Corporate Subway - Absolute Net - 10 Year Sale Leaseback


Corporate Subway - Absolute Net - 10 Year Sale Leaseback

New 10-Year Lease Term at Close of Escrow 

Subway Corporate Guarantee; Sale Leaseback 
Absolute Net - Zero Landlord Responsibilities
10% Increases Every 5 Years | 3, 5-Year Options
20 Year Operating History | Relocated to Adjacent Corner 
One of the Fastest-Growing Franchises in the World
Newly Built in 2013 With  Drive-Up Window, Concrete Parking Lot - No Maintenance

1621 East Eldorado Street, Decatur, IL 62526

Request Offering Memorandum


Market Summary

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


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

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.

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.

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.

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.