Listed by Marcus & Millichap - Orange County
$1,501,000
Hyphy Burger
Details
Property Type Retail
Sub Type Restaurant, QSR/Fast Food
Square Footage 2,256
Cap Rate 7%
NOI $105,060
Occupancy 100%
Tenancy Single
Brand/Tenant Burger King, McDonald's
Lease Type NNN
Lease Term 10
Lease Expiration 05/31/2035
Rent Bumps Yes
Lease Options Two, five-year options
Price per SqFt $716
Broker Co-Op True
Year Built 1989
Year Renovated 2025
Acreage 0.280
Investment Type Net Lease
Tenant Credit No Credit Rating
Lease Commencement 05/30/2025
Ground Lease No
Ownership Fee Simple
Sale Condition For sale by owner
New 10-Year Lease | 7% CAP | 2,256 SqFt
Marketing description
Single-tenant ±2,256 SF drive-thru restaurant occupied by Hyphy Burger — a culturally rooted Oakland-born smashburger concept — secured by a 10-year NNN lease with 3% fixed annual increases, two five-year options, and personal guaranties from the founders.
Investment highlights
- Brand-new build-out with executed 10-year NNN lease.
- 3% fixed annual increases throughout original term and option periods.
- Two five-year extension options extend income to 20 years.
- Personal guaranties from both founders, joint and several.
- Limited Lessor obligations: foundation, structure, and roof structure.
- 10-year NNN lease with 3% fixed annual increases.
- Two, five-year renewal options at the same 3% bumps.
- Personal guaranties from both founders, joint and several.
- Tenant assumes property tax increases beginning Year 3.
- Roof membrane and all non-structural maintenance assigned to Tenant.
- Locally rooted Oakland concept co-founded by foodie influencer Darion Frazier (BayAreaFoodz, 8+ years building audience) and Grammy-nominated rapper Guap.
- Original West Oakland flagship opened February 2025 with lines around the block; second unit signed for the subject site with two more locations underway.
- Tight, focused menu - burgers, fries, and milkshakes - limits operational complexity.
- Press coverage in Eater SF, KTVU, SFGATE, and East Bay Express drives organic awareness.
- International Boulevard frontage — a continuous East Oakland retail and AC Transit BRT corridor.
- Drive-thru-equipped ±2,256 SF building with outdoor patio.
- Permitted Use protections specific to the Hyphy Burger menu, including hamburgers, fries, and milkshakes.
- Dense urban infill location with limited new QSR drive-thru supply.
Listing Contacts
Listed by Marcus & Millichap - Orange County
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$105,060.00
$8,755.00/mo
Valuation Metrics
0
DSCR
7%
Cap Rate
7%
ROI
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