el pollo loco - matthews · el pollo loco is uniquely positioned by offering the high-quality food...
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E l P o l l o L o c o , D a l l a s T X | 1
EL POLLO LOCO9 4 5 5 F o r e s t L n | D a l l a s , T X
O F F E R I N G M E M O R A N D U M
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S U B J E C T P R O P E R T Y
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A B R A M S R O A D
t r a f f i c c o u n t sINTERSTATE 635... . . .±188,000 ADTABRAMS ROAD... . . . . ....±21,000 ADT
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S U B J E C T P R O P E R T Y
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A B R A M S R O A D
G A RY C H O UFVP & SENIOR [email protected] (310) 919-5827MOB (714) 928-8016LIC # 01911222
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E X E C U T I V E S U M M A RY
f i n a n c i a l O V E R V I E W
a r e a O V E R V I E W
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K E V I N C H A N GASSOCIATE
[email protected] (310) 919-5828MOB (951) 616-8918LIC # 01976724
K Y L E M AT T H E W SBROKER OF RECORD
LIC # 678067
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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
i n v e s t m e n t h i g h l i g h t s
e x e c u t i v e s u m m a ry
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El Pollo Loco 9455 Forest Ln
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
p r o p e r t y o v e r v i e w
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E l P o l l o L o c o , D a l l a s T X | 7
e l p o l l o l o c o9455 Forest LnDallas, 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 DataMonthly 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
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l e a s e a b s t r a c t
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
OptionsFour (4), 5-Year;
Tenant must give Six (6) month notice
Current NOI$160,000;
Next Increase 1/1/2022
Increases10% Every 5 Years;
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
E l P o l l o L o c o , D a l l a s T X | 9
Not A Part
Forest Lane ±31,000 ADT
Abr
ams
Road
±21
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0 A
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E l P o l l o L o c o , D a l l a s T X | 1 1
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.
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t h e o f f e r i n g
Property Name El Pollo Loco
Property Address 9455 Forest Ln
Dallas, TX 75243
Assessor’s Parcel Number 00-84170-000-01A-0000
Zoning
Site DescriptionNumber of stories One
Year built 2016
GLA 2,800
Lot (Acres) ±0.73
Type of Ownership Ground Lease
Landscaping Professional
Topography Generally Level
Foundation Concrete Slab
Framing Steel
Exterior Brick
Parking Surface Asphalt
Roof Flat
Oceanside Blvd ± 31,792
Col
lege
Blv
d ±
40,11
6
pa r c e l m a p
FOREST LANE ±31,000 ADT
±188,000 ADT
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T R A F F I C C O U N T SInterstate 635 ±188,000 ADTForest Lane ±31,000 ADT
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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, Texas
DALLAS DEMOGRAPHICS
POPULATION 1 Mile 3 Mile 5 Mile
2022 Projection 31,476 179,693 424,354
2017 Estimate 29,649 170,320 401,557
2011 Census 27,671 159,583 375,132
2001 Census 29,806 178,555 397,507
Growth 2017 - 2022 6.16% 5.50% 5.68%
HOUSEHOLDS 3 Mile 5 Mile 10 Mile
2022 Projection 13,980 70,937 172,829
2017 Estimate 13,203 67,373 163,704
Growth 2017 - 2022 5.88% 5.29% 5.57%
INCOME 3 Mile 5 Mile 10 Mile
2017 Est. Average Household Income
$60,267 $73,478 $86,879
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c i t y o u t l i n e
DALLAS FAST FACTSpopulationDallas is the 9th largest city in the US and the third largest in Texas with a population of 1,281,047.
metropolitan statistical areaThe 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 visitors24.9 million annual visitors to the City of Dallas, with 48.9 million visiting the Metro area
accessibilityDallas 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.
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Dallas-Fort Worth MSA
1.26 MILLION
25 MILLION
$4.3 BILLION
POPULATION
VISITORS PER YEAR
2015 TOURISM ECONOMIC IMPACT
DALLAS BY THE NUMBERSThe 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. The Metroplex also contains the largest Information Technology industry base in the state. On the other end of the business spectrum, and on the other side of the Metroplex, the Texas farming and ranching industry is based in Fort Worth.
Much of the success can be attributed to the 21 Fortune 500 companies headquarters in North Texas, Jackson said. These companies collectively generated more than $807 billion in revenue in the past year, which is an increase of more than $13 billion from the previous
year, according to North Texas Commission calculations.
Additionally, like the state overall, North Texas has been experiencing booming population growth.
E l P o l l o L o c o , D a l l a s T X | 1 7
Company Location
Exxon Mobil Irving
AT&T Dallas
Energy Transfer Equity Dallas
American Airlines Group Fort Worth
Tenet Healthcare Dallas
Southwest Airlines Dallas
Kimberly-Clark Irving
FORTUNE 500 COMPANIES
PROFESSIONAL SPORTS
The Dal las Cowboys are a professional American footbal l team based in the Dal las–Fort Worth metroplex. The Cowboys compete in the Nat ional Footbal l League (NFL) as a member c lub of the league’s Nat ional Footbal l Conference (NFC) East d iv is ion. The team is headquartered in Fr isco, Texas, and plays i ts home games at AT&T Stadium in Ar l ington, Texas.
The Dal las Maver icks (of ten referred to as the Mavs) are an American professional basketbal l team based in Dal las . The Maver icks compete in the Nat ional Basketbal l Associat ion (NBA) as a member c lub of the league’s Western Conference Southwest Div is ion. The team plays i ts home games at the American Air l ines Center.
The Texas Rangers are an American professional basebal l team based in Ar l ington, Texas, located in the Dal las–Fort Worth metroplex. The Rangers f ranchise is current ly a member of the West d iv is ion of the American League (AL) in Major League Basebal l (MLB) . S ince 1994, the Rangers have played in Globe Li fe Park in Ar l ington in Ar l ington, Texas.
The Dal las Stars are a professional ice hockey team based in Dal las , Texas. They are members of the Centra l Div is ion of the Western Conference of the Nat ional Hockey League (NHL) . The team was founded dur ing the 1967 NHL expansion as the Minnesota North Stars , based in Bloomington, Minnesota.
Fluor Corporation Irving
Holly Frontier Dallas
Texas Instruments Dallas
J.C. Penney Plano
Jacobs Engineering Dallas
D.R. Horton Fort Worth
GameStop Grapevine
Dean Foods Dallas
Alliance Data Systems Plano
Trinity Industries Dallas
Dr Pepper Snapple Group Plano
Commercial Metals Irving
Celanese Dallas
Energy Future Holdings Dallas
NFL - Dallas Cowboys
NBA - Dallas Mavericks
MLB - Texas Rangers
NHL - Dallas Stars
This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of El Pollo Loco located at 19455 Forest Ln, Dallas, TX 75243 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.
By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:
1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;
2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and
3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.
Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.
I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.
A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.
This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.
C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T
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G A RY C H O UFVP & SENIOR [email protected] (310) 919-5827MOB (714) 928-8016LIC # 01911222
K E V I N C H A N GASSOCIATE
[email protected] (310) 919-5828MOB (951) 616-8918LIC # 01976724
K Y L E M AT T H E W SBROKER OF RECORD
LIC # 678067
™