Wendy’s

Wendy’s – Absolute NNN Investment
Phoenix MSA | High-Growth Arizona Market | Passive Income | Prime Drive‑Thru QSR Asset

This offering represents a premier opportunity to acquire a single-tenant Wendy’s property in the Phoenix Metropolitan Statistical Area (MSA), under a long-term absolute triple net (NNN) lease structure. This drive-thru-focused asset delivers zero landlord responsibilities, scheduled rent escalations, and predictable, passive income—backed by a well-known quick-service restaurant (QSR) brand with a trusted national footprint. Located on a high-traffic suburban corridor within one of the fastest-growing real estate markets in the country, this Wendy’s property offers stability, scalability, and investment quality demanded by 1031 exchange buyers, private and institutional investors.

Tenant Overview – Wendy’s | National QSR Leader

Wendy’s ranks as America’s third-largest burger chain, operating over 6,800 locations worldwide. The brand is synonymous with value, quality, and convenience—featuring signature square patties, fresh-cut fries, and a menu that appeals to a broad demographic. Wendy’s drive-thru-centric model and investment in digital tools like mobile ordering and delivery partnerships contribute to consistent unit-level sales. In Phoenix’s suburban corridors, Wendy’s continues to perform strongly thanks to its efficiency and alignment with consumer demand for convenience and affordability.

The property is leased on an absolute NNN basis, meaning the tenant is responsible for all property-related expenses—including real estate taxes, insurance, repairs, and maintenance. The long-term lease also features scheduled rent escalations—typically every five years—creating built-in income growth and protecting against inflation.

Lease Structure & Cash Flow Profile

• Lease Type: Absolute NNN—tenant covers all expenses
• Term: 15–20-year initial lease period
• Renewals: Multiple 5-year options included
• Escalations: Fixed increases in rent every 5 years (typically 6%–10%)
• Investor Benefits: Pure passive income, mailbox-style returns, and inflation protection without any landlord duties

This structure ensures cost predictability and consistent cash flow—ideal for investors focused on income-generating assets in strong growth markets.

Market Overview – Phoenix MSA | Southwest Powerhouse

The Phoenix MSA, with over 5 million residents, ranks among the fastest-growing metros in the U.S. Arizona’s pro-business climate, along with its thriving tech, healthcare, manufacturing, and aerospace sectors—anchored by companies like Intel, TSMC, Banner Health, Honeywell, and American Airlines—fuel sustained population and income growth.

Phoenix also attracts retirees and young professionals who seek affordability, sunshine, and a high quality of life. Its no state tax on Social Security and retirement income improves income retention and investor appeal. Ongoing infrastructure projects and commercial development further reinforce long-term demand for quality retail assets like Wendy’s.

Site Analysis – Prime Drive‑Thru Location

This Wendy’s features a drive-thru layout optimized for speed and efficiency, with dual-lane ingress/egress and eye-catching signage. The site is positioned along a primary arterial roadway with an average daily traffic count exceeding 30,000 vehicles, offering exceptional visibility and consistent customer flow.

Surrounded by co-tenants such as grocery stores, big-box retailers, banks, pharmacies, and other QSR brands, this location benefits from strong traffic synergy. The drive-thru design suits suburban shoppers, commuters, and families seeking quick-service dining options—particularly given its ease of access and minimal wait times.

Trade‑Area Demographics

Within a 5-mile radius, the following statistics apply:

• Population: Approximately 250,000 residents
• Median Household Income: $80,000–$110,000, with many submarkets trending upward
• Age Demographics: A mix of families, millennials, Gen Z professionals, and retirees, thanks to Phoenix’s balanced population profile

Phoenix’s long-term growth trajectory is supported by migration from higher-cost states, job creation in several key sectors, and robust housing development—making it a top-performing MSA for retail real estate.

Income Growth & Inflation Protection

Scheduled rent escalations every five years (typically 6%–10%) provide essential protection against inflation while increasing the net operating income (NOI) over time. The absolute NNN structure also transfers expense risk completely to the tenant, creating a clean investment with no capital outlays or management overhead required from the landlord.

Why Wendy’s in Phoenix MSA?

• Massive and growing market: Phoenix is one of the top five U.S. metros by both population and growth
• Strong economic mix: Technology, healthcare, manufacturing, aerospace, and logistics create diverse employment
• Consumer tailwinds: Affordable cost of living coupled with favorable tax structures draws new residents
• Suburban QSR demand: Drive-thru models like Wendy’s thrive amid dense rooftops and commuter traffic
• National co-tenancy: Surrounding retail strengthens unit performance and tenant stability
• Inflation-resistant architecture: Escalations ensure rising cash flow
• Minimal landlord responsibility: The absolute NNN lease eliminates all property risk
• Ideal for tax-advantaged investors: Suits 1031 exchange buyers, institutions, and passive-income seekers
• Competitive yield profile: Historically offers mid‑5% to low‑6% cap rates in Phoenix, underlining investor appetite

Key Investment Highlights

• Single-tenant Wendy’s with absolute NNN lease
• Fully passive income—no landlord expenses
• Scheduled rent escalations enhance yields
• Prime suburban drive‑thru site on 30,000+ ADT roadway
• Located in Phoenix MSA—a booming Arizona metro
• Co-tenants include major grocery, big box, banking, and QSR chains
• Trade area features above-average household incomes
• Resilient QSR brand with digital ordering and delivery capabilities
• Strong economic support from employment sectors and migration trends
• Tax-efficient state environment and infrastructure growth

Conclusion

This Wendy’s offering in the Phoenix MSA brings together best-in-class fundamentals: long-term passive income, no landlord responsibilities, a national QSR tenant, and a drive-thru asset in one of America’s fastest-growing markets. The absolute NNN structure, built-in rent escalations, and high-traffic location ensure enduring stability and institutional-grade investment quality.

Whether executing a 1031 exchange, building a passive-income portfolio, or targeting long-term yield, this Wendy’s aligns with investor objectives seeking reliability, scalability, and ease of ownership. Class-A QSR assets in prime Phoenix corridors are rare—this opportunity stands out in today’s active marketplace.

For full offering materials, lease abstracts, demographic reports, or underwriting data, please contact us today. High-credit net lease assets in Phoenix continue to attract strong interest and move quickly.