2/88 Elizabeth Way, Elizabeth.
A fast food restaurant in Adelaide’s north is offering investors a chance to bag a mouth-watering bargain in a booming industry.
The Carl’s Jr at Elizabeth, next to Elizabeth City Centre, will be auctioned next month.
Selling agent Oliver Totani, of RW Adelaide, said it had a price guide around the low to mid-$3m range, which was a bargain buy for a fast food eatery.
“Quick service retail investments at this sort of price range are rare offerings to the market, they’re normally $5m, $6m, $7m,” he said.
“It’s an entry level, affordable quick service retail investment.
2/88 Elizabeth Way, Elizabeth.
2/88 Elizabeth Way, Elizabeth.
“That’s probably one of the best market performers at the moment too.”
It comes a few months after a Nando’s drive-thru at Munno Para was snapped up for $6.2 million, making it the most expensive Nando’s ever sold in Australia.
The 5.16 per cent yield was the sharpest ever recorded for a Nando’s restaurant, and it was the brand’s first drive-thru outlet to be offered for sale in Australia, with the drive-thru component of the business contributing to almost 70 per cent of its overall revenue.
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The listing reported the Nando’s lease produced a net income of $320,000 per year.
Mr Totani, who is selling the Carl’s Jr site with Connor Melvill and Jack Dyson, said quick service retail properties were particularly appealing when cost of living was high as people were forced to find more “cost effective” food alternatives.
2/88 Elizabeth Way, Elizabeth.
2/88 Elizabeth Way, Elizabeth.
The restaurant was built four years ago on a prominent 2964sqm corner site of Elizabeth Way, which is passed by more than 52,000 vehicles each day.
It is leased to Carl’s Jr for 12 years commencing June 2022 and has an estimated net income of $187,025 per annum as of June 2026.
Mr Totani said prospective buyers had reached out within the first 24 hours of the property hitting the market.
“We’ve had more interest than we thought given last week’s federal budget,” he said.
Mr Totani said it was owned by a local “high wealth individual” who was selling to pursue other ventures.