The owners of Buddy’s Pizza — Detroit’s iconic square pizza slinger — have listed the chain’s original Conant Street building for sale for $1.5 million as the chain prepares for a major expansion. The property originally appeared on Loopnet in June seeking a sale-leaseback, an arrangement in which Buddy’s would continue to operate the Detroit restaurant as normal. Buddy’s would lease the property from the buyer and cover all the costs associated with the building and business.
Reached by Eater, Buddy’s confirmed that it has listed the property for sale and that business is still strong. “All Buddy’s locations are doing well and will remain open,” the company said in a statement. The popular Southeast Michigan pizza chain announced plans to expand beyond Michigan’s borders in January and received an undisclosed investment to “recapitalize” the business. Listing the original Detroit property is another step in the company’s efforts to raise money for that expansion.
“Buddy’s is exploring a sale of certain owned real estate properties in an effort to focus resources on managing existing stores and opening new Buddy’s Pizza locations,” the restaurant group said. “Our owners and leadership are excited to expand the brand throughout the Midwest and believe focusing our operations will allow us to better deliver memorable experiences to our guests and serve the communities in which we operate.”
Under the terms of the sale-leaseback agreement, Buddy’s would have a 20-year lease on the 3,571-square-foot property with a base rent of $86,250 a year and 10 percent rent increases every 5 years. Buddy’s does not have plans to list other properties at this time, according to a representative for the chain.
Buddy’s has been slowly growing its locations over the years and currently operates 12 restaurants in metro Detroit and Ann Arbor. A new outpost at the Detroit Zoo is poised to open very soon and in April there were rumors the company was in talks to open inside the former Angelina Italian Bistro space.
• 17125 Conant St. Listing [Loop Net]
• Buddy’s Pizza Sale-Leaseback Offering Memorandum [NNN Pro Group]
• Detroit-Style Pizza Icon Buddy’s Plans Major Expansion to the ‘Midwest and Beyond’ [ED]
• Buddy’s Pizza Is Contemplating a Downtown Detroit Location [ED]
• All Buddy’s Pizza Coverage [ED]