Taco Bell

4402 West Glendale Ave | Glendale, Arizona

Case Study

The site was placed under contract with no lease in place with Taco Bell. This Taco Bell location has been a solidly performing store for 30+ years. During the due diligence period, the LLC negotiated a new lease and committed to a renovation of the 1970’s era building. The seller did not have the capital to renovate the facility and the tenant was reluctant to spend over $250,000 in interior improvements to the facility without a lease. The total acquisition cost includes full exterior remodel completed in 2013. The Taco Bell franchisee paid for the new interior upgrade package. The operator is a very successful Phoenix based franchisee with 117 Yum brand units. The store franchise agreement extends through 2019 and will be renewed for additional 10-years. Once redeveloped, the unit was fully ADA compliant and resembled a new Taco Bell outlet. The site is located in a “fast food corridor” on Glendale Avenue with excellent demographics for a fast food restaurant. The new exterior will compliment Yum branding programs. In April 2015, this asset was sold to an AZ based investor at a substantial gain to the investors. Proceeds were invested as a 1031 tax deferred exchange into a Fresenius SE & Co. HGAA (ETR:FRE) dba Fresenius Medical Care (FMCc) facility in Baton Rouge, LA. Investors benefited from the sale and acquisition by receiving increased monthly cash flow, superior tenant credit and a longer lease term (see FMC Baton Rouge, LA).

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