EL POLLO LOCO ™ 9455 Forest Ln | Dallas, TX El Pollo Loco, Dallas TX | 1 ®
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OFFERING MEMORANDUM EL POLLO LOCO ™ 9455 Forest Ln | Dallas, TX El Pollo Loco, Dallas TX | 1 ® A B R A M S R O A D S U B J E C T P R O P E R T Y traffic counts INTERSTATE 635......±188,000 ADT ™ ABRAMS2 | ROAD...........±21,000Matthews RealRetail ADT Estate Advisors Investment Services ® contents 04 EXECUTIVE SUMMARY 06 financial OVERVIEW 10 tenant overview 14 area OVERVIEW exclusively listed by GARY CHOU FVP & SENIOR DIRECTOR STNL A B R A M S R O A D [email protected] DIR (310) 919-5827 MOB (714) 928-8016 LIC # 01911222 S U B J E C T P R O P E R T Y KEVIN CHANG ASSOCIATE [email protected] DIR (310) 919-5828 MOB (951) 616-8918 LIC # 01976724 KYLE MATTHEWS BROKER OF RECORD LIC # 678067 El Pollo Loco, Dallas TX | 3 executive summary investment highlights EXTREMELY SECURE LEASE • Corporate Ground Lease – The income over the next 20 years is backed by over 400 units and $355MM in annual sales – Incredibly secure property! • Tenant Invested Site – As a ground lease, tenant picked this location and invested in the construction of this site – Motivated to stay for the long term! • Pride of Ownership – This property was built in 2016 allowing owner to purchase a newly constructed site with a brand-new lease • Publicly Traded Company – Headquartered in Costa Mesa, CA, El Pollo Loco (NASDAQ: LOCO) has a market cap of over $504MM and employs over 5,100 people in Nevada, Arizona, Utah, Texas and California IDEAL RETAIL PROPERTY • Highly Traveled Intersection – Located on the corner of a strong retail corridor, this property can be easily accessed and seen by over 50,000 VPD traveling on Forest Ln and Abrams Rd • Strong Retail Corridor – Just off I-635 (over 200,000 VPD), shoppers are attracted to the area by Walmart and other high quality tenants – This retail corridor is the most convenient pit stop for the students of Richland College, home to over 19,000 undergraduate students • Income Tax Free State – Texas is an income tax free state – Huge benefit to those also living in an income tax free state RETAIL FRIENDLY DEMOGRAPHICS • Double Digit Growth – Between 2010-2016, the surrounding area has experienced explosive population growth – 7.15% in a 1-mile, 6.73% in a 3-mile and 7.04% in a 5-mile radius; There is steady projected growth over the next 5 years with 6.16% growth in a 1-mile, 5.50% growth in a 3-mile and a 5.68% growth in a 5-mile • Healthy Household Income – Average household income in a 1-mile radius is 60,000, 3-mile radius is 73,000 and 5-mile radius is 86,000 • Strong Population Counts – The area services over 188,000 people in a 3-mile radius and over 419,000 people in a 5-mile radius 4 | Matthews Real Estate Investment Services property overview 9455 Forest Ln El Pollo Loco Dallas, TX 75243 Gross Leasable Area ± 2,800 SF Lot Size ± .74 Acres (32,234 SF) Year Built 2017 Assessor’s Parcel Number 008417000001A0000 Number of Stories One Parking ±29 Free Surface Spaces El ElPollo Pollo Loco, Loco, Dallas Dallas TX TX | 5| 5 financial overview6 | Matthews Real Estate Investment Services el pollo loco 9455 Forest Ln Dallas, TX 75243 List Price .................................................................................................................$3,368,000 CAP Rate - Current .......................................................................................................... 4.75% Gross Leasable Area .............................................................................................± 2,800 SF Lot Size ....................................................................................................................± .73 Acres Year Built .............................................................................................................................. 2016 Annualized Operating Data Monthly Rent Annual Rent Rent/SF CAP Current - 12/31/2021 $13,333.33 $160,000.00 $57.14 4.75% 1/1/2022 - 12/31/2026 $14,666.67 $176,000.00 $62.86 5.23% 1/1/2027 - 12/31/2031 $16,133.33 $193,600.00 $69.14 5.75% 1/1/2032 - 12/31/2036 $17,746.67 $212,960.00 $76.06 6.32% Option 1: 1/1/36 - 12/31/41 $19,521.33 $234,256.00 $83.66 6.96% Option 2: 1/1/42 - 12/31/46 $21,473.47 $257,681.60 $92.03 7.65% Option 3: 1/1/47 - 12/31/51 $23,620.81 $283,449.76 $101.23 8.42% Option 4: 1/1/52 - 12/31/56 $25,982.89 $311,794.74 $111.36 9.26% Tenant Summary Tenant Trade Name El Pollo Loco Type of Ownership Ground Lease Lease Guarantor Corporate Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 20 Years Lease Commencment 8/25/2015 Rent Commencemnt 12/28/2016 Lease Expiration Date 12/31/2036 Term Remaining 19.33 Increases 10% Every 5 Years Options Four (4), 5-Year Options El Pollo Loco, Dallas TX | 7 lease abstract Tenant El Pollo Loco, Inc. Ownership Ground Lease Lease Commencement 8/25/2015 Rent Commencement 12/28/2016 Lease Expiration 12/31/2036 Lease Term 20 Years Four (4), 5-Year; Options Tenant must give Six (6) month notice $160,000; Current NOI Next Increase 1/1/2022 10% Every 5 Years; Increases 10% Every 5 Years in Options Taxes Tenant Responsible Insurance Tenant Responsible Utilities Tenant Responsible Repairs Tenant Responsible Roof & Structure Tenant Responsible Right of First Refusal Ten (10) Days 8 | Matthews Real Estate Investment Services site plan Not A Part Abrams Road ±21,000 ADT ±21,000 Road Abrams DRIVE THRU Forest Lane ±31,000 ADT El Pollo Loco, Dallas TX | 9 tenant overview10 | Matthews Real Estate Investment Services Property Name El Pollo Loco Parent Company Trade Name El Pollo Loco Holdings, Inc. Ownership Public Revenue $355.06M Net Income $24.05M No. of Locations ± 430 No. of Employees ± 5,171 Headquartered Costa Mesa, CA Website http://www.elpolloloco.com Year Founded 1980 TENANT OVERVIEW El Pollo Loco Holdings operates and franchises about 430 fast-casual restaurants operating under the El Pollo Loco banner. Specializing in Mexican- style chicken dishes, the chain’s menu includes chicken burritos and tacos, as well as complete chicken dinners and sides. Most El Pollo Loco outlets are found in the Los Angeles area and other markets in California. A small number can be found in four other states. About 250 of the restaurants are operated by franchisees. Juan Francisco Ochoa started the chain in Mexico in 1975. El Pollo Loco went public in 2014. STRATEGY El Pollo Loco is uniquely positioned by offering the high-quality food and dining experience you would expect from a fast casual restaurants while providing the speed, convenience and value of traditional quick service restaurants. El Pollo Loco, Dallas TX | 11 the offering parcel map Property Name El Pollo Loco 9455 Forest Ln Property Address Dallas, TX 75243 ±188,000 ADT Assessor’s Parcel Number 00-84170-000-01A-0000 Zoning Oceanside Blvd ± 31,792 Site Description Number of stories One Year built 2016 GLA 2,800 Lot (Acres) ±0.73 Type of Ownership Ground Lease Landscaping Professional 40,116 ± Blvd College Topography Generally Level FOREST LANE ±31,000 ADT Foundation Concrete Slab Framing Steel Exterior Brick Parking Surface Asphalt Roof Flat 12 | Matthews Real Estate Investment Services tenant map Pioneer Blvd ±20,000 ADT Pioneer Blvd ±20,000 TRAFFIC COUNTS Interstate 635 ±188,000 ADT Forest Lane ±31,000 ADT El Pollo Loco, Dallas TX | 13 Dallas, Texas Dallas is a center for corporate America. Because of its central location relative to the rest of the United States, Dallas is a popular convention site and site for many corporate headquarters and home to 21 Fortune 500 companies. The city is the largest economic center of the 12-county Dallas- Fort Worth-Arlington metropolitan area. The economy is primarily based on banking, commerce, telecommunications, technology, energy, healthcare and medical research, and transportation and logistics. DALLAS DEMOGRAPHICS POPULATION 1 Mile 3 Mile 5 Mile HOUSEHOLDS 3 Mile 5 Mile 10 Mile 2022 Projection 31,476 179,693 424,354 2022 Projection 13,980 70,937 172,829 2017 Estimate 29,649 170,320 401,557 2017 Estimate 13,203 67,373 163,704 2011 Census 27,671 159,583 375,132 Growth 2017 - 2022 5.88% 5.29% 5.57% 2001 Census 29,806 178,555 397,507 INCOME 3 Mile 5 Mile 10 Mile 2017 Est. Average Growth 2017 - 2022 6.16% 5.50% 5.68% $60,267 $73,478 $86,879 Household Income 14 | Matthews Real Estate Investment Services DALLAS FAST FACTS population Dallas is the 9th largest city in the US and the third largest in Texas with a population of 1,281,047. metropolitan statistical area The Dallas-Fort Worth Arlington MSA consists of 12 counties: Collin, Dallas, Delta, Denton, Ellis, Hunt, Johnson, Kaufman, Parker, Rockwall, Tarrant and Wise and has a population of 6,954,330. annual visitors 24.9 million annual visitors to the City of Dallas, with 48.9 million visiting the Metro area accessibility Dallas is centrally located and within a four-hour flight from most North American destinations. It is served by two airports; Dallas/Ft. Worth International and Dallas Love Field that combined provide more than 2,200 flights daily. AMTRAK also provides daily service to Dallas via Union Station. city outline El Pollo Loco,CVS, NorwalkDallas TX CA | 15| 15 Dallas-Fort Worth MSA DALLAS BY THE NUMBERS The Dallas-Fort Worth Metroplex is the largest metropolitan area in the South, and fourth largest in the United States. It is a center for sporting events, tourism and manufacturing. Dallas and its suburbs have one of the highest concentrations of corporate headquarters in the United States. Business management and operations is a major part of the economy.