Popeye’s located the Northern California Bay Area is this week’s candidate for Triple Net property of the week.
This is a newly built store.
Operated by a franchisee with 30 other franchise stores.
On a highway 99 off ramp across from several other fast food restaurants
In Merced, a growing Central Valley City
In an industry that is so far immune from cannibalization by Amazon.
It has a new 20 year lease with 2 – 5 year options
Lease payments increase 10% every 5 years.
The 4.18% cap rate reflects the relatively low perceived risk in this investment.