OFFERING SUMMARY
Price: $964,000
Cap Rate: 6.00%
Gross Leasable Area: 5,389 SF
NOI: $57,860
OFFERING HIGHLIGHTS
- Absolute Net Lease
- Recently Executed 7-Year Extension
- Rental Increase in Options
- Strong Demographics
INVESTMENT OVERVIEW
The Diffie Retail Team is pleased to present investors with the unique opportunity to acquire an exceptionally high performing EZ Pawn property located in Chattanooga, Tennessee. EZ Pawn corporate recently executed a new 7-year lease extension which begins at the end of August 2022 and features two, five-year options with 7.5 percent increases. The property, which has been a pawnshop for decades, is in an exceptionally strong location for its industry boasting a tremendous rent to sales ratio. The lease is absolute net in nature, which is rare for these types of properties, with the tenant taking care of roof, structure, taxes, insurance, and all other maintenance.
EZ Pawn has been in existence since 1974 and is headquartered in Austin, Texas. They have a strong presence throughout the United States and have flourished over the past few decades. Chattanooga is the 4th largest city in Tennessee with a population of almost 200,000 residents. The population has also grown steadily over the last few decades, increasing almost 10 percent since 2010. The subject property is well located near the Chattanooga airport, just down the street from Eastgate Town Center, a regional power center and around several synergistic tenants including Aldi, Chick-fil-A, and Starbucks.
