Connors Steak & Seafood
10076 Gulf Center Drive | Fort Myers, FL 33913
First Vice President Investments
First Vice President InvestmentsJames.Garner@MarcusMillichap.com
Corporate Guaranteed Lease with Growing Concept
Massive Sales Volume & Huge Upward Trending Sales
Located Next Door to Florida’s Largest Costco
Outparcel to 2MM sq. ft. Gulf Coast Town Center
Surrounded by 7 Hotels / 900 rooms
5,000+ Luxury Homes Under Construction Across the Street
Marcus & Millichap is pleased to present Connors Steak & Seafood in Fort Myers, Florida. Connors has eleven and one-half years remaining on a corporate guaranteed lease with two five-year option periods. The tenant pays a combination of guaranteed base rent and percentage rent. The current base rent is $308,000 per year with a 10 percent increase in February 2022. Percentage rent is calculated at six percent of net sales over a natural breakpoint of $5,133,333. Based on 2019, the percentage rent is equal to $95,780, making the total NOI $403,780. This unique rent structure provides an investor with a stable cash flow stream with future upside due to rapidly and consistently growing sales as well as scheduled base rent increases.
The subject property is an outparcel to the Gulf Coast Town Center-- a 1,900,000-square-foot power center featuring national tenants such as Costco Wholesale, Regal 16 Cinemas, LA Fitness, Bass Pro Shops, Dick’s Sporting Goods, Marshalls, Best Buy, Ron Jon Surf Shop, and many more. Gulf Coast Town Center has been considered the commercial heartbeat of Fort Myers for over a decade, and has massive signage on Interstate 75 that’s impossible to miss. The property is one of many national restaurant chains outside the Town Center, including Panera Bread, Olive Garden, Chili’s, Longhorn Steakhouse, Cheddar’s, Culvers, PDQ, Pollo Tropical and McDonald’s. There are also six hotels within one-eighth mile of the subject property totaling 896 rooms, providing
the property with heavy foot traffic.
Gulf Coast Town Center is nestled between Interstate-75, Alico Road and Ben Hill Griffin Parkway, which each receive traffic from 100,500, 23,925, and 32,000 vehicles per day respectively. This property benefits from being positioned along the route to and from Southwest Florida International Airport. The airport handled over 10.2 million passengers in 2019, making it one of the top 50 United States airports for passenger traffic. The subject property is also located just one and one-half miles from Florida Gulf Coast University which has over 22,000 students enrolled and 5,000 faculty and staff. In addition to Florida Gulf Coast University, there are numerous master planned communities and developments surrounding the subject property. These include Wild Blue, Centerplace, Westbrook, and Esplanade Lake Club totaling over 5,000 homes with over 1,000+ homes starting at $1 million. There is a population of 71,940 with an average household income of $113,897 within a five-mile radius of the subject property, which are ideal trade demographics for Connors Steak & Seafood. Due to the highly favorable trade demographics, the strong year-over-year sales growth, and the property’s positioning at the Gulf Coast Town Center, this restaurant asset is poised for long term success and future appreciation.
The Fort Myers market is a popular tourist destination and receives over 1.8 million visitors each year. Fort Myers is also a significant second-home market partly due to its convenient proximity to major cities, such as Miami and Tampa, which are both less than two hours away. Fort Myers is located in Lee County, which has a current population of over 700,000 full time residents. World-class fishing, award winning beaches, no state income taxes, and year-round beautiful weather are attracting new residents and visitors to this area at record breaking pace.