Long-term - NNN LEASE - Downtown Delray Beach
441K Revenue | Long-term Lease | NNN
Marketing description
Market & City Recognition:
Delray Beach enjoys a national reputation as one of Florida's premier coastal downtowns. The city has earned numerous prestigious accolades, including:
- Best Beach in Florida
(USA TODAY 10Best Readers Choice Awards, 2024 and 2025 second consecutive year)
*All-America City Award winner (1993, 2001, 2017)
*Blue Flag Award recipient for beach excellence
(international recognition for environmental quality, safety, education, and accessibility)
*America's Happiest Seaside Town (Coastal Living)
These honors highlight Delray Beach's sustained momentum, effective governance, and broad appeal to residents, visitors, and businesses. Combined with its thriving arts scene, beaches, festivals, and dense concentration of food, beverage, and retail, downtown Delray consistently outperforms peer markets.
Investment highlights
This newly leased, absolute triple-net (NNN) restaurant investment is in the heart of Downtown Delray Beach's Entertainment District one of South Florida's most vibrant and supply-constrained urban cores.
The property is delivered with a brand-new 15-year absolute NNN lease, delivering long-term, passive income with zero landlord responsibilities. The tenant covers all real
estate taxes, insurance, maintenance, roof, and structure.
Unmatched Downtown Location:
Located just 1.5 blocks south of the iconic intersection of Atlantic Avenue and Pineapple Grove widely considered the epicenter of Delray Beach's retail, dining, and nightlife corridor—the asset benefits from prime positioning within the local entertainment district. This zoning allows for extended operating hours and greater flexibility with sound ordinances, a critical advantage for high-energy, destination food-and-beverage concepts.
Downtown Delray Beach is highly coveted for its walkability, year-round energy, and strong foot traffic drawn from affluent locals, seasonal residents, and robust tourism.
Limited future supply, strict zoning, and consistent tenant demand further support the area's long-term strength.
On the same street, just one block west, is Worthing Place, a 217-unit Class A rental community acquired in an all-cash transaction in late 2023 by a joint venture between CDS International Holdings and Greenwall Capital Management and recently refinanced with a $70 million mortgage. This concentration of institutional-grade multifamily assets from sophisticated sponsors including Pebb Capital, The Related Group, TA Realty, CDS International, and Greenwall Capital underscores the tremendous underlying value, strong demand, and long-term appreciation potential in this highly walkable core of Downtown Delray Beach's Entertainment District. Additionally, 244 apartments and townhouse units are being developed within a block of the property.
The 15-year absolute NNN lease provides durable income and downside protection, enhanced by a percentage rent clause that offers meaningful growth potential.
Current base rents sit below market rates for comparable downtown Delray Beach restaurant space, creating a natural hedge against inflation.
The percentage rent provision allows investors to participate directly in the tenant's success as sales increase, while providing rare visibility into unit-level performance through sales reporting a valuable insight not typically available in standard NNN investments. This structure delivers both stability and equity-like upside.
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