KFC - Odessa, TX

ODESSA, TX

PRI CING & F INAN CI AL AN ALYSI S

K F C - O D E SSA, T X

KFC

1520 John Ben Shepperd Pkwy Odessa, TX 79763

OFFERING SUMMARY Price Cap Rate Net Operating Income Year Built Gross Leasable Area Lot Size

ANNUALIZED OPERATING DATA $1,625,000 6.55%

-

1994

11 - 15

9/1/2017 (1)

$106,480

10.00%

3,056 SF

Option 1: 16 - 20

9/1/2022

FMV (2)

-

0.55 Acres

Option 2: 21 - 25

9/1/2027

FMV

-

Option 3: 26 - 30

9/1/2032

FMV

-

NET OPERATING INCOME

$106,480

15 Years

Remaining Term

3+ Years

Options to Purchase

$88,000

10.00%

8/31/2022

Options

8/15/2007

$96,800

Lease Expiration

Increases

Increase

9/1/2012

8/15/2007

Roof & Structure

Annual

6 - 10

Lease Commencement

Lease Type

1-5

Commencement

$106,480

LEASE SUMMARY Lease Term

Year(s)

NNN Tenant 10% Every 5 Year 3 x 5 Year None

Lease notes: (1) Lessee shall give Lessor written notice of its election to exercise an option not less than One-Hundred Eighty (180) days prior to expiration of the Lease Term or expiration of an Option period.

(2) Please contact Agent for more information regarding Fair Market Value excerpt in lease.

F I N A N C I A L A N A LY S I S

2

TE NA NT OVERV I EW

K F C - O D E SSA, T X

TENANT SUMMARY

KFC (the name was originally an initialism for Kentucky Fried Chicken) is a fast food restaurant chain that specializes in fried chicken and is headquartered in Louisville, Kentucky. It is the world’s second largest restaurant chain (as measured by sales) after McDonald’s, with 18,875 outlets in 118 countries and territories as of December 2013. The company is a subsidiary of Yum! Brands, a restaurant company that also owns the Pizza Hut and Taco Bell chains.

Company

KFC

Ownership

Subsidiary

Rating

BB

Agency

Standard & Poor’s

Ticker Symbol

YUM

Exchange

NYSE

Market Cap

$15.99 Billion

Sales Volume

$23 Billion

Number of Locations

20,952

Years in Business

88 Years

Headquarters

Louisville, KY

Website

kfc.com

LESSEE SUMMARY Ampex Brands is a fast-growing North Texas franchisee. The company recently purchased 77 corporate Pizza Huts in a deal worth $88 million.

In the past year, Ampex has also purchased 52 KFC restaurants in Ohio and Oklahoma in a deal worth $144 million. The company’s full portfolio stretches across 15 states and includes 128 Pizza Huts, 218 KFCs, 38 Taco Bells, 68 Long John Silver’s, and 49 Tim Hortons.

Lessee

Ampex Brands

Number of Locations

500+

Headquarters

Richardson, TX

Website

ampexbrands.com

F I N A N C I A L A N A LY S I S

3

I N VE S TMENT HI GHLI GHT S

• Property Underwent KFC’s New Image Upgrade in 2018. Upgrades Include: New Paint, Walk-In Cooler, Updated Dining Furniture/ Fixtures, and Kitchen Equipment • Walking Distance from Off-Campus Student Housing (Approximately 700 Units) • Strong & Proven Franchisee - Over 170+ Restaurant Locations

K F C - O D E SSA, T X

SNAPSHOT

Estimated Vehicles Per Day

Average Household Income

27,659

$86,050

Projected Population Growth 2018-2023

Population: 5 Mile Radius

7.69%

118,421

• Close Proximity to University of Texas of the Permian Basin - 4,200+ Undergrad Students • Zero Landlord Responsibility • Five-Mile Population Exceeds 118,400 People - 19% Increase in the Last Several Years • Average Household Income has Increased 63% Since 2000 • Traffic Counts Exceed 27,650 Vehicles Per Day Along John Ben Shepperd Pkwy

PROPERTY DESCRIPTION

4

K F C - O D E SSA, T X

John Ben Shepperd Pkwy

S I T E PL A N

PROPERTY DESCRIPTION

5

A E R I AL MA P

K F C - O D E SSA, T X

MUSIC CITY MALL

E 42N

D ST

JOH N BE N SH E PP ERD PK W Y

27,659 VPD E UN

B SIT Y R E V I

LVD

PROPERTY DESCRIPTION

6

A E R I AL MA P

BE HN JO

27,659 VPD

NS H

EP

PE

RD

PK

WY

K F C - O D E SSA, T X

PROPERTY DESCRIPTION

7

LO C AL MA P

K F C - O D E SSA, T X

PROPERTY DESCRIPTION

8

M A R KET OVERVI EW

K F C - O D E SSA, T X

Midland - Odessa, TX

OVERVIEW Midland–Odessa is a metropolitan area located in West Texas approximately halfway between El Paso and Fort Worth, Texas. In the past, the cities of Midland and Odessa experienced a rivalry of bitter competition and political intrigue. Since the early 1990s, the nature of the rivalry has changed into one of friendly competition and economic cooperation. The Midland–Odessa area today is marketed as “Two Cities, no Limits.”

Midland is the county seat of Midland County, Texas, United States, on the Southern Plains of the state’s western area. A small portion of the city extends into Martin County. At the 2010 census, the population of Midland was 111,147, and a 2015 estimate of 132,950, making it the twenty-fourth most populous city in the state of Texas. Due to the oil boom in Midland, certain officials have given population estimates above 155,000. It is the principal city of the Midland, Texas Metropolitan Statistical Area, which includes all of Midland County. The population of which grew 4.6 percent, between July 1, 2011 and July 1, 2012, to 151,662, respectively, according to the U.S. Census

Bureau. Odessa is the county seat of Ector County, Texas, United States. It is located primarily in Ector County, although a small portion of the city extends into Midland County. Odessa’s population was 99,940 at the 2010 census making it the 29th-most populous city in Texas; estimates as of July 2015 indicate a population of 159,436 in the city. It is the principal city of the Odessa Metropolitan Statistical Area, which includes all of Ector County. The metropolitan area is also a component of the larger Midland– Odessa combined statistical area, which had a 2010 census population of 278,801; a recent report from the United States Census Bureau estimates that the combined population as of July 2015 is 326,115.

In 2014, Forbes magazine ranked Odessa as the third fastest-growing small city in the United States.

Historically, the Odessa economy has been primarily driven by the area’s oil industry, booming and busting in response to rises and falls in the crude oil price.

Many of the city’s largest employers are oilfield supply companies and petrochemical processing companies.

MARKET OVERVIEW

9

D E M OG RA PHIC STAT I ST I CS

K F C - O D E SSA, T X

1 MILE

3 MILE

5 MILE

13,690 12,800 11,276 6.95% 13.52% 4,684

70,439 65,409 54,751 7.69% 19.47% 31,262

127,410 118,421 100,247 7.59% 18.13% 67,231

11,187 871 227 227 26 263 0

57,816 4,286 879 1,148 171 1,109 34

105,621 7,195 1,735 1,790 284 1,798 51

5,538 5,197 4,668 6.56% 11.33% 2,882 2,316 $86,050 $69,806

26,675 24,844 21,110 7.37% 17.69% 15,109 9,736 $80,625 $62,669

46,369 43,219 37,093 7.29% 16.52% 27,077 16,142 $74,369 $54,287

927 1,122 702 769 803 300 205 370

4,706 5,911 3,595 3,657 3,263 1,262 992 1,457

10,541 9,914 6,415 5,714 4,865 2,022 1,454 2,294

Population: 2023 Projection 2018 Estimate 2010 Census Growth 2018-2023 Growth 2010-2018 2018 Population Hispanic Origin

2018 Population by Race: White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:

Households: 2023 Projection 2018 Estimate 2010 Census Growth 2018 - 2023 Growth 2010 - 2018 Owner Occupied Renter Occupied 2018 Avg Household Income (National Avg - $75,558) 2018 Med Household Income (National Avg - $53,889)

2018 Households by Household Inc: <$25,000 $25,000 - $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 $150,000 - $200,000 $200,000+ Demographic data © CoStar 2018

MARKET OVERVIEW

10

CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential.

It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical 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. STRIVE 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, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenantâ&#x20AC;&#x2122;s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

Net Lease Disclaimer STRIVE 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, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE 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. STRIVE 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 STRIVE 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.

Information About Brokerage Services

Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.

• A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material information about the property or transaction received by the broker; • Answer the client’s questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by th e seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary: • Must treat all parties to the transaction impartially and fairly; • May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner and • buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction.

• Must not, unless specifically authorized in writing to do so by the party, disclose: ӽӽ that the owner will accept a price less than the written asking price; ӽӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽӽ any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duties and responsibilities to you, and your obligations under the representation agreement.

• Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Regulated by the Texas Real Estate Commission

Information available at www.trec.texas.gov IABS 1-0

exclusively listed 469.844.8880 | STRIVERE.COM