Investment Overview

New 20-Year NNN Ground, Corporate Lease – The Tenant, Pollo Campero of Virginia, LLC, has executed a new 20-year NNN ground lease for a restaurant that will open in early August 2025. The lease has a few unique aspects. First, this lease is 20 years; most in the market today are only 15-year terms. Secondly, this lease is landlord-friendly with a corporate guarantee which does not release the guarantor in the event of a sublease or assignment. Additionally, this corporate lease features rental increases of ten percent (10%) every five years of the base term and each of the three option periods, providing an excellent hedge against inflation. The Central American chicken franchise operates nearly 400 locations Worldwide, and was ranked No. 93 in the 2024 Franchise Times Top 400 list. The Commonwealth of Virginia has been named one of the chain’s expansion regions, among several growth markets including Florida, Texas, California and New York/New Jersey. Relocation of High-Volume Inline Store – Pollo Campero is relocating to this freestanding location from an inline store two miles east, which it will close upon this unit’s opening. The Tenant performs exceptionally well in its existing location. Please contact the listing agent for details. Furthermore, it is notable that the present developer only provided approximately $160,000 of tenant improvement allowance (TIA). The tenant is responsible for demolition, site work and construction of a new 2,595-square-foot restaurant with drive-thru. The Tenant’s significant investment provides additional security to the offering, especially when coupled with the proven sales volumes the existing unit produces from a sub-par location. Excellent Access for 47,000 VPD – The Tenant is exceptionally located at a full access corner parcel along Midlothian Turnpike (47,000 VPD), a major east-west corridor in Chesterfield County. It serves as a primary route for commuters and residents, connecting neighborhoods and commercial hubs to the city of Richmond and the surrounding region. Pollo Campero occupies a corner 0.93-acre parcel with full access via Pocono Drive and right-in access via Midlothian Turnpike. Together, these allow all six-lanes of Midlothian Turnpike to easily access the property. Strong Regional Location – The Midlothian Turnpike retail corridor is anchored by Chesterfield Towne Center (5.6M Annual Customer Visits) and big box retailers, Target, Costco, The Home Depot, Lowe’s, Walmart, and Sam’s Club one-mile west. According to geofencing data from Placer.ai, these big box retailers generate immense traffic with more than 8.38 million annual customer visits collectively. Directly across Midlothian Turnpike is the Pocono Crossing Shopping Center (Big V), which has been renovated for new anchor tenants Academy Sports, TJ Maxx and HomeGoods. The retail node also boasts McDonald’s, Starbucks, Dollar Tree and Royal Farms, among many others, and serves Chesterfield County, and the surrounding communities. Additional Daytime Drivers – In addition to retail drivers, the property is within 1-mile of Johnston-Willis Hospital. The 290+ bed HCA Virginia Health System hospital is one of the leading acute care facilities for Greater Richmond and the Tri-Cities area. It is also proximate to various area hotels, car dealerships, strong business density, and single and multi-family residential density providing consistent daytime traffic. Growing Central Virginia Submarket – Situated 10 miles southwest of the city of Richmond, Chesterfield County is one of the most populous and rapidly growing counties in the state. It has experienced significant growth over the past few decades, driven by its proximity to Richmond and its appeal for suburban living with access to the city. Presently there are 61,045 residents within three-miles, and 154,000 residents within five-miles, with two percent growth projected in the next five years. Chesterfield County has a diverse economy, with industries ranging from retail, healthcare, and education to manufacturing and technology. The county is home to several corporate headquarters, distribution centers, and small businesses.