investment OFFERING · Yum! Brands, Inc. or Yum! is an American fast food company. A Fortune 500...

investment OFFERING | $1,188,000 – 7.00% CAP

Pizza hut | Absolute NNN

54 Main st, Benton, ky

Property. 2,381+ SF building on 0.76+ acres.

Tenant. Pizza Hut FY 2017: 16,748 locations in 120+ countries with $3.36 billion in annual income.

Lease structure. 10-year, absolute NNN, with 5% rent increases every 10 years in primary term and 5 years in option periods.

Location. Pizza Hut is strategically situated along Main St. (9,000 VPD) in north Benton, KY. Main St. is a major retail corridor in the area that experiences some of

the highest traffic volumes in the city. I-69 “Purchase Pkwy.” (15,000 VPD) connects the cities of Memphis and St. Louis, and recently redesigned a new exit just 1.5-

miles from the site. The subject property will benefit as it is the only Pizza Hut location within 20-miles, and of few sit-down restaurants in Benton. Additionally, Marshall

County High School (1,369 students) is the only high school in the county located 3-miles north of the site. Pizza Hut is located approximately 1-mile from downtown

Benton. Marshall County was named Kentucky's "Best County to Live In" ten years in a row, from 1999 to 2009. Along with Pizza Hut, the immediate trade area

features notable national credit tenants such as Walmart, CVS, Hibbett Sports, Cato, O’Reilly, AutoZone, Dollar General, Wendy’s, Taco John, Dairy Queen, Little

Caesar’s, McDonald’s, Sonic, Subway, BP, Murphy USA, and many others. Benton is located approximately 120-miles from Nashville, TN.

SUBJECT PROPERTY

214.915.8890

RUSSELL SMITH

[email protected]

Trivanta (“Agent”) has been engaged as an agent for the sale of the property located along

54 Main St., Benton, KY by the owner of the Property (“Seller”). The Property is being

offered for sale in an “as-is, where-is” condition and Seller and Agent make no

representations or warranties as to the accuracy of the information contained in this

Offering Memorandum. The enclosed materials include highly confidential information and

are being furnished solely for the purpose of review by prospective purchasers of the

interest described herein. The enclosed materials are being provided solely to facilitate the

prospective investor’s own due diligence for which it shall be fully and solely responsible.

The material contained herein is based on information and sources deemed to be reliable,

but no representation or warranty, express or implied, is being made by Agent or Seller or

any of their respective representatives, affiliates, officers, employees, shareholders,

partners and directors, as to the accuracy or completeness of the information contained

herein. Summaries contained herein of any legal or other documents are not intended to be

comprehensive statements of the terms of such documents, but rather only outlines of

some of the principal provisions contained therein. Neither the Agent nor the Seller shall

have any liability whatsoever for the accuracy or completeness of the information contained

herein or any other written or oral communication or information transmitted or made

available or any action taken or decision made by the recipient with respect to the Property.

Interested parties are to make their own investigations, projections and conclusions without

reliance upon the material contained herein. Seller reserves the right, at its sole and

absolute discretion, to withdraw the Property from being marketed for sale at any time and

for any reason. Seller and Agent each expressly reserves the right, at their sole and

absolute discretion, to reject any and all expressions of interest or offers regarding the

Property and/or to terminate discussions with any entity at any time, with or without notice.

This offering is made subject to omissions, correction of errors, change of price or other

terms, prior sale or withdrawal from the market without notice. Agent is not authorized to

make any representations or agreements on behalf of Seller. Seller shall have no legal

commitment or obligation to any interested party reviewing the enclosed materials,

performing additional investigation and/or making an offer to purchase the Property unless

and until a binding written agreement for the purchase of the Property has been fully

executed, delivered, and approved by Seller and any conditions to Seller’s obligations

hereunder have been satisfied or waived. By taking possession of and reviewing the

information contained herein, the recipient agrees that (a) the enclosed materials and their

contents are of a highly confidential nature and will be held and treated in the strictest

confidence and shall be returned to Agent or Seller promptly upon request; and (b) the

recipient shall not contact employees or tenants of the Property directly or indirectly

regarding any aspect of the enclosed materials or the Property without the prior written

approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied

or otherwise reproduced without the prior written authorization of Seller and Agent.

PAGE 3: INVESTMENT | TENANT | LEASE OVERVIEW

PAGE 2: TABLE OF CONTENTS | DISCLAIMER

PAGE 10: DEMOGRAPHICS

Table of contents | Disclaimer Pizza hut


PAGE 7: LOCATION OVERVIEW

PAGE 8-9: LOCATION MAPS

Disclaimer

PAGE 4-5: AERIAL PHOTO

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DRIVE-THRU ENTRANCE

PAGE 6: PROPERTY PHOTOS

LISTED IN ASSOCIATION WITH KENTUCKY BROKER OF RECORD:

JACK FOLEY | JACK FOLEY REALTY | LICENSE #54770

PRICE: $1,188,000

CAP RATE: 7.00%

NET OPERATING INCOME: $83,147

BUILDING AREA: 2,381+ Square Feet

LAND AREA: 0.76+ Acres

OWNERSHIP: Fee Simple Interest

OCCUPANCY: 100%

Investment overviewPizza hut


Lease overview

Lease Expiration: April 2027

Rent Commencement: April 2017

Lease Term: 10 Years, Plus (2), 5-Year Options to Renew

Rent Increases: 5% Every 10 Years In Primary Term & 5 Years In Options

Lease Type: Absolute NNN

Annual Rent Yrs 1-10: $83,147

Option 1 | Yrs 11-15: $87,305

Option 2 | Yrs 16-20: $91,670

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Tenant overviewLESSEE: Captain Development Co., Inc.

DALAND CORPORATION | www.dalandcorp.com

Formed in 1976, the Daland Corporation has become a significant independent franchisee of Pizza Huts in the US. Daland Corporation is a management company

that operates through 13 separate corporations, including Captain Development Co., Inc., that own and operate Pizza Hut/WingStreet Restaurants.

From their headquartered office in Wichita, Daland Corporation oversees and supports the operation of 106 Pizza Hut/WingStreet restaurants, which are located in

North Carolina, Georgia, Indiana, Ohio, Michigan, Kentucky, Virginia, Pennsylvania, Maryland, Wisconsin, New York and Florida. Daland Corporation is a privately

held company, an independent franchisee of Pizza Hut, Inc. and a member of the International Pizza Hut Franchise Holders Association. 38 individuals are

employed in the home office and an additional 2,500 field restaurant staff and supervisory personnel throughout the 12 states.

PIZZA HUT | www.pizzahut.com

Pizza Hut is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes including salad, pasta, buffalo

wings, breadsticks, garlic bread and desserts. A subsidiary of Yum! Brands, in 2017, there are approximately 16,748 Pizza Hut restaurants throughout more than

120 and annual revenue of $3.36 billion.

Pizza Hut was founded on June 15, 1958 by brothers Dan and Frank Carney in their hometown of Wichita, Kansas. When a friend suggested opening a pizza

parlor—then a rarity—they agreed that the idea could prove successful, and they borrowed $600 from their mother to start a business with partner John Bender.

Renting a small building at 503 South Bluff in downtown Wichita and purchasing secondhand equipment to make pizzas, the Carneys and Bender opened the first

Pizza Hut restaurant; on opening night, they gave pizza away to encourage community interest. A year later, in 1959, Pizza Hut was incorporated in Kansas, and

Dick Hassur opened the first franchise unit in Topeka.

Yum! Brands, Inc. or Yum! is an American fast food company. A Fortune 500 corporation, Yum operates the licensed brands Taco Bell, KFC, and Pizza Hut

worldwide. Based in Louisville, Kentucky, it is the world's largest fast food restaurant company in terms of system units—nearly 44,000 restaurants around the

world in over 135 countries and employing more than 1.5 million associates. YUM! Brands is a worldwide leader in emerging markets with over 17,000 restaurants,

nearly twice as many as the nearest competition. Yum! is ranked number 422 on the Fortune 500 List, with revenues exceeding $6.3 billion in 2016.

Aerial photoPizza hut


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Oak Level Rd. (5,000 VPD)

aerial photoPizza hut


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Global Wine

And Spirits

Benton Tire

& Lube

Choppers

Polaris of

Benton

Clarks River

property photosPizza hut


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Location overviewPizza hut


IMMEDIATE TRADE AREA

Pizza Hut is strategically situated along Main St. (9,000 VPD) in north Benton, KY. Main St. is a major retail corridor in the area that experiences some of the highest traffic

volumes in the city. I-69 “Purchase Pkwy.” (15,000 VPD) connects the cities of Memphis and St. Louis, and recently redesigned a new exit just 1.5-miles from the site. The

subject property will benefit as it is the only Pizza Hut location within 20-miles, and of few sit-down restaurants in Benton. Additionally, Marshall County High School (1,369

students) is the only high school in the county located 3-miles north of the site. Pizza Hut is located approximately 1-mile from downtown Benton. Benton is located

approximately 120-miles from Nashville, TN.

Along with Pizza Hut, the immediate trade area features notable national credit tenants such as Walmart, CVS, Hibbett Sports, Cato, O’Reilly, AutoZone, Dollar General,

Wendy’s, Taco John, Dairy Queen, Little Caesar’s, McDonald’s, Sonic, Subway, BP, Murphy USA, and many others.

BENTON, KY / MARSHALL COUNTY

The town of Benton, KY lies in the far western part of the Bluegrass state and is the county seat of Marshall County. Benton’s geographical location is the center of the county

in a nest of hills just South and West of Clarks River. Kentucky Lake is a close amenity. The quaint town of Benton was founded in 1842 by John Bearden and Francis H.

Clayton, but named for Senator Thomas Hart Benton of Missouri. Benton was then incorporated in 1845.

Marshall County is a county located in the U.S. state of Kentucky. As of the 2010 census, the population was 31,448. Its county seat is Benton. It is the only Purchase Area

county to not border another state, albeit only because of a narrow strip of land in neighboring Livingston County that separates Marshall County from the Ohio River and the

Illinois border. Marshall County was named Kentucky's "Best County to Live In" ten years in a row, from 1999 to 2009.

Marshall County is the home of Calvert Drive In Theater, the only one in the Purchase area and one of three within an 85-mile radius in far western Kentucky. Marshall County

is also home to the Silver Trail Distillery where a family legend was revitalized to restore the LBL Moonshine. The distillery and museum is in Hardin and Aurora.Marshall

County is home to one of the largest and most complete parks in the Purchase area. It has lighted baseball fields, two basketball courts, four soccer fields, two tennis courts, a

large fishing pond, large playground, spray park, and multiple picnic pavilions as well as a conference center. In September 2000 the park was dedicated as the Marshall

County Park. Marshall County is home to the FLW Bass Tournament organization, named after legendary founder of Ranger Boats, Forrest L. Wood. 7

BENTON, KY

Location mapPizza hut


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Location mapPizza hut


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2017 Est. Labor Population Age 16 Years or Over 437 5,527 8,942

2017 Est. Civilian Employed 41.4% 48.8% 50.1%

2017 Est. Civilian Unemployed 4.0% 2.5% 2.6%

2017 Est. in Armed Forces - - -

2017 Est. not in Labor Force 54.5% 48.7% 47.3%

2017 Labor Force Males 49.1% 47.8% 48.1%

2017 Labor Force Females 50.9% 52.2% 51.9%

2010 Occupation: Population Age 16 Years or Over 154 2,694 4,489

2010 Mgmt, Business, & Financial Operations 2.8% 9.2% 9.2%

2010 Professional, Related 20.7% 23.9% 22.4%

2010 Service 18.5% 16.9% 17.2%

2010 Sales, Office 25.7% 23.8% 23.5%

2010 Farming, Fishing, Forestry - 0.1% 0.1%

2010 Construction, Extraction, Maintenance 12.3% 6.3% 8.1%

2010 Production, Transport, Material Moving 20.0% 19.9% 19.4%

2010 White Collar Workers 49.2% 56.8% 55.2%

2010 Blue Collar Workers 50.8% 43.2% 44.8%

2010 Drive to Work Alone 75.5% 83.6% 84.6%

2010 Drive to Work in Carpool 18.3% 10.8% 9.9%

2010 Travel to Work by Public Transportation - - -

2010 Drive to Work on Motorcycle - - -

2010 Walk or Bicycle to Work - 0.3% 0.5%

2010 Other Means 2.9% 1.2% 0.9%

2010 Work at Home 3.3% 4.0% 4.1%

2010 Travel to Work in 14 Minutes or Less 41.5% 40.3% 36.3%

2010 Travel to Work in 15 to 29 Minutes 22.1% 30.3% 36.4%

2010 Travel to Work in 30 to 59 Minutes 19.7% 21.8% 22.1%

2010 Travel to Work in 60 Minutes or More 0.1% 2.0% 1.9%

2010 Average Travel Time to Work 13.9 17.2 18.2

2017 Est. Total Household Expenditure $9.76 M $141 M $231 M

2017 Est. Apparel $332 K $4.86 M $7.95 M

2017 Est. Contributions, Gifts $573 K $8.98 M $14.6 M

2017 Est. Education, Reading $327 K $5.06 M $8.13 M

2017 Est. Entertainment $530 K $7.82 M $12.8 M

2017 Est. Food, Beverages, Tobacco $1.56 M $22.0 M $36.0 M

2017 Est. Furnishings, Equipment $310 K $4.73 M $7.73 M

2017 Est. Health Care, Insurance $923 K $12.8 M $21.0 M

2017 Est. Household Operations, Shelter, Utilities $3.06 M $44.0 M $71.8 M

2017 Est. Miscellaneous Expenses $151 K $2.12 M $3.47 M

2017 Est. Personal Care $127 K $1.84 M $3.00 M

2017 Est. Transportation $1.87 M $27.1 M $44.6 M

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54 Main St1 mi radius 3 mi radius 5 mi radius

Benton, KY 42025

2017 Estimated Population 514 6,761 10,975

2022 Projected Population 532 7,010 11,375

2010 Census Population 404 6,526 10,755

2000 Census Population 445 6,104 10,085

Projected Annual Growth 2017 to 2022 0.7% 0.7% 0.7%

Historical Annual Growth 2000 to 2017 0.9% 0.6% 0.5%

2017 Estimated Households 206 2,746 4,507

2022 Projected Households 214 2,838 4,652

2010 Census Households 172 2,689 4,439

2000 Census Households 177 2,505 4,117

Projected Annual Growth 2017 to 2022 0.7% 0.7% 0.6%

Historical Annual Growth 2000 to 2017 1.0% 0.6% 0.6%

2017 Est. Population Under 10 Years 9.7% 11.5% 11.5%

2017 Est. Population 10 to 19 Years 14.0% 12.4% 12.3%





2017 Est. Population 75 Years or Over 11.0% 10.4% 9.3%

2017 Est. Median Age 34.9 39.4 40.4

2017 Est. Male Population 49.6% 48.3% 48.6%

2017 Est. Female Population 50.4% 51.7% 51.4%

2017 Est. Never Married 28.7% 21.3% 20.1%

2017 Est. Now Married 34.2% 51.0% 54.1%

2017 Est. Separated or Divorced 23.9% 16.6% 16.0%

2017 Est. Widowed 13.2% 11.1% 9.8%

2017 Est. HH Income $200,000 or More - 1.0% 1.2%

2017 Est. HH Income $150,000 to $199,999 0.3% 3.9% 3.3%

2017 Est. HH Income $100,000 to $149,999 8.3% 13.9% 12.4%

2017 Est. HH Income $75,000 to $99,999 8.6% 12.5% 12.5%

2017 Est. HH Income $50,000 to $74,999 11.5% 15.2% 18.3%

2017 Est. HH Income $35,000 to $49,999 15.3% 14.9% 16.0%

2017 Est. HH Income $25,000 to $34,999 13.4% 12.4% 12.1%

2017 Est. HH Income $15,000 to $24,999 20.2% 12.8% 12.0%

2017 Est. HH Income Under $15,000 22.4% 13.4% 12.1%

2017 Est. Average Household Income $56,158 $63,441 $63,138

2017 Est. Median Household Income $30,808 $49,303 $49,881

2017 Est. Per Capita Income $24,918 $26,495 $26,383

2017 Est. Total Businesses 192 451 586

2017 Est. Total Employees 1,818 3,861 4,879

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Benton, KY 42025

DemographicsPizza hut


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investment OFFERING · Yum! Brands, Inc. or Yum! is an American fast food company. A Fortune 500...

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