Transaction marks the lowest cap rate recorded for Miller’s Ale House in all 70 locations
LAS VEGAS, July 29, 2015 – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $5.25 million ground lease sale of a single-tenant, 9,500-square-foot property fully occupied by Miller’s Ale House restaurant in Henderson, NV. Located at 594 Stephanie St. on 2.04 acres, the property is newly built. The restaurant opened its doors in 2014, offering the buyer a new corporate-guaranteed NNN ground lease with 14 years remaining.
Rob Moore, senior managing director in the Las Vegas office of Faris Lee Investments, represented the seller, Sunstone Arroyo LLC. The buyer, FL Grandland LLC was represented by StreetView Realty. The transaction closed at a 6.3 percent cap rate, the lowest to be recorded for any Miller’s Ale House-occupied property to date.
Miller’s Ale house is a successful casual-dining restaurant chain that has grown steadily since 1988 to include more than 70 restaurants in 10 states.
“Although the tenant was extremely credible, it has had more of a presence on the East Coast, therefore, investors were hesitant of the credit due to lack of name recognition,” noted Moore. “We aggressively marketed the property to our wide database of contacts, then honed in on East Coast buyers who would be familiar with the brand. In the end, we secured a buyer from Westin, Florida.”
“Restaurant-occupied investment property in a densely populated area of the Las Vegas market is extremely hard to come by,” he continued. “This location is irreplaceable and offered the buyer a passive and stable return in a new construction asset. All the fundamentals were present in this asset and Faris Lee secured a strong price-per-square-foot of more than $550.”
Miller’s Ale House is situated at the busy intersection of N. Stephanie St. and W. Sunset Rd. and features a large monument sign and excellent street visibility. As an outparcel to the Sunset Station Hotel & Casino, the property garners a strong amount of cross traffic generated by the hotel’s multiscreen IMAX Regal Cinemas; 72-lane bowling alley, 457 hotel rooms; and more than 110,000 square feet of gaming space. Miller’s Ale House is also within a greater Las Vegas retail corridor which boasts the highest concentration of retail in the market outside of the Las Vegas Strip. It is adjacent to Galleria Commons Shopping Center which is anchored by Old Navy, Michaels, Nordstrom Rack, Sprouts, and others. It is also across the street from the Galleria at Sunset mall with more than one million square feet of retail space that is anchored by JCPenney, Macy’s, Kohl’s and Dillard’s. The property is within a densely populated area with more than 285,000 residents and more than 135,000 employees within a five-mile radius and is a 10-minute drive to McCarran International Airport and the Las Vegas strip.
About Faris Lee Investments: Faris Lee Investments is a leading retail advisory and investment sales firm. The company’s high-level retail investment advisors and sophisticated financing experts develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Cumulatively, Faris Lee’s leadership has been involved in more than $20 billion of transactions. Faris Lee’s senior advisors are skilled in disposition and acquisition strategies, asset positioning and valuation, marketing, debt and equity structuring, strategic workout and REO solutions and execution. For more information, visit www.farislee.com.