Property details

El Pollo Loco Ground Lease For Sale, Pacific West Region

Property Description



El Pollo Loco Ground Lease For Sale

This is a Private, Confidential and Off-Market Offering. This property is quietly being offered and is not being widely marketed on commonly used large listing services.

Losing out on properties as fast as you see them? Tip: Shoot first, then aim later. If a property hits most of your high points, move to lock it up first with our Non-Binding Letter of Intent ("LOI") rather than over-analyzing then losing the property when ready to pull the trigger. Email or call us at (800) 664-1031 to request that we send you our buy-friendly LOI.

Located in an Income Tax Free State.

• Single Tenant NNN Investment

• Fee simple ground lease

• Strong Corporate Guaranteed Lease by El Pollo Loco, Inc. - Timaran Capital Partners

• 17 Years Remaining - Absolute NNN Lease with 4-5 Year Options - Ground Lease Ownership

• Nation's #1 Leading Quick-Service Restaurant Chain Specializing in Flame-Grilled Chicken

• 10% Rental Increases Every 5 Years, Including Options - Great Inflation Hedge

• Outparcel PAD to Lake Mead Crossing (730K SF) - Target Anchored Destination Power Center

• Premiere Signalized Corner Location - Excellent Visibility & Signage

• Surrounding National Retailers Include; Target, Staples, Petco, Ross, TJ Maxx, Petsmart,

• Verizon, Radio Shack, GNC, Discount Tire, Carl's Jr., Wells Fargo, Chevron, Subway and Fiesta

• Casino & Resort

• QSR Magazine "Top 50 Restaurants" for 2011- Over 450 Locations and Growing



• STRONG CORPORATE GUARANTY

• > Corporate Guaranteed Lease by El Pollo Loco Inc. - Trimaran Capital Partners

• > Nation's #1 Leading Quick-Service Restaurant Chain Specializing in Flame-Grilled Chicken

• > QSR Magazine -Top 50 Restaurants- for 2011 - Over 450 Locations and Growing

• > Voted -Best Chicken Place- Nine Consecutive Years by Readers of the Orange County Register

• > Ranked in -Top 100 Movers & Shakers- by Fast Casual Magazine 2011



• STABLE INCOME - EASE OF MANAGEMENT

• > Newer 20 Year Absolute NNN Investment with 4-5 Year Options - 17 Years Remaining

• > 10% Rental Increases Every 5 Years, Including All Options - Great Inflation Hedge

• > Zero Management Responsibilities - Tenant Pays All Expenses Directly - Ground Lease Ownership

• > Single Tenant Free Standing Building with Drive-Thru - Street Monument Signage

• > Newer Construction - Built in 2009 - Coupon Clipper Asset



• EXCELLENT RETAIL LOCATION - STRONG DEMOGRAPHICS

• > Premiere Corner Location - Outparcel PAD to Mall (730k SF)

• > Excellent Traffic/Street Visibility - Main Retail Trade Area in Path-of-Growth Region

• > Surrounding National Retailers Include; Target, Staples, Ross, Marshalls, TJ Maxx, Petsmart, Verizon, Radio Shack, GNC, Discount Tire, Carl's Jr., Wells Fargo, Chevron, Subway and Fia a Casino & Resort

• > Incredible Demographics - Adjacent to Affluent Community of Green Valley Ranch

• > Shadow-Anchored by Fiesta Station Casino - Directly Off Interstate 215 - Dominant Retail Center



• PERFECT 1031 EXCHANGE PROPERTY

• > No Existing Financing in Place - Newer Construction - 17 Yrs Left on Initial Term

• > Zero Management Responsibilities - Absolute NNN Long-Term Lease - Fee Simple Ground Lease

• > Strong Las Vegas Retail Location - Neighbors Highly Affluent Community of Green Valley

• > Great Inflation Hedge - 10% Rental Increases Every 5 Years, Plus All Options

• > Rare Opportunity to Own National QSR Retailer with Corporate Lease - Trophy Asset

About the Tenant

It began decades ago in the small town of Guasave on Mexico’s Pacific Coast. The year was 1975 when a roadside chicken stand named El Pollo Loco (pronounced “L-Po-yo Lo-co” and Spanish for “The Crazy Chicken”) opened.

Its signature menu item was (and remains) unique-- fresh, natural chicken marinated in a special recipe of herbs, spices and citrus juices passed down from the founding family The marinated chicken was then flame-grilled to perfection, hand cut and served hot off the grill for the mouthwatering taste of El Pollo Loco that people couldn’t find anywhere else. El Pollo Loco quickly became a local favorite.

As people recognized its uniqueness-- fresh, wholesome, flavorful food cooked slowly over an open grill -- El Pollo Loco prospered. It quickly earned a reputation for using only the finest, freshest ingredients. In 1998, El Pollo Loco added self-serve salsa bars in its restaurants, providing guests the opportunity to personalize their menu selections with signature El Pollo Loco salsas prepared fresh every day: its famous House Salsa, Spicy Chipotle Salsa, Avocado Salsa and Pico de Gallo.

Type: Privately held company
Industry: Fast food
Founded: Guasave, Sinaloa, 1975
Headquarters: Costa Mesa, California
Number of locations: 450
Key people: Steve Sather, President, CEO
Products: Flame-grilled chicken and related Mexican food
Owner(s): Trimaran Capital Partners
Website: www.elpolloloco.com

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Highlights

Status:
Sold
Price:
$1,615,000
PSF:
$505
Cap Rate:
6.50%
Annual Rent:
$105,000
Rent Increases:
Annual Rent Terms:

Years 1-5: $105,000

Years 6-10: $1115,500

Years 11-15: $127,050

Years 16-20: $139,755

Renewal Options:

(4-5 Year Options) Years 21-25: $160,718

Years 26-30: $176,790

Years 31-35: $194,469

Years 36-40: $213,916
 

Property Information

Building Size:
3,200 sq.ft.
Property Type:
Ground Lease
Industry Type:
Restaurant
Units/Spaces:
1
Year Built:
2008
Land Area:
30,000 sq.ft.
Purchase Tenure:
Fee Simple
 

Lease information

Tenant:
El Pollo Loco
Lease Type:
NNN
Lease Commencement:
01/12/2009
Lease Expiration:
01/11/2029
Lease Term:
20 years
Lease Remaining:
3.2 years
Landlord Responsibilities:
None - Absolute NNN
Options:
Four 5-year options
 

Existing financing information

N/A

The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.