Applebee's Sandusky
5503 Milan Road, Sandusky, Ohio 44870
OFFERING PRICE: $4,159,583
CAP Rate: 6.00%*
- Initial Distribution Rate:5.75%*
- Annual Rent: $249,755*
- Gross Leasable Area: 4,994 sq. ft.
- Lot Size:57,164 sq. ft. (1.31 Acres)
Applebee’s is the largest casual dining concept in the world. Each location is designed as an attractive, friendly, neighborhood establishment featuring moderately priced, high-quality food and beverage items, table service and a comfortable atmosphere designed to appeal to all ages.
5503 Milan Road, Sandusky, Ohio 44870
This Applebee’s restaurant is located along the largest commercial retail and dining corridor in Sandusky, Ohio. The property is on the west side of US Route 250 (Milan Road) and just north of OH Route 2 where an estimated 16,000 vehicles pass by daily.
Property Highlights
Guarantor:
- Apple American Group, LLC – One of the largest franchisees in the Applebee’s system
- Applebee’s is the largest casual dining concept in the U.S.
- Apple American Group, LLC operates 273 Applebee’s restaurants in 9 states
Location:
- Located along major retail and restaurant corridor
- Directly to the east of US Route 250 – a major travel corridor for 3.5 million annual visitors
- Consistently among the top performing Applebee’s in the region
- 32.3% of all the residents in a one-mile radius visited an Applebee’s in the last 6 months
Lease Terms:
- Absolute NNN lease – tenant is responsible for all taxes, insurance, and maintenance
- Over 10 years remaining on primary lease term
- 7.5% rent increase every 5 years (next increase 11/1/2013)
- 6.22% average cap rate over remaining lease term*
INVESTMENT OVERVIEW
- Tenant: Apple Ohio, LLC
- Guarantor: Apple American Group, LLC
- Price:Â $4,159,583
- Cap Rate:Â 6.00%*
- Initial Distribution Rate:5.75%*
- Annual Rent:Â $249,755*
- Gross Leasable Area: 4,994 sq. ft.
- Lease Type: Absolute NNN
Site OVERVIEW
This Applebee’s restaurant is located along the largest commercial retail and dining corridor in Sandusky, Ohio. The property is on the west side of US Route 250 (Milan Road) and just north of OH Route 2 where an estimated 16,000 vehicles pass by daily. US Route 250 is a major travel corridor to the area’s tourist attractions and lodging destinations. Direct access to the property is available from a signalized intersection in front of the property.
This area is a retail and dining destination for the local residents as well as the estimated 3.5 million tourists who visit annually. There are five amusement parks within a seven-mile radius including Cedar Point, Maui Sands, Great Wolf Lodge, The Kalahari, and Castaway Bay. Surrounding businesses include Walmart, Sam’s Club, Home Depot, Lowe’s, Staples, Kohl’s, Harley Davidson, and Buffalo Wild Wings. The north end of the corridor is anchored by the Sandusky Shopping Complex; a shopping destination consisting of over 80 retailers including Macy’s, Sears, Target, Dick’s Sporting Goods, and Cinemark Theatres.
president’s message
For real estate owners seeking high-quality replacement properties to complete their 1031 exchanges, net leased retail properties are one of the most sought-after assets. AEI has been specializing in commercial net lease property investments since 1974. In partnership with major american corporations, we’ve developed, owned, and managed more than 300 net lease properties in 36 states, representing the financial interests of more than 18,000 investors nationwide. For TIC investors seeking direct asset ownership, a commercial, income property under long-term net lease to a name-brand corporate tenant is a very attractive choice. AEI is a leader in the TIC industry. We were the first company in America to offer securitized TIC investments in 1992. We were the first company to apply for, and receive, a favorable Private Letter Ruling from the IRS with respect to the qualification of our 1031-TIC offerings as “like-kind” exchanges. Property owners from across the country look to AEI for their 1031 replacement properties and TIC purchases. Since 1992, we’ve completed more than 700 successful 1031-TIC exchanges. AEI is one of the most experienced sources of net lease property TIC offerings in the country.
Whether you choose to acquire part of a property – or all of it – for your 1031 exchange or TIC purchase, I believe that you will find no better source than AEI to meet all of your exchange and investment needs. Experienced, professional, and dependable are terms that apply to the expertise we provide to thousands of commercial property investors and owners across the country. I invite you to contact one of our in-house specialists to see just how efficient and rewarding it is to work with AEI. If you call our toll-free 800 number, and ask for the 1031- TIC department, our receptionist will connect you to an experienced professional who can answer all of your exchange or investment questions and discuss the quality property described in this brochure.
Robert Johnson,Â
President
ABOUT AEI
Founded in 1970, AEI is one of America’s oldest sponsors of net lease real estate investment programs and a leader in the TIC- 1031 exchange industry. AEI is a national source of high quality, commercial real estate for property owners engaged in 1031 tax-deferred property exchanges. AEI has specialized in developing, evaluating and purchasing these types of properties for more than 35 years and offers a portfolio of name-brand, net leased commercial retail properties.
Why come to AEI for your TIC or 1031 properties?
Exceptional service. If this is your first 1031 property exchange or TIC purchase, we make every effort to ensure that you fully understand the transaction. Our experienced professionals are available to assist you at each step.
Stability and quality. AEI offers quality, single tenant properties – freestanding real estate occupied by creditworthy corporate tenants under long-term net leases.
Acquisition expertise. AEI has performed institutional-grade due diligence on every property we own. Acquiring property from AEI can reduce this time-consuming, labor-intensive aspect of your property selection process and provide a higher level of expertise than you may be able to provide yourself.
Post-purchase services. After your property purchase is complete, AEI can provide the following services:
- Accounting and distribution of rental income
- Year-end 1099 forms for tax reporting
- Assisting with any management concerns you may have about your property
- Monitoring lease compliance, tax and insurance payments, and property maintenance by the tenant