Restaurant
Black Bear Diner
237 SW 4th St, Madras, OR 97741
Listing Price: $2,430,000
Investment Overview
The Black Bear Diner at 237 SW 4th Street offers a freestanding, single-tenant, absolute NNN investment with a 26-year operating history at one of Central Oregon's busiest highway crossroads. Converted by the brand's first-ever franchisee, the location grew sales to $2,714,000 in 2025—among the strongest records in a 160-plus-unit, 14-state system. Income is anchored by a percentage-rent structure paying the greater of $142,500 base rent or 6% of gross sales, with 10% base increases every five years, a base term through 2035, and two five-year options extending to 2045. The result is durable, inflation-hedged cash flow with genuine upside as sales grow—a passive investment in a supply-constrained market. Priced at $2,430,000 (6.70% cap on 2025 NOI of $162,840).
Black Bear Diner
Investment Highlights
- Absolute NNN lease with tenant responsible for roof, structure & parking. Base term through May 2035 plus two 5-year options to 2045. Truly passive, de-risked ownership.
- 26-year operating history under Black Bear Diner's original franchisee. 2025 sales of $2.71M rival top system performers—remarkable for a city of ~7,800 residents.
- Percentage rent pays greater of $142,500 base or 6% of sales, adding $20,340 of overage in 2025. Built-in 10% base bumps every 5 years deliver inflation-hedged, growing NOI.
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Listing Price: $2,430,000
Investment Highlights
- Absolute NNN lease with tenant responsible for roof, structure & parking. Base term through May 2035 plus two 5-year options to 2045. Truly passive, de-risked ownership.
- 26-year operating history under Black Bear Diner's original franchisee. 2025 sales of $2.71M rival top system performers—remarkable for a city of ~7,800 residents.
- Percentage rent pays greater of $142,500 base or 6% of sales, adding $20,340 of overage in 2025. Built-in 10% base bumps every 5 years deliver inflation-hedged, growing NOI.
Investment Overview
The Black Bear Diner at 237 SW 4th Street offers a freestanding, single-tenant, absolute NNN investment with a 26-year operating history at one of Central Oregon's busiest highway crossroads. Converted by the brand's first-ever franchisee, the location grew sales to $2,714,000 in 2025—among the strongest records in a 160-plus-unit, 14-state system. Income is anchored by a percentage-rent structure paying the greater of $142,500 base rent or 6% of gross sales, with 10% base increases every five years, a base term through 2035, and two five-year options extending to 2045. The result is durable, inflation-hedged cash flow with genuine upside as sales grow—a passive investment in a supply-constrained market. Priced at $2,430,000 (6.70% cap on 2025 NOI of $162,840).
Exclusively Listed By
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