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Restaurant

Shake Shack

6443 Topanga Canyon Blvd, Canoga Park, CA 91303

Listing Price: $7,835,000

Cap Rate
4.00%
Tenant Name
Shake Shack
Years Remaining On Lease
9.6
Guarantor
Corporate Guarantee
Rentable SF
3,616
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$7.22

Investment Overview

Marcus & Millichap has been selected to exclusively represent for sale a high-profile, brand new 2020 constructionfree-standing single-tenant Shake Shack, ideally located at 6443 Topanga Canyon Boulevard directly across the street from Westfield Topanga & The Village in Woodland Hills, CA. The subject property is located just three parcels northwest of the signalized intersection of Victory Boulevard and Topanga Canyon Boulevard, within the boundaries of the high-growth, high-demand submarket of the Warner Center. Shake Shack executed a ten-year corporate guaranteed NNN lease that runs through January 2031, with two 5-year options to extend the lease term through to January of 2041. Minimum rent payments increase by 10% starting July 1, 2025, and on the first day of each option term. Built in May 2020, the subject property is 3,616 square feet situated on 14,397 square feet of land zoned LAWC within the boundaries of the Warner Center 2035 Specific Plan. The site has a total of 14 parking spaces, and benefits from excellent visibility with 120 feet of frontage and one ingress point along Topanga Canyon Boulevard. The restaurant has seating for 80 people inside and offers an additional 590 square feet of outdoor patio seating suitable for an additional 30 people. Shake Shack officially opened for business on June 8, 2020 and operates Sunday through Thursday between the hours of 11:00 AM till 10:00 PM, with Friday & Saturday closing at 10:30 PM. Currently, Shake Shack is paying $7.22 per SF, which is significantly above current rents in the immediate area. The property presents a unique opportunity for an investor to acquire a stable and secure trophy asset in a prime Southern California location with significant growth projections and limited downside. Shake Shack (NYSE: SHAK), a national credit tenant headquartered in New York, NY, is a modern day “roadside” burger stand serving an American menu of premium burgers, hot dogs, crinkle-cut fries, shakes, frozen custard, beer and wine. What originated as a hot dog cart in the heart of Madison Square Park back in 2004, has now transformed into one of the fastest-growing gourmet fast-casual restaurant chains expanding to approximately 300 locations in 30 U.S States and the District of Columbia, as well as over 100 locations internationally. Shake Shack became a publicly-owned company through an initial public offering (IPO) in early 2015, and is now worth $3.58 billion as of December 2020.

Investment Highlights

  • TROPHY NET-LEASED SHAKE SHACK
  • PRIME WARNER CENTER, CA LOCATION
  • STRONG IMMEDIATE DEMOGRAPHICS AND POPULATION DENSITY

Exclusively Listed By

Listing Price: $7,835,000

Cap Rate
4.00%
Tenant Name
Shake Shack
Years Remaining On Lease
9.6
Guarantor
Corporate Guarantee
Rentable SF
3,616
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$7.22

Investment Highlights

  • TROPHY NET-LEASED SHAKE SHACK
  • PRIME WARNER CENTER, CA LOCATION
  • STRONG IMMEDIATE DEMOGRAPHICS AND POPULATION DENSITY

Investment Overview

Marcus & Millichap has been selected to exclusively represent for sale a high-profile, brand new 2020 constructionfree-standing single-tenant Shake Shack, ideally located at 6443 Topanga Canyon Boulevard directly across the street from Westfield Topanga & The Village in Woodland Hills, CA. The subject property is located just three parcels northwest of the signalized intersection of Victory Boulevard and Topanga Canyon Boulevard, within the boundaries of the high-growth, high-demand submarket of the Warner Center. Shake Shack executed a ten-year corporate guaranteed NNN lease that runs through January 2031, with two 5-year options to extend the lease term through to January of 2041. Minimum rent payments increase by 10% starting July 1, 2025, and on the first day of each option term. Built in May 2020, the subject property is 3,616 square feet situated on 14,397 square feet of land zoned LAWC within the boundaries of the Warner Center 2035 Specific Plan. The site has a total of 14 parking spaces, and benefits from excellent visibility with 120 feet of frontage and one ingress point along Topanga Canyon Boulevard. The restaurant has seating for 80 people inside and offers an additional 590 square feet of outdoor patio seating suitable for an additional 30 people. Shake Shack officially opened for business on June 8, 2020 and operates Sunday through Thursday between the hours of 11:00 AM till 10:00 PM, with Friday & Saturday closing at 10:30 PM. Currently, Shake Shack is paying $7.22 per SF, which is significantly above current rents in the immediate area. The property presents a unique opportunity for an investor to acquire a stable and secure trophy asset in a prime Southern California location with significant growth projections and limited downside. Shake Shack (NYSE: SHAK), a national credit tenant headquartered in New York, NY, is a modern day “roadside” burger stand serving an American menu of premium burgers, hot dogs, crinkle-cut fries, shakes, frozen custard, beer and wine. What originated as a hot dog cart in the heart of Madison Square Park back in 2004, has now transformed into one of the fastest-growing gourmet fast-casual restaurant chains expanding to approximately 300 locations in 30 U.S States and the District of Columbia, as well as over 100 locations internationally. Shake Shack became a publicly-owned company through an initial public offering (IPO) in early 2015, and is now worth $3.58 billion as of December 2020.

Exclusively Listed By

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