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t r a n s l a t e

Applebee's Net Lease Investment Opportunity | 6.5% Cap Rate

1531 GA Hwy 400 S
Dawsonville, GA 30534
PRICE : $2,910,000
CAP RATE: 6.5%
PROPERTY TYPE: Retail
SITE SIZE: 1.41 Acres
BUILDING SIZE: 4,740 SF
YEAR BUILT: 2005

Highlights

  • Prominently-situated real estate at signalized intersection with over 27,800 VPD
  • Robust retail trade area with traffic generators including dozens of national retailers
  • New Holiday Inn Express & Suites opening adjacent to restaurant
  • Area experiencing continued job and population growth well above US averages
  • Strong guarantor with recently extended NNN lease to 2036 with annual increases
  • Bonus of extra income through June 2021 (see detailed rent schedule)

Description

This Applebee's is a 4,740 SF newer-store prototype located in Dawsonville, GA, approximately one hour north of Downtown Atlanta. The store is strategically located at a signalized corner across from over 100,000 SF of newly-developed, thriving big box retailers, including The Home Depot, Hobby Lobby, Marshall's, Kroger, Walmart and more, with traffic counts over 27,800 VPD. Within a half mile north are the North Georgia Premium Outlets, a regional discount shopping destination. Directly behind the Applebee's is a Holiday Inn & Suites in the final stages of construction, further demonstrating the sustained and growing traffic drawn to the area. U.S. Census Bureau reports have named Dawson County one of the 100 fastest growing counties in the nation. The county's population has increased more than 31% over the last 10 years and has a 10-year job growth prediction of more than 47% higher than the U.S. average of 33.5%.

The Applebee's absolute NNN lease is corporate guaranteed and operated by NRP (Neighborhood Restaurant Partners, LLC), a wholly owned subsidiary of Atlanta based private equity firm, Argonne Capital. NRP operates over 118 Applebee's in AL, FL, GA and TX. Its parent company, Argonne, is also a large franchisee of IHOP, Krystal, On the Border and John Deere locations.

The current absolute NNN lease has been recently extended to 16 years with annual rent increases. Due to the COVID-19 environment, the tenant requested the lease extension in exchange for modest rent adjustments, which also reflect a projected lower rent to sales ratio. The subject property is being offered for $2,910,000 at a 6.5% cap rate based on the renegotiated 2021 net operating income of $189,150.

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