OFFERING MEMORANDUM EL POLLO LOCO 9455 Forest Ln, TX El Pollo Loco, TX 1
A B R A M S R O A D S U B J E C T P R O P E R T Y traffic counts INTERSTATE 635...±188,000 ADT 2 Matthews Real Retail Estate Advisors Investment Services ABRAMS ROAD...±21,000 ADT
contents 04 EXECUTIVE SUMMARY 06 financial OVERVIEW 10 tenant overview 14 area OVERVIEW exclusively listed by GARY CHOU FVP & SENIOR DIRECTOR STNL Gary.Chou@matthews.com DIR (310) 919-5827 MOB (714) 928-8016 LIC # 01911222 KEVIN CHANG ASSOCIATE Kevin.Chang@matthews.com DIR (310) 919-5828 MOB (951) 616-8918 LIC # 01976724 KYLE MATTHEWS BROKER OF RECORD LIC # 678067 El Pollo Loco, TX 3
executive summary investment highlights 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 4 Matthews Real Estate Investment Services
property overview El Pollo Loco Gross Leasable Area Lot Size 9455 Forest Ln, TX 75243 ± 2,800 SF ±.74 Acres (32,234 SF) Year Built 2017 Assessor s Parcel Number Number of Stories Parking 008417000001A0000 One ±29 Free Surface Spaces El El Pollo Pollo Loco, Loco, TX TX 5 5
financial overview 6 Matthews Real Estate Investment Services
el pollo loco 9455 Forest Ln, 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 Data Monthly 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 El Pollo Loco, TX 7
lease abstract 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 Options Current NOI Increases Taxes 20 Years Four (4), 5-Year; Tenant must give Six (6) month notice $160,000; Next Increase 1/1/2022 10% Every 5 Years; 10% Every 5 Years in Options Tenant Responsible Insurance Tenant Responsible Utilities Tenant Responsible Repairs Tenant Responsible Roof & Structure Tenant Responsible Right of First Refusal Ten (10) Days 8 Matthews Real Estate Investment Services
site plan Not A Part Abrams Road ±21,000 ADT DRIVE THRU Forest Lane ±31,000 ADT El Pollo Loco, TX 9
tenant overview 1 0 Matthews Real Estate Investment Services
Property Name Parent Company Trade Name Ownership Revenue Net Income El Pollo Loco El Pollo Loco Holdings, Inc. Public $355.06M $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 Mexicanstyle 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. El Pollo Loco, TX 1 1
the offering parcel map Property Name Property Address Assessor s Parcel Number Zoning Site Description Number of stories El Pollo Loco 9455 Forest Ln, TX 75243 00-84170-000-01A-0000 One Year built 2016 GLA 2,800 Lot (Acres) ±0.73 Type of Ownership Landscaping Topography Foundation Framing Exterior Parking Surface Roof Ground Lease Professional Generally Level Concrete Slab Steel Brick Asphalt Flat Oceanside Blvd ± 31,792 FOREST LANE ±31,000 ADT College Blvd ± 40,116 ±188,000 ADT 1 2 Matthews Real Estate Investment Services
tenant map Pioneer Blvd ±20,000 ADT TRAFFIC COUNTS Interstate 635 ±188,000 ADT Forest Lane ±31,000 ADT El Pollo Loco, TX 1 3
, Texas is a center for corporate America. Because of its central location relative to the rest of the United States, 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 - 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 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 1 4 Matthews Real Estate Investment Services
DALLAS FAST FACTS population is the 9th largest city in the US and the third largest in Texas with a population of 1,281,047. metropolitan statistical area The -Fort Worth Arlington MSA consists of 12 counties: Collin,, Delta, Denton, Ellis, Hunt, Johnson, Kaufman, Parker, Rockwall, Tarrant and Wise and has a population of 6,954,330. annual visitors 24.9 million annual visitors to the City of, with 48.9 million visiting the Metro area accessibility is centrally located and within a four-hour flight from most North American destinations. It is served by two airports; /Ft. Worth International and Love Field that combined provide more than 2,200 flights daily. AMTRAK also provides daily service to via Union Station. city outline El Pollo Loco, CVS, Norwalk TX CA 1 51 5
-Fort Worth MSA The -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. 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. DALLAS BY THE NUMBERS 1.26 MILLION POPULATION 25 MILLION VISITORS PER YEAR $4.3 BILLION 2015 TOURISM ECONOMIC IMPACT 1 6 Matthews Real Estate Investment Services
PROFESSIONAL SPORTS NFL - Cowboys The Cowboys are a professional American football team based in the Fort Worth metroplex. The Cowboys compete in the National Football League (NFL) as a member club of the league s National Football Conference (NFC) East division. The team is headquartered in Frisco, Texas, and plays its home games at AT&T Stadium in Arlington, Texas. MLB - Texas Rangers The Texas Rangers are an American professional baseball team based in Arlington, Texas, located in the Fort Worth metroplex. The Rangers franchise is currently a member of the West division of the American League (AL) in Major League Baseball (MLB). Since 1994, the Rangers have played in Globe Life Park in Arlington in Arlington, Texas. NBA - Mavericks The Mavericks (often referred to as the Mavs) are an American professional basketball team based in. The Mavericks compete in the National Basketball Association (NBA) as a member club of the league s Western Conference Southwest Division. The team plays its home games at the American Airlines Center. NHL - Stars The Stars are a professional ice hockey team based in, Texas. They are members of the Central Division of the Western Conference of the National Hockey League (NHL). The team was founded during the 1967 NHL expansion as the Minnesota North Stars, based in Bloomington, Minnesota. FORTUNE 500 COMPANIES Company Location Fluor Corporation Irving Alliance Data Systems Plano Exxon Mobil Irving Holly Frontier Trinity Industries AT&T Texas Instruments Dr Pepper Snapple Group Plano Energy Transfer Equity J.C. Penney Plano Commercial Metals Irving American Airlines Group Fort Worth Jacobs Engineering Celanese Tenet Healthcare D.R. Horton Fort Worth Energy Future Holdings Southwest Airlines GameStop Grapevine Kimberly-Clark Irving Dean Foods El Pollo Loco, TX 1 7
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of El Pollo Loco located at 19455 Forest Ln,, TX 75243 ( Property ). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
exclusively listed by GARY CHOU FVP & SENIOR DIRECTOR STNL Gary.Chou@matthews.com DIR (310) 919-5827 MOB (714) 928-8016 LIC # 01911222 KEVIN CHANG ASSOCIATE Kevin.Chang@matthews.com DIR (310) 919-5828 MOB (951) 616-8918 LIC # 01976724 KYLE MATTHEWS BROKER OF RECORD LIC # 678067 EL POLLO LOCO 9455 Forest Ln, TX El Pollo Loco, TX 1 9