INVESTMENT HIGHLIGHTS
8-YEAR LONG-TERM LEASE
El Torito Supermarket has nearly 8 years remaining on the original 10-year NNN lease with four, 5-year options, providing an investor with long-term, passive cash flow.
3% ANNUAL RENT INCREASES
The Property features rare annual 3% rent increases throughout the lease term and through each of the four, 5-year options.
LARGEST MEXICAN SUPERMARKET BRAND IN OREGON
El Torito Supermarket is the largest Mexican Supermarket brand in Oregon, and has expanded significantly since its founding in 2002, with the most recent store opening in November 2024 in Madras. There are currently seven locations across Oregon, including larger format stores in Klamath Falls, Salem, and Madras.
PERSONAL GUARANTEE
The Lease features a Personal Guarantee from El Torito founders and successful entrepreneurs, Alfredo Mendez Chavez Jr and Liliana Perez Miranda, who operate all seven locations across the state of Oregon.
MARKET MONOPOLY
El Torito Supermarket is the only Mexican supermarket in Klamath Falls and benefits from a Hispanic population exceeding 8,000 residents in a 5-mile radius. The Hispanic population in Klamath Falls accounts for more than 15% of its population and is the fastest growing demographic.
$1,700,000+ RENOVATION, BUILT TO SUIT A SUPERMARKET
The Seller took the property from shell condition and built it out to suit a Mexican supermarket. Since 2020, the Seller has invested more than $1,700,000 in property renovations, including brand-new HVAC units, refrigeration units, electrical wiring and plumbing; maintenance to the parking lot, roof, and landscaping; and new exterior and interior paint.
MINIMAL LANDLORD RESPONSIBILITIES
The NNN Lease features minimal landlord management or repair responsibilities (landlord responsible for roof/structure). The Property is in excellent condition and will not require any near-term capital expenditures.
HIGH BARRIER-TO-ENTRY SUB-MARKET WITH LOW VACANCY RATE (0.7%)
Retail vacancy rates in Klamath Falls are currently 0.7% with 2.9% rent growth year-over-year, per CoStar. With no new retail development under construction and no new supply delivered in over three years, the development lull creates an incredibly high barrier-to-entry as demand for space remains high.
STRONG POPULATION GROWTH
Within a 5-mile radius of the property, the population grew by over 8.57% since 2010 and is expected to grow another 3.7% over the next 5 years.
LARGE 1.90 ACRE LOT WITH AMPLE PARKING
The Property features 1.90 acres of land and approximately 80 parking stalls.
Listing Agents:
CLAYTON J. BROWN
Luke Holsinger
253.732.5067
luke.holsinger@marcusmillichap.com
