Carl's Jr | Abs NNN | Low Rent | Hard Corner

Highlights:

• Carl’s Jr., a nationally recognized brand with 1,000+ U.S. locations (638 in CA), ranks #45 in the 2024 Technomic Top 500
• Absolute NNN ground lease with zero landlord responsibilities—tenant covers all expenses, making it ideal for 1031 exchange or passive investors
• Current rent of $137,500 is well below market rates, offering strong long-term upside with potential to significantly increase NOI and ROI
• Located in Bellflower, a densely populated and gentrifying urban area within the nation’s densest metro, offering strong long-term growth potential
• Carl’s Jr. has operated at this location for 26 years, with 4 YRs remaining and two 5-year renewal options, offering long-term stability
• Dense trade area with 290k+ residents and 100,000+ daytime employees within 3 miles, and average household incomes over $100K, driving strong demand

Description:

Faris Lee Investments is pleased to offer for sale a STNL freestanding Carl’s Jr. drive-thru on an absolute NNN ground lease (land ownership) in Bellflower, California. Carl’s Jr. has occupied at this proven location for 26 years and has 4 years remaining of lease term with 2 (5-Year) options to extend the term providing long-term stability & security for the investor. Each option period features scheduled 10% rental increases that provide a natural hedge against inflation and ensures stable cash flow. At the end of the lease term, the building reverts to the land owner creating fee simple ownership (land and building). Strategically positioned in an excellent retail corridor driven by a densely populated trade area, high profile schools, and a large medical center, this Carl’s Jr. location leverages its close proximity to freeway on/off ramps and the dense urban area of Bellflower. This completely passive investment also boasts a drive-thru, further providing intrinsic real estate value and customer convenience. The property offers investors significant advantages in a strong Los Angeles County market, a coveted pad location with excellent visibility, and zero-deferred maintenance.
Carl’s Jr., a leading quick-service restaurant chain with over 1,000 locations in the United States across 16 states, is renowned for its charbroiled burgers and commitment to offering premium-quality, innovative menu items like their Hand-Breaded Chicken Tenders and Hand-Scooped Ice Cream Shakes. Founded in 1941, Carl’s Jr. has a long-standing history and brand recognition, particularly in California where 638 of their locations reside. Ranked #45 in the 2024 Technomic Top 500 Chain Restaurant Report by Restaurant Business, Carl’s Jr. continues to provide reliability and prestige in the quick service restaurant segment.
The property enjoys exceptional visibility and connectivity from its hard corner location at the intersection of Rosecrans Ave. and Woodruff Ave. (57,000 VPD), making it an attractive destination for consumers. Additionally, the property benefits from its close proximity to on/off ramps from both the 105 Freeway (233,000 VPD) and 605 Freeway (285,000 VPD). Strong trade area demographics boast a population of over 290,000 residents within a 3-mile radius and an average annual household income of $100,000+. Bellflower, California located in Los Angeles County is the 8th most densely populated city in California and the 65th most densely populated city in the United States of cities over 50,000 residents. Furthermore, the site is enhanced by nearby Bellflower Middle/High School (2,000 students), St. John Bosco High School (800 students), Norwalk High School (2,000 students) and one of the largest Kaiser Permanente facilities, Kaiser Permanente Downey Medical Center (5,585 on site employees).
This STNL freestanding Carl’s Jr presents investors with a compelling opportunity to acquire a high-quality asset in a prime location. The property features a current annual rent significantly below estimated market rates, offering substantial long-term upside. This presents the potential for significant gains in net operating income and cash flow upon lease expiration, allowing the owner to realize substantial gains. Strategically positioned within a high-traffic retail corridor and dense residential area, this investment offers security and stability, attractive returns, and strong potential for growth.

The city presents a compelling option for those seeking a more affordable housing market within the expensive LA metropolitan area, while still offering convenient access to downtown Los Angeles and major freeways like the 605, 91, and 105. This accessibility makes it attractive for commuters.
Bellflower is known for its family-friendly environment, characterized by numerous well-maintained parks, active community events, and a palpable sense of local pride and belonging among its residents. The city fosters a close-knit community feel. Adding to its appeal is a diverse culinary scene, featuring a range of local eateries alongside familiar national chains.
The city offers stability and a focus on enhancing its existing infrastructure and community spaces. Its established neighborhoods and local amenities contribute to its suburban charm. For individuals and families prioritizing affordability, community spirit, and convenient access to the broader Los Angeles region, Bellflower presents a viable and attractive place to live.