Taco Bell - EXP Realty Advisors

REP PHOTO
EXCLUSIVE OFFERING | $1,858,000 - 6.75% CAP
Taco Bell
229 Missouri Avenue, St. Robert, MO
EXP DALLAS
214.522.7200
JOE CAPUTO
[email protected]
BOB MOORHEAD
[email protected]
property. Built in 2004. 0.99 +/- acres | 2,415 +/- square feet
tenant. Lessee: K-Mac Enterprises, Inc. a Taco Bell Franchisee. Founded in 1964 and now owns 167 Taco Bell Location. K-Mac is owned by Brentwood
Associates, a private equity firm. K-Mac Enterprises 2011 Revenue: $215 million.
lease structure. Brand new, 14-year, absolute NNN lease with 1.0% annual rent increases.
location. Located on off-highway site of Interstate 44 (30,100 Cars / Day). Near Lowe’s & Wal-Mart Supercenter. Other area retailers include Buffalo Wild Wings,
Panera, and Family Dollar. Near Fort Leonard Wood Army Base, a basic training and advanced individual training site. St. Robert’s is a major road travel
stopping point to and from St. Louis, MO. Retail spending in the St. Robert trade area totaled $225 million in 2010, a 33.9% increase over 5 years.
Table of contents | Disclaimer
Taco Bell
229 Missouri Avenue, St. Robert, MO
Disclaimer
PAGE 1:
COVER
PAGE 2:
TABLE OF CONTENTS | DISCLAIMER
PAGE 3:
INVESTMENT | TENANT | LEASE OVERVIEW
PAGE 4:
PROPERTY PHOTO
PAGE 5:
AERIAL PHOTO
PAGE 6:
LOCATION OVERVIEW
PAGE 7-8:
LOCATION MAPS
PAGE 9:
DEMOGRAPHICS
SUBJECT PROPERTY
EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the
property located at 229 Missouri Avenue, St. Robert, MO by the owner of the Property
(“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller
and Agent make no representations or warranties as to the accuracy of the information
contained in this Offering Memorandum. The enclosed materials include highly confidential
information and are being furnished solely for the purpose of review by prospective
purchasers of the interest described herein. The enclosed materials are being provided
solely to facilitate the prospective investor’s own due diligence for which it shall be fully and
solely responsible. The material contained herein is based on information and sources
deemed to be reliable, but no representation or warranty, express or implied, is being made
by Agent or Seller or any of their respective representatives, affiliates, officers, employees,
shareholders, partners and directors, as to the accuracy or completeness of the information
contained herein. Summaries contained herein of any legal or other documents are not
intended to be comprehensive statements of the terms of such documents, but rather only
outlines of some of the principal provisions contained therein. Neither the Agent nor the
Seller shall have any liability whatsoever for the accuracy or completeness of the
information contained herein or any other written or oral communication or information
transmitted or made available or any action taken or decision made by the recipient with
respect to the Property. Interested parties are to make their own investigations, projections
and conclusions without reliance upon the material contained herein. Seller reserves the
right, at its sole and absolute discretion, to withdraw the Property from being marketed for
sale at any time and for any reason. Seller and Agent each expressly reserves the right, at
their sole and absolute discretion, to reject any and all expressions of interest or offers
regarding the Property and/or to terminate discussions with any entity at any time, with or
without notice. This offering is made subject to omissions, correction of errors, change of
price or other terms, prior sale or withdrawal from the market without notice. Agent is not
authorized to make any representations or agreements on behalf of Seller. Seller shall
have no legal commitment or obligation to any interested party reviewing the enclosed
materials, performing additional investigation and/or making an offer to purchase the
Property unless and until a binding written agreement for the purchase of the Property has
been fully executed, delivered, and approved by Seller and any conditions to Seller’s
obligations hereunder have been satisfied or waived. By taking possession of and
reviewing the information contained herein, the recipient agrees that (a) the enclosed
materials and their contents are of a highly confidential nature and will be held and treated
in the strictest confidence and shall be returned to Agent or Seller promptly upon request;
and (b) the recipient shall not contact employees or tenants of the Property directly or
indirectly regarding any aspect of the enclosed materials or the Property without the prior
written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be
copied or otherwise reproduced without the prior written authorization of Seller and Agent.
Listed in association with missouri broker of record:
Dutchman Realty, inc. | license #: 000005249
Investment overview
Taco Bell
229 Missouri Avenue, ST. Robert, MO
Lease overview
Initial Lease Term:
14-Years, Plus 4, 5-Year Options to Renew
Projected Rent Commencement:
January 2012
Projected Lease Expiration:
January 2026
Lease Type:
Absolute NNN | No Landlord Responsibility
Rent Increases:
1.0% Annually During Primary Term & Options
PRICE:
$1,858,000
CAP RATE:
6.75%
NET OPERATING INCOME:
$125,402
BUILDING AREA:
2,415 + Square Feet
LAND AREA:
0.99 + Acres
Annual Rent (Current):
$125,402
YEAR BUILT:
2004
Annual Rent Year 3:
$127,923
OWNERSHIP:
Fee Simple Interest
Annual Rent Year 6:
$131,799
OCCUPANCY:
100%
Annual Rent Year 9:
$135,792
Annual Rent Year 12:
$139,907
Annual Rent Year 14:
$142,719
Tenant overview
K-Mac Enterprises, Inc., a Missouri corporation , dba Taco Bell
K-Mac Enterprises, Inc. / Taco Bell
Franchisee: K-Mac, founded in 1964 and headquartered in Fort Smith, Arkansas, is a leading quick-service restaurant franchisee. Olympus Partners, a privateequity firm in Stamford, Connecticut, acquired majority control of K-Mac, then known as K-Mac Enterprises, Inc., in late 2004, when it had 144 stores. From late
2004 to 2011 K-Mac Enterprises opened 32 more restaurants and began doing business in several new states giving K-Mac Enterprises a total of 176 restaurants.
In March 2011 Brentwood Associates, a private equity firm based in Los Angeles, CA acquired K-Mac Holdings Corporation from Olympus Partners.
Today K-Mac is one of the largest Taco Bell franchisees in the country, operating 167 Taco Bell restaurants. The company also operates KFC Restaurants and
Golden Corral restaurants for a total of 190 stores. The company has a regional concentration in the South Central region of the U.S. with restaurants in
SUBJECT
Arkansas, Indiana, Missouri, Oklahoma, Tennessee, and Texas. In 2009 and 2010 the company had over $208 million and $215
million inPROPERTY
revenue respectively.
PRIOR
PANDA
EXPRESS EXPANSION
Taco Bell: Taco Bell is an American chain of fast-food restaurants based in Irvine, California. A subsidiary of Yum! Brands, Inc.,
whichTO
serves
American-adapted
Mexican food. Taco Bell serves tacos, burritos, quesadillas, nachos, other specialty items, and a variety of "Value Menu" items. Taco Bell serves more than 2
billion consumers each year in more than 5,800 restaurants in the U.S., more than 80 percent of which are owned and operated by independent franchisees.
Taco Bell is also present in the Dominican Republic, Puerto Rico, Guam, Aruba, Costa Rica, Chile, Colombia, Ecuador, Panama, and on AAFES military bases in
Japan, Germany, and Iraq.
3
Property Photo
Taco Bell
229 Missouri Avenue, St. Robert, MO
SUBJECT PROPERTY
4
Aerial photo
Taco Bell
229 Missouri Avenue, St. Robert, MO
St. Robert Center
Hidden Valley Plaza
TRADE AREA AERIAL PHOTO | 4 5
Location overview
Taco Bell
229 Missouri Avenue, St. Robert, MO
IMMEDIATE TRADE AREA
Taco Bell is located along Missouri Avenue, a spur of Interstate Highway 44. The
subject property is directly south of Interstate 44 (30,100 cars per day). Interstate
44 is a major road travel and shipping route for the midwest connecting St. Louis
with Oklahoma City. As a result of the proportion of travelers stopping in St. Robert,
the trade area has become densely developed with restaurants and hotel chains.
However, the sector south of the interstate (east bound), where the subject property
is located, has added the area’s newest tenants. These tenants are nationally
recognized brands such as Panera Bread and Buffalo Wild Wings.
The surrounding area benefits from two neighborhood shopping centers, and a WalMart Supercenter. This Wal-Mart is the only Wal-Mart within a 26 mile radius. The
two shopping centers; St. Roberts Center (80,000 SF) and Highland Village Plaza
serve the area with various regional and national tenants. These tenants include
Dollar Tree, Hibbett Sports, Radio Shack and Glick’s among others. The subject
property is also 0.8 miles from Freedom Elementary School (1,214 students).
Interspersed through-out the trade area are various hotel chains one would typically
find in a town located directly off an Interstate. The most notable of these brands
are Hampton Inn and Fairfield Inn. Additionally, the frontage road along Interstate
44 is home to national casual dining brands Cracker Barrel and Ruby Tuesday.
Also sharing the frontage view are several quick service restaurants including Pizza
Hut and Wendy’s.
ST. ROBERT, MO
St. Robert is a city in Pulaski County, Missouri with a population of 2,760. The city is
adjacent to the United States Army Maneuver Support Center of Excellence Fort
Leonard Wood. This military installation provides Basic Combat Training (BCT) for
most non-combat arms soldiers, and Advanced Individual Training (AIT) for MOS
(Military Occupational Specialty). The military presence has been a key positive
factor in the city’s in economic strength. One key indicator of the strong economy is
the sharp increase in retail sales within the City limits. In 2010, retail sales exceeded
$225 million, up from $168 million in 2005. The growth in retail sales is largely due
to the increase in commercial businesses in the St. Robert Blvd. area of the City.
Based on sales tax figures, the St. Robert economy was not negatively influenced
by the recession that impacted the rest of Missouri and the country, the commercial
and retail businesses in the area have in fact increased.
During this time many
new commercial and retail businesses and restaurants have chosen to locate in St.
Robert.
These retailers include Lowe's Home Improvement, Panera Bread, Buffalo Wild
Wings, Colton's Steakhouse, and Kum & Go Convenience Store.
OZARKS REGION
The Ozarks region encompasses the southern half of Missouri and extends into
northern Arkansas. This region contains ore deposits of lead, zinc, iron, and barite.
As a result the mining industry is a key economic driver for the area. Rolla is just
outside of an area commonly referred to as the Lead Belt. Approximately 315,000
of tons of lead are mined in this area providing the U.S. with 70% of its lead supply.
About 84% of the lead is used for lead–acid batteries, and a secondary smelter in
Boss, Missouri recycles lead–acid batteries. Another major consumer of Missouri
lead is Winchester Ammunition, located in nearby East Alton, Illinois.
Much of the area supports beef cattle ranching, and dairy farming is common across
the area. Dairy farms are usually cooperative affairs, with small farms selling to
corporate wholesalers who package products under a common brand name for
retail sales. Petroleum exploration and extraction also takes place in the Oklahoma
portion of the Ozarks, as well as in the eastern half of the Boston Mountains in
Arkansas. The logging and timber industries are also significant in the Ozark
economy with operations ranging from small family run sawmills to large commercial
concerns. Logging of both softwood and hardwood timber species on both private
land and in the National Forests has long been an important economic activity.
Tourism is the growth industry of the Ozarks as evidenced by the growth of the
Branson, Missouri, entertainment center celebrating the traditional Ozark culture.
Tourism provides an estimated annual economic impact of over $20 billion.
Poultry farming and food processing are significant industries throughout the region.
Tyson Foods and ConAgra Foods operate several hundred poultry farms and
processing plants throughout the Ozarks. Schreiber Foods has operations
throughout southern Missouri. The trucking industry is important to the regional
economy with national carriers based in the area including J. B. Hunt, ABF, and
Prime, Inc. Springfield remains an operational hub for BNSF Railway. Fortune 500
companies such as Walmart in Bentonville, Arkansas, Leggett & Platt, and O'Reilly
Auto Parts are based in the Ozarks. Walmart also has a distribution center near
Rolla that employs 1,100 people. Other companies with a significant presence in
the Ozarks region include Tacony Manufacturing, Graphics Packaging, Pretium
Packaging, Ace Manufacturing, Airfoil Technologies, CG Power Systems USA,
Cohen Architectural, Jahabow Industries, Inc., and Ozark Mountains Technologies.
These companies collectively employ over 1,400 people.
6
Location map
Taco Bell
229 Missouri Avenue, St. Robert, MO
7
Location map
Taco Bell
229 Missouri Avenue, ST. Robert, MO
8
Demographics
Taco Bell
229 Missouri Avenue, St. Robert, MO
Demographic snapshot
Radius
1 Mile
3 Mile
5 Mile
2016 Projection
2,944
12,828
27,155
2011 Estimate
2,552
11,270
24,387
2010 Census
2,427
10,771
23,514
Growth 2011-2016
15.40%
13.80%
11.30%
Growth 2010-2011
5.20%
4.60%
3.70%
Population:
2011 Households:
2016 Projection
1,058
4,741
8,561
2011 Estimate
912
4,144
7,496
2010 Census
865
3,953
7,163
Growth 2011-2016
16.00%
14.40%
14.20%
Growth 2010-2011
5.40%
4.80%
4.60%
Owner Occupied
424
1,983
3,206
Renter Occupied
488
2,160
4,290
2011 Avg Household Income
$49,691
$49,137
$51,813
2011 Med Household Income
$40,411
$39,405
$41,695
2011 Per Capita Income
$19,153
$18,786
$17,592
Income Less than $15,000
116
558
858
Income $15,000 - $24,999
110
576
929
Income $25,000 - $34,999
145
622
1,120
Income $35,000 - $49,999
187
830
1,552
Income $50,000 - $74,999
167
702
1,413
Income $75,000 - $99,999
119
539
953
Income $100,000 - $149,999
59
261
529
Income $150,000 - $199,999
4
34
98
Income $200,000+
5
22
45
INTERSTATE 44
2011 Households by Household Inc:
FORT LEONARD WOOD, US ARMY
9