2945 E State St
Hermitage, PA 16148
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 Hermitage, Pennsylvania. The subject property is a 4,830-square-foot freestanding restaurant situated on 1.72 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 $363,800 which includes new HVAC, and major updates to the bakery, dining room, and exterior. Perkins Restaurant & Bakery is located along East State Street, Hermitage’s primary commercial corridor that sees over 15,842 cars per day, and 34,210 cars per day at the nearby intersection of North Hermitage Road. Demographics in the surrounding area are stable and mature, with 35,788 residents within three miles and 50,594 residents within five miles. Prominent national retailers and restaurants within immediate proximity include Lowe’s, Home Depot, Giant Eagle, T.J. Maxx, Planet Fitness, Tractor Supply Co., Kohl’s, Pat Catan’s, Cinemark, Big Lots, Jo-Ann Fabrics, AutoZone, O’Reilly Auto Parts, Walgreens, Chipotle, McDonald’s, Mattress Firm, and Five Guys to name a few. Hermitage is part of the Youngstown-Warren-Boardman metropolitan area which spans parts of Ohio and Pennsylvania, and has a population of over 600,000.