Case Study
John Galardi opened his first hot dog stand, called Wienerschnitzel, in 1961. Galardi Group operates and franchises approximately 350 Wienerschnitzel retail locations, most co-branded with Tasty Freeze. The property was held in a partnership where one party passed and both estates chose to liquidate their holdings. The lease with the base rent at $36,000 per annum had expired prior to acquisition. BR Long Beach LLC negotiated a sales price based on the new annual net operating income (NOI). During the due diligence period, BR Long Beach LLC structured a 10-year renewal at $48,000 per annum plus annual increases based on an analysis of the gross the sales revenue over the past 5-years. The LLC acquired the site for cash within 45 days from the purchase contract execution. East Artesia Boulevard is a main thoroughfare and the 91 freeway exit is less than ΒΌ mile from the site. The tenant continued to pay percentage rent over most of the original lease term and recently extended their lease.
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