Chili's Restaurant NNN Ground
For Sale
Contact for pricing
Pending
1292 E Prosperity Ave, Tulare, CA 93274
Chili's NNN ground lease with 11 years remaining.
Property Size6,102 SF
Days on Market221
Property Features for 1292 E Prosperity Ave
General Information
Standard status
Pending
Size
6,102 SF
Property subtype
Retail
Listing Agency:
Marcus & Millichap - Sacramento
Listed By:
Edward Nelson · License #CA 01452610
(916) 724-1326
Source:
Crexi
Added: Mar 26
Changed: Oct 25
Last Checked: Nov 1 at 3:49AM
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 Marcus & Millichap - Sacramento
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Investment Insights
Based on property information with market context.
This offering presents an opportunity to acquire a Chili’s restaurant operating under a long-term, absolute NNN ground lease. The property is positioned as an outparcel to a Walmart. The lease has approximately 11 years remaining, with four 5-year options. The lease includes fixed rental escalations of 10% every 5 years, with the next increase scheduled for February 2022, followed by an approximate 35% increase in rent at the first option. The property benefits from frontage on East Prosperity Avenue, which experiences approximately 34,550 vehicles per day. It is adjacent to Monte Vista Shopping Center, a 20-acre power center featuring the Galaxy Movie Theater and various national retailers. The location is near Highway 99. Surrounding retailers include Lowe’s, Chase Bank, McDonald’s, Panda Express, Home Depot, CVS, and Starbucks. The property is located in Tulare, CA. The building size is 6,102 square feet. Brinker International, Inc., the parent company of Chili’s, has a Standard & Poor rating of BBB-.
Key Highlights
- Absolute NNN ground lease with approximately 11 years remaining, providing a passive income stream.
- Located as an outparcel to a successful Walmart, benefiting from its customer traffic.
- Fixed rental escalations, including a significant increase at the first option.
Financial Insights
Estimated NOI and Cap Rate
NOI / Yr
$129,744
Cap Rate
5.82%
Suggested Prices Based on Cap Rates
Cap Rate 5%
$2,594,880
$2.6M
Cap Rate 7%
$1,853,486
$1.9M
Cap Rate 9%
$1,441,600
$1.4M
Market Conditions
NOI Build-Up for 6,102 SF
Gross rent
$183.1K $30.00/SF
− Vacancy
−$10.1K −$1.65/SF
EGI
$173.0K $28.35/SF
− OpEx
−$43.2K −$7.09/SF
NOI
$129.7K $21.26/SF
Area
Tulare County, CA
Vacancy
5.50%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap Rate 5%
$2,594,880
Cap Rate 7%
$1,853,486
Cap Rate 9%
$1,441,600
Alternative Uses
Best Use
Specialty Retail
$1.85M
$1.62M – $2.16M
NOI $129,744 @ 7.0% cap · market cap 5.82%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
How Realmo checks its estimates
Property Analytics
Who owns this building?
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
906
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 93274, CA
78,493
Population
24,493
Households
3.2
Avg Household Size
31
Median Age
11%
College-Educated
75%
High-School Grad
219.2 sq mi
ZIP Area
358
Density / Sq Mi
$69,905
Median Household Income
$37,434
Median Earnings
$1,334
Median Rent
$300,900
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in West region
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Chili's NNN ground lease with 11 years remaining.
Where is this conventional restaurant located?
The property is located at 1292 E Prosperity Ave Tulare, CA.
What is the asking price?
The asking price for this property is $2,227,965.
What are key features of this property?
This property features: Absolute NNN ground lease with approximately 11 years remaining, providing a passive income stream.; Located as an outparcel to a successful Walmart, benefiting from its customer traffic.; Fixed rental escalations, including a significant increase at the first option.
