Chili's Restaurant NNN Ground
1292 East Prosperity Ave Tulare, CA 93274
1292 East Prosperity Ave, Tulare, CA, 93274
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For Sale
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Chili's NNN ground lease with 11 years remaining.
Property Size6,102 SF
Price / SF$405.60
Days on Market3723
Property Features for 1292 East Prosperity Ave
General Information
- Standard status
- Active
- Size
- 6,102 SF
- Property subtype
- Retail
Building Details
- Year Built
- 2006
Listing agency
Colliers - Los Angeles - Orange County, California
(949) 724-5561
Listed by
Eric Carlton · License #CA 01809955
Source
Crexi
Added: May 12, 2016 Updated: Jul 6 at 8:00AM Checked: Jul 21 at 12:53PM
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 Colliers - Los Angeles - Orange County, California
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.
Local Financial Insights For Specialty Retail
Simulate Cap Rate and NOI
NOI Build-Up
- 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.
| Component | $ | $/SF |
|---|---|---|
| Gross rent | $183.1k | $30.00 |
| − Vacancy | −$10.1k | −$1.65 |
| EGI | $173.0k | $28.35 |
| − OpEx | −$43.2k | −$7.09 |
| NOI | $129.7k | $21.26 |
6,102 SF · lease $30.00/SF/yr · vacancy 5.50% · expense 25.00%
Alternative Uses
Best Use
Specialty Retail
$1.85M
$1.62M – $2.16M
NOI $129,744 @ 7.0% cap · market cap 5.24%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with local authorities.
Property Analytics
Property Profile
Location Intelligence
Current Use by Public Records
It's Just Wings
Restaurant
Chili's Grill & Bar
Restaurant
Similar For Sale Nearby
FAQs
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 East Prosperity Ave Tulare, CA.
What is the asking price?
The asking price for this property is $2,475,000.
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.
