Listed by Marcus & Millichap - Baton Rouge
$923,077
Pizza Hut
Details
APN 641100
Property Type Retail
Sub Type Commercial
Square Footage 2,310
Net Rentable (SqFt) 2,310
Cap Rate 6.50%
NOI $60,000
Occupancy 100%
Tenancy Single
Brand/Tenant Pizza Hut
Lease Type NNN
Lease Term 10
Lease Options Two (2) x 5 Years
Year Built 1990
Year Renovated 2013
Acreage 1.000
Investment Type Sale/Leaseback
Tenant Credit Franchisee
Ownership Fee Simple
Retail | 6.50% CAP | 2,310 SqFt
Marketing description
Marcus & Millichap is pleased to present the exclusive listing for a Pizza Hut located at 1001 Highway 1 South in Donaldsonville, Louisiana. This offering represents a compelling opportunity to acquire a stabilized, single-tenant absolute net-leased asset occupied by a recognized national quick-service restaurant brand. The property features a 2,310-square-foot building situated on a 1.00-acre parcel, originally constructed in 1990 and renovated in 2013. Ownership is in the process of completing capital improvements, including parking lot renovations, with expected completion this quarter.
The investment is structured as a passive sale-leaseback transaction, with a new 10-year Absolute Triple Net (NNN) lease to commence at closing. The lease provides for tenant responsibility over taxes, insurance, maintenance, and operating expenses, with landlord obligations limited to roof and structure. This creates a low-management investment profile well suited for both local and out-of-state investors. Credit strength is further supported by the tenant's established operating history at this location of more than nine years, along with ownership and operation of 15 additional locations. Tenant bio available upon request.
Strategically positioned along Highway 1, a primary arterial corridor, the property benefits from excellent visibility and connectivity within the Baton Rouge Metropolitan Statistical Area (MSA). Donaldsonville serves as a key commercial hub for Ascension Parish, supported by a dense industrial and employment base along the Mississippi River corridor. This location offers investors a secure income stream backed by a franchisee guarantee, with two five-year renewal options and 2% annual increases, ensuring long-term tenancy and cash flow stability.
Investment highlights
- New 10-year lease: sale-leaseback transaction commencing at closing, providing investors with long-term income stability and predictable cash flow for the next decade. 2% annual rent increases.
- Absolute NNN: tenant is responsible for all property taxes, insurance, and maintenance, limiting landlord obligations to roof and structural components only.
- National brand: pizza hut is one of the most recognized quick-service restaurant brands globally, offering established consumer loyalty and proven operational systems.
- Passive income: ideal for 1031 exchange buyers and net lease investors seeking stable, hands-off income with minimal ongoing management responsibilities.
- Highway frontage: strategically situated along highway 1, a primary arterial corridor providing high visibility and accessibility within ascension parish and the baton rouge metro.
- Compelling basis: attractive entry price point of $923,077 (~$399/sf) offers a low barrier to entry for a stabilized, absolute net-leased asset in a growing market.
- Franchisee guarantee: lease is backed by a franchisee guarantee, aligning operator incentives with property performance and ensuring commitment to the location. The current owner will remain in place as tenant and has successfully operated at this location for more than nine years, while also operating multiple additional locations.
- Dense employment: supported by a robust industrial base along the Mississippi river corridor, providing a steady stream of blue-collar employment and customer traffic.
- Efficient design: the 2,310 sf building on a 1.00-acre lot offers a functional, standardized restaurant layout that supports efficient operations and future adaptability.
- Strong drivers: surrounded by residential neighborhoods and commercial developments, driving consistent daily traffic counts past the site.
Listing Contacts
Listed by Marcus & Millichap - Baton Rouge
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$60,000.00
$5,000.00/mo
Valuation Metrics
0
DSCR
6.5%
Cap Rate
6.5%
ROI
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