KFC 9 South Telshor - Las Cruces NM Packageimages3.loopnet.com/d2/KvVLxgeQBJY17JB03aBV8fe3nE... · The subject property is located at 435 South Telshor in Las Cruces NM. This KFCis

OFFERING MEMORANDUM

KFCLAS CRUCES, NM

CONFIDENTIALITY AND DISCLAIMER

The 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.

LAS CRUCES, NM

KFC

Marcus & 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 YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NON-ENDORSEMENT NOTICE

NET LEASED DISCLAIMER

KFCLAS CRUCES, NM

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.

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RECENT SALES

Section 4 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

KFC

KFCLAS CRUCES, NM

PRICING AND FINANCIAL ANALYSIS

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Annualized Operating Data

435 South TelshorLas Cruces, NM 88011

Price $1,067,000

Down Payment 100% / $1,067,000

Rentable Square Feet 2,397

Price/SF $445.14

CAP Rate 6.00%

Year Built /Renovated 1985/2022

Lot Size 0.80 acres

Type of Ownership Fee Simple

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KFCLAS CRUCES, NM

Base Rent ($26.70/SF) $64,000

Net Operating Income $64,000

Total Return 6.00% / $64,000

Tenant Trade Name KFC

Ownership Private

Tenant Franchisee

Lease Guarantor Franchisee Guarantee

Lease Type Absolute Net

Roof and Structure Tenant Responsible

Lease Term 20 Years

Lease Commencement Date Close of Escrow

Rent Commencement Date Close of Escrow

Lease Expiration Date 20 Years

Term Remaining on Lease 20 Years

Increases 1.50% Annual

Options (3) 10 Year Options

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 Marcus & Millichap. Allrights reserved.

Tenant Summary

FINANCIAL OVERVIEW

6.75% RENT vs. SALES RATIO

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KFCLAS CRUCES, NM


Property Name KFC

Property Address 435 South Telshor

Las Cruces, NM 88011

Property Type Net Leased Restaurant Fast Food


Tenant Trade Name KFC

Ownership Private

Tenant Franchisee

Sales Volume $950,000+

Net Worth N/A

Lease Guarantor Franchisee Guarantee

Credit Rating N/A

Valueline Financial Strength N/A

Rating Agency N/A

Stock Symbol N/A

Board N/A

Rank N/A

Lease Commencement Date Close of Escrow

Rent Commencement Date Close of Escrow

Lease Expiration Date 20 Years

Term Remaining on Lease 20 Years

Lease Type Absolute Net

Roof and Structure Tenant Responsible

Lease Term 20 Years

Year 1 Net Operating Income $64,000.00

Increases 1.50% Annual

Options to Renew (3) 10 Year Options

Options to Terminate No

Options to Purchase No

First Right of Refusal No

No. of Locations 5

Headquartered New Mexico

Web Site N/A

Franchisee Profile

Years in the Business 20+ Years

Other Concepts Owned Exclusive YUM! Brands Franchisee

TENANT OVERVIEW

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KFCLAS CRUCES, NM

PROPERTY DESCRIPTION

The subject property is located at 435 South Telshor in Las Cruces NM. This KFCis a 2,397 square foot freestanding building on approximately 0.80 acre parcel. This investment is a 20 year absolute triple net lease with an experienced multi-unit, multi-state operator, 1.50% annual rental increases with (3) 10-year options to renew beyond primary lease term. The subject property was originally built in 1985 and will undergo a scheduled remodel in 2022. The Lease will be guaranteed by a 5 unit Franchisee Guarantee. The Population exceeds 146,000+ within 10 miles of the subject property.

Las Cruces, known as "The City of the Crosses", is the county seat of Doña Ana County, New Mexico. Las Cruces is the largest city in both Doña Ana County and southern New Mexico, second largest city in the State of New Mexico. Las Cruces is the economic and geographic center of the Mesilla Valley, the agricultural region on the floodplain of the Rio Grande which extends from Hatch to the west side of El Paso, Texas. Las Cruces is the home of New Mexico State University. The city's major employer is the federal government on nearby White Sands Test Facility and White Sands Missile Range. The Organ Mountains, 10 miles (16 km) to the east, are dominant in the city's landscape, along with the Doña Ana Mountains, Robledo Mountains, and Picacho Peak. Las Cruces lies 225 miles (362 km) south of Albuquerque, 48 miles (77 km) northwest of El Paso, Texas, and 46 miles (74 km) north of the Mexican border at Santa Teresa.

Immediate Trade Area includes: Mesilla Valley Mall, Super Walmart, Target, Home Depot, Walgreens, Sears, JC Penneys, Dillards, Office Max, Whataburger, Starbucks, Chili's, Applebee's, Village Inn, Wells Fargo, Burger King, Discount Tires, Jack in the Box, Red Lobster, Golden Corral, Pier 1 Imports, Petco, McDonald's, Bank of America, Staples, Bestbuy, FedEx, Big Lots and Hastings Entertainment Complex.

Investment Highlights

■ New 20 Year Lease Executed @ Close of Escrow

■ 6.75% RENT vs. Sales Ratio

■ 1.50% Annual Increases - 146,000 Population

■ Experienced YUM! Brands Franchisee

■ (3) 10 Year Renewal Options - Next to Mesilla Valley Mall

■ $950,000+ Store Sales

■ STRONG RETAIL TRADE AREA - 16,000+/31,000+ VPD (Cross Streets)

■ Next Interior/Exterior Remodel Scheduled for 2022

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KFCLAS CRUCES, NM


INVESTMENT OVERVIEW

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KFCLAS CRUCES, NM

The Offering

Property KFC

Property Address 435 South Telshor


Assessor's Parcel Number 02-20431

Zoning Commercial

Site Description

Number of Stories 1

Year Built/Renovated 1985 / 2022


Lot Size 0.80 acres

Type of Ownership Fee Simple

Parking Ample Onsite

Parking Ratio N/A

Landscaping Yes

Topography Basically Level

Construction

Foundation Concrete

Framing Wood Frame/Joist/Beam

Exterior Stucco/Tile

Parking Surface Asphalt/Concrete

Roof Metal

Mechanical

HVAC Central Heating and AC

Fire Protection Yes, Sprinklers

Utilities Standard; Water, Sewer, Electric

Interior Detail

Walls Wall Board

Ceilings Suspended

Floor Coverings Tile

Rest Rooms Yes, x2


PROPERTY SUMMARY

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Local Map Regional Map

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KFCLAS CRUCES, NM


AREA MAPS

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KFCLAS CRUCES, NM


AERIAL PHOTO

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KFCLAS CRUCES, NM

RECENT SALES

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KFC

KFC

KFC/Taco Bell

KFC

Burger King

Jack in the Box

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RECENT SALES

KFCLAS CRUCES, NM


RECENT SALES MAP

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Subject KFC KFC/TacoBell

KFC BurgerKing

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KFC BurgerKing

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Average Price per Square Foot

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RECENT SALES

Average Cap Rate

KFCLAS CRUCES, NM


CAP RATE AND PRICE PER SQUARE FOOT

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2

Subject Property

KFC

435 South Telshor


KFC

2504 East Highway 66

Gallup, NM 87301

KFC/Taco Bell

1410 West Main Street

Artesia, NM 88210

Comments17 Year Lease - 30 Store Franchisee Lease Guarantee

Comments

16 Year Lease - 30 Store Franchisee Lease Guarantee

Comments

New 20 Year Lease with 5 store Franchisee Lease Guarantee

Close of Escrow: 8/7/2015 Sales Price: $1,125,000

Rentable SF: 2,088 Down Payment: 40%

Year Built: 1992 CAP Rate: 6.00%

Price/SF: $539.00




Price/SF: $611.00

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Rentable Square Feet: 2,397 Sales Price: $1,067,000

Year Built/Renovated: 1985/2022 Down Payment: $1,067,000

CAP Rate: 6.00%

Price/SF: $445.14

RECENT SALES

KFCLAS CRUCES, NM


RECENT SALES

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4

5

KFC

1520 John Ben Shepperd

Odessa, TX 79761

Burger King

10903 Potranco Road

San Antonio, TX 78251

Jack in the Box

2208 Rankin Highway

Midland, TX 79701

Comments

Remaining Lease & Guarantee - N/A

Comments

15 Year Lease with 8 store Franchisee Guaranteee

Comments

7 Year Lease - Franchisee Lease Guarantee N/A




Price/SF: $458.00

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Price/SF: $656.00

RECENT SALES

KFCLAS CRUCES, NM


RECENT SALES




Price/SF: $592.00

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KFCLAS CRUCES, NM

DEMOGRAPHIC ANALYSIS

3 Miles 7.5 Miles 10 Miles

2000 Population 57,334 105,306 114,184

2010 Population 68,641 132,334 142,497

2014 Population 70,549 137,036 147,620

2019 Population 74,258 147,395 158,629

2000 Households 22,415 39,507 42,329

2010 Households 28,427 52,097 55,436

2014 Households 29,334 54,184 57,678

2019 Households 31,305 58,840 62,592

2014 Average Household Size 2.32 2.47 2.50

2014 Daytime Population 36,266 49,204 50,543

2000 Owner Occupied Housing Units 47.64% 58.37% 59.36%

2000 Renter Occupied Housing Units 44.11% 33.60% 32.42%

2000 Vacant 8.25% 8.04% 8.22%



2014 Vacant 6.33% 6.20% 6.29%



2019 Vacant 6.32% 6.07% 6.14%

$ 0 - $14,999 22.0% 18.3% 18.2%

$ 15,000 - $24,999 16.3% 14.7% 14.6%

$ 25,000 - $34,999 11.7% 11.0% 11.1%

$ 35,000 - $49,999 14.6% 15.6% 15.7%

$ 50,000 - $74,999 16.2% 17.0% 17.0%

$ 75,000 - $99,999 8.6% 10.4% 10.4%

$100,000 - $124,999 5.0% 5.7% 5.6%

$125,000 - $149,999 2.3% 3.2% 3.2%

$150,000 - $199,999 2.1% 2.4% 2.4%

$200,000 - $249,999 0.5% 0.7% 0.7%

$250,000 + 0.9% 1.1% 1.1%

2014 Median Household Income $35,086 $40,588 $40,661

2014 Per Capita Income $21,336 $22,648 $22,354

2014 Average Household Income $50,472 $56,369 $56,284

Demographic data © 2012 by Experian.

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KFCLAS CRUCES, NM


DEMOGRAPHIC REPORT

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Geography: 10 miles

Population

In 2014, the population in your selected geography is 147,619. The population has changed by 29.28% since 2000. It is estimated

that the population in your area will be 158,628 five years from now, which represents a change of 7.45% from the current year. The

current population is 49.13% male and 50.86% female. The median age of the population in your area is 33.5, compare this to the

Entire US average which is 37.3. The population density in your area is 469.99 people per square mile.

Households

There are currently 57,678 households in your selected geography. The number of households has changed by 36.26% since 2000.

It is estimated that the number of households in your area will be 62,591 five years from now, which represents a change of 8.51%

from the current year. The average household size in your area is 2.49 persons.

Income

In 2014, the median household income for your selected geography is $40,660, compare this to the Entire US average which is

currently $51,972. The median household income for your area has changed by 26.13% since 2000. It is estimated that the median

household income in your area will be $47,197 five years from now, which represents a change of 16.07% from the current year.

The current year per capita income in your area is $22,354, compare this to the Entire US average, which is $28,599. The current

year average household income in your area is $56,283, compare this to the Entire US average which is $74,533.

Race & Ethnicity

The current year racial makeup of your selected area is as follows: 75.11% White, 2.15% Black, 0.10% Native American and 1.58%

Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and

5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 57.70% of the current year

population in your selected area. Compare this to the Entire US average of 17.13%.

Housing

In 2000, there were 27,375 owner occupied housing units in your area and there were 14,953 renter occupied housing units in your

area. The median rent at the time was $402.

Employment

In 2014, there are 50,542 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed

that 62.73% of employees are employed in white-collar occupations in this geography, and 37.36% are employed in blue-collar

occupations. In 2014, unemployment in this area is 6.13%. In 2000, the average time traveled to work was 19.4 minutes.


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KFCLAS CRUCES, NM


SUMMARY REPORT

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The number of people employed in a given area per square mile.


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KFCLAS CRUCES, NM


EMPLOYMENT DENSITY

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Two-way, average daily traffic volumes.Traffic Count data © 2012 by TrafficMetrix. All rights reserved.

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KFCLAS CRUCES, NM


TRAFFIC COUNTS

* Traffic Count Estimate

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LAS CRUCES, NM

OFFERING MEMORANDUM

KFC

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Documents

KFC 9 South Telshor - Las Cruces NM Packageimages3.loopnet.com/d2/KvVLxgeQBJY17JB03aBV8fe3nE... · The subject property is located at 435 South Telshor in Las Cruces NM. This KFCis