Lakewood Ranch, Florida (Sarasota-Bradenton-Tampa MSA)€¦ · • Renewal Options and Rent...

Representative PhotoOffering Memorandum

Lakewood Ranch, Florida(Sarasota-Bradenton-Tampa MSA)

New, 25-Year, Triple Net (NNN) Lease

Brand New Location, Anticipated Opening Date is December 15, 2018

Five, Five-Year Option Periods with 7.5 Percent Increases Every Five Years

Strong Franchisee | Owns and Operates 26 Taco Bell Restaurants, as well as Three Pizza Hut Locations and Two

Long John Silver’s Locations

Within Walking Distance to Premier Sports Campus, a Large Complex with 23 FIFA-Regulation Fields, and Hosts a Number of Field Sports on Local, State,

Regional and National Levels

Part of the Sarasota-Bradenton-Tampa MSA

Within Close

Proximity to Tampa

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 Investment Services of Florida 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 corporation’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© 2018. All rights reserved.

FINANCIAL OVERVIEW

Overview12515 Garnet Trail, Lakewood Ranch, Florida 34211

(Sarasota-Bradenton-Tampa MSA)Price: $2,857,000Cap Rate: 5.25%Rentable Square Feet: 2,791Annual Rent: $150,000Price PSF: $1,023.64Land Area: 1.10 AcresYear Built: 2018

Base Term Annual Rent PSF Cap Rate

Lease Years 1-5: $150,000 $53.74 5.25%Lease Years 6-10: $161,250 $57.77 5.64%Lease Years 11-15: $173,344 $62.11 6.07%Lease Years 16-20: $186,345 $66.77 6.52%Lease Years 21-25: $200,320 $71.77 7.01%

Option Periods Annual Rent PSF Cap Rate

Option 1, Years 26-30: $215,344 $77.16 7.54%Option 2, Years 31-35: $231,495 $82.94 8.10%Option 3, Years 36-40: $248,857 $89.16 8.71%Option 4, Years 41-45: $267,522 $95.85 9.36%Option 5, Years 46-50: $287,586 $103.04 10.07%

Lease SummaryTenant: Taco BellWebsite: www.TacoBell.comLease Guarantor: Franchisee, BDE Florida LLCLease Type: NNNLease Term: 25 YearsOption Periods: 5, 5-Year OptionsRent Increases: 7.5% Every 5 YearsRoof & Structure: TenantCommencement: 1/1/2019 estLease Expiration: 12/31/2043 est

• 25-Year, Triple Net LeaseThe Taco Bell located at 12515 Garnet Trail in Lakewood Ranch, Florida is a brand new location. This location is currently under construction with an anticipated opening date of December 15, 2018, and has a new 25-year, triple net (NNN) lease.• Renewal Options and Rent IncreasesTaco Bell in Lakewood Ranch has five, five-year option periods with 7.5 percent rental increases every five years in base term and option periods.• Surrounding AreaLakewood Ranch is part of the Sarasota & Tampa MSA, and is home to over 30,000 residents and more than 14,000 jobs. The Lakewood Ranch community features vibrant town centers, A-rated schools, the Lakewood Ranch Medical Center, Lakewood Ranch Golf & Country Club and Sarasota Polo Club.The subject property is within walking distance to Premier Sports Campus, a large complex with 23 FIFA-regulation fields, and hosts a number of field sports on local, state, regional and national levels. To accommodate guests coming from the sports campus, the restaurant was designed to have a larger than usual patio area.

http://www.TacoBell.com

TENANT SUMMARY


BDE Florida, LLCBDE Florida, LLC is a franchisee of Taco Bell restaurants. On July 2, 2013 BDE purchased 20 Taco Bell locations from Taco Bell of America, LLC. All the restaurants are located in the state of Florida. Three of the subject locations also have Pizza Huts and two locations have Long John Silver’s restaurants. As of December 31, 2017, BDE Florida, LLC owned 25 Taco Bell locations, three Pizza Hut locations and two Long John Silver’s locations. All the restaurants owned and operated by BDE are governed by franchise agreements with Taco Bell Corporation, Pizza Hut, Inc. and Long John Silver’s, Inc.

Once the Taco Bell in Lakewood Ranch is built, BDE will own and operate 26 Taco Bell locations. Brian Ellerson is the CEO of BDE Florida, LLC. In early 2013, Ellerson raised capital on Wall Street when he purchased his first 20 Taco Bell restaurants. According to 2017 audit, BDE Florida, LLC had more than $37 million in revenue with more than $5 million in EBITDA.

Taco Bell Corporation is the nation’s leading Mexican-inspired, quick service restaurant. Taco Bell serves made-to-order and customizable tacos, burritos and specialties such as the exclusive Doritos Locos Tacos, gourmet inspired Cantina Power Menu and lower calorie Fresco Menu. The company encourages customers to “Live Más,” both through its food and in ways such as its Feed the Beat music program and nonprofit organization, the Taco Bell Foundation for Teens.

By the end of 2018, Taco Bell will have more than 500 restaurants in 27 markets around the world, with the goal of expanding the brand’s international footprint to 1,000 restaurants by 2022. In the U.S., the brand and its franchisees operate more than 7,000 restaurants. By 2022, the brand plans to operate 9,000 restaurants globally. Taco Bell and franchise partners in Brazil and Spain have signed on to open more than 400 restaurants in the next decade.

Yum! Brands, Inc., based in Louisville, Kentucky, has over 45,000 restaurants in more than 135 countries and territories and is one of the Aon Hewitt Top Companies for Leaders in North America. In 2018, Yum! Brands was recognized as part of the inaugural Bloomberg Gender-Equality Index. In 2017, Yum! Brands was named to the Dow Jones Sustainability North America Index and ranked among the top 100 Best Corporate Citizens by Corporate Responsibility Magazine. The company’s restaurant brands – KFC, Pizza Hut and Taco Bell – are global leaders of the chicken, pizza and Mexican-style food categories. Worldwide, the Yum! Brands system opens over seven new restaurants per day on average, making it a leader in global retail development. Yum! Brands is proud to be the worldwide leader in emerging markets with over 17,000 restaurants, nearly twice as many as the nearest competition. With less than three restaurants per million people in the top 10 emerging markets, compared to approximately 57 restaurants per million in the U.S.

SITE RENDERINGS


Oversized Patio to Accommodate Customers From

Nearby Sports Campus

SITE PLAN


SURROUNDING AREA


The Premier Sports Campus is a large complex with 23 FIFA-regulation fields. Each field is comprised of Celebration-seeded Bermuda grass, which has excellent wear tolerance and is the preferred surface for reducing player injuries. They currently host a number of field sports on local, state, regional and national levels; future phases will expand those offerings. They also have 65,000 feet of underground irrigation to prevent any flooding in the event of heavy rains.

Located within the Bradenton Area community of Lakewood Ranch, the Premier Sports Campus features 140 acres of pristine fields perfect for hosting everything from tournaments and practices to outdoor movie nights and concerts. Facilities include on-site concession stands, lighted fields, stadium seating, training rooms and more.

The subject property is within walking distance to Premier Sports Campus. To accommodate guests coming from the sports campus, the restaurant was designed to have a larger than usual patio area.

For more information visit www.premiersportscampus.com

The Subject Property is

Within Walking Distance to

Premier Sports Campus

https://www.premiersportscampus.com/

Lakewood Ranch is the second fastest growing master planned residential community in the United States. It bettered its 2017 mid- and year-end position of number three and outpaced many other recognizable and well-known communities in Arizona, California, Nevada, Texas, Colorado, and even Florida. The Ranch secured 826 new home sales through the end of June of 2018, versus last year’s figure of 622; an increase of 33 percent. Only one other community in the top 10, located in Nevada, demonstrated a larger percentage of growth. Lakewood Ranch has been among the top-selling master-planned communities in the country for seven years.

Lakewood Ranch is a 31,000-acre award-winning community in Sarasota and Manatee counties, 50 miles south of Tampa on the West Coast of Florida. Just minutes from the Gulf Coast beaches and cultural assets in Sarasota, Lakewood Ranch is already home to more than 30,000 residents and features A-rated schools, a hospital, the Sarasota Polo Club, the 140-acre Premier Sports Campus, its own Main Street with theaters, shopping and dining, and more than four million square feet of commercial property.

Part of the North Port-Bradenton-Sarasota MSA, the community was built on what was previously a family owned timber ranch. The developing community also includes over 150 miles of sidewalks and trails, leaving residents no shortage in exploring wetland and forest preservations abundant with native wildlife and dramatic landscapes.

Features of Lakewood Ranch include access to top ranked beaches in the nation such as Anna Maria Island and Siesta Key Beach, as well as a plethora of pristine golf courses. First class athletic complex facilities such as Premier Sports Complex and Nathan Henderson Rowing Facility draw national attention for youth and Olympic sports programs.

Lakewood Ranch has a well-rounded population ranging from young families to senior citizens. With the brand new University Town Center mall and shopping centers popping up in every direction, Lakewood Ranch is a versatile community great for businesses looking to expand into Florida’s Gulf Coast.

Lakewood Ranch, after years of increasing sales, has displaced the previous second place holder as fastest growing master planned residential community, Orange County, California’s Irvine Ranch. This has been aided by the opening of neighborhoods like Waterside, RCLCO officials said. The new village is located on the southern edge of the MPC and, as its name suggests, is oriented around several lakes. Waterside will include a town center on the lake.

For more information visit www.lakewoodranch.com


LOCATION OVERVIEW

http://www.lakewoodranch.com

LOCAL & REGIONAL MAPS


MARKET OVERVIEW

OVERVIEW

SARASOTA

DEMOGRAPHICS

ECONOMY

METRO HIGHLIGHTS

Known for small-town living, beaches and resorts, the Sarasota metro is a major draw for tourists and retirees. Roughly 30 percent of the population is age 65 and older, supporting a large network of healthcare providers and contributing to jobs in this sector. Goods and services also benefit from the demographic trends; the sector makes up a large portion of the local workforce. The metro encompasses all of Manatee and Sarasota counties. The city of Sarasota is 60 miles south of Tampa.

MANATEE COUNTY SCHOOL DISTRICT

More than 6,000 individuals are employed through the Manatee

County School District, the largest employer in the metro.

RETAIL EMPLOYERS

Grocery store chain Publix is a major source of jobs in the

metro, employing thousands of workers across many locations.

TOURISM INDUSTRY

A warm year-round climate, miles of beaches and an abundance

of activities and attractions draw millions of tourists to the region

every year.

▪ The Sarasota metro is home to many manufacturing companies, supporting employment in the area and driving the local economy. Companies include PGT Innovations, Sun Hydraulics Corp. and Tervis.

▪ Some of the top export products that the metro produces are fabricated metal products, computer and electronic products, and transportation equipment.

▪ The Baltimore Orioles and the Pittsburgh Pirates conduct spring training in the metro, contributing to a robust and expanding tourism sector that has a substantial economic impact in the area. Direct expenditures and the economic impact increased 3.4 percent in Sarasota County in fiscal year 2016.

▪ The many museums and cultural activities enhance the metro’s quality of life.

779K

2017POPULATION:

345K

2017HOUSEHOLDS:

51.6

2017MEDIAN AGE:

$54,800

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

37.8U.S. Median:

$56,3009.2%

Growth2017-2022*:

8.1%

Growth2017-2022*:

MARKET OVERVIEW

TAMPA-ST. PETERSBURGOVERVIEW

Tampa Bay refers both to a larger metropolitan area and to the bay that extends inland from the Gulf of Mexico. The Tampa-St. Petersburg metro contains 2.9 million residents and spans four counties along the west coast of central Florida: Hillsborough, Pasco, Hernando and Pinellas. Tampa, the county seat of Hillsborough County, is the most populous city with more than 365,400 people and is situated northeast of the bay. St. Petersburg follows with nearly 255,000 residents and is located on the peninsula near the mouth of the bay. Robust job growth is attracting new people to the metro, many of whom are living in higher-density redevelopment projects near city cores.

MARKET OVERVIEW

METRO HIGHLIGHTS

FAVORABLE BUSINESS CLIMATE

A low cost of living and economic development bring a

thriving business landscape to the Tampa Bay-St.

Petersburg metro.

PORT ACTIVITY

One of the largest seaports in the Southeast, the Port of

Tampa services passenger cruise ships and commercial

freighters. The Port of St. Petersburg is also in the metro.

DIVERSE ECONOMY

High-tech industries as well as the tourism, military,

finance and seaborne commerce segments drive the

region’s economy.

MARKET OVERVIEW

ECONOMY▪ Local ports contribute to a major presence in the shipping, distribution and logistics

industry. The CSX Intermodal facility in nearby Polk County provides quick access to

markets throughout the nation.

▪ Bioscience and other high-tech industries are expanding. Local Fortune 500 companies

include WellCare Health Plans, Tech Data and Jabil Circuit.

▪ Tourism also plays a significant role in the local economy. Visitors can go to Busch

Gardens, the Dali Museum and the region’s many beaches, among other sites.

SHARE OF 2017 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

BayCare Health Care Systems

Publix Supermarkets, Inc.

HCA West Florida

Walmart

Verizon Communications, Inc.

MacDill Air Force Base

University of South Florida

JPMorgan Chase

Citibank

TECO Energy Inc.* Forecast

MANUFACTURING

5%GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+OTHER SERVICES

4%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

AND UTILITIES

TRADE, TRANSPORTATION

19%

PROFESSIONAL AND

BUSINESS SERVICES

2%INFORMATION

18%

CONSTRUCTION

6%

12% 11% 8%

15%

MARKET OVERVIEW

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

▪

▪

▪

The local population will expand to approximately 3.2 million residents through

2022. During this time the number of households will increase to 1.3 million.

Homeownership of nearly 65 percent is slightly above the national rate of 64

percent; the median home price, at $226,300, is below the national median. More than 36 percent of residents hold bachelor’s degrees, with 9 percent

having also attained a graduate or professional degree.

The metro boasts a mild climate and a beautiful waterfront that attract many residents and visitors. It has professional football, hockey and baseball teams. The area has more than 200 golf courses and abundant water-related activities, with Tampa Bay and the Gulf Coast nearby. There are more than 11,000 acres of parkland and 100 trail acres within a 60-mile radius. Numerous state parks, historic sites, museums, theaters and retail centers also dot the landscape. The world-famous Busch Gardens theme park draws visitors. Educational advancement is available at numerous institutions of higher learning located in the Tampa Bay area. The University of South Florida, located in Tampa, is the third-largest university in the state.

QUALITY OF LIFE

2017 Population by Age

0-4 YEARS

5%5-19 YEARS

17%20-24 YEARS

6%25-44 YEARS

25%45-64 YEARS

27%65+ YEARS

19%

42.1

2017MEDIAN AGE:

U.S. Median:

37.8

$48,700

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$56,300

3M

2017POPULATION:

Growth2017-2022*:

6.4%

1.2M

2017HOUSEHOLDS:

7.7%

Growth2016-2022*:


DEMOGRAPHICS

POPULATION 1 MILE 3 MILES 5 MILES

2010 Population 4,236 13,229 31,8432017 Population 5,689 16,258 41,1012022 Population 7,729 20,386 49,7142017 Male Population 2,852 8,008 20,1982017 Female Population 2,838 8,250 20,9032017 Median Age 36.2 45.8 49.4

RACE & ETHNICITY 1 MILE 3 MILES 5 MILES

American Indian, Eskimo 0.1% 0.1% 0.1%Asian 4.8% 3.5% 3.3%Black 2.7% 2.3% 2.1%Hawaiian/Pacific Islander 0.0% 0.0% 0.0%White 88.2% 91.1% 91.8%Other 1.6% 1.0% 1.0%Multi-Race 2.7% 2.0% 1.7%Hispanic Ethnicity 9.6% 7.2% 6.2%Not of Hispanic Ethnicity 90.4% 92.8% 93.8%

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2010 Households 1,334 4,744 12,5672017 Households 1,792 5,808 16,4612022 Households 2,444 7,376 20,205

HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES

2010 Avg Household Income $123,583 $114,439 $109,9392017 Avg Household Income $135,813 $126,288 $122,4172022 Avg Household Income $152,597 $143,973 $139,1462010 Med. Household Income $94,511 $88,788 $84,2532017 Med. Household Income $102,428 $97,291 $93,2932022 Med. Household Income $112,207 $108,376 $104,8552010 Per Capita Income $38,912 $41,038 $43,3922017 Per Capita Income $42,773 $45,112 $49,0292022 Per Capita Income $48,256 $52,095 $56,555

Click to View in Google Maps

https://www.google.com/maps/place/Taco+Bell/@27.4316021,-82.3880656,1279m/data=!3m1!1e3!4m5!3m4!1s0x88c337603c09fd15:0xad37480beffaf28a!8m2!3d27.4323472!4d-82.3866013

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

About Marcus & MillichapWith over 1,800 investment professionals located throughout the United States and Canada, Marcus & Millichap (NYSE: MMI) is a leading specialist in commercial real estate investment sales, financing, research and advisory services. The firm closed nearly 9,000 transactions in 2017 with a value of approx $42.2 billion.

Marcus & Millichap has been a pioneer in the real estate investment industry and has established a reputation for maximizing value for its clients while fostering long-term relationships built on integrity, trust and service. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. Marcus & Millichap also offers clients access to the most competitive real estate financing through Marcus & Millichap Capital Corporation (MMCC), which maintains relationships with the industry’s leading national, regional and local lenders.

The Wolfe Retail Group has sold over

450 properties in more than

40 states

Charles “Chas” MoodyAssociate

[email protected](954) 245-3464

Michael TalbertAssociate


Barry M. WolfeSenior Managing Director Investments


Alan LipskyVice President Investments


Evan WhelanAssociate


Catie JacksonMarketing Coordinator


Angelica ArrousTransaction Coordinator


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Lakewood Ranch, Florida (Sarasota-Bradenton-Tampa MSA)€¦ · • Renewal Options and Rent...

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