May 15, 2019 – Lee & Associates-LA North/Ventura (LeeLANV) transacted the sale of a Burger King occupied retail building totaling 3,948 square feet for $1,875,000, according to Lee LANV Principal and National Director of the Lee & Associates Multifamily Group Warren Berzack.
Berzack along with Lee principal Slavic Zlatkin represented the seller, a private investor. The buyer is a private investor based in Virginia Beach, Va.
The single-tenant retail property is located at 1901 S Military Highway, in Chesapeake, Va., home to a naval base. Built in 1988, it sits on 48,352 square feet of land.
The Burger King tenant is among the Top 10 largest BK franchisees with over 100 locations. The company holds an Absolute Triple Net Lease on the property with nine years remaining on the primary term. The purchase price of $1,875,000 represents a 6 percent cap rate.
“These types of acquisitions are becoming increasingly popular for their relatively high cap rates and because the owner is not responsible for any maintenance,” Berzack noted.