Flushing, N.Y., investor buys 14th Street IHOP

BUYER: Mamos Realty LLC (principal: Philip Mamos), Flushing, N.Y.
SELLER: Urban Atlantic Group LLC
PROPERTY: 5427 W. 14th St., Bradenton
PRICE: $1.28 million
PREVIOUS PRICE: $1 million, March 2010
LAW FIRM ON DEED: St. George & Tejera PA, Coral Gables

PLANS, DESCRIPTION: Philip Mamos of Flushing, N.Y., purchased a 2,768-square-foot restaurant on U.S. 41 for $1.28 million.

The price equated to $462 per square foot. That figure is higher than the two-year average price per square foot for retail space ($146) in the Tampa Bay area, according to the CoStar Group.

The building is currently leased to IHOP, which is obligated to pay for any maintenance and all building taxes and insurance. The restaurant franchisee, which operates 18 other locations, has more than a decade remaining on the initial term of its lease. The rental agreement, which has 17 years remaining on its initial term, includes annual rental increases of 1.94%.
Thomas Conway of Conway Commercial Real Estate Inc. represented the seller. He says, the purchase price equated a payoff ratio based on income (capitalization rate) of 7%.

“The buyer was looking for good passive income,” Conway says. “That location's store sales were very healthy.”