Pizza Hut - Opelika, AL

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OFFERING MEMORANDUMTriple Net (NNN) Investment Opportunity

3611 Pepperell Parkway | Opelika, AL 36801

Representative Image

2EXCLUSIVELY MARKETED BY:

© 2019 Sands Investment Group (SIG). The information contained in this ‘Offering Memorandum,’ has been obtained from sources believed to be reliable. Sands InvestmentGroup does not doubt its accuracy, however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is theresponsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine it’s accuracy andcompleteness. Any and all projections, market assumptions and cash flow analysis are used to help determine a potential overview on the property, however there is noguarantee or assurance these projections, market assumptions and cash flow analysis are subject to change with property and market conditions. Sands Investment Groupencourages all potential interested buyers to seek advice from your tax, financial and legal advisors before making any real estate purchase and transaction.

1501 Johnson Ferry Road, Suite 200Marietta, GA 30062

844.4.SIG.NNN

www.SIGnnn.com

In Cooperation with BoR: Andrew Ackerman – Lic. #C0001099750

MUNIR MEGHJANILic. # 366616

678.770.2101 | [email protected]

RAHILL LAKHANILic. # 340279


3TABLE OF CONTENTS


Area OverviewCity OverviewDemographics

Investment OverviewInvestment SummaryInvestment Highlights

Property OverviewLocation MapAerial MapRetail Map

Lease AbstractLease SummaryRent Roll

Pizza Hut | 3611 Pepperell Parkway | Opelika, AL 36801

Tenant OverviewTenant Profile

4INVESTMENT SUMMARYSands Investment Group is Pleased to Exclusively Offer For Sale the 2,520 SF Pizza Hut Located at 3611 Pepperell Parkwayin Opelika, Alabama. This Opportunity Includes a High Quality Tenant That is a Subsidiary of YUM! Brands, Inc., Which is theWorld’s Largest Restaurant Company, Providing For a Stable Investment.


OFFERING SUMMARY

PRICE $400,000

CAP 9.00%

NOI $36,000

PRICE PER SF $211.64

GUARANTOR Regional Franchisee (50+ Stores)

PROPERTY SUMMARYADDRESS 3611 Pepperell Parkway

Opelika, AL 36801

COUNTY Lee

BUILDING AREA 2,520 SF

LAND AREA 0.73 AC

BUILT 1976

5HIGHLIGHTS

Strong Regional Franchisee With Over 50Locations That Have Been With Pizza Hut ForOver 10 Years

As of December 30, 2011, YUM! Brands, Had aTotal Revenue of $12.62 Billion, a Net Income of$1.31 Billion, and a Net Worth of $1.82 Billion;YUM! Brands Has a BBB/STABLE Rating WithStandard & Poors

Nearby Tenants Include: Goodwill, Harbor Freight Tools,Sprint, Walmart, McDonald’s, Dollar General, Dollar Tree,Murphy USA and Planet Fitness

Located a Few Miles Away From Auburn University andEast Alabama Medical Center

Strong Demographics and Foot Traffic – There are 77,759Residents With an Average Household Income of $62,290Within a 5-Mile Radius of the Property3 Years Remaining on a Triple Net (NNN) Lease

With 2 x 5 Year Options

Pizza Hut is a Subsidiary of YUM! Brands, Inc.,the World’s Largest Restaurant Company

Surrounded by Residential Housing Such as Hilltop PinesApartments, Paces at the Estates and The Reserve atOpelika

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Mandarin House

Fur Buds

Clarke’s Automotive

Lewis Trucking and Towing

Pepperell Pkwy

Tempcopy St

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Pepperell Pkwy

9CITY OVERVIEW

Opelika, AL Economy Contemporary LifeOpelika has received several honors for its success inattracting new business. Opelika is located between theHyundai-Kia automobile manufacturing facilities with the KiaMotors manufacturing plant about 18 miles east and theHyundai Motors manufacturing plant about 67 miles west,which helps the city’s economy. Dinan Engineering, acompany known for the high-performance aftermarketproducts it makes for cars, relocated to Opelika, Alabama inApril of 2018. This addition brought over 130 jobs to Opelika.Aerocosta Global Systems Inc opened in Opelika in April of2018. Aerocosta is a NVOCC, Freight Forwarding and total3PL logistics company. Opelika's largest employer is the EastAlabama Medical Center, which pays around $119 million insalaries and benefits to more than 2,700 employees.

Opelika is full of fun activities for the whole family to enjoy.CyberZone is Opelika’s premiere family entertainment center,showcasing Lee County’s most challenging and entertaininglaser tag course. Opelika is famous for its Grand National GolfCourse, which was constructed on 600 acres surroundingLake Saugahatchee, with 32 holes located directly along thelake’s shorelines. Today, the complex’s three courses have allbeen ranked among the top 10 value courses in America byGolf Digest. Opelika is also known for many of its breweries,including its Red Clay Brewing Company. The Brewery takesits name from the rich natural red clay deposits found withinthe region and all of the brewery’s beers are named forreferences to the area’s culture and tradition, includingindigenous terms related to the local Muskogee tribe.

AUBURN UNIVERSITY GRAND NATIONAL GOLF COURSELEE COUNTY COURTHOUSE

Opelika is a city in and the county seat of Lee County in theeast central part of the state of Alabama. It is the principal cityof the Auburn-Opelika Metropolitan Area. According to the2017 estimate census, the population of Opelika was 30,240residents. The Auburn-Opelika MSA estimated population is158,991 residents. The city is also a park of the Columbus,Georgia metropolitan area, which is a region home to about501,649 residents. Today, the town’s population is on the risethanks to recent urban revitalization to its historic downtowndistrict and booms in retail and medicine. It attracts manyvisitors throughout the year due to golf tournaments held atits Grand National Golf Course and its location near theprestigious Auburn University, which attracts students from allover the world and has a total enrollment of 27,287 students.

Opelika | Lee County | Alabama

10DEMOGRAPHICS

Population

Average Household Income

31,165 77,759 111,954

$59,361 $62,290 $63,225

3-MILE 5-MILE 10-MILE

3-MILE 5-MILE 10-MILE

Pepperell Pkwy


Auburn University Regional Airport (21,817 VPD)

(39,491 VPD)

(34,614 VPD)

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COMPANY TYPENYSE: YUM

# OF LOCATIONS18,431+

FOUNDED1958

HEADQUARTERSPlano, TX

TENANT PROFILE

WEBSITEpizzahut.com

The company announced a rebrand that began on November 19, 2014. The rebrand was an effort to increase sales. Themenu was expanded to introduce various items such as crust flavors and eleven new specialty pies. Pizza Hut is split intoseveral different restaurant formats; the original family-style dine-in locations; store front delivery and carry-out locations;and hybrid locations that have carry-out, delivery, and dine-in options. Some full-size Pizza Hut locations have a lunch buffet,with "all-you-can-eat" pizza, salad, bread sticks, and a pasta bar.

Pizza Hut is an American restaurant chain and international franchise, known for its Italian-American cuisine menu including pizza and pasta, as well as side dishes and desserts. Thecompany has over 18,431 restaurants in more than 100 countries, making it the world's largestpizza chain in terms of locations. Pizza Hut is a subsidiary of Yum! Brands, Inc., which is one ofthe world's largest restaurant companies. Pizza Hut was founded in June 1958 by two WichitaState University students, brothers Dan and Frank Carney, as a single location in Wichita, Kansas.

12LEASE SUMMARY


TENANT Pizza Hut/Southeast Restaurant Corp

PREMISES A Building of Approximately 2,520 SF

LEASE COMMENCEMENT August 1, 2010

LEASE EXPIRATION August 1, 2022

LEASE TERM 3 Years Remaining

RENEWAL OPTIONS 2 x 5 Years

RENT INCREASES None

LEASE TYPE Triple Net (NNN)

PERMITTED USE Quick Service Restaurant

PROPERTY TAXES Tenant’s Responsibility

INSURANCE Tenant’s Responsibility

COMMON AREA Tenant’s Responsibility

ROOF & STRUCTURE Tenant’s Responsibility

REPAIRS & MAINTENANCE Tenant’s Responsibility

HVAC Tenant’s Responsibility

UTILITIES Tenant’s Responsibility

13RENT ROLL

Representative Images

TENANT NAME

SQUAREFOOTAGE

ANNUALBASE RENT

RENT PER SF

RENTAL INCREASE

LEASEBEGIN

LEASE END OPTIONS

Pizza Hut 2,520 SF $36,000 $14.28 None 08/01/2010 08/01/2022 2 x 5 Years


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

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only apreliminary level of interest in the subject property.

The information contained herein is not a substitute for a thorough due diligence investigation, and makes no warranty or representation, withrespect to the income or expenses for the subject property, the future projected financial performance of the property, the size and squarefootage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance withState and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of anytenant, or any tenant’s plans or intentions to continue its occupancy of the subject property.

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

By receipt of this Memorandum, you agree that this Memorandum and its contents are of confidential nature, that you will hold and treat it inthe strictest confidence and that you will not disclose its contents in any manner detrimental to the interest of the Owner. You also agree thatby accepting this Memorandum you agree to release Sands Investment Group and hold it harmless from any kind of claim, cost, expense, orliability arising out of your investigation and/or purchase of this property.

CONFIDENTIALITY AGREEMENT

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EXCLUSIVELY MARKETED BY:


1501 Johnson Ferry Road, Suite 200Marietta, GA 30062

844.4.SIG.NNN

www.SIGnnn.com

In Cooperation with BoR: Andrew Ackerman – Lic. #C0001099750

MUNIR MEGHJANILic. # 366616


RAHILL LAKHANILic. # 340279



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Pizza Hut - Opelika, AL