What is the prevailing selling cap rate for a seasoned NNN Taco Bell in Colorado

Starting 5th yr of a 20 yr NNN lease, experienced operator w/6 Taco Bells; annual 2.5% vs CPI rent escallator. built 2003. Good sales growth. Free standing. AAA location
In Selling Property - Asked by Tony S. - Nov 12, 2008
Report Abuse
Answer this Question

Answer(s)

James B.
Corporate Investor
Orlando, FL

My guess 8.75%

Nov 13, 2008
Report Abuse
Todd C.
Broker/Agent
Houston, TX

More like 7.5% - 7.75%. Call me to discuss.

Nov 13, 2008
Report Abuse
Dan H.
Corporate Investor
Powell, OH

I would say 8% would be a good asking price point with a 8.25% cap rate being fair market value. Since your rent escalations are tied to the CPI there may be a little more value there as inflation is going through the roof over the 5 to 10 years.

Nov 14, 2008
Report Abuse
Glen W.
Lender/Mortgage Broker
Atlanta, GA

If I were buying this property, I would use an 8 or 9%. Cap rates are rising in the denver metro area.

Nov 18, 2008
Report Abuse
Chris S.
Broker/Agent
Coeur D'alene, ID

What's the competition like? I've seen the top locations in California go as low as 4%, but I've seen the less desirable, older product go as high as 9%. I would consider a more detailed analysis to calculate your IRR. Much more accurate measure of investment return.
chris.schreiber@century21.com

Jan 16, 2009
Report Abuse
Chris S.
Broker/Agent
Coeur D'alene, ID

Agreed ... 8-9% whereas a year or two ago 6-7%. Market is changing and not for the better.

Aug 3, 2009
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question