Market Summary

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Price                                   $924,999

Cap Rate                            6.74%

NOI                                     $62,370

Rentable SF                       4,000 SF

Price per SF                       $231.25

Year Built                            2013

Lot Size                               .55 Acres

Description

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Marcus & Millichap is pleased to present exclusively listed property located at 1621 E. Eldorado Street, Decatur, IL.

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The developer of the Subway building is also the Subway operator.  He recognized an opportunity to reposition (relocate) his successful store on the adjacent lot to his, then current location, which was in a strip center.  This new development would add a drive through, expand his footprint, offer better access-located on a corner, improve the customer experience and additional income.

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This building was built in 2013 as a two-tenant property.  Subway corporate would lease 2,300 sf with 1,700 sf available to lease to a multitude of other tenant options; currently leased to Carolyn’s Mega Slots.  This investment opportunity functions as a single tenant.  The developer/Subway Franchisee will leaseback the entire 4,000 sf building and will be responsible for all the expenses plus manage the 1,700 square foot suite.  This is an absolute net lease with no landlord responsibilities investment with a 10-year base term and three-five-year options.  To keep up with inflation, the rent increases 10% every 5 years.  Corporate Guaranteed lease.

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Owning a property with two tenants, while having the luxury of it operating as a single tenant, provides flexibility and stability for the future of the building. Currently, the Subway's operator sub-leases 1,700 sf to Carolyn's Mega Slots for $18,000/year. The $18,000/year from Carolyn’s Mega Slots is included in the NOI of $62,370.

The developer/franchisee will sign a personal guarantee for the entire 4,000 sf.  He has 20 years experience in the restaurant business and develops many of his own buildings.  He currently operates ten Subway stores with another under development/renovation and one Sonic restaurant.

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This investment offers a higher return than other comparable Subways; at list 6.74% versus 5.25%-5.75% cap rate and a lower price per square foot of $231 versus $329+  per square foot.