Wendy’s: Clarksville, TN
- Strong store sales reported to be well above the national average(1)
- Significant rent increases: Rare 15% rent increase in 2021 (potential 6.50% CAP) / Substantial 20% rent increases in both the 1st and 2nd renewal options periods (potentially allowing an investor to achieve an 8.22% and 9.88% CAP rate)(2)
- Excellent visibility: Four-way signalized hard-corner location with combined average daily traffic counts of 39,425
- Outparcel to a Food Lion anchored shopping center / Developments are underway to add Marshalls, Ross Dress For Less, Planet Fitness and Burkes Outlet, all which are projected to be open by Summer 2019
- Early extension of the first 5-year option period (exercised with 8 years still remaining on the initial lease term), showing commitment by the franchisee to this location
The subject property is a freestanding Wendy’s located at the signalized hard-corner of Madison Street (18,254 average vehicles per day) and Old State Route 76 (21,171 average vehicles per day), one of city’s main intersections. It is an outparcel to a Food Lion anchored shopping center and across from a Walmart Supercenter. Adjacent to the Food Lion is a former Super Kmart that is currently being redeveloped. The new retail development (estimated Summer 2019 grand opening) will be home to several new national retailers including Marshalls, Ross Dress For Less, Planet Fitness and Burkes Outlet. From 2000 to 2010, the population within a five-mile radius of the subject property has grown by over 21%. The subject property is leased on an absolute NNN basis with no landlord maintenance responsibilities.
The subject property has significant rent increases in the initial term and throughout each of the three, five-year renewal option periods. There is a rare 15% rent increase in 2021, potentially allowing an investor to achieve a 6.50% CAP rate. There is a 20.48% rent increase in the first renewal option period, a 20.23% rent increase in the second renewal option period, and a 15% rent increase in the third and final renewal option period. Should the Tenant exercise its last remaining option period, an investor could potentially achieve a 11.36% CAP rate.(2)
The lease is guaranteed by Wendy’s of Bowling Green, Inc., a well-established Wendy’s franchisee that has been in business since 1975. The franchisee operates approximately 56 locations across Tennessee, Kentucky, Indiana and Alabama. The franchisee has won several awards including the Franchise Times’ Restaurant Top 200 (2017), Hall of Fame Award (2009), Dave Near Legacy Award (2010), and back-to-back Diamond Awards (2009 & 2010), the first time a franchisee has won this award for two consecutive years. In 2011, Wendy’s of Bowling Green, Inc. was awarded the top franchisee in the world (Founder’s Award), beating out over 500 Wendy’s franchisees from across the globe.
(1) Buyer must conduct their own due diligence to verify that the subject property’s store sales are in fact well above the national average for a Wendy’s store. Marcus & Millichap and its affiliates have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of this information.
(2) Future CAP rate figures shown above are estimates only. There is no guarantee the Tenant will exercise any or all of its renewal option periods. Buyer must conduct their own due diligence to verify the accuracy of the percentage rent increases and future CAP rate figures shown above.
TN Broker of Record: Jody McKibben
License: 307629
