Pizza Hut
Closed225 E. Jim Sharp Blvd, Kermit, TX 79745
Property type
Retail
Price
$2,021,930
Building size
2,532 sf
Rentable area
2,532 SF
Year built
1966
Year renovated
Occupancy
Zoning code
Lot size
0.84 Acres
Sold/status
Sold · Date unknown
Sale price
$2021930
CAP
5.75%
Net Operating Income
$116,261
Property description
Franklin Street is pleased to present this Pizza Hut location in Kermit, Texas. Kermit is located in the oil-rich West Texas, 45 miles west of Odessa, Texas. Pizza Hut recently executed a new 15-year lease at this location showing their strong tenant commitment to this site. The property is located at the center of the town and pulls from a large trade area. This location is an extremely high performer at a low rent to sales ratio. ADT Pizza, the franchisee, was formed in 2018 with the acquisition of 125 Pizza Hut locations across the East Coast. The previous franchisee had operated the locations for 20+ years. ADT Pizza currently has 174+ locations and is looking to continue their store growth through acquisitions and new store development. The CEO, who has an MBA from Harvard, spent many years in the hospitality industry as an executive with Starwood Hotels. On October 29, Pizza Hut's parent company Yum! Brands (YUM) reported the chain's offsite sales had surged 17%-21% during the third quarter of 2020.
Property highlights
- 15-Year leased Pizza Hut in West Texas
- Extremely strong tenant sales - 2.5x national average for Pizza Hut
- ADT Pizza is one of the largest franchisees in the Pizza Hut system - 174+ units with planned development and acquisition growth
- This location is #2 in sales out of 174+ units for franchisee
- Texas has no state income tax
- 1.25% annual rental bumps throughout lease term
- Planned $175K remodel at tenant's expense - strong commitment to site
- Pizza Hut plans to modernize and focus on carry-out and delivery business
- Tenant reports having 20% uptick in company sales since COVID-19 crisis began
- Low rent to sales ratio 5.9%: very profitable location
- Company and Unit level financials available upon CA