om el centro ca - jesse lee s imperial ave... · el centro is the county seat of imperial county,...
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R E A L T Y A D V I S O R S
REPRESENTATIVE PHOTO
Offering Memorandum Montgomery
KFC | El Centro, CA
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Confidential DisclaimerThe information contained in this Offering Memorandum is proprietary and strictly
con�dential. This Offering Memorandum is intended to be reviewed only by the
party receiving it from Montgomery Realty Advisors and should not be made avail-
able to any other person or entity without the written consent of Montgomery Realty
Advisors.
This Offering Memorandum includes certain unveri�ed information pertaining to
the subject property and does not purport to be to be all-inclusive or to contain all
or part of the information which prospective purchasers may require to evaluate the
subject property. Interested parties are expected to conduct a thorough due
diligence investigation of the subject property without reliance of the information
contained herein. Montgomery Realty Advisors has not made any investigation and
makes no representation or warranty with respect to the subject property including
information provided regarding the income or expenses for the subject property,
the future projected �nancial performance of the property, the size and square foot-
age of the property and improvements or the physical condition of the improve-
ments thereon. The information contained in this Offering Memorandum is based
on information and sources believed to be reliable. Neither Montgomery Realty
Advisors, nor any of its directors, of�cers, af�liates or representatives make any
representation or warranty, express or implied, regarding the accuracy or com-
pleteness of this Offering Memorandum or any of its contents.
R E A L T Y A D V I S O R S
415-570-9316
CA BRE# 01856228
Managing Director
JUSTIN STARK
Offered Exclusively By:
Montgomery
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Montgomery
Purchase Price:$2,720,000
Cap Rate:5.00%
Investment Highlights
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BRAND NEW 20-YEAR SALE LEASEBACKNew 20-year absolute NNN lease with 10% rental increases every �ve (5) years
STRONG STORE SALESThe subject property is a top performing store for the Tenant, with sales substantially above KFC system average
STRONG INTERSTATE LOCATIONThe subject property is positioned at a signalized intersection with substantial exposure from Interstate 8 (48,000 VPD on I-8)
REMODEL SCHEDULEDThe Tenant is investing signi�cant capital in the subject property to be re-imaged to KFC’s latest prototype (American Showman), demonstrating a long term commitment to this high performing store
Montgomery Realty Advisors is pleased to offer for sale a new 20-year absolute NNN lease KFC investment located in El Centro, CA. The subject property, which is a top performing KFC restaurant, has been operating in this location for over 30 years and is scheduled to be substantially remodeled to KFC’s new prototype in 2017. The lease contains a strong personal guaranty from the operator. The property is situated on the corner of a signalized intersection located off of Interstate 8 and has signi�cant exposure to traf�c counts of over (48,000 VPD on I-8).
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Lease Abstract
Rent Schedule
Brand:
Building Address:
Tenant:
Building SF:
Land Area:
Rent Commencement
Lease Term:
Annual Rent:
Rent Increases:
Renewal Options:
Expenses:
20 years
10.0% every Five (5) years
Four (4), Five (5) year options
Absolute NNN
Years 1-5
Years 6-10
Years 11-15
Years 16-20
Years 21-25 (Option 1)
Years 26-30 (Option 2)
Kentucky Fried Chicken (KFC)
Noble Pursuit, LLC (Personal Guaranty)
1775 S Imperial Avenue, El Centro, CA
Approx 1,496 SF
Approx 0.45 Acres
August 29, 2017
$135,987
$135,987
$149,586
$164,545
$180,999
$199,099
$219,009
Years 31-35 (Option 3) $240,910
Years 36-40 (Option 4) $265,001 REPRESENTATIVE PHOTO
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El Centro is the county seat of Imperial County, California and the east anchor of the Southern California Region. It is located near San Diego and Mexicali, Mexico. The 2010 census states a population of approximately 43,000 residents.
The El Centro economy’s primary employers are the California local and the state government, federal government, two prisons, and the U.S. Border Patrol. The area is surrounded by thousands of acres of farmland with an annual crop production of over $1 billion.
Each year, thousands of visitors �ock to the nearby Aldodones Dunes, the largest dune �eld in the U.S. Other nearby attractions include the Salton Sea and the Colorado River. The Blue Angels hold their annual �ight maneurving event at El Centro Naval Air Facility and Stark Field is home to the El Centro Imperials of the Arizona Summer League. Nearby Mexicali, Baja California offers musuems, zoo, and a sports/convention center.
Market Overview
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Tenant Overview
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KFC CorporationFounded more than 65 years ago and based in Louisville, Kentucky, KFC Corporation is the franchisor of the world’s most popular chicken restaurant chain, KFC.
There are over 20,500 KFC outlets in more than 125 countries and territories worldwide, serving in excess of 12 million customers per day.
KFC is a part of Yum! Brands, Inc. (“Yum!”), the parent company for iconic restaurant brands - KFC, Taco Bell and Pizza Hut - with nearly 44,000 restaurants in more than 135 countries and territories worldwide. Yum! is publicly traded on the New York Stock Exchange (Ticker: YUM) with a market capitalization in excess of $26 billion as of September 1, 2017.
Noble Pursuit, LLCNoble Pursuit, LLC (“Noble Pursuit”) is a Southern California-based KFC restaurant operator run by a former executive of The Pillsbury Company and General Mills; Noble Pursuit is strategically focused on the operation and expansion of world-class, high performing KFC restaurants in select Southern California and Arizona markets.
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DemographicsPOPULATION
Total Population 48,157
Total Households 12,631
INCOME
Median Household Income
Average Household Income
$40,878
$59,170
S IMPER
IAL AVE
OCOTILLO DR
KUMEYAAY HWYKUMEYAAY HWY
OCOTILLO DR
Justin Stark | Managing Director
CA BRE# 01856228
MONTGOMERY REALTY ADVISORS
535 Paci�c Avenue, Suite 100 | San Francisco, CA 94133
CA BRE# 01970372