Taco Bell - Canyon, TX

CANYON, TX

PRI P R I CING & F INAN CI AL AN ALYSI S

TACO B E LL - C ANYO N, T X

Taco Bell 611 23rd St Canyon, TX 79015

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

ANNUALIZED OPERATING DATA $1,125,000

Commencement

Annual

Increase

1-5

9/27/2016

$64,626

-

$64,626

6-10

10/1/2021

$67,858

5.00%

2010

11-15

10/1/2026

$71,250

5.00%

16-20

10/1/2031

$74,813

5.00%

Option 1: 21-25

10/1/2036

$78,554

5.00%

Option 2: 26-30

10/1/2041

$82,481

5.00%

Option 3: 31-35

10/1/2046

$86,605

5.00%

Option 4: 36-40

10/1/2051

$90,936

5.00%

Option 5: 41-45

10/1/2056

$100,029

10.00%

5.75%

2,236 SF 0.67 Acres

LEASE SUMMARY Lease Term Lease Commencement

20 Years 9/27/2016

Lease Expiration

9/30/2036

Remaining Term

18 + Years

Lease Type Roof & Structure Increases Options Options to Purchase

Year(s)

NET OPERATING INCOME

$64,626

NNN Tenant Yes 5x5 ROFR

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

2

TE NA NT OVERV I EW

TACO B E LL - C ANYO N, T X

COMPANY SUMMARY

Taco Bell is an American chain of fast-food restaurants based in Irvine, California. A subsidiary of Yum! Brands, Inc., they serve a variety of TexMex foods, including tacos, burritos, quesadillas, nachos, other specialty items, and a variety of “value menu� items. Taco Bell serves more than 2 billion customers each year in 7,000 restaurants, more than 80 percent of which are owned and operated by independent franchisees and licensees.

Company

Taco Bell

Ownership

Alvarado Concepts, LLC

Ownership Type

Private

Number of Locations

+/-200

Headquarters

Denver, CO

Website

tacobell.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

• Long Term Absolute NNN Lease - 18+ Years Remaining

TACO B E LL - C ANYO N, T X

SNAPSHOT

• Zero Landlord Responsibility • Class ‘A’ Construction With Drive-Thru • Strong Franchisee Operator – Alvarado Operates Nearly 200 Taco Bells and Pizza Huts Across The Nation • Located on I-87, A Main Thoroughfare of Canyon and Amarillo and Located Less than a Mile from US Highway 60 • The Only Taco Bell Location in a 13-Mile Radius

Estimated Vehicles Per Day

Average Household Income

14,570

$79,981

Population Growth 2010-2018

Population: 5 Mile Radius

11.55%

19,771

• Canyon is Home to West Texas A&M University, Which Has Over 10,000 Students and is Three Blocks from the Property • Part of the Growing Amarillo Metropolitan Statistical Area, Which is Home to over 260,000 People • Population in a Five-Mile Radius is More Than 20,000 People with Growth of Over 11% in the Past Few Years in the Immediate Area • Surrounding National Tenants Include United Supermarkets, Wendy’s, McDonald’s, Sonic Drive-In, Domino’s, Pizza Hut, Ace Hardware, Anytime Fitness and Many More

PROPERTY DESCRIPTION

4

TACO B E LL - C ANYO N, T X

I N VE S TMENT HI GHLI GHT S 7/3/2018

Survey says: Taco Bell is America's favorite Mexican restaurant - MYHIGHPLAINS

National News

Survey says: Taco Bell is America's favorite Mexican restaurant By:

NBC4 Staff (https://www.myhighplains.com/meet-the-team/nbc4-staff/1101632896)  (mailto:wcmhweb@wcmh.com) Updated: Jun 29, 2018 12:33 PM CDT

FILE - This Friday, May 23, 2014, le photo, shows the sign at a Taco Bell in Mount Lebanon, Pa.

(WCMH) -- Move over, Moe's. Taco Bell is America's new "favorite Mexican restaurant."

The fast food chain beat Chipotle and Moe's Southwest Grill for the "Brand of the Year" distinction for the rst time in the 30-year history of the Harris Poll EquiTrend Study.

Moe's was Brand of the Year in 2016 and 2017 and Chipotle ranked as the No. 1 Mexican brand.

Other choices included Qdoba, Baja Fresh, and Del Taco, according to the Harris Poll.

The study measures the strongest brands in the US based on consumer response. Consumers are asked questions based on three variables: Familiarity, quality, and future consideration.

The 2018 Harris Poll EquiTrend Study is based on a sample of 77,031 U.S. consumers at least 15 years old surveyed online, in English, this year from January 3 to February 15.

PROPERTY DESCRIPTION

5

S I T E PL A N

TACO B E LL - C ANYO N, T X

PROPERTY DESCRIPTION

6

A E R I AL MA P

TACO B E LL - C ANYO N, T X

4TH AVE

7,820 VPD 23RD ST

14,570 VPD

CANYON JUNIOR HIGH SCHOOL REEVE HINGER ELEMENTARY SCHOOL

PROPERTY DESCRIPTION

7

A E R I AL MA P

TACO B E LL - C ANYO N, T X

PROPERTY DESCRIPTION

8

LO C AL MA P

TACO B E LL - C ANYO N, T X

PROPERTY DESCRIPTION

9

M A R KET OVERVI EW

TACO B E LL - C ANYO N, T X

Amarillo, TX

OVERVIEW Amarillo, originally named Oneida, is situated in the Panhandle region of Texas. The availability of the railroad and freight service provided by the Fort Worth and Denver City Railroad contributed to the city’s growth as a cattle-marketing center in the late 19th century. The city was once the self-proclaimed “Helium Capital of the World” for having one of the country’s most productive helium fields. The city is also known as “The Yellow Rose of Texas” (as the city takes its name from the Spanish word for yellow), and operates one of the largest meat-packing areas in the United States. It also is home to Cadillac Ranch, a public art instillation with several mid-twentieth century Cadillacs buried nose-first into the ground at an angle supposedly corresponding to that of the Great Pyramid of Giza in Egypt.

Although urbanization, agricultural farming, and construction have occurred over the last century in and around Amarillo, the native grasslands that dominate this region have remained largely untouched. According to the United States Census Bureau, the city has a total area of 90.3 square miles, and the Amarillo metropolitan area is the 182nd-

largest in the United States with a population of 236,113 in four counties: Armstrong, Carson, Potter, and Randall.

Amarillo’s historic homes and buildings listed on the National Register of Historic Places reflect the economic growth from around 1900 to the start of World War II. Polk Street contains many of the city’s historic downtown buildings and homes. The large historic homes on this street were built close to downtown, and homes were located on the west side of the street as a symbol of status because they would be greeted with the sunrise every morning.

Amarillo is considered the regional economic center for the Texas Panhandle as well as Eastern New Mexico and the Oklahoma Panhandle. The meat packing industry is a major employer in Amarillo; about one-quarter of the United States’ beef supply is processed in the area. The city is also the location of headquarters for the Texas Cattle Feeders Association. Petroleum extraction is also a major industry.

MARKET OVERVIEW

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D E M OG RA PHIC STAT I ST I CS

TACO B E LL - C ANYO N, T X

1 Mile

3 Mile

5 Mile

10,046 9,438 8,461 6.44% 11.55% 2,089

17,439 16,396 14,782 6.36% 10.92% 3,113

20,889 19,771 18,611 5.65% 6.23% 3,587

8,565 387 82 232 14 157 9

15,179 497 135 302 22 261 15

18,402 544 169 323 23 310 15

3,783 3,568 3,289 6.03% 8.48% 1,504 2,064 $59,573 $40,361

6,549 6,181 5,715 5.95% 8.15% 3,374 2,807 $75,682 $54,243

7,775 7,381 7,086 5.34% 4.16% 4,391 2,991 $79,981 $59,086

1,172 877 535 332 267 89 220 76

1,572 1,353 989 674 594 207 468 324

1,672 1,546 1,265 851 733 310 570 434

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 2018 Med Household Income

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 2017

MARKET OVERVIEW

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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

WILL MERRITT

Associate 469-844-8021 WMerritt@StriveRE.com

ADAM GOTTSCHALK

Vice President 469-844-8890 AGottschalk@StriveRE.com

ARRA COLEMAN

Lyons Realty 806-224-7187 Arra@806homes.com