The asset was the last property held in a charitable remainder trust which the estate ordered Bank of America (trustee) to liquidate. The lease with a Burger King (BK) franchisee had less than 5 years remaining on the primary term at time of purchase. The purchase price was $425,000. This fast-food site is the only drive-thru in central Palm Springs and is situated on a Bureau of Indian Affairs ground lease that expires in 2041. The BK franchisee filed for bankruptcy and Bedrock recaptured the property.
The site was remodeled and leased to Castaneda’s Mexican food under the terms of a 25-year lease. The return to our investors is now over 9.0% with annual increases for the next 24-years. The investment strategy is to hold as a self-liquidating annuity. Castaneda’s Mexican food is a 27-unit family owned business that operates in San Diego, Riverside, San Bernardino, and Imperial counties in Southern California.
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