719 Richmond Ave Ottumwa, IA 52501-4155

Property Details for 719 Richmond Ave

Year built

1982

Lot size

0.34 lot acres

Property size

2,383 SF

Property type

Drive through restaurants

APN

7416930026000

APU

7416930026000

Description

This exceptional investment opportunity presents a fee-simple interest in a thriving Scooter's Coffee location in Ottumwa, Iowa. The 2,383 square foot building, constructed in 1982 and situated on a 0.34-acre corner lot at 719 Richmond Ave (52501), benefits from high visibility and significant traffic flow due to its proximity to major roadways like US 34. The property is part of a vibrant commercial area, surrounded by nationally recognized brands including McDonald's, Walmart, and others, ensuring consistent customer traffic. The absolute NNN lease, with a franchisee tenant, provides a passive income stream with minimal landlord responsibilities. The current lease, commencing March 22, 2023, and expiring March 31, 2038, offers a remaining term of 13.4 years, with four, five-year renewal options, each including a 2% annual rent increase. The current annual net operating income (NOI) is $68,666, representing a 6.24% cap rate on the $1,100,000 asking price ($461.60/sq ft). This investment offers a strong return, long-term stability, and minimal management burden, making it an attractive opportunity for discerning investors. The tenant, a multi-unit franchisee, demonstrates a commitment to the brand and the location, further enhancing the investment's security. The property's location and the strength of the Scooter's Coffee brand contribute to its high potential for continued success and appreciation.