offering memorandum 133 unit operator at well- established...

Gainesville, Florida

Offering Memorandum

Long-Term, Well-Established Pizza Hut Location

15-Year, Triple Net Lease with No Landlord Responsibilities

Three, Five-Year Renewal Options with 10 Percent Rental Increases

Every Five Years

Franchisee Operates 133 Pizza Hut Locations Throughout Central

Florida, Ohio, Indiana and Kentucky

Subject Property

133 Unit Operator at Well-

Established Location

CONFIDENTIALITY AND DISCLAIMER

NON-ENDORSEMENT NOTICE

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 Marcus & Millichap Real Estate Investment Services of Florida, Inc. (“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 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.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corpora-tion’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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NET LEASED DISCLAIMER

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 any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services of Florida© 2018. All rights reserved.

SUBJECT PROPERTY

Drive-Thru

Investment Highlights• 15-Year, Triple Net LeaseThe Pizza Hut/Wing Street located at 5004 N.W. 34th Street in Gainesville is a long-term, well-established location, which has a 15-year, triple net lease with no landlord responsibilities. There are more than seven years remaining on the lease.• Renewal Options and Rent IncreasesThere are three, five-year renewal options with 10 percent rental increases every five years throughout the base term and option periods.• Strong Franchise OperatorCFL Pizza, LLC operates 133 Pizza Hut restaurants in central Florida, including metro Orlando, Ocala Brevard and Volusia counties, Gainesville, as well as metro Cincinnati, including nearby Indiana and Kentucky.

Base Term Annual Rent PSF Cap Rate

7/1/2010-6/30/2015: $45,948 $33.98 -7/1/2015-6/30/2020*: $50,542 $37.38 6.52%7/1/2020-6/30/2025: $55,597 $41.12 7.17%

Option Periods Annual Rent PSF Cap Rate

7/1/2025-6/30/2030: $61,156 $45.23 7.89%7/1/2030-6/30/2035: $67,272 $49.76 8.68%7/1/2035-6/30/2040: $74,000 $54.73 9.55%

Lease SummaryTenant: Pizza HutWebsite: www.PizzaHut.comGuarantor: CFL Pizza, LLCLease Type: NNNLease Term: 15 YearsOption Periods: 3, 5-Year OptionsRental Increases: 10% Every 5 YearsRoof & Structure: TenantRent Commencement: 7/1/2010Lease Expiration: 6/30/2025

Overview5004 Northwest 34th Blvd, Gainesville, Florida 32605

Price: $775,000Cap Rate: 6.52%Rentable Square Feet: 1,352Annual Rent: $50,542Rent/Square Foot: $37.38Land Area: 0.39 AcresYear Built/Renovated: 1991/2010


*Current annual income through June 30, 2020

FINANCIAL OVERVIEW

https://www.pizzahut.com/

TENANT SUMMARY


CFL Pizza, LLC was formed in December 2009 with the acquisition of the Pizza Hut restaurants in central Florida, including metro Orlando, Ocala, Brevard and Volusia counties. In March 2012, they acquired six Pizza Hut restaurants in and around Gainesville, Florida.

In January 2015, they purchased the majority of the Pizza Huts in metro Cincinnati, including nearby Indiana and Kentucky.

Today, CFL Pizza, LLC operates 133 Pizza Hut locations, offering dine-in, carry out and delivery service, with more than 3,700 employees.

Pizza Hut is an American restaurant chain and international franchise, known for pizza and side dishes, it is now corporately known as Pizza Hut, Inc. and is a subsidiary of Yum! Brands, Inc. (NYSE: YUM), the world’s largest restaurant company. Pizza Hut has more locations in the world than any pizza company.

In 2015, the company had 8,599 Pizza Hut locations in the U.S., and 5,139 more locations in 92 other countries and territories, making up a total of 13,728 branches (restaurants or takeout’s, including 759 that are company-owned and 12,969 that are franchised and licensed) worldwide, excluding 1,903 locations in China, which are in the Yum! China division, and 432 locations in India, which are in the Yum! India division. Founded in 1958 in Wichita, Kansas, Pizza Hut now operates over 16,700 restaurants in more than 100 countries.

N.W. 34th Boulevard

AERIAL

North Central Florida YMCA


Shoppes of Northwood

Ridgway Village

Four Miles from the University of Florida,

Which in 2018, U.S. News & World Report Ranked as the Ninth

Best Public University in the United States

LOCAL & REGIONAL MAPS


MARKET OVERVIEW

OVERVIEW

GAINESVILLE

DEMOGRAPHICS

ECONOMY

METRO HIGHLIGHTS

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

The Gainesville metro, located in North Central Florida, is centrally

located between Miami and Atlanta and encompasses Alachua and

Gilchrist counties. The city of Gainesville is 70 miles southwest of

Jacksonville and 115 miles north of Orlando. The greatest driver to the

local economy is the University of Florida, which has an enrollment of

more than 50,000 students. As a result, the homeownership rate in the

metro is 55 percent, well below the national rate, as students have a

strong propensity to rent.

UNIVERSITY OF FLORIDA

The university contributes $8 billion to the Florida economy every year and

employs roughly 28,000 individuals.

COLLEGE-EDUCATED WORKFORCE

With the metro having the fifth largest university in the U.S. by enrollment, 39

percent of the population has a bachelor’s degree or higher, above the U.S. rate.

UF HEALTH

UF Health is the second largest employer in the Gainesville metro with a

workforce of 12,700 individuals.

▪ Nearly 28,000 individuals are employed through the University of Florida, the largest employer in the

Gainesville metro and the driving force of the local economy.

▪ The Gainesville region is home to the state’s greatest concentration of 18- to 44-year-olds along with

the highest number of individuals with advanced degrees, making the metro Florida’s youngest and

most educated area.

▪ The IT/software sector is growing in Greater Gainesville with companies ranging from human

engagement to game development. Companies include Mindtree, Sharpspring, Optym, Info Tech

and Mobiquity.

278K

2017POPULATION:

112K

2017HOUSEHOLDS:

31.6

2017MEDIAN AGE:

$47,700

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

37.8U.S. Median:

$56,3008.5%

Growth2017-2022*:

6.9%

Growth2017-2022*:


UNIVERSITY OF FLORIDA

The University of Florida (UF) has over 50,000 students enrolled and is responsible for contributing more than nine billion dollars annually to Florida’s economy. UF is one of 62 institutions of the Association of American Universities, the association of preeminent North American research universities, and the only AAU member university in Florida. The University is classified as a Research University with Very High Research by the Carnegie Foundation for the Advancement of Teaching. For 2018, U.S. News & World Report ranked Florida as the ninth best public university in the United States.

The university is accredited by the Southern Association of Colleges and Schools. It is the third largest Florida university by student population, and is the eighth largest single-campus university in the United States with 54,854 students enrolled. The University of Florida is home to sixteen academic colleges and more than 150 research centers and institutes. It offers multiple graduate professional programs on one contiguous campus, and administers 123 master’s degree programs and 76 doctoral degree programs in 87 schools and departments.

The University of Florida’s intercollegiate sports teams, commonly known as “Florida Gators”, compete in National Collegiate Athletic Association (NCAA) Division I and the Southeastern Conference (SEC). In their 111-year history, the university’s varsity sports teams have won 40 national team championships, 35 of which are NCAA titles, and Florida athletes have won 275 individual national championships. In addition, University of Florida students and alumni have won 126 Olympic medals including 60 gold medals.


DEMOGRAPHICS

POPULATION 1 MILE 3 MILES 5 MILES2010 Population 10,758 47,090 120,6922017 Population 11,208 49,091 125,6032022 Population 4,640 21,896 52,4802017 Male Population 5,208 23,250 60,0262017 Female Population 6,000 25,841 65,5772017 Median Age 37.8 38.6 27.4

RACE & ETHNICITY 1 MILE 3 MILES 5 MILESAmerican Indian, Eskimo 0.4% 0.3% 0.3%Asian 6.1% 5.7% 6.2%Black 16.0% 13.9% 18.7%Hawaiian/Pacific Islander 0.1% 0.1% 0.1%White 72.1% 75.2% 69.0%Other 2.0% 1.6% 2.2%Multi-Race 3.4% 3.4% 3.6%Hispanic Ethnicity 10.7% 8.8% 11.0%Not of Hispanic Ethnicity 89.3% 91.2% 89.0%

HOUSEHOLDS 1 MILE 3 MILES 5 MILES2010 Households 4,448 21,013 50,0362017 Households 4,640 21,896 52,4802022 Households 5,110 23,203 55,879

HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES2010 Avg Household Income $66,138 $75,055 $56,4092017 Avg Household Income $74,529 $83,441 $63,3742022 Avg Household Income $83,082 $93,733 $71,9592010 Med. Household Income $53,013 $52,060 $35,7702017 Med. Household Income $63,431 $62,945 $43,5772022 Med. Household Income $70,786 $71,519 $50,5912010 Per Capita Income $27,375 $33,532 $24,6102017 Per Capita Income $30,883 $37,255 $27,6122022 Per Capita Income $34,887 $42,469 $31,671

Or in Google Street View

Click to View in Google Maps

https://www.google.com/maps/place/5004+NW+34th+Blvd,+Gainesville,+FL+32605/@29.7001727,-82.3703566,3a,75y,326.67h,89.47t/data=!3m6!1e1!3m4!1snziSPV9kHCEAHd7Yu5o4cQ!2e0!7i13312!8i6656!4m5!3m4!1s0x88e8a4dc440c337d:0x9500e5a0e1353a76!8m2!3d29.700388!4d-82.3705952

https://www.google.com/maps/place/5004+NW+34th+Blvd,+Gainesville,+FL+32605/@29.7005221,-82.3729505,1010m/data=!3m1!1e3!4m5!3m4!1s0x88e8a4dc440c337d:0x9500e5a0e1353a76!8m2!3d29.700388!4d-82.3705952

The Wolfe Retail Group of Marcus & Millichap specializes in the sale of single-tenant properties and shopping centers and has successfully assisted clients in selling over 450 separate commercial properties with a market value exceeding $1.25 billion. Having closed sales in more than 40 states, our track record is evidence that we are one of the premier brokerage teams in the United States.

With our experience and background in various fields such as law and finance, we have proved to be invaluable to our clients, earning their trust and exceeding their expectations while best assisting them in their real estate transactions.

For more about the Wolfe Retail Group, or to view all of our available listings, visit www.WolfeRetailGroup.com

Marcus & Millichap (NYSE: MMI) has established itself as a leading and expanding investment real estate company with nearly 1,500 brokers in 78 markets throughout the United States and Canada. The foundation of our investment sales is the depth of our local market knowledge. Our 44-year history of maintaining investor relationships in local markets enables us to be the best information source and transaction service provider in North America.

About Marcus & Millichap

The Wolfe Retail Group has sold over

450 properties in more than

40 states

http://www.WolfeRetailGroup.com

Barry M. WolfeSenior Managing Director Investments

[email protected](954) 245-3493

Alan LipskyVice President Investments


Evan WhelanAssociate


Catie JacksonMarketing Coordinator


Angelica LinaresTransaction Coordinator


Subject Property

mailto:Evan.Whelan%40marcusmillichap.com?subject=

mailto:Angelica.Linares%40marcusmillichap.com?subject=

offering memorandum 133 unit operator at well- established...

Documents