View Mobile Site
 

Ask the Expert

Signal Photos

 

Land listed for sale at Wendy’s food site

Posted: June 25, 2014 2:00 a.m.
Updated: June 25, 2014 2:00 a.m.

Wendy's at the intersection of Magic Mountain Parkway and The Old Road in Santa Clarita. Dan Watson/The Signal

View More »
 

The land under Wendy’s fast food restaurant at the intersection of Magic Mountain Parkway and The Old Road is listed for sale at $6.252 million dollars.

The property just went up for sale in mid-June, said Eric Carlton, associate vice president for Colliers International.

Wendy’s sits right off the I-5 freeway, and at the entrance to Six Flags Magic Mountain. It is estimated that the theme park attracts some 3 million visitors each year; visitors who must access the park at the corner where Wendy’s is located.

Colliers is representing the property owner who is selling only the land.

There’s a long term lease for Wendy’s in place that will be transferred to the new owner, Carlton said.

There are more than 18 years left on the lease. The annual rent payments for the 3,835 square foot fast food chain bring in $250,105, according to Colliers.

The property is estimated to be 40,450 square feet according to online commercial real estate listing service, Loop Net.

In the meantime, the Wendy’s restaurant will be in the process of undergoing a planned renovation.
Wendy’s initiated the project to update the look and is “spending quite a bit of money,” Carlton said.

Located next to Wendy’s are long term tenants Red Lobster and El Torito, both chain restaurants.

Also, a vacant building at the end of the strip has housed at least five restaurants over the years.

Hamburger Hamlet was a long term tenant in that spot.

During the lengthy recession, four other restaurants opened and closed or moved to smaller locations - Bella Cucina, Rio Rio, Game Day, and Beef O’Brady’s. A map of the immediate area presented by Colliers shows a future hotel planned for that location.

The existing lease for the restaurant reportedly doesn’t expire until Aug. 1, 2032. Wendy’s has been at the location since 1983.

jana@signalscv.com
661-287-5599

Comments

lars1: Posted: June 25, 2014 9:58 a.m.

If Wendy's is paying a quarter of a million dollars for 3,835 square feet on a deal that was signed along time ago, how much do you think the rent would be for the vacant building?

Greed is the reason why so many small businesses are closing in Santa Clarita. They cannot afford the rents.


BBennettssupporter: Posted: June 26, 2014 3:21 p.m.

If Wendy's is paying annual rent payments of $250,000, that equates to about $21,000 per month. If the owner of Wendy's was smart, he/she would purchase the land at the asking price of $6,252,000. The monthly payment for that loan, at 5% interest over 30 years, is about $33,562; only $12,000 more per month. That way, they could now get the rent from Red Lobster and El Torito, PLUS the rent of the future hotel.




You need to be a registered user to post a comment. Please click here to register.

The Signal encourages readers to interact with one another, following the guidelines outlined in our Comment/Moderation Policy. Click here to read it.

To report offensive or inappropriate comments, e-mail abuse@signalscv.com. The content posted from readers of signalscv.com does not necessarily represent the views of The Signal or Morris Multimedia. By submitting this form you agree to the terms and conditions listed above. Thank you in advance for your cooperation.

 
 

Powered By
Morris Technology
Please wait ...