INVESTMENT OPPORTUNITY PIZZA HUT ACROSS FROM SANGERTOWN SQUARE MALL NEW HARTFORD,ST. NY PAUL, (UTICA) MN OFFERED AT: $933,000 | 5.75% CAP EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW TABLE OF CONTENTS EXECUTIVE SUMMARY 4 Offering Summary 5 Investment Highlights 6 Lease Summary & Rent Overview PROPERTY INFORMATION 8 Location Maps 9 Property Photos 11 Neighboring Tenants 13 Aerials TENANT OVERVIEWS 20 About Pizza Hut AREA OVERVIEW 22 New Hartford/Utica Overview 23 Demographics Confidentiality Agreement & Disclosures EXCLUSIVELY REPRESENTED BY RYAN BARR RYAN BENNETT Principal Principal 760.448.2446 760.448.2449 [email protected] [email protected] JENNIFER D. STEIN JDS Real Estate Services, Inc. NY Real Estate Broker Lic No. 10311205848 213.446.5366 Color Scheme RGB R:145 / G:0 / B:40 CMYK C:0 / M:100 / Y:65 / K:47 RGB R:119 / G:120 / B:123 CMYK C:0 / M:0 / Y:0 / K65 Fonts GOTHAM/ BLACK GOTHAM/ MEDIUM GOTHAM/ LIGHT PIZZA HUT | New Hartford (Utica), NY | 2 EXECUTIVE SUMMARY PIZZA HUT, NEW HARTFORD NY (UTICA) EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW • Offering Summary • Investment Highlights Lease Summary & Rent Overview -- OFFERING SUMMARY -- INVESTMENT HIGHLIGHTS Offering Price: $933,000 Net Operating Income: $53,628 Cap Rate: 5.75% Price/SF: $305 PROPERTY OVERVIEW 8400 Seneca Turnpike Address: New Hartford, NY 13413 Property Size: Approx 3,051 Sq. Ft. Land Size: 20,473 Sq. Ft. Ownership: Fee Simple Year Built: 2007 Lee & Associates is pleased to exclusively offer for sale to qualified investors the opportunity to purchase a 100% fee-simple interest in a Pizza Hut property located at 8400 Seneca Turnpike in New Hartford (Utica), New York (the “Property). Built in 2007, the Property consists of a 3,051-square-foot retail building that sits on an approximately 20,473-square-foot parcel. The subject property will be leased at close of escrow to GC Pizza Hut (see Tenant Overview pg 20) dba Pizza Hut on a 20-year absolute triple-net (NNN) lease with 10% increases every 5 years in the Primary Term and (4) 5-year Option periods. The Tenant has reported an ideal 6.7% rent to sales ratio along with unit level sales that are roughly 8% above Pizza Hut’s national average (Source: Statista.com 2016). Pizza Hut is a subsidiary of Yum! Brands, Inc., and is the most recognized pizza restaurant chain in the world, operating more than 16,400 restaurants in more than 100 countries. Headquartered in Louisville, Kentucky, YUM! Brands, Inc. reported a company revenue of $6 billion in 2016. The subject property is located at the intersection of Seneca Turnpike and Middlefield Dr, offering excellent visibility to combined traffic counts of 27,000 cars per day and multiple access points in/out of the property. Seneca Turnpike is a major retail/commuter corridor with national retailers in the area such as Walmart Supercenter, Kohl’s, Lowe’s, Aldi, Pep Boys, Autozone, Party City, Toys ‘R’ Us, and Rockin Jump nearby, as well as restaurants including Dunkin Donuts, McDonald’s, Berkshire Bank, Wendy’s, KFC, and Denny’s. Additional nearby shopping centers include Sangertown Square shopping mall located across from the subject property, with anchor tenants including Macy’s, Target, Boscov’s, Dick’s Sporting Goods, and JC Penney; and New Hartford Consumer Square with Walmart Supercenter, TJ Maxx, Best Buy, Staples, Applebee’s, Barnes & Noble, Old Navy and PetSmart. The subject property is located in New Hartford, NY, located adjacent to Utica. Utica is the county seat of Oneida County and the tenth-most-populous city in New York, located approximately 90 miles northwest of Albany and 45 miles east of Syracuse. With a business-friendly environment and growing population, the city presents various locations that offer high traffic counts, high visibility and an avid base of consumers from throughout the Utica-Rome Metropolitan Statistical Area (MSA), which boasts a population of roughly 300,000. With its low cost of living, the city has become a melting pot for refugees from war-torn countries around the world, encouraging growth for its colleges and universities, cultural institutions and economy. The nearby Marcy Nanocenter, located t SUNY Polytechnic Institute in Marcy, is a 450-acre greenfield site being developed for the semiconductor industry and is the largest shovel-ready semiconductor site in the world. The project has been attracting considerable interest from a number of companies and officials and with the recent tenancy of Denmark-based Danfoss Silicon Power, the area is likely to become attractive to manufacturing and technology companies around the world. PIZZA HUT | New Hartford (Utica), NY | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW Offering Summary • Investment Highlights • Lease Summary & Rent Overview -- INVESTMENT HIGHLIGHTS -- GLOBALLY RECOGNIZED TENANT: PIZZA HUT (NYSE: YUM) • SUCCESSFUL 100-UNIT OPERATOR Pizza Hut is the largest pizza chain in the world, operating over 16,000 restaurants and 350,000 team members in more than 100 countries. Pizza Hut is a subsidiary of YUM! Brands, Inc. (NYSE: YUM), the largest restaurant company in the world with over 43,500 restaurants in more than 135 countries and territories. YUM! Brands is ranked number 218 on the Fortune 500 list. GC Pizza Hut LLC is the #1 Franchisee-Large Owner/Operator in the Pizza Hut System, New England Region, operating 100 stores across New York, Massachusetts, Connecticut, Vermont, New Hampshire, Maine, and Tennessee. 6.7% RENT TO SALES RATIO • UNIT LEVEL SALES 8% ABOVE PIZZA HUT NATIONAL AVERAGE • HIGHLY PROFITABLE LOCATION The Tenant has reported an ideal 6.7% rent to sales ratio along with unit level sales that are roughly 8% above Pizza Hut’s national average (Source: Statistica.com 2016), alleviating any future vacancy risk concerns and providing a future investor with a long-term passive income stream. NEW 20-YEAR ABSOLUTE NNN LEASE • STRONG RENT GROWTH • ZERO LANDLORD RESPONSIBILITIES Upon close of escrow, the tenant will execute a 20-year lease upon close of escrow that will feature 10%increases every 5 years, offering an investor a steady income stream with rent growth as a hedge against inflation. LOCATED ON SIGNALIZED INTERSECTION • EXCELLENT VISIBILITY & ACCESS • STRONG TRAFFIC COUNTS The subject property is located at the intersection of Seneca Turnpike and Middlefield Dr, offering excellent visibility to combined traffic counts of 27,000 cars per day and multiple access points in/out of the property. EXCELLENT RETAIL SYNERGY ON RETAIL CORRIDOR • MINUTES FROM NEARBY SHOPPING CENTERS Seneca Turnpike is a major retail/commuter corridor with national retailers in the area such as Aldi, Pep Boys, Autozone, Party City, Toys ‘R’ Us, and Rockin Jump nearby, as well as restaurants including Dunkin Donuts, McDonald’s, Berkshire Bank, Wendy’s, KFC, and Denny’s. Additional nearby shopping centers include Sangertown Square shopping mall located across from the subject property, with anchor tenants including Macy’s, Target, Boscov’s, Dick’s Sporting Goods, and JC Penney; and New Hartford Consumer Square with Walmart Supercenter, TJ Maxx, Best Buy, Staples, Applebee’s, Barnes & Noble, Old Navy and PetSmart. LOCATED IN NEW HARTFORD / UTICA • HEART OF UPSTATE NEW YORK • HOME OF MARCY NANOCENTER The subject property is located in New Hartford, NY, located adjacent to Utica. Utica is the county seat of Oneida County and the tenth-most-populous city in New York, located approximately 90 miles northwest of Albany and 45 miles east of Syracuse. With a business-friendly environment and growing population, the city presents various locations that offer high traffic counts, high visibility and an avid base of consumers from throughout the Utica-Rome Metropolitan Statistical Area (MSA), which boasts a population of roughly 300,000. With its low cost of living, the city has become a melting pot for refugees from war- torn countries around the world, encouraging growth for its colleges and universities, cultural institutions and economy. The nearby Marcy Nanocenter, located at SUNY Polytechnic Institute in Marcy, is a 450-acre greenfield site being developed for the semiconductor industry and is the largest shovel-ready semiconductor site in the world. The project has been attracting considerable interest from a number of companies and officials and with the recent tenancy of Denmark-based Danfoss Silicon Power, the area is likely to become attractive to manufacturing and technology companies around the world. PIZZA HUT | New Hartford (Utica), NY | 5 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW Offering Summary Investment Highlights • Lease Summary & Rent Overview • -- LEASE SUMMARY -- INVESTMENT SUMMARY Tenant: Pizza Hut Guarantor: GC Pizza Hut (107 Units) Building Size: 3,051 Sq. Ft. Lot Size: 20,473 Sq. Ft. Ownership: Fee Simple Year Built: 2007 TERMS, BASE RENT & OPTIONS Annual Base Rent: $53,628 Lease Commencement: Upon Close of Escrow Lease Term: 20 Years Term Remaining: 20 Years Options to Renew: (4) 5-Year Options Rent Increases: 10% Increases Every 5 Years in Primary & Option Periods Lease Type: Absolute NNN Landlord Responsibilities: None -- RENT OVERVIEW -- RENT SCHEDULE - PRIMARY TERM NOI/Yr NOI/Mo NOI/SF/Yr NOI/SF/MO Increase Years 1 - 5 $53,628.00 $4,469.00 $17.58 $1.46 -- Years 6 - 10 $58,990.80 $4,915.90 $19.33 $1.61 10% Years 11 - 15 $64,889.88 $5,407.49 $21.27 $1.77 10% Years 16 - 20 $71,378.87 $5,948.24 $23.40 $1.95 10% OPTION PERIODS - (4) 5-YEAR