Single-Tenant Restaurant NNN Ground
For Sale
$1,475,000
632 Park Avenue, Worcester, MA 01603
Applebee’s is leased on an absolute NNN ground lease with tenant responsibility for taxes, insurance, maintenance, and repairs.
Property Size5,479 SF
Lot Size1.03 Acres
Days on Market41
Property Features for 632 Park Avenue
General Information
Standard status
Active
Size
5,479 SF
Lot size
1.03 Acres
Property subtype
Retail - Street Retail
Occupancy
100%
Site & Location
Traffic Count
19,561 vehicles/day
Highway Access
Yes
Road Access
Yes
Additional Details
Cap Rate
6.5%
Building Details
Building Size
5,479 SF
Year Built
1999
Year Renovated
2003
Tenancy
Single
Listing Agency:
NAI Glickman Kovago & Jacobs
(508) 769-5007
Listed By:
James Glickman · License ##9001209
Source:
Commercialcafe
Added: Jul 13
Changed: Aug 19
Last Checked: Aug 18 at 8:50AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of NAI Glickman Kovago & Jacobs
Investment Insights
Based on property information with market context.
632 Park Avenue is a passive, single-tenant restaurant property leased to Applebee’s on an absolute NNN ground lease. The tenant assumes all obligations, including taxes, insurance, maintenance, repairs, and replacements, leaving the landlord with zero management responsibility and zero capital expenditure exposure. The lease is guaranteed by Apple New England LLC/The Flynn Group, with the current term running through January 2030 and followed by four 5-year renewal options that extend potential occupancy to 2045.
The property is located in the Webster Square area of southwest Worcester at the intersection of Park Avenue and Main Street, with Park Avenue designated as Route 9. The corridor supports established retail activity, and the intersection location provides strong frontage and signage visibility.
The building was renovated in 2023 and sits on a 1.03-acre parcel within the dense Webster Square retail corridor, where single-tenant restaurant pads are tightly held.
The property is located in the Webster Square area of southwest Worcester at the intersection of Park Avenue and Main Street, with Park Avenue designated as Route 9. The corridor supports established retail activity, and the intersection location provides strong frontage and signage visibility.
The building was renovated in 2023 and sits on a 1.03-acre parcel within the dense Webster Square retail corridor, where single-tenant restaurant pads are tightly held.
Key Highlights
- Absolute NNN ground lease to Applebee’s; tenant responsible for taxes, insurance, maintenance, repairs, and replacements.
- Lease term runs through January 2030 with four 5‑year renewal options extending potential occupancy to 2045.
- Rent escalates 5% every five years, increasing from $95,721 today to $116,349 at full term.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$88,538
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.00%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,770,760
$1.8M
Cap Rate 7%
$1,264,829
$1.3M
Cap Rate 9%
$983,756
$983.8K
Market Conditions
NOI Build-Up for 5,479 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$124.9K $22.80/SF
− Vacancy
−$6.9K −$1.25/SF
EGI
$118.1K $21.55/SF
− OpEx
−$29.5K −$5.39/SF
NOI
$88.5K $16.16/SF
Area
Worcester, MA
Vacancy
5.50%
Lease Rate
$22.80 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,770,760
Cap Rate 7%
$1,264,829
Cap Rate 9%
$983,756
Alternative Uses
Best Use
Specialty Retail
$1.26M
$1.11M – $1.48M
NOI $88,538 @ 7.0% cap · market cap 6.00%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.83M
$1.60M – $2.13M
NOI $128,014 @ 7.0% cap · market cap 8.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
19,561 VPD
Traffic count
100%
Occupancy
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,128
Businesses Nearby
210k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 47%
Shops & Services 37%
Groceries 9%
Home Improvements & Furnishings 6%
McDonald's
Dining
33,435 visits/mo
0.3 miles
Price Chopper Supermarkets
Groceries
18,977 visits/mo
0.3 miles
Wendy's
Dining
16,455 visits/mo
0.5 miles
Burger King
Dining
15,444 visits/mo
0.3 miles
Dollar Tree
Shops & Services
13,487 visits/mo
0.1 miles
Demographics for 01603, MA
22,417
Population
8,504
Households
2.6
Avg Household Size
36
Median Age
24%
College-Educated
83%
High-School Grad
4.5 sq mi
ZIP Area
4,982
Density / Sq Mi
$63,646
Median Household Income
$40,403
Median Earnings
$1,339
Median Rent
$287,800
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Applebee’s is leased on an absolute NNN ground lease with tenant responsibility for taxes, insurance, maintenance, and repairs.
Where is this conventional restaurant located?
The property is located at 632 Park Avenue Worcester, MA.
What is the asking price?
The asking price for this property is $1,475,000.
What are key features of this property?
This property features: Absolute NNN ground lease to Applebee’s; tenant responsible for taxes, insurance, maintenance, repairs, and replacements.; Lease term runs through January 2030 with four 5‑year renewal options extending potential occupancy to 2045.; Rent escalates 5% every five years, increasing from $95,721 today to $116,349 at full term.
