Wendy's
24 Years Remaining | Absolute NNN | Minutes From University
Marketing description
Matthews™ is pleased to present a compelling net lease investment opportunity at 3201 Peoples Street, Johnson City, Tennessee. This strategically located Wendy's restaurant is secured by a 24+ year Absolute Triple-Net (NNN) lease extending through December 31, 2050, with four additional 5-year renewal options. The property features structured rental increases of 7.5% every five years throughout the initial term and all renewal periods, providing consistent income growth and inflation protection.
The investment benefits from a recent assignment to an institutional-scale franchisee operating over 140 Wendy's units with more than $300 million in system-wide revenue, representing a significant upgrade in tenant credit and operational scale. Positioned in a high-traffic retail corridor just off I-26 / U.S. Route 23, the site benefits from over 184,000 combined vehicles per day along surrounding roadways and ranks in the top 13% nationally for Wendy's foot traffic.
Located just 2 miles from The Mall at Johnson City, 4 miles from East Tennessee State University, and 3.5 miles from Johnson City Medical Center, the property is surrounded by strong retail, education, and healthcare drivers. The area demographics are robust, with average household income exceeding $104,801 within a 1-mile radius. Built in 2010 and renovated in 2020, the property offers modern improvements and limited near-term capital expenditure requirements.
Investment highlights
- Long-Term Absolute NNN Lease – The property is secured by an Absolute Triple-Net (NNN) lease, providing passive ownership.
- 24+ Years of Remaining Term – The lease extends through December 31, 2050, delivering durable, long-term income stability.
- Institutional Scale Franchisee – Recently assigned to a 140+ unit Wendy's operator with over $300M in system-wide revenue, representing a significant upgrade in tenant credit and operational scale.
- High Foot Traffic - Ranks in the top 13% in terms of foot traffic when compared to all Wendy's nationally, according to Alpha Maps.
- Structured Rental Increases – Base rent increases 7.5% every five years throughout the initial term and across all four 5-year renewal options, ensuring consistent income growth and inflation protection.
- Attractive In-Place Yield with Upside – Offered at a 5.25% cap rate on $139,750 NOI, the investment benefits from contractual rent escalations that drive yield above 7% during the initial term.
- High-Traffic Retail Corridor – Strategically positioned just off I-26 / U.S. Route 23, the site benefits from more than 184,000 combined vehicles per day along surrounding roadways.
- Prime Retail Location – Located 2 miles from The Mall at Johnson City, 4 miles from East Tennessee State University, and 3.5 miles from Johnson City Medical Center, the property is surrounded by strong retail, education, and healthcare drivers.
- Strong Area Demographics – Average household income exceeds $104,801 within a 1-mile radius, supported by steady projected population growth.
- Experienced Regional Operator – Operated by Tri-Cities Restaurant Group, LLC, an established franchisee with approximately 17 Wendy's locations, serving as lease guarantor and providing seasoned operational expertise.
- Modern Construction & Recent Renovation – Originally built in 2010 and renovated in 2020, the property offers modern improvements and limited near-term capital expenditure requirements.
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