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  PDQ


Average Property & Lease

Average Sale Price$2,703,679
CAP Rate (12mo avg with 10+ lease term)5.75%
NOI$155,566
$/Square Foot$650 - $750
Building Size4,000 sf
Lot Size1.5 acres
Lease Term15 - 20 Years
Escalations10% Every 5 Years
CREDIT RATING
N/A
S&P
N/A
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

PDQ, a private company, burst onto the fast casual food scene in 2011 and has since grown to 54 locations. PDQ is recognized as one of the best new names in the fast casual industry and their stores have premier retail locations with high traffic counts, making it a high demand net lease investment.

PDG generally has absolute net lease structure since many are a ground lease. A brand new lease is usually 15 - 20 year with 10% increases every 5 years with four, 5 year options. Their stores features a 4000 +/- SF building and are usually situated on 1 +/- acre lot. PDQ stores are 80% corporate owned and guaranteed while the rest is franchisee.

Pros

Cons

  • Rental increase throughout primary term of the lease
  • Absolute NNN ground lease
  • Premier retail location
  • Private company
  • No Credit Ratings
  • Some franchisee stores
Tenant Description

PDQ stands for "People Dedicated to Quality" and "Pretty Darn Quick," and it was founded in 2011 by former Outback Steakhouse founder Bob Basham and MVP Holdings CEO Nick Reader. PDQ is a fast casual restaurant specializing in fresh hand-battered chicken tenders, made-to-order sandwiches, daily cut fries, hand-spun milkshakes and fresh salads which the restaurant says its staff makes meals within two minutes using fresh ingredients. All items on PDQ's menu are under $10, with an average lunch bill coming in at $7.69. PDQ store features a hand-washing station near a counter area and an open kitchen so that customers can see the food being prepared. There are no microwave ovens in the store, and all sauces are made on location with no preservatives

Since opening their first location in Tampa, PDQ has expanded across Florida and in Georgia, Alabama, South Carolina, North Carolina, Texas and Nevada. PDQ opened its 54th store in South Jersey and plans to expand into other cities in Florida, Nevada, Utah and Arizona. About 80% PDQ stores are corporate owned while rest are franchisees.

A typical PDQ store cost $1 million to open according to PDQ president and they plan to trim $100,000-$150,000 off the $1 million cost for future locations. With about 75 employees per store, PDQ promises a level of hospitality designed to out-service quick service.

The company recently received two significant industry accolades: Restaurant Business Magazine named PDQ the #1 fastest growing small restaurant chain in America on its "Future 50" list of fastest-growing concepts. And Nation's Restaurant News named PDQ as one of its five "Hot Concept" award winners for 2014 in recognition of PDQ's growth potential.
PDQ TREND
CAP Rate

2015 avg: 5.83%

2016 avg: 5.75%

RECENT SALES

Houston, TX

$2,504,345 | 5.75%

MORE INFO
www.eatpdq.com