Heartland Income Properties to Acquire Scooter's Coffee Location in Iowa
SCOTTSDALE, Ariz. - March 14, 2019 - PRLog -- Heartland Income Properties, LLC ("Heartland")
The lease runs though May 2028 and includes four five-year option periods with ten percent increases from the prior term. The initial capitalization rate is 7.24% which, when leveraged, will provide a return of approximately 12.5% to Heartland.
Closing is expected to occur within forty-five days from contract signing.
Under the terms of the lease, Scooter's is responsible for all real estate taxes and insurance as well as maintenance and HVAC to the structure. The lease is also guaranteed by corporate Scooter's.
Scooter's is a chain of drive-thru coffee shops and is one of America's fastest growing retailers. The company currently has close to 200 locations primarily in the Midwest with plans to expand to 1,000 locations nationwide.
Clear Lake is a resort community adjacent to Mason City, Iowa.
In announcing the contract, Heartland Chairman Tim Kopatich, noted that the acquisition represents a great opportunity for Heartland. "We're excited about securing this property. We are currently evaluating several other properties in the Midwest and look forward to announcing additional acquisitions soon."