‘It Cash Flows.’ KFC Property Sells for $1.5 Million
BOARDMAN, Ohio — Who knew that a building on South Avenue that houses a Kentucky Fried Chicken store was worth nearly $1.5 million?
Bill Kutlick knew and that’s why he made sure real estate investment groups in California knew as well.
This week Kutlick, a commercial real estate agent with the Platz Group, closed a deal with Equitas Properties LLC, based in Hermosa, Calif.
Equitas buys single-tenant retail properties across the United States – about 40 properties per year, according to its website, mostly buildings occupied by retail chains and freestanding quick-service restaurants.
The sale of the Kentucky Fried Chicken property at 6636 South Ave. included a triple net lease, which means the tenant pays all real estate taxes, building insurance and maintenance costs.
“People in California like these types of transactions. It cash flows,” Kutlick says.
“In these types of leases, the tenant is responsible for everything and people in California [who invest in such properties], all they do is go to the mailbox and get their rent check.”
The restaurant was built in 1998 by Morgans Restaurants of Ohio Inc. At the time, it was valued at $300,000, according to public records.
The real estate sold in 2011 for $1.01 million to DBMFI LLC; in 2012 for $1.3 million to Roland Zahrenback; and was transferred in February to Guler Serkan Trustee.
The sale to Equitas Properties, for $1,456,000, closed June 16. The property was listed for sale at $1.5 million.
Kutlick says he pitched the property out to other investment groups in California, as he typically does with commercial listings that include net leases.
“This morning I already sent out at least six emails to investment groups about other properties,” he said June 17.
“We have Lear Seating, across from where GM is building the battery plant,” he continues. “It’s a first-class warehouse and I’m sending that out.”
That property, 1789 Ellsworth Bailey Road in Lordstown, was built in 1994 and has 101,000 square feet of space for lease.
As for the Kentucky Fried Chicken property in Boardman, a Google search turns up a new sale listing posted June 11, this time with a list price of $1,836,067.
The LoopNet listing was posted by the Rosemont, Ill., office of Colliers International. Net operating income in the first year of the lease is $105,574, the listing states. Annual income increases in January 2022, when a “rent bump correlates to a 6.33% cap rate.”
Pictured at top: The Kentucky Fried Chicken store at 6636 South Ave. in Boardman.
Copyright 2020 The Business Journal, Youngstown, Ohio.