INVESTMENT OPPORTUNITY POPEYES NEW BTS CONSTRUCTION | NEW 20-YEAR NNN LEASE PICO RIVERA CA (LOS ANGELES COUNTY) Representative Photo OFFERED AT: $3,225,000 | 4% CAP EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW TABLE OF CONTENTS EXECUTIVE SUMMARY 4 Executive Summary 5 Investment Highlights 6 Lease Summary & Rent Overview 7 Lease Abstract PROPERTY INFORMATION 9 Location Maps 10 Site Plan 11 Aerials TENANT OVERVIEW 17 About Popeyes AREA OVERVIEW 19 Pico Rivera Overview 20 Los Angeles County Overview 21 Demographics Confidentiality Agreement & Disclosures EXCLUSIVELY REPRESENTED BY RYAN BARR | Principal RYAN BENNETT | Principal 760.448.2446 760.448.2449 [email protected] [email protected] CA DRE Lic#01338994 CA DRE Lic#01826517 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 Representative Photo POPEYES | Pico Rivera, CA (Los Angeles County) | 2 EXECUTIVE SUMMARY POPEYES PICO RIVERA, CA POPEYES | Pico Rivera, CA (Los Angeles County) | 3 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW • Offering Summary • Investment Highlights Lease Summary & Rent Schedule Lease Abstract -- OFFERING SUMMARY -- INVESTMENT HIGHLIGHTS Offering Price: $3,225,000 Net Operating Income: $129,000 Cap Rate: 4% Price/SF: $1,331 Lease Type: NNN Lease Commencement: January 15, 2019 PROPERTY OVERVIEW Address: 9209 Telegraph Rd Pico Rivera, CA Property Size: Approx 2,423 Sq. Ft. Land Size: 0.31 Acre Ownership: Fee Simple (Land & Building) Year Built: 2018 Lee & Associates is pleased to exclusively offer for sale the fee simple interest (land & building) in a retail investment property located in Pico Rivera, in Los Angeles County, California (the “Property”). The build to suit property is currently under construction and will consist of a 2,423-square-foot retail building with drive-thru that sits on an approximately 0.31-acre parcel. The subject property is leased to The Big Spicy Corporation, Inc. dba Popeyes Louisiana Kitchen (“Popeyes”). Popeyes is the world’s second largest quick service chicken concept as measured by total number of restaurants. Popeyes owns or franchises over 2,890 restaurants with a unique “Louisiana” style menu featuring spicy chicken, chicken tenders, fried shrimp and other seafood, red beans and rice and other regional items. The new 20-year NNN lease commences in January 2019, and features 10% rent increases every 5 years in Primary Term and the (4) 5-year option periods. The Absolute NNN lease requires minimal landlord responsibilties, offering an investor a passive income stream with solid rent growth. The subject property is situated on a hard corner signalized intersection along Telegraph Rd, offering outstanding signage and visibility to 26,000+ cars per day. Telegraph Rd is a major retail/commuter corridor in the area, offering quick access to Interstate 5 just a few blocks from the site. Additionally, the property is located in a dense infill location, with nearly 62,000 households within a 3-mile radius of the site. Popeyes is located in Pico Rivera, a city in Los Angeles County, California only 11 miles southeast of downtown Los Angeles. Pico Rivera is a thriving community that offers a balanced mix of homes, businesses and recreational facilities. Industrial and commercial uses are attracted to Pico Rivera, thanks in large part to the easy access provided by three freeways - Interstate 605 (San Gabriel Freeway), Interstate 5 (Santa Ana Freeway) and Interstate 60 (Pomona Freeway). The City of Pico Rivera was awarded the “Most Business-Friendly City in Los Angeles County” in 2016, reflecting its commitment to economic development, excellence in programs and services to facilitate business entry, expansion and retention, and availability of economic incentives for area businesses. It is the home of the US Corporate Headquarters for Aurora World (toys) and BakeMark (bakery ingredients), as well as top employers Bimbo Bakeries, Cintas and Southern California Material Handling. The Water Replenishment District of Southern California recently completed a $110 million water recycling plant in Pico Rivera, built by J.F. Shea Construction, a Walnut-based developer. The plant is a giant step for Los Angeles County, which will no longer need water pumped from Northern California or the Colorado River in order to serve its 4 million customers. Representative Photo POPEYES | Pico Rivera, CA (Los Angeles County) | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW Offering Summary • Investment Highlights • Lease Summary & Rent Schedule Lease Abstract -- INVESTMENT HIGHLIGHTS -- DESIRABLE NATIONAL TENANT: POPEYES LOUISIANA KITCHEN • WORLD’S 2ND LARGEST QUICK SERVICE CHICKEN CONCEPT • NEW BUILD TO SUIT CONSTRUCTION • DRIVE-THRU LANE The subject property is a new build-to-suit quick service restaurant with drive-thru lane that is leased to The Big Spicy Corporation, Inc., dba Popeyes Louisiana Kitchen. Popeyes Louisiana Kitchen is the world’s second largest quick service chicken concept as measured by total number of restaurants. As of December 31, 2017, Popeyes owned or franchised a total of 2,892 restaurants, distinguished with a unique “Louisiana” style menu featuring spicy chicken, chicken tenders, fried shrimp and other seafood, red beans and rice and other regional items. BRAND NEW 20-YEAR NNN LEASE • ZERO LANDLORD RESPONSIBILITIES • EXCELLENT RENT GROWTH The new 20-year NNN lease commences in January 2019, and features 10% rent increases every 5 years in Primary Term and the (4) 5-year option periods. The Absolute NNN lease requires zero landlord responsibilties, offering an investor a passive income stream with solid rent growth. HARD CORNER SIGNALIZED INTERSECTION • MAJOR COMMUTER CORRIDOR • DENSE INFILL LOCATION The subject property is situated on a hard corner signalized intersection along Telegraph Rd, offering outstanding signage and visibility to 26,000+ cars per day. Telegraph Rd is a major commuter corridor in the area, offering quick access to Interstate 5 just a few blocks from the site. Additionally, the property is located in a dense infill location, with nearly 62,000 households within a 3-mile radius of the site. LOCATED IN CITY OF PICO RIVERA • MINUTES FROM DOWNTOWN LOS ANGELES • BUSINESS-FRIENDLY CITY The subject property is located in Pico Rivera, a city in Los Angeles County, California only 11 miles southeast of downtown Los Angeles. Pico Rivera is a thriving community that is home to a balanced mix of homes, businesses and recreational facilities. The City of Pico Rivera was awarded the “Most Business-Friendly City in Los Angeles County” in 2016, reflecting its commitment to economic development, excellence in programs and services to facilitate business entry, expansion and retention, and availability of economic incentives for area businesses. It is the home of the US Corporate Headquarters for Aurora World (toys) and BakeMark (bakery ingredients), as well as top employers Bimbo Bakeries, Cintas and Southern California Material Handling. REVITALIZED CITY • NEW SHOPPING & COMMUNITY DEVELOPMENT • SITE OF NEW $110-MILLION WATER TREATMENT PLANT There has been significant redevelopment in the city, with the opening of the Pico Rivera Towne Center, a 60-acre open-air shopping complex; Pico Crossing, a 2.79-acre shopping center; and, the Pico Rivera Village Walk, a $22 million, 12-acre shopping center located at the southwest corner of Whittier and Paramount boulevards. The Water Replenishment District of Southern California recently completed a $110 million water recycling plant in Pico Rivera, built by J.F. Shea Construction, a Walnut-based developer. The plant is a giant step for Los Angeles County, which will no longer need water pumped from Northern California or the Colorado River in order to serve its 4 million customers. POPEYES | Pico Rivera, CA (Los Angeles County) | 5 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW Offering Summary Investment Highlights • Lease Summary & Rent Schedule • Lease Abstract -- LEASE SUMMARY -- -- RENT SCHEDULE -- LEASE INFORMATION RENT SCHEDULE TENANT: The Big Spicy Corporation, Inc. dba Popeyes Louisiana Kitchen TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR GUARANTOR: Personal Guaranty (See Page 17) Years 1 - 5 1/15/2019 1/14/2024 $129,000.00 $10,750.00 $53.28 BUILDING SIZE: 2,423 Sq. Ft. Years 6 - 10 1/15/2024 1/14/2029 $141,900.00 $11,825.00 $58.56 LOT SIZE: 0.31 Years 10 - 15 1/15/2029 1/14/2034 $156,090.00 $13,007.50 $64.44 RENT COMMENCEMENT (Estimated): January 15, 2019 Years 16 - 20 1/15/2034 1/14/2039 $171,699.00 $14,308.25 $70.92 LEASE EXPIRATION: January 14, 2039 OPTION PERIODS - (4) 5-Year Options BASE LEASE TERM: 20 Years TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR RENEWAL OPTIONS: (4) 5-Year Options Option 1 1/15/2039 1/14/2044 $188,868.90 $15,739.75 $78.00 LEASE TYPE: NNN Option 2 1/15/2044 1/14/2049 $207,755.79 $17,319.98 $85.80 LANDLORD RESPONSIBILITIES: None Option 3 1/15/2049 1/14/2054 $228,531.37 $19,044.28 $94.32 RENT INCREASES: 10% Increases Every 5 Years in Primary Term & Options Option 4 1/15/2054 1/14/2059 $251,384.51 $20,948.71 $103.80 ANNUAL RENT: $129,000 POPEYES | Pico Rivera, CA (Los Angeles County) | 6 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW Offering Summary Investment Highlights Lease Summary & Rent Schedule • Lease Abstract • -- LEASE ABSTRACT -- Tenant agrees to pay all Property Taxes levied and assessed during the Term of this Lease upon the Parcel. Tenant shall pay all such Property Taxes directly to the applicable taxing authority and provide Landlord with Property Taxes: evidence of payment within ten (10) days after Tenant’s receipt of a copy of the applicable tax bill.