Net Lease Properties
Quick Service Restaurants
Pricing $800k - $3M
Quick Serve Restaurants are attractive investments due to the underlying asset. Restaurants are typically in a 3,000 square foot building with a drive-thru window, and situated on 0.5 - 1.0 acre of land. It is important to note that QSR's franchise the majority of their locations. Sale prices and cap rates vary based on the size and strength of the operator and sales at a particular location. Investor can expect cash on cash returns between 5.5 and 7.5 percent annually.
Pricing $3M - $7M
Casual Dining restaurants require 1.0 - 1.5 acres of land with a 5,500 square foot building, Locations are typically a pad to larger shopping centers or on a well traveled highway. While the quality of the underlying real estate is important, reviewing individual unit sales data will provide the best clarity of operational strength and potential long-term viability.
Pricing $2M - $6M
From a net lease investment point of view, it is important to recognize the differences between walk-up and gas locations. For both types, convenient stores typically sit on sites witnessing 25,000 passing vehicles daily. This and other real estate requirements significantly enhance the underlying value of these net lease properties.
Pricing $3M - $9M
Pharmacies are considered investment grade with industry recognized credit ratings, which improves the value and marketability of net lease properties. Guarantees by stable publicly traded companies are viewed as the most secure,
Traditionally, pharmacy leases start with a 20-25 year base term. The real estate also plays an important driver in these assets, as they are almost exclusively hard corner locations with premiere visibility, and generous access on 1.00 - 2.00 acres of land.
Pricing $2M - $5M
With the demand for dialysis growing, investors have found this area an attractive investment. They like the security that is inherent with the investment made by the tenant in the build out of the property and installation of specialty trade fixtures. This investment makes it less likely for the tenant to leave at lease expiration.
Pricing $2M - $8M
Given their high credit and class A real estate requirements, their average cap rates are near the lower range found throughout the net lease world. Typically their leases provide for rent growth, with 10% increases every five (5) years as the standard schedule.