OFFERING SUMMARY
Price: $843,500
Cap Rate: 6.00%
Gross Leasable Area: 6,314 SF
NOI: $50,610
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 Knoxville, 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. Knoxville is the 3rd 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 7 percent since 2010. The subject property is well located just north of downtown and minutes from Austin-East high school and around several synergistic tenants including Save A Lot, the Knoxville Zoo and ORNL Federal Credit Union.
