Description

Pegasus Investments Real Estate Advisory, acting as exclusive representative for the seller, is pleased to present the fee simple interest in a freestanding Teriyaki J’s drive-thru restaurant located in the affluent Hellman District of Long Beach. This newly leased 1,775-square-foot property occupies a highly visible signalized hard corner and is being offered at a sub-$2 million price point, a rare value proposition for a drive-thru restaurant asset within the highly competitive Los Angeles metropolitan market. Positioned within a dense and affluent trade area featuring average household incomes of approximately $134,000 within a five-mile radius, the property benefits from exceptional demographics and strong surrounding consumer demand. The investment is secured by a brand-new 10-year 100% Absolute NNN lease, providing investors with one of the most passive forms of commercial real estate ownership available, as the tenant is responsible for all operating expenses, maintenance, taxes, and insurance. The lease structure includes attractive 3% annual rent increases throughout the base term, delivering built-in income growth and meaningful protection against inflation. Following the initial lease term, the agreement includes a five-year renewal option with rent adjusted to fair market value before continuing annual escalations, further enhancing long-term revenue potential. The lease is backed by Teriyaki J’s, a rapidly expanding quick-service restaurant brand with a growing presence throughout southeastern Los Angeles County. The company demonstrated operational resilience by successfully launching during the COVID-19 pandemic, while the investment’s security is strengthened by an absolute and unconditional guaranty from the founders themselves, reflecting strong commitment to the brand’s continued growth and stability. Long Beach, the seventh-largest city in California, benefits from a strategic location between Los Angeles and Orange County and maintains one of the region’s most diverse and resilient economies. The city is anchored by the globally significant Port of Long Beach, the largest port complex on the West Coast, facilitating approximately 15% of total U.S. trade and contributing more than $300 billion annually to the national GDP. Additionally, Long Beach has emerged as a major center for aerospace and defense innovation, earning the nickname “Space Beach.” A key catalyst for future economic growth is the expansion of Anduril Industries, which is currently developing a 1.2 million-square-foot campus expected to create more than 5,500 jobs by 2027. Combining a rare low basis, a fully passive Absolute NNN lease structure, strong annual rent growth, committed tenant sponsorship, and a prime Southern California location, this offering represents an exceptional long-term net lease investment opportunity with substantial upside potential.