taco bell (ground lease) - home - blue west capital
TRANSCRIPT
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TA C O B E L L ( G R O U N D L E A S E )LO N G M O N T, C O
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DisclaimerThis confidential Offering Memorandum, has been prepared by Blue West Capital, LLC (“Blue West Capital”) for use by a limited number of qualified parties. This Offering Memoran-dum has been provided to you at your request based upon your assurances that you are a knowledgeable and sophisticated investor in commercial real estate projects and develop-ments. Blue West Capital recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property described herein as Taco Bell (the “Property”) and of all of the information provided herein related to the Property. By accepting this Offering Memorandum, you acknowledge and agree that you shall rely solely upon your own examination and investigation of the Property and you shall not rely on any statements made in this Offering Memorandum or upon any other materials, statements or information provided by Blue West Capital or its brokers.
Blue West Capital makes no guarantee, warranty or representation about the completeness or accuracy of the information set forth in this Offering Memorandum. You are responsible to independently verify its accuracy and completeness. Blue West Capital has prepared the information concerning the Property based upon assumptions relating to the general econ-omy, its knowledge of other similar properties in the market, and on other market assump-tions including factors beyond the control of the Blue West Capital and the Owner of the Property. Blue West Capital makes no representation or warranty as to either the accuracy or completeness of the information contained herein, and the information set forth in this Offer-ing Memorandum in not intended to be a promise or representation as to the future perfor-mance of the Property. Although the information contained herein is believed to be accu-rate, Blue West Capital and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further, Blue West Capital and the Property Owner disclaim any and all liability for any express or implied representations and warranties contained in, or for any omissions from, the Offering Memorandum and for any other written or oral communication transmit-ted or made available to you. Blue West Capital shall make available to you, as a qualified prospective investor, additional information concerning the Property and an opportunity to inspect the Property upon written request.
This Offering Memorandum and the contents are intended to remain confidential except for such information which is in the public domain or is otherwise available to the public. By accepting this Offering Memorandum, you agree that you will hold and treat Offering Memorandum in the strictest confidence, that you will not photocopy or duplicate it, or distribute it. You agree you will not disclose this Offering Memorandum or its contents to any other person or entity, except to outside advisors retained by you and from whom you have obtained anagreement of confidentiality, without the prior written authorization of Blue West Capital. You agree that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the Property. If you determine you have no interest in the property, kindly return the Offering Memorandum to Blue West Capital at your earliest convenice.
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EXCLUSIVELY LISTED BY:
Tom Ethington (Lead)Managing Partner
Investment Sales
720.966.1624
Zach Wright (Lead)Director
Net Lease Investment Sales
720.966.1628
Robert EdwardsManaging Partner
Investment Sales
720.966.1630
Brandon GayeskiAssociate Advisor
Investment Sales
720.966.1627
Table of Contents
INVESTMENT HIGHLIGHTS
INVESTMENT OVERVIEW
AERIAL
PROPERTY PHOTOS
SITE PLAN
MAPS & DEMOGRAPHICS
LOCATION OVERVIEW
TENANT OVERVIEW
CONFIDENTIAL OFFERING MEMORANDUM
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InvestmentHighlights
33 E Ken Pratt Blvd, Longmont, CO 80504
• Long term Taco Bell ground lease with approximately 24 years remaining
• 10% rental escalations every five years
• Located within the Denver MSA in prestigious Boulder County
• Positioned at a signalized entrance to Harvest Junction which is a 367,000+ SF power center that is anchored by Dick’s
Sporting Goods, Best Buy, Ross Dress for Less, Bed Bath & Beyond, Marshalls, Lowe’s and Walgreens
• Rapidly expanding area with significant projected population growth in excess of 2.25% annually over the next five
years
• Brand new construction (2018)
• Zero landlord responsibilities
• Tenant is one of the largest Taco Bell franchisees and operates over 150 Yum! Brands restaurants
• Located along Ken Pratt Boulevard which is the primary east-west thoughfare in Longmont
• Over 65,000 people living within a three mile radius
• Average household incomes in excess of $95,000 within five miles
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Investment Overview
Address: 33 East Ken Pratt Blvd, Longmont, CO 80504
Purchase Price: $1,850,000
Cap Rate: 4.50%
Net Operating Income: $83,264
Rent Commencement: January 30, 2018
Lease Expiration: January 31, 2043
NOI Schedule: NOI Date Period Increase Cap Rate
$83,264 Current 1-5 4.50%
$91,590 2/1/2023 6-10 10% 4.95%
$100,749 2/1/2028 11-15 10% 5.45%
$110,828 2/1/2033 16-20 10% 5.99%
$121,907 2/1/2038 21-25 10% 6.59%
$134,098 2/1/2043 Option 1 10% 7.25%
$147,507 2/1/2048 Option 2 10% 7.97%
$162,258 2/1/2053 Option 3 10% 8.77%
$178,484 2/1/2058 Option 4 10% 9.65%
Rental Escalations: 10% Every Five Years in Primary Term & Options
Renewal Options: Four 5-Year
Lease Type: Ground Lease (No Landlord Responsibilities)
Tenant: Alvarado Concepts, LLC D/B/A Taco Bell
Building Size: 2,130 SF
Land Size: .94 Acres
Year Built: 2018
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Aerial
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Aerial
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Property Photos
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SitePlan - Harvest Junction
MAIN STREET NAILS
BRIGHT NOW!DENTAL
BRIGHT NOW!DENTAL
TOPPERS PIZZATOPPERS PIZZA
GOODTIMESBURGERS
GOODTIMESBURGERS
SUMOJAPANESE
RESTAURANT
SUMOJAPANESE
RESTAURANT
ADAMSBANK & TRUST
ADAMSBANK & TRUST
THE TWISTEDNOODLE
RED FROGCOFFEE
EXPRESS IT!
AMERICA’S BESTCONTACTS
PINOCCHIO’SRESTAURANT
APRICOT LANEBOUTIQUE
DENVERMATTRESS
THE WAXFACTORY
EMPLOYMENTSOLUTIONS
(Owned By Others)(Owned By Others)
Lot 4±0.963 Acres
S M
AR
TIN
ST
KEN PRATT BLVD (31,600 VPD),
S E
ME
RY
ST
S M
AIN
ST
(US
HW
Y 2
87)
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LocationMap
119
52
Lafayette
Erie
Longmont
Boulder
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Map/DemographicsOverview
TOTAL POPULATIONPOPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile 5,829
3 miles 65,378
5 miles 104,997
TOTAL HOUSEHOLDSPOPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile 2,121
3 miles 24,533
5 miles 39,731
MEDIAN HH INCOMEPOPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile $54,771
3 miles $65,047
5 miles $70,653
AVERAGE HH INCOMEPOPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile $74,626
3 miles $87,849
5 miles $95,129
DENVER
Longmont
Broomfield
Boulder
Thornton
Arvada
Centennial
Frederick
Altona
Brighton
Lochbuie
Watkins
Hudson
Louisville
Idaho Spring
Nederland
Allenspark
Englewood
Littletown
Lakewood
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Location Overview
Longmont is a Home Rule Municipality located in both Boulder and Weld County. Long-mont is located just north of the city of Boulder and is approximately 35 miles north of downtown Denver. Longmont is a part of the Denver MSA. Longmont has a population of over 93,000 people making it the 13th most populous municipality in the state of Colorado. The city has over 2,000+ acres of parks and is located almost 5,000 feet above sea lev-el. Due to its proximity to the Rocky Mountain National Park, Longmont is home to many hotels, restaurants, and other businesses that cater in part to the tourists visiting the park each year. The word “Longmont” comes from Longs Peak, a prominent mountain named for explorer Stephen H. Long that is clearly visible from Longmont, and “mont”, from the French word “montagne” for mountain.
Denver is the capital and most populous city of Colorado and is located just east of the front range of the Rocky Mountains. Denver is nicknamed the Mile High City because its elevation is exactly one mile above sea level, making it the highest major city in the United States. Denver is ranked as a Beta- world city by the Globalization and World Cities Re-search Network. With an estimated population of 693,060 in 2016, Denver is the 19th-most populous U.S. city. The Denver MSA had an estimated 2016 population of 2,853,077 and is the 19th most populous US MSA. In 2016, Denver was named the best place to live in the United States by U.S. News & World Report.
Denver is home to the Denver International Airport which is the 18th busiest airport in the world. Denver serves as a major hub for United Airlines, is the headquarters for Frontier Airlines and is the fastest-growing focus city for Southwest Airlines. Denver is served by five interstates which include I-25, I-225, I-70, I-270, and I-76. Denver is home to four pro-fessional sports teams which include the Denver Broncos, Colorado Avalanche, Colorado Rockies and Denver Nuggets. v
Denver is the largest city within 500 miles which has made it a natural location for storage and distribution of goods and services to the Mountain states, Southwestern states as well as Western states. Denver is the headquarters to Dish Network, Vail Resorts, Western Union, DaVita, Coors Brewing Company, Liberty Interactive, Level 3 Communications, Ball Corp., Envision Healthcare, CH2M Hill and many others. Denver also has a thriving tourism industry due to its proximity to the Rocky Mountains and numerous world-class ski resorts.
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TenantOverview
Alvarado Concepts LLC is a Denver-based Yum! Brands franchisee that operates approx-imately 150 Taco Bell, Pizza Hut, and KFC franchises in Colorado, California and New Mex-ico. Alvarado Concepts is based in Denver.
Taco Bell is an American fast food restaurant chain that is a subsidiary of Yum! Brands, Inc. The restaurants serve a variety of Tex-Mex foods that include tacos, burritos, quesadillas, nachos, novelty and specialty items, and a variety of “value menu” items. As of 2018, Taco Bell serves more than 2 billion customers each year at 7,000 restaurants, more than 80 percent of which are owned and operated by independent franchisees and licensees. Taco Bell was founded in 1962 and is headquartered in Irvine, CA.
Yum! Brands is an American fast food company and Fortune 500 corporation. Yum! op-erates the brands Taco Bell, KFC, Pizza Hut and WingStreet internationally. The company has over 45,000 restaurants located in 140 countries and territories. In 2017, Yum! Brands was named to the Dow Jones Sustainability North America Index. The company’s restau-rant brands – KFC, Pizza Hut and Taco Bell – are the global leaders of the chicken, pizza and Mexican-style food categories. Worldwide, the Yum! Brands system opens over sev-en new restaurants per day on average, making it a leader in global retail development. The company has four primary growth drivers which are distinctive, relevant brands; bold restaurant development; unmatched franchise operating capability; and unrivaled culture & talent.
The company is publicly traded on the New York Stock Exchange (YUM) with a market capitalization of approximately $30 billion. The company is headquartered in Louisville, KY and was founded in 1997.
COMPANY INFORMATION
Operator Number of Locations: 150+
Operator Headquarters: Denver, CO
COMPANY INFORMATION
Company Website: www.tacobell.com
Company Number of Locations: 7,000+
Company Year Founded: 1962
Company Headquarters: Irvine, CA
COMPANY INFORMATION
Parent Company Website: www.yum.com
Parent Company Number of Locations: 45,000+
Parent Company Stock Symbol: NYSE: YUM
Parent Company Market Capitalization: $28 Billion
Parent Company Year Founded: 1997
Parent Company Headquarters: Louisville, KY
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Tom Ethington (Lead)Managing Partner
Investment Sales
720.966.1624
Zach Wright (Lead)Director
Net Lease Investment Sales
720.966.1628
Robert EdwardsManaging Partner
Investment Sales
720.966.1630
Brandon GayeskiAssociate Advisor
Investment Sales
720.966.1627
720.989.1031
1062 DELAWARE STREET DENVER, CO 80204
BLUEWESTCAPITAL.COM