Net Lease LongHorn Steakhouse Property For Sale Date February 6, 2017
The Boulder Group is pleased to exclusively market for sale a new single tenant net lease LongHorn Steakhouse ground lease located in Oswego, Illinois. The property is located along the Route 34 corridor, one of the largest commercial centers in the Fox Valley area offering over 2.8 million square feet of commercial space and featuring big box retailers such as Walmart Supercenter, Target and The Home Depot, to name a few. The ground lease has an initial primary term of ten years. The absolute net lease features a 10% rental escalation in the sixth year and in each of the four 5-year renewal option periods. LongHorn Steakhouse has more than 480 restaurants across 40 states. The tenant will be RARE Hospitality International, Inc., a wholly owned subsidiary of Darden Restaurants, Inc. (NYSE: DRI), doing business as LongHorn Steakhouse.
The 1.6 acre property is strategically located in a dominant regional retail corridor along Route 34. Route 34 is a primary north-south thoroughfare in the area that experiences traffic counts in excess of 26,000 vehicles per day. The net lease LongHorn Steakhouse is an outparcel to Prairie Market, a 678,888 square foot retail property anchored by Best Buy, Dick’s Sporting Goods, Hobby Lobby, Kohl’s and Walmart Supercenter. Other retailers in the development include DSW Designer Shoe Warehouse, ALDI, Pier 1 Imports and a number of national quick service restaurants. There are over 210,000 people living within a five mile radius of the property earning an average household income of roughly $90,000.
There are ten years on the LongHorn Steakhouse ground lease expected to commence upon the earlier of opening or August 28, 2017. The lease will feature a 10% rental escalation in year six of the primary term and in all four 5-year renewal option periods. The tenant will be RARE Hospitality International, Inc., a wholly owned subsidiary of Darden Restaurants, Inc. (NYSE: DRI), doing business as LongHorn Steakhouse.
- Brand new construction
- Located within the Chicago MSA
- 10 year initial lease term
- 10% rental escalation in initial term and four 5-year renewal options
- No landlord responsibilities
- Corporate lease
- Located in a dominant regional retail corridor as an outparcel to a Best Buy, Dick’s Sporting Goods, Hobby Lobby, Kohl’s and Walmart Supercenter anchored development
- Additional retailers located in the development include DSW Designer Shoe Warehouse, ALDI, Pier 1 Imports and a number of national quick service restaurants.
- Over 210,000 people located within a five mile radius