October 31, 2017 – Jeremy Black of Horvath & Tremblay has successfully completed the sale of a free standing Wendy’s in St Joseph, MI. Horvath & Tremblay represented the seller to close the property at a sale price of $1,760,039, a 5.1% cap rate.
Wendy’s operates under a 20-year, triple-net (NNN) lease which commenced in March 2016 and has 18+ years remaining on the lease term plus two, five-year tenant renewal options. The Wendy’s lease provides for 10% rent escalations every five years throughout both the original lease term and renewal terms and is fully guaranteed by the full faith and credit of Wendy’s parent corporation. Wendy’s has occupied this St Joseph, Michigan location since 1999 before committing to their new 20 year lease in March 2016. St Joseph is a lake-front town on Lake Michigan that is located 90 miles southeast of Chicago. The restaurant sits at a corner location on Route 63 (Niles Avenue) the main coastal bi-way through the region and just 2.5 miles from the intersection with I-94, the main east-west highway connecting Chicago and Detroit. Additional national retailers in the immediate area include McDonald’s, Burger King, Dunkin Donuts, Taco Bell, Qdoba, Domino’s, Little Caesars, Taco Bell, Buffalo Wild Wings, Chili’s, Walgreens, O’Reilly Auto Parts and Family Dollar.
Horvath & Tremblay is one of the most active and successful Investment Real Estate Brokerage firms in the United States. Our advisors specialize in the sale of single tenant net-lease assets and retail shopping centers. They have experience successfully structuring sale lease-back programs, portfolio dispositions, and 1031 exchanges. Horvath & Tremblay is dedicated to being the best source of information and expertise in the marketplace for private investors, developers, institutions, and industry professionals.