Net Leased Fazoli’s Sold

The Boulder Group, a net leased investment brokerage firm, completed the sale of a single tenant Fazoli’s restaurant located in Southern Illinois.

The recently constructed 3,014 square foot property is strategically positioned along a heavily trafficked roadway (25,400 VPD), which serves as the main retail corridor for the surrounding area. The subject property benefits from its location as an outparcel to Target. Additional national retailers nearby include Home Depot, Lowe’s, Kohl’s, Big Lots, Goodwill, JCPenney, Ross Dress for Less, Petco, Verizon, and Starbucks. The property is located within the St. Louis MSA, ranked #21 in the US by population. There are over 50,300 people living within five miles of the property.

Randy Blankstein and John Feeney of The Boulder Group represented the seller in the transaction. The seller is a West Coast based real estate investment group and the buyer was a Midwest based company.

There are over 3 years remaining on Fazoli’s absolute net ground lease that has a corporate guaranty.

There is one 5-year option remaining with an estimated 8% rental increase. Fazoli’s is an American fast casual restaurant with 210 stores located in 26 states. Fazoli’s is a subsidiary of FAT Brands.

“Fast casual restaurants with a national presence remain attractive to investors, especially properties that are an outparcel of a top big-box retailer” said Randy Blankstein, President of The Boulder Group. John Feeney of The Boulder Group, added, “Investor demand for low rent properties with limited lease term remains very strong, which resulted in this property selling above the asking price.”

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