Aspect Real Estate Partners, INC. as the exclusive agent, is pleased to present for sale a ±29,000 SF, absolute NNN leased sale-leaseback.
The real estate and Chuck E. Cheese store is owned and leased by the number one global franchisee of the Chuck E. Cheese corporation. As the strongest and most profitable franchisee of the corporation, they have held the Number One title for 30 years. While the impact of COVID-19 has forced corporate to restructure, franchisees were excluded from the Chapter 11 filings. This franchisee is not only number one in the world but also the original co-founder of Chuck E. Cheese's predecessor, Pizza Time Theater. The past five years of financial statements are available for review to interested buyers. In 2019, this location generated $6.2M in total revenue and over $3.3M in gross profit, making it the number global Chuck E. Cheese location.
Upon the close of escrow, the new lease will be personally guaranteed and absolute NNN plus.? The initial term of the lease is 5-years plus two (2) 5-year options with a 5% rental increase at each option.?
Investment Highlights
5 Year Lease Term + two (2) 5-year options
5% rent bumps every 5 years
NOI: $480,000 per Year
5 Year Lease Term + Two (2) 5-Year Options
5% Rent Bumps Every 5-Years
#1 Chuck E. Cheese Store in the World
#1 Chuck E. Cheese Franchisee in the World
High Visibility from Tully Rd and US Hwy 101, both streets have traffic volumes over 100,000
417 Feet of Frontage along Tully Rd
Average Household Income, 5-mile radius > $125,000
Location Summary
High visibility from both US Highway 101 and Tully Road as it is adjacent to the Tully Road interchange. The property has ±417 feet of frontage along Tully Rd. The property is in the eastern portion of the City of San Jose, a suburban location approximately four miles southeast of Downtown San Jose. The neighborhood is home to a number of schools and public parks, and is almost entirely built out.
The largest retail land use in the neighborhood is the Eastridge Mall, an indoor mall anchored by AMC Theatres, Sears, Macy’s, JC Penney, and Forever 21. The mall is at the southwest corner of Tully Road and Capitol Expressway.
Lake Cunningham Park is a city-run park kitty-corner from Eastridge Mall. The park centers around Lake Cunningham, an artificial lake utilized for flood control.
A third major land use in the neighborhood is the Reid-Hillview Airport, a reliever airport for San Jose International Airport. The general aviation facility is owned by Santa Clara County and has two runways of 3,100 feet each in length.
There are several large community shopping centers in the neighborhood positioned at major intersections. One such center is Silver Creek Plaza. Silver Creek Plaza is anchored by Walgreen’s, Orchard Supply Hardware, and Safeway.
