TACO BELL - Matthews · • Taco Bell is the Largest Mexican Food Franchise - With over 6,500 restaurants, Taco Bell generates over $6.2B in revenue annually • Corporate Guarantee

TACO BELL 5960 CENTRAL FLORIDA PKWY, ORLANDO, FL 32821

OFFERING MEMORANDUM

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R E T A I L A D V I S O R S

Matthews Retail Advisors

CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Taco Bell located at 5960 Central Florida Pkwy, Orlando, FL 32821 (“Property” ) . I t has been prepared by Matthews Retai l Advisors . This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors . The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

EXCLUSIVELY LISTED BY:

Table of ContentsPRICING & FINANCIAL ANALYSIS

Investment Highlights ................................................... 2Executive Summary ..................................................... 3Company Overview ................................................... 4

PROPERTY DESCRIPTIONPhysical Description ..................................................... 6Birds Eye .................................................................... 7Regional Map/Local Map ............................................ 8Tenant Map ................................................................ 9

DEMOGRAPHICSCity Overview | Orlando, FL ...................................... 12Demographics Report ................................................ 13

Justin BeckBroker of Record License No. BK3118299

Gary ChouDirector | Restaurant Practice Group DIRECT +1.310.919.5827 MOBILE +1.714.928.8016 [email protected] License No. 01911222

Kevin ChangAssociate DIRECT +1.310.919.5828 MOBILE +1.951.616.8918 [email protected] License No. 01976724

Matthews Retail Advisors

Pricing & Financial Analysis™

Taco Bell | MATTHEWS RETAIL ADVISORS | P. 2

STABILIZED INVESTMENT FOR PASSIVE INVESTORS

• Absolute NNN Investment - ZERO landlord responsibilities - tenant takes care of maintenance, taxes and insurance for the landlord making this an attractive and secure passive investment

• Stabilized Long-Term Investment - The current lease has 17 years remaining on its original 20 year lease

LEADING FAST-FOOD BRAND

• Taco Bell is the Largest Mexican Food Franchise - With over 6,500 restaurants, Taco Bell generates over $6.2B in revenue annually

• Corporate Guarantee - Yum! Brands (S&P: BBB) have over 41,000 underleveraged assets worldwide, generating approximately $41.5B in revenue annually

• Growth Driven Brand - Taco Bell is committed to drawing new business to its stores - Most recently, the brand introduced revolutionary concepts like delivering fast food and serving alcohol in urbanized areas

STRONG MARKET FOR QUICK SERVICE RESTAURANTS

• Tourist Destination - Orlando is known as “The Theme Park Capital of the World” with attractions such as Walt Disney World, Universal Studios Florida, and SeaWorld being the three biggest and most popular

• As the 26th largest metropolitan area in the Southern United States and the 3rd largest city in the state of Florida, Orlando is home to over 2,134,411 year-round residents

Investment HighlightsEXCELLENT RETAIL LOCATION

• Trophy Location - Taco Bell benefits from frequent tourist visits to SeaWorld Orlando as the site is located in front of the park’s entrance

• Strong Retail Corridor - National retailers in the area include Wawa, Walgreens, Denny’s, KFC, Wendy’s, TGI Friday’s, Buffalo Wild Wings, Panera Bread, Starbucks and Firehouse Subs among others

• Heavy Traffic Counts with Great Visibility - Central Florida Pkwy supports over 30,000 VPD from commuter traffic and even more during peak tourist season as it can be easily seen and accessed by both WB and EB traffic

• Healthy Population Growth - Growth over the next 5 years is ac-celerating with 5.13% in a 1-mile radius, 9.09% in a 3-mile radius and 8.99% in a 5-mile radius

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS



Executive Summary

TACO BELL5960 CENTRAL FLORIDA PKWY ORLANDO, FL 32821

List Price ..........................................................................................$2,000,000CAP Rate - Current ...................................................................................4.00%Gross Leasable Area ........................................................................ 2,908 SFLot Size .........................................................................1.06 Acres (46,130 SF)Year Built ....................................................................................................... 2012

Annualized Operating DataMonthly Rent Annual Rent Rent/SF CAP Rate

Current - 10/29/2017 $6,666.67 $80,000 $27.51 4.00%

10/30/2017 - 10/29/2022 $7,333.33 $88,000 $30.26 4.40%

10/30/2022 - 10/29/2027 $8,066.67 $96,800 $33.29 4.84%

10/30/2027 - 10/29/2032 $8,873.33 $106,480 $36.62 5.32%

O1: 10/30/2032 - 10/29/2037 $9,760.67 $117,128 $40.28 5.86%

O2: 10/30/2037 - 10/29/2042 $10,736.73 $128,841 $44.31 6.44%

O1: 10/30/2042 - 10/29/2047 $11,810.41 $141,725 $48.74 7.09%

O4: 10/30/2047 - 10/29/2052 $12,991.45 $155,897 $53.61 7.79%

Tenant Summary

Tenant Trade Name Taco Bell

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type Ground Lease

Roof and Structure Tenant Responsible

Original Lease Term 20

Lease Commencement Date 10/30/2012

Lease Expiration Date 10/29/2032

Term Remaining on Lease 17.08

Increases 10% Every 5 Years

Options Four (4) 5-Year Options



Company Overview

Property Name Taco Bell

Gross Leasable Area 2,908 SF

Property Type Net Leased Quick Service Restaurant

Parent Company Trade Name Yum! Brands, Inc.

Ownership Public

Credit Rating BBB/Baa3

Rating Agency S&P/Moody’s

Revenue $13.28 Billion

Net Income $1.05 Billion

Stock Symbol YUM

Board NYSE

No. of Locations ±41,000

No. of Employees ±537,000

Headquartered Louisville, KY

Web Site http://www.yum.com/

Year Founded 1997

Yum! Brands, Inc., (NYSE: YUM), based in Louisville, Kentucky, is one of the world’s largest restaurant companies with over 41,000 restaurants in more than 125 countries and territories. Yum! Brands is ranked #216 on the FORTUNE 500 list with revenues of more than $13 billion and in 2014 was named among the 100 Best Corporate Citizens by Corporate Responsibility Magazine and one of the Aon Hewitt Top Companies for Leaders in North America. Our restaurant brands – KFC®, Pizza Hut® and Taco Bell® – are the global leaders of the chicken, pizza and Mexican-style food categories.

Since its spin-off from PepsiCo in 1997, Yum! Brands has become a truly global company going from approximately 20 percent of profits coming from outside the U.S. to almost 70 percent in 2014. It is a leader in international retail development, opening on average over five new restaurants per day outside the U.S. in 2014.

Yum! Brands has a portfolio of brands with leadership positions in China and other emerging markets, with a long runway for growth. It is the worldwide leader in emerging markets with more than 15,000 restaurants, nearly twice as many as the nearest competition. With only 2 restaurants per million people in the top 10 emerging markets, compared to 57 restaurants per million in the U.S., we are on the ground floor of global growth.

Source: http://www.yum.com/company/

Property Description

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Physical Description

THE OFFERING

Property Name ..........................................................................................Taco Bell

Property Address ................................................... 5960 Central Florida Pkwy

Orlando, FL 32821

Assessor’s Parcel Number .......................................... 28-24-13-6283-00-064

SITE DESCRIPTION

Number of Stories .............................................................................................One

Year Built .............................................................................................................2012

Gross Leasable Area (GLA) ....................................................................2,908 SF

Lot Size........................................................................... 1.06 Acres (46,261 SF)

Type of Ownership ...............................................................................Fee Simple

Parking ..................................................................................... 34 Surface Spaces

Parking Ratio...................................................................................11.70 : 1,000 SF

Landscaping ........................................................................................Professional

Topography ................................................................................... Generally Level

CONSTRUCTION

Foundation .......................................................................................Concrete Slab

Framing .............................................................................................................Wood

Exterior ............................................................................................ Painted Stucco

Parking Surface ............................................................................................Asphalt

Roof ........................................................................................................................Flat



Birds Eye

Central Florida Pkwy CPD: 30,000



Regional Map

Local Map



Tenant Map



Demographics

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City Overview | Orlando, FL

Orlando is a city in the U.S. state of Florida, and the county seat of Orange County. Located in Central Florida, it is the center of the Orlando metropolitan area, making it the 26th largest metropolitan area in the United States, the sixth largest metropolitan area in the Southern United States, and the third largest metropolitan area in the state of Florida.

The City of Orlando is nicknamed “The City Beautiful” and its symbol is the fountain at Lake Eola. Orlando is also known as “The Theme Park Capital of the World.” Orlando’s famous attractions form the backbone of its tourism industry: Walt Disney World Resort, located approximately 21 miles (34 km) southwest of Downtown Orlando in Lake Buena Vista, opened by the Walt Disney Company in 1971; the Universal Orlando Resort, opened in 1999 as a major expansion of Universal Studios Florida;SeaWorld; Gatorland; and Wet ‘n Wild. With the exception of Walt Disney World, most major attractions are located along International Drive. The city is also one of the busiest American cities for conferences and conventions.




Demographics ReportPopulation 1-Mile 3-Mile 5-Mile2020 Projection 5,866 46,278 137,3152015 Estimate 5,580 42,422 125,9922010 Census 5,330 38,079 113,5212000 Census 4,920 26,870 80,018Growth 2015-2020 5.13% 9.09% 8.99%Growth 2010-2015 4.68% 11.41% 10.99%Growth 2000-2010 8.35% 41.71% 41.87%

Households2020 Projection 2,859 16,624 47,5212015 Estimate 2,720 15,191 43,5762010 Census 2,601 13,594 39,2902000 Census 2,393 10,585 28,921Growth 2015-2020 5.10% 9.44% 9.05%Growth 2010-2015 4.59% 11.75% 10.91%Growth 2000-2010 8.69% 28.42% 35.85%

Income$0 - $15,000 11.25 10.03 10.01$15,000 - $24,999 12.21 9.42 10.46$25,000 - $34,999 11.76 14.41 13.41$35,000 - $49,999 21.43 18.19 15.35$50,000 - $74,999 23.05 20.11 19.54$75,000 - $99,999 11.36 12.09 11.92$100,000 - $124,999 5.51 6.16 7.25$125,000 - $149,999 1.25 2.48 3.59$150,000 - $199,999 1.43 3.33 3.85$200,000 - $249,999 0.22 1.05 1.39$250,000 - $499,999 0.40 1.89 2.37$500,000+ 0.11 0.84 0.872015 Est. Average Household Income $52,850 $66,778 $71,0722015 Est. Median Household Income $45,340 $48,308 $50,985

Matthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.Matthews.com

TACO BELL5960 Central Florida PkwyOrlando, FL 32821OFFERING MEMORANDUM

™

Justin BeckBroker of Record License No. BK3118299

Gary ChouDirector | Restaurant Practice Group DIRECT +1.310.919.5827 MOBILE +1.714.928.8016 [email protected] License No. 01911222

Kevin ChangAssociate DIRECT +1.310.919.5828 MOBILE +1.951.616.8918 [email protected] License No. 01976724

Documents

TACO BELL - Matthews · • Taco Bell is the Largest Mexican Food Franchise - With over 6,500 restaurants, Taco Bell generates over $6.2B in revenue annually • Corporate Guarantee