Corporate, Absolute Net Hawaiian Bros

Pegasus Investments Real Estate Advisory Inc. and ParaSell, Inc., as exclusive investment sales advisors to seller, are pleased to offer the opportunity to acquire the fee simple interest (land & building) in a brand-new Hawaiian Bros quick-service restaurant (QSR) located in Tulsa (Broken Arrow), Oklahoma (the “Property”). Investors in the Property will benefit from a newly constructed, fully improved QSR building which will allow for attractive and accelerated depreciation benefits, further enhancing the total return on investment. The fifteen (15) year firm term lease features 10% increases every five years throughout the base term and options and carries a rare corporate signature throughout.
The Property is leased on a 100% absolute triple net (NNN) basis to Hawaiian Bros (the “Tenant”), an emerging and rapidly growing best-in-class QSR operator. Hawaiian Bros features the use of a traditional plate lunch concept with a unique menu of Hawaiian food options not found in any existing national QSR and fast-casual chains. Hawaiian Bros opened its first location in 2018 and has rapidly grown to over 50 units across nine (9) states, mostly focused in and around the Midwest. The company has explosive growth and development plans for several hundred units over the next five (5) years. The exceptional average unit volume (AUV)* of $3.5 million is the 5th-highest AUV in the country, making Hawaiian Bros one of the best-performing concepts in the QSR space.
The Property features Hawaiian Bros’ modern QSR site prototype equipped with both a double-lane drive-thru and an innovative online order drive-up window. The site, featuring a 4,000 SF building on a massive 1.42-acre parcel, provides operational efficiencies for the tenant, expansive indoor dining and desirable fungibility for investors.
The Property is located within the primary retail corridor of Broken Arrow, the largest suburb of Tulsa according to the most recent U.S. Census, with a population of approximately 120,000. The corridor is home to a multitude of national big-box anchors, including Target, Lowe’s, Marshall’s, Hobby Lobby, Sprouts, Dick’s Sporting Goods, and more. The Property is located prominently along E Kenosha St, and adjacent to several newly constructed QSRs including Chick-Fil-A, Chipotle, Raising Cane’s, Popeyes, and Andy’s Frozen Custard. Additionally, the Property will further benefit from its direct access off the 177th E Ave. exit ramp of Highway 51, the main highway connecting the southeast expansion within the metroplex to downtown Tulsa.
The Tulsa Metro continues to shine as one of the most promising markets in the Midwest. Historically ranked in the top 10 most affordable cities in the USA, the metro’s population has grown consistently, approaching a 20% growth rate in the last decade. In fact, since April 2020, Tulsa has experienced an impressive net increase of over 65,000 people, with 88% of these newcomers originating from other states. Notably, a significant proportion of the influx has come from California, highlighting Tulsa’s appeal as an attractive destination for relocation from coastal communities. Tulsa’s business-friendly atmosphere, strong economy, and diverse and educated populace have invited significant investment, immigration, and development.