There are 4 Local Burger King locations which have just come on the market in Salinas and Hollister.
They range in price from $2,748,400 to $4,627,489
All offer a 4.5% initial cap rate, with 1.75% increases annually with 18.5 years to run on new leases and (4) 5 year options to renew.
These should offer you trouble free income for years at a much better rate of return than banks. And, at the end of the lease, you still own the property.
Tenant is responsible for all taxes, insurance and maintenance.
One of these Burger King restaurants is located just outside the southern portion of the Greater Bay Area in northern California. The subject property is strategically positioned in a dense retail corridor benefiting from its close proximity to many national and local retailers. Major national retailers in the area include: Taco Bell, Starbucks, Subway, Ace Hardware, Jack in the Box, Circle K, AutoZone and many more. This Burger King also benefits from its close proximity to academic institutions. There are two Elementary Schools and one High School less than two miles from the subject property which have a combined total enrollment of over 4,000 students. A Hospital, a 266-bed general medical and surgical hospital, is located five miles from the subject property.
Type: Restaurant
Cap Rate: 4.50%
Lease Type: Triple-Net (NNN)
Annual Rent: $158,653
Net Operating Income: $158,653
Lease Term Remaining: 19.8 Years
Rental Increases: 1.75% Annually Starting Year 7
Year Built: 2007
Rentable Sq/Ft: 3,089 SF
Rent Sq/Ft: $51.36
Price Sq/Ft: $1141
Lot Size: 0.72 Acres