Investment Summary
Price | $2,600,000 |
Cap Rate | |
NOI | |
Lease Term | 25 Years |
Lease Type | Absolute NNN Lease, With Tenant Responsible For All Taxes, Insurance, And Maintenance, Including Roof, Structure, And Parking Lot |
Rental Increases | 1% Annual Rental Increases |
Year Built | 2022 |
Building Size | 2,623 SF |
Lot Size | 0.51 Acres (22,216 SF) |
Status | Sold |
Lead Brokers | Michael T. Yuras, CCIM Vice Chairman 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Scott Crowle Executive Managing Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 Vincent Aicale Executive Managing Director 415.690.5522 vince.aicale@cushwake.com CA RE License #01728696 Ryan Forsyth Executive Managing Director 415.413.3005 ryan.forsyth@cushwake.com CA RE License #01716551 |
Investment Highlights
NEW 25-YEAR ABSOLUTE NNN LEASE TO ONE OF TACO BELL’S LARGEST OPERATORS
» 25-year absolute NNN lease to iconic QSR tenant
» Rare annual rental increases, providing an excellent hedge against inflation
» No landlord management, making this an ideal opportunity for an out-of-area investor
» Leased to Tacala Tennessee Corp. (parent company Tacala LLC), one of Taco Bell’s largest operators with over 300 units
» Taco Bell serves more than 42 million customers each week in the U.S., with annual sales projected to reach $15 billion by the end of 2022
» High-quality 2022 construction built to the latest Taco Bell prototype, featuring covered patio seating and a dedicated drive-thru for added customer convenience
HIGH-VISIBILITY LOCATION AT A HIGH-TRAFFIC CLEVELAND INTERSECTION
» Conveniently placed at the intersection of Pleasant Grove Road and Commerce Boulevard Southwest, providing multiple access points for the site
» Located at the confluence of Interstate 75 and U.S. Route 74 (combined 84,409 AADT), carrying significant amounts of commuter traffic directly through the location
» Immediately surrounded by major traffic-driving tenants such as Walmart Supercenter, Walgreens, Cracker Barrel, Starbucks, Zaxby’s, Burger King, Dunkin’ and many more
» Strategic location near Cleveland’s largest community hubs and tourist attractions, including Harrison Bay, Chickamauga Lake, and Lee University (3,927 students, 501 employees)
» Gateway to Chattanooga (182,113 population), Tennessee’s fourth most-populous city and one of the two principal cities of East Tennessee, along with Knoxville
PRIMED TO CAPTURE HIGH-VOLUME SALES IN GROWING SUBURB
» 39,120 residents live within five miles of the property, creating a stable customer base
» High average annual household income of $104,513 within a one-mile radius, providing an affluent surrounding base
» Cleveland has the highest job growth percentage in Tennessee, according to the U.S. Bureau of Labor Statistics. Cleveland saw a 5.3% increase in employment growth year-over year in 2021
» Projected population and income increases within 1-, 3-, and 5-mile radii over the next five years poise Taco Bell and Cleveland for steady concurrent growth
» Centrally located between Nashville, Knoxville, and Atlanta, allowing the site to capture significant tourist and commuter traffic
Property Description
Sold
» This Taco Bell is conveniently located at the intersection of Pleasant Grove Road and Commerce Boulevard Southwest
» The property features a beneficial location at the confluence of Interstate 75 and U.S. Route 74 (combined 84,409 AADT), carrying significant amounts of commuter traffic directly through the location
» Located in a strong retail corridor, the property is surrounded by major traffic-driving tenants such as Walmart Supercenter, Walgreens, Cracker Barrel, Starbucks, Zaxby’s, Burger King, Dunkin’, and many more, creating significant crossover shopping
» Cleveland has the highest job growth percentage in Tennessee, according to the U.S. Bureau of Labor Statistics. Cleveland saw a 5.3%increase in employment growth year-over-year in 2021
» Gateway to Chattanooga (182,113 population), Tennessee’s fourth most-populous city and one of the two principal cities of East Tennessee, along with Knoxville
» The high average annual household income of$104,513 within a one-mile radius provides an affluent surrounding base
» Projected population and income increases within 1-, 3-, and 5-mile radii over the next five years poise Taco Bell and Cleveland for steady concurrent growth