9606 Rosedale Highway Bakersfield, CA 93312

absolute triple net-leased restaurant

Chris Peters | cpeters@capitalpacific.com [415] 274-2703 CA BRE#: 01339983

Zeb Ripple | zripple@capitalpacific.com [415] 274-2702CA BRE#: 01242540

Chris Kostanecki | ck@capitalpacific.com [415] 274-2701 CA BRE#: 01002010

Dave Lucas | dlucas@capitalpacific.com [415] 274-7390CA BRE#: 01389761

net-leaseD popeyes

RENTABLE SF . . . . . . . . . 2,650 SF

LAND AREA . . . . . . . . . . 0.92 Acres

YEAR BUILT . . . . . . . . . . 1990/2009/2012

Investment HighlightsPRICE: $1,937,700

CAP: 5.5%

THE STORY

NEWLY RE-LEASED CORPORATE POPEYES CHICKEN NET LEASED RESTAURANT BUILDING IN STRONG RETAIL CORRIDOR IN A GROWING AREA OF BAKERSFIELD, CA

INVESTMENT HIGHLIGHTS: > The building was originally constructed as a KFC building in 1990. The previous KFC tenant assigned the lease to AFC ENTERPRISES INCORPORATED in 2012. The building was completely rehabbed into the existing Popeyes Chicken prototype in 2013

> The building is roughly an acre and has 48 parking spaces including two designated ADA parking spaces

> The parcel has access on both Calloway Drive (23,400+ ADT) and Rosedale Highway (32,000+ADT)

> The property has monument signage on Rosedale Highway and also shares signage with CVS on Calloway Drive

> Location is a ground zero retail location in Bakersfield with major retailers within two blocks of the site including Target, Walmart, Home Depot, Lowes, and Tractor Supply among many other national retailers

> Drive thru restaurant building and recent Popeyes design/package build-out

> The subject property is in an infill area of West Bakersfield that has

experienced strong growth over the past decade.

LEASE HIGHLIGHTS:

> Corporate guaranty from AFC Enterprises Inc. (Corporate Popeyes)

> Absolute triple net lease – landlord has no responsibilities

> Fixed annual increases

> Two additional 5-year options to extend at fixed 5 year increases

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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Income & Expense

PRICE $1,936,000

Price Per Square Foot: $730.57

Capitalization Rate: 5.5%

Total Rentable Area (SF): 2,650

Year built: 1990/2009/2012

STABILIZED INCOME Per Square Foot

Scheduled Rent $40.22 $106,575

Effective Gross Income $40.22 $106,575

LESS Per Square Foot

Taxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

EQUALS NET OPERATING INCOME $106,575

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Tenant Name Sq. Ft. Current Rent Monthly Rent Yearly RentMonthly

Rent/FT

Yearly

Rent/FT

Cap Rate at

List Price

AFC Enterprises Inc. 2,650 12/4/2009 11/30/2013 $105,000 $8,750 $105,000 $3.30 $39.62

12/1/2013 11/30/2014 $106,575 $8,881 $106,575 $3.35 $40.22 5.50%5.50%5.50%5.50%

12/1/2014 11/30/2015 $108,184 $9,015 $108,184 $3.40 $40.82 5.59%5.59%5.59%5.59%

12/1/2015 11/30/2016 $109,796 $9,150 $109,796 $3.45 $41.43 5.67%5.67%5.67%5.67%

12/1/2016 11/30/2017 $111,443 $9,287 $111,443 $3.50 $42.05 5.76%5.76%5.76%5.76%

12/1/2017 11/30/2018 $113,115 $9,426 $113,115 $3.56 $42.68 5.84%5.84%5.84%5.84%

12/1/2018 11/30/2019 $114,812 $9,568 $114,812 $3.61 $43.33 5.93%5.93%5.93%5.93%

12/1/2019 11/30/2020 $116,534 $9,711 $116,534 $3.66 $43.97 6.02%6.02%6.02%6.02%

12/1/2020 11/30/2021 $118,282 $9,857 $118,282 $3.72 $44.63 6.11%6.11%6.11%6.11%

12/1/2021 11/30/2022 $120,056 $10,005 $120,056 $3.78 $45.30 6.20%6.20%6.20%6.20%

12/1/2022 11/30/2023 $121,857 $10,155 $121,857 $3.83 $45.98 6.29%6.29%6.29%6.29%

12/1/2023 11/30/2024 $123,685 $10,307 $123,685 $3.89 $46.67 6.39%6.39%6.39%6.39%

12/1/2024 11/30/2025 $125,540 $10,462 $125,540 $3.95 $47.37 6.48%6.48%6.48%6.48%

12/1/2025 11/30/2026 $127,423 $10,619 $127,423 $4.01 $48.08 6.58%6.58%6.58%6.58%

12/1/2026 11/30/2027 $129,334 $10,778 $129,334 $4.07 $48.81 6.68%6.68%6.68%6.68%

12/1/2027 11/30/2028 $131,274 $10,940 $131,274 $4.13 $49.54 6.78%6.78%6.78%6.78%

12/1/2028 11/30/2029 $133,243 $11,104 $133,243 $4.19 $50.28 6.88%6.88%6.88%6.88%

Option 1 12/1/2029 11/30/2034 $146,568 $12,214 $146,568 $4.61 $55.31 7.57%7.57%7.57%7.57%

Option 2 12/1/2034 11/30/2039 $161,225 $13,435 $161,225 $5.07 $60.84 8.33%8.33%8.33%8.33%

Totals: 2,650 $106,575 $8,881 $106,575 $3.35 $39.62

Term

LEASE TERMS RENT SUMMARYTENANT INFO

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Rent Roll

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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Close Aerial

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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Aerial

5858 58Rosedale Highway

Hageman Road

Meacham Road

Enger Street

Riverlakes Drive

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Verd

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Coffe

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Patto

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Callo

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Fruitvale Jr. High School

Rosedale North Elementary

Centennial High School

Freedom Middle School

Patriot Elementary Discovery

Elementary

Vista West Continuation High School

NORTHWEST PROMENADE

RIVER LAKES VILLAGE

ROSEDALE VILLAGE

LOS ANGELES

29,000 DAILY 39,929 DAILY

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ROSEDALE HIGHWAY WIDENING PROJECT:The property is located on Rosedale Highway in Bakersfield. Rosedale Highway is currently being widened to accommodate the increasing traffic counts. The City of Bakersfield is in the process of acquiring a 527sf taking at the entrance to the property on Rosedale Highway. The taking will not affect access, the number of parking spaces, or the improvements at the property. The City of Bakersfield has also acquired a temporary construction easement across the property that will be utilized when the widening project occurs which is estimated to be within the next two to three years. The escrow for the permanent taking is scheduled to close April 9, 2014.

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Popeyes

Tenant

Popeyes was founded in 1992 as AFC Enterprises, Inc., and is a developer, operator, and franchisor of quick-service restaurants. Popeyes (or AFC Enterprises) operates under the tradenames Popeyes Louisiana Kitchen, and Popeyes Chicken & Biscuits. The Popeyes brand was created in 1972 in New Orleans, LA, and is now known worldwide, operating and franchising over 2,000 restaurants across the globe.

Popeyes is known for its Louisiana Heritage and authentic cuisine. The restaurant’s “New Orleans” style menu features a variety of regional items such as spicy chicken, chicken tenders, fried shrimp, and other seafood, as well as jambalaya, and red beans and rice.

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Photos

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POPEYE’S

Regional Map

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The city of Bakersfield, California, is the 9th largest city in California, and is the county seat of Kern County, the 3rd largest county in California by area. Boasting a population of 358,597, Bakersfield is roughly equidistant between Fresno and Los Angeles.

Bakersfield has a thriving and diverse economy whose industries include the extraction of natural gas and other energy, aerospace, mining, petroleum refining, manufacturing, distribution, food processing, and houses a number of corporate and regional headquarters. Among these many industries, Kern County is responsible for approximately 10% of the nation’s domestic oil production, making it the most productive in this industry in the United States.

The San Joaquin Valley is widely known for being highly productive agriculturally, and Kern County is a major contributor to its success. Kern County ranks 5th in the nation in terms of agricultural production, and includes major crops such as grapes, citrus, almonds, carrots, alfalfa, cotton, and roses.

Bakersfield is also seeing a great deal of growth in its manufacturing and distribution sector due to its prime location with easy access to ports in Los Angeles and Oakland, teamed with friendly business policies, the lowest sales tax in the state, and no local utility or inventory taxes. Among other products, Bakersfield now manufactures ice cream (at the world’s largest ice cream plant), central vacuums, highway paint, and stock racing cars.

Demographics Top Employers in Bakersfield

Bakersfield, CA

Population 1 Mile 3 Miles 5 Miles

2010 Population 8,596 82,030 195,2132013 Population 8,459 83,302 200,2312018 Population (Projection) 8,536 87,949 211,692

2013 Income

2013 Average Household Income $82,239 $101,057 $86,2422013 Median Household Income $68,042 $83,308 $65,581

Employer # of Employees (Approx.)

County of Kern 7,475

The Giumarra Companies 4,200

Grimmway Farms 3,500

Bolthouse Farms 2,000

Bakersfield Memorial Hospital 1,400

Copyright © 2014 [Capital Pacific Real Estate Brokerage Company]

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Copyright © 2014 [Capital Pacific Real Estate Brokerage Company]

CHRIS PETERS cpeters@capitalpacific.com | (415) 274-2703 CA DRE#: 01339983

ZEB RIPPLE zripple@capitalpacific.com | (415) 274-2702CA DRE#: 01242540

A unique HUMANRESULTS-DRIVEN client experience

DAVE LUCAS dlucas@capitalpacific.com | (415) 274-7390 CA DRE#: 01389761

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CHRIS KOSTANECKI ck@capitalpacific.com | (415) 274-2701 CA DRE#: 01002010