Just listed, but not by me, the real estate only a special purpose building located on the main thoroughfare into Key West. The listing broker describes the property this way:
"This is a real estate only purchase with a fantastic, stable true triple net long term lease in place. Family owned since the building was purpose built in 1971 for IHOP, lease has been in place with the same franchise company since the beginning. NOI is estimated to be about $100,000 for the year ending May 2012. Was $93,512. for the year ending May 2011. There are NO expenses to the property owner,just a $4000 check every month and an annual check for 7.5% of the gross receipts. In the past, these leases have been renewed. The base lease currently in place runs through April 2020, and the possible extensions carry the cash flow through to 2050."
I went out to the property to take photos last night just before sunset. The traffic was still quite heavy. It took me about ten minutes to take the photos and then find a safe gap so I could walk back across Roosevelt Boulevard. While I was there I noticed folks who I assumed were staying in nearby motels walk to the IHOP. Others walked past and went further west. The thought occurred to me that is why this inexpensive eatery is located where it is. It's probably why Denny's and MacDonald's which are located a few blocks further east. There is a huge concentration of motel rooms in this section of town. Then I remembered something I found while searching for online photos of IHOP in Key West. I decided not to "borrow" the family photo I found, but the sunset pic he took is shown below along with his comment about his family's experience at the Key West IHOP.
"Yes, our first supper on Key West was at IHOP. But at least the building is on N. Roosevelt Blvd., right across from the Gulf, and we saw a beautiful sunset from right there. At the famed Mallory Square -- sunset-watchers' Mecca -- you watch the sun set over filthy-rich peoples' houses on another island (at least at this time of year). Whoop-dee-ding! You can see the same island in my sunset shots here from the NE side of Key West, but it's not nearly so annoyingly close."
And I got it. I got what that photographer was writing about and how he and his family could see our wonderful sunset across beautiful waters undisturbed by the performers, the souvenir hawkers, or the "filthy-rich peoples' houses".
Not all of the people that stay in the motels in this area of Key West want to spend $18 for an appetizer, $39 for a steak or an extra $9 for some French fries in some upscale Old Town restaurant. Especially if they have little kids. Places like the Outback Steak House and TGI Fridays also located on North Roosevelt are almost always crammed with tourists and locals that are looking for good food at non-Duval Street prices. Of course, they don't have the water views available at the IHOP or MacDonald's. All of the North Roosevelt restaurants serve food that a big segment of the tourist population (and locals) want.
The IHOP property at 3416 North Roosevelt Boulevard is offered at $1,975,000. CLICK HERE to view the Key West Association of Realtors mls datasheet on this property. Remember, this is a true triple net investment with a guaranteed monthly payment of $4,000 plus an annual check for 7.5% of the gross receipts. The lessee is the same operator for whom this special purpose building was built in 19971. The check comes in each month like clockwork according to the listing broker.
If you would like more information on this property or any other property in Key West, please contact me, Gary Thomas, 305-76-2642 or send me an email at email@example.com. I am a buyers agent and a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida.