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Restaurant

Pizza Hut | Absolute Net | Lowe's Outparcel

3050 US-31, Traverse City, MI 49684

Listing Price: $1,219,000

Cap Rate
5.25%
Tenant Name
Pizza Hut
Years Remaining On Lease
11.6
Gross SF
3,299
Guarantor
Franchisee Guarantee
Rentable SF
3,299
Price/Gross SF
$369.51
Lease Type
Absolute Net
Rent Per Square Feet
$19.40

Investment Overview

Marcus & Millichap is pleased to present this single-tenant Pizza Hut located at 3050 US-31 in Traverse City, Michigan. Pizza Hut has operated at this location since the building’s construction in 2000 and recently executed a new 15-year lease. The Absolute Net lease is guaranteed by a 16-unit entity of one of the largest Pizza Hut Franchisees (94-units total) and currently has 12 years of term remaining. There are five percent rent increases every five years and in each of the four five-year renewal option periods. The next rent increase is scheduled at the beginning of 2024. This Pizza Hut reports an increasing sales trend and has an extremely low rent-to-sales ratio. Pizza Hut, a subsidiary of Yum! Brands (Standard & Poor’s: BB), is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes including salad, pasta, buffalo wings, breadsticks, garlic bread and desserts. Pizza Hut is the #1 pizza restaurant chain in the world in both sales and number of restaurants. It has 16,748 locations in 130 countries and counting. Yum! Brands has over 52,000 restaurants in more than 150 countries and territories, operating the Company’s brands – KFC, Pizza Hut, Taco Bell and Habit Burger Grill. Pizza Hut is strategically located with high visibility on US-31 (22,439 vehicles-per day) and is an outparcel to a Lowe’s Home Improvement. The property is also adjacent to the Grand Traverse Mall and other large retailers including Walmart, Home Depot, Kohl’s, Bed Bath & Beyond, and many others. Great Wolf Lodge, a large family resort, arcade and indoor water park, sits less than a mile north of the asset and drives visitors in from all across the state. Also nearby is Cherry Capital Airport and Munson Medical Center, a 442-bed hospital and flagship location for the regional healthcare system. Traverse City, also known as the Cherry Capital of the World, is the county seat of Grand Traverse County and is the largest city in the 21-county Northern Michigan region. Nestled along the scenic Grand Traverse Bay, picturesque Traverse City is one of the most popular destinations in the USA’s Great Lakes region, a charming “real American small town” that serves as the cultural and social hub of northern Michigan. Every year the city hosts a week-long National Cherry Festival in July, attracting approximately 500,000 visitors annually. The micropolitan area is home to over 153,000 residents and are 46,000 full-time residents with an average household income of $79,651 within five miles of the asset. This single-tenant property provides an investor with a long-term stabilized asset with zero landlord responsibilities in a highly desirable market.

Investment Highlights

  • Absolute Net Lease | No Landlord Responsibilities
  • Guaranteed by a 16-Unit Entity of One of the Largest Pizza Hut Franchisees (94-Units Total) | Pizza Hut is the Largest Pizza Company in the World
  • 12 Years Remaining | Five Percent Rent Increases Every Five Years | Next Increase in 2024
  • Increasing Sales Trend | Extremely Low Rent-To-Sales Ratio
  • Outparcel to Lowe's | Excellent Visibility on US-31 (22,439 VPD)
  • Strategically Positioned Next to Grand Traverse Mall and Many National Retailers
  • Close Proximity to Downtown Traverse City, Cherry Capital Airport, Munson Medical Center, and Northwestern Michigan College
  • Average Household Income Exceeding $79,000 Within a Five-Mile Radius

Exclusively Listed By

Restaurant

Pizza Hut | Absolute Net | Lowe's Outparcel

Listing Price: $1,219,000

Cap Rate
5.25%
Tenant Name
Pizza Hut
Years Remaining On Lease
11.6
Gross SF
3,299
Guarantor
Franchisee Guarantee
Rentable SF
3,299
Price/Gross SF
$369.51
Lease Type
Absolute Net
Rent Per Square Feet
$19.40

Investment Highlights

  • Absolute Net Lease | No Landlord Responsibilities
  • Guaranteed by a 16-Unit Entity of One of the Largest Pizza Hut Franchisees (94-Units Total) | Pizza Hut is the Largest Pizza Company in the World
  • 12 Years Remaining | Five Percent Rent Increases Every Five Years | Next Increase in 2024
  • Increasing Sales Trend | Extremely Low Rent-To-Sales Ratio
  • Outparcel to Lowe's | Excellent Visibility on US-31 (22,439 VPD)
  • Strategically Positioned Next to Grand Traverse Mall and Many National Retailers
  • Close Proximity to Downtown Traverse City, Cherry Capital Airport, Munson Medical Center, and Northwestern Michigan College
  • Average Household Income Exceeding $79,000 Within a Five-Mile Radius

Investment Overview

Marcus & Millichap is pleased to present this single-tenant Pizza Hut located at 3050 US-31 in Traverse City, Michigan. Pizza Hut has operated at this location since the building’s construction in 2000 and recently executed a new 15-year lease. The Absolute Net lease is guaranteed by a 16-unit entity of one of the largest Pizza Hut Franchisees (94-units total) and currently has 12 years of term remaining. There are five percent rent increases every five years and in each of the four five-year renewal option periods. The next rent increase is scheduled at the beginning of 2024. This Pizza Hut reports an increasing sales trend and has an extremely low rent-to-sales ratio. Pizza Hut, a subsidiary of Yum! Brands (Standard & Poor’s: BB), is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes including salad, pasta, buffalo wings, breadsticks, garlic bread and desserts. Pizza Hut is the #1 pizza restaurant chain in the world in both sales and number of restaurants. It has 16,748 locations in 130 countries and counting. Yum! Brands has over 52,000 restaurants in more than 150 countries and territories, operating the Company’s brands – KFC, Pizza Hut, Taco Bell and Habit Burger Grill. Pizza Hut is strategically located with high visibility on US-31 (22,439 vehicles-per day) and is an outparcel to a Lowe’s Home Improvement. The property is also adjacent to the Grand Traverse Mall and other large retailers including Walmart, Home Depot, Kohl’s, Bed Bath & Beyond, and many others. Great Wolf Lodge, a large family resort, arcade and indoor water park, sits less than a mile north of the asset and drives visitors in from all across the state. Also nearby is Cherry Capital Airport and Munson Medical Center, a 442-bed hospital and flagship location for the regional healthcare system. Traverse City, also known as the Cherry Capital of the World, is the county seat of Grand Traverse County and is the largest city in the 21-county Northern Michigan region. Nestled along the scenic Grand Traverse Bay, picturesque Traverse City is one of the most popular destinations in the USA’s Great Lakes region, a charming “real American small town” that serves as the cultural and social hub of northern Michigan. Every year the city hosts a week-long National Cherry Festival in July, attracting approximately 500,000 visitors annually. The micropolitan area is home to over 153,000 residents and are 46,000 full-time residents with an average household income of $79,651 within five miles of the asset. This single-tenant property provides an investor with a long-term stabilized asset with zero landlord responsibilities in a highly desirable market.

Exclusively Listed By

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