Highlights

• 12% initial cap pure NNN with no landlord expenses
• 50 year old established business 2008 best year in history
• 5% rent increases every 5 years

• Initial term length of lease 15-20 years negotiable at start
• One of the most famous restaurants in Los Angeles
• Additional options after initial lease term

Description

PRICE LOWERED, RENT INCREASED, CAP 12%. One of the most iconic and famous restaruants in Los Angeles with continous operation since 1957. It is still family owned and operated. El Tepeyac has been featured on TV on Huel Houser's California Gold, mentioned in books & magazines on multiple occasions. A segment of Man vs. Food was taped and aired on Feb. 17. El Tepeyac starts their daily food preparation at 3 AM & operates most days till 9:45 PM. Manny, at 75, is still there on a daily basis. The daily operation has been handed off to the next generation. Implementation of new procedures has drastically increased the bottom line along with increased sales. The sale lease back is a pure NNN with tenant paying all taxes, maint. & insurance. The initial lease term of 15 years will have 5% rent increases every 5 yrs. & will commence at COE. This is an opportunity for an investor to purchase a property with a 50 year proven track record, at the same location, at an attractive initial cap rate. A new loan with 35% down amort 30 years @7% produces a $91,944 NET income which increases to $108,549 net by year 11 approx $509K down, yielding a 22.1% IRR, DCR 2.312. Lease will contain options

Located in the Boyle Heights area of East LA between the 10, 60, 710 and 5 freeways. El Tepeyac is known throughout the LA basin as the place to get great Mexican food. Slow economic times have not affected sales and sales have actually increased to a level that is well above most national franchise levels.