Listed by SURMOUNT
$2,312,676
IHOP and Teriyaki Madness
Details
Property Type Retail
Sub Type Restaurant
Square Footage 4,336
Cap Rate 6.5%
NOI $150,324
Occupancy 100%
Tenancy Multi
Brand/Tenant IHOP and Teriyaki Madness
Lease Type NNN
Lease Term 19
Lease Expiration 03/31/2045
Remaining Term 18.7
Price per SqFt $533
Year Built 2021
Acreage 0.510
Tenant Credit Corporate Guarantee
Lease Commencement 03/27/2026
Ownership Fee Simple
Retail | 6.50% CAP | 4,336 SqFt
Marketing description
Surmount is pleased to present the exclusive listing for an IHOP and Teriyaki Madness located at 948 Dundee Road, Palatine, IL 60074. The property consists of approximately 4,336 rentable square feet situated on an estimated 0.51-acre parcel and is leased to two nationally recognized quick-service concepts, IHOP and Teriyaki Madness. The current annual rent is $150,324 and IHOP is secured by a 20-year Triple Net (NNN) lease with 10% rental increases every five years while Teriyaki Madness operates under a 10-year NNN lease featuring annual 3% rent escalations.
Investment highlights
- Attractive 3% Annual Rent Increases | Both tenants feature rent escalations embedded within their 20- and 10-year lease terms, providing a clear path for predictable income growth over the hold period. This structured increase in rental income enhances cash flow durability while serving as an effective hedge against inflation.
- High-Visibility Retail Corridor | Strong Traffic Counts | Positioned along Dundee Road (IL-68), the property benefits from ~30,000+ vehicles per day, providing exceptional visibility and consistent consumer exposure. The site features strong frontage, clear sightlines, and convenient ingress/egress, making it ideal for daily-needs retail and service-oriented tenants.
- Global Tenant Founded in 1958 | IHOP has over 1,790 locations around the world and features restaurants in all 50 states. The operator of this IHOP location has 8 other locations in the area with an extensive history in the IHOP system. This multi-unit operator is personally guaranteeing the lease as well.
- Complementary Daypart Synergy | IHOP & Teriyaki Madness | The co-tenancy of IHOP and Teriyaki Madness creates a highly complementary operating dynamic, with IHOP driving consistent morning and breakfast traffic while Teriyaki Madness captures peak lunch and dinner demand. This natural daypart diversification enhances overall site utilization throughout the day, increases cross-traffic, and supports stable, recurring revenue streams.
Listing Contacts
Listed by SURMOUNT
Valuation Calculator
Login or Sign up to see Valuation Metrics
Sign up for Crexi to see valuation metrics for this property
Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$150,324.00
$12,527.00/mo
Valuation Metrics
0
DSCR
6.5%
Cap Rate
6.5%
ROI
Broker Selected Comps View More Comps
Property History
Tax History
Similar Properties
Additional Information
Name
License
Brokerage
Title
Is there information that looks off?
