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Red Lobster

Palm Desert, California

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Marcus & Millichap is pleased to present the exclusive offering for a Red Lobster located at 72291 Highway 111 in Palm Desert, CA. The site consists of roughly 6,145 rentable square feet of building space on an estimated 1.33-acre parcel of land. This Red Lobster is subject to a long-term, absolute triple-net (NNN) lease, which commenced July 28, 2014. The current annual rent is $382,721 and is scheduled to increase by 2.00% annually throughout the remainder of the base term and in each of the four (4), five (5)-year tenant renewal options.

About the Investment:

  • Long-Term, Absolute Triple-Net (NNN) Lease with Approximately 23 Years Remaining on the Base Term
  • Corporate Tenant | Corporate Guaranty
  • Attractive Rental Increases of Two Percent (2.00%) Annually
  • Four (4), Five (5)-Year Tenant Renewal Options

About the Location:

  • Dense Retail Corridor | Walmart, Target, Aldi, Best Buy, Dick’s Sporting Goods, J.C. Penney, Old Navy, Sears, HomeGoods, Whole Foods and Many More
  • Heavily Trafficked Area | Highway 111 and Fred Waring Drive | Average Daily Traffic Counts of 38,500 and 32,500 vehicles, Respectively
  • Multiple Hospitality Accommodations | Holiday Inn Express and Suites, Hilton Garden Inn, Omni Rancho Las Palmas Resort & Spa, SpringHill Suites, Best Western Plus, Among Various Others
  • Strong Real Estate Fundamentals | Located Less Than Two Miles From The River Mall and Westfield Palm Desert Mall
  • Strong Academic Presence | Less Than Two Miles From the College of the Desert Over 11,000 Students

About the Tenant/Brand:

  • Red Lobster is the largest seafood restaurant concept in the world and is an iconic full-service brand with broad demographic appeal and a significant advertising budget (2nd-largest in casual dining)
  • The Company was founded in 1968 and currently operates over 700 restaurants throughout the United States and Canada, and has more than 40 franchised restaurants in international markets
  • Red Lobster is led by an experienced management team with a history of success leading the brand (average 27+ years experience across executive team)
  • The company generates $2.5B in revenue and is the 6th-largest casual dining concept in North America

Key Details

Price:
$6,223,103
Cap Rate:
6.15%
Annual Rent:
$382,721
Address:
72291 Highway 111, Palm Desert, California 92260
Property Type:
Net-Leased Restaurant
Lease Type:
Triple Net (NNN)

Lease Commencement:
July 28, 2014
Lease Expiration:
July 31, 2044
Lease Term Remaining:
23 Years
Rental Increases:
2.00% annually
Lot Size:
+/-1.33 Acres
Building Size:
6,145 SF
Year Built:
2012
Tenant:
Red Lobster

Broker of record

David Nelson

License: 01716942


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