Domino's
12 Years Remaining on Initial 15 Year Lease Term
Marketing description
Encore REIS is pleased to present the Domino's property located along US Highway 31 in Manistee, Michigan. The building was retrofit for Domino's in 2023 including a new roof, new HVAC system, and the configuration of a drive-thru window. Domino's signed a 15-year lease with 2% annual rental increases, highlighting their long term commitment to the site. The store opened in 2023 and quickly achieved a rent to sales ratio below 5%, underscoring the long-term viability of their tenancy.
The lease features minimal landlord responsibility with the tenant required to insure the building, pay all taxes directly, and handle all day-to-day maintenance. Landlord responsibility is limited to roof, HVAC, and parking lot improvements exceeding $4,000 in a given year.
The property is situated along Manistee's main retail corridor, US-31 Hwy, which North and South between the tip of Michigan's lower peninsula and the Panhandle of Florida. Manistee is a coveted summer vacation destination situated along Lake Michigan. The city is home to Little River Casino & Hotel which sees over 600,000 visits per year. The city boasts three world class beaches with sugar sand and easy access along Lake Michigan.
Investment highlights
- 12 Years Remaining on Initial 15 Year Lease Term - Provides long-term lease stability.
- 2% Annual Rental Increases - Built in rent-growth creates compounding income increases over time to hedge against inflation and create property value.
- Rent to Sales Ratio Below 5% - A low rent to sales ratio suggests the location is financially strong for the tenant.
- Drive-Thru Equipped Building - The drive-thru adds convenience for customers and supports strong sales volume.
- Retrofit to Tenant's Specs in 2023 - Recent upgrades tailored to the tenant reduce near-term capital needs.
- New Roof, HVAC, and Drive Thru
- Located on Manistee's Main Retail Thoroughfare - This prime location offers excellent access and strong retail positioning nearby all of the national and regional tenants.
- Coveted Northern Michigan Summer Destination - The area benefits from seasonal tourism that boosts customer traffic and sales.
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