CHICAGO—As reported in GlobeSt.com yesterday, sellers of quickservice restaurants have benefitted from the extraordinary demand in both restaurants and net leaseproperties that has pushed down cap rates to 6.0%. But theproperties in the sector most in demand remain the corporate-ownedlocations and those operated by large, experienced franchisees.
For example, a high net worth individual from New York justpurchased a single tenant net leased Burger Kingproperty located at 2345 S. Pulaski Rd. in Chicago for $2,385,000.Heartland Midwest LLC, a wholly owned subsidiaryof Heartland Food Corp., the second largest BurgerKing franchisee in the US, guarantees the lease. The sale wasbrokered by the Boulder Group, a net leasedinvestment firm in suburban Chicago.
Burger King occupies the entire 2,980-square-foot building at amulti-tenant shopping center anchored by Advance AutoParts and DaVita Dialysis. It wasdeveloped in 2009 and sits at the intersection of S. Pulaski Rd.and 24th St. Burger King's original 20-year lease does not expireuntil in December 2029 and features 5% rental escalations everyfive years throughout the primary term and renewal optionperiods.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
