CAP Rate: 6.25%
Net Operating Income: $71,200
The subject offering is a KFC restaurant in Hutchinson, Kansas. The property is subject to a 10 year NNN lease. The tenant has four 5 year options to renew and 1% annual increases in rent. The lease calls for zero landlord obligations. The lease is being backed by a 9 unit operator. The property is slated for an exterior remodel at the end of 2017/early 2018. The asset is surrounded by major national retailers including Dillons Supermarket, O’Reilly Auto Parts, and Family Dollar.
Hutchinson is the largest city and county seat in Reno County, Kansas, and located on the Arkansas River. It has been home to salt mines since 1887, thus its nickname of “Salt City”, but locals call it “Hutch”. As of the 2010 census, the city population was 42,080.
Each year, Hutchinson hosts the Kansas State Fair, and National Junior College Athletic Association (NJCAA) Basketball Tournament. It is the home of the Kansas Cosmosphere and Space Center aerospace museum and Strataca (formerly known as Kansas Underground Salt Museum).