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  Captain D's


Average Property & Lease

Average Sale Price$1,223,244
CAP Rate (12mo avg with 10+ lease term)7.30%
NOI$87,702
$/Square Foot$450
Building Size2,400 - 3,400 +/- sf
Lot Size0.6 - 1.2 acres
Lease Term15 +/- Years
EscalationsVaries
CREDIT RATING
N/A
S&P
N/A
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: October 20, 2016
Net Lease Advisor Overview

Americans are moving towards a fast-casual dining experience that feels like a restaurant and is good for them. This is what makes Captain D's an attractive investment. Most leases are absolute NNN ranging between 15-20 years term. They may have an annual increase of 1-2% or 7-10% every 3-5 years. Recently traded deals usually had less than 10 years remaining but new Captain D leases are currently hitting the market.

Captain D's corporate stores do yield a lower cap rate than their franchise stores. However, the seafood franchises have proven extremely versatile, with top-performing locations in rural towns, in suburban enclaves and in dense urban areas.

Pros

Cons

  • NNN Lease eliminates Landlord responsibilities
  • Annual increases on some leases
  • Private company
  • Must look closely at performance of franchisor across all locations
Tenant Description

The first Captain D's Seafood Restaurant opened on August 15, 1969, in Donelson, Tennessee. Within four years there were 15 locations, and what had begun as Mr. D's Seafood and Hamburgers had officially become Captain D's.

The restaurant's focus became the fish and chips, which includes freshly prepared entrees and the company's signature hand-battered fish, which is cooked to order. The restaurants also offer premium-quality, grilled items such as shrimp, and surf and turf, as well as hushpuppies, desserts and freshly brewed, Southern-style sweet tea.

In the 1980s and 1990s, Captain D's franchise opportunities grew throughout the Southeast. Captain D's has 513 restaurants in 21 states, with a large cluster of restaurants in the Southeast and an expanding footprint in other states. About half the restaurants are owned by franchisees.

Captain D's wants to expand throughout the United States by partnering with franchisees. Captain D's has experienced a recent surge of franchise development, propelled by the company's ongoing success, with the second quarter of 2016 signifying the company's 19th consecutive quarter of system-wide growth. As part of this accelerated growth, the company will open five new restaurants in the Savannah, Georgia market, three in Dallas, and one in Hopewell, Virginia, over the next several years. The average gross sales for new stores opened in the past two years topped $1.4 million.

Captain D's is the No. 1 seafood franchise in The QSR 50, the annual ranking by QSR magazine.
CAPTAIN D'S TREND
CAP Rate

2015 avg: 7.86%

2016 avg: 7.35%

RECENT SALES

Monroeville, AL

$649,975 | 8.00%

Memphis, TN

$1,950,000 | 7.11%

MORE INFO
www.captainds.com