Net Lease Steak ‘n Shake Property Profile and Cap Rates

Net Lease  Steak ‘n Shake– Typical Property and Lease Terms

 

Price Range:	$2M
Cap Rate:	5.50% - 6.50%
Net Income:	$115,000 - $200,000
Price Per foot:	$450 PSF - $650 PSF
Building Size:	3,700 SF
Lot Size:	1 Acre
Escalations:	10% Every 5-Years
Lease Term:	20 Years
Lease Type:	NNN
Credit Rating:	B- (S&P)

 

Tenant Company Information:

 

Steak ‘n Shake Operations, Inc. (doing business as Steak ‘n Shake) is an American casual restaurant chain concentrated primarily in the Midwestern United States with locations also in the South, Mid-Atlantic and Western United States, Europe, and the Middle East. The company is headquartered in Indianapolis, Indiana and is a wholly owned subsidiary of Biglari Holdings.[3] As of 2018, 628 Steak ‘n Shake restaurants were in operation; 414 corporate operations and 214 franchised establishments, although the company has since been attempting to convert to a fully franchised model.[4] Typical restaurant locations have sit-down, drive-thru and front-window service, resulting in a hybrid of fast-food to-go service and diner-style sit-down service. Many Steak ‘n Shake restaurants are open 24 hours a day, seven days per week. The menu features primarily burgers and hand-dipped milkshakes, though other entrees, side items, and drinks are also available.

The corporation’s slogan “Famous for Steakburgers” refers to its most prominent food item, the “Steakburger”, so called because it was originally made from a mixture that included T-bone, sirloin, and round steaks. The “Steak” in the restaurant name comes from that menu item.

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