Quaker Steak and Lube | TravelCenters of America Corp Lease
Newport News, VA
Price: $4,369,655Cap Rate: 7.25%Building SF: 9,000 SFLot Size: 1.66 AcresYear Built: 2009Status: Available

Investment Highlights: 

 

Quaker Steak & Lube: Strong Corporate Lease with TravelCenters of America (NASDAQ: TA) – The property is leased to TA Operating, LLC (TravelCenters of America) dba Quaker Steak & Lube, a unique motorsports themed casual dining restaurant with 46 locations in 13 states across the country. Quaker Steak & Lube has received 100’s of awards for its wings and sauces, and was named #4 Best Franchise in America in 2014 by Forbes. The restaurant chain has built a large cult-like following for its crave-able food and high-octane events like Bike Night, Car Cruise-In, Kid’s Events, Wing Challenges, and more.

TravelCenters of America (NASDAQ: TA) reported roughly $6B in total Revenues and $1.6M in total assets (March 2018). TravelCenters of America currently operate 538 travel centers, standalone convenience stores, and standalone restaurants in 43 U.S. states and Canada.

Long Term Absolute NNN Lease – Rent Bump in April 2020 (8% Cap) – Zero Landlord Responsibilities – Strong Rent Growth  – The 15-year lease has 9 years remaining and features a 10% rent increase in the Primary Term and in the (2) 5-year option periods. The next rent increase will occur in April 2020, bumping the cap rate up to 8%.The lease is Absolute Triple-Net (NNN) and provides for no landlord responsibilities, offering an investor a passive income stream with outstanding credit backing.

Strategic Location Along Jefferson Ave/State Route 143 – Excellent Visibility – Retail Synergy  – The property is ideally located on a hard corner signalized intersection along Jefferson Ave, offering excellent visibility and signage to traffic counts of 34,000 cars per day. Jefferson Avenue is the major traffic thoroughfare through the area and is the main retail/business corridor in Newport News. Major retailers line the corridor such as Walmart, Lowe’s, Target, Walgreens, CVS, Sonic, 7-Eleven, Navy Federal Credit Union, Dollar Tree, Krispy Kreme, McDonald’s, Longhorn Steakhouse, Ross, Pier 1 Imorts, TJ Maxx, Trader Joe’s, and more.

Dense Infill Location –  Excellent Demographics – Adjacent to the Award-Winning Villages of Stoney Run Community – The subject property is located in a dense infill location, with over 132,000 people in 53,000 households with an average household income over $76,000 within a 5-mile radius. The Quaker Steak & Lube is located at the entrance to the Villages of Stoney Run, a 282-unit upscale community that has won numerous awards and accolades for its amenities, location and design, and features restaurants, shopping and other services.

Located in Newport News, Virginia – Home to Shipbuilding Giant Newport News Shipbuilding – The subject property is located in Newport News, Virginia, which is the fifth-most populous city in Virginia. Among the city’s major industries are shipbuilding, military and aerospace. Newport News Shipbuilding is the sole designer, builder and refueler of U.S. Navy aircraft carriers and one of two providers of U.S. Navy submarines. With approximately $4 billion in revenues and more than 20,000 employees, Newport News Shipbuilding is the largest industrial employer in Virginia and the largest shipbuilding company in the United States.

Proximity to Norfolk – Home of the World’s Largest Naval Base – Recognized by USA Today as Top 10 Booming Downtown – Newport News is a suburb of Norfolk, the second-most populous city in Virginia after neighboring Virginia Beach. Founded in 1682 and incorporated in 1736, Norfolk is one of the oldest cities in Hampton Roads, and is considered to be the historic, urban, financial, and cultural center of the region. Norfolk is home to Naval Station Norfolk, the world’s largest naval installation, compromising over 62,000 active duty personnel, 75 ships, and 134 aircraft alongside 14 piers and 11 aircraft hangars. Air Operations conducts an average of 275 flights per day or one every six minutes. It is the hub for Navy logistics going to the European and Central Command theaters of operations, and to the Caribbean. Norfolk is also the home of the North American Headquarters for NATO – Allied Commander Transformation (ACT) – the only NATO command in North America and the only permanent NATO headquarters outside of Europe.


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