5236 Providence Rd Virginia Beach, VA 23464

Property Details for 5236 Providence Rd

Year built

2001

Lot size

0.57 lot acres

Property size

3,397 SF

Property type

Retail properties

Property subtype

Restaurants

Description

This exceptional investment opportunity presents a freestanding McDonald's restaurant located at 5236 Providence Rd, Virginia Beach, VA 23464. The property boasts a recently renovated 3,397 square foot building on a 0.57-acre lot, constructed in 2001. This single-tenant, absolute NNN ground lease offers a strong corporate guarantee from McDonald's, a globally recognized brand with an S&P credit rating of BBB+. The lease commenced December 2nd, 2023, and has a remaining term of four years, with four five-year renewal options, each including a 10% rent increase. The current asking price is $2,067,000, representing a 4.25% cap rate and a price per square foot of $608.48. The property generates a net operating income (NOI) of $87,840 annually. This location benefits from high visibility in a major retail hub, situated at the intersection of Kempsville Rd (32K VPD) and Providence Rd (24K VPD), with over 800,000 square feet of retail within a one-mile radius, including nearby national tenants such as TJ Maxx, Kroger, Starbucks, Verizon, and Chase. The surrounding demographics are equally compelling, with over 322,000 people residing within a five-mile radius and an average household income nearing $100,000. The Fairfield Shopping Center, where this McDonald's is located, has recently undergone $1.5 million in capital improvements. This McDonald's has operated at this location for over 20 years and is currently ranked in the top 60th percentile nationally. This is a rare opportunity to acquire a high-performing, low-maintenance investment with a blue-chip tenant and significant upside potential.

Location Insight

City

Virginia Beach

County

Virginia Beach City

State

Virginia

Longitude

-76.1682

Latitude

36.8139