Shane's Rib Shack Net-Lease | Ellijay, GA

Business Overview:

A 7% cap rate on a corporate-guaranteed restaurant lease is hard to find in today's net-lease market, where comparable single-tenant restaurant assets routinely trade in the 5% to 6.5% range. 

River Brokers is pleased to present the fee-simple interest in a freestanding Shane's Rib Shack at $1,899,000, backed by a corporate guaranty from Shane's Rib Shack, LLC, with 2% annual rent bumps that push the yield to nearly 8% on the asking price by the end of the base term.

Shane's has operated at this location since 2008, and the current lease runs through January 2033 with two additional five-year options. The 4,284 SF building sits on +/- 1.29 acres in the Highland Crossing retail node with direct visibility from Highway 515, the four-lane parkway that carries roughly 19,800 vehicles per day past the site and funnels Atlanta-bound and mountain-bound traffic through Ellijay.

Offering Summary

• Asking Price: $1,899,000
• Cap Rate: 7.04% on current base rent
• Current Annualized Base Rent: $133,712 ($11,142.68 per month)
• Tenant / Guarantor: Shane's Rib Shack, LLC (corporate guaranty)
• Lease Expiration: January 2033
• Renewal Options: Two additional five-year options
• Rent Increases: 2% annually in the base term and option periods
• Lease Structure: Net lease (NN); tenant pays real estate taxes, insurance, utilities and most repair and maintenance
• Building Size: 4,284 SF | Site Area: +/- 1.29 acres | Year Built: 2005 | Zoning: C-2
• Price per SF: approximately $443

Investment Highlights

• Corporate guaranty from Shane's Rib Shack, LLC, a Georgia-based fast-casual barbecue brand founded in 2002 with locations across eight southeastern states.
• Contractual 2% annual increases lift base rent to approximately $150,582 by the final scheduled step, an implied 7.93% yield on the asking price before any percentage rent.
• Percentage rent of 5% above a $1.8 million annual gross-sales breakpoint offers upside that is not included in the advertised cap rate.
• Passive ownership: tenant handles taxes, insurance, utilities, HVAC, plumbing, electrical and interior and exterior maintenance. Landlord obligations are limited to roof and structure plus one-half of qualifying parking lot resurfacing. 2025 property tax bill of $6,176.29 is a tenant obligation.
• Established site with 18 years of continuous restaurant operation and a lease that recommenced in January 2023, demonstrating the tenant's long-term commitment to the location.
• Retail co-tenancy in the Highland Crossing node includes Walmart Supercenter, Lowe's, Chick-fil-A, Wendy's, Zaxby's, LongHorn Steakhouse, Ruby Tuesday, Papa John's and Mountain Cinemas.

Location and Market Highlights

Ellijay is the county seat of Gilmer County and the commercial hub of the North Georgia mountains, roughly 75 minutes north of Atlanta via I-575 and Highway 515. Gilmer County's population has grown more than 21% since 2010 to an estimated 34,300, and the Highway 515 corridor at Highland Crossing is now nearly built out, with recent hotel, restaurant and medical development and very few undeveloped parcels remaining.

Beyond the resident base, the market draws a steady stream of visitors for Georgia's Apple Capital orchards, the Georgia Apple Festival, the Ellijay, Cartecay and Coosawattee rivers, Carters Lake, the wineries along Georgia's Wine Highway, and a large second-home and vacation-cabin market that keeps restaurant traffic strong year-round rather than just on weekends.

• Median household income of approximately $67,344 within three miles and $61,622 within five miles.
• Approximately 2,016 households within three miles and 7,368 households within five miles, with more than 18,000 residents in the five-mile trade area.
• Projected five-year household growth of approximately 6.0% within three miles.
• Five-mile retail sales of approximately $198.4 million and consumer expenditures of approximately $502.7 million.
• Highway 515 (Zell Miller Mountain Parkway) is part of the National Highway System and the primary growth and tourism corridor for the North Georgia mountains.

Asking Price: $1,899,000

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