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Record Setting Arby's Cap Rate

Record Setting Arby’s Cap Rate

Date September 22, 2020

The Boulder Group, a net leased investment brokerage firm completed the sale of a single tenant Arby’s located at 10112 Maysville Road in Fort Wayne, Indiana for $1,200,000 or a 4.58% cap rate.

The 2,400 square foot record setting Arby’s cap rate property is a strategically positioned outparcel of Walmart Supercenter. Other retailers in the immediate area include Menards, Meijer, Walgreens, AT&T, Kohl’s, PetSmart and Marshalls. The property is well located along Maysville Road (18,500 VPD). The Arby’s property has excellent visibility and easy access. There are 86,338 people living within 5 miles of the property and have an average household income of $72,556.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction and were able to secure the lowest cap rate on record for an Arby’s leased property at 4.58% according to CoStar. The seller is a private Midwest based partnership and the buyer is a trade buyer based in the southeast.

The new twenty year Arby’s lease features 10% rental escalation every five years and in each four 5-year renewal option. The lease is guaranteed by Arby’s Restaurant Group, Inc. and has zero landlord responsibilities. Arby’s Restaurant Group, Inc. is a leading international quick-service restaurant company operating in the United States. Arby’s is the second-largest quick-service fast-food sandwich restaurant chain in the U.S. in terms of units and third in terms of revenue, franchising nearly 3,400 restaurants.

“E-commerce resistant retailers including tenants in the QSR sector continue to be in high demand amongst investors” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “Single tenant restaurant properties with low rents continue to garner significant interest amongst private investors and 1031 exchange buyers.”

About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $6 billion of single tenant net lease real estate transactions. From 2012-2019, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago. www.bouldergroup.com