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Restaurant

KFC Ground Lease

900 S Green River Rd, Evansville, IN 47715

Listing Price: $1,005,000

Cap Rate
5.25%
Tenant Name
KFC
Years Remaining On Lease
12.6
Gross SF
2,334
Guarantor
Franchisee Guarantee
Rentable SF
2,334
Price/Gross SF
$430.59
Lease Type
Ground Lease
Rent Per Square Feet
$22.62

Investment Overview

Marcus and Millichap is pleased to present for your acquisition review the KFC Ground Lease in Evansville, Indiana. KFC has successfully operated at this location for more then 26 years, building a loyal customer base with the local Evansville residents and capitalizing off the lack of other major quick service restaurants nearby. They have renewed their lease early several times, most recently in April 2021, extending their lease by 10 years further illustrating the strength of this location. The current lease expires on December 31, 2034, leaving more then 12.5 years of lease term remaining. There are rent escalations every 5 years, with the next escalation occurring on January 1, 2025, increasing the rent to $58,080 annually. There are four, five-year renewal options with rent escalations in each option. The lease is classified as a ground lease, with the Landlord having zero responsibilities. The lease is guaranteed by Bell Indiana LLC, which is a subsidiary of Flynn Restaurant Group, one of the largest restaurant franchisees in the country, with 2,355 restaurants generating more then $3.6 Billion in annual revenue. The 2,334 square foot building is ideally situated as an outlot to a large Schnucks Grocery Store anchored shopping center. The Ascension St. Vincent Health Hospital sits down the street and serves as a large economic and traffic driver for the KFC and all other retailers in this corridor. In addition to the Schnucks and Ascension Hospital, there are several other traffic drivers nearby including Ruler Foods and Big Lots. There is a dense retail corridor north of the KFC, home to the Eastland Mall and tenants like Walmart, Sam’s Club, Target, At Home, TJMaxx and numerous other tenants that showcase how strong of a retail market Evansville is.

Investment Highlights

  • Ground Lease with Zero Landlord Responsibilities
  • 26+ Year Operating History at this Location (Since December 1994)
  • Early 10-Year Lease Extension in April 2021 | 12.5+ Years Remaining on the Lease | Multiple Early Lease Renewals Illustrate Tenants Success at this Location
  • Rent Increases Every 5 Years Provide a Perfect Hedge Against Inflation |
  • Lease Guaranteed by Bell Indiana LLC (Subsidiary of Flynn Restaurant Group) | Flynn Restaurant Group has 2,355 Restaurants & 73,000+ Employees | $3.6 Billion in Annual Revenue
  • Outlot to a Schnucks Anchored Shopping Center
  • Major Traffic & Economic Drivers Nearby| 1.1 Miles from Ascension St. Vincent Evansville Hospital
  • Home to University of Southern Indiana & University of Evansville | 13,000+ Students

Exclusively Listed By

Restaurant

KFC Ground Lease

Listing Price: $1,005,000

Cap Rate
5.25%
Tenant Name
KFC
Years Remaining On Lease
12.6
Gross SF
2,334
Guarantor
Franchisee Guarantee
Rentable SF
2,334
Price/Gross SF
$430.59
Lease Type
Ground Lease
Rent Per Square Feet
$22.62

Investment Highlights

  • Ground Lease with Zero Landlord Responsibilities
  • 26+ Year Operating History at this Location (Since December 1994)
  • Early 10-Year Lease Extension in April 2021 | 12.5+ Years Remaining on the Lease | Multiple Early Lease Renewals Illustrate Tenants Success at this Location
  • Rent Increases Every 5 Years Provide a Perfect Hedge Against Inflation |
  • Lease Guaranteed by Bell Indiana LLC (Subsidiary of Flynn Restaurant Group) | Flynn Restaurant Group has 2,355 Restaurants & 73,000+ Employees | $3.6 Billion in Annual Revenue
  • Outlot to a Schnucks Anchored Shopping Center
  • Major Traffic & Economic Drivers Nearby| 1.1 Miles from Ascension St. Vincent Evansville Hospital
  • Home to University of Southern Indiana & University of Evansville | 13,000+ Students

Investment Overview

Marcus and Millichap is pleased to present for your acquisition review the KFC Ground Lease in Evansville, Indiana. KFC has successfully operated at this location for more then 26 years, building a loyal customer base with the local Evansville residents and capitalizing off the lack of other major quick service restaurants nearby. They have renewed their lease early several times, most recently in April 2021, extending their lease by 10 years further illustrating the strength of this location. The current lease expires on December 31, 2034, leaving more then 12.5 years of lease term remaining. There are rent escalations every 5 years, with the next escalation occurring on January 1, 2025, increasing the rent to $58,080 annually. There are four, five-year renewal options with rent escalations in each option. The lease is classified as a ground lease, with the Landlord having zero responsibilities. The lease is guaranteed by Bell Indiana LLC, which is a subsidiary of Flynn Restaurant Group, one of the largest restaurant franchisees in the country, with 2,355 restaurants generating more then $3.6 Billion in annual revenue. The 2,334 square foot building is ideally situated as an outlot to a large Schnucks Grocery Store anchored shopping center. The Ascension St. Vincent Health Hospital sits down the street and serves as a large economic and traffic driver for the KFC and all other retailers in this corridor. In addition to the Schnucks and Ascension Hospital, there are several other traffic drivers nearby including Ruler Foods and Big Lots. There is a dense retail corridor north of the KFC, home to the Eastland Mall and tenants like Walmart, Sam’s Club, Target, At Home, TJMaxx and numerous other tenants that showcase how strong of a retail market Evansville is.

Exclusively Listed By

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