878 Munson Ave, Traverse City, MI 49686-3602

This exceptional investment opportunity presents a fee-simple, absolute NNN leased Denny's restaurant in Traverse City, Michigan. The property boasts 6,190 square feet on a 1.26-acre lot, built in 1987 and renovated in 2016. Currently operating at 100% occupancy, the property offers a strong net operating income (NOI) of $102,060, translating to a 6.30% cap rate. The lease features a significant remaining term of 11.9 years, with two 5-year renewal options, each including an 8% rent increase. This provides a built-in hedge against inflation. The asking price is $1,620,000, representing a price per square foot of $261.71. The property benefits from its prime location in a high-tourism destination, leveraging the area's significant summer vacation traffic and proximity to numerous hotels and beaches. This Denny's location is strategically positioned to capitalize on the substantial annual visitation to nearby Traverse City State Park Beach. The below-market rent for casual dining in this area presents a compelling investment opportunity with significant long-term growth potential. The property's strong tenant, established brand recognition, and favorable lease terms make this an attractive addition to any portfolio.