Port Orange KFC Investment
Description
The Port Orange KFC offers an attractive opportunity to acquire a fully occupied retail property with a long-term absolute NNN lease. Located in Port Orange, Florida, the 2,846-square-foot restaurant operates under the well-known KFC brand and generates a current net operating income of $152,953. The property is offered at a 6% cap rate and benefits from a strong corporate-backed lease structure.
The lease began in May 2024 and runs through May 2044, providing a 20-year initial term. With approximately 17.6 years remaining, investors can gain long-term income visibility without the need for immediate lease negotiations.
Long-Term NNN Lease
The Port Orange KFC is leased on an absolute triple-net basis. As a result, the tenant is responsible for the property’s operating expenses, including taxes, insurance, and maintenance.
The lease also includes scheduled rent increases, which help support future income growth. Key lease features include:
- 6% cap rate
- $152,953 current NOI
- 20-year lease term
- Approximately 17.6 years remaining
- 1.5% annual rent increases
- Three five-year renewal options
- 100% occupancy
- Single-tenant structure
- Absolute NNN lease
This structure can appeal to investors seeking predictable cash flow with limited day-to-day property management responsibilities.
Strong KFC Brand and Operator
The property benefits from its association with KFC, one of the most recognized quick-service restaurant brands in the world. In addition, the experienced operator manages a large restaurant portfolio across several major food brands.
The corporate guarantee further strengthens the investment profile. With more than 140 KFC locations under management, the operator brings significant experience to the lease.
Because the restaurant serves an established consumer need, the property also benefits from the defensive characteristics often associated with quick-service restaurants. Customers can access the location for convenient meals, while the established brand helps support ongoing consumer recognition.
High-Traffic Port Orange Location
Location is another major advantage. The property sits along Dunlawton Avenue, one of the important commercial corridors in Port Orange. The surrounding area provides strong visibility and convenient access to major roads, including I-95.
The site also benefits from a busy retail environment. Nearby national and regional businesses help create additional customer activity and cross-shopping opportunities.
The surrounding commercial area includes major brands such as:
- Walmart
- Walgreens
- Starbucks
- Shell
- Other established retail and service businesses
The strong retail mix can help maintain consistent traffic throughout the area. Furthermore, the property’s location within an active commercial corridor supports its long-term appeal to both consumers and investors.
Strong Local Demographics
Port Orange provides a solid demographic base for retail and restaurant operations. More than 60,000 residents live within approximately three miles of the property, while the average household income in the area is around $79,000.
These demographics provide a favorable customer base for an established quick-service restaurant. At the same time, continued commercial activity in the area can support long-term demand.
The combination of population density, household income, traffic exposure, and nearby retail creates a strong setting for the Port Orange KFC.
Investment Highlights
Investors considering this opportunity can benefit from several important characteristics:
- Long-term lease with approximately 17.6 years remaining
- Absolute NNN lease structure
- 6% cap rate
- $152,953 NOI
- Annual 1.5% rent increases
- Three five-year renewal options
- 100% occupancy
- Recognized KFC brand
- Strong corporate guarantee
- High-traffic Port Orange location
- Convenient access to I-95
- Established surrounding retail environment
- Strong local household income and population
- A Stable Retail Investment Opportunity
The Port Orange KFC combines a recognizable national brand, long-term lease term, scheduled rent growth, and a strong retail location. The absolute NNN structure can also reduce the operational responsibilities normally associated with owning a restaurant property.
For investors seeking a single-tenant net lease asset in Florida, the property offers a compelling combination of current income and long-term stability. With strong demographics, established retail activity, and significant remaining lease term, it is positioned as an appealing addition to a commercial real estate portfolio.
Address
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Address Port Orange, FL
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Country United States
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Province/State Florida
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City/Town Port Orange
Overview
- Property ID 16589
- Price $2,550,000.00
- Property Type Retail
- Property status Sale
- Year Built 1987
- Size 2,846 SqFt
- Sub Type QSR/Fast Food, Restaurant
- Buildings 1
- Brand/Tenant KFC
- Cap Rate 6%
- NOI $152,953
- Tenancy Single
- Lease Type Absolute NNN
- Occupancy 100%
- Investment Type Net Lease
- Rent Bumps Yes
- Lease Commencement 05/16/2024
- Price per SqFt $896
- Lease Expiration 05/15/2044
- Lease Term 20
- Remaining Term 17.6
- Lease Options 3 x 5 Year Options
