFFERING SUMMARY
#
PIZZA HUT
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PIZZA HUT
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OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER# OF
EMPLOYEES *Spirit Hllween Sper Stores LLC
5,000
Spencer Gifts Holdings Inc 4,202
Atlanticare 2,523
Atlantcare Rgional Med Ctr Inc
1,119
Mainland Division 1,119
Dolce Seaview 650
Stockton Pac Box Office 550
Press of Atlantic City The 510
Bacharach Inst For Rhblitation 494
Galloway Twp School District 421
Computer Sciences Corporation
400
UPS 319
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2017 Estimate Pop 4,130 35,610 79,060
2017 Census Pop 4,191 35,415 78,104
2017 Estimate HH 1,488 12,662 27,653
2017 Census HH 1,489 12,474 27,082
Median HH Income
$73,713 $61,988 $58,884
Per Capita Income $35,409 $27,839 $27,020
Average HH Income
$98,278 $77,742 $75,367
* # of Employees based on 5 mile radius
OFFERING SUMMARY
Price $1,425,000
Net Operating Income $100,783
Capitalization Rate – Current 7.07%
Price / SF $387.76
Rent / SF $27.42
Lease Type NNN
Gross Leasable Area 3,675 SF
Year Built / Renovated 1991
Lot Size 0.82 acre(s)
FINANCING
Down Payment All Cash
Net Cash Flow 7.07% / $100,783
Cash on Cash Return 7.07%
PIZZA HUT
OFFERING SUMMARY
Personally Guaranteed by 16-Unit Operator
3,675 Single Tenant Building on 0.82 Acres
4 – Five Year Options
1.5% Annual Increases
10+ Years Remaining on Lease
INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to exclusively list for sale a 3,675 SF single tenant Pizza Hut located in Galloway, (Atlantic County)
New Jersey. Located on 0.82 acres, Pizza Hut has 10+ years remaining on their NNN lease. Pizza Hut has 4 - five year options
with 1.5% annual increase throughout the option periods. The Pizza Hut has been established in this location for 4+ years. Pizza
Hut is a subsidiary of Yum! Brands, which has a credit rating of Ba3 and a stable future outlook according to Moody's. The lease
is personally guaranteed by a 16-unit operator.
Galloway is a township located in Atlantic County, New Jersey. The subject property is approximately 12 miles northwest of Atlantic
City and approximately 90 miles southwest of New York City. Galloway shares its borders with the municipalities of Egg Harbor
City, Port Republic, Absecon, Brigantine, Pleasantville, and Bass River. The major roads and highway that pass through or near
Galloway are Route 30 (White Horse Pike), the Garden State Parkway, Atlantic City expressway, Route 9, Route 40, Route 87, CR-
50 and CR-322. Galloway is the largest municipality in New Jersey in terms of land area. New Jersey Transit provides bus service to
Atlantic City on bus routes 508, 554 and 559. The subject property is approximately 3 miles east of Atlantic City International
Airport.
Within a 5-mile radius of Galloway, the median household income is $58,884 among the 79,060 individuals who resides within a
5-mile radius of the subject property.
The asking price of $1,425,000 represents a 7.07% cap rate.
INVESTMENT OVERVIEW
7
12
TENANT PROFILES
PIZZA HUT
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Pizza Hut
Pizza Hut is an American restaurant chain who offers pizza,
pastas, buffalo wings, breadsticks and desserts. Pizza Hut was
created by two brothers who borrowed $600 dollars from their
mom to open up a pizza shop in Wichita, Kansas. Pizza Hut now
operates more than 16,000 stores around the world through their
corporate stores and franchisee locations. Pizza Hut has a
workforce of more than 350,000 employees in 100 countries.
Pizza Hut headquarters are located in Plano, Texas and is a
subsidiary of Yum! Brands, Inc. who also owns Taco Bell, KFC
and WingStreet. Yum! Brands is a public company whose stock
is traded on the New York Stock Exchange under the ticker
symbol: YUM. As of January 2017, Yum! Brand reported
revenues of $6.37 billion. Moody’s has given Yum! Brands a
credit rating of Ba3 with a stable future outlook.
General Information
Tenant Name Pizza Hut
Website www.pizzahut.com
Parent Company Yum! Brands Inc.
Headquartered Plano, TX
Rentable Square Feet 3,675 SF
Percentage of RBA 100.00%
Lease Commencement 9/29/2014
Lease Expiration 9/30/2029
No. of Locations 16,000 +
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CLOSE PROXIMITY TO:
335 E White Horse Pike, Galloway, NJ 08205
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEPIZZA HUT
PRICING AND VALUATION MATRIX
PROPERTY NAMEPIZZA HUT
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LOCATION OVERVIEW
#
335 E White Horse Pike, Galloway, NJ 08205
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEPIZZA HUT
PRICING AND VALUATION MATRIX
PROPERTY NAMEPIZZA HUT
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REGIONAL AND LOCAL MAP
AERIAL PHOTO
PIZZA HUT
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AERIAL PHOTO
PIZZA HUT
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PROPERTY PHOTO
PIZZA HUT
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PROPERTY PHOTO
PIZZA HUT
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PROPERTY PHOTO
PIZZA HUT
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PROPERTY PHOTO
PIZZA HUT
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PROPERTY PHOTO
PIZZA HUT
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SITE MAP
PIZZA HUT
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PIZZA HUT
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FINANCIAL
ANALYSIS
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PROPERTY SUMMARY
OFFERING SUMMARY
#
PIZZA HUT
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OFFERING SUMMARY
NOTES: Income is Based On October 1, 2018 Rent. Landlord Responsible for Roof, Structure, & Parking Lot.
MARCUS & MILLICHAP CAPITAL CORPORATION
CAPABILITIES
MMCC—our fully integrated, dedicated financing arm—is committed to
providing superior capital market expertise, precisely managed execution, and
unparalleled access to capital sources providing the most competitive rates and
terms.
We leverage our prominent capital market relationships with commercial banks,
life insurance companies, CMBS, private and public debt/equity funds, Fannie
Mae, Freddie Mac and HUD to provide our clients with the greatest range of
financing options.
Our dedicated, knowledgeable experts understand the challenges of financing
and work tirelessly to resolve all potential issues to the benefit of our clients.
National platform
operating
within the firm’s
brokerage
offices
$5.1 billion
total national
volume in 2016
Access to
more capital
sources than
any other firm
in the industry
Optimum financing solutions
to enhance value
Our ability to enhance
buyer pool by expanding
finance options
Our ability to enhance
seller control
• Through buyer
qualification support
• Our ability to manage buyers
finance expectations
• Ability to monitor and
manage buyer/lender
progress, insuring timely,
predictable closings
• By relying on a world class
set of debt/equity sources
and presenting a tightly
underwritten credit file
WHY MMCC?
Closed 1,651
debt and equity
financings
in 2016
ACQUISITION FINANCING
PIZZA HUT
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PIZZA HUT
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MARKET
OVERVIEW
MARKET OVERVIEW
OVERVIEW
SOUTHERN NEW JERSEY
Southern New Jersey encompasses the counties of Burlington, Camden,
Gloucester, Atlantic, Salem, Cumberland and Cape May. The region is
home to 1.9 million residents. Camden and Burlington counties account
for approximately half of the market’s population. The eastern coast is
largely a resort area, while the western portion has the highest population
density and contains a well-developed transportation infrastructure.
Once reliant on the agricultural industry, Southern New Jersey now has an expanding number of
businesses in the professional and business services sector, consisting largely of small businesses with
less than 15 workers.
The services sector employs a large portion of the labor force, forming the backbone of the local economy
through hospitals, schools, hotels, business and social services, and entertainment facilities.
The region boasts a large tourism and recreation industry, especially in Atlantic City, where gaming
generates billions of dollars of revenue each year.
Fortune 500 company Campbell’s Soup is headquartered in the region.
1.9M
2016POPULATION:
690K
2016HOUSEHOLDS:
40.1
2016MEDIAN AGE:
$64,000
2016 MEDIAN HOUSEHOLD INCOME:
DEMOGRAPHICS
U.S. Median:
37.7U.S. Median:
$57,2002.8%
Growth2016-2021*:
2.4%
Growth2016-2021*:
1
ECONOMY
METRO HIGHLIGHTS
* Forecast
Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
PIZZA HUT
DIVERSIFIED EMPLOYMENT BASE
The region’s economy is moving away from agriculture to a more diversified
employment base that includes business services, hospitality and tourism.
FAA’S WILLIAM J. HUGHES TECHNICAL CENTER
The center is one of the nation’s premier aviation research, development, test
and evaluation facilities, employing engineers and technicians.
THREE DISTINCT AREAS IN ONE REGION
Atlantic and Cape May counties are tourism-based. Greater Philadelphia is the
main business center in the metro, while Cumberland and Salem counties are
primarily agricultural.
PROPERTY NAME
MARKETING TEAM
PIZZA HUT
DEMOGRAPHICS
Source: © 2017 Experian
Created on January 2018
POPULATION 1 Miles 3 Miles 5 Miles
2022 Projection
Total Population 4,224 37,526 82,518
2017 Estimate
Total Population 4,130 35,610 79,060
2010 Census
Total Population 4,191 35,415 78,104
2000 Census
Total Population 3,968 32,334 67,620
Current Daytime Population
2017 Estimate 2,191 33,312 81,225
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
2022 Projection
Total Households 1,548 13,441 29,087
2017 Estimate
Total Households 1,488 12,662 27,653
Average (Mean) Household Size 2.80 2.76 2.72
2010 Census
Total Households 1,489 12,474 27,082
2000 Census
Total Households 1,350 11,351 23,521
Occupied Units
2022 Projection 1,548 13,441 29,087
2017 Estimate 1,547 13,654 29,898
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
2017 Estimate
$150,000 or More 11.99% 7.71% 7.50%
$100,000 - $149,000 19.51% 14.53% 13.75%
$75,000 - $99,999 17.23% 16.07% 14.83%
$50,000 - $74,999 24.52% 20.99% 21.44%
$35,000 - $49,999 10.45% 14.09% 14.32%
Under $35,000 16.30% 26.61% 28.17%
Average Household Income $98,278 $77,742 $75,367
Median Household Income $73,713 $61,988 $58,884
Per Capita Income $35,409 $27,839 $27,020
HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure
$86,968 $77,059 $74,911
Consumer Expenditure Top 10 Categories
Housing $25,015 $22,172 $21,621
Transportation $16,098 $13,692 $13,456
Shelter $16,004 $14,231 $13,869
Personal Insurance and Pensions $8,594 $7,128 $6,686
Food $7,479 $6,717 $6,548
Health Care $5,366 $4,527 $4,411
Utilities $4,781 $4,280 $4,198
Entertainment $3,410 $2,880 $2,773
Education $3,271 $2,557 $2,305
Cash Contributions $2,238 $1,746 $1,685
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Population By Age
2017 Estimate Total Population 4,130 35,610 79,060
Under 20 23.62% 25.26% 25.63%
20 to 34 Years 16.07% 19.38% 20.82%
35 to 39 Years 5.10% 5.69% 5.72%
40 to 49 Years 13.55% 13.08% 12.42%
50 to 64 Years 25.60% 22.50% 20.64%
Age 65+ 16.06% 14.10% 14.76%
Median Age 44.13 39.71 38.10
Population 25+ by Education Level
2017 Estimate Population Age 25+ 2,898 24,108 52,001
Elementary (0-8) 2.59% 3.37% 3.97%
Some High School (9-11) 5.97% 8.62% 8.71%
High School Graduate (12) 33.27% 34.67% 34.58%
Some College (13-15) 21.17% 21.33% 21.36%
Associate Degree Only 9.50% 6.49% 6.35%
Bachelors Degree Only 20.23% 17.05% 16.26%
Graduate Degree 6.08% 6.75% 6.96%
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Income
In 2017, the median household income for your selected geography is
$58,884, compare this to the US average which is currently $56,286.
The median household income for your area has changed by 27.08%
since 2000. It is estimated that the median household income in your
area will be $68,138 five years from now, which represents a change
of 15.72% from the current year.
The current year per capita income in your area is $27,020, compare
this to the US average, which is $30,982. The current year average
household income in your area is $75,367, compare this to the US
average which is $81,217.
Population
In 2017, the population in your selected geography is 79,060. The
population has changed by 16.92% since 2000. It is estimated that
the population in your area will be 82,518.00 five years from now,
which represents a change of 4.37% from the current year. The
current population is 47.36% male and 52.64% female. The median
age of the population in your area is 38.10, compare this to the US
average which is 37.83. The population density in your area is
1,005.26 people per square mile.
Households
There are currently 27,653 households in your selected geography.
The number of households has changed by 17.57% since 2000. It is
estimated that the number of households in your area will be 29,087
five years from now, which represents a change of 5.19% from the
current year. The average household size in your area is 2.72 persons.
Employment
In 2017, there are 39,181 employees in your selected area, this is also
known as the daytime population. The 2000 Census revealed that
50.89% of employees are employed in white-collar occupations in
this geography, and 48.88% are employed in blue-collar occupations.
In 2017, unemployment in this area is 9.55%. In 2000, the average
time traveled to work was 24.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
54.57% White, 19.84% Black, 0.03% Native American and 10.11%
Asian/Pacific Islander. Compare these to US averages which are:
70.42% White, 12.85% Black, 0.19% Native American and 5.53%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 23.36% of the current year
population in your selected area. Compare this to the US average of
17.88%.
PROPERTY NAME
MARKETING TEAM
PIZZA HUT
Housing
The median housing value in your area was $198,781 in 2017,
compare this to the US average of $193,953. In 2000, there were
16,834 owner occupied housing units in your area and there were
6,687 renter occupied housing units in your area. The median rent at
the time was $655.
Source: © 2017 Experian
DEMOGRAPHICS
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