Connors Steak & Seafood
10076 Gulf Center Drive | Fort Myers, FL 33913
Senior Investment Advisor
Senior Investment Advisor
9,040-Square-Foot Restaurant in Prime Location
Connors Steak & Seafood - Corporate Guarantee
7.5 Years Remaining on Fee Simple Ground Lease - No Landlord Responsibilities
Percentage Rent Clause with Upside
Average Sales Growth of 7.98 Percent Y-O-Y Since Opening in 2012
Perfectly Positioned at Entrance to 1,900,000-Square-Foot Gulf Coast Town Center
The Fort Myers-Cape Coral Market is Among the Fastest Growing in the Nation
Marcus & Millichap is pleased to present Connors Steak & Seafood in Fort Myers, Florida. Connorshas seven and one-half years remaining on a corporate guaranteed lease with three five-year option periods. The tenant pays a combination of guaranteed base rent and percentage rent. The current base rent is $308,000 per year with a 10 percent increase in February 2022. Percentage rent is calculated at six percent of net sales over a natural breakpoint of $5,133,333. Based on the actual trailing twelve month sales between August 2018 and July 2019, the percentage rent is equal to $88,016, making the total NOI $396,016. This unique rent structure provides an investor with a stable cash flow stream with future upside due to rapidly and consistently growing sales as well as scheduled base rent increases.
The subject property is an outparcel to the Gulf Coast Town Center-- a 1,900,000-square-foot power center featuring national tenants such as Costco Wholesale, Regal 16 Cinemas, LA Fitness, Bass Pro Shops, JC Penney, Dick’s Sporting Goods, Marshalls, Best Buy, Ron Jon Surf Shop, and many more. Gulf Coast Town Center has been considered the commercial heartbeat of Fort Myers for over a decade, and has massive signage on Interstate 75 that’s impossible to miss. The property is one of many national restaurant chains outside the Town Center, including Panera Bread, Tijuana Flats, Olive Garden, Chili’s, Longhorn Steakhouse, Cheddar’s, Culvers, PDQ, Pollo Tropical and McDonald’s. There are also six hotels within one-eighth mile of the subject property totaling 896 rooms, providing the property with heavy foot traffic.
Gulf Coast Town Center is nestled between Interstate-75, Alico Road and Ben Hill Griffin Parkway, which each receive traffic from 100,500, 23,925, and 32,000 vehicles per day respectively. This property benefits from being positioned along the route to and from Southwest Florida International Airport. The airport handled over 9.4 million passengers in 2018 and is on track to reach ten million this year, making it one of the top 50 United States airports for passenger traffic. The subject property is also located just one and one-half miles from Florida Gulf Coast University which has over 22,000 students enrolled and 5,000 faculty and staff. In addition to Florida Gulf Coast University, there are numerous master planned communities and developments surrounding the subject property. These include Wild Blue, Centerplace, Westbrook, and Esplanade Lake Club totaling over 7,000 homes with over 1,000 homes starting at $1 million. There is a population of 66,806 with an average household income of over $91,000 within a five-mile radius of the subject property, which are ideal trade demographics for Connors Steak & Seafood. Due to the highly favorable trade demographics, the strong year-over-year sales growth, and the property’s positioning at the Gulf Coast Town Center, this restaurant asset is poised for long term success and future appreciation.