KFC
OFFERING MEMORANDUM
2000 STATE ROUTE 44NEW SMYRNA BEACH, FLORIDA 32168
ACTUAL SITE
Represented by:JUSTIN ZAHN
7825 East Gelding Drive, Suite 104Scottsdale, Arizona 85260
480.214.5088 x 102 – [email protected] | www.ciadvisor.com
In Association with Florida Local Broker:New England Commercial Brokerage, Inc.
INVESTMENTO V E R V I E WKFC
NEW SMYRNA BEACH, FLORIDA
LEASE: Brand New 20-Year Absolute NNN Lease with 5% Rental Escalations every 5 YearsTENANT: KBP Foods (the largest KFC franchisee in the U.S.) Operates 550+ Locations in 20 States and will Generate Sales in Excess of $500 Million in 2017 (FQSR, LLC is the Tenant on the Lease, Encompasses All Restaurant Locations) SEASONED LOCATION: Successfully Open & Operating for Decades with an Attractive 8.00% Rent-to-Sales Ratio!TRAFFIC COUNTS: Pad Site to a 200,000+ Sq. Ft. Publix Supermarket Anchored Shopping Center with Retailers such as Dollar Tree, Bealls Outlet, Big Lots, Pet Supermarket, etc. where Traffic Counts Exceed 35,000 CPD on SR-44DEMOGRAPHICS (10-MI): Total Population: 129,938 | Avg HH Income: $67,196
INVESTMENT H IGHL IGHTSNAME KFC
LOCATION 2000 State Road 44New Smyrna Beach, Florida 32168
MAJOR CROSS STREETS On SR-44, West of Mission Dr
TENANT FQSR, LLC DBA KBP FOODS
PURCHASE PRICE $1,810,000
CAP RATE 5.00%
ANNUAL RENT $90,500
GROSS LEASEABLE AREA 2,562 SF
RENTAL ESCALATIONS 5% every 5 Years
LEASE TYPE Absolute NNN
OWNERSHIP (Building & Land) Fee Simple
YEAR BUILT 1989
LOT SIZE ±0.65 Acre
LEASE EXPIRATION November 14, 2037
OPTIONS Two 5-Year Renewal Options
POINTS OF INTERESTRETAIL/SHOPPING/ENTERTAINMENTAdjacent to New Smyrna Beach Regional Center anchored by PublixSupermarket with retailers such as Dollar Tree, Bealls Outlet, Big Lots, PetSupermarket; nearby retailers include Winn-Dixie, The Home Depot, Walgreens,ABC Fine Wine & Spirits; 2 miles from Save-A-Lot, AMC Theatres, Dollar General;3 miles from Walmart; 4 miles west from the beach shoreHIGHER EDUCATION3 miles from Daytona State College – New Smyrna Beach/Edgewater Campus(Offering nursing, health occupations, science, computer, engineering, publicservice & occupational programs w/ nearly 2,000 students annually)HEALTH CARE (GENERAL MEDICAL & SURGICAL HOSPITAL)2 miles from Florida Hospital New Smyrna Beach (112 beds)
7825 EAST GELDING DRIVE | SUITE 104 | SCOTTSDALE, AZ 85260 | WWW.CIADVISOR.COMThe information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
COMMERCIAL INVESTMENT ADVISORS, INC.JUSTIN ZAHN | 480.214.5088 X 102 O | 402.730.6021 C | [email protected]
FINANCIALA N A L Y S I S
SUMMARYTENANT FQSR, LLC dba KBP Foods
LIST PRICE $1,810,000
LIST CAP RATE 5.00%
GROSS LEASABLE AREA 2,562 SF
YEAR BUILT 1989
LOT SIZE ±0.65 Acre
EXPENSE REIMBURSEMENT
This is an Absolute NNN lease. Tenant is responsible for all expenses.
FINANCING All Cash or Buyer to obtain new financing at Close of Escrow.
RENT ROLLTENANT INFO LEASE TERMS RENT SUMMARY
TENANT NAME SQ FT TERM INCREASE RENT ANNUAL INVESTOR RETURN
FQSR, LLC dba KBP Foods 2,562 Years 1-5: 11/15/17 to 11/14/22 Current $90,500 5.00%
Years 6-10: 11/15/22 to 11/14/27 5% $95,025 5.25%
Years 11-15: 11/15/27 to 11/14/32 5% $99,776 5.51%
Years 16-20: 11/15/32 to 11/14/37 5% $104,765 5.79%
5.39% AVG ANNUAL RETURN
RENEWAL OPTIONS 1st Option: 11/15/37 to 11/14/42 5% $110,003
2nd Option: 11/15/42 to 11/14/47 5% $115,503
K F C | N E W S M Y R N A B E A C H , F L O R I D A
7825 EAST GELDING DRIVE | SUITE 104 | SCOTTSDALE, AZ 85260 | WWW.CIADVISOR.COMThe information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
COMMERCIAL INVESTMENT ADVISORS, INC.JUSTIN ZAHN | 480.214.5088 X 102 O | 402.730.6021 C | [email protected]
TENANTO V E R V I E WKFC
NEW SMYRNA BEACH, FLORIDA
7825 EAST GELDING DRIVE | SUITE 104 | SCOTTSDALE, AZ 85260 | WWW.CIADVISOR.COMThe information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
COMMERCIAL INVESTMENT ADVISORS, INC.JUSTIN ZAHN | 480.214.5088 X 102 O | 402.730.6021 C | [email protected]
You can find out more about the Tenant by visiting their website: http://www.kbp-foods.com/
KBP Foods operates 550+ restaurants in 20 states and has Regional Vice Presidents in every major geographicalregion. The Corporate Office and Restaurant Support Center are located in Overland Park, Kansas.
The success KBP Foods has had with growth through acquisition is directly correlated to diligent selection criteria, prudent and responsible capitalstructure and industry leading operational talent. Ultimately giving our people significant opportunity to growth themselves personally, professionallyand financially.
LOT SIZE2,562 SF
(±0.65 Acre)
SURVEY
K F C | N E W S M Y R N A B E A C H , F L O R I D A
7825 EAST GELDING DRIVE | SUITE 104 | SCOTTSDALE, AZ 85260 | WWW.CIADVISOR.COMThe information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
COMMERCIAL INVESTMENT ADVISORS, INC.JUSTIN ZAHN | 480.214.5088 X 102 O | 402.730.6021 C | [email protected]
BIRD’S EYE VIEW F A C I N G E A S T
K F C | N E W S M Y R N A B E A C H , F L O R I D A
7825 EAST GELDING DRIVE | SUITE 104 | SCOTTSDALE, AZ 85260 | WWW.CIADVISOR.COMThe information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
COMMERCIAL INVESTMENT ADVISORS, INC.JUSTIN ZAHN | 480.214.5088 X 102 O | 402.730.6021 C | [email protected]
AERIAL
K F C | N E W S M Y R N A B E A C H , F L O R I D A
7825 EAST GELDING DRIVE | SUITE 104 | SCOTTSDALE, AZ 85260 | WWW.CIADVISOR.COMThe information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
COMMERCIAL INVESTMENT ADVISORS, INC.JUSTIN ZAHN | 480.214.5088 X 102 O | 402.730.6021 C | [email protected]
NEW SMYRNA BEACHHIGH SCHOOL
THE NEW SMYRNA BEACH-EDGEWATER CAMPUS OFFERS COLLEGE CREDIT, COLLEGE PREPARATORY, CONTINUING EDUCATION, ADULT HIGH SCHOOL, ADULT BASIC EDUCATION, GENERAL EDUCATION
DEVELOPMENT (GED)/COURSES. THE CAMPUS HAS EXPANDED ITS NURSING, HEALTH OCCUPATIONS,
SCIENCE, COMPUTER, ENGINEERING, PUBLIC SERVICE AND OCCUPATIONAL PROGRAMS WITH
NEARLY 2,000 STUDENTS A YEAR
FLORIDA HOSPITALA GENERAL MEDICAL & SURGICAL
HOSPITAL W/ 112 BEDS
CHISHOLM ELEMENTARY
READ-PATTILLO ELEMENTARY
AERIALAERIALZ O O M E D O U T
K F C | N E W S M Y R N A B E A C H , F L O R I D A
7825 EAST GELDING DRIVE | SUITE 104 | SCOTTSDALE, AZ 85260 | WWW.CIADVISOR.COMThe information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
COMMERCIAL INVESTMENT ADVISORS, INC.JUSTIN ZAHN | 480.214.5088 X 102 O | 402.730.6021 C | [email protected]
NEW SMYRNA BEACHMIDDLE SCHOOL
I‐9546,500CPD
NEW SMYRNA BEACH MUNICIPAL AIRPORT
SPORTS COMPLEX
NEW SMYRNA BEACH IS A CHARMING BEACH TOWN WITH 6
MILES OF WHITE SANDY SHORELINE
FLORIDA HOSPITAL
DAYTONA STATE COLLEGE
SMYRNA YACHT CLUB
SMYRNA DUNES PARK
AERIALAERIALC I T Y V I E W
K F C | N E W S M Y R N A B E A C H , F L O R I D A
7825 EAST GELDING DRIVE | SUITE 104 | SCOTTSDALE, AZ 85260 | WWW.CIADVISOR.COMThe information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
COMMERCIAL INVESTMENT ADVISORS, INC.JUSTIN ZAHN | 480.214.5088 X 102 O | 402.730.6021 C | [email protected]
LOCATIONO V E R V I E W
7825 EAST GELDING DRIVE | SUITE 104 | SCOTTSDALE, AZ 85260 | WWW.CIADVISOR.COMThe information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
COMMERCIAL INVESTMENT ADVISORS, INC.JUSTIN ZAHN | 480.214.5088 X 102 O | 402.730.6021 C | [email protected]
A city in Florida’s Volusia County, New Smyrna Beach islocated on the central east coast of the state, with theAtlantic Ocean to the east. The downtown section of thecity is located on the west side of the Indian River andthe Indian River Lagoon system. The Coronado BeachBridge crosses the Intracoastal Waterway just south ofPonce de Leon Inlet, connecting the mainland with thebeach on the coastal barrier island.
This charming beach town is surrounded by intriguinghistory, artistic talents, one-of-a-kind boutiques, localeateries and more than enough outdoor activities suchas fishing, sailing, motorboating, golfing, hiking, watersports of all kinds, including swimming, scuba diving,kitesurfing & surfing.
“The Top 15 World’s Coolest Surt Towns” - Travel &Leisure Magazine (2013)
“Top 10 Florida Beach Towns” – Dr. Beach (2013)
“One of the World’s Top 20 Surf Towns” – NationalGeographic (2012)
“#9 – Best Surf Towns” – Surfer (2009)
2017 DEMOGRAPHICS
3-MI 5-MI 10-MI
TOTAL POPULATION 17,629 43,593 129,938
POP. GROWTH 2017-2022 3.55% 5.84% 6.53%
2017 DAYTIME POP. 13,176 31,539 97,886
HH GROWTH 2017-2022 3.17% 5.71% 6.47%
2017 AVG HH INCOME $59,982 $64,523 $67,196
54 MILES TO ORLANDO
137 MILES TO TAMPA
KFCNEW SMYRNA BEACH, FLORIDA
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 Commercial
Investment Advisors, Inc. and should not be made available to any other person or entity without the written consent of Commercial Investment Advisors, Inc. 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. Commercial Investment Advisors, Inc. 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. Any projections, opinions, assumptions or estimates used in the Marketing Brochures are for example only and do not represent the current or future performance
of any property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Commercial Investment Advisors, Inc. has
not verified, and will not verify, any of the information contained herein, nor has Commercial Investment Advisors, Inc. conducted any investigation regarding these matters and
makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Like all real estate investments, all of these investment
carries significant risks. Purchaser and Purchaser’s legal and financial advisors must request and carefully review all legal and financial documents related to the properties
and tenants. While the tenant’s past performance at these locations 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, Purchaser 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 Purchaser may be able to negotiate with a potential replacement tenant considering the location of the property, and Purchaser’s legal ability to make alternate use of
the property. All potential buyers must take appropriate measures to verify all of the information set forth herein.
BY ACCEPTING THIS MARKETING BROCHURE YOU AGREE TO RELEASE CIA BROKERAGE COMPANY/COMMERCIAL INVESTMENT ADVISORS, INC. HOLD ITHARMLESS FROM ANY KIND OF CLAIM, COST, EXPENSE, OR LIABILITY ARISING OUT OF YOUR INVESTIGATION AND/OR PURCHASE OF ANY PROPERTY.
JUSTIN ZAHNVice PresidentO +1 480 214 5088 x 102C +1 402 730 [email protected]
FOR MORE INFORMATION:
CONFIDENTIALITYA G R E E M E N T