Restaurant

Taco Bell

645 Horning St, San Jose, CA 95112

Listing Price: $3,840,000

Cap Rate
3.91%
Tenant Name
Taco Bell
Years Remaining On Lease
15.0
Gross SF
2,494
Guarantor
Local or Regional Franchisee
Rentable SF
2,494
Price/Gross SF
$1,539.70
Lease Type
NNN Ground Lease
Rent Per Square Feet
$60.14

Investment Overview

Marcus & Millichap has been selected to exclusively market for sale Taco Bell located at 645 Horning Street in San Jose, California The subject property is a single-tenant fast food restaurant building with a drive-through located at the interchange of US Highway 101 and Oakland Road. The building will measure approximately 2,494 square feet and will be situated on a 0.65-acre site. The seller expects the building to be completed in January 2021. The property is leased for a term of 15 years and has two, five-year renewal options. This is a ground lease with an absolute net lease expense basis; the tenant is responsible for all operating expenses associated with the property.

645 Horning Street is located at the interchange of US Highway 101 and Oakland Road and benefits from excellent access and good visibility. Taco Bell is part of a larger development that will include a gas station and 848 self-storage units and these uses will bring traffic to the site. The neighborhood surrounding the property is developed with a mix of industrial uses. The industrial uses create a large daytime population of employees, which is a major benefit for a fast food restaurant. In addition to the traffic from the morning and evening commute, there is a large potential customer base near the site. The area also has a dense residential population, with more than 20,000 people within one mile of the property. The combination of daytime population, residential population, and proximity to a freeway make the site ideal for a fast food restaurant.

Traffic along Oakland Road will increase dramatically when the San Jose Flea Market site is fully redeveloped. The Flea Market site is approximately 120 acres and is proposed for redevelopment with up to 4,400 homes, 3.6 million square feet of office space, and 100,000 square feet of retail space. KB Homes has already built 449 single-family residences at the site and Western National is building a 551-unit multi-family property; the retail center is also underway. When complete, this redevelopment project will dramatically change the neighborhood into a high-density transit village. Additionally, the property is about two miles from downtown San Jose and there are dozens of major development projects either underway or in the planning stages in the downtown area.

Investment Highlights

  • Redevelopment of the 120-Acre Flea Market Site Will Add 4,400 Homes
  • Rare Silicon Valley Single-Tenant Net Lease Investment Offering
  • 15-Year Ground Lease to Taco Bell (Regional Franchise Operator)
  • 10.0% Rent Increases Every Five Years During Initial Lease Term and Options
  • Excellent Access from US Highway 101
  • Large Employer Base and Significant Daytime Population in the Trade Area

Exclusively Listed By

Listing Price: $3,840,000

Cap Rate
3.91%
Tenant Name
Taco Bell
Years Remaining On Lease
15.0
Gross SF
2,494
Guarantor
Local or Regional Franchisee
Rentable SF
2,494
Price/Gross SF
$1,539.70
Lease Type
NNN Ground Lease
Rent Per Square Feet
$60.14

Investment Highlights

  • Redevelopment of the 120-Acre Flea Market Site Will Add 4,400 Homes
  • Rare Silicon Valley Single-Tenant Net Lease Investment Offering
  • 15-Year Ground Lease to Taco Bell (Regional Franchise Operator)
  • 10.0% Rent Increases Every Five Years During Initial Lease Term and Options
  • Excellent Access from US Highway 101
  • Large Employer Base and Significant Daytime Population in the Trade Area

Investment Overview

Marcus & Millichap has been selected to exclusively market for sale Taco Bell located at 645 Horning Street in San Jose, California The subject property is a single-tenant fast food restaurant building with a drive-through located at the interchange of US Highway 101 and Oakland Road. The building will measure approximately 2,494 square feet and will be situated on a 0.65-acre site. The seller expects the building to be completed in January 2021. The property is leased for a term of 15 years and has two, five-year renewal options. This is a ground lease with an absolute net lease expense basis; the tenant is responsible for all operating expenses associated with the property.

645 Horning Street is located at the interchange of US Highway 101 and Oakland Road and benefits from excellent access and good visibility. Taco Bell is part of a larger development that will include a gas station and 848 self-storage units and these uses will bring traffic to the site. The neighborhood surrounding the property is developed with a mix of industrial uses. The industrial uses create a large daytime population of employees, which is a major benefit for a fast food restaurant. In addition to the traffic from the morning and evening commute, there is a large potential customer base near the site. The area also has a dense residential population, with more than 20,000 people within one mile of the property. The combination of daytime population, residential population, and proximity to a freeway make the site ideal for a fast food restaurant.

Traffic along Oakland Road will increase dramatically when the San Jose Flea Market site is fully redeveloped. The Flea Market site is approximately 120 acres and is proposed for redevelopment with up to 4,400 homes, 3.6 million square feet of office space, and 100,000 square feet of retail space. KB Homes has already built 449 single-family residences at the site and Western National is building a 551-unit multi-family property; the retail center is also underway. When complete, this redevelopment project will dramatically change the neighborhood into a high-density transit village. Additionally, the property is about two miles from downtown San Jose and there are dozens of major development projects either underway or in the planning stages in the downtown area.

Exclusively Listed By

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