| Purchase Price | $2,500,000 |
|---|---|
| Annual Rental Income | $150,000 |
| Cap Rate | 6% |
| Lease Term | 10 Years |
| City | Bloomfield Hills MSA |
LongHorn Steakhouse Net Lease Investment Opportunity
Bloomfield Hills, MI MSA
10-Year Absolute Triple Net Lease | Corporate Guarantee | Fee Simple Ownership
This offering presents the opportunity to acquire a LongHorn Steakhouse restaurant located in the highly affluent Bloomfield Hills submarket of the Detroit, Michigan Metropolitan Statistical Area. Secured by a brand-new 10-year absolute triple net (NNN) lease, this investment offers stable, management-free income from one of the nation’s most established and recognized casual dining brands. With a prime suburban location, robust surrounding demographics, and a corporate-backed guarantee, this property is positioned for long-term investor success.
Location and Market Overview
Bloomfield Hills is one of the most affluent communities in the Detroit metro area, known for its premier residential neighborhoods, top-ranked schools, and strong retail base. As part of the larger Detroit MSA, which has a population exceeding 4.3 million, Bloomfield Hills benefits from a growing professional and executive class supported by Michigan’s diverse economy, including automotive, healthcare, finance, and technology sectors.
The property is positioned along a high-traffic corridor with daily traffic counts of more than 34,000 vehicles. Its placement provides excellent visibility, easy access, and proximity to dense residential communities and high-income households. The surrounding trade area is anchored by major national retailers including Target, Whole Foods, Costco, and Home Depot, along with numerous complementary dining and service establishments.
Demographics
The asset is supported by exceptionally strong demographics. Within a three-mile radius, the population exceeds 66,000 residents, with average household incomes surpassing $142,000. Expanding to five miles, the population grows to more than 168,000 residents with average household incomes of $136,000. These income levels rank among the highest in the Detroit metro, creating an affluent customer base well-suited for a premium casual dining concept such as LongHorn Steakhouse.
Property Details
The property consists of a freestanding LongHorn Steakhouse restaurant totaling approximately 6,500 square feet on a 1.8-acre parcel. Constructed to the brand’s latest prototype standards, the building features a contemporary design with a large dining area, bar seating, and updated kitchen facilities. The parcel provides ample parking, strong signage, and excellent ingress and egress from both directions of traffic.
Ownership is offered fee simple, granting the investor full control over the land and improvements for the duration of the investment.
Lease Structure and Tenant Guarantee
The property is backed by a new 10-year absolute triple net (NNN) lease. Under this lease, the tenant is responsible for all expenses including real estate taxes, insurance, and maintenance, offering a truly passive income stream. The lease also features scheduled 10% rental increases every five years, ensuring consistent income growth throughout the term.
LongHorn Steakhouse is a subsidiary of Darden Restaurants, Inc. (NYSE: DRI), a Fortune 500 company with an investment-grade credit rating. Darden’s expansive portfolio includes nationally recognized brands such as Olive Garden, Capital Grille, and Seasons 52, providing corporate-backed stability and long-term security for investors.
Surrounding Area and Trade Drivers
Bloomfield Hills benefits from its proximity to major employment hubs and premier retail centers. The property’s location near Birmingham, Troy, and downtown Bloomfield places it within one of the Detroit MSA’s wealthiest and most desirable corridors. The area is home to Fortune 500 company headquarters, major healthcare institutions, and top-tier shopping destinations such as Somerset Collection. This strong employment and retail environment generates steady traffic and supports long-term tenant success.
Investment Highlights
Buyer Profile and Financing
This property is ideal for 1031 exchange buyers and institutional investors seeking a management-free, stable investment with long-term income growth potential. The corporate-backed lease and high-income trade area provide excellent lender confidence and favorable financing opportunities.
Conclusion
This LongHorn Steakhouse in the Bloomfield Hills MSA offers a premier single-tenant net lease investment opportunity. Featuring a 10-year absolute NNN lease with an investment-grade corporate guarantee, predictable rental escalations, and a prime location in one of Detroit’s most affluent submarkets, the property provides secure, passive income with excellent long-term appreciation potential.
Qualified investors are encouraged to request the offering memorandum, lease abstract, and financial details.