Globally Recognized Tenant: Kentucky Fried Chicken (“KFC”) – Strong Operator – Kentucky Fried Chicken (“KFC”), is the world’s most popular chicken restaurant chain with over 20,500 KFC outlets in more than 125 countries and territories around the world. Headquartered in Louisville, Kentucky, KFC is owned by Yum! Brands, Inc., which also owns Pizza Hut and Taco Bell and reported a company revenue of $6 billion in 2016.
The Franchisee is a successful KFC Operator with over 85 KFC locations in 12 states (operated under multiple store entities). The Franchisee has been in the KFC system for over 23 years and is recognized as a Preferred Growth Partner with KFC Corporate.
5.3% Rent to Sales Ratio – Unit Level Sales 18% Above KFC National Average – Highly Profitable Location – The Tenant has reported an ideal 5.3% rent to sales ratio along with unit level sales that are roughly 18% above KFC’s national average (Source: Statistica.com). This alleviates any future vacancy risk concerns and provides a future investor with a long-term passive income stream.
Long Term Absolute NNN Lease – Rent Growth – Zero Landlord Responsibilities – The original 17 year lease has 14+ years remaining and features 1.5% annual rent increases in the Primary term as well as throughout the (4) 5 year Option Periods. In addition, the triple-net (NNN) lease provides an investor with zero landlord responsibilities.
Located on Historic Route 66 – First Exit Off I-40 from Albuquerque – Excellent Visibility & Access – The subject property is located near the first exit tavelers encounter arriving from Albuquerque, with frontage along Historic Route 66, a major corridor to downtown Gallup used by travelers and commuters in the area. The site offers excellent visibility and signage to residents and travelers alike, as well as easy in/out access to the property.
Surrounded by City Offices, Schools, Residential – Strong Retail Synergy – The Property is surrounded by 1200 households within a 1-mile radius, and strategically located close to the Gallup City offices, Police Department, and Motor Vehicle Dept., as well as several schools, including the Miyamura High School, providing a strong draw to the area for office and government workers and students. This central retail area features neighboring tenants including Blake’s Lotaburger, UPS Store, Verizon Wireless Sonic Drive-In, Wendy’s, McDonald’s, Days Inn, Walgreen’s, Albertsons, Pizza Hut, Baskin-Robbins, and many more, offering excellent retail synergy.
Located in the City of Gallup – Strong Economy for Transportation, Energy, Health Care – The subject property is located in the City of Gallup, the county seat of McKinley County and the most populous city between Flagstaff and Albuquerque. Gallup is a transportation hub, and its location along Interstate 40 and the Burlington North Santa Fe Railroad Transcon line provides Gallup with a strategic and competitive edge for distribution and access to major markets.
The area offers a strong variety of energy resources including oil, natural gas, coal, and solar. Since 1927, Gallup/northeast McKinley County has been produced 27.5 billion cubic-feet of oil and 6.9 billion cubic-feet of gas. With an average of nearly 280 sunny days a year, Gallup is ideally suited to take advantage of solar-energy resources.
Gallup is the regional health care hub for an estimated 200,000 people living in northwest New Mexico and northeast Arizona. The Gallup Indian Medical Center and Rehoboth McKinley Christian Hospital are two of the area’s largest providers of health care, employing nearly 2300 between them.