3541 Hamner Ave

Investment Highlights

Brand New 20-year NNN Sale-Leaseback | Zero Landlord Responsibilities with 10% rental increases every five years and Six (6), five (5) year options Fast Growing Tenant | has approximately 512 locations and ranked the #8 as the Fastest Growing Chains in the U.S. High Profile Location | Located at the heart of heavily trafficked Hamner Avenue (37,000+ VPD) 10 Yr Personal Guarantee | The franchisee, Salim Development, LLC, operates more than 22 locations and multiple concepts Strong Sales Projections | Sales Projections are over $3M annually based on similar stores Strong Demographics | 290,000 residents within a 5 mile radius

Executive Summary

Matysek Investment Group is pleased to present this sale-leaseback opportunity to purchase a brand new Freddy?s Frozen Custard & Steakburgers on a 20-year, absolute NNN lease with 10% rental increases throughout the primary term and options. The yield jumps to a 5.22% CAP in 5 years. The franchisee, Salim Development Group, LLC (SDG), will personally guaranty for 10 years (high net worth) and is a multi-concept operator with over 22 businesses (3 Freddy's, 17 Wienerschnitzels, and multiple car washes). Freddy?s has a development agreement with SDG to build 12 total stores over the next 7 years, which an aggressive yet calculated growth plan. Freddy?s currently has 512 locations which has grown from 400 just a few years ago. The site is scheduled to open early April of 2024, and is projected to do over $3M in annual sales (their Fontana location is on pace to do ~$2.9M in sales and Norco is projected to do more). SDG carefully hand picks all their locations, and self develops the majority. This care has led to SGD being one of the most profitable franchisees in each respective concept. This triple net lease includes an effective inflation hedge with 10% rental increases every 5 years including throughout the six 5-year options. Exceptionally located at the busy Hamner Avenue (37,000+ VPD), this location is projected to have exceptional sales volumes and be highly profitable, securing the investor sentiment that the rent will always be paid in full and on time.

• Sale Type    Investment NNN
• Sale Condition    Sale Leaseback
• Property Type    Retail
• Property Subtype    Fast Food Fast Food General Retail Freestanding General Retail Restaurant Fast Food
• Building Size    2,446
• Building Class    B
• Year Built    2024
• Construction Status    Under Construction
• Price    3,789,500
• Price Per SF    1,549
• Cap Rate    4.75
• NOI    180,000
• Tenancy    Single
• Building Height    1 Story
• Building FAR    0.09
• Land Acres    0.63 AC