Pizza Hut | Across from Riverdale Center Shopping Mall
West Springfield, MA
Price: $1,305,000Cap Rate: Building SF: 2,380 SFLot Size: 16,117 SFYear Built: 2014Status: Closed

Investment Highlights: 

Globally Recognized Tenant: Pizza Hut (NYSE: YUM) –  Successful 100-Unit Operator – Pizza Hut is the largest pizza chain in the world, operating over 16,000 restaurants and 350,000 team members in more than 100 countries. Pizza Hut is a subsidiary of YUM! Brands, Inc. (NYSE: YUM), the largest restaurant company in the world with over 43,500 restaurants in more than 135 countries and territories. YUM! Brands is ranked number 218 on the Fortune 500 list.

 

GC Pizza Hut LLC is the #1 Franchisee-Large Owner/Operator in the Pizza Hut System, New England Region, operating 100 stores across New York, Massachusetts, Connecticut, Vermont, New Hampshire, Maine, and Tennessee.

6% Rent to Sales Ratio – Unit Level Sales 68% Above Pizza Hut National Average – Highly Profitable Location  – The Tenant has reported an ideal 6% rent to sales ratio along with unit level sales that are roughly 68% above Pizza Hut’s national average (Source: Statistica.com 2016). This alleviates any future vacancy risk concerns and provides a future investor with a long-term passive income stream.

New 20-Year Absolute NNN Lease – Strong Rent Growth – Zero Landlord Responsibilities  – Upon close of escrow, the tenant will execute a 20-year lease upon close of escrow that will feature 10%increases every 5 years, offering an investor a steady income stream with rent growth as a hedge against inflation.

Located Across from Riverdale Center & Riverdale Shops – Regional Destination Shopping Malls – The subject property is located across from the Riverdale Center Shopping Mall, a destination shopping center with tenants including Dick’s Sporting Goods, Costco, Staples, Table & Vine, Hampton Inn, and Key Bank, and within walking distance of Riverdale Shops, a 273,500-square-foot center with major tenants Kohl’s, Stop & Shop, Aldi, Dollar Tree, Five Below, and David’s Bridal. Proximity to these big-box retailers offers outstanding synergy and a heavy customer draw to the area.

Located on Main Artery Through Downtown West Springfield – Proximity to Interstates 90 & 91 – Solid Traffic Counts – The subject property is located along Riverdale Rd, which is the main north/south artery through West Springfield from Interstate 91 (77,000 CPD), offering excellent visibility to traffic counts of 12,000+ cars per day. The Riverdale Road corridor is a major regional shopping hub, with a number of “big box” retail stores and car dealerships, including the only Costco location in the Pioneer Valley.  

Located in Springfield: A City on the Rise – Thriving Business Community  – The subject property is located in West Springfield, MA, which is located 55 miles west of Worcester and 85 miles southeast of Albany, the capital of New York. Springfield is the fourth-largest city in New England and the hub of Western Massachusetts. MSNBC has highlighted Springfield as one of the top ten cities in America where business opportunities are rising. With the $950 million MGM Springfield Casino slated to open in September 2018, the long-anticipated completion of the redeveloped historic Union Station, and the newly constructed state-of-the-art CRRC Corporation’s railcar assembly facility in the former Westinghouse manufacturing center, Springfield continues to be a dynamic economic force in New England.


Ryan Barr

rbarr@lee-associates.com
O. 760.448.2446
F. 760.929.9977

Ryan Bennett

rbennett@lee-associates.com
O. 760.448.2449
F. 760.929.9977