pizza hut (npc international) 4030 singleton parkway memphis, … · 2018-06-06 · net leased...

Pizza Hut (NPC International)4030 Singleton ParkwayMemphis, TN 38128

NET LEASE INVESTMENT OFFERING

TABLE OF CONTENTS

TABLE OF CONTENTS

II. Location Overview Photographs Aerial Site Plan Map

III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview

I. Executive Profile Executive Summary Investment Highlights Property Overview


DISCLAIMERSTATEMENT:

DISCLAIMER STATEMENT

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 The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum 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. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group 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.


EXECUTIVESUMMARY:

EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale the fee simple interest in a single tenant absolute triple net leased Pizza Hut located in Memphis Tennessee. The property is strategically located in a heavily trafficked retail corridor. The Pizza Hut lease expires August 31, 2021 and features and four 5-year renewal option periods. The lease is guaranteed by NPC International, the world’s largest Pizza Hut Franchisee. NPC International currently operates more than 1,226 Pizza Hut units in 27 states and more than 184 Wendy’s units in 5 states.

The 3,509 square foot building sits on a 1.0 acre parcel along Singleton Parkway (18,241 VPD) and just off of Austin Peay Highway (23,381 VPD). The property has excellent visibility and easy interchangeable access along the north-south thoroughfare. The Pizza Hut is located near multiple residential communities, businesses and schools. Retailers located in the area include Walmart Supercenter, Walgreens, Firestone and Kroger. Additionally, the property is located across from Methodist North Hospital (246 Beds). There are 139,939 people living within a five-mile radius of the property and the average household income is approximately $70,000 within 3 miles.

Pizza Hut has 16,796 locations worldwide making it the world’s largest pizza restaurant chain and fourth largest fast-food chain (as measured by units). Pizza Hut is a subsidiary of Yum! Brands, which also owns KFC and Taco Bell. Yum! Brands has over 45,000 restaurants in more than 135 countries and territories, making it one of the world’s largest restaurant companies. Yum! Brands, Inc is a publically traded company on the New York Stock Exchanges using the symbol “YUM”.


INVESTMENT HIGHLIGHTS:

INVESTMENT HIGHLIGHTS

• Store sales are well above average for a Pizza Hut

• Located in Memphis

• Tennessee is a tax free state

• NPC International is the world’s largest Pizza Hut Franchisee

• Absolute triple net with zero landlord responsibilities

• Exceptional visibility and easy access

• Drive-thru

• 139,939 people live within five miles of the property

• Retailers located in the immediate area include Walmart Supercenter, Walgreens, Firestone and Kroger

• Located across from Methodist North Hospital (246 Beds)

• Rental escalations in each option period

• Average household income of approximately $70,000 within three miles of the property


PROPERTY OVERVIEW:

PROPERTY OVERVIEW


Price: $1,323,700

Cap Rate: 13.00%

Net Operating Income: $172,081

Rental Escalations: 5% in each option

Renewal Options: Four 5-Year

Lease Commencement Date: August 31, 2001

Lease Expiration Date: August 31, 2021

Guarantor: NPC International, Inc.

Year Built: 2000

Lease Type: NNN - No Landlord Responsibilities

Building Size: 3,509 SF

Land Size: 1.0 Acres


PHOTOGRAPHS


AERIAL


SITE PLAN

MAP


MAP

DEMOGRAPHICREPORT:

DEMOGRAPHIC REPORT

Population 1-Mile 3-Mile 5-Mile

Total Population 6,679 61,861 139,939

Total Households 2,423 21,819 49,656

Income 1-Mile 3-Mile 5-Mile

Median Household Income $55,764 $55,383 $52,174

Average Household Income $72,822 $69,475 $66,137


MARKET OVERVIEW

MARKETOVERVIEW:

Memphis, TennesseeMemphis is a city located in southwestern Tennessee and is the county seat of Shelby County. Memphis had a population of 652,717 in 2016. The greater Memphis metropolitan area, including adjacent counties in Mississippi and Arkansas, had a 2010 population of 1,369,548. This makes Memphis the second-largest metropolitan area in Tennessee, surpassed only by metropolitan Nashville. Memphis is the youngest of Tennessee’s major cities.

The city’s central location has led to much of its business development. Located on the Mississippi River and intersected by five major freight railroads and two Interstate Highways, I-40 and I-55, Memphis is ideally located for commerce in the transportation and shipping industry. A third interstate, I-69, is under construction, and a fourth, I-22, has recently been designated from the former High Priority Corridor X. The city is home to Memphis International Airport, the world’s second busiest cargo airport (following Hong Kong), which serves as a primary hub for FedEx Express shipping. Memphis is the home of three Fortune 500 companies: FedEx, AutoZone, and International Paper.


TENANT OVERVIEW

TENANT OVERVIEW:

Pizza HutPizza Hut is an American restaurant chain and international franchise founded in 1958 by Dan and Frank Carney. The company is known for its Italian-American cuisine menu including pizza and pasta, as well as side dishes and desserts. In 2003, WingStreet was introduced as a hybrid combo tenant with existing Pizza Hut franchises. The two brands are almost always located together. WingStreet restaurants sell breaded and traditional Buffalo wings for take-out and delivery.

Pizza Hut is headquartered in Plano, Texas and has over 16,000 locations worldwide. It is the world’s largest pizza restaurant chain and fourth largest fast-food chain (as measured by units). Pizza Hut is a subsidiary of Yum! Brands, which also owns KFC and Taco Bell. Yum! Brands has over 45,000 restaurants in more than 135 countries and territories, making it one of the world’s largest restaurant companies. Yum! Brands, Inc is a publically traded company on the New York Stock Exchanges using the symbol “YUM”.

In July 2017, Yum! Brands announced plans to invest $130 million in Pizza Hut to upgrade equipment improve restaurant technology and boost advertising spending through 2018. Pizza Hut will be hiring 14,000 new delivery drivers by the end of 2017.

Website: www.pizzahut.comNumber of Locations: 16,796Number of Employees: 350,000 +/-Headquarters: Plano, TexasParent Company: Yum! BrandsParent Stock Symbol: YUM (NYSE)Market Capitalization: $26 billion

NPC International, Inc.NPC International, Inc. currently operates more than 1,226 Pizza Hut units in 27 states and more than 184 Wendy’s units in 5 states making them the world’s largest Pizza Hut Franchisee. NPC International is the seventh largest restaurant unit operator in the United States and currently employs over 36,000 individuals. Founded in 1962, they have been operating Pizza Hut locations since the 1980’s and have been growing their Pizza Hut holdings consistently over the past two decades. NPC is now the largest Pizza Hut franchisee in the United States and represent approximately 20 percent of the domestic Pizza Hut restaurant system.

Website: www.npcinternational.comNumber of Locations: 1,410Number of Employees: 36,000 +/-Headquarters: Overland Park, Kansas

Randy [email protected]

Jimmy [email protected]

3520 Lake Avenue, Suite 203Wilmette, IL 60091

www.bouldergroup.com

pizza hut (npc international) 4030 singleton parkway memphis, … · 2018-06-06 · net leased...

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