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JUST LISTED: BURGER KING; ROSEVILLE, MI
19.5 years remaining
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Investment Highlights
- - 12.5% rent increases every 5 years.
- - 19.5 years remaining
- - Additional Percentage Rent between $15,000-$21,000 is expected this year!
- - Strong Operator – 196 stores.
- - The entity owns 60+ BK locations with over $13MM in equity on their balance sheet.
- - Pad of the Macomb Mall (933,000 SF) which just added Dick’s Sporting Goods, H&M, to name a few.
- - Very strong sales
- - Effective Cap with percentage rent: 6.04%, $2,784,818
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Above Market Rental Increases – Lease provides 12.5% increases every five years versus industry standard 7.5%-10.0% increases.
Rare Percentage Rent – Lease provides additional rent of 8.5% of gross sales in excess of the natural breakpoint ($1,801,941). Based on sales trend. Tenant has reached breakpoint YTD. Therefore, we project $15,000 of percentage rent in 2015.
Strong Tenant/Operator – GPS Hospitality is a seasoned operator with over 30 years experience in the QSR business and a 196 store operator for Burger King (www.gpshospitality.com).
Strong Historical Sales – The store shows a positive trend for the last several years, which indicates the high likelihood of reaching percentage rent threshold and delivering an investor higher yield.
Rent to Sales Ratio – The rent was originally based on a 8.5% rent to sales ratio. This is considered healthy and widely accepted among industry standards.
Absolute Net Lease – Zero Landlord responsibilities.
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