Address: 2706 East Third Street , Bloomington, Indiana, United States 47401
Cap Rate: 6.00%
Lease Type: Triple Net (NNN)
Annual Rent: $148,488
Net Operating Income: $148,488
Lease Term Remaining: 20 Years
Rental Increases: 1.0% Annually Starting Year 11
Options: Six (6), Five (5)-Year Options
Year Built: 2018
Rentable Sq/Ft: 2,811 SF
Rent Sq/Ft: $52.82
Price Sq/Ft: $880
Lot Size: +/-0.50 Acres
Marcus & Millichap is pleased to present this exclusive listing for a Burger King located at 2706 East 3rd Street, Bloomington, Indiana. Newly built in 2018, the subject property consists of roughly 2,811 square feet of building space. The Burger King is subject to a 20-year absolute triple net (NNN) lease, which commences upon the close of escrow. The initial annual rent will be $148,488 and is scheduled to increase by one percent (1.00%) annually starting in year 11 and continuing throughout the remainder of the base term and option periods. In each option period the rent will increase by one percent (1.00%) annually in years 1 through 3 and the rent will remain flat in years 4 and 5.
Carrols, LLC is Burger King’s largest franchisee and has operated BURGER KING® restaurants since 1976. As of October 5, 2018, the Company completed the acquisition of 43 additional BURGER KING® restaurants in Michigan, Virginia, West Virginia, South Carolina, Georgia and currently owns and operates 848 BURGER KING® restaurants. Carrols LLC’s direct parent company, Carrols Restaurant Group, INC. (Nasdaq: TAST), is one of the only publicly traded companies solely controlling Burger King Franchises and one of the largest restaurant companies and franchisee’s in the United States.
The subject investment property benefits from being well-positioned in a highly dense retail corridor consisting of national and local tenants, shopping centers, and hotels all within close proximity of this property. Major national tenants include: Best Buy, CVS, Macy’s, Target, Dick’s Sporting Goods, Panera Bread, Taco Bell, Chick-fil-A, Starbucks, Applebee’s Grill + Bar, Steak ‘n Shake, McDonalds, KFC, Chipotle, Red Lobster, Fazoli’s, as well as many others. The subject property benefits from its close proximity to Indiana University Bloomington. Indiana University Bloomington is the flagship institution of the Indiana University system and its largest university, with a total enrollment exceeding 40,000 students, it is located less than a mile from the subject property. In addition, Indiana University Health Hospital, a 275-bed medical and surgical hospital is located approximately less than 4 miles from the subject property.
The subject property is located on East 3rd Street which experiences an average daily traffic count of 20,280 vehicles. East 3rd Street intersects with State Road 46 which brings an additional 21,481 vehicles to the immediate area per day. The subject property benefits from being situated in a heavily populated area. There are more than 74,205 individuals residing within a three-mile radius and more than 104,207 individuals within a five-mile radius.
Bloomington is a city and the county seat of Monroe County in the southern region of the state. It is the seventh-largest city in Indiana and known as the “Gateway to Scenic Southern Indiana.” It is home to the Indiana University Bloomington. Established in 1920, IU Bloomington has 49,695 students as of September 2016, and is the original and largest campus of Indiana University. Bloomington is a regional economic center anchored by Indiana University and home to a diverse business community involved in pharmaceuticals, medical devices, technology, health care, and the arts. Bloomington’s concentration of employment in the life sciences is six times greater than the U.S. average, and the employment in the technology sector has grown by over 80 percent in recent years. The city has been recognized by Inc. Magazine as one of “America’s Best Cities for Doing Business” and as one of the Entrepreneur Magazines Top 50 “Hottest Small Cities for Entrepreneurs.” Additionally, Forbes Magazine ranked Bloomington No. 3 in its “Best Places for Business Careers” feature.
Broker of Record: Josh Caruana – License # RB14034355