http://www.phila.govThe 1031 Doctor has not done deals in Pennsylvania but does recommend this rare historic bank building conversion to a corporate Burger King. This is an “urban” location and being directly across from a high school and subway station are a homerun for any fast-food chain and it’s a low-risk investment that should be looked at more like buying a saving bond with land ownership at the end of the lengthy lease. I would take a closer look at the lease regarding roof maintenance but otherwise this deal is as solid as it gets. There will be zero chance of future redevelopment on this property due to the nature of the historic registry, but the curb appeal of this old bank building has intrinsic value that should continue to increase in the future due to its rarity.
Burger King is the second largest fast-food chain in the world and has a tremendous world-wide growth plan and excellent management. I personally prefer burger king over the largest fast-food company in the world Mc Donalds. Finding good Burger Kings in good locations isn’t hard because of the amazing real estate department they have, the problems is finding one that is for sale at a reasonable price. This deal for sale in South Philly is being offered at a 5% cap with normal 10% rent bumps during option periods. I would only consider these deals for exchange money and would not invest fresh capital into these deals based on the limited upside in rental income and downside of future revenue due to inflation issues eating up the value of the rents. I would grade this deal as A- only because there is no land development potential in the future due to the historic nature of the property and the lower income demographics and potential crime issues of the surrounding area. 1031 Doctor helps high-income professionals-such as doctors, lawyers, and business owners- navigate and analyze NNN investments during a 1031 exchange. On this channel, I break down real deals across the country, including gas stations, fast-food properties, and single-tenant net-leased investments. learn how an industry veteran picks out the red flags and finds the hidden opportunities where most people miss the clues. Subscribe for daily insights, deal breakdowns, and real-world strategies. https://www.bk.com https://www.septa.org
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