Located at 400 Merchants Drive, Knoxville, Tennessee, the subject property is a newly constructed Wendy’s property under an absolute net lease. It includes a 2,353 sq.ft. restaurant with a drive-up window and ample parking. The property sits on a huge .55 acre parcel of land and is strategically located at the exit of Interstate-75 on Merchants Drive. This Wendy’s property sees a traffic count of more than 105,805 vehicles per day and benefits from approximately 153,523 residences, having an average annual household income of more than $50,818. The property is put on a 20-year lease, including a 7.5 percent hike every five years, with four five – year option periods. A 35 unit holding company with restaurants in Tennessee backs the lease. JAE Restaurant Group has over 210 restaurants in Florida, Texas, and Tennessee. Several national and regional retailers are also present in the immediate area, including BB&T, Exxon, Subway, Outback Steakhouse, McDonald’s, Burger King, IHOP, Taco Bell, and Red Lobster.
Founded by Dave Thomas on Nov 15, 1969, in Columbus, Ohio, Wendy’s is an international fast-food restaurant chain. Till January 2019, the company was operational at 6,711 locations, out of which the company owned 353 restaurants. A total of 6,358 restaurants are franchised, and North America has 77 percent of them. In 2016, second only to Burger King and McDonald’s, Wendy’s was the world’s third-largest hamburger fast-food chain.
This investment property is suitable for a 1031 exchange.
Property Details –