TACO BELL3 3 5 0 R I N C O N A D A B LV D | L A S C R U C E S , N M 8 8 0 0 4

O F F E R I N G M E M O R A N D U M

™

REPRESENTATIVE PHOTO

Year Built

2014

Square Footage

± 2,016

List Price

$1,078,000

Cap Rate

4.50%

Property Name

Taco Bell

CALVIN SHORTSVP & Senior Directorcalv in.short@matthews.comDIR 949.432.4506MOB 310.567.3525LIC # 01927216 (CA)

Kyle MatthewsLIC # 19601 (NM)

BROKER OF RECORD

LISTED BY

REPRESENTATIVE PHOTO

JAKE REDFEARNPrinciplejake@1stval ley.comDIR 575.521.1535MOB 575.635.5895

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E X E C U T I V EO V E R V I E W

INVESTMENT HIGHLIGHTS:

• Original 20-year term, with 15+ years remaining on an absolute NET Land Lease

• This ground lease provides an investor with a complete hands-off ownership position, below market rent and a signifi-cant capital contribution from the tenant who developed the property

• Scheduled 10% rental increases every 5 years throughout the term

• Taco Bell is one of the most successful restaurant brands in the world, with over 6,500 locations and a growth plan to reach over $15 billion in global system sales by 2022

• Directly across from a recently developed Walgreens and adjacent to the only Walmart Supercenter serving north Las Cruces

• Taco Bell is just off Interstate 70 which is a north/south thoroughfare serving Las Cruces and 7.6 miles from New Mex-ico State University which has over 12,000 undergraduates enrolled and is New Mexico’s oldest public institution hav-ing been founded in 1888

• Good mix of surrounding national retailers such as Lowe’s, Sam’s Club, Kohl’s, Starbucks, and Panda Express

• Strong average household income of over $80,000 within a 1-mile radius and population growth of over 15% over the past 10 years

• Positioned in the center of the growth corridor for Las Cruces, with strong surrounding revenue metrics – see broker for details

• Taco Bell has an exclusive use agreement in place for the entire development, protecting against future competition from Chipotle, Del Taco, etc.

• Below market, rent providing for low probability of relocation or rent adjustment at the expiration of the 20-year term

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LEASE SUMMARY

Tenant Trade Name Taco Bell

Type of Ownership Absolute NET Land Lease

Lease Guarantor Corporate

Lease Commencement Date 11/21/2013

Rent Commencement Date 8/1/2014

Lease Expiration Date 7/31/2034

Original Lease Term 20 Years

Years Remaining ±15.43 Years

Options Four (4), 5-Year Options

Increases 10% Every 5 Years

ANNUALIZED OPERATING DATA

Lease Commence Lease End Monthly Rent Annual Rent Cap Rate

8/1/19 7/31/24 $4,044.15 $48,529.80 4.50%

8/1/24 7/31/29 $4,448.57 $53,382.84 4.95%

8/1/29 7/31/34 $4,893.42 $58,721.04 5.45%

Option 1 $5,382.76 $64,593.12 5.99%

Option 2 $5,921.04 $71,052.48 6.59%

Option 3 $6,513.14 $78,157.68 7.25%

Option 4 $7,164.46 $85,973.52 7.98%

EXECUTIVE SUMMARY

Property Name Taco Bell

Gross Leasable Area ± 2,016 SF

Year Built 2014

Lot Size ± 0.93 AC (40,511 SF)

APN 4-009-131-131-399

FINANCIAL HIGHLIGHTS

LIST PRICE

$1,078,000

CAP RATE

4.50%

TERM REMAINING

±15.43 Years

F I N A N C I A LO V E R V I E W

Representative Photo

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Operating as a subsidiary of Yum! Brands, Inc., Taco Bell Corp. owns operates, and franchises a chain of Mexican-inspired quick service restaurants in the United States. The company’s restaurants offer made to order and customizable tacos, burritos, quesadillas, gorditas, nachos, chalupas, beverages, desserts and sides, and other specialty items. As the leading Mexican-inspired quick service restaurant brand, Taco Bell and its more than 350 franchise organizations proudly serve over 42 million customers each week through nearly 7,000 restaurants across the nation, as well as through its mobile, desktop and delivery ordering services. Overseas, Taco Bell has over 250 restaurants, with plans to add 2,000 more restaurants internationally within the next decade. In 2016, Taco Bell was named as one of Fast Company’s Top 10 Most Innovative Companies in the World. Taco Bell plans to have 8,000 restaurants by the year 2023, which is anticipated to add an estimated 100,000 jobs nationwide.

TACO BELL

P A R E N T C O M P A N Y T R A D E N A M E Y U M ! B R A N D S , I N C . ( N Y S E : Y U M )

H E A D Q U A R T E R E DI R V I N E , C A L I F O R N I A

W E B S I T EW W W .T A C O B E L L . C O M

# O F L O C A T I O N S± 6 , 5 0 0

# O F E M P L O Y E E S± 1 7 5 , 0 0 0

C R E D I T R A T I N G ( S & P )B B

Y E A R F O U N D E D1 9 5 4

T E N A N T O V E R V I E W

For more information, please click below:

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Oceanside Blvd ± 31,792

Col

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Blv

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40,11

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S ITE PLAN

TENANT SUMMARY

Property Address3350 Rinconada Blvd

Las Cruces, NM 88004

SITE DESCRIPTIONNumber of Stories One

Year Built 2014

GLA ±2,016 SF

Lot Size ± 0.93 AC (40,511 SF)

Type of Ownership Ground Lease

Landscaping Professional

Topography Generally Level

THE OFFERING

P R O P E R T YO V E R V I E W

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S U R R O U N D I N GT E N A N T S

DISTANCE TO:

New Mexico State University

Las Cruces International Airport

White Sands National Monument48 MI

13.6 MI

7.6 MI

HWY 70

±7,000 V

PD

8

HWY 70 ±7

,000 V

PD

RINCONADA BLVD

E NORTHRIS

E DRIV

E

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Las Cruces is the economic and geographic center of the Mesilla Valley, the

agricultural region on the floodplain of the Rio Grande which extends from Hatch

to the west side of El Paso, Texas. Las Cruces is the home of New Mexico State

University (NMSU), New Mexico’s only land-grant university. The city’s major

employer is the federal government on nearby White Sands Test Facility and White

Sands Missile Range. Spaceport America, which has corporate offices in Las Cruces,

operates from 55 miles to the north and has completed several successful manned,

suborbital flights. The city is also the headquarters for Virgin Galactic, the world’s first

company to offer sub-orbital spaceflights.

The Organ Mountains, 10 miles to the east, are dominant in the city’s landscape,

along with the Doña Ana Mountains, Robledo Mountains, and Picacho Peak. Las

Cruces lies 225 miles south of Albuquerque, 48 miles northwest of El Paso, Texas

and 46 miles north of the Mexican border at Santa Teresa. The sun almost always

seems to be shining in Las Cruces, which enjoys on average 350 days of clear blue

skies per year, making it the perfect base to explore the breathtaking surrounding

area.

POPULATION 1 Mile 3 Mile 5 Mile

2010 Census 3,219 44,233 48,876

2019 Estimate 4,023 38,910 43,054

2024 Projection 4,339 36,846 40,795

Growth 2010-2019 24.98% 14.31% 5.81%

Growth Projection 2019-2024 7.86% 5.31% 2.67%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2010 Census 1,327 15,386 38,415

2019 Estimate 1,671 17,814 41,247

2024 Projection 1,807 18,835 42,543

Growth 2010-2019 25.92% 15.78% 7.37%

Growth Projection 2019-2024 8.14% 5.73% 3.14%

INCOME 1 Mile 3 Mile 5 Mile

2019 Est. Average Household Income

$84,333 $74,704 $64,507

LAS CRUCES, NM DEMOGRAPHICS

A R E A O V E R V I E W

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NMSU is New Mexico’s land-grant institution, a comprehensive research institution of higher education dedicated to teaching, research, and service at the undergraduate and

graduate levels. NMSU is a NASA Space Grant College, a Hispanic-serving institution and is home to the very first Honors College in New Mexico. The university has been

recognized as a top tier university by U.S. News & World Report.

With educational and administrative locations in every county, NMSU continues to provide the people of New Mexico with easily accessible and practical, research-based

knowledge and programs to improve their quality of life as well as their community. The university provides learning opportunities to a diverse population of students across

five different campuses, within a satellite learning center in Albuquerque, cooperative extension offices located in each of New Mexico’s 33 counties, 12 research and science

centers and through distance education.

The New Mexico State University System is a premier education center quantifiable excellence in teaching, research, extension, outreach, service, economic development,

and community engagement relative to its peer institutions.

NEW MEXICO STATE UNIVERSITY

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REPRESENTATIVE PHOTO

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Taco Bell located at 3350 Rinconada Blvd | Las Cruces, NM (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

TACO BELL3 3 5 0 R I N C O N A D A B LV D | L A S C R U C E S , N M 8 8 0 0 4

™EXCLUSIVELY LISTED BYCALVIN SHORTSVP & Senior Directorcalv in.short@matthews.comDIR 949.432.4506MOB 310.567.3525LIC # 01927216 (CA)

Kyle MatthewsLIC # 19601 (NM)

BROKER OF RECORD REPRESENTATIVE PHOTOJAKE REDFEARNPrinciplejake@1stval ley.comDIR 575.521.1535MOB 575.635.5895