Overview

Description

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a newly-constructed, franchisee guaranteed, drive-thru equipped Popeyes investment property located in Gallup, New Mexico. The tenant, Legacy Chicken LLC, recently signed a brand new 20-year lease with 4 (5-year) options to extend, demonstrating their commitment to the site. The lease features 7% rental increases every 5 years throughout the initial term and option periods, growing NOI and hedging against inflation. The lease is guaranteed by an experienced QSR operator (12 Popeyes units and 15 Burger King units), and is absolute NNN with zero landlord responsibilities, making this an ideal, management-free investment opportunity for a passive investor. Founded in 1972, Popeyes is a leading QSR chicken brand with over 3,600 locations in the United States. Legacy Chicken, LLC has signed an agreement with Popeyes to develop 15 new stores in New Mexico over the next four years. All 15 stores will be under the Legacy Chicken, LLC entity.

Popeyes is strategically located along E Historic Hwy 66, averaging over 18,000 vehicles passing by daily. The property benefits from excellent visibility via significant street frontage and a large pylon sign along E Historic Hwy 66. The new building will feature a state-of-the-art design using high-quality materials, and will be equipped with a drive-thru to maximize sales and convenience for customers. Furthermore, the asset is ideally situated near the center of Gallup, New Mexico, with numerous nearby national/credit retail tenants including Family Dollar, Albertsons, Dollar Tree, Dollar General, Walgreens, O’Reilly Auto Parts, Aaron’s, and many more. Strong tenant synergy increases consumer draw to the immediate trade area and promotes crossover store exposure to the site. In addition, the property is located within a hospitality cluster comprised of numerous hotels including Holiday Inn Express & Suites Gallup (91 rooms), Days Inn & Suites Red Rock Gallup (75 rooms), and Fairfield Inn & Suites by Marriott Gallup (72 rooms), further increasing consumer traffic to the site. The 5-mile trade area is supported by over 22,000 residents and 15,000 employees with an average household income of $70,000, providing a direct consumer base from which to draw. The Popeyes benefits from limited competition in the trade area, offering an immediate QSR chicken option for highway travelers and locals alike.

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