Buyer Richard Flucke obtained a 10-year, $690,000 loan from Portland, OR-based Standard Insurance Co. at a fixed-rate interest of 6%. "I was comfortable from the standpoint that he would qualify, since he was coming in with a very strong down payment," Chris Doty, an associate with Marcus & Millichap in Phoenix, tells GlobeSt.com about the acquisition of 3567 W. Northern Ave. "The financing that he was trying to achieve was reasonable." Flucke put down $610,000, Doty says.
The 1976 restaurant was on the market three months and generated one offer from Flucke, who met the ask, according to Doty. He says JB's Family Restaurant, positioned on a half-acre tract, has exhibited strong growth in annual sales and expects to generate a yearly rent of $104,000 or $21.66 per sf. Rental increases of 6.75% every five years are expected.
The Tempe-based JB's Family Restaurants Inc. signed a 20-year lease at closing with two five-year options. Doty represented the seller and Steve Sauter of Marcus & Millichap in Palo Alto, CA, represented Flucke in the deal.
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