Drive-Thru, Long Beach @ 7th and Walnut 1601 E 7th St 1 775 pi² Commerce de détail Immeuble Long Beach, CA 90813 2 669 943 $ CAD (1 504,19 $ CAD/pi²) 6,15% Taux de capitalisation

Pegasus Investments Real Estate Advisory, as exclusive representatives for the Seller, is pleased to offer the fee simple interest in a freestanding Teriyaki J’s drive-thru restaurant located in Long Beach, California (the “Property”). The newly leased 1,775 SF property is positioned on a signalized hard corner in the affluent Hellman District ($134K Average Household Income in a 5-Mile Radius) and is offered at a sub $2 million price point, significantly below the typical asking price for a drive-thru restaurant in the Los Angeles metropolitan region.

The Property is subject to a brand new, 10-year 100% Absolute NNN lease, with the tenant responsible for all property expenses, offering investors the most passive form of commercial real estate ownership available. The lease features above-market 3.00% annual increases – providing a meaningful hedge against inflation and built-in rent growth. Upon expiration of the base term, the lease includes one 5-year renewal option where rent is increased to the fair market value and thereafter resumes to 3.00% annual increases, further enhancing long-term cash flows.
The lease is backed by Teriyaki J’s, a rapidly growing quick-service restaurant with an expanding footprint across the southeastern Los Angeles metropolitan region. The brand has demonstrated resilience, successfully launching during the COVID-19 pandemic. Further strengthening the credit profile, the lease is supported by an absolute and unconditional guaranty from the company’s founders, underscoring their full commitment to the restaurant’s long-term success.

Long Beach is the 7th largest city in California and benefits from a strategic location between Los Angeles and Orange County. The economy is anchored by the Port of Long Beach, the largest port facility on the West Coast, which facilitates 15% of total U.S. trade and contributes more than $300 billion to the national GDP. Nicknamed “Space Beach”, the city has emerged as a hub for the Aerospace & Defense industry. Notably, Anduril Industries is developing a 1.2 million square foot campus in Long Beach, expected to deliver over 5,500 new jobs upon completion in 2027.

The offering represents a rare opportunity to acquire a 100% Absolute NNN drive-thru asset at a sub $2 million basis in one of Southern California’s most dynamic and resilient economic markets. With above-market rent growth, strong tenant commitment, and a prime location, the Property offers a low-risk investment profile with meaningful long-term upside.