Address: 1108 Highway K , O'Fallon, Missouri, United States 63366
Cap Rate: 5.50%
Lease Type: Triple Net (NNN)
Annual Rent: $79,700
Net Operating Income: $79,700
Lease Term Remaining: 19.25 Remaining
Rental Increases: 1.50% Annual Escalations
Options: Four (4) Options of Five (5) Years Each
Year Built: 1995
Rentable Sq/Ft: 3,649 SF
Rent Sq/Ft: $21.84
Price Sq/Ft: $397
Lot Size: +/-0.87 Acres
The subject property is a Fazoli’s restaurant located in O’Fallon, MO. The property consists of 3,649 square feet of building space and is situated on roughly 0.87 acres of land.
The 20-year absolute triple-net (NNN) lease was signed in December, 2017 and is guaranteed by Fazoli’s largest franchisee, an affiliate of the Junior Bridgeman Group. The Junior Bridgeman Group operates 85 Fazoli’s restaurants, however this property is guaranteed by 67 of the locations. The rent is scheduled to increase to $79,700 in December of 2018 and is subject to 1.5 percent annual rental increases thereafter. The rent increases will continue throughout the base term and in each of the four, five-year tenant renewal option. Glen Kunofsky, Nicoletti DePaul, and Josh Kanter are Exclusive Listing Agents as well as principals in the investment.
The subject Fazoli’s restaurant is located at 1108 Highway K in O’Fallon, Missouri. O’Fallon is a suburb of St. Louis, which is the largest metropolitan area of the state of Missouri. O’Fallon consistently ranks as one of America’s Best Places to Live, (Money Magazine 2008-2012) and ranks as One of the Best Cities to do Business in by Market Watch.
The property is positioned just off of Interstate-70 and is surrounded by a copiousness amount of national retailers and restauranteurs. National retail tenants in the area consists of Walmart, ALDI, Home Depot, Lowe’s, Walgreens, Schnucks, Shop N Save, Dollar Tree, La-Z-Boy, Hobby Lobby, AutoZone, CVS, Advanced Auto Parts and many more. Other nationally branded restaurant chains in the area include McDonald’s, Bob Evans, Arby’s, KFC, Texas Roadhouse, Applebee’s, Golden Corral, Wendy’s, and Red Robin just to name a few.
This subject property is situated along Highway K, which experiences an average daily traffic count of more than 47,500. Additionally, the property is positioned one mile from Interestate-70 where the traffic counts are more than 122,000 vehicles per day. Furthermore, there are approximately 82,000 people within a three-mile radius and roughly 155,000 people within a five-mile radius.
The subject property is situated just outside of St. Louis. The city was developed along the western bank of the Mississippi River, which forms Missouri’s border with Illinois. St. Louis is the second-largest city in Missouri after Kansas City. As of 2013, the St. Louis Metropolitan Area is home to nine Fortune 500 companies, the third-highest in the Midwestern United States. St. Louis itself is home to two of those companies, which are Peabody Energy and Ameren. Health care and biotechnology institutions with operations in St. Louis include Pfizer, the Solae Company, Sigma-Aldrich and Multi-data Systems International. Boeing employs nearly 15,000 people in its north St. Louis campus, which is headquarters to its defense unit.
Broker of Record: Bradley Barham – License # 2005038930