Price: $1,739,000 | Cap Rate: 5.75%
Lease Term: 15 Years
Lease Term Remaining: 15 Years
Lease Type: Absolute NNN Ground Lease
Rent Commencment Date: 12/31/2024
Expiration Date: 12/31/2039
Rent Increases: 10% Every 5-Years
Options: 2 x 5-Year
Lease Guarantor: Personal Guaranty (6 Individuals)
Building SF: 500
Year Built: 2024
15-YEAR ABSOLUTE NNN GROUND LEASEYEAR ABSOLUTE NNN GROUND LEASE Long term lease with no landlord responsibilities and with 10% Rental Increases Every 5 Years.
GREAT ACCESS FOR MORNING COMMUTERS AT HEAVILY UTILIZED ON-RAMP 7 Brew is constructing a brand-new state-of-the-art drive-thru facility on the ‘Going to Work’ side of Mississippi Avenue and I-225, both are significant thoroughfares for morning commuters.
GROWING NATIONAL TENANT 7 Brew operates in 292 locations across 26 states and is rapidly expanding into new markets, generating an 185% growth rate.
PERSONAL GUARANTY FROM EXPERIENCED OPERATOR The lease is personally guaranteed by the operator of 33 Freddy’s locations throughout Alabama, Colorado, New Mexico, and Texas. ERC Hospitality was founded in 2009 and has developed 23 Freddy’s while acquiring 10 additional locations. The subject property is ERC’s premier 7 Brew location with additional locations in their pipeline.
BLACKSTONE RECENTLY ANNOUNCED A SIGNIFICANT INVESTMENT IN 7BREW Brian Cornyn of Blackstone said, “This investment illustrates Blackstone’s thematic focus on investing in strong franchise businesses alongside highly skilled operators. We are proud to bring Blackstone’s experience and global resources to fuel 7 Brew’s next stage of growth."