McAlister’s Deli Sale-Leaseback
TX, USA
| Price | $2,909,250 |
| Cap Rate | |
| NOI | $160,000 |
| Lease Term | 20 Years |
| Lease Type | Absolute NNN, with Tenant Responsible for All Taxes, Insurance, Utilities, and Maintenance, Including Roof, Structure, and Parking Lot |
| Rental Increases | 5% Rental Increases Every 5 Years |
| Year Built | 1999 |
| Building Size | 4,186 SF |
| Lot Size | 1.22 Acres (53,230 SF) |
| Status | Sold |
| Lead Broker Information | Michael T. Yuras, CCIM Cushman & Wakefield 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Scott Crowle Senior Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 Vincent Aicale Cushman & Wakefield 415.690.5522 vince.aicale@cushwake.com CA RE License #01728696 Ryan Forsyth Cushman & Wakefield 415.413.3005 ryan.forsyth@cushwake.com CA RE License #01716551 |
Investment Highlights
LONG-TERM ABSOLUTE NNN LEASE WITH SCHEDULED RENTAL INCREASES
» 20-year sale-leaseback effective upon closing, demonstrating tenant’s long-term commitment to the location
» Leased to The Saxton Group, the largest McAlister’s Deli franchisee, with over 77 McAlister’s Deli locations
» The Saxton Group has been ranked by Restaurant Finance Monitor as one of the 100 largest franchisees of any brand in the United States
» No landlord management, ideal for an out-of-area investor
» 5% rental increases every five years, providing a hedge against inflation
TOP-PERFORMING LOCATION IN DENSE RETAIL CORRIDOR
» Top-performing store with low rent-to-sales ratio
» Excellent visibility and access to 61,599 vehicles per day at signalized intersection
» Directly across from Broadway Square, one of only two major malls in East Texas, with 3.5 million visitors per year
CLOSE PROXIMITY TO MAJOR SCHOOLS AND EMPLOYERS
» Within walking distance of 2,681-student high school
» Minutes from The University of Texas at Tyler (10,527 students and 968 employees) and Tyler Junior College (12,000 credit students and 947 employees)
» Near downtown Tyler, several business and industrial parks, and a number of large hospitals
PRIME TYLER MSA LOCATION WITH ROBUST DEMOGRAPHICS
» 104,916 residents live and 101,268 daytime employees work within a five-mile radius of the property
» Tyler is the most populous city in East Texas and serves as the region’s major economic, educational, financial, medical, and cultural hub
» The Tyler area is experiencing large gains in population and an increase in commercial and residential construction activity
Property Description
SOLD
The property is conveniently located just off of the signalized intersection of Old Bullard Road and Loop 323, with excellent visibility and access to 61,599 vehicles per day. Located in a dense retail corridor, the property is directly across from Broadway Square, a shopping mall anchored by JCPenney, Dillard’s, and Sears. Being one of only two major malls in East Texas, Broadway Square serves a large trade area and is visited by approximately 3.5 million people each year. The property is surrounded by several other large shopping centers and major retailers, including Home Depot, Havertys Furniture, Office Depot, Boot Barn, Ross, Pier 1 Imports, Toys “R” Us, Natural Grocers, Brookshire’s, and Dollar General, amongst many others.
The property is centrally located near large schools, major employers, and densely populated neighborhoods. Several schools are located within walking distance of the property, including Robert E. Lee High School (2,681 students), Hubbard Middle School (787 students), and Bishop Thomas K. Gorman Catholic School (416 students). The property is also minutes from two large colleges, which are also some of the largest employers in the region: the University of Texas at Tyler (10,527 students and 968 employees) and Tyler Junior College (12,000 credit students and 947 employees). Other major employment centers near the property include several industrial and business parks and the East Texas Medical Center. The property is also surrounded by densely populated residential neighborhoods, which further strengthen the customer base in the surrounding area. In total, 104,916 residents live and 101,268 daytime employees work within a five-mile radius of the property.
