Applebee’s High-Performing Portfolio 2 Retail Properties in Multiple Locations

Marcus & Millichap is pleased to present the opportunity to acquire a two-property Applebee’s Neighborhood Grill + Bar portfolio located in Adrian and Kalamazoo, Michigan. The assets are being offered as a portfolio or may be acquired individually, providing investors with flexibility to pursue a single-asset or scaled investment strategy. The offering consists of two single-tenant, absolute net-leased restaurant properties strategically positioned along dominant retail corridors and supported by strong national co-tenancy and traffic drivers.
Both locations have demonstrated sustained operational performance, with each ranking within the top tier of stores statewide and nationally according to Placer.ai data. Favorable rent-to-sales ratios (approximately 4.80% in Adrian and 5.89% in Kalamazoo) provide meaningful operating cushion and support long-term tenancy.
Each property is subject to a 10-year absolute net sale-leaseback structure featuring 10% rental increases every five years and in the option periods, offering investors predictable cash flow and inflation protection. Additionally, both locations are scheduled to undergo Applebee’s “Greenhouse” remodel in 2026, which will include updated branding, modernized interiors, enhanced seating and bar areas, to-go program improvements, and site upgrades—further reinforcing long-term viability and tenant commitment.
The Adrian location is situated within the Adrian Crossroads Plaza, a well-established retail destination serving the greater Lenawee County area. The site benefits from direct frontage along South Main Street, one of the region’s primary commercial corridors, with a combined traffic count of approximately 35,220 vehicles per day. The property features strong visibility and access and is surrounded by a robust mix of national retailers, including Walmart Supercenter, Meijer, Lowe’s, ALDI, and other prominent traffic drivers, reinforcing the long-term strength and stability of the trade area.
The Kalamazoo location is positioned along West Main Street near the Drake Road intersection, one of the market’s most active retail corridors. The property benefits from traffic counts exceeding 28,000 vehicles per day along West Main Street and convenient access to US-131, which carries over 55,000 vehicles daily. The site offers excellent visibility and is located within a dense retail corridor anchored by national tenants such as Walmart Supercenter, Meijer, Menards, Kohl’s, and others, in addition to its proximity to Western Michigan University, which has a student population of approximately 16,000.
The tenant, TSFR Apple Venture, which is owned by TEAM Schostak Family Restaurants, a well-established, family-owned franchise operator with a significant multi-brand footprint throughout Michigan. The operator maintains approximately 60 Applebee’s locations along with other nationally recognized concepts. TEAM Schostak has earned consistent industry recognition, including being named a Top Workplace by USA Today for five consecutive years, reflecting operational strength, stability, and a strong employee-focused culture.
With more than a decade of continuous operation at both locations, strong store-level performance, experienced franchise ownership, and long-term net lease structures, this offering presents investors with a compelling opportunity to acquire passive, management-free assets in stable Midwestern markets, either individually or as a cohesive portfolio.