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Restaurant

Red Lobster (Corporate) 2% Annual Increases

75 Peppers Ferry Road, Christiansburg, VA 24073

Listing Price: $4,052,000

Cap Rate
6.00%
Tenant Name
Red Lobster Restaurants
Years Remaining On Lease
16.7
Gross SF
5,640
Guarantor
Corporate Guarantee
Rentable SF
5,640
Price/Gross SF
$718.44
Lease Type
Absolute Net
Rent Per Square Feet
$43.11

Investment Overview

Marcus & Millichap is pleased to present the exclusive listing for Red Lobster located at 75 Peppers Ferry Road in Christiansburg, Virginia. The property is 5,640 square feet and is situated on approximately 0.92 acres of land with 30,000 vehicles per day crossing Franklin St and Peppers Ferry Road. The Red Lobster is located on an outparcel to Uptown Christiansburg, a 538,000 SF Mall Anchored by Kohl’s, Homegoods, Dick’s Sporting Goods and Belk. This Red Lobster is subject to a 25-year triple-net (NNN) Corporate Guaranteed lease, with roughly 17 years remaining on the lease. The rent is scheduled to increase by two percent annually, including through the four, five year tenant renewal options. 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 over $2B in revenue and is the 6th-largest casual dining concept in North America. On August 31st, 2020, a group led by Thai Union Group (“TUG”) acquired Red Lobster. Thai Union Group was previously a minority owner of Red Lobster – first acquiring a 25% stake in the company in 2016. The new ownership group now includes Thai Union Group, current Red Lobster management, and a newly formed investment group, Seafood Alliance, which is led by two prominent global restaurant operators. Founded in 1977, Thai Union has a rich history of commitment to seafood expertise and innovation around the world. Thai Union Group, based out of Thailand with offices in North America, Europe, the Middle-East and Asia, currently serves as a main supplier of seafood for Red Lobster’s across the world. Thai Union Group has been listed on the Stock Exchange of Thailand (SET) since November 1994. Prior to the Red Lobster acquisition, Thai Union Group reported annual sales of over $4.1 Billion. Through acquisitions and organic growth, TUG’s ambitious expansion strategy has established a diverse global brand portfolio. Covering three continents, their brands are consumer favorites and market leaders with a wide range of products including shelf-stable seafood products, frozen and chilled seafood, PetCare products and more. TUG has a long, successful track record and significant experience servicing consumers, supermarkets, restaurants, hospitality and others.

Investment Highlights

  • Corporate Guaranteed Lease
  • 17 Year Absolute Triple Net Lease
  • Rare Two Percent Rental Increases Annually
  • Outparcel to Uptown Christiansburg | 538,000 SF Mall Anchored by Kohl's, Homegoods, Dick's Sporting Goods and Belk
  • Dense Retail Corridor | Walmart, Target, Home Depot, Kohls, Dick's, Best Buy, Starbucks, Taco Bell, Outback Steakhouse, Lowes, Hobby Lobby, Walgreens, Barnes & Noble, Belk, Planet Fitness, TJ Maxx, Michaels and Many More
  • Strong Real Estate Fundamentals

Exclusively Listed By

Broker of Record

  • Brian Hosey

    First Vice President/ Division Manager

    (202) 536-3700

    License(s) VA: 0225247494

    Virginia

Financing By

Restaurant

Red Lobster (Corporate) 2% Annual Increases

Listing Price: $4,052,000

Cap Rate
6.00%
Tenant Name
Red Lobster Restaurants
Years Remaining On Lease
16.7
Gross SF
5,640
Guarantor
Corporate Guarantee
Rentable SF
5,640
Price/Gross SF
$718.44
Lease Type
Absolute Net
Rent Per Square Feet
$43.11

Investment Highlights

  • Corporate Guaranteed Lease
  • 17 Year Absolute Triple Net Lease
  • Rare Two Percent Rental Increases Annually
  • Outparcel to Uptown Christiansburg | 538,000 SF Mall Anchored by Kohl's, Homegoods, Dick's Sporting Goods and Belk
  • Dense Retail Corridor | Walmart, Target, Home Depot, Kohls, Dick's, Best Buy, Starbucks, Taco Bell, Outback Steakhouse, Lowes, Hobby Lobby, Walgreens, Barnes & Noble, Belk, Planet Fitness, TJ Maxx, Michaels and Many More
  • Strong Real Estate Fundamentals

Investment Overview

Marcus & Millichap is pleased to present the exclusive listing for Red Lobster located at 75 Peppers Ferry Road in Christiansburg, Virginia. The property is 5,640 square feet and is situated on approximately 0.92 acres of land with 30,000 vehicles per day crossing Franklin St and Peppers Ferry Road. The Red Lobster is located on an outparcel to Uptown Christiansburg, a 538,000 SF Mall Anchored by Kohl’s, Homegoods, Dick’s Sporting Goods and Belk. This Red Lobster is subject to a 25-year triple-net (NNN) Corporate Guaranteed lease, with roughly 17 years remaining on the lease. The rent is scheduled to increase by two percent annually, including through the four, five year tenant renewal options. 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 over $2B in revenue and is the 6th-largest casual dining concept in North America. On August 31st, 2020, a group led by Thai Union Group (“TUG”) acquired Red Lobster. Thai Union Group was previously a minority owner of Red Lobster – first acquiring a 25% stake in the company in 2016. The new ownership group now includes Thai Union Group, current Red Lobster management, and a newly formed investment group, Seafood Alliance, which is led by two prominent global restaurant operators. Founded in 1977, Thai Union has a rich history of commitment to seafood expertise and innovation around the world. Thai Union Group, based out of Thailand with offices in North America, Europe, the Middle-East and Asia, currently serves as a main supplier of seafood for Red Lobster’s across the world. Thai Union Group has been listed on the Stock Exchange of Thailand (SET) since November 1994. Prior to the Red Lobster acquisition, Thai Union Group reported annual sales of over $4.1 Billion. Through acquisitions and organic growth, TUG’s ambitious expansion strategy has established a diverse global brand portfolio. Covering three continents, their brands are consumer favorites and market leaders with a wide range of products including shelf-stable seafood products, frozen and chilled seafood, PetCare products and more. TUG has a long, successful track record and significant experience servicing consumers, supermarkets, restaurants, hospitality and others.

Exclusively Listed By

Broker of Record

  • Brian Hosey

    First Vice President/ Division Manager

    (202) 536-3700

    License(s): VA: 0225247494

    Virginia

Financing By

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