The lease has been extended and there currently are 18.5 years remaining on the Absolute NNN lease that commenced in 2002. The property has an initial cap rate of 6.00 percent. The current rent is $114,000 and is subject to 5 percent increases every five years. There are four, five-year options. This is a franchisee location with a franchise guarantee and a personal guarantee. The operator is based in Indiana and operates 40 Arby’s and Buffalo Wild Wings locations.
Arby’s recently announced US Same-Store-Sales growth of 5.8 percent in the first quarter of 2016. This represents 22 consecutive quarter of Same-Store-Sales growth. See full press release attached.
The subject investment is a Arby’ s Restaurant located at 700 Highway 131, Three Rivers, Michigan. Located 130 miles east of Chicago IL.