Franchised Restaurant For Sale (Chattanooga, TN)

Retail-Commercial for Sale
Catylist Listing ID: 30748219
Property Subtypes: Restaurant, Retail-Pad
Building Size (RSF): 2,500 SF
Gross Land Area: 2,500 SF
Sale Price: $360,000
Unit Price: $144 PSF
Ceiling: 25 ft.
Property Use Type: Net Leased Investment (NNN), Investment, Business
Building Name: California Tortilla
Usable Size (USF): 2,500 SF
Sale Terms: Cash to Seller
Cap Rate: Undisclosed
Average Occupancy Rate: 100
Last Updated: 9/9/2021

Overview / Comments

Seller is motivated! The restaurant for sale is California Tortilla which is located in a newer retail development center on Hwy 153 near Northgate Mall in Chattanooga, TN. The restaurant opened in October 2019 and is still operating and it has a solid base of business from which growth can occur.

California Tortilla is a franchised chain of about 38 stores located mostly on the east coast. This store is the first restaurant located in Tennessee. The franchisor would like the buyer to be someone who can build out the market and create more mass for the brand concept. The brand is a fast casual Mexican type restaurant. The national website is at https://californiatortilla.com/. The website describes the brand in more detail and shows where the other stores are located. Typical franchisee sales are $1 to $2 million per store.

The restaurant is presently generating about $45,000 a month or $540,000 per year in sales however, sales could be double that and more. Given that the store was opened in 2019, all of the equipment is almost brand new and is in great shape. The whole retail development was recently built too and is in great shape. This is one of Chattanooga's busiest retail districts with about 50,000 cars per day driving past this location.

Financial and lease details can be shared to qualified buyers. Please contact the listing agent directly to obtain these details.

From the Franchisor's website:
We are California Tortilla and we are Mexican Re-Imagined. From the ingredients to the preparation to customer service, we’ve transformed a “quick bite” into a mouth-watering, crave-inducing, “I can’t wait to come back” experience.

California Tortilla is a unique fast casual Mexican restaurant franchise that serves “California Style” Mexican food. We focus on one aspect that many other Fast Casuals continue to ignore; quality. We source the best ingredients from local farm to table purveyors. We use only premium proteins and our salsa, guacamole, queso and sauces are made fresh daily and are never frozen.
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Please see the Lease Abstract for lease details. The initial lease term is 10-years with two 5-year extensions. The base rent is about $30/sf with the NNN (triple net) expenses at about $5.30/sf. The whole development is a Class A development.

Buying the restaurant would include the following:
1. Becoming a franchisee
2. Getting trained by the franchisor.
3. Assuming the current franchisee agreement.
4. Assignment of the current lease in place.

The sale would include all of the equipment and access to the current staff. Inventory of the food and paper goods would be done just prior to the sale and be added onto the Sale Price.

Additional Details

Nearest MSA: Chattanooga
County: Hamilton
Taxing Authority: Hamilton County / Chattanooga City
Tax ID/APN: 033110I H 00200
Zoning: C2
Retail Clientele: General, Family, Business, Traveler, Tourist, Recreation, Convention, Other
Property Located Between: Hwy 153 just south of Northgate Mall
Property Visibility: Excellent
Largest Nearby Street: Hwy 153
Feet of Frontage: 200
Traffic/Vehicle Count: 50,000
Highway Access: Located on Hwy 153 and at the corner of Hwy 153 and Hamill Road. Hwy 153 carries 50,000 cars per day! One of Chattanooga's busiest roads.
Airports: Chattanooga Metropolitan Airport
Site Description: The site is level and at street grade. Restaurant location is at front right location of the retail center has great visibility to the traffic on Hwy 153.
Area Description: The Northgate Mall area is the second greatest retail district in Hamilton County behind the Hamilton Mall district. It serves the northern and eastern portion of the county well.
Tenancy: Multiple Tenants
Total Number of Buildings: 3
Number of Stories: 1
Typical SF / Floor: 2,500 SF
Property Condition: Excellent
Year Built: 2019
Year Renovated: 2019
Construction/Siding: Block
Exterior Description: Very attractive block and masory.
Total Parking Spaces: 20
Parking Ratio: 10 (per 1000 SF)
Parking Type: Structure, Surface
Parking Description: Parking is around the restaurant on 2 sides and is plentiful for the property.
Sprinklers: Wet
Heat Type: Natural Gas
Heat Source: Central
Air Conditioning: Engineered System
Interior Description: See pictures which show this.
Zoning Description: C2 commercial
Lot Frontage: 200
Lot Depth: 50
Water Service: Municipal
Sewer Type: Municipal
Land Ownership: Leased

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 2,906 37,561 102,916
Median Age: 38.62 41.9 40.03
Households: 1,296 16,623 44,157

Contact

Photograph of Listing Agent

Robert Fisher

KW Commercial Greater Chattanooga REALTORS® Member
Photograph of Listing Agent

Riley Kurtts

KW Commercial Greater Chattanooga REALTORS® Member
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