115 Ludlow St
Warren, PA 16365
Perkins – 20 Yr. Abs NNN – Major Store Reno. · Retail Property For Sale

Marcus & Millichap, on behalf of ownership as its exclusive advisor, is pleased to bring to market Perkins Restaurant & Bakery in Warren, Pennsylvania. The subject property is a 5,684-square-foot freestanding restaurant situated on 1.58 acres. Perkins is bound by a new 20-year, absolute net lease that extends through February 2038. As an absolute net lease, there are zero landlord responsibilities for maintenance, repairs, or replacement. The lease features annual rent increases, amounting to the lesser of two percent or 1.25 times the annual change in the consumer price index. Additionally, there are four, five-year option periods featuring the same annual rent increase structure. The long-term lease and significant rent growth over the hold period allow the prospective purchaser to recoup the entire purchase price within the 14th year of the lease. The lease is backed by the larger operating entity which is comprised of 28 Perkins locations, and carries a personal guaranty from the three operating partners, who have significant experience in the restaurant industry, hospitality, and finance. The operator has planned $12 million in renovations across their 28 restaurants in the next two to four years. The subject property has a renovation budget of $412,500 which includes new HVAC, and major updates to the bakery, dining room, and exterior. Perkins Restaurant & Bakery is located along Ludlow Street, just off the exit ramps for Pennsylvania State Highway 62. Demographics in the surrounding area are stable and mature, with 17,507 residents within five miles and 26,562 residents within ten miles. Other national retailers and restaurants established in Warren include Walmart, Lowe’s, Burger Kind, AutoZone, CVS, Wendy’s, Dollar General, McDonald’s, Sheetz, PNC Bank, and Taco Bell to name a few. Warren is located in Western Pennsylvania, just south of the New York border, and is home to the headquarters for the Allegheny National Forest, who manages the neighboring 517,000-acre protected wilderness. Major employers in the city include the United Refining Company, Allegheny National Forest, Northwest Savings Bank, Superior Tire & Rubber Corporation, Pennsylvania General Energy, and Blair Corporation to name a few.