Investment Overview

NNN Lease with Annual CPI Increases – This 0.6-acre property is leased to GPS Hospitality Partners II, LLC under an absolute NNN lease with zero landlord responsibilities. The site has operated as a Burger King since 1973. In December 2017, the tenant razed the original building and, at its sole cost, rebuilt it to Burger King’s modern format—a 2,715-square-foot store with a newly added drive-thru lane and multiple-car stacking. The primary lease term expired in June 2020, and the tenant has since exercised two of its five renewal options, with the current term running through June 2030. The lease carries highly desirable annual CPI increases, providing a built-in hedge against inflation. Premium Retail Location Along Route 40 – The subject property sits at the intersection of Route 40 and South Cleveland Highway, where traffic counts total approximately 29,000 vehicles per day. The site anchors a commercial corridor running from the I-70 interchange toward downtown Hagerstown that has seen significant retail growth over the past decade. National tenants along the corridor include McDonald’s, Wendy’s, Dunkin’, Jersey Mike’s, Chipotle, Taco Bell, and Sheetz, among many others. The property offers excellent access to a population of 65,286 within a 3-mile radius, along with the surrounding business base. Following the 2023 closure of the Burger King at 13014 Pennsylvania Avenue, just 2.38 miles away, this location’s customer traffic has increased 9.6% over the trailing three years per Placer.ai. Below-Market Rent in Aldi-Anchored Center – Burger King occupies a corner parcel within an Aldi-anchored neighborhood center that also includes Family Dollar, AutoZone, Krispy Kreme, Papa Johns, and a mix of local tenants. A Lidl that opened in 2019 sits adjacent to the center, and Sheetz recently opened a new store along the same corridor. The current rent of just $24 PSF is well below market, particularly given the tenant’s 2017 rebuild. By comparison, the neighboring Krispy Kreme signed a lease in 2021 at $51 PSF with 10% increases every five years. Burger King’s modern building could readily be retrofitted to achieve rents $10–15 PSF higher today. Experienced QSR Franchisee – GPS Hospitality is a privately held quick-service restaurant franchisee founded in 2012 by Thomas A. Garrett, former president and CEO of Arby’s Restaurant Group. The company launched with the acquisition of 42 Burger King restaurants and has since grown through additional acquisitions, new development, and multi-brand expansion. GPS now operates more than 475 Burger King, Popeyes, and Pizza Hut locations across 13 states, and has been recognized for its strong culture, strategic leadership, and operational excellence, with awards including QSR Magazine’s Franchisee of the Year in 2024 and Burger King’s Developer of the Year in 2023.