OFFERING SUMMARY
List Price: $1,452,151
Cap Rate: 7.25%
Lease Type: Absolute NNN
Leasable Area: 5,498 SF
Lot Size (AC): 2.25 Acres
OFFERING HIGHLIGHTS
- Twenty-Year Absolute Net Lease
- 10% Rent Bumps Every Five Years Over Remaining Twelve Years and Each of Four Five-Year Options
- Strong Rent-to-Sales Ratio Both Before and During the Covid-19 Pandemic
- Guaranteed by RMH Franchise Holdings, the Second-Largest Applebee’s Franchisee in the U.S.
- Excellent Location on Primary Retail Corridor
INVESTMENT OVERVIEW
Diffie Retail Team at Marcus & Millichap is pleased to present this absolute-net-leased Applebee’s in Winchester, Kentucky. This restaurant has been a strong performer with an excellent rent-to-sales ratio both before and during the Covid-19 pandemic. The twenty-year lease is guaranteed by the franchisee, RMH Franchise Holdings, who are the second-largest Applebee’s franchisee in the United States, with over 130 units. The current lease term has just over twelve years remaining and four attractive options, with 10% increases every five years throughout the primary term and each option period.
Located on the city’s primary retail corridor near I-64, the offering is easily accessible via a signalized intersection. The location benefits from strong synergy with other national brands and close proximity to Clark Regional Medical Center, a seventy-nine bed hospital employing nearly six hundred people. An Amazon Customer Service Center just over a mile away also supplies the area with a steady consumer base.
