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1 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Pizza Hut, Palm Springs Palm Springs, FL
Offering Memorandum
2 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Pizza Hut, Palm Springs Palm Springs, FL
Property Description
Investment Overview
Investment Highlights
❖ Palm Beach County, Florida Location---No State Income Tax
❖ 5+ Years Left on the Lease
❖ 10% rent increase October 2020
❖ Rent Bumps Every Five Years
❖ Proven 75-Unit Franchisee
❖ Corner Location with 0.84 Acres
❖ Fortis College Campus and St. Luke's Catholic School are within a Short Walk
❖ No Landlord Responsibilities: Absolute Net Lease
Pizza Hut is an NNN-leased property located on an easily-accessible intersection in Palm Springs, Florida. The property was built in 1998 on 0.84 acres, has ample parking and a new 20-year lease that was signed in 2005. To the south of the property are Enterprise Rent-A-Car and Saint Luke Catholic School, and to the north is Fortis College, all of which are within a short walk to the property.
3 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
About Palm Springs Charter:
Palm Springs Expansion:
Since early 1998, the Village council’s plan has been moving forward at a brisk rate. The boundaries of the village are expanding to include Congress Avenue southbound to Lake Worth Road, west on Lake Worth Road to Military Trail, Military Trail, on the east side to Forest Hill Boulevard, east on Forest Hill Boulevard to Florida Mango Road, then south along the west side of Florida Mango to 10th Avenue North. The village’s current population is approximately 19,769 and primarily consists of families with young children, who take full advantage of the many youth programs available.
Long-Range Plans:
The long-range plans of the village and its council are to preserve the quality of life and high level of services, which have been the cornerstones of the village since its inception. In some communities, the children grow up and move away. In Palm Springs, the children grow up and move next door. The residents of Palm Springs can continue to look to the village employees and the Village Council for dedicated commitment to making the village “a great place to call home."
4 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Pizza Hut, Palm Springs Palm Springs, FL
Property Description
PROPERTY SUMMARY
The Offering
Property Pizza Hut, Palm Springs Property Address 2800 South Congress Avenue
Palm Springs, FL 33461 Assessor’s Parcel 70-46-44-17-03-000-0240
Site Description
Number of Stories 1
Year Built/Renovated 1988/2005 Rentable Square Feet Lot Size 2,639 Lot Size 0.84 Type of Ownership Fee Simple Topography Flat
5 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Property Description
Pizza Hut, Palm Springs
Palm Springs, FL
Area Maps
Local Map
6 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Regional Map
7 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Property Description
Pizza Hut, Palm Springs
Palm Springs, FL
8 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Property Description
Pizza Hut, Palm Springs Palm Springs, FL
Property Photos
9 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Property Photos
10 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Property Photos
11 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Property Photos
12 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Pricing and Financial Analysis
Pizza Hut, Palm Springs Palm Springs, FL
13 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Pricing and Financial Analysis
Pizza Hut, Palm Springs Palm Springs, FL
Financial Overview
Location
2800 South Congress Avenue
Palm Springs, FL 33461
Annualized Operating Data
Price $1,450,000
Rentable Square Feet 2,639
Price/SF
$549.45
CAP Rate 6.26%
Year Built /Renovated 1988/2005
Lot Size 0.84 Acres
Type of Ownership Fee Simple
Tenant Summary
Tenant Trade Name Pizza Hut
Ownership Private
Tenant Franchisee
Lease Guarantor Franchisee Guarantee
Lease Type Absolute Net
Roof and Structure Tenant Responsible
Lease Term 20 Years
Lease Commencement Date 10/01/2005
Rent Commencement Date 10/01/2005
Lease Expiration Date 09/30/2025
Term Remaining on Lease 5+ Years
Increases Every 5 Years
Options Two 5-Year Options
Rent Increase Annual Monthly
10/01/2015 – 09/30/2020 $90,750.00 $7,562.50
10/01/2020 – 09/30/2025 $99,825.00 $8,318.75
Option 1: 10/01/2025 – 09/30/2030 $109,808.00 $9,150.67
Option 2: 10/01/2030 – 09/30/2025 $120,788.00 $10,065.67
Base Rent ($34.39/SF) $90,750 Net Operating Income $90,750
Total Return 6.26% / $90,750
14 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Pricing and Financial Analysis
Pizza Hut, Palm Springs Palm Springs, FL
Tenant Overview
Property Name Pizza Hut, Palm Springs
Property Address 2800 South Congress Avenue, Palm Springs, FL 33461
Property Type Net Leased Restaurant Fast Food
Rentable Square Feet 2,639
Tenant Trade Name Pizza Hut
Ownership Private
Tenant Franchisee
Sales Volume
Net Worth
Lease Guarantor Franchisee Guarantee
Credit Rating
Value line Financial Strength
Rating Agency
Stock Symbol
Board
Rank
Lease Commencement Date 10/01/2005
Rent Commencement Date 10/01/2005
Lease Expiration Date 09/30/2025
Term Remaining on Lease 5+ Years
Lease Type Absolute Net
Roof and Structure Tenant Responsible
15 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Lease Term 20 Years
Year 1 Operating Income
Increases Every 5 Years
Options to Renew Two 5-Year Options
Options to Terminate None
Options to Purchase None
First Right Refusal None
No. of Locations
Headquartered
Web Site
Franchisee Profile
Years in the Business
Other Concepts Owned 75 Pizza Huts
16 | P a g e Nicolas Boucher P.A
Commercial Property Investment Adviser
Berkshire Hathaway Home Services EWM Realty
Direct: 305 788 8035
Pizza Hut is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes including salad, pasta, buffalo wings, breadsticks, garlic bread and desserts. Corporately known as Pizza Hut, Inc., it is a subsidiary of Yum! Brands, Inc., the world's largest restaurant company. As of 2019, there are currently 7,596 Pizza Hut restaurants in the United States, and the company oversees more than 11,000 pizza restaurants and delivery locations in 90 countries worldwide. Pizza Hut was founded in Wichita, Kansas in 1958.
The tenant and franchisee, American Huts, LLC is a privately help company based in Fairfield, New Jersey. This entity operates about 75 franchise restaurants with an annual revenue in excess of $25M and employs a staff of approximately 99 people.
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for inaccuracies. Any projections, opinions, assumptions or estimates used here in are for example purposes only and do not represent the current or future performance of the property. Berkshire Hathaway Home Services EWM Realty.
