Wednesday, November 9, 2011

NNN Properties KFC/Taco Bell For Sale

NNN Properties

Search NNN properties, below is just a sample of the properties we have available. 


KFC/Taco Bell - Shippensburg, PA  




Square Footage: 3,000
Property Type: Ground Lease
Lease Term: 20 years
Lease Structure: NNN
NOI: $75,000
Cap Rate: 6.25%
Price: $1,200,000

Additional Property Information:
·  NNN Ground Lease with 17 years remaining, plus options
· 10% Rent bumps every 5 years
·  Ideal location across from Wal-Mart & Lowes anchored center
·  Guarantor is national Yum! Brands franchisee with 265+ units, including 247 KFC restaurants
·  Kazi Foods is listed by GE Capital as #59 on their top 150 largest franchisee operators


Typically, triple net leases (NNN) are 'equity investments', rather than 'cash flow investments'. For example, the investor will finance a significant portion of the purchase price on a property and pay the resulting mortgage with the lessee's monthly owed rent. There is usually a small amount left over as monthly profit for the investor (positive cash flow), but the greater investment payoff comes from the tax shields afforded to the investor through the use of leverage. The resulting property is then sold after a period of building up equity.


No comments:

Post a Comment