M A R C U S & M I L L I C H A P Activity ID Z0380174 O F F E R I N … · 2018. 5. 8. · Taco Bell...

O F F E R I N G M E M O R A N D U M

T A C O B E L L / P I Z Z A H U T E X P R E S S

T A C O B E L L / P I Z Z A H U T E X P R E S S | 1 0 0 4 N O R T H 2 4 T H S T R E E T , P H O E N I X A Z 8 5 0 0 8

Ryan Sarbinoff

Arizona BOR

602-687-6700

M A R C U S & M I L L I C H A PActivity ID Z0380174

I N V E S T M E N T S U M M A R Y

Marcus and Millichap is pleased to present the sale of a 2,464 square

foot Taco Bell located in Phoenix, Arizona. Strategically placed on a

hard signalized corner, this Taco Bell operates as an Absolute NNN

Lease with Zero Landlord responsibilities. Phoenix is the fifth most

populous city in the U.S and population growth is up 8% in a 3-mile

radius from the subject property over the past 5 years.

Taco Bell is the nation's leading Mexican-inspired quick service

restaurant (QSR) brand. They serve made-to-order and customizable

tacos and burritos, among other choices, and is the first QSR

restaurant to offer American Vegetarian Association certified menu

items. Taco Bell and its more than 350 franchise organizations serve

over 42 million customers each week through nearly 7,000 locations

across the nation. Taco Bell is looking to go from a US to Global

powerhouse with expected growth to 9,000+ units in 40 countries by

2022.

Yum! Brands is ranked number 218 on the Fortune 500 list, with

revenues exceeding $6 billion in 2016. Other QSRs under the Yum

Brands include Pizza Hut and KFC.

I N V E S T M E N T H I G H L I G H T S

• Strategically Placed on a Signalized Hard Corner

• Healthy Rent to Sales Ratio

• Second Largest Taco Bell Franchisee in Phoenix, AZ

• Loop 202 (.25 Miles away) Over 300,000 Cars Per Day

• Population Growth Up 8% in 3-Mile Radius (5-year span)

• Absolute NNN Lease with Zero Landlord Responsibilities

• Arizona State Hospital and St. Luke’s Medical Center Nearby

Activity ID Z0380174

I N V E S T M E N T O V E R V I E W

O F F E R I N G S U M M A R Y

P R I C E $1,752,400

N O I $105,149

C A P R A T E 6%

P R I C E / S F $711.20

R E N T / S F $42.67

L E A S E T Y P E NNN

G R O S S L E A S A B L E A R E A ( G L A ) 2,464 SF

Y E A R B U I L T 2002

L O T S I Z E 0.61 ACRES

O F F E R I N G M E M O R A N D U M | T A C O B E L L 1 0 0 4 N o r t h 2 4 T H S t r e e t , P h o e n i x , A r i z o n a 8 5 0 0 8

L E A S E S U M M A R Y

Property Subtype Net-Leased Restaurant

Tenant Taco Bell

Rent Increases 10% Each Five-Year Period

Guarantor Franchise Guarantee

Lease Type NNN

Lease Commencement February 1, 2002

Lease Expiration January 31, 2022

Lease Term 20 Years

Term Remaining on Lease 3.9 Years

Renewal Options Two 5-Year Options

Landlord Responsibility None

Tenant Responsibility Maintenance, Insurance, Property Taxes

Right of First Refusal/Offer None


R E N T S C H E D U L E

Year Annual Rent Monthly Rent Rent/SF CAP Rate

Current $105,149 $8,762 $50.17 6.0%

2/01/2022-1/31/2027 $115,663 $9,639 $55.18 6.66%

2/01/2027-1/31/2032 $127,230 $10,603 $60.70 7.26%

L E A S E S U M M A R Y

P R O P E R T Y S U M M A R Y

Property Taco Bell

Address 1004 North 24th Street, Phoenix, AZ 85008

Price $1,752,400

Net Operating Income $105,149

CAP Rate 6%

Year Built 2002

Gross Leasable Area 2,464 SF

Zoning N/A

Type of Ownership Fee Simple

Lot Size 0.61Acres


T E N A N T P R O F I L E

Tenant Taco Bell

Lease Guarantor Westaco,Inc./ Mac Bells, LLC

Ownership Public (NASDAQ: YUM)

Years in Business 116 Years

Credit Rating B+

Number of Locations 45,084

Headquarters Louiseville, Kentucky

Website www.yum.com


T E N A N T O V E R V I E W

Westaco, Inc./Mas Bells, LLC is a franchisee of Taco Bell, the nation's leading

Mexican-inspired quick service restaurant. Taco Bell was founded in 1962 and

has grown to nearly 7,000 restaurants in the U.S. and there are thousands more

outside of the U.S. Taco Bell is one of the brands operating under YUM

CORPORATION, a publicly traded company on the NY stock exchange.

Based in Scottsdale, Arizona, Westaco Inc./Mas Bells LLC owns and operates 47

Taco Bell restaurants. They are the second largest Taco Bell franchisee in the

Phoenix metro area. Also have locations in Maricopa, Casa Grande, Gila Bend

and Flagstaff. Several locations are multi-brand restaurants that combine Taco

Bell with Pizza Hut or Long John Silvers. Westaco, Inc./Mas Bells, LLC is owned by

individuals who have worked in and operated Taco Bell restaurants for over 30

years.

T E N A N T P R O F I L E



L O C A T I O N



L O C A T I O N A E R I A L



1 Miles 3 Miles 5 Miles

POPULATION

2022 Projection 20,739 134,518 310,708

2017 Estimate 21,469 136,725 311,415

2010 Census 19,074 123,751 282,781

2000 Census 22,503 137,425 305,173

INCOME

Average $33,095 $49,343 $59,494

Median $21,358 $32,611 $37,072

Per Capita $9,991 $18,427 $23,402

HOUSEHOLDS

2022 Projection 5,955 51,082 124,574

2017 Estimate 5,824 49,188 120,222

2010 Census 5,387 45,551 111,098

2000 Census 5,604 46,174 112,033

HOUSING

2017 $98,969 $160,026 $199,638

EMPLOYMENT2017 Daytime Population

26,360 245,237 633,703

2017 Unemployment

6.24% 5.12% 5.09%

2017 Median Time Traveled

28 24 24

RACE & ETHNICITY

White 47.31% 55.72% 57.29%

Native American 0.12% 0.20% 0.22%

African American 8.42% 8.18% 9.60%

Asian/Pacific Islander

0.76% 1.69% 2.29%

A R E A D E M O G R A P H I C S




Cap rates shown above are representative of deals that closed between

1Q2016 and 2Q2017. Actual yields will vary by location, tenant, lease terms

and other considerations. Locations and credit ratings sourced from

CreditNtell for public companies and lcompany websites for private

companies.

* For transactions closed in 2016

Sources: CoStar Group, Inc.; CreditNtell; company sources

Brand Credit Rating Locations

Auto Parts

Bridgestone/Firestone A 1,600

O'Reilly Auto Parts BBB+ 4,712

AutoZone BBB 5,839

Advance Auto Parts BBB- 5,185

Pep Boys BB+ 804

Dollar Stores

Dollar General BBB 13,205

Dollar Tree / Family Dollar BB+ 14,284

General Retail

Wal-Mart AA 11,593

Sherwin-Williams A 4,180

AT&T BBB+ 16,000

Verizon Wireless BBB+ 2,330

Mattress Firm B+ 3,482

Office Depot/Max B- 1,441

Pharmacies

CVS BBB+ 9,987

Walgreens BBB 8,185

Rite Aid B 4,547

Quick Service Restaurants

Dairy Queen AA 4,800

Starbucks A- 25,085

Chipotle BBB+ 2,250

McDonald's BBB+ 36,899

Yum Brands BB 43,085

Burger King B+ 20,351

Wendy's B 6,503

Carl's Jr./Hardee's B- 3,000

Fast Casual

Chili's BBB- 1,652

Darden Restaurants BBB- 1,541

Red Lobster BBB- 700

Bloomin’ Brands BB 1,270

Applebee's B 2,033

Ruby Tuesday B- 546

N A T I O N A L S I N G L E - T E N A N T O U T L O O K


Net Leased DisclaimerMarcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this

information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the

accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase.

This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due

diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value

of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the

suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents

related to the property and tenant. While the tenant’s past performance at this 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, Buyer 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 Buyer may be able to negotiate with a potential replacement tenant

considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising

out of your investigation and/or purchase of this net leased property.

Confidentiality and DisclaimerThe 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 Marcus & Millichap

and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap 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. The information contained in this Marketing Brochure has been obtained from sources we

believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation

regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take

appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus &

Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or

name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,

service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.


M A R C U S & M I L L I C H A P Activity ID Z0380174 O F F E R I N … · 2018. 5. 8. · Taco Bell...

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